What Investor's Look for

General Real Estate Investing
1

I’m new to this board but have a proven track record. I’ve done 2 auction flips in CA. It’s not rocket science out here. I need more cash to take my business to the next level.

There is a guy in my county who’s done over 250 deals this year alone, he did over 400 last year. The sky is the limit out here and as long as you know how to perform due diligence it’s hard to lose.

What are investors looking for? What would I need to provide in order for them to take a look at a deal?

Thanks

2

Hi,

A fellow Newporter, I used to live up behind Corona Del Mar in Spy Glass Hill.

I think investing in real estate is like most investments where you have education, experience, track record, and longevity which seperate you from the rest.

I have my own idea’s on what those qualities mean to me personally. Education does not necessarily have to be formal but one has to have enough education to discern and evaluate what someone is looking for!
Experience, track record and longevity tell the tale on seperating success from failure, whether you can do this and make a long term profit!

Someone somewhere may feel doing 2 houses successfully is enough to invest with? But I don’t really know as you really have not said much about you? Do you have other real estate experience? Are you a successful agent or broker? What is your career, your training or professional occupation?

Do you have a whole team of professionals you work with? Realtor, mortgage lender? Hard Money? Inspector? Contractors? Etc.

The statement you made “It’s not rocket science” scares me as I am not sure I believe you understand how much financial trouble you can get into becoming to big to quick or not paying attention to details.

California, Arizona, Nevada and Florida potentially have some good deals, but these area’s of the country have serious unemployment, financial and extremely soft markets, in fact I believe we probable have not hit bottom in these states.

Now would you rather invest with someone who has done 2 homes or 20 homes? Would you rather invest with someone with 2 months experience or 2 years experience? Would success over 5, 10 or 20 years be more desireable?

Good luck,

              GR
3

I’ve used numerous private investors to fund deals over the past 19 years. Here are the things my investors looked for and when I provided them, they funded deals:

  1. Best Case Senario on the subject property.
  2. Paper work to be used.
  3. Security you are giving.
  4. Back up plan in the even of a default!
  5. Offer a good rate of return that is realistic.
  6. Make the investment available to IRA Account Owners.

You must have a realistic plan for their money you are using. Also, give them an option in the event of default…they are thinking this and it is better for you to have a back up plan before they ask you!! Have good and appropriate paperwork. Good return is important but don’t make it too good as they will think there is a problem…find a competitive rate of return to attract investors but don’t overpay as that will have them doubt the deal. There are more investors with IRAs than with discretionary bank accounts. It is a multi trillion dollar resource that I’ve used for years. An investor will much more likely write a check from their IRA than from their personal checking account.

Hope this helps.

Rob in Atlanta
Real Estate Investment Coach