If you could ask one thing about how to raise private funds for real estate investing what would it be?

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If you could ask one thing about how to raise private funds for real estate investing what would it be?

20 posts by 14 users

Michel Lautensack

Real Estate Coach · Berwyn, Pennsylvania

9 posts
-411 Influence
5 Awards

Icon_minipost Aug 11 '08, 04:49 AM

Hi!

I am about to write some new articles on how to raise private funds for real estate investing because in the new post-bubble world normal mortgage and hard money lending is drying up and many investors are being forced to use alternative methods - one of those methods, and maybe the best, is private lending.

Please tell me what you would like to know so I can craft these articles to address your issues

Thanks
Mike

Edited: 06/26/2010 at 05:39AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Aug 11 '08, 06:39 AM

How do you find people willing to invest without running afoul of state and federal securities regulations.

Edited: 06/26/2010 at 05:39AM

Jon Holdman, Flying Phoenix LLC

Dave W

Real Estate Investor · Virginia Beach, Virginia

35 posts
24 Influence
1 Award

Icon_minipost Aug 11 '08, 06:45 AM

How are the deals structured? what are typical interest rates?

Edited: 06/26/2010 at 05:39AM

Brice C.

Real Estate Investor · Oroville, California

108 posts
-122 Influence
1 Award

Icon_minipost Sep 08 '08, 11:44 PM

Thread
If you could ask one thing about how to raise private funds for real estate
investing what would it be?

Your reply was
How do you find people willing to invest without running afoul of
state and federal securities regulations.

Are you currently working with private Lenders?
There is a site that handles all the paperwork set up as well as servicing.
You can convert those that you have currently to be serviced.
If your interested,
I'll see if I can find it again.

Edited: 06/26/2010 at 05:52AM

Aaron Einfrank

Real Estate Investor · tucson, Alabama

14 posts
1 Award

Icon_minipost Sep 09 '08, 12:46 AM

I would agree with the post above about deal structure and rate of return. Those are probably the two questions I come across most often. What are some ways that I, as a new investor, can offer to investors to make them more comfortable with partnering?

Edited: 06/26/2010 at 05:52AM

Tony Severino

Real Estate Coach · Highland, Indiana

153 posts
1645 Influence
7 Awards

Icon_minipost Jun 01 '09, 08:16 AM

Before you get to much into ROI etc, I would ask what is the SEC requirements for my state.

Recently I know an investor who is using Private money to funds 1st mortgages. The State SEC issued subpoena's for his bank records, all the mortgage docs etc. This man is super conservative, I trust him with my wallet. I think he missed a filing deadline by 4 days last I heard.

I know in one of the three states I deal in you have to file paperwork with the SEC before you seek funds.

Edited: 06/26/2010 at 08:25AM by Tony Severino

Daniel Garcia

Residential Real Estate Broker · Van Nuys, California

44 posts
187 Influence

Icon_minipost Jun 13 '09, 04:34 PM

I can only speak for California. Here you need to be even more careful if you hold a Real Estate license. It is best to hire an attorney when gathering private money so they can draw up documentation for you.

Edited: 06/26/2010 at 08:35AM

Brian Wall

Real Estate Investor · Santa Fe Springs, California

166 posts
1368 Influence
5 Awards

Icon_minipost Aug 15 '09, 05:07 AM

I would also like to know the SEC requirements for my state.

I just want to be able to advertise to find potential investors, to lend me money (not HML), on real estate.

I don't necessarily want to broker loans.

Brian

Edited: 06/26/2010 at 09:22AM

Justin Bird

Real Estate Investor · Gardner, Kansas

37 posts
398 Influence
3 Awards

Icon_minipost Aug 15 '09, 07:14 AM

Very good info in the previous posts, it wakes the hamster up he starts the wheel a turnin' again. :)
My question would be... When you cold call a private lender what would be the first thing you would say to them to keep them on the phone and not have them slam it down on you?

Feel free to answer this now if you have found success with a particular "opening line". It would be greatly appreciated. I've been struggling with this one for a while.

Edited: 06/26/2010 at 09:22AM

Lynn Simonsen

Developer · Santa Maria, California

10 posts
85 Influence
1 Award

Icon_minipost Aug 24 '09, 07:52 AM

Most lenders focus on the ltv percentage more than the rate and terms. They want a very conservative approach to this value, so address it upfront or you will be wasting time.

Edited: 06/26/2010 at 09:28AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
14 Awards

Icon_minipost Aug 24 '09, 12:01 PM

Or maybe the OP is having a hard time getting funding because of the number of repos ...

Edited: 06/26/2010 at 09:28AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Jan 11 '10, 04:53 AM

Folks,
please be very cautious of taking advice from a poster on BP with such a huge negative influence level and from somebody who has such a limited amount of contributing activity to the site over a long period of time.

Add to that the due diligence that has uncovered the original posters inability to make wise investment decisions, you should be very cautious as to what advice you take from such a person.

Anybody claiming to be a RE coach who has several filed lawsuits against them as well as foreclosures should be avoided.

Edited: 06/26/2010 at 11:11AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com

David Breitzmann

· San Francisco, California

176 posts
1104 Influence
2 Awards

Icon_minipost Jan 11 '10, 05:55 AM

Michel,

[Disclosure: I feel that many guru programs and services can be offered at much lower costs and experts are preying on naive "students" who are desperate for success]

I have to be consistent in pointing out a counterintuitive aspect of your proposal.

Just as bank modifications to "struggling" homeowners which come with $500 processing fees make no sense so does your website "ask."

[q]Our Consulting and Mentoring Program is offered to you at $250 for the initial hour and $100 per hour thereafter and payable at the time of the consultation.[/q]

If the focus is helping investors raise capital wouldn't a few hours spent with you divest them of needed funds?

Also, the fact that your initial hour is quoted at more than double the subsequent cost is a flag that many clients are not renewing your services due to lack of perceived value. It reads as if you are trying to carve as much profit upfront as possible versus form long lasting relationships.

Edited: 06/26/2010 at 11:11AM

Bill Gulley

Real Estate Investor · Springfield, Missouri

4889 posts
43266 Influence
12 Awards

Icon_minipost Jan 11 '10, 07:41 AM

Hi, you all knew I'd jump in here...lol
Nope, I'm waiting for Jon's first question to be answered!

But I have a question, how can you have 9 posts, a negitive 615 points and three awards? How does that work?

As to my question concerning private lenders, I'm still trying to think of one.....I'm sure I will...

Edited: 06/26/2010 at 11:11AM by Bill Gulley

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
14 Awards

Icon_minipost Jan 11 '10, 08:43 AM

Q: What do you do when you realize that you cannot make the payments on loans you have with private investors?

You're not gonna answer with "let it go to foreclosure", now, or are you?

Edited: 06/26/2010 at 11:11AM

Brian Wall

Real Estate Investor · Santa Fe Springs, California

166 posts
1368 Influence
5 Awards

Icon_minipost Jan 11 '10, 09:19 AM

Jon, regarding your question (and mine as well) on keeping legal with the SEC, I found this companies website. I have no affiliation, nor have I used them.

It looks reasonable, at a cost of $2500.

http://www.regdresources.com/

I have seen a similar service being offered for $10-15k by lawyers being offered by big name gurus.

Jon, and others,would you kindly take a look and let me know what you think.

Brian

Edited: 06/26/2010 at 11:11AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Jan 11 '10, 12:24 PM

Our Consulting and Mentoring Program is offered to you at $250 for the initial hour and $100 per hour thereafter and payable at the time of the consultation

What would the consultation be on, how to lose all your moeny and credit via foreclosure?

But I have a question, how can you have 9 posts, a negitive 615 points and three awards? How does that work?

Bill, there is a post here describing the point value system here on BP for influence. Also, if you are a forum violator, it is easy to rack up a negative influence level, especially when your contributions to the site are limited to only 9 posts, of which, sevearl were edited by moderators for forum violations.
It is quite clear this character has no place on BP Nation and should be banned. These types of people have no idea what they are doing and prey on the newbies to steal their money.

Edited: 06/26/2010 at 11:11AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com

Bill Gulley

Real Estate Investor · Springfield, Missouri

4889 posts
43266 Influence
12 Awards

Icon_minipost Jan 11 '10, 11:39 PM

Looks like what we need is an article/blog on how to structure an entity to act as a conduit for financing acquisitions and seeking investors without getting into SEC requirements! If you all will give me some time to put that together in a desriptive format, I'll get to that. Have other irons in the fire right now....

Will, just let them have it! Seems I get in trouble bringing in the ax, but when something is not correct, those who know better have an obligation to any RE community to point it out as new investors rely on what they find and input such as yours can save someone alot of time and money. Good Job! Bill

Edited: 06/26/2010 at 11:11AM by Bill Gulley

Bill Gulley

Real Estate Investor · Springfield, Missouri

4889 posts
43266 Influence
12 Awards

Icon_minipost Jan 12 '10, 12:06 AM

Hi, just returned from the site referrenced by the original poster. Another blog seemed to provide infromation on another topic that was, shall I say, poor advice....Will, you were right, one to keep an eye out for! Bill

Edited: 06/26/2010 at 11:11AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Jan 12 '10, 12:30 AM

Bill,

I don't get the initial credit as another BP' members reasearch uncovered this guy as somebody people should stay far away from. Thanks for the compliments though, I appreciate them. :D

Edited: 06/26/2010 at 11:11AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com