how do you find rehabbers?

I am in Phoenix to fund rehabbers and flippers. I have spoken to a few clients but I need a larger portfolio of clients to make sure my money is working most of the time.

What are some of the good ways to market my funding services? I am aware of the following:
1. REI Association
2. Craigslist
3. Brokers and agents

Any other ideas?

Edited: 06/26/2010 at 10:12AM

Nick J.

SFR Investor · Scottsdale, Arizona

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Icon_minipost Oct 23 '09, 03:57 AM

Title companies.

See who is sponsoring the AZREI and connect with them and ask that they refer you some clients that are closing deals with them. I think you'll find they'll be more than willing to considering they know the client will close more deals with them.

You'll probably come across names like Mary, Janet, Celeste, Dennis and a Jill.

What are going to be your terms? I know most funding sources(except transactional) are already or becoming more and more difficult to squeeze for money without having to pay some ungodly amount upfront.

Edited: 06/26/2010 at 10:12AM by Nick J.

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Oct 23 '09, 04:01 AM

Thanks for the tip, Nick. I had not thought about title companies - good idea.

I am actually not "lending" money in the traditional sense. Instead, I am partnering with the rehabber with a profit-sharing arrangement. I put in 95% of the total cost and the rehabber only has to put in 5%. (Including the cost of the rehab.)

Edited: 06/26/2010 at 10:12AM

Nick J.

SFR Investor · Scottsdale, Arizona

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Icon_minipost Oct 23 '09, 04:03 AM

Originally posted by Vikram C.

I put in 95% of the total cost and the rehabber only has to put in 5%. (Including the cost of the rehab.)

Really, is the profit cut the same I assume?

I'd be surprised if you don't get bombarded if you only required 5%

Edited: 06/26/2010 at 10:12AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Oct 23 '09, 04:07 AM

I do expect to be bombarded. But I first need to figure out my marketing so that people know that I even exist. That's why I was trying to get ideas about how to find rehabbers. I think your title company suggestion is a great one to add to my list.

Edited: 06/26/2010 at 10:12AM

Nick J.

SFR Investor · Scottsdale, Arizona

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Icon_minipost Oct 23 '09, 04:09 AM

Originally posted by motiv8td

Really, is the profit cut the same I assume?

you forgot this question

Edited: 06/26/2010 at 10:12AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Oct 23 '09, 04:17 AM

The same as what? If you are talking about the profit division, yes, it is about the same but it has an incentive structure to encourage the rehabber to sell it quickly. For an average rehabber doing an average job, it is an equal split. But I am eager to find rehabbers who are good at quickly selling the property.

Edited: 06/26/2010 at 10:13AM

Jose R.

Real Estate Investor · Kahuku, Hawaii

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Icon_minipost Oct 23 '09, 04:32 AM

Put an ad in the paper under real estate loans section.

Edited: 06/26/2010 at 10:13AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

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Icon_minipost Oct 23 '09, 05:52 AM

The Recorder of Deeds (some call it Register of Deeds) should have a way to search for "sheriff's deeds" (since AZ is trustee state, they may call the deeds that are produced from foreclosure something else); rehabbers will be among those buyers.

The MLS has a way to search for "settled" transactions; find settled transactions that were CASH, not financed - many of these will be rehabbers.

Get friendly with the local REO brokers, since you will be offering a product/service that will benefit them in moving their inventory. Most of the REOs that I see need rehab, so there will be rehabbers among those REO buyers.

Edited: 06/26/2010 at 10:13AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Oct 23 '09, 04:08 PM

Thanks, Steve and Jose. Good ideas. I will add them to my list of marketing strategies.

Edited: 06/26/2010 at 10:13AM

Brian Haskins

Real Estate Coach · St. Louis, Missouri

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Icon_minipost Oct 25 '09, 12:28 AM

Are you looking to only fund buyers in the Phoenix area or all over?

Brian Hakins

Edited: 06/26/2010 at 10:14AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Icon_minipost Oct 25 '09, 12:35 AM

Only AZ and Vegas. And perhaps SoCal.

Edited: 06/26/2010 at 10:14AM

Derek W

Real Estate Investor · Canyon Lake, California

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Icon_minipost Oct 26 '09, 01:32 PM

And don't forget well placed bandit signs. That is a nich way we investors communicate. My reticuler activater is keen on picking out those ads.

Edited: 06/26/2010 at 10:15AM

Travis Gosnell

Real Estate Investor · Carlsbad, California

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Icon_minipost Nov 25 '09, 01:42 AM

If you have an assistant - have them call all of the construction companies and residential developers/handymen and set up maybe a meeting to go over your program. Just don't go to a bunch of different meetings - probably time consuming - have one dinner type meeting or something. But yeah - I wouldn't send mail or pay for advertising this - just pick up the phone or have someone dial for you.

Edited: 06/26/2010 at 10:38AM