I am a new investor I am on my second deal all self funded.
I am looking into bringing investors into my future deals. How does one go about bringing investors in?
On another point how do you pay them? Everyone expects great returns. So, how does one pay them? Do you start out with monthly payments or, do you have them come in to cover the cost and pay them back with the rent?
I am looking for investors for future deals as well.
I would like to make some connections and talk with investors to see what they are looking for in an investor.
Thank you to all for your help.
I too am curious. I get the idea or the theory of getting investors... but I like practical applications and examples too.
So theoretically, you can present your investment portfolio. If you don't have one, or it is weak, present a mock-deal, and how you would approach the investment. What are the goals, plans for the property, strategy, returns, NOI, cash-on-cash return, ROI, etc.
I think you need to warm-up the leads to investing. Not like, "Today I will present to you why I need $50,000 from you." But more like, "I have this investment opportunity, and I'd like you to join me. What are you comfortable with?"
In terms of repaying them, you should have terms just like you would anywhere else. Are you profit sharing? Are you paying them lump sum amount? Are they expecting certain performance or just a set amount of money? Are you giving up ownership of the property?
You can pay them back monthly like a bank loan (with principal and interest), or you can make installment payments on a set amount, or you can cash-out equity with: a refinance, a second lien (HELOC), or when you sell the property.
Again, I'm in theory-land still.
Same questions. Thank you for asking.
First you check the SEC rules about marketing investments! I am not an attorney or lawyer. I think there are rules about advertising returns and such when marketing to people you don't know.
AFAIK, you can only market investments to people you already know -- friends and family. I think unless they are accredited investors. Again, I'm not an expert. I know a lot of people have started with coworkers. There was a police officer on an early podcast, and I know some firefighters that have gone in on deals together. All of your ideas about payments can work, too.
New rules below:
I'm sure there are others here that can advise you, so I'm commenting to get you some traction on your post, too!
@David A Lisowski . It sounds like a very good theory. Thank you for the information.
@Dan Maciejewski thank you for that link. It's very informative
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