how can i meet investors

Question

how can i meet people who would invest with me as a partner? I feel like people will not trust me because of my age and I also do not have a lot of money. and also what would i say to people who i would want to invest with me or have them lend me money.

Karen Margrave · Answer

@Nathan Gesner is correct. Relationships are the most important thing in the business of investing and real estate. The first thing you need to do is start learning the business, and how it works, not getting ahead of yourself. You have to understand that people investing money are doing it for the return, and it has to make sense. If you don't have money, you have to bring something else to the table, so what is it? It can be experience, the ability to be a project manager, find deals, something. The scales have to balance out. If you want someone to invest in a project, you need to have a project that makes sense, be able to show investors why it makes sense, and how you are capable of putting it together.

If you have no money, no experience, etc., then consider getting a job working for someone that is a developer, contractor, realtor, lender, something in the realm of real estate investing and start learning.

Mike Klarman · Answer

Hi all.  Happy New Year.

Jace, what does any investor or any partner look for in a partnership with another?  Value.  You said you're young so you can't bring experience, you do not have much money so you can't bring capital.  There's one piece of the puzzle left.  Find the great deals.  Be the deal finder.  Learn how to handicap houses in various markets.  Have your finger on the pulse of the housing market, go door to door.  You see a dilapidated house in a decent area, knock on the door, into yourself and have a business card made up that you can give them and tell them if they ever want to sell you'll pick up their closing costs.

I have a network up and running in Philly right now.  I have two property finders and I have a mid level contracting company that can juggle 20 projects at once.  One of the agents found a great deal.  150k purchase, 105k rehab, appraisal came back 438k.  Let's take 10% off of that and say 400k.  This investor is going to make 145k gross in about 2.5 months.  This contractor has all the supplies and does like three different model houses.  So he demos, rough in and then mud in like two weeks.  Our problem is finding deals.  Most MLS deals do not have the spread between purchase and ARV.

Point is, anyone that can find a property like the one above will have a line of partners to choose from.  Shoot, I was thinking of hijacking the deal but it's this investor's first deal with me and I want him to win big time.

Find a way to add value Jace.  How many Contractors are there in Long Island?  I know "guys" from Long Island from my Atlantic City days.  Call contractors.  Ask questions.  Ask them how they work their payment schedule.  Ask them how big they are.  Ask them what a full gut costs per square foot.  Ask them who does their mastery work: Their electrical, plumbing, carpentry.

Some people will talk to you and some will have no time for you, but with some persistence you'll get a free education and hopefully a nice contracting connection at the end of it.  If you're a guy who has a great house and a reliable contractor then that's as much value as the money and the credit.

David Ramirez · Answer

Hey Jace,

When I started out 3 years ago I was 22 years old and I was in the same situation as you are in now. I decided that I was going to learn and absorb as much knowledge as I could to provide value to every investor or real estate professional that I would meet. Every time I met someone I asked so many questions because people love when someone is interested in their story.

Don't be afraid when asking for money. There is money everywhen and there are tons of people willing to lend that money and get a return. Before asking for money make sure your numbers are right and that you are actually providing a good deal to a money partner.

Feel free to reach out with any questions.

Regards,

David

Scott E. · Answer

1. How can you meet people who would invest with you - Talk to friends, family, acquaintances, real estate agents, contractors, hard money lenders, big banks, and credit unions. Tell them your investing goals. Get a feel for who would have interest in investing with you. And those who would not invest with you, understand why.

2. People not trusting you because of your age - Not sure how old you are. But this is a real issue when you are younger. When I got started I was 25, but looked like I was 18. I compensated by knowing my numbers, being articulate and well-read, wearing a suit and tie every day, being an active listener, and having a very strong work ethic.

3. What to say to people who you would want to invest with - Don't worry about this yet. If you are asking this question, it means you have a LOT to learn before you start investing other peoples money. Spend the next 6 months here on the forums, reading the blogs, reading books, listening to podcasts, etc. Then start building a network of agents and contractors. Then it's time to start looking for money.

Nathan Gesner · Answer

Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

It all comes down to relationships. If you build relationships and demonstrate the necessary skills/hustle, then someone will see that and want to partner with you. If you have a lot of big dreams but don't take action, they'll stay away.

how can i meet investors

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