What Do I Need to Have Ready Before I Begin Searching for Investors?

Question

A business partner and I are working together to start investing in distressed properties with the goal of eventually flipping and renting apartments. We have decent credit, plenty of ambition, and really don't like our day jobs, but we don't have the cash to get us started. Before I start going around asking for money, what would you recommend I have prepared to show potential investors that will prove to them we are a serious investment? Then, once I have that information/proposal/etc. prepared, how should I approach investors? Thank you for your time, Paul

Jonathan Greene · Answer

You said "Before I start going around asking for money" so it has to do with a presentation for money which means you will be asking for money, but I understand what you are saying. What investors want is a track record. It doesn't matter how you present something if you don't have verified experience to bank on. Would you lend money to someone with no track record in a business?

If you do have prior history from this statement - "because of our past experiences and are comfortable examining properties that need help" - then that is what they will want data on.

Account Closed · Answer

This is the best answer. Books can only take you so far. Once you start networking with agents, lenders, and investors, you will learn WAY more and start to build a network surrounding your goals. You may even come across someone that will help you out. Save up for your first deal, complete it successfully, and present that experience to an investor. Best of luck!

Tim Casey · Answer

Starting your journey in real estate investing is always an exciting time. From my experience, I recommend preparing a solid foundation to show potential investors you're serious. Focus on building a business model that outlines your value proposition, target market, revenue, cost structure, and key activities/timeline. Additionally, prepare financial projections, including cash flow forecasts and ROI calculations. Highlight the risks and your strategies for mitigating them. This preparation demonstrates foresight and professionalism, making your proposal more compelling.

That said, do NOT allow yourself to get stuck in preparation mode. Take a single day with your business partner to hash out this plan (hint: it should and will be messy) and then get started aggressively networking and "workshopping" the plan. Network, share, learn, adapt, repeat.

This opens you up to advance on your plan or pivot into an alternate path. Good luck!

Bob S. · Answer

STOP READING BOOKS, get to your local RE meet up,

Bob S. · Answer

So, no experience, no money, no props but you want to ask " me " for money, HMM, would you give you money?

Find a deal, flip the contract, learn, save, then go on your own

Sorry I am always direct,

Good luck

Jonathan Greene · Answer

Unfortunately, nothing about this sounds good. Take a step back and look at what you are saying and asking. You have no experience, you don't like your day jobs so want a way out, you don't have any money to start, but you want someone to invest in your business? Why would someone give you any money and more so, why would you take someone you know's money when you have no experience, no game plan, and a misplaced idea to buy distressed which is the hardest thing to buy and salvage for new investors?

Paul Derks · Answer

I only mention we hate our day jobs because we have plenty of ambition to see this through, not because we want an “out”. We have chosen distressed properties because of our past experiences and are comfortable examining properties that need help.

What Do I Need to Have Ready Before I Begin Searching for Investors?

What Do I Need to Have Ready Before I Begin Searching for Investors?

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