Best way to connect with investors?

Question

I am a broker and PM in Indiana and have been licensed and working in RE full time since 2004. I also hold an MBA. There is a home I have my eye on. It is listed for $225,000 and all the mechanicals (appliances and furnace,etc) are in decent shape. I have $20,000 to invest and am looking for a partner to buy the rest. I would manage it, since it is in an area that is hot and in which I have 3 other homes I manage, so I drive through at least once a week. I am set up to run credit reports through National Tenant Network. Where is the best place to post looking for a partner?

Osei K Boakye · Answer

Another way to connect with investors will be through your local REI groups.

Josie Raimondi · Answer

Just have one who is actively looking at this time, but he’s leaning towards an apartment complex.

Matthew Irish-Jones · Answer

@Josie Raimondi if you are a PM your book of business is the best place to start.  Don’t you have multiple clients that are investors?

Josie Raimondi · Answer

The ROI for an investor would be about 6%. In this area, a posting to our multiple listing system usually results in about 10 inquiries the first day.  For the homes I have under my management in this subdivision, we are talking about long-time tenants.  Naturally, I would provide the numbers to an investor.  My original question was:: where is the best place to search for a partner/investor?

Scott Swanson · Answer

Josie,

Renting a house in Indiana that you're buying for $225k, may not work out. Your costs will be high and unless the property is renting for a very high dollar amount, the return could be poor. You didn't mention any other numbers. How much would it rent for? How much are the taxes? How much would your payments be? Once you know these numbers, you can easily figure out your return. Best of luck.