How to raise capital

Question

I am looking to purchase a 8 unit property. i need assistance with down payment how do i raise the capital  for down payment. Any suggestions would be highly appreciated.

Mohammed Rahman · Answer

Hey @Amir Mohammed - if you're looking for investors, they like to see a track records as well as a footprint/presence before starting a conversation about possible financing.

Depending on your background, specific banks may be willing to finance a large chunk of it while you provide a smaller-than-average downpayment (they will also look at potential rental income, etc.)

Good luck sir!

Solomon Suleymanov · Answer

Hey Amir,

One great way to raise capital is friends & family, you also want to show your potential investors your track record! People are also always looking to JV on platforms such as BiggerPockets! Hope this helps!

Bob S. · Answer

Flip the contract, make a fee, save then go on your own

Amir Mohammed · Answer

I have run my analysis on the ROI , cap rate and all of that. I am looking for investors to do a JV. Thanks

Ben V. · Answer

Have you done your research on the property? What I mean is have you done comps, have you run numbers for ROI, have you studied your pitch to investors, are you going to be able to answer their questions carefully and explain in detail how they are going to make their money back, the risks associated with giving you thousands of dollars? Just thoughts.

You can raise capital from friends, family, real estate agents you know, even loan originators can jump in the game if things make sense.

Muhammad Abdullah · Answer

Salams Amir

I'm always in the market for a JV scenario..

Eliott Elias · Answer

Issue is whoever lends you the money is going to take second position on the property. Most likely is going to be friends/family or some kind of private lender

Bob S. · Answer

Well you have little to no experience, so trying to raise the down payment will be very difficult, flip the contract as I mentioned

Amir Mohammed · Answer

I live in the bay area and i am still not able to compete cash offers in this market

Amir Mohammed · Answer

I am looking into that as well. Thanks

How to raise capital

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