Any thoughts on the best ways for re investors to meet people to invest in private real estate notes?

2 Replies

....Other than 'immediate family and friends'.........?

From what I've read and thought so far, some ideas are...

-getting involved in organizations as a board member, such as non-profit organizations

-making friends with financial planners who have OPM to invest

As I understand it, per the securities laws, you can't make general solicitations, and there are limits to what you can raise, such as one item in I believe Reg. D that says max 35 investors and $5m a  year.

35 investors is the limit on non-accredited investors if you select a 506(b) exemption.  You can have many more accredited investors.  99 is the cap to stay below the "investment company" threshold.  

You can solicit under 506(c) as long as you "reasonably verify" they're accredited.

Financial planners aren't going to steer their clients to you.  Non-profits is a nice angle and there are a lot of folks that do things like that.  The best way to find more investors is to perform well for your existing ones and to ask them for referrals when they rave about your performance.  Word of mouth is the best way to find more.  

There are a couple of ways to network with investors... and find Real Estate Investment Clubs are a great way....look for local investment clubs to your market or where you are investing.  Wine clubs are a great way as well as its a great way to find money.  

Attending investment workshops or conferences such as Papersource and Noteworthy are 2 events just for paper investors.  Noteworthy had 800 investors last year and is in October.  Papersource was in April and had 250 investors....both are in Las Vegas.  Great networking and can dramatically increase your business.

You could always jump on the county recorder's office and pull a list of self directed ira owners by searching for Equity Trust, Quest, Pensco, etc as the Grantee/Grantor on Deed searches. This will often give you a list of SD IRA owners and their addresses....often times these are investors who have made loans or funded transactions.

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