So I hear this all the time, "Just pull in a partner" or "Just go to your money guy," but I haven't seen anything yet that has helped investors to create that network. first of all, how do you find the partners with money? I've been looking for the finance to fund a deal but have yet to find anything that works well for my area, due to how little I make annually. So my question really is... Where to start? How do people invest without jobs? I know there is a way, I'm just trying to figure it out. Thanks for ya'lls advice!
Finding a partner who is willing to invest with someone without money or experience is going to be difficult, but you need to offer something of value otherwise people would do the deal on their own. You might have to be able to do a lot of repairs yourself for free in exchange for a portion of profit. Or possibly find off market properties that the investors with money haven't already found.
Have you tried friends, family, co-workers, people from church, etc? Do you have any cash to put in? You definitely need to put something in so that others will see you have the belief in your project.
It takes networking. Attend REIA meetings and meetups. Private money is not something that people talk about other then in private circles. When someone invests in your deal, they are investing in you. Review the SEC rules under rule 506 regulation D. It explains syndicators and exemptions.
@Adam Crocker I am newbie only a few months into my education and have to agree with @Aaron Klatt that they would just make the deal themselves. I even talked to my uncle about setting up a deal where he gets 75% since he has the money (meanwhile I do all the real work) and he says to me "I would do the deal myself then." After telling my aunt to nag him relentlessly ( I'm still the baby of the family at 22 so I get away with this stuff ;) ). I realize that my logic of him having a 0% return annually by not investing with me versus an 8% or higher return + good real estate experience is irrelevant because people are emotional. Even if you "know" what a good deal is; people for one reason or another are simply not going to go with the untested guy. I know this isn't the advice you want to hear because I didn't want to hear it either and I very well may be wrong, but you need to get your own finances in order so you can get at least $20,000 of your own money saved for an investment.
Many want to live like Jordan Belfort with a gorgeous wife, unlimited beautiful women at a whim and all the travel time and pleasures we could imagine within a few short years but that just isn't realistic; if you want to be successful with your investments then YOU need to sacrifice and plan on coming up with your own capital. If you get lucky and find someone willing to give an untested man a lump sum to invest then please by all means send me a message with his name and number!
Otherwise, we can discuss our youthful ambitions together. I am more than willing to learn the business with others while I am coming up. An important lesson I can give you and all investors is that wealth follows a Pareto distribution. Experienced investors are probably familiar with this concept already: "It takes money to make money."
https://www.youtube.com/watch?v=TcEWRykSgwE is a great explanation of the Pareto distribution.
I just recorded a webinar for Note Camp this weekend on this very subject. If you search for Scott Carson or Note Camp and get that webinar, I think that might help. I would link to it, but I don't have the link. If I can get a transcript to it, I will forward to you. I tell some good stories on how clients of mine raised money successfully and found "money partners." Good luck!
I watched it live @Jillian Sidoti during Note Camp. Loved your presentation, thank you! I'll be reviewing that one again.
@Cody Evans I have about come to that conclusion, however, I'm trying to keep that "How can I?" attitude so I keep moving forward. @Jillian Sidoti I certainly will check that out! Sounds right up where I need to be to be looking. I'll let you know how it goes! Thanks for ya'lls input. I'll be revisiting this post soon!
@Adam Crocker , you asked "where do I start?" I'm going to answer it in a cliché way but I believe it is so true. You start where you are with what you have. You start with one podcast, one webinar for learning. You start with one email blast to your "network" of people, even if it's just family. You start with one local real estate group. Begin with the end in mind and work backwards. Partner with someone already doing what you want to do. What I have found about getting investor money is to be confident in what you're doing and just talk about it...just show it ....market it....and people will come. Trust me. You don't have to 'sell' anyone on anything. I got into buying distressed notes not that long ago and I've come a looonnnnnnng way in a short period of time because I just took a deep breathe, figured out what I wanted to do....and just did it. Dive in buddy. Take that first step if you haven't already. If you have...take that second step. And just keep going from there. If someone says, "well I'll just do it myself" then let them. There are PLENTY of people out there with money but no time....or money but no desire to do it themselves.
I highly suggest two things. Linked in and REIA meetings. I am constantly updating my linkedin to include mostly investors and banks (since I am a note investor). Just remember it does take some time. Send out new content to them weekly or bi-weekly. You will see after the 4th or 5th email that people really start to respond. It is very possible but it does take some time. Become a member of your local REIA and attempt to attend every event. They will get to know you and will happily fund deals as long as the numbers are right.
I met my first money partner on BP, and he found me actually.
I don't have a ton of experience, but I post a lot on here and try to be helpful and give the best advice I can consistently. After a while you just run across the right person. you must be persistent though.
As of yesterday it looks like I lined up a second money partner, a person I met on BP but I developed the relationship over facebook mostly.
There is no shortage of money, not even close. What people are looking for is talent, if you can show you have that, the money will come.
@Alexander Felice - could I interview you for my upcoming book?
Originally posted by @Jillian Sidoti :
@Alexander Felice - could I interview you for my upcoming book?
Happy to help ;)
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