chicken or the egg ?

Question

Friends,

To this point in my investing I have either bought my properties for cash or was able to get commercial loans with 30% down. Frankly, i've use most of my capital and want to keep reserves. I want to expand and am now looking to court investors. So, what comes first finding the deal or finding the investor ?  If i land a deal but have no funding i look like an a**, If there in no deal to present, how do you court investors ?

Joe

Joe Paoletta · Answer

thanks so far. Every real estate  investment I have made so far has turned out well. Again, I have self capitalized.  It's time to find investors. What I really need is a mentor that has been through a similar scenario. I like to tell people that I've moved myself from 'small time' to 'medium time' and seem to be stalled. I have 7 different ventures ranging from the 'pedestrian' double to private lending, all of which have been successful. We ( the wife and I ) want to move up. There is a multi family complex that we like but don't have the down payment. We have our cash tied up in our other properties. We've never had a loser.

We are stalled and need guidance.

Neil Schoepp · Answer

@Joe Paoletta

I come from the SFH world myself and was looking to move into smal multifamily 12 to 25 units. I had the same question. During my research I came across this article written by Michael Blank. How to raise money to get started.......

In a nutshell find a deal that would be similar to what your looking to acquire and write up a Sample Deal Package. You then use this to present to potential investors saying I am looking for deals that would be similar to this, when I find one that meets the criteria set forth (property type, returns, market area etc.) can I count you in?

People say if you find a good enough deal the money will follow. I look at it like this: the money will flow much quicker if I already have those relationships set up. The deal package opens the door to start that relationship.

Hope this helps

Neil

Brent Coombs · Answer

@Joe Paoletta, you'll easily get more eggs if your previous chickens are much more productive than at the start! In summary, how have your investments fared so far? Cheers...