Strategies for making an attractive offer for investors

Strategies for making an attractive offer for investors

Rental Property Investor · Metro Detroit · Member since 2015 · 83 posts · 17 votes

Hi fellow BP members,

I am just curious to see which of the below strategies you would find most attractive if offered to you, for raising capital.  

- Offering a competitive interest rate on loaned capital

- Having investor own the property, but split cash flows 50/50

- Allowing myself (sole LLC manager; where property would be held ) to receive a quarterly % of AUM (Assets under management)

Any input on alternate strategies would be greatly appreciated!

0Reply
13 views

1 Reply

Jump to latestLatest
  • Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    @Samuel S., any of the strategies you list can be attractive if attached to the right kind of property. The strategies that appeal to different capital partners will depend upon what stage the investor is in, their goals, the type of property, and the risk/reward. Some investors will be attracted to a high yield but if that yield comes with a large personal liability for the underlying mortgage, an ownership share of a property in a poor area, or one that has a lot of deferred maintenance (all situations that may leave the investor vulnerable to a capital call) the yield will not be as attractive. Many investors will accept lower yields for a share of a well maintained property, in appreciating areas, or if they can participate as limited partners and risk only their initial investment. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.