Finding Investor

13 Replies

How do you guys find investors for your properties? 

I'm not looking for general catch-all advice, I'm looking for personal specific stories.

 (i.e. I found this guy at the gas station while buying a hot dog on the way to Minnesota for a family vacation - it just happened!)

Originally posted by @Douglas Slingerland :

@Ben Leybovich It is a plastic viking hat.  It was found laying around the office, so I put it on.  It's got some sharp edges, so I don't wear it too often.   I like it though.  I think it's suave. 

 Haha - somehow I am not surprized at you using the term "suave"...something I would say.

Look in your phone. How many people in your saved contacts are able to write a check for $100,000 - how about $50,000 - how about $500,000? The answer is right there. And if it's not, you've got to trade up your contacts :)

But take that damn plastic viking thing off is you want anyone with capacity to write a $500,000 check to take you seriously! 

Originally posted by @Douglas Slingerland :

@Ben Leybovich  

I don't have these contacts in my phone... where would you advise I find/look for them.   

Can you give me some hard, concrete, personal experience and stories to top off your solid phonebook advice?

 Your circle of influence! If these people aren't in it, then improve yourself. I am actually not being vague. This is really how it works. If you have to ask us where to find people with money, you've got bigger problems than not having money.

Open your mind

A saying I hear frequently is "Your network is your net worth." Of course, there's more to it than just that, but w/o a solid network, you're not likely to go far as a real estate investor. Find your local REI groups, attend, and mingle. Rinse and repeat.

@Douglas Slingerland remember that guy that owned that restaurant that you washed dishes at when you were 15?  And he was kind of an a-hole and made you work double shifts so you quit?  And then you noticed he started opening more and more restaurants and getting more and more recognition?  Yeah, start with that guy.

I'll give you a very specific story.  Though this did not lead to an investor for me, it does illustrate what you need to do.  Succinctly that is to talk to everyone you know and everyone you meet about what you do.

I took a load of rubbish to the dump.  I'm pulling my junk out and notice the guy next to me is also dumping rehab trash.   So I say hi and we start talking.  Yes, he's a rehabber, working on a project.  We chatted a bit and I asked how he financed his deals.  Turns out he had one private lender he worked with to fund all his deals.

Now, I didn't take this any further. I wasn't looking for a funder. He already had one, so no opportunity to refer him to the HML broker I work with. And I had no properties to sell, so nothing to offer him in that regard, either. But this brief discussion could have gone in any of several directions.

If you mean how do you find buyers for deals you have for sale, that's the easiest step of all. Search public records for buyers who pay cash. Go to REIA meetings in your area. Get a good deal and advertise it on craigslist. Compared to finding deals, finding buyers is the easy part. If you have real buyers and none are interested in your deals, they are most likely not good deals.

Go through your phone, and facebook and tell people that you want to take them to lunch or meet up and tell them about what you are doing in real estate. 

You need to come with a game plan to show them as well.

But I would also change your photo, it is a little too goofy for someone to take you seriously. 

There are people RIGHT NOW not even members on this site looking and reading in the background that are very affluent.

They are making a split second decision on whether to make contact or not with you. If you are talking smaller projects with 25,000 investments the investors tend to not be as astute and can be more liberal in making investments.

The larger investors want to feel security in safety of the property and knowledge and experience of the sponsor.

I have formulated contacts directly or indirectly through this site that are individuals with some approaching net worth of 9 figures. Presenting a professional and polished image on this site it would seem to probably go further. I get the lively picture as you are just showing personality. That might come off better in a local setting one on one where the excitement from your personality extends over to them meeting in person.