I'm new to real estate investing. I don't have a strong network (yet). How do I find other investors who would be interested in being a financial partner in my deals? what's the best way to approach these folks. I know RE investing is very much a relationship business, but how do you create, foster and develop them if you don't have them in your current network?
Thanks for the great advice!
Find RE events in your area and attend them regularly. I wouldn't approach them directly asking for money tough. I'm a big believer in building a relationship first, and the deals will show up when the time is right. I would also try to educate myself the most I can (BP is the right place for that), read blog posts, listen to the podcasts, attend the webinars. I think makes much more sense to join these events if you have at least a little bit of knowledge.
I don't think would be wise to approach someone saying: hey, I'm a newbie, have no idea about REI, and am looking for partners to fund my deals.
Do your homework, study, educate yourself, learn the most you can from the forum and blog posts, and then move forward when you feel ready.
This is exactly where I am right now. I'm also a newbie, and I'm studying a lot! Already learned so many things in the past few weeks. The podcast is amazing! They give a lot of tips for newbies like us.
Good luck on your journey!
I'm a solo guy myself, but heard a good piece of advice for folks that seek financial partners.
The word partner has legal meanings that can get one into hot water with the SEC and other regulators if not done right. This experienced collaborator, after consulting legal minds, recommended to use the term 'financial friends'.
I have a couple financial friends as private lenders matter of fact. But they are just lenders. Partner can mean many things. Good luck, Jason!
Stefano and Steve, great insights!
'Financial friends'. I like that!
Thank you, both, for taking the time to respond to my post. I really do appreciate it.
Do a few deals with an experienced syndicator, and tell everyone you know or meet about what you are doing. Put yourself in situations, and participate in activities where you will be able to meet and network with high net worth individuals. Participate and be active in those activities. Give before you receive.
@Jason Herr - Like @Jeff Greenberg said, go to seminars & bootcamps. People that invest and own property are in the room. As a new investor, if you're looking to buy a multi-million dollar apartment building, you will need equity partners and someone with experience that you can bring to the table that will be a sponsor for you and go on the loan.
For starters, since it is fairly close to you... check out Brad Sumrok's event next month in Dallas.
I'll be there!
@Jason Herr start your investing first. Building social capital requires growing then networking then growing...
When starting out you just don’t really provide other value. You are sorta sucking it and it’s a good way to gain a reputation of being an ask hole. Get some experience or at least read the books then network.