Structuring 506(c) funding
2 Replies
Jubbar Cross
Rental Property Investor from Saint Louis, MI
posted about 1 year ago
In your experience of pitching your project to investors, what do you think the best way to go about it is? We want to bring in investors but we want to make it easier on ourselves by knowing where to look first. Thanks in advance!
Greg Dickerson
Developer from Charlottesville, VA
replied about 1 year ago
@Jubbar Cross Raising capital and private money is all about relationships. People invest with those they know, like and trust. You need to establish a relationship first and show that you are an expert in the space.
You establish yourself as an expert by educating yourself, experience, track record, creating a thought leader platform to share your knowledge and experience. If you h e no track record you can partner with experienced sponsors and operators.
Finally it’s a contract sport. You need to get out there, network effectively and make contacts. You need to meet the right people and figure out how you can be of service to them then follow up and stay in touch in a meaningful way.
Here are some ways to find private lenders and raise capital.
Friends and family as potential investors and who they might know
Networking groups
REI meetups and groups
Community events
Non profit organizations
Facebook groups
Other investors
Mortgage brokers
Title companies and closing attorneys
Property managers
Google search for local, regional and national PM lenders
Alina Trigub
Rental Property Investor from Glen Rock, NJ
replied about 1 year ago
@Greg Dickerson summed it up really well for you. It is a long process and requires a lot of patience and determination. Here's another resource to guide you in the right direction:
https://www.biggerpockets.com/member-blogs/10850/86199-how-to-find-wealthy-investors