How do I find investors?

Question

I'm trying to find investors that'll want around a 10-20% cap rate or higher. I found a market where rents could be around 1.6k, single-house or manufactured homes that I'll wholesale. I just need contacts. I'll do it for free in exchange for partnerships on future deals. The markets are pretty good, at least for mine aside from the constructions. It's hard to find them, but I've found a neighborhood that'll multiply by 2-3x.

How do I find investors? I also found a 6 million dollar deal that would skyrocket to 10-11 million in a year or two in a different market, but it won't cash flow for the year.

I'm 17, going to be 18 after summer.

How do I find investors? I also found a 6 million dollar deal that would skyrocket to 10-11 million in a year or two in a different market, but it won't cash flow for the year.

I'm 17, going to be 18 after summer.

Scott E. · Answer

I don't want to discourage you, but you don't need to be finding investors right now, you need to find a mentor.

There is no way that your $6 million dollar deal is going to "skyrocket" to a value of 10-11 million in a year or two. That is a unicorn of a deal. That type of price movement happens from time to time, but even the most sophisticated investors on the planet can't reliably forecast or force an appreciation rate like that.

Your head is in the right place. You're light years ahead of your peers. Spend the next couple of years getting educated.

Scott Allen · Answer

Hi Branden, it sounds like you really enjoy looking for deals and analyzing them. Since you're almost 18 years old, consider taking the classes this summer to get licensed as an agent so that you can put deals together with investors as you come across more deals. Also consider networking with agents in your area that work with a lot of investors and buy themselves so that you can get a little more guidance and mentorship as you're starting out. To get started, I'd recommend finding a friend that you wouldn't mind living with to house hack a duplex. From there, you'll be in on a deal and you'll be able set responsibilities when it comes to partnering on bigger deals in the future.

Branden Yang · Answer

I don't have any money that could be used in 500k-1 million dollar deals. I'm mostly good at finding deals. I found a deal at around 6 million, it could be appraised at 10 million. Is working for free to get investors good enough? I have the whole summer off.

Charles Carillo · Answer

@Branden Yang

Start networking at your local meetups. I would suggest doing a deal with your own money before partnering with an investor. The knowledge you will obtain from actually doing a deal will assist you throughout your real estate investing career. Also, it is much easier to raise money for deals after you have done one.

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