How can you invest cash in a established investors operation

4 Replies

I don't have a lot of cash laying around I do have a little bit in mutual funds. I'm interested in maybe in the future investing cash in successful real estate investors deals.

I would like to understand more about returns from deals like that. What's the minimum amount you can invest and stuff like that.

I heard grant cardone talk about taking a guys 300k and flipping twice over in a short period of time. He kinda over exaggerates and idk if that is typicle or if that's was a one off great deal.

It is very possible to loan money to a fix and flipper.  You loan them the money to buy and fix the property and collect interest once they sell the it.  You would need a sufficient amount of cash to fund the deal, so how much that is depends on values in your area.

When you make the loan, you would want a security interest in the property, just like any mortgage lender.  That is in the form of a recorded mortgage or deed of trust, whichever is used in your area.

There are laws about making loans like this.  They vary state by state.

There is very real risk.  If you hand over the rehab budget up front, the borrower could just take it and run, leaving you with the property that's worth less than you are owed.  The rehabber could go over budget and end up giving you the property back, partially finished.  Some big problem could crop up.  You need to do your own appraisal (at borrower's expense) before funding the deal.  You need to over see the project as it progresses.

Read thread that talk about "hard money lending".  That's what you're doing.

You can also just find reputable investors in your area and meet with them and discuss partnering on a project where you bring the money to the table and they bring the experience.  I've seen 50/50 deals done like this.

I don't think I'm talking about hard money lending. Maybe what I'm thinking doesn't exist but I guess I'm thinking more in terms of a partnership but less then 50% were I would get a percentage of profits from rent every month. 

I have a potential borrower who could have used an angel like you! 

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