Keys to locating Private Investors

10 Replies

Hi Michael... consider that you are a private investor. What would you be interested in? Imagine if you were a cash buyer, what would you want? How would you like people to approach you?

Probably you would be wary of anyone pitching you a deal until you got to know and trust them right?

This is the name of the game - networking and building trust

This forum is a great place to start - try outreaching to people who are looking for deals, find deals yourself, network with agents, brokers etc etc etc

Hope that helps

I agree, Deep! In this business networking and trust is very important. Michael I have seen many relationships built and deals done from reaching out to people on bigger pockets. Best of luck!

@Michael LaVan Hi Mike: The best way to locate private lenders is to look around your network, and to network to find individuals who have money in 401ks, CDs, Stocks, or even Real Estate. I find a lot of private investors/lenders at meet-ups and networking events. I’m also very active on LinkedIn with my current flip projects, and track records so I attract lenders through that as well. You can also check family,friends, and other Investors who may be interested in partnering up with you. The key is to always talk about your passion for this business with any and everyone, and you would be surprised who ends up becoming a private lender for one of your deals. I hope this helps. Feel free to reach out to me if you have any questions!

@Michael LaVan there is a marketplace tab at the top of the page, but I think you will have better response on a local FB page for Buy, sell, trade. Zillow is free and the most visited website. Craigslist and bandit signs are OK too, but you have to answer the phone when it rings. Most bandit signs never answer or return the call if you leave a message. Be prepared when the call comes in. Have a contract written out and ready to go. If they call, you can't lead them around for a week. If you have a REIA, print some flyers to hand out at the meeting. Also, let your local real estate agents know that you will pay a 3% if they bring you a buyer. Most investors probably don't use an agent, but if agents don't think you will pay, they will not show your property.

P.S. bring some donuts and coffee to your broker's offices and introduce yourself. Tell them what you do and hand out some cards. Offer to give them a class on investing. Most agents do not understand NOI, Cap Rate, IRR, etc

As others have said, networking. Start talking to people. Have a good deal and know what you're doing...you'll have all the money you need.

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