Wholesaler · Central Falls, Philadelphia · Member since 2014 · 205 posts · 32 votes
Hello
My partner and I are acquiring our first multifamily property in Rhode Island area in 2015, and I have some questions about funding. Please bare with me if I am asking stupid newbie questions.
If our goal is to fund our first investment with OPM or no money down if there is a such thing!,
Questions:
1. How do we find investors, and how do we prepare ourselves with the skills and tools needed to secure funding?
2. What do investors look for when partnering?.
3. What is hard money lender?, and is it safe for newbies?.
4. How do we prepare ourselves enough and not get burned, since some people prey on newbie?.
5. How do we protect ourselves and the investors money?
6. is there any links or book or club we can join or read to better understand financing or funding resources?.
The catch-22 of this process is that you need money to start. To get money you need experience. You need to figure out a way to build cash to start.
Investors have choices. Successful investors know how to place their money. They tend to go with track record. Friends and family might be an option if they see something in you.
In order to get hard money, you will need to secure a great deal. In 99.999% of the cases you will still need to have money down.
There are a couple of items in your questions that come through as a victim mentality. Anyone in business can be taken advantage of. That is the nature of business. You are doing the right thing by asking questions and studying up. Inexperience can lead to mistakes. Mistakes are learning opportunities. But the world is a tougher place to live if you are worried about being preyed upon. Go out with confidence. Take your bumps and learn from them.
@Steve Olafson You made great points, Cant have something for noting. And yes I want to learn as much as I can about this, and I am in the right place for it.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need. RI has a great one say Hi to my buddies Craig and Don.
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over