Right Avenue for Private Money?

8 Replies

I'm currently considering taking action on recruiting as many private money partners as humanely possible for my RE deals and have thought up taking this route: executing Calling up a couple local financial advisors and private wealth advisors(since these are middle man connections to money) and pitching them my private lending opportunities in which I want advisors to present it to their clients and whichever client wants to do deals with me, I'll have them available for funding my deals and I'll pay a "referral fee" to the advisor for his/her help.

So for all the readers of this post, my questions in sought of direction and sufficient instruction, can my idea be accomplished successfully without violating any rules that the advisors would be faced with?(I read something about the"selling away" rule).

My other question is, would those types advisors be best for this agenda or a different type of advisor?

What do your deals look like?

You're certainly not the first to think of this Rodney, and probably won't be the last.  It's a needle in a haystack hunt for the one wealth manager who will want to play ball with you. Mostly because your referral fee and the wait for said fee won't entice them enough to steer their clients away from the other vehicles that truly get them paid.

What you, and every other investor who wants their own private money partners should do is run an MLS search of all properties in your farm area that were clearly flips in the last 24 months, then Redfin each property and look at the recorded transactions to see if deeds of trust were placed on the property when first purchased, then run a title search of those deeds to see who the beneficiaries are, then track down those beneficiaries any way you possible can...and convince them to work with you.

Good luck sir!

Originally posted by @Darren Eady :

What do your deals look like?

2bd+/1bd+ SFRs in the range of $30-70k w/little to no repairs. Great for landlords in a rental market where rents go easily for $650-900/mnth for 9-5 tenants or Section 8 tenants. Also currently in the process of building my list of sub-2 deals.

Originally posted by @Aaron Pfeffer :

You're certainly not the first to think of this Rodney, and probably won't be the last.  It's a needle in a haystack hunt for the one wealth manager who will want to play ball with you. Mostly because your referral fee and the wait for said fee won't entice them enough to steer their clients away from the other vehicles that truly get them paid.

What you, and every other investor who wants their own private money partners should do is run an MLS search of all properties in your farm area that were clearly flips in the last 24 months, then Redfin each property and look at the recorded transactions to see if deeds of trust were placed on the property when first purchased, then run a title search of those deeds to see who the beneficiaries are, then track down those beneficiaries any way you possible can...and convince them to work with you.

Good luck sir!

 I understand clearly that I'm not the "pioneer" of this type of action, however, as someone who is simply wanting to attempt something that may work, that was true purpose for my post. Additionally, thanks for your response and wishes! Conclusively, would the wealth advisors actually pass up an additional check for doing practically nothing? Moreover, for educational purposes, the advisor whose clients have their monies tied up in only so many investment vehicles(securities) could further leverage that same money by borrowing against just one of those securities, fund RE deals(not even mine) and let the same initial security investment work a double for him/her.

Preaching to the choir.  

It's all about mindset and risk for these managers. Will you get them paid appropriately and are you worth the risk of their clients' money?  Sell them on that and maybe you'll make some headway...

@Rodney Dixon

 FYI, several of the "wealth advisors" that I meet with are Real Estate investors themselves and some of their clients. One of them is a rather large Real Estate investor. The only doors that 'may' open to you are the ones you knock on.  Persevere!

Originally posted by @Don Harris :

@Rodney Dixon

 FYI, several of the "wealth advisors" that I meet with are Real Estate investors themselves and some of their clients. One of them is a rather large Real Estate investor. The only doors that 'may' open to you are the ones you knock on.  Persevere!

 Thanks Mr. Harris!

Originally posted by @Aaron Pfeffer :

Preaching to the choir.  

It's all about mindset and risk for these managers. Will you get them paid appropriately and are you worth the risk of their clients' money?  Sell them on that and maybe you'll make some headway...

 Nicely put Mr. Pfeffer. Thanks for the education!

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