I'm new to the private investor idea. I question how people are finding investors that are willing and able to invest, when friends and family can't help. This has been difficult but like all things real estate, I think you just need to put in the work to get the results. Any advice is appreciated.
Talk to everyone you know and everyone you meet about what you're doing. Private investors are people you personally know. You have to meet those folks and develop a relationship. It takes time and effort, but such people do exist.
Sounds like I'll kiss a lot of frogs before one turns into a prince! Do I need to worry, probably not, about sounding like an infomercial? Are the people I'm looking for predisposed to this or at least interested?
Find a deal with promising returns. This shows that you have some sort of clue about the type of investment you are looking at. Bring that deal here to BP and have us put it through the wringer. There aren't too many other resources on the planet that will give you level of insight the BPers can, and will!
Once you have a deal vetted, start talking to those same people again. It is quite easy to find people that will tell you why and how you are going to fail. If they have actual insight, listen to them. But more than likely they're going to tell you that REI is risky and you shouldn't do it. Those are the folks to ignore.
Bring your well thought out, vetted deals here to BP. Bring them to your local REI meet ups. Bring your deal to any one you know that is wealthy or makes a lot of money. Eventually someone will invest.
Bring some of your own money to the table. It doesn't have to be half the deal, but 5k shows you are fairly confident.
The basic concept behind raising money is this:
No one will give it to you when you need it. Everyone wants to give it to you when you don't.
Thanks. That's a great idea. Deals move fast here in Chicago so I will put things together and then post it.
You may find a deal, but you also need to be prepared to sell yourself and your ability to do the deal correctly. If I had money, why would I give it to you sort of thing...
I have seen many a good deal go south because people doing them have no clue or an ego so large, they turn a prince into a frog (using your phrasing).
If your looking for help with how to approach Private Lenders, visit under Resources Webinar Archives. Brandon does a great job on presenting how to approach Private Lenders and how to prepare.
Tim thanks for that. Knowing what to say is as important as knowing who to say it to. Thanks everyone for your help.