Rental Property Investor · Jacksonville, FL · Member since 2016 · 8 posts · 1 vote
Newbie question,
Looking for some advice on getting my deals funded by high income, under invested individuals like doctors and lawyers.
Does anyone have any advice? Is anyone currently doing this for flips?
Thank you:)
Ben
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
7y
@Ben M.
You obviously read somewhere that targeting people with money to invest who are not familiar with real estate investing and too busy to manage their own investments is a successful strategy. It can be! However, you would need experience and a verifiable track record before anyone would seriously consider financing you (other than a benefactor).
Assuming they have a down payment available and good credit, beginning flippers and investors should rely on institutional financing. Without the good credit, they may have to avail themselves of hard money lenders, which may be the only alternative if the property needs extensive repairs. Some real estate borrowers have been successful securing financing from a personal loan crowdfunding site.
With experience, knowledge and a successful track record one can check the boxes private individuals look for to feel comfortable investing their money .
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Ben M. As @Don Konipol points out correctly, you need to have a successful track record that speaks for itself. Aside from that it is essential to have the pre-existing relationship with the folks that you'd like to work with as private lenders. So start building the relationship now in parallel to building your track record. When you will have something to show them, the relationships will be already in progress and it will make it easier for you to approach them with an opportunity.
