Looking for advice on how to get hooked up with a good private investor.

Member since 2023 · 2 posts · 0 votes

My name is Jonah Rupe, I go to school here in Lubbock at Texas Tech University getting my BBA with a concentration in project management as well as a construction engineering minor. Ive been a fan of Bigger Pockets for some time now and was wanting some advice on how to find a private investor. I would love to get started in my real estate journey as fast as I can. The only way I see that happening is with a private investor. I hear so many stories of how people start out there journey and this seems to be the best way if your young like me with no money to spare... Is there any advice out there on how to find these investors?

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Michael SmytheBusiness Member

Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes

@Jonah Rupe you already know enough people to find private investors in your own network.

You just don't know how much money they have, and you haven't established any credibility with them so they would loan money to you.

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Andrew Kiel
Investor · Tucson, AZ · Member since 2017 · 208 posts · 235 votes
2y
Family, friends, and network like crazy. As far as friends go, when you're young, that generally means the parents of friends as the tendency is they will have money to invest where friends in your age group are less likely to have investable funds. If you have a local real estate investment association or club (REIA) join and attend. Meetup groups are also great. Personally, the people I've met through my local REIA (AZREIA - in Arizona) have been invaluable.
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Guy Gimenez
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
2y
Your first job will be to educate yourself daily on the investing strategies you plan to use. Find a minimum of 1 to 2 hours daily to research, investigate and deep dive into each investing niche you hope to use. You'll also need to learn about marketing, property values, repair costs, property management, etc.
Your second job is to build relationships daily. Private money sourcing is built on relationships. But since private money is relational based versus purely collateral based, you'll need a track record to prove yourself. With no experience and no money of their own, it'll be difficult to find a PML who will provide you $50K to $100K or more due to the risk. You may find a hard money lender to help though.
The alternative is to find a seasoned investor in the location where you plan to invest, work out an agreement with them to bring their money, time, expertise, relational capital, systems, etc. to a deal you bring to them, and let them show you the process from beginning to end. It's true you'll likely make very little money on those deals but your benefit will be expediting the pace at which you learn this industry.
Smart money has an agenda...it wants to replicate. You'll have to convince private money investors you have the knowledge, skills, talents, expertise and drive to help their money do just that.
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@Jonah Rupe you already know enough people to find private investors in your own network.
You just don't know how much money they have, and you haven't established any credibility with them so they would loan money to you.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Join a yacht club, work at being popular and make a lot of friends there.

Good Luck!
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Jeremy HoldenBusiness Member
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 156 posts · 90 votes
2y
Welcome Jonah, im an investor and agent out in Phoenix who started in 2020 right out of college. The best advice I can give you is to read everything you can for a strong educational base. Then network like crazy so you can get idea of how to actually put your education into practice. Real estate is not easy, but it sure is rewarding if you can pull yourself up by the bootstraps and get creative.
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