Real Estate Investor · AL · Member since 2008 · 131 posts · 1 vote
I figure this is as creative a way to finance property as there is, so I'm posting it here. so I've been finding a bunch of properties that look like good deals. I don't have the money to buy them, but I know quite a few people with money. Do investors typically approach other investors with deals and bring everyone together to make it happen?
Can I take some percentage of the deal by bringing all the money together and making the whole thing happen? Does this typically happen?
Hello Grinder, It sounds like you want to become a broker. That's what I do. I know where the money is and I help RE investors find the funding for their projects.
Hey. I don't want to become a broker. I want to start acquiring property. In order to do so, I think I need to broker deals, but I'm not going into the lending biz.
Can anyone with experience making deals using OPM tell me a bit more?
Grinder, what you're suggesting is a great idea. Sometimes it really is all about "who you know." Just make sure that you can figure in nice profit margins for everyone involved BEFORE you bring the deal to them.
Investors typically have an ROI number in mind so ask them what kind of return they expect. Treat your partner's money like you would a loan; it's a cash outflow, but it gives you the capital you need to make the deal happen. Recalculate your deal, subtract out your partners' profit and see if it still makes a profit for you personally.
Private money lenders can be good friends indeed. :mrgreen:
Thanks Charles and juzamjedi. I'm still a bit fuzzy here. I know Trump built many properties by brokering the deal. Many successful builders and developers do the same. Just seems like they try to keep this all a secret. Does anyone have any other info on the matteR?
Grinder...I am with you...Can any one actually give us the name of a particular investor that I can bring these great deals to and help make one actually happen
You'll have to look in the newspaper. Look for all the same classified ads you would put in. There are several big investors out there, but you'll have to look in your region. I would check the yellow pages, internet, classifieds etc.
It all comes down to the deal. when you find an attractive deal you can get money, you just have to ask. I pay 12% on short term loans ALL THE TIME. The deals usually last 3 to 6 months and the money is returned. I have investors lined up and they hate to get their money back.