My wife and I are beginning real estate investors in Utica, NY. So far we bought a duplex in 2016 which we live in one side and rent the other. In 2017 we bought and renovated another duplex which is rented out. Now we are looking to buy more multi-family properties:2-4 units. We would prefer not using traditional financing if we can help it. Problem is we don't have many in our inner circle that we know of at this point for private loans. So, we are looking for some advice on how to find them. Thanks!
I’d recommend getting out to local meet ups that have other investors at them. You never know who you will meet.
Try finding non-RE investing groups you can visit, preferably high income individuals like doctors, pilots, snow birds/retirees. Check out the chamber of commerce, rotary/lions clubs.
@Timothy Francisco you can definitely try to attend a bunch of different organizations of non real estate investors and if you are super smooth you may develop some relationships with folks that would lend to you. But that is extremely intimidating to most people, maybe not for you I don't know.
The best way is to go to every single meet up you know of within driving distance and network like crazy. Those people are mostly investors who "get it." If there is someone there looking for a landlord to invest with they will say it or at least it will come up in conversation. One leads to another and another.
@Timothy Francisco reach out to your circle and share with them your success. If they’re not interested or don’t have the means, ask them who they know that might be interested or who they know that already invest and get an introduction. Lots of coffee buying in your future. 🍮🍩
You can always use hard money and refi or cash out refi out of that deal. At least if you have some equity in the deal you can get some cash out. If your familiar with hard money and can finish your project in a short period of time than try it out. I used it on my first flip which was a single family home. I hope to find some private lenders too!
@Timothy Francisco I second what @Peter M. said about non-RE groups. Also, I suggest you come prepared to these groups. Prepare a credibility package that shows the deals you've done and your team members' bio. Ideally it should also have some recommendations excerpts written by your investor(s), clients, external partners.
Best of luck!