Good Evening BP Community,
My name is Joe Rinderknecht. My question is; what are the things that investors look for in a person or business when approached to either be a financial partner,a private lender, or when investors are looking for people to invest in? Thanks in advance.
First, find out what their goals are, and what kind of personality. If it's a match
2nd, are they trust worthy and dependable?
3rd, do they have integrity?
4th. Do they do what they say and vice versa?
Finally. trust your gut.
@Chris T. Thanks for that input, I believe those to be very important qualities and traits as well . In addition to that as an investor, what do you look for in a partner?
For Example. Say i come to you with a flip deal, and I ask you to partner with me. For this deal you would assume the financial partner and I would be the one who contacts the contractors and sets everything up with the flip. In the end we split profits 50/50.
What are some things about my track record that you would want to know as far as credibility, past deals, etc. To where you would feel comfortable to partner with me and invest your hard earned money into this deal? In addition to know that I would be a credible and efficient partner?
I asked 1 investor to teach me how to get a property subject to. He said I have to make it worth his while. Seems fair to me. When I find a seller that will "let me make their payments" I will bring him into the deal. He will show me what to do and we will be 50/50 partners. Bringing him a deal also shows that I'm serious about investing and I'm not just wasting his time.
Another investor that I met has money to lend. His terms are pretty simple. Find a good deal, pay his rate (3 points and 12 percent interest), and he will help me close on the property within a week or so.
For your example, I would want you to have some skin in the game. So I would fund the acquisition but I would ask you to fund some if not all of the rehab costs.
I want to know how many flips you have done, talk to your past partners or customers, look at past work if possible. And I would want to go out to see a few properties with you as well to see if you know what you're talking.
And to take note of the little things e.g. are you on time for the apts? do you show up? do you follow up on what you say you will do etc.
You are on the right track and it is working for you, great way to apprentice. I started with a mentor got me to learn the ropes way faster but it cost me to use him. Now 30 years plus latter I became the mentor, go figure how fast time travels.
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