How to vet investors?

Question

I'm just starting out. I've had a lot of contact with investors that want to partner up. I read in another forum "there are more actors in Real Estate than in Hollywood". That one really stuck with me! Besides just searching their name on Google. What is the best strategy to find what properties they own etc? To figure out how credible someone is?

Karl B. · Answer

That quote is hilarious - AND TRUE. I would ask to see their documented track record. And still - as mentioned by others, confirm VIA the assessor's office. Some cities will list the property owner on their assessor website for free; some don't but you may be able to find out the owner by contacting the assessor's office.

In my PA market I can either pay to have access to the database with the property owner's names or I can call the lady in the office and she'll tell me. In my MO market they list the owners on the assessor website and it can be accessed for free - all I had to do was give them a reason for wanting the information (I told them I was an investor) and they set up the account for me.

I would also ask them about their worst failures in real estate. An honest person will tell you - a beginner or B.S.er will claim they have no failures.

Jasmine Russell · Answer

@Scott Mac you are not wrong 😆 I'm learning to weed these out

Scott Mac · Answer

I think that's why so many females like to have Female only investor meetings too--so they can keep it all business.

Good Luck!

Grigory Pekarsky · Answer

The best real estate investors are those who know how to assess their own strengths and weaknesses. If you're looking for a way to find the right investor, use these three simple steps: 1. Determine your needs 2. Evaluate the investment capabilities of each candidate 3. Assess whether they have what it takes to do business with yo

To ensure the right property investor meets your requirements, you need to identify what you are looking for. Is it a short-term or long-term investment? How much capital are you willing to risk? What type of return on investment do you want? Will the property be used as an income generator or as an asset for resale at a higher price? Answer these questions and more before meeting potential investors. You also need to determine how many due diligence requests each candidate must fill out. This way, they will know exactly what information they should bring with them to their meeting with you and help move the process along faster than if you had not given them this list.

Jasmine Russell · Answer

@Karl B. Good advice. Thank you!

Scott Mac · Answer

My number one advice would be to separate out those who "Want a Date" types from those "Want to invest ONLY to make money".

Mix those strings up and things could get very complicated and uncomfortable--b/c you know some of them are out there.

What I'm saying is try to keep business and personal as separate as possible.

Just my 2 cents.

Nicolas Beaujean · Answer

@Jasmine Russell That’s a tricky one lol the real answer is it depends(annoying I know)… When I first got started I had 0 experience but had done a ton of research, I still lost 100k on my first deal (lol) but I used that painful lesson on my pitches to tell future partners what I learned and didn’t give upit was also a raw land permitting play and I payed back the investor every penny I owed which helped my brand-

Now, for those that know me I don’t need to go over my portfolio, what I’ve done etc because my reputation precedes me however, when I’m in a scramble and need funding for a deal and advertising it to the world and talking to strangers I’m absolutely going over my track record so they feel comfortable that I know what I’m doing and if I don’t specialize in a particular niche I get someone on my team and involved in the deal who’s and expert there and have them on the calls or at the very least their website or something

I definitely am a fan of fake it till you make it but if you’re the one putting capital into a deal maker, check, double check and triple check everything they tell you and do your own DD

Jasmine Russell · Answer

@Nicolas Beaujean thanks so much I appreciate your advice! So this is sort of a norm where investors will ASSUME they need to provide info without asking? I would think it would be a norm. I've noticed people put out a certain persona yet they don't have many properties or experience. Just being cautious out here!

Nicolas Beaujean · Answer

@Jasmine Russell

Most states do, some don’t you can just google “public real estate tax records (state name)”

“Public entity look up (state name)”

You can check the registry of deeds to verify the llc they say owns the property, does own the property as every transaction is recorded with real estate

You can also reach out to a title company, they’ll be able to help with your specific state etc and the nuances

Not everyone has a portfolio website

I’ll give you an example of one of my properties in Boston , it’s owned by 274 Seaver st llc and the address is 274 Seaver st

In the corporation division you can google the name of the entity, and my name pops up, so boom I own the llc

Then you go to tax assessor records and the deed says “grantee 274 seaver st llc” boom you know the entity owns the real estate

Then you can google

Hope this helps :)

Jasmine Russell · Answer

@Nicolas Beaujean do all investors have a portfolio website? How can I make sure llc's are legit?

How to vet investors?

Most Popular Reply