Realtor · Colorado Springs, CO · Member since 2016 · 14 posts · 1 vote
Hey BP nation! Hoping someone could help me out with a simple question. If a wholesaler has a property that they are trying to get rid of and I am an interested buyer but want to use OPM is there a strategy that you would recommend using? I would like to make this property a long term investment and add it to my rental portfolio as well as I would like to stay away from banks. Thank you in advance for answering my question and bring light into my situation.
It's easy and it's not. You're going to want to look for a private lender, partner with the credit to get long term financing or an individual looking to put their money to work. These can be people that you know such as friends or family, or local investors investors looking for a return on their money. I personnally found my private money source by networking at the local REIA. It was a simple introduction that led to coffee, that led to many hours discussing and analyzing deals, that finally led to several deals funded. The great thing I found about private money is the ability to structure the deal to pretty much whatever works for both parties. Keep searching and researching and you should find what you are looking for.
It's easy and it's not. You're going to want to look for a private lender, partner with the credit to get long term financing or an individual looking to put their money to work. These can be people that you know such as friends or family, or local investors investors looking for a return on their money. I personnally found my private money source by networking at the local REIA. It was a simple introduction that led to coffee, that led to many hours discussing and analyzing deals, that finally led to several deals funded. The great thing I found about private money is the ability to structure the deal to pretty much whatever works for both parties. Keep searching and researching and you should find what you are looking for.
Even easier than that, talk to the seller and find out what it is they need. Maybe they'll do a contract sale with you and let you take title to the property for only a little bit of money down? Maybe they are trying to buy a car and need $1500 for the down payment on the lease. Maybe they would enter into a lease / sub-lease agreement with you where you maintain the property and the renter in the property and just pay their payment.
TWO IMPORTANT QUESTIONS:
1. Why are they trying to get out of the property?
Christopher Goldie I really appreciate the advice and will most definitely run with what you said going into my next REIA meeting! Any suggestions I should keep in the back of my head when going into a REIA meeting? Conversation starters? Must have items? Networking secrets/strategies that you use?
Hey Darren Eady I really appreciate the time you took to answer my question. Your advice was put to use and was not wasted so I hope that you know the time you took to answer my question wasn't wasted. Thanks for opening my mind a little more and really narrowing down on what the seller needs and wants rather than looking at it as a one way street. Hope the weather out there in Utah is tearting you better than it is here in Colorado!
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Now you're ready to face the RE world !! Keep asking questions!! REI is an ever-evolving learning experience!!