Finding Investors

Finding Investors

Many Americans dream of investing in real estate, the sad fact is that most of those of us who dream about it, do not have an exciting amount of disposable income in which to make these deals that will net the high profits and most consider either a mortgage (which will entail interest payments over a period of time and require that we are able to get the necessary financing—not everyone is) or finding an investor who is willing to front the money, but doesn’t want the sweat equity and leg work that may be what your strength is. Of course, you are probably sitting there thinking, yeah like they grow on trees.

The thing is you would probably be surprised at some of the unlikely places you can find someone who is willing to invest their money in a real estate deal but do not want to invest their labor or do not have a lot of time to invest. Busy professionals may want to make the investment to supplement their retirement plans or simply to diversify from the stock market, it seems that real estate has become a much more stable place to invest these days.

Have brochures, flyers, and business cards printed. Post them wherever you are allowed and hand business cards to everyone. Seriously. Offer a modest finder’s fee to those who provide solid leads. Check your paper for investors who are looking for someone like you. Chances are, if you have the need for an investor, there is an investor out there who has a need for someone like you. Try placing your own ad. In fact, branch out for placing and sorting through ads, your local market may not be as ideal as one that is half an hour away.

Remember those business cards, hand them out to every parent you run across at the PTA meetings, soccer practice, choir rehearsals, you name it. Even put your kids to work for you. Chances are that your card will eventually find its way into the right hand and perhaps a beautiful partnership is formed. Also keep in mind that if you work it wisely you may only have need of an investor on the first few deals, after that you can do your own investing. Also check into any local organizations for investors. Not all investors are involved in real estate transactions currently and not all want to be limited to one partnership, the more money on the table the greater potential return. Also important to remember is the old saying about a bird in the hand. Never, ever, alienate investors.

You may have need of them again someday or they may have need of someone like yourself. You want to maintain a good relationship for as long as possible. It is also wise to remember this because this world does happen to be a small one. Even in the area of real estate investment, word gets around quickly. This is a business and you must treat it as such if you ever hope to make it lucrative.

It is also wise to remember that no business is worth sucking the life out of you. If you find this is not your thing, move on. One deal doesn’t marry you to the business nor does it make you a guru. Investing in real estate or partnering with other investors can be an extremely delicate negotiation process, not everyone is cut out for it. I do wish you the best of luck in your endeavor and hope that you have gleaned some useful knowledge by reading this.