Forming A Syndication
there are lots of investment oppprtunities all around me where i live...
i have come across a few raw land pads on the market that could be built upon for an extensive amount of profit...
i dont have experience, or capital, so my first instinct tells me i need to form a syndication or solicit private investors...
my questions....
where would i look for private investors?
or...where could i place ads...
what should be my 'bait'
Who should i talk to?
do i put an offer on the property and ask the seller to allow me time to secure financing???....
any advice i could get on any angle of this approach would be appreciated...
if any investors are in the new jersey area and want to work with someone, new, but determined...im all for it
~Andrew
A private capital source is interested in two things. What will the money be secured by, and how much will I make? A well heeled investor is not going to invest with someone with no capital and no experience. That would be akin to someone saying that they would like to start an airline company that goes only to the moon and mars, but they have no money and no experience in aviation. Now, if you can actually get a group of people together that have experience, then you can start trying to find investors. Your bait is a well defined business plan. Successful people are found at nice restaurants, country clubs, golf courses, resort areas, etc... My personal opinion is to learn as much as you can, execute at least a couple of deals before you approach someone to ask them to hand over control of their money to you.
Good Luck,
Shawn(OH)
first i want to say thank you for your reply...
you confirmed my idea that noone is really going to give me their money without experience, its common sense, i guesse i just needed to hear it
im going to try and lower my aspirations a bit until i gain some experience...i just cant help wanting to dive right in
but about meeting people at country clubs, resorts, nice resturants, iv read that in a book or two...
im a bit distraught over the idea of approaching a complete stranger, in the middle of their activities, to propose a business plan...is that what you mean to do?
if so, have you ever done it? or anyone else for that matter?
im not being critical, just curious
~Andrew
i'm just guessing...but i'm guessing he means socialize with them, make friends with them, then tell them your brilliant plan on how your going to make them all millionaires or billionaires
You've got the right idea and apparently the moxie. Only time will tell if you have the intestinal fortitude to really make it. You have to have a dream before it becomes a goal and then reality. It wasn't too long ago when I wondered where I was going to come up with $175.00 per month rent, and now I am constantly searching for funding with over $1,000,000.00 in debt.
Start small, but think large. I have some articles you might want to read to get you started. If you own nothing, start with a duplex or a triplex where you can live in part and rent out the other. Get a taste. Or try birddogging for a successful person. Yes I do mean either socialize at those places or get a job at one of those places and listen. Until you know it all, your ears are by far your greatest asset, for it is through those ears where you will learn what a deal is, how to structure that deal, and what it is going to take to close that deal. My father was a factory worker and he looks at me and tells me that I have taken a lot more risk than he would have ever made, but I know, by listening, that the decisions I have made have not really been risks at all but calculated moves. And yes I belong to a country club, I play golf with bankers lawyers, accountants and business owners. Guess what? They are no smarter than you or me. It wasn't always that way. It does take time but you ewill definitely notice that as you get older the time goes faster.
Good Luck, and Merry Christmas,
Shawn(OH)
thanks for the input rmdane...
and loanwizard, thanks for the compliment about me "apparently having the moxie..." because i think i do and im glad it shows...
i might just have to pick up on golf once i get the money to join a club
but your words are insightful and inspiring and i will do whatever it takes...
like you said, you didnt take risks, you made calculated moves...and thats what i intend to do...
i am determined to fulfill my dreams, and my next step will be to turn those dreams into goals...and pursue them...
im not sure ill ever be comfortable making my first deal no matter how many books i read, until i actually shutup and do it...
i appreciate your attention to my concerns and wish you a happy holiday and many more to come
~Andrew
P.S. if you could send me ANY articles you have that you think could help me i would appreciate it if you could send them over...i will read and takes notes on every single one...thank you again for your generosity and willingness to help me out
If you click on my profile it will show you all my articles.
Good Luck,
Shawn(OH)
Andrew,
Interesting!
I attempted an LLC in Union County, seven members at $50K each, no takers.
In North Jersey like in Ocean County they purchase a $350K home and rase it to make room for a larger one.
Keep me informed.
Frank
This question is directed at " Lion Wizard".
I am looking for major capital for acquisitions, I really want to structure it as a debt rather than equity. Since you are a "pro", how do you strucure the deals? what interest rate do you offer to the lender?, also what is the easiest way to meet these investors. Thanks
Andrew,
Start small, learn the business, and then focus on larger deals. I first logged on here a year ago. My FICO was mid 500s and I rented an apartment.
One year later I am up to mid-high 600s, live in a condo I purchased, and own a 2-1 single fam home that I'm renting for $190 cash flow/mo. and $17 equity with only $2000 out-of-pocket.
Net, take care of your personal finances first. Start small and learn how to purchase, rehab, get tenants. Then go after the bigger deals once you have a knowledge base and a good team of advisors. I have a great mortgage broker, accountant, a couple of general contractors, etc. that are part of my "team" and most are more than happy to give me advice.
The other thing I learned is that the difference between a $50,000 deal and a $500,000 deal is simply a zero. The numbers/economics still work the same way. Banks still work the same way. It's just a bigger scale.
So get out there and just do it. Best of luck. It is the greatest feeling to get the check; especially when all of your coworkers are working hard for that annual couple hundred dollar raise and you got one with 20 hours of work in one month using your spare time.
~Ken
yea i bet it feels retty good haha
good for you, i agree starting small is gonna be my best bet
ill work my way up, i wanna buy out trump someday hahaha i cant stand those tv shows
thanks for your input as well, everyones been really helpfull...
~Andrew