Private Investor Questions
I have spotted a couple of great properties that will have great returns once they are rehabbed. The problem is that I am low on funds right now so I need investors. What should I offer them in lieu of a loan? Just 12% on their money? What options do they have? How long do they usually wait for the house to sale? And what will assure them that they will get their money back and at the time specified? Sorry for all the questions but I don't have long to think.... thanks!
I was in the same boat as you last year. I approached a private investor that had $$ in the stock market. I told them that I was going to rehab a property and gave him my guestimates on all of the details of the deal. I ended up giving him 10%simple interest on his money due when the prop was sold and recorded his loan against the propery. It was a great deal for both of us. I ended up using his money for six months and his money was secured by the property. I didn't not give the investor a due date on the loan. It was a good deal at 10% if it took one month or two years. Good luck!
Raquel;
Every successful real-estate investor I know have millionaires in their back pocket to fund their deals. Once you realize the power of private funding, the sky is the limit.
This is what you do. Place an ad in your local paper for a few weeks:
"Real Estate Investor With Proven Track Record Looking For Investors Who Want To Make 10-12% On Their Money Secured By A First Trust Deed"
When they start calling you, prescreen them and tell them you purchase properties with an LTV below 70%. Ask them how many deals they are able to fund. You want to work with someone who has at least $1M. Meet them for lunch, dress professional, tell them you will pay them 10% with monthly payments for 100% financing or 12% Fee Simple, meaning you will pay them back when the house sells....
If they have an IRA, they can use this to fund their deals if they use a third party administrator such as Equity Trust.
Go ahead and do this and post your progress with this in a week or so...
Best Regards,
Jeff Adam
[addsig]
again, thanks alot, JeffreyAdam! and thanks to the other Jeff as well....
Jeff,
In your example ad you say "Real Estate Investor With Proven Track Record." Can you use the same technique if you're just getting started? I also have deals that I would like to make but have no millionaire in my back pocket.
Thanks,
Justin
jeffhale68
What's the name and number of your investor? I would love to talk to him.