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How do you find Private Investors? Are they really out there?

So I've read about private investors in many books and I've heard about them in my classes at Trump University, but I haven't been able to really align myself with one. The thing is that I don't want to use my own money, plus banks aren't giving too many approvals these days. My credit isn't bad at all, it's close to 700, but I just rather not use my own money for a deal that's $200K. I got a deal for under $50K and on that one I'm ready to fork it out, but anything above $100K I rather use a private investor.

So are they really out there or what? You guys know way more than me. Tell me please because I'm really eager to find out.

Are there people who have money, who want to invest on deals that will bring them a return on investment of 10%-12% secured by a lien on real estate, short term 6-9 months? Do they exist?

Or is this a myth?

If they are real: How do you find them so that you can begin to develop a relationship?

Thanks in advance guys.

Posted by Carolina Paredes on 08/13/2008 10:43 PM

Comments (18)

private investors, high return on investment, real estate investors

This post has been included in New York Information Queens County, NY Information Far Rockaway, NY Information
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18 Comments on How do you find Private Investors? Are they really out there?

AUG

2008

try biggerpockets.com

Private lenders are definitely out there. As with any endeavor, it does take time and effort to find them. Putting aside the legalities as you will need to address those issues accordingly, I would suggest that you initially turn to family and friends as a good starting point.

Your work is cut out for your explaining to them what you do, how it will benefit them (letting them know that it will benefit you too!), and getting them to the point where they feel comfortable investing their funds with you.

I feel that it is of utmost importance that you professionally lay out for them the entire process and let them know that there ARE risks that they need to be aware of as there are no guarantees with investing.

Managing large sums of money leaves you carrying a LARGE responsibility as well! Take your time evaluating your investment opportunities, error on the side of passing up investments if you are trying to MAKE the numbers work and don't have multiple exit strategies.

Please feel free to contact me with any additional questions!

Brooke, did I tell you you rock already? Well, you ROCK!!! Thanks so much, you're so resourceful. I hope I can help you like you're helping me. God bless!

Hey wait!!! There's no name... How will I be able to reach you? Your advice is good sir/mam and I will take it. I guess networkmarketing isn't too far off after all, because this is where you start too: Friends and Family. Gracias so much, but could you send me a message with a way to contact you? I won't pester you or anything. God bless.

Carolina,

I have to ask, if the deal is not good enough for you to want to use your own money why would someone want to give you theirs? Why not work the smaller deals an build up to working the larger ones on your own?

AUG

2008

Brian, That is an excellent question amigo. And you're right. I have owned a business since 2004 and since 2005 I haven't worked for anyone else, so I guess I just assume that no one will approve me for that kind of money because I have business and not a job. I've never bought real estate because, as stupid as this may sound, I never thought I could. I'm definately putting my own money on the 50K deal. I was just mainly thinking about the bigger ones, because I really think I can get a duplex or multifamily deal. What do you think I should do? Thanks in advance amigo.

Carolina,

Most private investors want to see some sort of a track record before they take a chance on a new investors. I got lucky on my first project with a friend of a friend who was willing to take a chance. Of course the eventual goal is to be able to use my own money and not have to rely on investors. But that's a long way off. lol - Good luck on your first project!

Jim

I must watch too much tv because I read your post title as private investigator.... hmmm. lol. You have a great question here and I'm glad that I read it because I've often wondered the same thing. So, if Veronica Mars can dig out some private investors for us, we would find lots of deals to land! :-)

Jim, You know amigo I've read and heard a lot "Why use your own money? We don't use our own money and we're filthy RICH!!! HA!" Ok maybe they didn't say it quiet like that but they do say that even the people who have money don't use their own and that is why they are wealthy. I just want to do the right thing. The smaller deal, if it goes well and as planned, is within my reach. I guess I'll do what you, the mystery person, and Brian said and just start with the little one and build up.

Lindsay, you made me laugh so hard I almost fell. You're so funny amiga! Private investigators? Ha,ha,ha,ha!!! In all seriousness though from what I'm reading I believe we're gonna have to proove ourselves so we can build ourselves a nice little portfolio of deals made. Then they'll be knocking at our door non stop and we'll be like "I don't know.... I'll see... I'll put you on the list how about that? Bye bye for now."

Carolina,

Thanks for being a Trump University client. Did you talk with your client adviser here at Trump U? If not contact me off line and we can figure out a way to help you get the information you are looking for.

Mr Katz, You know I need to ask again because when I asked the last time the person told me to join real estate investing clubs which I have joined a few, there's so many of them out there, and to network which I'm doing. Maybe it just takes time. However I'll call again and explain my situation a little better. I really haven't called that much to be honest, maybe I should call more. Thanks Mr. Katz. By the way: That was a good webinar you did the other week!

Carolina,

You're on the right track with the smaller one. It's good to want to want the big ones. I have the same ambition. Building up your track records with profitable deals will show you know how to find them. Although if you read Trump's Art Of The Deal you remember that Trump tower was started with 250K his father gave him to get going. He found those investors by going where the people with that kind of money were. I forget the name of the club he got into to rub elbows with them but it can work. Just keep focusing on it and you'll get it.

AUG

2008

Carolina,

Definitely give them a call. I am sure someone can help you out or give you some direction.

BTW - thanks for the compliment on my webinar.

AUG

2008

Google "hard money lenders." They are everywhere. They are going to want a hefty ROI, but there is no risk to you. Your only requirement is finding good deals that will work out. At the end, everybody profits.

Or, just ask Mr. Trump. :)

AUG

2008

Hey Jesse, I will do that. Thanks for the idea and the comment. I love win-win situations!!!! I did ask the good peeps at Trum U. and they were really helpful actually. I made a couple of offers over the last week and a half. Nothing as low as my first one, but still pretty low offers. Everything is good though, the more I do the better I get, and the more I understand this baby.

OCT

2008

always try the owners of the property your trying to buy I bought 2 4-plexes that way w/ no money down it does happen just gota flip over enough rocks till you find the crab :)

Pat

DEC

2008

We are looking for imvestors to finance Discount Real Estate notes

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Carolina Paredes

Far Rockaway, NY

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