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How To Buy Rental Property With Private Money Investors

By
Real Estate Agent with Keller Williams Realty

I recently saw this request on a small business forum:

 

Where can I get investors for real estate?

 

Hi! I'm a real estate agent in L.A. County and I know many low-priced homes, both foreclosed and regular sales. Now that market is down, prices are low, it is just about the right time to buy. I would like to put together investors to buy a house, fix it and rent it out, and wait for it to appreciate in the next 3 to 5 years. Where can I find such investors? Thank you for your help.

Here are two reason no one responded with the proper answer.

  1. The person is a real estate agent using the same tired line, "It's just about the right time to buy."  
  2. The person has never attended real estate investors assocation. In Arizona, we have a great group  which is creatively called Arizona Real Estate Investors Assocation. 

The best way to find such investors is to follow SEC Rule Regulation D and chat face-to-face. However, one unique way to have identify private money income property investors is using public records.

Check out my review article on how I used Patrick Riddle's Private Money on Demand:

http://www.InvestmentRealEstatecorner.com/how-to-get-investors-patrick-riddle-private-money/

Bonus Reason Number 3:

This L.A. County real estate agent asked this question in 2008. She felt that L.A. County would appreciate by at least 2011. Was she correct?

 

Invest Wisely,

Kendall Matthews

Show All Comments
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Kendall,

Great post.

There are lots of investors right now picking up great deals.

I get calls all the time, yet I do not work with most of them.

You have a different approach

PHil

Aug 30, 2011 06:09 PM
Robin Moffitt
Gold Star Realty, Inc. - Nampa, ID
"Gold Star Service....Gold Star Results !"

Kendall...you are singing my song!  After 38 years in Real Estate, it was really an adjustment to go from the institutions for $$$ to the private money investor.  However, if you think about it....the private money lender's are in the same boat!  They have had their money in 'commercial/institutional' money markets and today, with the way the economy is...have no clue what to do with their money to protect and increase it too!

 

We've oferred investor's 2% in points and first deeds of trust on the property in question.  We use an after repair value and put together the comparables to show where we are taking the property once we acquire it!  We give title insurance and liability insurance too so they are really in a good position.  I don't know what your rental situation is but here in Idaho we are able to put tenants in and achieve quite a cash flow...another twist!

 

Anyway, check out some of my blogs and...other's on the subject too.  It's an awesome way to maneuver in this market!  GO FOR IT!

 

ROBIN

Sep 21, 2011 11:11 AM
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