Investing in real estate necessitates a large sum of money. If you can’t get financing from a bank, you can look for private investors.
Private money is not hard to find- you just need to put yourself out there and meet new people!
You also need to learn how to be comfortable and confident when you are speaking to others about money and their financial situation.
Finding the appropriate investor not only secures funding but also gives you a useful team member with expertise in dealing with the myriad issues that arise when investing in real estate.
Real estate investing can be a lucrative way to grow your wealth, but how do you find the right investors? This article will provide some helpful tips and strategies for finding real estate investors to join you.
You can join Edna on her 90 Days to 5K masterclass to better your skills as an investor and generate more wealth through multifamily investments!
9 Tips to Find the Right Investors to Fund Real Estate Deals
There are various ways to find real estate investors to invest with you in a venture. Depending on your real estate investing goals, you can try the following ways to find potential investors.
1. Angel Investors
Angel investors are one of the first choices for those who are looking for investors for a real estate partnership. On the internet, you’ll uncover a slew of angel networks. Typically, you enter your needs and browse profiles. Some of the investors on these sites are casual, so you may need to send your plan to multiple networks before getting a response.
2. Establish Your Own Investor Circle
It is important that you establish your own circle of investors before looking elsewhere. The more people you know with money to invest, the easier it will be for you to find a real estate investing partner when needed. You may also be able to help them out by introducing them to other opportunities as well!
Also, start sharing your experiences with real estate investing with your co-workers. Be really clear about everything that you are doing, what you have learned, how much money you have made so far and how passionate you are about it. Over time, you will have co-workers reaching out to you to invest with you.
3. Family Offices
Professional wealth managers look after rich families’ assets and help them develop their portfolios. They may be interested in a property as part of a diversified portfolio, but it’s a tight-knit business that may be difficult to enter into without the necessary connections.
4. Find Real Estate Investors on Social Media
Another place where many potential real estate investors are hiding is social media sites like Facebook and LinkedIn!
These are a powerful medium to start attracting investors and letting them know what you are doing.
Start doing videos when you are looking at a property. How do you evaluate a property? How do you negotiate? Show your networks.
This will be sure to set you apart as an authority in this industry!
Also, take advantage of these platforms and their search features in order to better connect with people who may be interested in your opportunity.
5. Work With Intermediaries
Third parties are an integral part of the investment process. They have wide networks and expert knowledge which can help structure offerings to attract specific investors. So, it is important for them not only to act as intermediaries but also to educate themselves on what each opportunity entails before deciding whether they want any involvement or not.
Focus firstly upon these influential individuals within your target audience. Look at how other real estate agents dispense information regarding investment opportunities–some may advertise although others may keep a tight rein on their supply until asked by prospective buyers specifically.
A lot of mortgage brokers have clients that they can connect you with who have access to money if you let them know that you are looking.
Ask mortgage brokers if they deal with hard money lenders and they could connect you with potential investors.
They understand what you are doing, and have access to others who have hard money and may be interested in partnering with you or that might be selling buildings that you can buy.
Always be open to meeting new lawyers and networking with them.
When someone is looking to sell a business, they usually consult with an accountant.
Get to know accountants and let them know what type of properties you are looking for, and educate them on what you do!
You will be sure to hear from them down the road.
6. Targeted Networking
No matter how you go about finding a real estate investing partner(s), it is important to remember that targeted networking will always be more successful than casting a wide net. By focusing on certain individuals or groups who may be interested in your opportunity, you can increase your chances of success!
These are good candidates for potential investors:
Business Owners or entrepreneurs
It’s in an entrepreneur’s DNA to want to know about a new business opportunity! Lots of times they have money in other investments and are looking to diversify.
At times, business owners have a lot of extra cash flow, and once presented with the right numbers they will gladly invest with you. They don’t have the mindset issues that your friends and family may have and won’t need to be educated on the power of investing and creating passive income streams.
Realtors are a great source of information.
They make a really good commission and could potentially be interested in investing with you if you demonstrate that you are educated and understand the cash flow of a property.
If you build a relationship with a realtor and let them know what you are looking for, they will gladly bring you good deals.
They also may know people who have sold homes and have money in the bank or have clients who have lots of equity in a home that can be used to invest with you.
Doctors and dentists
They are busy professionals that usually don’t have a great pension, and don’t understand how to invest. They have money to invest if you can connect with them and educate them quickly!
7. Crowdfunding Platforms
Real estate crowdfunding can be a great way to fund real estate deals! There are various property-based peer-to-peer platforms on the market, some of which are more reputable than others, therefore it’s crucial to double-check the platform’s requirements and accreditation. Your venture will be promoted to its investors if it passes the platform’s credit checks.
The danger is that the project will not be completely financed by the time it closes, in which case it will be removed off the platform and you will be back to square one. The platform must offer enticing returns to investors while also factoring in its own margins and costs, so rates might be high.
8. Get Connected at Real Estate Industry Events
Show up to networking events, especially your local real estate investors groups and entrepreneur/business-related meet-ups. At meet-ups like these, everyone is there to meet new people and learn the different ways you can become more successful in life and in business.
This could be a great way to find potential real estate investing partnerships.
Even if networking may not result in opportunities or results in the short term, it can bring you opportunities, in the long run, you never thought possible.
Invest in opportunities to attend live seminars/conferences. LIKE attracts LIKE, and you will meet others who are more open to learning new things, people that are already a bit out of their comfort zone and want to collaborate.
10. Utilize a Professional Investor Matchmaking Service
If all of these methods seem like too much work, there are also professional investor matchmaking services that can help you find the right investors for your deal.
No matter how you decide to find investors, always remember to do your research and due diligence! Make sure that you are comfortable with the person or company you choose to invest with. By following these tips, you will be on your way to finding the right investors for your real estate business.
11. Bonus: Creative Ideas on finding Investors
- Business cards on cork boards at various businesses like coffee shops
- Go to church