Experienced Contractor/ Newbie Investor
I have 15yrs exp. under my belt in residential construction, and looking for advice on finding an investment partner. I have located quite a few good deals for rehab projects, but cannot find the financial backing...advice or help?
Hi Cwoods,
Click on the Lenders tab at the top of the page.
From there click on your state.
It should yield over 60 programs from private lenders.
Depending on your score, you can also go traditional routes as well as contacting various building supply companies that offer such lending.
Presently I get my loan from one of my local suppliers.
NC_Yank
With a credit score in the low 500's, not many of the listed lenders will touch me. (I was quite the slacker in my early and mid-20s, and am paying for it now..) I am just basically wondering how you go about finding a financial partner to let me do all the work, and just let them make money. What's a realistic time frame for locating an investing partner when you're brand new to the game?
cwoods, i understand your dilemna. just advertise for cash investors in your local weekly paper or an online bulletin board (free). you could also start to ask people you know with money, maybe some past employers, if they're interested in making 15%-25% return on thier investment, backed with a 1st or 2nd mortgage (depending on the deal you find). also you could put an ad in the paper for a typical home that you're selling for cash - and voila, you've probably bumped into a few cash investor/partners.
next, all you do is let them know your experience with homes and keep reading so you can hold an intelligent conversation with them on how to not lose thier money!
but first, just advertise. you can advertise on here too, if you have a lead, put it in TCI Realty and someone will probably contact you about it.
good luck!
Actually I have a purchase agreement that will expire in 6 hrs if I can't find someone with the finances to back me. I aquired the right to purchase a house in Buffalo NY for 25% AV. I even have the wife's permission to go to NY to do the rehab myself if I can find the money. The house was assessed at about $26K, and I was able to get a deal for $9K. The only proplem is the deal expires at midnight tonight if I can't secures the funds necessary to complete the rehab ($5-7K). Anyone interested in a deal?
i'm sorry i can't help. i'll tell you tho, that's the worst amount of cash to need on a project. i found that out the hard way too! no one wants to invest under 50k in a home because they won't make enough on it. so it makes it tough to get those deals as a new investor to make money to get started.
cwoods7,
tick, tick, tick - sound of time expiring on the deal or money walking away. Good lesson in learning to line up the money sources quickly and as soon as possible. There's a saying that if the deal is good enough the money will come but it's not going to come to you by itself like a hound dog sniffin' coon. It sounds like a good deal but money investors can be a cautious group like wanting to know how their money is secured of all things. If you can get that piece of the puzzle together quickly it will make finding the money even more quick. Honing your skills at deal presentation is something that will happen over time. In the meantime also work on accessing other sources of money. If you don't find a willing investor before time runs out it will just inspire you more to get what I mentioned taken care of. What a wonderful thing that there is more than enough deals out there - there'll be another one before the next sunup.
To your wealth.