Finding Investors
What should my ad say when I am looking for privtae investors?
Earn 10% on your money backed by real estate. Call 555-555-1212
Has any one ran this type of ad before?
What made your ad get the best response.
:-o
It's VERT IMPORTANT when putting a ad
in the paper, that you AVOID the words-
investment/garentee(d)/ ect.
There are securities laws that come into
play, when stating or imply investing or
returns of other peoples money.
Consider contacting the Atty. Gen./SEC
offices in your state for guidelines . The
info is free -not the penalties!
This is how my add reads:
Investors Wanted!
*Style of Investment: Capital Sought: Silent Investor, Mortgage Financing
*Capital Sought: Minimum Investment Considered: $10,000 and Maximum Investment Considered: $750,000
*Security of Investment: Investment Secured by 1st mortgage position
*Location: Missouri USA
*Class of Business: Single Family Residential Homes
Executive Summary: We purchase and sell single family residential homes with a primary focus on financial distressed homes. Investment is secured by 1st mortgage position.
We purchase real estate 50% to 80% of value!
Investor expected minimum return is 10% secured by 1st mortgage position. Maximum term of investment is 12 months.
As with all investments risk may apply - Risk limited as secured by real estate!
Example of 12-month investment: Purchase $100,000 home for $75,000.
Your investment of $75,000 Secured by 1st mortgage. We do all the locating, repairs, and selling.
Property sales for $95,000 in 12 http://www.months.Gross profit return of $20,000
* Less repairs $3,000
* Holding cost $2,908
* Closing cost $1,425
*Sale price $95,000
* Total project cost $82,333
* Net profit $12,667
Your return $82,500 = 10% return in 12 months
Ok folks this is copyrighted and you can use it for personal use but not to sell.
_________________
John Michael
Success one deal at a time!
[ Edited by JohnMichael on Date 09/20/2004 ]
John, did you subtract your financing costs. In this example, what would your investor’s profit be?
$8250 would really cut into your profit.
Great Question,
The first key is I have no investment but time. So my profit is just simply profit.
Let's run the numbers on how this works!
Sale price is $95,000
Cost
Investor loan $75,000
Interest on loan $4,124.30
Repairs $3,000
Holding cost $1,495
Total cost $83,619.30
My profit $11,380.70
Now if sold by realtor @6% $5,700
My profit $5,680.70
I do a lot of deals just like this - it's all about bird-dogging.
I have investors, I find properties, Investor buys for me, property goes in my name, and I sell the property and profit.
It's simply all about networking and "OPM" other peoples money.
[addsig]
Hey John,
How do you buy in your name when another person is paying for it? On some deals, such as REOs (if you do REO's), and have to submit a comittment letter, how do you/would you do this if the money person is someone else, but you are submitting the offer?
Thanks,
DeeLewis
My money person is acting as the lender they are taking a first mortgage position. No different than using a bank for purchasing real estate.
[addsig]
I run a ad with:
Seller to pay all closing cost and down payment $1000, get you in this new 4BR, 21/2 Bath, over 2000 sq ft, under $150,000. I have several properties this will work on, and many investers answer my ads. Find your best invester deals out there and run ads in the states, you think you'll find investers, maybe you will also find great buyers. I do most of my ads FREE online and have 100's of leads to work and pass out to others.
Best Of Success,
Linda Tx
[addsig]
John, shouldn't you be looking at this differently. I took classes and you should be doing the reverse.
Market Value 120,000
10% for closing, selling
108,000
15,000 repairs
93000
10,000 profit (Your time is money, if you worked for someone you would be paid)
83,000
You should have paid somewhere in the neighborhood of 74,000 for that property.
If you do it backwards, you can't lose! :-o
demolady
Forget what your paying, its the end result that counts. I won't purchase something that I can not make $10,000 on. If you make $10,000 profit and it takes 6 months to unload, your making $1666/month, plus paying taxes on that, I like to live on more than $1200/mo!