July 11 2017
One of the top questions that prospective investors ask is in regards to where you get the money for deals in the first place. Many thinking that if you want to make millions, you already have to have millions so you can afford the deals. This is not the case. Experts say that you don't have to be a millionaire; you just have to know millionaires who will share your vision. You have to be able to convince them that your idea is the best investment possible for their money.
One of the best places to seek this money is private money lenders. These places are usually more concerned with whether or not you have a track record of successful flipping more than they are about whether or not you have a good credit score. They will want to make be assured that their investment is secure by having the deed of trust on the property.
If you are just getting started and don't have this desirable, you will have to get it by just acquiring some regular hard money loans. Although the deals you will get at this stage will likely be minimal, you will just need to be patient and work your way up. As you get experience, you will meet important people and build relationships. The relationship aspect is very important to most private money lenders. They want to know you before investing their own future success in yours.
This will mean actively networking and being social with people who are open to investment projects. When you are getting started on this networking with the upper class scene, start with those people who you already know. Encourage these people to introduce prospective investors that they know. It also helps if you are open about what you want to do on social media. It is a good practice to let the public know that you are an investor and a serious one at that. Chronicle your investment journey on social media and you may be surprised who sees it and becomes actively interested. You may not get any really big investors, but it is a proven way to get a good number of little ones.
Any investor who gives you their own money for something is going to want to know all the facts. This will mean sitting down with them and carefully going through every aspect of your business plan. A good relationship, while an important component, will only get you so far. In this thorough laying out of your business plan, you will want to show them very, very plainly why they should invest with you. If you have one, relate your track record completely.
If you don't have a track record to bolster your image, don't worry about it. After you start small-time investing with regular loans, people will take notice of your successes. Depending on how well you do, you may eventually have investors coming out of the woodwork. You might end up having private money lenders approach you rather than you approaching them. Girded with a just a handful of great money lenders, you can pretty much do deals whenever you want. But be careful. There are lots of reasons that your present money lenders may not be able to lend you any more funds.