How to Ask Investors for Money As a Real Estate Investor

Many real estate professionals say that you can’t purchase any kind of investment real estate if you don’t have the cash. Not true at all, as a matter of fact if done correct you can improve many lives doing this.

A number of years ago this concept was unheard of. Bankers and other professionals always said if you don’t have the money saved up don’t even bother trying. And, truthfully if your going to try to borrow from a financial institution of any kind you probably won’t get the funds unless you have a sizable down payment of at least 25% of the total loan.

I’m going to give you some really valuable tips on borrowing the money from other sources and in many ways this is better. Doing it this way you don’t have to deal much, if at all with the banks or other financial institutions.

1) One of the simplest way to borrow the money is from other people. There are so many people in almost any city in the country that have money for this. It would not be going to far if I would say there’s literally billions of dollars available to get at any given time. There’s so many rich citizens that worked hard throughout their life and really sick of the way the Government handles retirement money for them. There’s so many benefits for both you and the borrower for doing it this way. The economy and the way the economy is right now it’s a perfect time to set your plans this way.

2) The first thing you must do if you want to proceed with borrowing the funds this way. You must put together a portfolio so the person your going to ask for the money will be comfortable with you. Make sure you tell them everything about you. You’ll want to tell them what your plans for the use of the money will be. Example; are you going to use the money for a duplex or a house for rent. What ever the case might be just don’t be dishonest with them, tell them your plans completely. The person that you want to ask for the money will be able to tell if your dishonest or not, in most cases. Remember, the person didn’t make all that money by being stupid, these are very intelligent people. You only have one chance to make a first impression, so make it a good one.

3) That leads me to this, make sure to always be presentable when meeting with someone. What I mean by this is dress well and not sloppy. Remember the first impression! Be ready, rehearse what you want to say so you sound professional. One good way to do this is to say it to a family member or in a recording device. It doesn’t have to be perfect, but you must be sincere and in that way you’ll look sincere. As I said before, the person is a professional and if you want to partner up with them, you must show them what’s in it for them.

4) Yes, you must show what’s in it for them. By this I mean you must do your homework and show how you plan on paying them back. How much you plan to pay them. What interest rate you will pay them. Why it’s better investing in you than it is in a 401k or any other investment. Right now it’s easy to beat almost any other investment opportunity that they can get. You want to make them know this is the best bang for the buck for them.

5) This is really important, it doesn’t matter ho many people you ask, don’t give up or get discouraged. No matter how hard you try you’ll never get all of these people to go with you on this. If they don’t want to help you part as friends and move on. Don’t get mad at them just because they turn you down. Put yourself in their shoe’s and think about what you’d do. And always remember the person that turned you down might be your best partner in the future. In many cases that person wants’ to see if you do what you say.

6) Another way you could be partners with an investor is to make them a fifty percent ownership with you. This works great in many ways. First the investor will put up the money for the property. Almost like a silent partner. Second, you will take care of all the maintenance on the property. You both share the expenses and the income after all the expenses are paid.

In conclusion, this is the best time to get into this kind of investing, especially with the money that’s available in the private sector. The investors have no place to invest the money they have to get a good return.

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