How do I find an investor?

Question

Hi there,

I am still new to this site - and I do not use it as often as I should, admittedly.

Anyway - I worked in Property Management for 10 years managing large apartment communities for Management Companies and the Owner Agents. After years of looking at some of the ownership distributions ($50k, $75k a month... AFTER operating and capital expenses, management fees, and salaries...!!) I started wondering.. Why can't I be the owner, receiving a distribution?

Oh right - I have no money, and if I had the money to buy a community, I certainly don't have the credit (I had lost my job at one point, and with the layoff and loss of income went the good credit.. Story of so many, right?)

So here is what I would like to do:

1) Buy/build an apartment community in Massachusetts
2) Use the profits from the community and re-invest in other communities and/or: fix'n flips, owner financed homes, lease-purchase options, etc

I am hoping that there is someone out there, willing to invest the money in Real Estate, but maybe they don't know how or don't know where to begin.

Any ideas on where I can find an investing partner? Literally someone who in exchange for my knowledge and experience, will invest their money?

Thanks!
- Stephanie

Paul Timmins · Answer

@Stephanie Beard

Welcome.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). You can Google to locate them and go to meetup.com Local to you are Rockland, Plymouth and Cape Cod.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,  The Book on Estimating ReHab Costs  http://www.biggerpockets.com/flippingbook

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul

Mike Hurney · Answer

@Stephanie BeardRealistically, you do need money to get started.

When you're working, they say to bank 10% into a Savings (because it's tougher to get at than a Checking)  account, right away.

Mike

PS We used to give out "The Richest Man in Babylon" to our new members (site in signature below). Every book store has it. Probably half an evening to read it.

Stanley John · Answer

Start networking at your local REI club. Once you start showing up at these clubs, you will start networking with other people involved in real estate. You will find realtors, agents, wholesalers, investors and mortgage brokers who have plenty of resources as they have been in the industry for a while.

You can also place ads on Craigslist/any other free AD websites, so that other like minded investors may connect with you on projects like these. Make sure you thoroughly interview investors, get referrals and/or ask them if they have done any projects in the past.

Stephanie Beard · Answer

All great information, thank you! I know I'm in a hard place with all the experience and knowledge in the world, but no money to get started nor the credit for the loans! Vicious circle.

Colin Smith · Answer

I too would agree with what has already been mentioned. Start going to REI groups and start networking with as many people as you can. You are going to need to also bring a little bit more than just experience to the table. Having the background in a property management company is a really good start, but you would have a lot more pull if you were also managing your own properties. I would consider house hacking first as a way to gain experience, credibility, and cash flow.

Stephanie Beard · Answer

Both are great points - thank you!

Eoin Matthews · Answer

@micah is right -- start with meetups and take it from there.

That said, it's going to be hard for most investors to start with a community when you're not bringing any capital. If you need someone else's capital to get some wind in your sales, start with a more modest goal that you can reach in the short term. It will be easier to proceed to larger projects/financings when you've some successful projects behind you.

Micah Copeland · Answer

@Stephanie Beard

The best place to start is your local Real estate investor meetings around town. If you google REI then your city you should find meet ups. Start going to some and make some friends. Once people like you and know that you know your stuff I am sure you will be able to find what you are looking for.