What steps do I need to make to create my own investment group?

Question

Hello everyone, my name is Bill and I am a novice real estate investor here in the southern Denver area, though I haven't done my first deal yet, I am hoping everyone here at biggerpockets I can potentially change that. Over the past year I have passionately been trying to learn everything I can about Real Estate Investment; I have studied hard in college classes, followed multiple online mentors, I have read multiple books, read countless articles, watched several hours of YouTube videos, joined several FB pages to network on, and extensively studied everything on Biggerpockets. Now I would like some advice on where to go from here.

My business partner and I and both US Army Veterans who have decided to pave our own way. A short summary of us would be after getting out of the Military we became very dissatisfied with "normal" civilian life, so we decided to apply the skills we learned and our resources as Veterans i.e. GI Bill to create the life and lifestyle we both want for our families and ourselves.

After studying REI for the past year we have decided our goal would to ultimately put together an Investment group to secure Commercial Real Estate starting here in Colorado. I guess my question would be how do I network and find potential investors and what advice would you give us ultimately to get this off the ground? We are completely dedicated to this idea and no matter what we will give this everything we have.

Dan Mackin · Answer

Next Denver BadAss Meetup is on May 22nd.

https://www.biggerpockets.com/forums/521/topics/441355-denver-meetup-may-22nd---badass-real-estate-investors

Charles Roberts · Answer

Hi Billy, over the past 20 years I've had several partners in real estate, some good and some bad. I'd suggest using partners and attempting to build a group together if you simply can't do it on your own. Otherwise, you might want to keep things simple and just proceed by yourself. The best partners provide something to the business you don't have, and work with you because you provide something they don't have. Otherwise, they tend to wither away, sometimes dramatically with poor results. The replies above have lots of great advice on how to connect to others if you want to try to create a group, just know it takes a lot of work to put together and maintain a successful group so make sure it's really what you want to do!

Lennon Lee · Answer

Billy,

Congrats for putting all the work and effort to educate yourself. Real estate is definitely a beautiful avenue to financial freedom.

Before thinking about finding investors and talking to them I would focus on determining where within the commercial real estate realm you want to position yourself. Is it office buildings? retail? multifamily?

Whatever asset type you decide to go after, you guys must then focus on determining your strategy and business plan. When you mention you want to secure commercial real estate do you mean acquire and then hold? for how long? are you going for a value-add play?

After having a clear picture of what your strategy will be and the specific niche you want to attack, I would recommend to put some effort in building your brand. Build a nice website, decide on a social media platform to start sharing knowledge, create a local meetup, ect.

To now answer your question, I say just do it. Start by letting all your family and friends know what you are doing and how you can help them. Go to local REIAS, meetups and networking events. The answer to your question is actually within the question itself. You will find potential investors by networking.

Only after you are seen as a thought leader and an expert in your industry will investors come to you and will want to invest with you.

I hope I've been of help.

All the best! good luck.

Lennon

Jennifer Slaughter · Answer

welcome @Billy Barnes! Get some networking cards and start meeting like minded people, there are a lot of meet ups between Fort Collins and the Springs. I think networking and human capital is your greatest resource but you can also access the VA loan (for owner occupy) and your local small business development center if you decide to go the route of creating a business plan/financial projections. Good luck!

Mindy Jensen · Answer

@Billy Barnes, I know there is a Denver meetup, run by @Dan Mackin and @Anson Young that meets at The Bicycle Cafe every month. Not that far away from Castle Rock. I think it would be closer than Colorado Springs.

There is also a Northern Colorado meetup in Erie if you're ever up that way. The Denver meetup is larger than the Erie one.

Dan, Anson, when is the next one?

Alina Trigub · Answer

@Billy Barnes

In order to find local REI groups you can search through Meetup dot com website. Start by putting the word "real estate Denver" into the search field. You will get some results. Once you sign up for at least one group on this site, the site will start sending you their suggestions for more meetups. You mentioned you're part of FB REI groups. See if any of them are local to you. The best way to network is face to face! And then maybe you'll decide to organize your own group of like minded investors and start inviting interesting speakers. This is a good way to attract attention/audience.

If I can be of any further help, feel free to PM directly.

All the best!

Matt M. · Answer

Find a true deal, and you'll have no problem finding the money, etc. Checkout the local meet ups to network. Get boots on the ground and hustle.

Chris Lopez · Answer

@Billy Barnes, @Lennon Lee made great points that I agree with.

You do not have money and experience on your side. Which is fine. You have "hunger" and a willingness to hustle. Experienced investors and/or people with money will appreciate your drive a lot. Make sure you're commitment shows and do whatever you can to have a personal stake or performance based interest in the project.

If your ass is on the line and you're willing to work harder than 99% of others doing the same thing, investors will appreciate that.

This approach has worked extremely well for me over the years in various business settings. In a couple of partnerships, I brought the least to the table in terms of experience, skills, and money. I was willing "to walk through walls" to create my own doors of opportunity. My partners loved my approach and that's why I was brought on board.

Now, that I'm on other side of the fence (experience, skills, money, etc), guess what? I look for people like me 15 years ago.Just a reminder to not get too caught up on details... let your hustle show.

chris

What steps do I need to make to create my own investment group?

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