I know my relatives have money I could borrow, but I'm having trouble getting them to see past me being younger and so forth. How would you convince your relatives to invest?
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
How young are you, @Vanessa Willard? What accomplishments (outside of REI) can you point to when trying to convince them that you have the planning, perseverance, and flexibility to be successful? Have you shown them your analysis and walked them through your business plan?
Asked another way, Why should they give you their hard-earned money (other than your relation)?
I know my relatives have money I could borrow, but I'm having trouble getting them to see past me being younger and so forth. How would you convince your relatives to invest?
I think getting your relatives as investors is one of the best ways to get started. These are people who know, like and trust you (marketing 101). The key is to get them to trust you with their money in a real estate investment. What you need to do is find a very good deal and put together an amazing presentation. Once you do 1 investment that works out, the others will follow.
I know my relatives have money I could borrow, but I'm having trouble getting them to see past me being younger and so forth. How would you convince your relatives to invest?
I think getting your relatives as investors is one of the best ways to get started. These are people who know, like and trust you (marketing 101). The key is to get them to trust you with their money in a real estate investment. What you need to do is find a very good deal and put together an amazing presentation. Once you do 1 investment that works out, the others will follow.
I agree here, I also have a family that has invested in me but my first deals were traditional and hard money, once you start having success money starts to show up in some weird way as you post and talk about your success. Sounds like you should jump on the Hard money or traditional band wagon first then take that track record to them!
Real Estate Agent · NJ · Member since 2019 · 237 posts · 169 votes
6y
It's not easy, but showing them you are serious and have a plan is a step in the right direction. I wouldn't phrase it as, "Hey I need money" but more along the lines of " I have a plan, I need X amount to get it started, the expected return is Y amount. I know this because..." And show them your due diligence and research. If what you are saying makes sense and you have the evidence to support it your age shouldn't matter. That being said, even all the research in the world may not convince others to loan you money at which point I would suggest looking into other methods of funds such as other investors or loans.