Real Estate Investor · Pittsburgh, PA · Member since 2010 · 10 posts · 0 votes
I recently approached a long time friend who has a little experience in real estate. His response was "im never dealing with real estate again!" I know he has the means to be a private lender.
Which comes to my question. How should I approach him without being a pest? Dont be to hard on me guys Ive never done a deal in my life & I dont have a property to even present to him...yet!
Thanks!
I'd really hesitate to take friends/family money until I had a decent track record. I'd recommend doing some deals along side an experienced investor. I'd document everything and then present it to friends and family on paper.
Seeing it on paper makes it more tangible and factual.
When people first approach me regarding money, (unless I know them) I want to see everything in writing. Just my two cents!
Flipper/Rehabber · Mechanicsburg, PA · Member since 2013 · 189 posts · 84 votes
10y
Why does he feel that way about real estate? Did he own property during the last bubble? I'd start by understanding why he feels that way, could be some good education there as well.
I've also met people who are just ignorant and would rather just take the interest rates offered by the bank. Trying to change the minds of people like that isn't worth your time
I'd really hesitate to take friends/family money until I had a decent track record. I'd recommend doing some deals along side an experienced investor. I'd document everything and then present it to friends and family on paper.
Seeing it on paper makes it more tangible and factual.
When people first approach me regarding money, (unless I know them) I want to see everything in writing. Just my two cents!
Real Estate Agent · Indianapolis, IN · Member since 2016 · 18 posts · 7 votes
10y
Hi Shantese,
Before coming face to face with any potential lender, you should have a story to share. It doesn't have to be your own story if you have not done deals yet, but to instill in the receiver the confidence in what you are doing.
You need to bring VALUE to them...but before bringing what YOU think is value, you need to find out what VALUE means to them. In your example, ask your friend why he is so adverse to doing anything in real estate. Sympathize with what they've experienced and ask what if it was done a different way. You should compile sample deals to present and the kinds of ROI the private lender can expect. Don't even mention "real estate" when you at the first stage of finding out what motivates them. After you find out their "why", that's when you have earned the right to propose that real estate can be the vehicle to help them achieve their why.
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
10y
@Shantese Skrine I hope that you are marketing to people in your area to try to find houses that you can buy at a great price. If you can flip a house when you have to pay 12%-15% and still make some money, then you can show your friend that you have a track record. Let them know that you can make even more money and they will be safer when you are borrowing at only 8%. You just have to find the really good deals to rehab.
This whole real estate thing does not happen overnight for most people. Start sending out postcards, letters, etc to targeted people in your area. Wholesale to get a little cash built up, then rehab something with some hard money. After a few deals you will be on your way.
Real Estate Investor · Pittsburgh, PA · Member since 2010 · 10 posts · 0 votes
10y
@Jeremy S. I believe he had a very bad tenant and he ended up selling the property & his "problem" I am going to get him to tell me the story in detail soon. @Brit Foshee thats a great approach & its makes a lot of sense. I just thought about his previous dealings in RE & being we are long time friends he would being willing kinda. But in reality he just completely shut me down. Which is alright at the moment being that i dont have anything on paper to show @Sylvia Grugett thank you so much! There is so many great ppl on this site & to think i was always scared to post & or reply. @Thomas S. yes i have been marketing with no leads which i know its not an over night thing. Which my focus was on wholesaling at first & just that so I have decided to rehab which that lead me to tge whole private lender.