SDIRA Investors

[Hollis G.]

Question for the group: where would one go to find investors with SDIRA’s that can invest in RE projects? I see the benefit of using these types of “Funding Sources” for RE projects over Hard Money Lending. Jon Holdman gave some advice, and I was just asking to see what other TTP’s (Tactics, Techniques and Procedures) they are using, or have used that was successful for them. (and if this would be better answered in another forum, if you would be so kind to point in that direction, greatly appreciate it)

Thanks
Hollis

[Mike McDermott]

I'm going to suggest a couple of things. First is get your mind-set right. You're not looking for money; you're offering opportunity. To get straight about this, look at what banks are offering. .99% on a one year CD. If you save $100,000 in this bank, you earn $990 at the end of the year. You might as well wait table for that.

The mutual fund guys are delivering 8% if you dollar cost average, which means you must invest through up and down cycles to achieve that. This is great if you're 25 and can throw your $75 per paycheck in, but if you're sending your kid to college in the same year your mutual fund tanks, or you suffer a down market when you get laid off, you're screwed.

So why not offer people something their banks and their Wall Street toadies can't. Offer people regular returns backed by real estate. I prefer the phrase: How would you like to receive 8% in safe and secure, fully insured investments?

Because we buy houses deeply discounted, or we get them with no-money or lo-money down, the risk on these properties is very low.

We secure your loan with a first mortgage. Secure.

And we insure every house we buy so that if it burns to the ground, you're always made whole. Safe, secure and fully insured.

Never, Never, NEVER say "Guaranteed." Use of the "G" word will get you in tons of hot water.

Now that you know what to say, go say it to everyone. Make a list of fifty people you know, then go talk to them. You'll be surprised how many folks want to get in on whatever you're doing.