Having hard cash but wanting something to do with it???

[Darren Nardo]

Hellloooo!

I’m looking for advice.

I’ve been talking to a few people about this but not many have the best answers and if they do it’s the same. I have hard cash and I’m looking for something to do with it to take me to the next level. Having common sense I figured I’d just meet people or friends/family who want to get invested in real estate. I am talking To them about using their money for purchase price and my money for rehabs. The problem is most of the people I’m meeting with don’t have money to buy cash and a lot of property around is being bought all cash.

Does anyone have other ideas of ways to get into real estate using hard cash. I feel like if I keep looking and networking, I’ll eventually find someone ready to go. But until then I figured I’d try this for people’s opinions.

[Greg Dickerson]

I would not recommend flipping, using hard money or private money to flip if you’re just starting out especially if you have limited funds.

Hard money Is very expensive, you will need a down payment if you’re just starting out and you need reserves to pay for your mistakes and cost overruns. The interest carry will eat your profits fast especially if you struggle to get the project done and sold quickly.

The easiest way to get started in REI is by wholesaling (which is the assignment of a contract) Once you have done several deals, gained some experience and have set aside some cash then you could try a flip or other strategies. For now I recommend you focus on getting really good at finding buyers and finding good deals.

First step is to make sure you understand the laws in your area regarding wholesaling which is the assignment of a contract and double closes. Several states have passed laws calling wholesaling brokering and are requiring a real estate license to wholesale.

You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws. They will also have the proper contracts as well.

Next you need to educate yourself on the business and your market. You really need to immerse yourself and learn all you can. Attend REI groups and meetups and network with other experienced investors.

Start with finding cash buyers. You want professional legitimate cash buyers so you know you can close on the deal and do what you tell the seller you will do. I can’t emphasize this point enough. You do not want to contract a property unless you know you can close it or take it down yourself.

Different types of cash buyers are flippers, buy and hold, subject to and lease option. You need to find several of each of these types of buyers and learn what they are looking for.

Best way to find cash buyers is networking at local REI meetups, masterminds, Facebook groups, Realtors, title companies, closing attorneys, property management companies, auctions, Craigslist, and bandit signs.

You can search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties. You may need to search by the address of the buyer as they may change their name or the name of the entity on each purchase. You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.Best way to find motivated sellers is to purchase lists and compile lists from city and county for 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, high equity, etc. and mail or cold call.

Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, foreclosure sites, put out bandit signs, billboards, newspapers, other offline publications.

You can use pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online and social media.

Bottom line is consistency. You need to take consistent focused action every day, answer the phone when it rings and follow up and follow through.