Creative Real Estate Investing Questions from the Blog
If you ever have a burning creative real estate investing question that you NEED answered, all you have to do is click the Ask the Expert link. Please don’t take offense if you send us a question, and we do not get back to you. Just submit it again. We get a ton of emails and do the best we can.
I thought I would answer a couple questions that have come in recently. Sooooo, here we go . . .
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Hi Patrick,
I am here in Detroit, Michigan which is a potential goldmine. Houses that were selling 1 year ago for 100,000 or more are selling in some cases for $10,000 or less (in good neighborhoods). I have a lot of Customers that want to buy these houses but lack the cash to do so. We have a small but picky group of private investors my business partner found when I met him. I have been unsuccessful in finding investors of my own. What would be the best way to attract private investors in the above scenario? What do you think?
Doug,
Sounds like an unbelievable opportunity! We have a ton of content on the site that will teach you exactly how to get private money for your real estate deals. And in the price range that you’re working with, you’ll have private money lined up in no time.
Here’s a list of resources:
Private Money Blueprint Video Series: Video 1, Video 2, Video 3, Video 4, Video 5
Free eBook and private lender PowerPoint presentation on getting private money
Here’s a couple articles as well:
3 Types of People Most Likely to Invest with You
3 Vital Keys to Getting Millions in Private Money for Your Real Estate Deals
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Hello Patrick!
This is Sergio from Albuquerque NM you guys really do have the best damn real estate blog on the web! Ive gone to several RE sites most are ok some are pretty good but you guys pack soooo muuuch solid content, info, tips, ideas, suggestions that are new and current to the changing market and not a bunch of rehash junk . . . its hard to believe its FREE!!
So here’s my question..are you getting any feedback from your students or new private lenders that you spoke to who have taken hits from their investments from the recent market crash, who are hesitant about investing in real estate because maybe what they heard in the media about the down real estate market? If so . . . how do counter this?
Should I be targeting people with deeper pockets versus the middle age moms & pops who all they have is 60k in a CD/money market,etc? What should my criteria for these deep pocket investors be? Any ideas or suggestions would be much appreciated. Thank you very much and keep up the great work!!
Sergio,
Great questions. And thanks for the compliment on the blog as well!
First, let’s cover people being hesitant to invest in real estate in today’s market. No matter what kind of market we are in, there are always going to be people that are hesitant to get involved in real estate. A few years ago when houses were selling the day they hit the market, I talked to plenty of people about our investment opportunities who weren’t interested. Your job is to find the people who will invest with you as soon as they know about and understand your investment program. They’re out there!
If you’re looking for private money and get the objection about the terrible real estate market, I would simply say, “It’s actually a better time right now to buy property than it’s been in a VERY long time. if you think about it and compare it to stocks, when is the best time to buy stock in a company, when it’s at an all time high or when it “crashes”? It’s the same way with real estate, since we’re in a down market, it’s a great time to buy property. We’re picking up properties right now for pennies on the dollar.”
If they are still hesitant, NEXT. Move on to the next prospect.
Moving on to your next question, Sergio . . . should you target people with deep pockets or the mom and pops.
It’s going to depend on what price range your homes are in. Most of the homes that we’ve purchased over the years are in the $100K and $200K range. I have always been very successful at getting private money from everyday people. Your average engineer, mortgage broker, real estate agent, teacher, etc. Most of our investors do not have deep pockets.
If you go after people with DEEP pockets, they may expect to have some kind of equity position in the property. But do not make that assumption. That could cost you. When presenting to this type of person, you’ll probably want to have your purchase and sale contract with you, a CMA or appraisal, and a scope of work (if repairs are needed). Make sure to clearly lay out the investment details as well. And don’t be suprised if they ask for more information.
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Remember, if you have any questions, Ask the Expert!
Tags: creative real estate, creative real estate investing, Private Lender, Private Money, real estate investment financing, Real Estate Investment Financing Strategies
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Patrick Riddle:
Dusty Keefe:
How about AZ right now. In the South Phoenix area you can buy a home for about $125,000, 3,000 Sq. Ft. and make some good money in the next few years. Prices are so low and banks are giving them away.
If you have god credit, cash, etc. etc., then just get a loan and go for it.