OPM or where to find people with money ready to be invested?

[Arnold321]

Hey boys and girls.
First of all sorry, if my theme is shown in other thread (i couldn't find it).
The main thing why i am posting this thread is that i went to a real estate seminar, i've learned some good things, about OPM. The only, and most important question was how can we find those people? I didn't get answer to this question. So i write here. I know there are quite many Real estate sharks, could you please share this info on how to start finding those people ?

The reason why i want to start doing this, is because i know an area, where the rent has grown enormously in the last 2 years. The government is crying "we need more houses", but nobody is building them. And i found out that there are many houses which are standing in dangerous condition, some are abandoned.

So voilia, there is a niche, buy them repair them, and resell or rent. I myself am a construction engineer and a builder, so i know how to repair them, the biggest issue is i DONT have money to buy them. I've made a research, if only i had a house, i could sell it in a blink of an eye, even before i made any repair to it. So my question is - WHERE DO I FIND INVESTORS? Banks don't speak to me, because i am living in another country, i got no credit history in there. Some of my family members live there, that how i noticed this issue. Any ideas? Please, share. Thank you.

 

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[ZCP]

Get the word out.
Show a track record on something smaller.
Go to every banker. Present your plan. Ask if they 'know anyone'.
Do not be deterred. Thank them for 'no' and ask if you can call on them in the future.
Post ads.
Hustle.

 

[Arnold321]

Thanks ZCP. Much appreciated!

 

[Mr4213]

Go to REIA meetings. Find where they congregate and network with them.

 

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[Mr4213]

Also here is just a thought that ran through my mind.

Maybe if you already found a house. Demonstrate sound reasoning for why you can turn a profit on it.

And THEN approach asking for a investment.

That would speak far more than "hey if I found a house will you give me money. I promise I can sell it in the blink of an eye."

 

[GuestUser450]

Search the BiggerPockets.com forum - lots of helpful info re: private money, etc.

 

[Arnold321]

You mentioned you're out of the country...do you plan to move here during the project?

If not, how are you going to find a house? How are you going to analyze the deal to ensure that it's any good? How are you going to do the due diligence? How are you going to find contractors? How are you going to manage the rehab? How are you going to pick materials? How are you going to market/sell the property?

Yes, my plan is to move there during the project, otherwise it would be impossible to do anything obviously.
The only trick about advertising everywhere, in my opinion, is that if I do that and tell everything clear, open all my cards, the people could easily take over and do this without me in the game, so they could take more profit.
Other than that, thank you for all the tips, especially about the REIA meetings and biggerpockets.com, I didn't know about them.

 

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[SteveO]

The reason why i want to start doing this, is because i know an area, where the rent has grown enormously in the last 2 years. The government is crying "we need more houses", but nobody is building them. And i found out that there are many houses which are standing in dangerous condition, some are abandoned.

One thing that I have found is that during good times, opportunists flock to these types of areas. Why is this not occurring? Is the location under the radar for some reason?

I like to invest in areas that have temporary glitches while recognizing the fact that it will come back. That way I can get the price and have time to work on in while the cycle fulfills itself.
OPM is a catch 22. People don't want to invest with an unknown entity until they have proven themselves. Once you prove yourself, you don't need the money as much. Show some successes and the money will come easier.

People are generally busy in their lives. They are not likely to jump up and go to an area to invest without help. Unless they feel they could do as good of a job as you can.