How to Use Friends and Family for Real Estate Investments
If you are looking for joint venture partners or investors to invest in your real estate deals, you just have to go out and you have to start looking for them. The obvious place to look for real estate investors is through friends, families, and coworkers.
Now, this sounds probably very weird to you that you would be going to a friend or to a family member to ask them to be your joint venture partner or ask them to invest with you in a real estate transaction because you’re worried that if anything goes wrong, you’ll never be able to see them again. You’ll never be able to talk to them. They’ll be very upset.
Maybe you don’t want to get family members involved in your real estate transaction. The other side of it is a lot of them may not want to do it. They understand what you are doing, but for some reason, they don’t want to invest in your success. Even though you might have a track record of very successful transactions.
The other side of investing is that people are upset if you don’t ask them to invest.
For example, I had a bunch of people that I used to work with, and they knew that I was investing in real estate. I also was still doing my IT consulting on the side and my co-workers found out I was investing in real estate and they said, “well, why can’t I invest with you? What would I do to be able to invest with you?”
If you let people know that you are investing in real estate, there is a chance that they are going to start approaching you about your investment opportunities
Especially if you maintain a fairly high profile about what you are doing.
A lot of people, don’t want people to know that they are investing in real estate. They want to keep it very hush-hush. To me, that is not the thing to do if you are trying to scale your business very fast. Especially if you want to invest in multiple properties.
The way you invest in real estate and grow your portfolio really fast is by bringing in third-party investors
These people are out there. These people are looking for your deals to invest in.
Another place you can go to find real estate investors is through the local real estate investment associations. These are real estate groups that meet regularly.
There are a lot of people out there with a lot of money who are looking for a place to park their money that is safe, secure, and that will give them a good return.
Real estate is probably one of the best ways to do that. Even in times of uncertainty. If you hold onto real estate long enough, it will give you a good return. Some people may not like that they have to stay in the deal a bit longer, but that’s because real estate is cyclical. You just have to understand where you are in the market and what location you are investing property in. But that comes with experience.
Experience is what people are looking for you to provide.
You will be the person that will be doing all the heavy lifting, going out, finding properties, making sure that everything’s in place to do the deal, whether it is a fix and flip, whether it’s a rental, whether it’s a rent to own.
All an investor would be doing would be investing cash and writing a check for their portion of the investment.
