Many would-be real estate investors never get started in real estate investing because of a simple but highly problematic and incorrect preconceived notion. These would-be investors believe that they have to have their own money in order to make money in the real estate market. Of course, if you have your own source of funds, it does make the process much more flexible and you may have more options when it comes to deciding what type of real estate investing you want to do. However, if you do not have your own funds (or just prefer not to use them), then you simply need to find a source of funding for your deals.
A great option for funding is to find one or more cash investors who will “spot” you the money to do your deals in exchange for getting a portion of the proceeds. There are many different ways that you can find cash investors. Here are 3 popular and successful methods for doing so:
1. Use Bandit Signs
Many investors use bandit signs to find motivated sellers, but they are also a great way to find cash investors. Place signs in locations with high traffic and make sure that you are specific about what you are offering: great deals on properties! Also make sure that the signs have a good way to reach you so that you do not miss any connections.
2. Advertise in Print
Real estate investors read the classifieds, so make sure that you are making your presence known there! Running a long-term ad that lets cash buyers know that you have properties available at a discount is a great way to build up your contacts in this arena. An ad listing a particular type of popular house – e.g. in many areas, the 3BR 2BA is the “bread and butter” home that all investors are looking for deals on – is a great way to attract attention, and even if that given home is already under contract, you will still have contacts for the next one.
Good real estate investors always work hard to make connections. Local real estate investing associations (REIAs) are a great place to locate cash investors. Make sure that you are attending local meetings and doing everything possible to make connections with investors and people who know investors to help build your list of cash buyers so that you never have to wait to sell a property.