Where to Get “Private Money” For Your Real Estate Deals
Need Some Private Money to Do Some Deals?
So you want to do a real estate deal in the Upstate, but don’t have your own cash, or don’t want to use the cash you do have?
No problem! Start with this simple strategy.
Start with existing real estate investors who ALREADY get the ‘game’ of real estate. No better place than your local Upstate Carolina Real Estate Investors Club (UCREIA) right here in Greenville, SC.
At first, if you waste your time going to doctors, lawyers, and other people with available cash but who don’t’ know the real estate investing private money game, you’ve got far more hurdles to jump over trying to convince them this a good idea than if you start with someone who already understands how the process works and is already actively investing in real estate.
There’s much more to this strategy than these few steps…but you can start here. More
1. Find out the names of 5 (minimum) existing Real Estate Investors right here in the Upstate of beautifull South Carolina. Whether in Greenville, Clemson, Spartanburg or whereever. They don’t have to be in the exact town you’re property is in, but generally here in the Upstate is fine.
Find investors who meet 3 or more of these criteria:
a. They’ve done 10 or more investing deals here in Upstate, SC
b. They own or have owned 10 or more rental properties
c. By all accounts they’re pretty knowledgeable about REI and doing well as full time investors
d. They are currently Very active in doing deals
e. They’re retired from active investing, but are just managing their portfolio of rentals
f. They’ve publicly stated that they are experienced and have money to put up for deals
Start asking around to other investors you know, talk to the seasoned members of UCREIA, like Bill Clark, Chad Carson, Karla Kuhn or any number others ask them who the serious players are in town.
Make it a point to gather as much info about these people as possible, even to the point of meeting them for coffee or something. (don’t approach them about PM now though, don’t even mention it. You’ll screw the whole thing up)
Your objective now is just to scope out who’s in the game in your area and start the beginnings of a relationship.
2. Once you’ve put together your 5 or more person database of prospective investors move onto pre-step 2.
Identifying What You Bring to the Table:
What is it that you’d bring to the table in a Joint Venture with a private money person?
- Are you great at finding deals?
- Evaluating deals?
- Doing research and due diligence?
- Finding buyers?
- Finding sellers?
- None of the above but you’re a eager hard worker who’s a quick learn?See, you’ve got to establish What YOU bring to the table before you can convince someone else to put up $50grand to do a deal with you.
Don’t skimp on this, spend some time, evaluate what you know you can do. It will eventually be key in your approach to your Private money partners.
That’s enough ‘homework’ for now. If you’re not a member of Upstate CREIA, than consider joining, if you are, come to the next meeting and start asking some questions and doing your due diligence.
Do this before you go out and spend tons of money on courses and training, when you get good at this level, then you can move on to more advanced and complicated strategies.
All the best!
Norm Reid
This article is brought to you by the Upstate Carolina Real Estate Investors Association. (UCREIA)
Information about UCREIA’s Educational programs can be obtained off this website or by contacting the club’s Dir. of Education, Karla Kuhn
Norm Reid is a local investor in the Greenville, SC area and member of the UCREIA board of directors. He is a well known National interviewer of real estate professionals from around the country. You can read more about “Getting Private Money” at one of his websites.