Raising Capital

[Matt44]

Can anyone tell me how to raise capital to start investing in realestate? Or how to find people willing to do joint ventures with a novice invester?
Thanks.

 

[GaryMcGowan]

Search the forums here. There is a long list of threads on this topic.
To raise capital one needs to have the experience and knowledge in owning real estate investments. Also you need to be able to prove to other people WHY they will invest/partner with you.
Education first, buy a couple of properties second and learn more, and then maybe look at using partners.
Partners will want to see a track record of your investments. Without one it is extremely hard to find partners willing to give you money, unless its your parents which is always a good place to start.

 

[Thomas Beyer]

QUOTE (Matt44 @ Aug 16 2010, 06:32 AM)
Can anyone tell me how to raise capital to start investing in realestate? Or how to find people willing to do joint ventures with a novice invester?

Thanks.


Why would someone invest with a novice investor ? What special skills or expertise do they offer ?



Start with your own money first .. do 2 to 3 deals .. then invite others to participate !



How to find investors: network, website, advertising, referrals, track record ..



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[wgraham]

The first couple of deals are the hardest....by far. Most novice REI experts don`t make it over this hurdle. Start looking at people very close to you and branch out from there. Read Russel Westcots Joint Venture Secrets. Join a group like REIN. Read EVERY thread on this board. Attend a bunch of presentations from seasoned investors to see how they do what they do. You should pick up a lot from these presentations. Get GREAT at sales. If you are not comfortable with this side of the business then you are a dead duck.

If you can get a couple of deals under you belt then things get a lot easier. Track record is very very important. Don`t screw it up!

 

[Matt44]

Thanks for all the advice. This will help me focus on what I need to do before I trip over my feet.

 

[kboughen]

Some great advice above, here is another option;

It is possible for you to be a great JV partner even if you have no money and no experience. The key is that you bring something to the table that is of value to the other partner, such as;

• Good established credit history
• Stable consistent employment history
• Good income to debt ratios

Combine the above with the willingness to learn, time to invest, and a great attitude and you will find JV partners that have what you need (money, experience and a willingness to teach). Just reach out and start building relationships with the right people and of course do your homework.