How do I find a private lender/investor? - Posted by Frank A

import · August 5, 2003, 9:27pm

Posted by Michael on August 10, 2003 at 22:01:56:

Joe:
Could you please send me a sample of your prospectus to send to a few lawyers, accountants and/or any potential investors.

import · August 5, 2003, 9:27pm

Posted by Frank A on August 05, 2003 at 21:27:05:

Hello and thank you for taking the time to read this and possibly help me.

I have gone through about 35 delinquent tax properties and finally found one that I feel has a great ROI potential. I lost out on this property about a month ago because my bid was too low but the guy who had the accepted bid, couldn’t get financing so it went on the market again. In my second attempt to secure the property, I was happy to have had my bid accepted. Woooooohooooo! Now for the hard part.

The property was successfully bidded for at about $10,200 and needs about $8-$10,000 in corrective codes and upgrades to make it livable again.

The ROI is between $20-40,000. Properties in the area comp out at arounf $54K-60K.

I would like to find a private lender/investor who would front the securing funds as well as the rehab funds. I would do most of the rehab work or sub-contract it out and then resell the property in a neighborhood that is on the upswing and real estate is hot. I would like to split the profits with this private lander/investor. He would get his initial money back plus between $10-$20,000.

I could take my share and being the process all over again.

How do I go about finding such a person to help me??

Thanks again in advance for any suggestions.

Frank A

import · September 5, 2003, 7:49pm

Re: How do I find a private lender/investor? - Posted by Damion Taylor

Posted by Damion Taylor on September 05, 2003 at 19:49:34:

I, Damion T. Need a investor to open up a clothing store. Downtown Atlanta Ga. Opening up this store is very important to me, you can help me please call me.

Thanks you,
Damion T.

Home: 770456-8280
Cell: 404-325-2777

import · August 6, 2003, 1:43am

Re: How do I find a private lender/investor? - Posted by Joseph Zimny

Posted by Joseph Zimny on August 06, 2003 at 01:43:50:

Frank,
When I was in your position starting out at REI, I adopted a proactive strategy to get the word out among the community about what I need and what I was offering. It is simply a case of marketing yourself and the opportunities you find.

I maintain a database of accountants, lawyers, doctors and dentists. I fax out letters to a select individuals where I spell out the terms of the deal, the cost, the financing needs and what they stand to return if they participate. I get at least 2-3 interested investors each time I do that. I now have a core group of 8 investors who work with me.

If I were starting out again I would get a phone book and just start going through it. I would call some of the reputable lawyers, accountants, dentists and doctors and get their fax number (get it from their receptionist). I’d send out a brief 2-page prospectus to them by name and offer them the opportunity to participate in the venture. I’d follow the fax up with a phone call within 24 hours to ask if they’re interested in considering the proposal. From experience, I know that some of them will respond.

This is basic salesmanship. You’re selling yourself and the project. Make money for someone once and they’ll be your partner from now on.

If you e-mail me directly, I will send you a sample of the two-page prospectus that I use with my investors.

good luck.

Joe Zimny