Need Funds To Buy Auction Homes

I just got back from the courthouse and bought a bran new 2700 sf, 5 bed, 3 bath home in a nice subdivision for 160K. We have will have it in escrow shortly for 225K!

My problem? I am out of cash! My partner and I bought and sold 8 homes in the last year and there are many other deals we could be doing.

I need other people’s money or a fund! In am in California and in our state we need to have all cash to do these deal.

Can anyone refer me to a hedge fund, private equity fund, etc that is interested in putting up the money for a share in the profits?



When you understand the phrase below you can start your own.

Regulation D rule 506


AmotoXracer is not being flip. The laws around soliciting funds from investors, putting a fund together and similar are very strict. If you cross the line, you can face severe penalties. Ignorance of the law is not a defense in this area. The laws are designed to protect naive people from promoters.

Get to know the other bidders. If you need to go to a different area where you are not competition, do so. Look at who is buying in the county records. You can tell if there is a private lender or similar. Go to RE investment clubs and ask there. The older, more experienced investors will start to be less active and they will start to fund other investors who do not mind putting in the time.

Be prepared to share details on past deals. Have a document that shows what you bought, when you bought it, what you did, how you sold it, what you made and any other evidence that highlights your track record. You need to sell yourself and your ability to the investors. Expect to give away a lot of the deal initially. You are building a track record and establishing trust. If that means you need to do a few deals where you really do not make much, so be it. If you think about it, the fact that you make anything is you being paid to demonstrate your track record rather than paying fees to money brokers.

Avoid money brokers who want fees upfront. They can be paid when they deliver.

In CA you can speak to mortgage brokers as some will have private sources of funds.

Ed Garcia the moderator of the Financial Portion of this website might be a good contact.

He is in CA, is a financial CEO, hard money lender, etc. Might just fit your needs or could refer you.