Real Estate Investing 101: How to Find Investors
It took me just 3 years to build a multi-million rand real estate investment business. My secret?
Never put any money down for an investment property. When I say this to beginner real estate investors, I’m almost always met with a barrage of questions. How can you invest with no money? Who pays for your investment properties? Is that illegal?
If you ask any successful real estate investor, they’ll tell you that they find other investors to partner with. This is the most effective way to reduce your risk while investing in a large number of high-quality properties.
There are many types of investors to partner with- family and friends, other real estate investors, angel investors, real estate agents, real estate investment groups- the list could go on.
However, if you don’t know how to find them, this can all feel like a pipe dream. Here are the top 4 ways to find investors:
1. Network
I can’t suggest this enough: network, network, network. If you look at any of my social media pages or the comments section of my blog posts or YouTube videos, you will often times see many of the same names. This is because I have a large network of fellow real estate investors, agents, property managers and angel investors. The larger your network, the more potential investors you may know! I have partnered with both people in my immediate network, as well as people I have met through these connections.
2. Reach out to people you know
Have you ever heard of your “warm market?” The business world uses this term to describe potential partners who you already have a close rapport with. This includes friends, family, co-workers and neighbours. While there are pros and cons to partnering with those in your warm market, one thing is for sure: it can be the fastest way to find investment partners.
3. Social media
We live in the age of social media! Everyone has a social media account of sorts- Facebook, Twitter, Instagram- and they’re all showing off their lives. I don’t say this as a bad thing! Social media is a great way to identify potential investment partners in your area. You can see who has the money to invest, as well as an existing interest- if not experience- in the real estate industry.
4. Property Stokvels
Property stokvels are full of people with the means to save money, but these groups oftentimes lack a real estate investment expert. By partnering with property stokvels, you can help them find deals and they can help you invest in property.
If you want to invest in real estate with no money down, it’s imperative that you partner with an investor. However, keep these key takeaways in mind:
Partner with people on a property by property basis
Only partner with those who know the real estate industry
Only invest with people you have built relationships with
While it may sound daunting, partnering with investors is the best way to make money fast with real estate investment while reducing risk and increasing your ROI. Ready to get started?