Where can you find real estate investors for that fabulous apartment building you own? The ten million dollar question can be easily answered, but the answer you receive will require hard work, networking and a lot of leg work. Real estate investors are not out door knocking, he is never where you might think he will be, but there are many ways to find that perfect investor for your apartment building, if you are willing to follow this business plan.
- Real Estate Investment Clubs. One of the best places to find real estate investors is to search at every real estate investment club in your area. The clubs are full of investors with cash and potential. Selling your ideal to them is the best way to find real estate investors. Real estate investors are "dying" for a fabulous deal and of course can tell you if your deal is good or not. Many sellers fail to realize that the property they own may not be a "win-win" situation for an investor. Take into consideration that investment properties need renovation, closing cost, new loans (in most cases) and then to be flipped (re-sold) to a new potential buyer or used as investment rental property. The investor will want to see a 10 to 25% profit over the year.
- Real Estate Companies. The second best place to find real estate investors is at your local real estate office. Remember that there are many Brokers and Realtors who are in the market for below market properties. Below market properties means more than a property minus the commission cost of a Realtor, it must be a lot lower to be considered a "great" deal. If the Brokers are not interested in your property, they may know of an investor who would be or a client. Note: Any Realtor who purchases your property must place a contingency at the bottom of the contract that states (example only): Property is being purchased by a licensed real estate agent and said agent is purchasing the property below market value with the intention of making a profit on the sale of said property.
- Banks, Mortgage Companies and Financial Corporations. The third best place to find real estate investors for your property would be at banks, mortgage companies and financial corporations. These companies work with investors daily and will have list of potential investors. Getting them to work with you is the trick and promising them the loan is step #1 in networking. Remember to make the bank want to help you.
- Newspaper Ads and Bulletin Boards. One of the most expensive ways to find real estate investors is through newspaper ads. Most ads will bring only agents wanting to get your listing. You may find an occasional investor, but be prepared to spend money to make money. Newspaper ads are not cheap. Do not be ruff with agents when she calls you as she may know of an investor. Agreeing to work with an agent who brings you a viable deal is a smart move. There is no need to sign a listing contract until a contract is presented. Grocery stores, pizza shops and restaurants all have bulletin boards. Placing a 3 x 5 card at these places will be free advertising. Always plan on as much free advertising as possible. Think of free newspaper ads also. Every town has a "thrifty nickel" or some similar name around.
- Open House Signs. Having open house is possible on a single family residence, but not on an apartment building for sale. Most sellers would not want to alarm the tenants in the building. If this is a vacant home or single family residence, having an open house may help you find a real estate investor who loves the neighborhood and can see the possibility. Make sure to make up a hundred or so of flyers with your name, address, picture of the home and your phone number to give out to the investors and Brokers who attend your open house.
What Others Are Reading Right Now.
Acting, comedy and strong spirits converge in Speakeasy. When host Paul F. Tompkins interviews entertainers—Key and Peele, Alison Brie, Rob Delaney, Zach Galifianakis—about all sor …
10 Things Women Expect Men to Know How To Do
To make ladies swoon or at least not cringe, you’d better be able to handle the following…
Speakeasy: Jonathan Banks
The Emmy-nominated Breaking Bad star talks Beverly Hills Cop, Wiseguy, sitcom work and his new flick with Danny Trejo, Bullet. Oh yeah, a few Mike Ehrma …