Thread by @joecassandra

T#10
HOW TO FIND SOMEONE TO FUND YOUR FIRST REAL ESTATE PROPERTY 100%

I posted how to find your 1st real estate deal.

But how do you get cash for it?

I've used hard money, private $$, banks... Private money is less headaches & faster

Follow along 👇

https://twitter.com/joecassandra/status/1405352303129939973

2/

You could obviously ask family/friends you know

The person funding will have 1st position on the lien & should be paid a higher interest rate than a bank. (right now, we're paying 8-10%)

Key is you refinance out of the high interest 6-12 mo later

If fam isn't an option
👇

3/

Next, it's time to hunt

Here's the BEST ways I've found to raise capital (this is different than if you're raising millions for a commerical. That's more complicated. Just talking about single/small multi)

Our folks typically like their money back & not locked up for years

4/

#1 Get involved in the real estate circles. Use Biggerpockets, Facebook groups, and REIAs to meet folks. Usually, you'll find some older investors happy to start lending

That can take some legwork

Here's a faster way

Just be ready to use the phone and computer

5/

This is a cool method I've never heard anyone use

Here you go

Scour homes on the market on Zillow/Redfin. Look for properties that are being flipped or 'investor specials'

Write all flipped and investor properties down

6/

Now, you could jump right to calling the agent on the record if you're impatient

Or you can be more targeted

Put all those properties into Propstream (a paid service $97/mo...worth it) & it'll pull up the owners of the property

Make sure if it shows the property sold
else

7/

You'll need to dig into the county deeds searches to find the new owners

Once you find the owners

#1 You want to see a property in an LLC (that means they're experienced)

#2 You want to see they've been incorporated for 5+ years (10 better)

8/

Call those houses. If an agent picks up (and they aren't the owner), it's a waste of time. Instead, find an email address for the owner and shoot them an email.

If the agent IS the owner, time to chat them up

First

9/

First, don't be a pushy d-bag, you're there to learn

#1. Ask them if they have other properties they've bought they don't have time to flip

#2. Ask them who they recommend for funding deals

"I fund them myself"

You: "Do you ever lend to other investors?"

10/

Here's what you'll find. Flippers get tired. If they've done it for 10+ years, they're always looking to take a break

If you can provide them income without them having to actively flip, you'd be doing them a favor

11/

Build a relationship with the person. Take them out to lunch. Talk about what you're working on to find deals. They're feeling you out to see if you're serious, not a dope, and have some idea about real estate

If you can provide value to them upfront, that helps too

12/

Our first private lender, we hired him as the realtor to sell our house. We did all the work, all he had to do was put it on the MLS and collect $7k in fees

If you don't have a house, find another way to provide value.

13/

It may not happen overnight... but if you do indeed find a good deal (esp in this market), they'll want to jump in with you

Just make sure you find a good deal. It can take time. In the meantime, keep in touch with them and let them know they'll be the first to hear

14/

Takes time, some guts, but it makes it easier to go out there and find a deal if you are worried about how to fund it.

Keep searching and networking :)