How do you find investors to back your purchases - Posted by Stuart Neil

Posted by Joe Kaiser on November 29, 1998 at 23:11:39:

Stuart,

In simple terms, you put a deal together with the expectation of selling it to a wholesale buyer (quickly = cheaply). Think it through and be smart enough to take care of whatever problems your “flip” will have to deal with.

Now, offer it for sale. You don’t run “investor wanted” ads or call on ads to find investors, you sell cheaply, they come out of the woodwork and you simply make a list. Next time, you just go down the list. Easy.

Tie it up, flip it quick and you’re on your way. I’d say you’ve easily got room for 10k or more here. Plus, I’d build in a discount on the carryback, those wholesale investors like to fix up and sell for cash, meaning she’d likely be paid off in no time. Figure out a way to get a “early payoff” discount in there and figure out a way for it to end up in your pocket (the tricky part . . . but not too tough) and you’re set.

Joe

How do you find investors to back your purchases - Posted by Stuart Neil

Posted by Stuart Neil on November 29, 1998 at 21:48:55:

I have a lead on a property that is about to be forclosed on. The lady will let me pay her over time for her equity, but the bank does not want to let me assume the loan (and I could not anyway do to past credit issues). The ammount due to the bank is about $68000.00. The appraised value of the property is $108,000.00. This seems like such a good deal, but I don’t know how to go about dealing with a bank that will not deal. I need to find a investor to back this deal. Any Ideas on what or how to go about that?

Thanks,
Stuart

How generous is she? - Posted by Bud Branstetter

Posted by Bud Branstetter on November 30, 1998 at 10:49:16:

Not to be callous but her equity is zip if the bank forecloses. Another approach to finding an investor to cash out the bank is to let the lady bring the loan current. Your option consideration would be the exact amount needed. She moves and you find a tenant/buyer that covers your outlay and cashes everyone one out in the future. Then there is also the catch up and put in land trust approach.

Would you be greedy if you wanted a 20K profit for your participation in this process? I don’t think so. But leads are like dreams until you make them real.