Hello, this is Dave from TitleSearch.com, and in this video, we’re addressing a common concern among our real estate investor clients – how to secure funding for your real estate ventures. For many first-time or newly minted investors, obtaining financing for deals can be a challenging hurdle. Today, we’ll explore a strategic approach to navigate this obstacle and win the confidence of potential investors.
1. Action Speaks Louder Than Words: The Power of Demonstrating Deals
Forget the conventional business plan, at least in the initial stages. Investors interested in committing significant sums of money to your real estate deals want to see more than a theoretical plan – they want to see action. The best way to showcase your capabilities is by taking concrete steps toward real deals.
2. The Virtual Deal: A Blueprint for Success
Start by engaging in virtual deals, providing a tangible demonstration of your approach to making money and generating profits. Here’s a step-by-step guide:
- Foreclosure List: Obtain a foreclosure list from reputable sources like foreclosure.com.
- Property Selection: Identify three or four properties of interest.
- Due Diligence: Conduct thorough due diligence – take pictures, assess property conditions, and pretend you’re actually buying the property.
- Title Search: Perform a title search, negotiate any liens with lien holders, just as you would in a real deal.
- Auction Participation: Attend the auction, take notes, and find out what the property bids for.
- Post-Acquisition Observation: Track changes to the property over time – repairs, renovations, and more.
- Real Estate Listing: Finally, find the real estate listing for the property to demonstrate the full lifecycle of a deal.
3. Showcasing Profit Reality, Not Just Potential
Present the actual results to your potential investor. Showcase what the property was purchased for, the investments made, and the final selling price. Essentially, bring to your investor not just the profit potential but the profit reality.
4. Time is On Your Side: Invest in Your Future
Acknowledging that this process may take a month or two, remember, time will pass regardless. By dedicating the next few months to action, you’ll have a powerful package to present to angel investors or mentors.
5. Financial Investment: A Show of Confidence
Yes, there might be some costs involved – a few hundred to a thousand dollars for lists, due diligence, title searches, and inspections. However, this financial commitment demonstrates to your investor that you’re willing to invest your own money, take calculated risks, and showcase liquidity – a critical factor in gaining investor trust.
6. Log Your Efforts: Building Confidence in Your Actions
Keep a detailed record of your activities, including the hours spent on each aspect of the virtual deal. This log serves as evidence of your dedication and commitment, assuring your investor that their funds will be managed wisely.
Crafting a Comprehensive Portfolio for Investor Confidence
In the world of real estate investment, action speaks louder than words. By investing time and resources in virtual deals, you not only gain valuable insights into the intricacies of real deals but also craft a comprehensive portfolio showcasing your capabilities. When the time comes to approach investors, you’ll have more than promises – you’ll have a tangible demonstration of your commitment and competence.
Connect with TitleSearch.com for Real Estate Insights
If you have further questions about real estate, title searches, or foreclosures, reach out to us at TitleSearch.com. We’re here to assist you on your real estate investment journey.