Wife and I Are Just Starting Flipping Houses
We need investors to help us in Muskegon, Michigan to buy the houses that we found.
We are doing wholesale right now but want to start flipping houses.
Answer by Joe Trometer
Thank you for your question, I can appreciate your enthusiasm to get started in flipping houses.
It's an exciting business to buy, restore, and sell homes! Done properly with a solid business plan can be highly rewarding in personal gratification and exceptionally high profits (profits are not guaranteed of course).
You haven't yet given us much information to help you completely.
"We Need Investors", I get that! I get that question the most.
So, is the real questions, "We Need Money"?
Investors are the people or companies that have money to lend.
People that want to borrow money usually get a personal loan.
Businesses that need money qualify for a business loan, sometimes with investors.
There is a difference in the type of loan you may be looking to acquire
depending on how you want to scale your flipping houses interest.
The simplest and fastest way (the old fashion way going way back in history),
are to buy a Home or 2nd Home that is a fixer-upper where you would qualify for
a personal home mortgage,
at the lowest interest rates,
and reasonable contract terms available.
The draw back to the "old fashion way of real estate investing" would be having to move into the home and,
move out of the home upon sale…
Into another fixer-upper house, then repeat.
There is much more to that process and some simple training for that tried and true method of investing in houses.
Let's move on to your original question
"We Need Investors"
In order for an investor to take interest in you…
You might want to make,
• Your business plan attractive for an Investor so they can see their Return On their Investment - ROI
• How secure their investment would be, investing in You.
• How much Time, do you need their money for, to complete your project? The investor will want to know when they will get their money (and profit) back from you.
That would be some homework for you to prepare,
to present to Investors,
when you find them.
There are many types of "Investors"
• Family, Friends, Relatives, Co-Workers, Neighbors
• Mortgage companies, Banks, Credit Unions
• Angel Investors, Rich People that lend money, Investment Groups
How do you find investors?
Since you said that you, "Wholesale Houses"!
You might consider using, the same marketing skills you already have, to find Investors.
• Social Media – LinkedIn especially – lot's of investors there!
• Local Investor Groups
• Email Contacts
Similar marketing rules apply.
Instead of looking for Buyers to wholesale houses to,
You’re now looking for Investors to lend money on the houses you find.
For the Long-Term
Setting up a business entity like an LLC, or a Corporation, Please consult your attorney for all legal aspects of your company and the contracts you enter into with investors.
If you have a business entity, there may be new opportunities working,
Business – to – Business
Versus working as individuals, with private lenders, and lending institutions.
NOTE: THIS IS NOT LEGAL ADVICE, PLEASE CONSULT LEGAL COUNCIL ON THIS MATTER OF REAL ESTATE INVESTING, FLIPPING HOUSES, BORROWING MONEY FROM INVESTORS, etc.
I hope this helps you out some :-)
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Go ahead and hit the Like button if you like this - Cheers, jt