Investing in real estate is one of the most lucrative methods of securing for your future in present times. However, making a smart investment is not that easy because (1) your choice of location and (2) the type of property selected are major concerns. If you are interested in getting a private investor, then consider these two points really seriously. San Diego is certainly a good choice of location for real estate investors, and will surely give you good returns in the future.
The problem of finding a private investor may seem complicated as you think about it, but to find one to fund your home is not that impossible. It is not that there are no private investors in San Diego, there are plenty, but convincing them is the trickiest part. For one, nobody will be willing to invest unless they think it is going to be profitable for them.
Here are some steps to make this simple for you:
- Targeting probable investors – Finding prospects with private money is the most important step. It takes time if you don’t know where to start. You can start by approaching friends, relatives; even doctors, lawyers and accountants are good choices. Especially, people with money and who are interested in investing in real estate.
- Make a covetable deal with them – Once you have an interested private investor, sit down with the person and chart a deal where they provide you with a certain amount of money at a certain interest rate for a pre-determined period. They give you the funds to buy a home that needs repair/renovation. Some people are ready to give 70% of the value (after-repair). You can give them a personally signed promissory note, title insurance policy, first mortgage position or an appraisal for the property. After the repairs, you can share the profits of the sale with them.
- Proper communication with the private investor – The deal should be presented attractively, so the investor will instinctively know what is in it for him. Promise to keep him in the loop and fulfill it. The full package should be made attractive to him. In the sense, you must include your credit report, information on successful deals previously done, employment information, list of assets, and anything to prove your credibility in the ‘package’.
Once you are able to convince a private investor and the deal is arranged, you will realize that this option was actually more feasible when compared to borrowing from a financial institution.