Flipping real estate requires a great deal of upfront capital. For this reason, property flippers usually seek money from real estate investors. Successful property flippers know that real estate investors are an integral part of the process. So much so, that it becomes important to have investors lined up before you find the perfect home to flip. This allows the real estate flipper to focus on the business and keeps the job moving forward. You may even find yourself earning a profit on properties with none of your money down. Keep reading to learn how to find real estate investors for flipping properties.
Look For Experience
First, look for investors with experience in the real estate industry. You need to find experienced professionals before you can begin investing in real estate. These investors will be well-versed in the particular challenges of flipping houses. Look for investors who have several investment properties already. Ask them questions about what type of property holdings they specialize in. These holdings may include multifamily homes or commercial options. Look for an investor who specializes in the niche you are looking to provide for. This way, they will be able to provide you both investment capital and industry expertise. Your real estate investor is essentially a partner. Find someone with similar values who will help you meet your particular goals.
Online Classified Ads
You can also post classified ads online to find real estate investors. Classified ads narrow the investor search to people in your geographical area. This is helpful for weeding out unverified leads. Post an ad in a local online newspaper with the headline “We Buy Houses.” This will connect you with investors in your area who are already interested in providing capital for property flippers. You may also want to include your need for investors in your headline. Be sure that you are specific in your ad copy about the type of investment opportunity you are providing. This way, responding leads are already interested in exactly what you have to offer. Online classified adds help narrow the geographical parameters for real estate investors. Place an ad online to find a real estate investor for your next flipping venture.
Real Estate Investment Clubs
Real estate clubs are a key resource to help you find experienced investors. There are dozens of local, state, and national real estate clubs and associations. Many reputable real estate professionals are members of these clubs and committees. Many of these professionals are frequently interested in selling homes, or working alongside beginning home flippers like yourself. Even if they are not, they can recommend experienced professionals, or put you in touch with private investors. At the same time, these meetings can help you meet experienced contractors or real estate appraisers. In many cases, your basic networking skills and frequent club participation can introduce you to a number of real estate investors. Join real estate clubs and associations in order to find experienced real estate investors for your home flipping project.
Hard Money Loan Investors
Next, you can meet with hard money loan investors. These real estate investors are familiar with securing loans with tougher rates. Typically, hard money loans have higher interest and shorter time frames. Often times, they are called bridge loans for specific investment projects. You should consider with hard money loan investors who specifically work with riskier financing deals. This will allow you to get the funding you need on your next flip. However, you will need to take extra caution about the investing terms, costs and risks.
Social Media Platforms
Using social media is certainly not the traditional way of “meeting” investors but it is a popular option today. Many real estate investors typically make their investor status clear on their favorite platforms. LinkedIn and Facebook are where property flippers will likely find real estate investors, but other social media sites are certainly worth exploring. You will want to join relevant groups on these social media platforms to make connections with potential investors. Additionally, real estate flippers will need to be actively commenting on posts and researching commonalities with potential investors. How to find real estate investors for flipping properties on social media is an effective method.
Property flippers will have to do some homework when trying to find real estate investors. Seasoned investors can offer you more than just their money so consider experience when you are looking for investors. Online tools like advertisement and social media can help you in your search. If there are real estate clubs in your area, you should make an effort to participate in their meetings. They are a wealth of knowledge and may have connections to investors. When considering hard money loan investors, be wary and read the fine print closely. Consider the points in this post if you are currently wondering how to find real estate investors for flipping properties.