FINDING REAL ESTATE INVESTORS
FOREWORD FROM MR. SHIELDS
The greatest obstacle to raising capital that must be overcome is not having a sufficient understanding of what is necessary and required to raise capital from investors. The following will discuss in detail topics you need to understand addressing the gaps in your knowledge. The information in this document should allow you to "create" a plan to find real estate investors and raise capital.
There has never been a better time to raise capital successfully. Most particularly for real estate projects. In fact, for the first time in years, investors are now coming to us asking to be shown real estate development projects, and there is an increasing appetite for quality real estate investments, particularly if secured. In our opinion, real estate is the most conservative investment choice available in today's marketplace. There are millions of Real estate investors with 401k and IRA plans complaining about the 1% return on their retirement accounts. Each one of these individuals has both the resources and potential to be an investor.
Investor Blind Pool: This is to raise money for your project where you do not name property specifics but describe in detail the criteria you will use to select specific properties for purchase.
° What's the deal? What deal can you offer prospective real estate investors?
° Can you offer prospective real estate investors an interest rate return on their investment?
° Can you offer to secure real estate investors funds with the underlying property?
° Can you offer Real estate investors a piece of the profit (backend)?
What is your Investor Profile and Presentation?
- An opportunity for a significantly higher return on their 401k and IRA funds?
- Security - Fully securing their investment funds with the underlying real estate?
- Interest: An interest rate return?
- Profit Participation: A reasonably good piece of the profit (backend) in addition to an interest rate return?
Finally, what is the real estate investor's EXIT strategy? In other words, when can they get their money back? There are several possibilities to create the right exit strategy.