If you are reading this, there’s a good chance you are wondering how to find real estate investors. It doesn’t matter if you are a wholesaler or a flipper, you will still need a network to sell your investments.
This article will tell you how to find investors for real estate and understand why real estate investors are so important.
Why Do You Need to Find Real Estate Investors?
If you want to sell a property quickly without all the associated hassles, you need to look for real estate investors.
Real estate investors understand the system and know how to expedite the purchase process. In many cases, experts close property deals in as little as three weeks.
When selling to a real estate investor directly, you typically don’t have to worry about conducting any major renovations on the property.
Why Finding Investors for Real Estate Can Be Beneficial
On one hand, real estate investors are generally ready to buy your property with their cash. For the most part, these investors don’t have to pause a real estate deal while getting approved for a loan, which, in turn, means you get paid quicker.
Investors are always searching for real estate investment opportunities to grow their portfolios and reach their investment goals. Considering that there are usually more sellers than investors, it makes sense to reach out to the investors.
But exactly how can you find and connect with these real estate investors who are ready to buy your property?
How to Find Investors for Real Estate
When it comes to finding investors for real estate, there are various ways to do so, and some methods are easier than others. This section of the article will show you how to locate experienced and reliable real estate investors that are most importantly, ready to buy.
Finding investors for real estate can happen either online or offline. For those searching for real estate investors nearby, it might be a good idea to begin your search at an investment network or club in your area. If you are searching a bit farther, you might want to leverage technology to search for real estate investors.
Network Locally
This option of finding investors for real estate is the traditional route. You should simply attend local networking events, meetings, or real estate classes to meet potential investors and build connections. Generally, these events and meetings occur at least once a month up to a couple of times a week.
When attending these events and meetings, it is important to know that there is a correlation between how successful you are in locating investors for real estate and the level of activity that a real estate club or association has.
If you are lucky enough to stumble on an active club, it is a lot easier for you to walk in there and start making connections. Such a club should have many investors, increasing your chances.
Conversely, if the club holding the meeting has just a few people in it, it drastically reduces your chances of finding a real estate investor for your investment property.
Pros of Networking Locally
- These investors already understand the local area and the values of the real estate investment properties there. This makes their offer fair.
- They have previous experience in real estate investing.
- Your property or investment opportunity is easily accessible to them.
Cons of Networking Locally
- You could meet real estate investors, but there is no guarantee that they are interested.
- The level of activity and the size of the local investment club can determine the likelihood of finding an investor.
- Your options for investors are limited to your locality.
- This networking method takes some time before it becomes effective. You are unlikely to walk into a local real estate investor meeting or networking event and then immediately build a rapport with an investor.
Keep in mind that while this method can produce solid connections and yield some positive outcomes, it is not the most reliable option when searching for investors for your real estate opportunities.
Property Manager
Asking a real estate broker or getting into local real estate clubs or networks is a great way to get invaluable and detailed information about the local real estate scene. However, if you want additional leads or you seem to be coming up short on information, you could try consulting with property managers in your locality.
Due to the nature of their roles, property managers are in constant contact with local investors, landlords, and of course, investment companies. They understand the business well, enabling them to share a lot of important information.
It doesn’t matter if the property manager you contact works with only a single investor. They are bound to know others in your area, which can help steer you in the right direction.
Here’s one thing to remember. It is important to only communicate with property managers with your property type or prospective property in their management portfolio. They are likely to work with or know a real estate investor interested in a new investment opportunity.
You should be able to round off a couple of real estate investor leads by simply talking to property management companies or property managers.
Asking an Expert
This option is useful for those that want a different approach to finding real estate investors. You can ask real estate professionals, like brokers or agents in your vicinity, for suggestions on local investors looking to expand their portfolios or searching for investment opportunities.
In most cases, brokers and agents are the number one source for everything real estate within a locale. They tend to know who the players are as well as their intentions. With the information provided, you should be able to discern the investors looking to buy and those you need to steer clear of.
A real estate agent might also be able to let you in on local secrets, such as an experienced investor that hasn’t been active for a few years and looking to quit the real estate business. You can also find out information about investors actively looking for new real estate investment opportunities, particularly when it comes to rental property.
Getting Matched to a Real Estate Investor
Looking for investors in your vicinity using the above methods is great, but there is always a more effective way of finding real estate investors. For one, you can get matched with a real estate investor who is ready to either invest in your property or pay cash for your property.
There are a variety of platforms to choose from when using this method. Some popular examples include Fundrise, Realty Mogul, CrowdStreet, EquityMultiple, iFunding, and Groundbreaker.
Each platform has its own peculiar method of matching you with a real estate investor, but in all, the process is pretty straightforward.
It comes down to two common ways to get matched to a real estate investor.
The first method requires you to sign up with a platform before posting your investment property on the platform’s buyer network.
For instance, if you are trying to sell a property, sign up to your preferred platform and enter the required information about the property (address, pictures, and current state). Once you’ve done your part, simply wait for the right private investor to respond to your post. Some platforms have easy-to-fill legal documents, which both parties can use to close the deals and also limit their liabilities.
The other popular way is by simply searching based on the metrics of your property.
For example, some platforms let you search your contacts and lists online as well as any accredited users searching for properties that match your specifications. You can filter out your matches by property type, price, bathrooms, bedrooms, and more. Depending on the platform, you have the opportunity to communicate with potential buyers on the platform through instant messaging.
Benefits of Using Platforms to Match with a Real Estate Investor
- You can avoid paying unnecessary and expensive real estate fees and commissions.
- You can get paid as quickly as possible for your property as you don’t have to worry about waiting for the investor’s lender to approve their loan.
- Since the investor has cash at hand, you can close a deal quicker than you would traditionally do.
- Depending on the platform, you have access to over 100,000 investors, helping you cast a wider net than if you were wholly focused on investors living in your area.
Conclusion
There are many ways to find investors for real estate. If you want to focus locally, there are a few great ways to do this, including networking, talking with a property manager, and asking experts.
Alternatively, you could choose to cast a wider net in your search for a real estate partnership by searching online platforms.
