One of the struggles that investors, especially new investors, face is their inability to fund a GOOD project.
Let’s be clear on something. If it’s a good deal – the money will be there IF you are looking in the right place.
That is a powerful statement that many people breeze past.
FIRST – FUNDAMENTALLY, it must be a good deal. If your deal is too “thin”, private money and hard money will run the other way – or even worse – will slow you down while they “review” the deal.
If you are trying to find money through friends and family, they might not know what a “good” deal actually is – and in most situations, working with friends and family – especially as lenders – can be a recipe for relationship disaster.
A short video about our next WREIA meeting in Bethesda where we will be talking about “Finding Money and Finding Deals” is posted here:
SECOND – The money will be there IF you are looking in the right place.
“Some people are crazy” is a blanket statement we all hear from time to time. Well, let’s all be honest – that extends into business too.
It’s a fact of life that we all run into people who “rub us the wrong way”. We think that one person may be terrific, while your good friend may have a different opinion of that same person.
A big reason we might have a rewarding business relationship with one person and not another may be where we SOURCE that relationship.
At our monthly WREIA meetings we see a lot of people that become lasting friends based on their shared passion for real estate. They may come from different ethnic, cultural, political or religious backgrounds, but because of their shared love of real estate, they have a deep common bond.
It’s a beautiful thing to see our WREIA members truly bonding – especially over shared success stories and even stories about their struggles. Successful people WANT to help the person that is just getting started or facing an obstacle. Our WREIA organization is full of successful investors.
When it comes to financing a property – if your source of funds comes from someone who is a great investor because they have a sizeable stock portfolio that could pose problems down the road.
Someone who has had success building a stock portfolio by trading stocks, but never held real estate, may not have the temperament for a six to 12 months renovation project. You can’t liquidate a house by pushing a “sell” button.
Remember, this all hinges on that fact that a GOOD deal makes life much, much easier. When you FIND a good deal, you can screw up in a lot of other parts of this business and still find success.
So – come on out to our WREIA meeting this month and join us as we discuss the process of finding a GOOD deal here in the DC area and marrying it to the RIGHT type of capital.
Washington REIA Network, President
Profitable Property, Founder