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Whether you want to bolster your retirement fund with a rental or just purchase your first house, a real estate investor can be key to acquiring property. But even with how much money moves around in the world of real estate, it can be difficult to know where and how to look for that money. And while they’re not hiding, exactly, you do need to have the right connections and know-how. We’ve put together a simple list of places where you can find real estate investors and make the connections you need to get the deed, as well as guide you through some benefits and risks of getting an investor.

Things You Should Know

  • Visit websites like Fundrise , [1] , Roofstock , and Crowdstreet or social media groups on Facebook, which are great ways to connect to investors online.
  • Approach your friends and family in order to start small and build connections closer to home.
  • Network with real estate agents and investors in upscale venues to help you build personal connections to possible investors.
  • Know the benefits and risks of real estate investors—you’ll have more ability to purchase property, but will have to share responsibility.
Section 1 of 2:

Where to Find Investors

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  1. Visit a website tailored specifically to investment networking. Sites like Fundrise , Roofstock , and Crowdstreet exist solely to connect investors. They work a little like social media websites, except everyone is real estate-minded. The best part: many are free. [1]
  2. Sites like Facebook and LinkedIn connect investors. Real estate Facebook groups have become increasingly common, and while they’re less common on LinkedIn, users there tend to conduct themselves more professionally. Use the search function to look for “real estate investors” or investment networks. [2]
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  3. Most large cities have clubs that focus on real estate investment. These are groups formed by and made up of people looking for investment opportunities. This means that they’re ready and willing to drop some cash on promising properties, so brush up your sales pitch.
    • Find a local club by searching the internet for a local Real Estate Investor Alliance, or by using a site like Meetup to find like-minded individuals. [3]
  4. Real estate agents have plenty of connections. It’s obvious when you think about it: the person selling the property probably has their own network. Ask a local real estate agent if they know anyone looking to invest, or if they have somewhere you might look. [4] Just be sure to be polite and personable; they’re doing you a favor, after all.
  5. People who own property often have their own investors. There’s a good chance they didn’t acquire that property on their own. Find a property similar to what you’re hoping to acquire, then ask the property manager, owner, or landlord about their experience with real estate investors, or if they invest themselves. [5]
  6. Your own personal connections might surprise you. Sure, they might not be able to help you with bigger investments, but they can help you start with small, cheaper properties to help build your real estate business. Hit up someone who you know might be looking to invest or play the market, and make a proposal. Also, you never know who’s already dipped their toes into the real estate game. [6] It’ll probably help to treat them to dinner, first.
  7. Attend events and venues frequented by real estate investors. The local chamber of commerce, a nearby Toastmasters chapter, even a country club or an upscale gym—go where the money is. These demographics are more likely to be interested in or already doing real estate investment, so bring some business cards and don’t hesitate to broach the subject in order to network . [7]
  8. Banks often offer loans for investment properties. True, you may have to put down a slightly heftier down payment on the property, but on the upside you can use your expected rental income to help you qualify. Talk to a local bank representative about the possibility of an investment property loan. [8]
    • Fix-and-Flip loans are perfect for buyers looking to refurbish houses. If you’re in the business of flipping houses, many banks offer loans just for you. These loans are distinct from typical investment loans, with terms tailored to help buyers with repair costs and prospective value after the flip.
  9. Hard money lenders can help where banks can’t. If your bank loan falls through, you can turn to a private lender to get the investment you need. They might charge higher interest rates, but they’re more willing to help buyers who may not qualify for other loans. Search an online directory to find and connect to a lender.
  10. Financial advisors connect investors to buyers. While most of their work is investor-facing, you can also connect with an industry financial advisor to help build your network. Since these advisors handle many investments on behalf of their clients, they have access to plenty of cash flow. [9] Look up local financial advisors and ask for a chat; getting on their radar can be a huge boon.
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Section 2 of 2:

Benefits and Risks of Investors

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  1. It can be difficult to break into real estate with only your own assets. Properties are increasingly expensive, and increasingly out-of-reach for lone buyers. Partnering with an investor increases your buying power, and enables you to acquire more valuable properties. [10]
  2. They’ve been in the business a while, and they’ve already made the mistakes you’re hoping to avoid. [11] Partnering with an investor can be a bit like having a mentor. After all, their best interest is also your best interest, and you both want to succeed.
  3. When you enter into a business partnership, like the relationship between property investors, you share the decision-making responsibility. [12] You may have to forfeit some of your say in the business ventures in order to collaborate with an investor.
  4. When you take a loan with a bank or a money lender, you’ll probably have to pay interest on the loan, meaning that you might end up paying a bit more than you thought. [13] In addition, banks and lenders may take legal action if you’re unable to pay back the loan.
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Expert Q&A

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  • Question
    Do I need to have a brokerage license to conduct business with an investor?
    Arun Ghosh Aravindakshan
    Real Estate Expert
    Arun Ghosh Aravindakshan is a Real Estate Expert and Licensee with over five years of experience, specializing in commercial real estate. He recently received a certification in Commercial Real Estate Analysis and Investment from the MIT School of Architecture and Planning. As the founder of Hutfin.com, Arun created an online marketplace designed to streamline the selling and buying of commercial property. Previously, he worked as a certified Cloud Architect and DevOps Engineer and is a member of prestigious organizations such as REIN, ISACA, EC-Council, and PMI. He has also served as a U.S. Army Officer. He holds a Bachelor's Degree from the University of Kerala and a Master's Degree from the Hough Graduate School of Business at the University of Florida.
    Real Estate Expert
    Expert Answer
    Yes, you do need a brokerage license to handle investment properties, most especially when commercial real estate is concerned. You can work with clients on residential transactions as a real estate agent, but you cannot handle investment properties as an independent agent until you obtain a brokerage license. If an investor came to you with hundreds of thousands of dollars to invest in commercial real estate, then you or any broker would have to find premier properties. The drawback with commercial real estate is that it can be difficult to deal with because of long-term leases, some of which can be up to 99 years in length. Without a brokerage license, there's only so much that you can do in regard to these transactions, so the right type of credentials are important to be fully involved in this market.
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