Offlinei am wanting to place ads for investors...BUT.... what are the ins and outs of private investing so that it is a good deal for them and me.
SPECIFICALLY
say i find investors that want to just invest for a great return say 12 -15% anually with a $10,000 or more investment...
EXAMPLE: investor puts up $50,000@ 13.5% for 2years at the end of the 2 years his return would be $17,500 per year???? (plus his 50000 of course) AM I THINKING CORRECTLY OR CAN SOMEONE PLEASE EXPLAIN OR HAVE OTHER DETAILS ???????????????
PLEASE HELP
then if i had others that just want to invest in each individual deal , say finance the deal , buy the property for cash , I have all the work done and we flip for a good profit, what is considered a return on a deal of that nature
example: purchase a property for $50000+closing cost (inv pays)
i have all the work done to rehab $40000 ( I pay)
I get the house sold for $140000 ($10000 closing and realtor fees) leaves a balance of $130000 what would be a good return for the investor.
THANKS SO MUCH DG FAMILY FOR YOUR HELP
I AM A VISUAL PERSON SO AS YOU CAN SEE I CAN SEE IT BETTER IF IT IS PLAIN (DUH)LOL LOL
As you have indicated, there are two ways you can use Private investor.
1. Pay them an interest rate for their money
2. Pay them a percentage of the deal
If you pay them an interest rate it can get fairly expensive if you do a deal long term, such as the two years you spoke about. If you are going to pay them a percentage for their money use their money for an in-and-out deal, say 2 to 6 months. The rate that you pay them will be from 10% to 15%. With this arangement you have to be carful how to structure it so that it doesn't appear that the investor is buying stock in an investment because the SEC will be all over that. There is a fellow named Alan Cowgill that has a program about Private lenders and you can buy his program on eBay for a song. You might look into this.
On the other hand, if they put up their money to buy the deal and you find the property and fix it up or see that it gets fixed up and hold the property for two to five years, it would be best to do a Jt (joint venture) where you split the deal 50/50. You get the 50% for doing the work and the investor gets 50% for putting up the deal. This is a safer way to invest because the only promise to the investor is to split the profits and not pay them an interest rate for the 2 to 5 years.
Another thing to consider is if you could find 5 or 10 investor and you do a property with each one of them. They make a good return and so do you without putting any money into the deal and without worrying about getting approved by a bank.
Either way, using private money is a great way to invest in real estate.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thanks for the info Charlie, yes the deals i'm looking at are going to be for the short term like you said 2-6 mo. That is what I'm wondering , a good return would be the 10-15% and on the above example of the 50000 after the sell they would get 13.5% or 6,750.00 for the investment , rather it was 2 mo. or 6 mo. correct? Hopfully that would not get the interest of the SEC ( that is what I surely do not want) any advice on learning the stratgies to structure deals as this kind? or does Alan Cowgill go into that?
In my first above example, what i was looking at was to be able to use the investers money over a 2 yr period and paying him return for that use , wether it was 1 deal or 10 , but now that I look at that as typing that is probably what would peak the SEC attention?????
Your last idea is exactly what I'm wanting to do, that is it and I'm wanting to make sure it is a SUPER WIN WIN FOR BOTH OF US and without the SEC involvment.
thank you and any other advice would be greatly appreciated
DEAN
MY FATHER GOD HAS GREAT AND WONDERFUL PLANS FOR ME HE HAS A FUTURE ALL PLANNED A HOPE AND GREAT DESIRE TO PROSPER HIS CHILDREN THANK YOU FATHER
I JUST FOUND THE VIDEO OF DEAN'S SHOW FROM JUNE 30 DOES ANYONE HAVE OR CAN WE STILL GET THE REPORT OF FIND FUNDING RIGHT NOW PLEASE HELP ANY INFO IN THIS AREA IS GRRRREEEEAAAATTTTT.
THANKS DG FAMILY
PLEASE IF SOMEONE HAS THE REPORT OR KNOWS HOW I CAN GET ONE PLEASE LET ME KNOW
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