Forums: Discussions for entrepreneurs and small business.

I`ve been attempting to form a real estate investment firm.  I`m working with no capital, but I have knowledge, experience, and product, to back me.  I want to start with one deal at a time and move from small deals to larger ones.  Right now I`m looking to buy a great investment multi family building at a discount and I need some sort of partner / investor / or venture capital firm to fund the down payment.  I`m looking at great commercial rates from a lender of between 5.5% to 6% and I believe I have a lucrative deal.  Can someone point in the direction to find some capital for such a startup?  

Hi there. Even at the risk of being wrong here, I think there’s a big misconception about these so-called pre-foreclosure or short sales.

To my understanding, most of these deals are wishful thinking on behalf the homeowners, who are trying to avoid foreclosure by selling their properties before the banks take them and they’re ultimately foreclosed on.

What’s perhaps even more important is that a short sale only qualifies as such when there’s a binding offer on the property, which has been approved by the mortgage holder.

Again, I might be wrong here, but while so called pre foreclosure or short sales probably make sense for distressed homeowners and mortgage holders, investors buying into these properties still do so at a premium. And so do you “ChildShieldUSA” funding these deals.

So, why not wait and gobble them up even cheaper when they go into foreclosure?

To get back to your question “ice45x” starting an investment firm of any kind with no capital is not a good idea and not a viable business proposition even if you have experience, expertise, and let’s say an interesting deal. At this point, there’s no shortage in either of these areas.

So, if you are still determined to get into this business, you can either explore teaming up with people who complement your own skill sets/resources, or you can try to raise a minimum amount of cash to fund your first couple of deals – though I wouldn’t recommend it.

If you’re still undeterred, doing a private placement might be your best bet. Under a private placement, you essentially sell shares in your real estate investment firm at a fixed price per share to accredited/non-accredited investors (it’s similar to an IPO, but without the “P”ublic).

You can find a series of online articles on our website at http://www.Insights.FastVentures.com including a free guidebook on how to research, identify, and approach so-called high-net-worth individuals as potential investors in your offering.

I hope this helps.


Mark






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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

Well then Cory, check out our free guidebook “Reaching High-Net-Worth Individuals with Your Private Placement”. We intentionally make this guidebook available as a free download to dispel some of the myths and misconceptions that are associated with private placements.

http://insights.fastventures.com/is-bin/guides/htg10302208/index.php

Unfortunately, your gut feeling is probably right and the companies you’re working with are probably neither licensed, qualified, or even willing to do what they promised. They only ones winning in this type of matchmaking scheme are usually the guys behind the websites.

There’s no shortcut to finding investors. If you really want to make this work, you have to be invested in the process and do the legwork to forge reliable relationships with potential investors. Let’s not forget that they’ll invest primarily in you!

I hope this helps!


Mark



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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

Thanks for your help

 

When I opened my real estate company several people suggested me to Consider a Partnership with a company specialized in real estate, I was a novice in this domain and did not want to risk that much so I accepted the offer. Now things are going great and I don`t regret that decision, you should also think seriously about that.

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If the economy of your country is stable then its a good business for you otherwise real estate business is a business of risk. People might loss their entire saving in this business if they made wrong investment therefore make investment in under guidelines of an experienced agent.

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cloture frost