[Since we are into one of our phases of acquiring properties, Russell has been interested in finding out how new investors go about figuring out the best time to get funding for new projects! Read on!]
I went to an investor meetup the other day and threw out a question for the sake of the beginning investors in the room. The question was, “What’s the best way to secure funding for your first deal, when you need to have funding in order to secure your first deal?”
If you’ve never done a deal before, how do you prove to potential lenders that you’re a good risk? If you’re not secure in your financing (and aren’t independently wealthy) how do you reassure potential sellers that you can actually purchase that first property?
While several variations came out in the responses, the recurring theme was quite simple – networking. You simply have to attend networking events on a regular basis. This lets you:
- Meet lenders and find out what they have to offer.
- Meet experienced investors and offer to partner with them.
- Meet other investors and offer to lend your money as a way to get established.