Let's say I wanted $100,000

Factual Questions
1

Because I do. Or some portion of that.

The ongoing financial crisis has produced record numbers of foreclosures. But, as in other crisis’s, one man’s tragedy is another man’s opportunity.

I already participate in this ‘reorienting’ of the real estate market as a contractor. There is A LOT of activity in the area, and I’d like to participate as an investor. (I have knowledge and experience in this area also)

Maybe you remember Carlton Sheets, the first huckster of the ‘no money down!’ and use ‘other people’s money’ craze. He advocated placing an ad in the WSJ. iirc.
So…if you were looking for a passive investor, where would you look?

2

I don’t understand your question. What, exactly, are you looking to invest in?

3

I thought it was pretty clear…

The residential real estate market.

4

If you have “knowledge and experience” as an investor, why do you want to bring in someone you will have to pay for investing?

5

So you want an investor so you can become an investor?

Why would the investor not just bypass you? What are you offering the investor?

6

It was not clear, and still isn’t. Do you want to buy undervalued properties and rent them? Buy up distressed mortgages? Buy residential REIT funds?

7

Are you looking for a passive investor to invest with you? Or do you see yourself as becoming a passive investor in the real estate market?

No, it’s not clear. And whichever it is you meant, I should think making yourself clear and understandable may be a necessary skill to achieve success. Something to think about.

Either way I wish you nothing but good luck, you’ll need it!

8

friedo, SanVito, elbows

Thank you for clarifying my post (or rather, requiring me to)

I’m pretty open. The immediate need is for passive money. I’m looking for something akin to financing (there are some reasons why bank financing is impractical, mostly because of their requirements post financial crisis)

So…let’s say an investor invests passively for 10 years, at a 7.5% return. Acquisition, rehabbing, sales etc are done by us.

While I would be open to other types of structures, including REITS, etc, initially I’d be looking for 10 year notes with a 7.5% yield.

SanVito, FrankJBN many (most) people have no interest in the leg work, or the process of rehabbing. More importantly, they have no skills, or knowledge, but would be pleased to be a passive investor.

9

Them what has money, makes money more.
Them was hasn’t, won’t.

I assume you are in the latter group?

10

Nationwide bank offers 1.7% annually on 5 year CDs with the interest compounded daily. I am not a finance guy but I’m guessing that 7.5% on a 10 year loan is .75% annual yield Is that correct?

11

The first thing you are going to need is a detailed business plan with actual numbers (which I don’t think you have).
You will also need a demonstrable track record at providing a return on investment.
Finally, since you don’t have any cash, you have to be providing some value - putting in, not taking out. And that inserted value has to be justifiably close to or greater than the required investment.

In fact, just what a bank would require you to provide before they gave you a loan.

Once you have all those things, then you can start looking for investors. And they will be hard to find.

12

[Moderating]
Thread closed at the OP’s request.
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