What is a private investor?
A typical private investor is an individual or financial institution who invests their own capital or money into a company, with the mindset of helping that company reach their goals and at the same time make a return on investment.
Private investment itself as a category is much more varied then just providing a simple answer. And it is important to keep in mind that private investors or financial institutions may be firms who specifically focus on investments and at that their focus may only be on certain types of investments. Such as; angel investors or venture capital firms who are always wonderful sources of funding and often times can also help small business owners in facilitating a successful business plan or help with common startup business decisions. Many may also require an equity position as a condition of their support and investment.
More notably what is a Real Estate Investor?
A real estate investor is anyone who may purposefully add a real estate asset to their portfolio. A classic example many would consider to be a real estate investor is one who buys and holds a property as a rental, although that is just one type. A real estate Investor or entity may also be one who places their money into a fix-and-flip investment strategy, a real estate investment trust (REIT), or to be a wholesaler.
How do I find a Private Investors for Real Estate?
If one knows where to look, they will find private real estate investors everywhere. Most notably, it is highly possible for real estate investor to be an individual, a doctor, lawyer, or an institution, or fall somewhere in the middle. Banks, in this case, or other financial institutions would count as institutional investors, while individuals would count as individual investors. And then individuals could also start a real estate investment company, which would fall somewhere in between those two as far as investors.
Qualities to Look for In a Real Estate Private Investor?
Been doing this for a while and have found that most if not all successful real estate investors possess the following qualities and in no certain order.
Vision
Having the vision to see what a property could be, is what sets the best investors apart from those who are average. A good investor can find the absolute best use for a property and have the drive, knowledge, and contacts to make it happen.
The best investors find ways to add value to a property without spending more money than is needed. They don’t wait for the market to get hot; they have the vision to show added value in their properties and a knack of buying what many may see as a ugly duckling and turn it into a duck that lays golden eggs in profits.
Knowledge
There are those who are incredibly wise that will tell you, “There is no substitute for knowledge”. It is always easy to see who the best is at what they do because they are the ones that always appear to have a line of people waiting to ask questions and appear to know more knowledge and detail then seemingly any others around them. In real estate it is no different, real estate investors with large portfolios will simply know more about what is driving the market, what to watch out for and are likely to be more aware of trends or possible upcoming market shifts and are prepared for those opportunities.
Focus
The best investors seemingly always know what they want, are highly focused, and do not let anything prevent them from getting in their way. Obstacles become opportunities, for those who are focused. Fore they know no darkness because the light is always on. That light, or energy engulfs a room, which is its purpose fulfilled.
The best investors have the focus or the light. Nothing seems to get in their way or deter them from their goal and achieving exactly what they set out to.
Patience
And then we come to what many would consider fundamentally easy in real estate but can become quite difficult and that is patience. Having patience may sound simple, but that is not always the case. When it comes to real estate investing, time is money. The clock is always ticking on interim interest and the pressure to perform quickly and efficiently is constant. The best deals are those that just seem to fall together and go quick, and then there are the ones that do not go as planned no matter what you do and the projects run past the agreed upon timeline creating more expense and undue pressure.
Patience is truly a virtue and can save one from making a lot of expensive mistakes.
Options When Choosing a Private Investor
Selecting the right private investor to fund your investment property is an extremely important decision. When the time is right for you to consider an outside financial partner, how do you choose? Here are a few things to consider in making your selection.
Define and know your needs
Before you seek a private investor, give full and careful thought as to your reasons for raising capital and only by understanding the investment opportunity you face — and the type of capital you therefore require — can you choose the right private investor.
Evaluate each firm’s track record
Like any other large decision, one should review and evaluate the experience, track record and portfolio of the private investor you are considering. Look for commonality between what you want for yourself and what they can bring to the table. Do you agree on design concepts, budget priorities and in what adds can bring in additional efficient high yield market value.
Make sure the culture fits
The importance of making sure the culture and mindset are a fit are critical and can never have enough importance. As is trust in who you are working with. You must be able to work and make decisions for the common good without delay or detriment to the whole.
Why It Can Pay Off to Work With a Company Like Ours
The benefits of working with a company like ours is that we have the experience, knowledge, drive, and patience to help get you across the finish line. Our team will utilizes time proven processes and procedures designed to expedite and obtain the best private investor hard money financing on your projects.
We consistently follow up and keep you informed and provide any additional support required to help you facilitate the very best rate and loan possible for your investment property.