How to find investors for your Commercial Real Estate Investments.

Most first time investors believe that they should use their own money to invest in a property. However, this is not the case. Options are available if you don't have the funds to invest. You can approach a commercial real estate funder to raise the funds you need for your project, or you can approach an investor to invest in your project.

It is important to understand that finding and persuading good investors is not an easy task. We often recommend starting in your own network, someone in your circle might be have liquidity or might know a commercial real estate lender who can loan you the funds.

If you're looking for a commercial real estate investor, this guide is for you. It will give you a good idea of ​​what you can do to find investors who can finance your project.

How to get started?

The first thing is to list employees, friends and neighbors to help build a list of investors interested in buying a building or investing in a property.

Follow up and update your friends on your progress. Also, don't hesitate to ask for another recommendation. If there are people who are interested, you should meet and discuss. It helps you get a complete picture of your investors and whether they are a good fit for your business.

How to find a commercial real estate investor?

You can find real estate investors in a few different ways: through bank financing, a real estate investment club, crowdfunding, your current personal or professional network, and online resources such as social media.

Let’s find out more about each alternative.

Mortgage Financing

Banks can consider mortgage financing for specific investment properties. Real estate banks offer a variety of financing options, including multi-property options.

Banks can be quit challenging if the investment property is high risk.

You may need to apply for a mortgage to buy property or find other real estate investors to generate initial capital.

Find a Real Estate Investment Club

The Real Estate Investment Club helps you find investors by connecting you with other real estate investors who are interested in investing in real estate. Pooling resources with others can facilitate large-scale investments that would not be possible with just one investor funds.

Start Crowdfunding

Crowdfunding is the merging of funds from multiple investors using an using digital platforms. Crowdfunding connects investors who then donate money into an investment, and the money goes to a fund for a specific project.

Target Your Network

You may not need to look outside your community or other groups to find the right partner. Think of family members, friends, church group acquaintances, business associates, and effective members of the city council. By targeting and narrowing your network, you can find investors you want to work with.

Find Online Resources Online investment groups and communities such as Meetup and BiggerPockets can help you find the right people to partner with. However, it's important to make sure you're using a reputable site or looking for the right membership.

A great way to connect with the right investors is networking. You have a better chance if you meet a local commercial real estate investor. Networking is a fairly reliable way for commercial investment. You can find local investors by joining an investor association. It also provides a direct opportunity to meet and connect with investors.

If you meet someone who is interested in your portfolio, make sure you are taking the right steps to move forward.

Social media groups

Using social media target real estate investors by promoting partnerships. Popular social media networks we use include Facebook and LinkedIn. The Clubhouse Audio app is also growing in popularity as an easy way to connect with other real estate investors.

Deciding on an Investor

Prior to deciding on investors you'll need to verify the investor's credentials and other important information.

You need to connect with the right investors to make any worthwhile deals. Remember, finding the right professional is all about finding the right expert. By paying attention to the existing market and using the right investor portfolio knowledge, you can form conversation starters and attract investors. You can build a so-called long-term relationship with your investors which can be extremely useful for future investments. You never know when you might need additional help, so stay in touch and nurture your relationship. In the real estate industry, it's the relationships that help you do business.

Conclusion

Because we know that finding the right commercial real estate investor can be a hectic task, at P2smart we can facilitate this whole process and put you in contact with the right people.