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Friday, April 13, 2007

Real Estate With Venture Capitalists: Making money in real estate while somebody else pays

The venture capitalist would receive the largest share but the real estate investor would receive a large commission from each sale. The main benefit of this is that you do not risk any capital when you buy the real estate and you are often able to invest far more than you would have done otherwise.

However, in order to find a venture capitalist and persuade them that you are a good real estate investor there are some important steps that you must take. You can find directories venture capitalists online with a quick search using google but this is the easy part. The more difficult aspect of this for a real estate investor is convincing someone to put their money in your hands and to allow you to invest in real estate for them.

One of the best ways for a real estate investor to do this is to actually have some experience, some documents of old investments and the profits made on them. It is essential to have proof that you are a good real estate investor before persuading a venture capitalist to invest in you.

More importantly, as a real estate investor seeking private equity you need a business plan. Your business plan needs to be carefully designed, legible and to show that you have a careful real estate investment plan. It is your proof that you are choosing sensible real estate to invest in and it does not need to be "glitzy", just solid and rational.

In order to sell yourself to the widest range of investors possible you need to write short and easily explainable thoughts and make certain that you accurately convey your 'step-by-step" plan towards their profit. You basically need to find the basic steps that made you successful with real estate in the past and write that down as an outline.

It is very easy to find free templates for business plans online that will help you to persuade a venture capitalist. However, these will only help you with outline and not with the technique that you need to be able to sell your skills as a real estate investor to a perfect stranger.

The technique that you need is to write a business plan that explains in simple language how you propose to make money using the real estate market. If you have done it before then all you need to do is to write it down.

In this plan you need to detail the types and sizes of the loans that you will need to invest in the real estate. Above all, while writing this plan you need to constantly keep in mind the ways that you are planning to benefit the venture capitalist. Explain exactly how you will ensure that their investment is safe and a rough calculation of the amount that they will make.

Be detailed and specific but simplified and make sure that you feel confident in your abilities as a real estate investor. Don't be arrogant but do be confident. This will rub off on your potential venture capitalist.
This article is free for republishing
Source: http://www.articlealley.com/article_147251_33.html
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