Ever hear the expression “a million bucks waiting on a nickel”? That’s when you know you could make bank, if only there were a way to get started. And not getting that nickel feels like missing out on the party of the year. But hang on – your invitation wasn’t “lost in the mail”. If all your fixer-upper talent needs is the cash to back it up, you’re going to find the money. Here’s how to get that party started right.
1. Establish a Relationship
It’s a myth that you need deep pockets to purchase property. Loans are attainable, even if you’re just getting started. But look for the best loans. Seek out lenders who’ve established themselves in your community. Check to see their longevity and examine the kinds of lending they do. Then make an appointment and introduce yourself. Tell them your plans and see how their types of loans connect to your fix and flip goals. Sell them on your skills, knowledge, and of course, your passion.
2. Get the Word Out
Print some low cost business cards and start talking. Seek out and head to all real estate networking events in your area. To find those, check out the local chapters of REIA (Real Estate Investors Association), Business Networking International (BNI) and your Chamber of Commerce, not to mention any relevant MeetUp groups. These gatherings are the key to connecting with likeminded fix and flippers. If you can’t find a local organization, jump on it and start one of your own. Use this active networking to learn about the types of loans others have received for their projects. Their insights will give you a clearer image of how to go after your own loan.
3. Line up Your Ducks. (Do the Legwork.)
To ensure your investment is stable, know exactly what you’re getting into. Gain solid knowledge on the steps involved – in terms of both finances and renovation. Read up on the lending fees so you’re not surprised. When approaching a lender, demonstrate your knowledge in a PowerPoint deck and any supporting documentation. Remember: your lender is investing capital, you’re investing the time and elbow grease.
4. Look Sharp
Even if it’s still a blurry one, you probably already have a vision of the polished property you’ll deliver to the market. Have it in mind as you add some shine to the presentation you will use to woo your lender. This doesn’t have to be costly, just well conceived. All of your communication should appear professional. Spell and grammar check your correspondence, be it via email, written letter, or even text. Scale up your email address to a business domain. Create a logo and add it to your email signature. And highly important: be definitive throughout your communication with lenders – deliver prompt responses and thorough, thoughtful answers.
5. Get Creative
As you get rolling, you’ll discover that it may take several strategies working together to complete the initial capital. Don’t hesitate to move laterally, utilizing all resources. Once you’ve assembled the first property investment, manage the money well and move forward – you’re on your way to fix and flip expertise.