The first decade of the 21st century has opened America with a trillion dollar scandal that’s why finding real estate investors had its share of market threats when the the residential real estate industry was marred with unpaid debts and the mess it made with unregulated fraudulent mortgage system known in history as the sub prime mortgage meltdown. But it turned bad because of the tight credit money condition to salvage the situation.
Despite odds, honest-to-goodness investors do not pack up and leave. Neither should professionals who had a stake in finding real estate investors. In fact, they must be the first to be enthusiastic with their best foot on solid ground and not forward, with the kind of enthusiasm that would lead investors to opportunities. Experience and credentials in property investments do matter though but this will puff when approaching investors without an unbiased plan characterized by the latest industry scan results. Mortgage defaults in retail and multi-housing peaked half a decade ago but the demand for rents, apartments, condominiums, and condominium construction should logically rise to accommodate thousands who were dislocated. Unbiased forecast plan complete with the details of objectives, return on investments and clear profit sharing is attractive. Let discussions on expenses as the last agenda in convincing and finding real estate investors, among these are taxation and insurance obligations, repairs and maintenance, mortgage arrangements.
Defaults were not the only “crunch” suffered by the American public. Since the problem is in the unregulated mortgage system, lending, investment and insurance companies folded up and the remaining viable banks avoided risks by withholding credit facilities. This is close to impossible as credit is the life blood of investments. Access to credit is “close to impossible” but not “impossible”. Tight credit is a question of regulation and requirements. While bank requirements now pose difficulty to investors, it does not mean unavailability. Competent mortgage consultants can help in “mortgage shopping”, ease up burden of loan paper works and could match investors for you via referral. Finding real estate investors must include facilitating credit package.
Involvement in local and state real estate investment clubs, chamber of commerce, high profile civic clubs (Rotary, Lions, etc.) is a big help. Like minded individuals are there for the connection as well. At the height of the crisis, these gatherings are venues for talks, conferences, seminars and education towards understanding, assessing and positioning vis-à-vis the crisis’ impact. Be sure to earn colleagues’ trust as a credible partner in your area of specialization and possibly an answer to potential need for real estate investments.
Referral system should not be taken for granted in searching for investors. Accountants, consultants, loan officers or the lending institutions themselves, their offices are good sources of referrals. Loan officers, banks or lending institutions may withhold or disapprove loan packages but as a partner in a parallel business, you can be qualified as a professional partner using their pool of clients.
The recent sub prime mortgage crisis apparently rippled into almost all aspects of the American financial system, the economy in general but finding real estate investors are not impossible. Resilience, perseverance and enthusiasm on the part of the property investors are the key.