Obtaining funding can be one of the more difficult aspects of real estate investing. How do you go about finding the right lender? My guest today is making the process quicker and easier by marrying technology and real estate to create an online marketplace where investors and lenders can connect.
Ross Hamilton is the CEO of connectedinvestors.com, the world’s largest network of real estate investors. He began investing in real estate at the age of 19, and soon realized that the more connections he had in the real estate investing world, the more lucrative business could be. He leveraged his understanding of technology to create what he calls “LinkedIn for real estate investors” and became wildly successful during the property value upswing. Ross then had the foresight to diversify prior to the crash, and even thrived during the crash by investing in real estate in military towns.
Ross continues to grow his portfolio as well as his network of real estate investors, as he seeks to change the way money flows through the industry. Listen in as he explains how the Connected Investors platform pairs lenders with investors, how to spot a fake lender, and how technology will continue to affect the future of financing via crowdfunding portals and social networks.
Key Takeaways
[3:22] The key to success in real estate
[3:38] The evolution of funding real estate investments
- ‘Wild West’ of easy funding led to crash
- Impossible to attain after crash
- Smart investors shifted focus to real estate
- Trillions raised to buy bank portfolios
- Now there is more money than deals
[6:54] How the Connected Investors platform connects investors with lenders
- Press 12 buttons and type the property address
- The platform identifies appropriate lenders
- Real, active, verified lenders compete via bidding
[8:35] The success of CiX
- Simplified process makes obtaining loans easier
- Process $1B in applications every two weeks
[10:10] The types of debt supplied by CiX
- Currently provide recoursereal estate fin
- Just added portfolio
- Making strides to include nonrecourse for commercial
[12:43] How CiX helps investors with the equity component of funding
- Small business lender programs for CiX network investors
- Private lenders in network willing to think outside the box
[14:54] The prevalence of scammers posing as lenders
[18:21] How to qualify lenders and identify scammers
- Ask for recent closings
- Verify via public records
- Contact borrowers as references
[20:02 ] The future of financing
- Expansion of crowd-funding portals
- More wealthy individuals investing in real estate
- Additional capital moving into real estate
- Added transparency
- Faster, easier and cheaper to raise capital
- Evolution of the market by technology
[22:43] Ross’s advice for investors struggling to find funding
- Evaluate your deal- it’s probably not good enough
- Consider how you present yourself to lenders
Connect with Ross
Resources Mentioned
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
