Today’s REI Classroom Lesson
Today, Scott Carson talks to us about finding local investors with SDIRAs who want to invest passively with a decent rate of return.
REI Classroom Summary
Scott Carson explains how to find local investors who are using SDIRAs to invest and how to successfully market to them.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Scott: Hey, everybody. It’s Scott Carson here with We Close Notes and I am excited to be the guest speaker today, guest educator on REI Classroom. Now, today’s subject is going to be finding IRA investors in your backyard.
Mike: This REI Classroom real estate lesson is sponsored by UglyOpportunities.com.
Scott: All right, everybody. I know one thing that all real estate investors out there are looking for is money. You’re looking for cash to fund your deals. And so a lot of us are out there looking for investors. We’re going to the REI clubs and shaking hands, and kissing babies and trying to attract investors to us.
Unfortunately, though, a lot of us are doing it all wrong. The easiest way that we have found to raise private capital is to literally find the local self-directed IRA investors. Now, there is no secret. What I’m going to tell you is all public information. You can track it down and maybe you’re going to go, “Oh my gosh, why didn’t I think of that?”
The best way to tap into private money is to talk with self-directed IRA investors; people that have money sitting in their self-directed IRA account. Why? Well, you instantly have three things in common with them. One, you know they’re an investor of some sort if they’ve got an IRA account with Quest, Equity Trust, Pensco, IRA Services, whatever. If they’ve got their money in a self-directed IRA, they were smart enough to roll their money over into that account they’re going to use for real estate to self-directed.
The second thing you know about those people: they are not going to ask you as many questions as a brand new investor who’s never invested in real estate. That’s a good thing. You want to deal with sophisticated, if not high-end investors that will help you get more deals done and not bother you every day with stupid questions that they should have known to begin with.
The third thing, they’re looking for deals. These people have rolled their money from their Schwab account or their 401(k) into a self-directed IRA account looking to invest it. They are looking for you. They are begging you to give them a phone call, and, “Hey, I’ve got a deal that I’m looking for funding on or a joint venture partner.” And a lot of these investors are very happy making a 12% or less return on their money because it’s being done passively for them.
Now, the easiest way to find these people is to literally go to either your county clerk or your county appraisal district’s online websites. If you need to find one, find a website, just go to NETR Online, NETROnline.com, usually with a list just about every county appraisal, county taxing district in the nation. Now what you want to search for, you want to go to find where it’s the homeowners’ search. And what you want to do is just simply type in the self-directed IRA trustee names like you would type in “Equity Trust,” or “Quest IRA.” Just that.
What that will do, when you type that into the appraisal district, it will give you a list. It is usually a nice list of people who own real estate in their IRAs and will often give you their mail and address, and a lot of time, it will give you literally the physical address for the IRA company. But a lot of times, you search to that same county for, let’s say, you come across a Quest IRA for the benefit of Scott Carson IRA 1234567.
Well, if you go onto Travis County and search for “Scott Carson,” you’ll probably find out that Scott Carson owns a couple other properties here with a direct mail address. Now, what you have is two bits of information. One, you know that they are an active real estate investor with multiple assets, and, B, that they’ve got money sitting in their IRA or have had money in an IRA account looking to invest. That’s a beautiful thing.
Literally, let me repeat. You’re going to go to a local county appraisal district. You type in all 40 of the self-directed IRA trustees: Quest, Pensco, Equity Trust, IRA Services, whatever, and you will be given a list of literally anywhere, one to 100 plus names that you can mail out to and often leverage that person’s name by going to white pages or Spokeo, and often finding sometimes a direct phone number to pick up the phone and give them a phone call.
That’s one thing that we do on a regular basis using letters and postcards. This is actually the only direct mail we do as a real estate investment company now is by mailing out to self-directed IRA investors to show them what we’re doing and offer them up investment opportunities that they can either buy from us or they can joint venture with us. And that is my tip of the day for you all. Enjoy it. We’ll see you guys at the top.
Mike: HomeVestors, the “We Buy Ugly Houses” folks, is a franchised system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level or whether you have no experience at all, but a burning passion to be successful in real estate investing, please visit FlipNerd.com/ugly to learn more.
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