You have to get yourself in circles with people that are actively doing deals. Local real estate meet up groups will have investors, real estate agents, and contractors that are actively doing deals. There are several ways to find out where and when these meetups happen. Social media searches, type in your city and the words “real estate investor”. If you don’t live in a large city with an active pool of investors you can find a larger city, connect with people eventually, plan to go to that city to meet with people face to face. The good thing about money id that it works anywhere. And real estate deals are happening everywhere.

The answer is it varies from deal to deal. There are several factors to be considered. Interest is usually charged in comparison to the level or risk. The fewer the successful deals someone has completed the higher the interest rate you should charge, this is because they have a little bit less experience and are slightly more of a risk. So, you should be compensated foe helping them. The interest rate ranges from 8%-15% in most cases.

There is an old saying that goes, believe half of what you see and none of what you hear. So that being said, you will want to ask for documents that show when they previously purchases, rehabbed, and sold properties, and that they produced a profit. If they have borrowed money before for their project, you can ask them for the proof of pay off. You will also want to ask for pictures or videos of before and after projects for rehabs. And ask if they have any current active or completed projects that you can go see in person.

This is one of the most important components of the deal, and to simplify this for you I have included several sample contracts in the membership program that you can use. These contracts were drafted by my real estate attorney in Texas and should generally be useable anywhere. They are in an editable format so that if you get a local attorney to review the document in your state you can make adjustments as needed.