All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowStarting OutArrowWhat's stopping you from buying your 1st investment property?
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

What's stopping you from buying your 1st investment property?

622 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Analyze Deals
  • Posts 917
  • Votes 1.0K

Salvatore Lentini
Rental Property Investor from Doylestown, PA

posted about 1 month ago

I built a rental portfolio of 127 units and soon to double in the next year.  I've experienced a little bit of everything: wholesaling, flips, single family rentals, multi family rentals, office, commercial, development...and now I want to give back.

So, here's your chance...

What's stopping you from getting started? If you could have your biggest questions answered, what would they be?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2
  • Votes 111

Ray Wu

replied about 1 month ago

Just starting out. I am looking to purchase an investment property through cash refinance.

There are limited multifamily within my price range (ie. in Salt Lake City, Portland, Eugene, Santa Fe) that would completely service the refinance monthly payment. The risk is also in making sure the duplex or triplex are fully rented out.

Should I be looking at Single Family Home or Condo instead, and don’t max out on 75% cash refinance?


Rotate Log in or sign up to reply
user profile avatar
  • Posts 14
  • Votes 129

Andy Vazquez
from San Antonio

replied about 1 month ago

Hey Salvatore, 

I have a questions, but first - thank you for sharing your knowledge and time. 

Austin and San Antonio TX markets are BOOMING right now, and I've always been interested in BRRRR strategy as well as flipping. I'm a real estate agent in both markets right now looking to invest in these two markets, and have actually found some private investors willing to fund some of the properties BUT my question are:

1) How do we set up this partnership/structure with investors? More importantly how do we split profits? 

My contributions would generally be: Find the deals/properties, make sure the numbers work, present/update investors, I already have a solid network of contractor, master electrician, plumber, roofers, etc. 

Investor: Provide the funds

2) How does this structure change if they want to buy the property themselves, and build their portfolio but I still oversee and coordinate the rennovations/etc? 

3) What else should I be keeping in mind? 

Thanks again! 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 13
  • Votes 31

Andrew Sprague
Rental Property Investor from Boston, MA

replied about 1 month ago

@Salvatore Lentini

Thank you for taking the time to redistribute your knowledge and experience.

Currently I feel that I’m being held back from investing due to school. I am the captain of a division 1 swim team and we have a season that lasts until May so I feel like I have a serious commitment, and I want to invest in an area 280 miles south of where I go to school. Is this a reasonable obstacle or should I just be more creative and try to find a way to get involved now.

Additionally, what is your take on co-signing/splitting a deal with a long time friend? I have a few friends that I have gotten interested in real estate but not quite to the same level as myself so I’m sure the majority of the analysis and prospecting would be my job they would simply be funding partners. Is this viable or could this ruin a relationship/is it not smart to partner two inexperienced investors?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Analyze Deals
  • Posts 917
  • Votes 1.0K

Salvatore Lentini
Rental Property Investor from Doylestown, PA

replied about 1 month ago

@Andrew Sprague - why are you looking 280 miles from where you are?  One of the things I teach in my course is that new investors tend to fall in to the trap of "the grass is always greener".  99% of the time you can find something within 20 miles of where you are, even if where you are is a high priced area.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Analyze Deals
  • Posts 917
  • Votes 1.0K

Salvatore Lentini
Rental Property Investor from Doylestown, PA

replied about 1 month ago

@Andy Vazquez - Question 1: I set mine up as LLCs with the investors as limited members/partners.  Your operating agreement spells out voting rights, responsibilities, payment structure etc.  Question 2:  I would always make sure you get equity.  It doesn't matter if you are investing money or not.  Finding the deal and managing the asset are just as important as the funding of the deal.  If you're not getting equity you're just getting a job.  Wealth creation is in the equity.  And the more you grow you portfolio, the easier it will be to find more deals.  I have commercial brokers calling me now because they research the owners of expensive/commercial properties.  So instead of me chasing brokers down for deals they're chasing me down to sell me their off market deals.  Question 3 is too vague.  There's a lot to keep in mind.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Analyze Deals
  • Posts 917
  • Votes 1.0K

Salvatore Lentini
Rental Property Investor from Doylestown, PA

replied about 1 month ago

@Ray Wu - I'm a little confused on your question.  You can't acquire a property through a cash refi.  A cash out refi can only be done on a property you already own.  You can then use those proceeds to acquire another property. There's no right answer on the type of property you should buy.  I know investors that only buy single family rentals and I know others that avoid single family rentals like the plague.  Depends on what you're looking for and what your long term plan is.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2
  • Votes 111

Ray Wu

replied about 1 month ago
Originally posted by @Salvatore Lentini :

@Ray Wu - I'm a little confused on your question.  You can't acquire a property through a cash refi.  A cash out refi can only be done on a property you already own.  You can then use those proceeds to acquire another property. There's no right answer on the type of property you should buy.  I know investors that only buy single family rentals and I know others that avoid single family rentals like the plague.  Depends on what you're looking for and what your long term plan is.

Hi, thanks. Yes, I should clarify. I have a property and equity in the property for the cash out refinance.

Your raised a good point. My goal is to generate passive income; but with cash out refinance strategy to buy and build equity, it will take a long time for the loans to be paid off and the passive income to kick in. I may need to reconsider my objectives.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 13
  • Votes 31

Andrew Sprague
Rental Property Investor from Boston, MA

replied about 1 month ago

@Salvatore Lentini

I agree, I should have mentioned it’s where I live normally outside of school. I know the area much better than where I attend University.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1
  • Votes 10

Nicole John
New to Real Estate from Phoenix, AZ

replied about 1 month ago

@Salvatore Lentini

Newbie investor here and curious about your response that "99% of the time you can find something 20 miles from where you are" . .. Do just change your strategy to accommodate? Initial plan was to use the BRRR strategy but - in Phoenix - the cash flows don't seem to make sense, as monthly rents are in less than the 1% rule.

Rotate Log in or sign up to reply
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • …
  • 62
  • 63

Related Discussions

  • Starting OutWhat is stopping you from buying your first investment property?Jul 20 2020, 18:59
  • MarketplaceHow to Buy Your 1st Investment PropertyFeb 23 2021, 09:37
  • Real Estate Success StoriesMy YEAR-ISH in review and 1st Flip with PHOTOS! Mar 2 2018, 14:21

Related Blog Posts & Podcasts

  • BiggerPockets Daily 138: How Much Do You Need To Save for Your First Investment Property? by Whitney Hutten Mar 1 2021, 00:00
  • What’s the Most Powerful Business Entity for House Flippers?Mar 1 2021, 12:30
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Dmitriy Fomichenko
Dmitriy Fomichenko
Anaheim Hills, CA
9.29
Score
Antonio Cucciniello
Antonio Cucciniello
Manhattan, NY
7.09
Score
Andrew Postell
Andrew Postell
Fort Worth, TX
6.62
Score
Evan Polaski
Evan Polaski
Cincinnati, OH
4.25
Score
Joe Villeneuve
Joe Villeneuve
Plymouth, MI
3.9
Score

Starting Out Trending Discussions

  • BRRR vs. House Hack - Which is better for a first time investor?
    7 Replies
  • Investing in Chicago
    7 Replies
  • Investing inheritance. Need help
    5 Replies
  • Agreement of Sale - where do I get???
    5 Replies
  • Where to start my journey?
    11 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.