What is your biggest challenge right now?

Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes

Hello new investors! My name is Trevor Riley, I'm Head of Product at BiggerPockets. I have a very simple question I would love to hear from as many of you as possible:

What is your biggest challenge right now?

Whether you recently closed on your first investment property, are just thinking about getting into it, or are anywhere between, let me know what the largest challenge or problem you are facing right now that must be resolved for you to keep moving towards achieving your long term financial goals.

[email protected]

10 Reply

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Joe Acot

Chicagoland Area · Member since 2021 · 4 posts · 13 votes

biggest challenge is getting in the game already. Im a full time registered nurse, was inspired by rich dad poor dad, found bigger pockets, read BT's book and BRRRR book, and now looking to get out of healthcare for more feedom and time for myself family friends and other people.

The books taught me the things i need to do to get ready like get bigger pockets PRO, analyze deals, get pre approved, be active in BP forums etc etc but i just dont do it. too busy too tired or whatever.

I have my "WHY" but i guess im just terrified of getting out of my comfort zone and take on the challenge. Plus im an introvert kinda person so its hard for me to reach out to other people.

Any of you guys are introverts too and founf success in real estate? how did you overcome YOU and finallt did it?

You guys have a great day!

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Nancy PfleghaarPro Member
WA · Member since 2021 · 9 posts · 12 votes
4y
Right now, I need to find end buyers for properties that I intend to wholesale in the areas of King, Pierce and Thurston counties of the WA Puget Sound.
6 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Nancy Pfleghaar:

Right now, I need to find end buyers for properties that I intend to wholesale in the areas of King, Pierce and Thurston counties of the WA Puget Sound.

Hi Nancy,
Thanks for your response! Is this your first experience with wholesaling? Has it been more challenging to find end buyers than you thought?
[email protected]
0 Reply
Cody Morrell
Bismarck, ND · Member since 2022 · 10 posts · 8 votes
4y
Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.
Also, getting my head out of my backside and starting to take the steps to get my first rental.
1 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Cody Morrell:

Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.
Also, getting my head out of my backside and starting to take the steps to get my first rental.

Thanks for sharing, Cody! It looks like you have an idea of what criteria to use. What would give you the confidence to know that you have the right criteria for you? Is that the only thing holding you back from starting to take the steps to get your first rental? You got this!
[email protected]
0 Reply
Luke Dixon
Investor · Nashville TN · Member since 2020 · 7 posts · 7 votes
4y
My biggest challenge is deal flow, cant seem to find the right deals.
2 Reply
Sharyn Mousseau
Member since 2020 · 5 posts · 9 votes
4y
My biggest challenge is finding financing for my next opportunity. Originally we were trying to find someone to finance my portfolio of 5 properties that we paid cash for. Individually they are worth on average of $60K; each netting anywhere from $550-1100/mo. I'm finding it frustrating. I talked to local banks (to the homes) and since I do not live in the state my properties are, they won't lend. Other portfolio lenders I spoke with have a minimum loan of $50K per property at 75% of the value...so I just miss that mark. I'm considering rolling my IRA into a Self Directed IRA (& Learning all the rules to that) and going that route to finance our next purchase. I'd love other suggestions on leveraging the properties I have or other strategies I'm missing....I'm new at this!
6 Reply
Account Closed
Realtor · Colorado Springs, CO · Member since 2021 · 13 posts · 12 votes
4y
My biggest challenge right now is trying to find the right deal and not simply buy one for the sake of getting started. I can put 25% down, but still can't break even on rent with anticipated PITI. Additional funds or paying cash doesn't appear to give me a great return either. So even though its a good home, good neighborhood, perhaps the numbers don't lie?
7 Reply
Dalton King
Real Estate Agent · Melbourne, FL · Member since 2021 · 45 posts · 31 votes
4y
This is a great question! I personally have trouble growing my network. I have never really been too social but after being in the real estate business for almost a year now, I am learning quickly how your network needs to be. My plan to get better at this is exactly what I am doing here. Being active!! I usually just read the forums to learn. It wasn't until my Realtor friend told me to connect with people not only on BP but in real life! This has lead me to meet some super amazing and humble people that I had no idea existed.
This goes for anyone getting started, It's hard and confusing at times but there is an answer! The people here on BP and in the business in general are some of the nicest people ever!
If you are new don't be hesitant to ask questions!!
5 Reply
Preston Donahue
Real Estate Agent · Canton, OH · Member since 2017 · 42 posts · 23 votes
4y
Patience, I'm working on continuing to save more capital for small multifamily. The waiting in killer. Of course I'll continue to analyze properties, so I'll just wait and save so I can add to my portfolio.
3 Reply
Tom Dempsey
Home Stager · Poconos, PA · Member since 2022 · 45 posts · 30 votes
4y
Working on building capital and getting enough in the bank to be able to buy my first investment. I don't want to rush anything as I have seen a bunch of other people my age and a little older get out of the gate too quickly and its only hurt them. It is rough waiting as the excitement levels climb but I am in it for the long haul!
3 Reply
Christian EhlersBusiness Member
Real Estate Agent · NH & MA · Member since 2021 · 457 posts · 291 votes
4y
Currently running my agent business and Airbnb business the biggest challenges are knowing where I should personally be spending my time and which tasks to prioritize first. It can be extremely easy to get caught up "working in the business" as opposed to "working on the business". In my agent business its hard to determine what I should spend my extra time on once I'm done following up with leads, running CMA's and conducting appointments. Do I work on my CRM, do I work on a google business page, orrrr do I continue to post and make connections on bigger pockets (I think we know the answer) :)
In my Airbnb business I find myself changing my prices, messaging guests when they have questions, and doing small things to make guests stays better. With it only being myself and my team of cleaners and handymen doing everything, it's hard to know when I can bring in somebody else to help with the busy work!
[email protected]978-396-9939
2 Reply
Luke Nietfeld
Investor · Member since 2022 · 1 post · 2 votes
4y
Down payment and getting people to partner with. I have lots of ideas for luxury STR on lakes is Minnesota and Wisconsin to make them stand out, but struggle with the funds and finding people that want to partner with a first time investor.
2 Reply
Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
4y
The target for what we can afford in an STR purchase has changed due to interest rates, falling occupancy and lower average daily rates. We have to make sure the income will completely cover the expenses and still return the COC we need. Any one of those factors alone wouldn't change the underwriting too much, but the trifecta means we have to be even more conservative in our underwriting than we normally are. Our target market isn't cheap. Fortunately, we're also seeing home prices soften a bit, some price reductions and longer days on market so we expect those factors will help balance out the others.
[email protected]
1 Reply
Cody Morrell
Bismarck, ND · Member since 2022 · 10 posts · 8 votes
4y
Quote from @Trevor Riley:

Quote from @Cody Morrell:

Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.
Also, getting my head out of my backside and starting to take the steps to get my first rental.

Thanks for sharing, Cody! It looks like you have an idea of what criteria to use. What would give you the confidence to know that you have the right criteria for you? Is that the only thing holding you back from starting to take the steps to get your first rental? You got this!
I appreciate the encouragement, Trevor!

Repetition in analyzing deals would give me confidence and also going through the whole process of getting pre-approved, getting the right leads, making sure the numbers work, putting in offers and succeeding. Pretty much doing the whole LAPS process.

So far I am one step in with getting pre-approved and I already have a local investor/agent I’m going to meet up with to help me with leads!
1 Reply
Aaron Cox
Member since 2021 · 4 posts · 1 vote
4y
Trying to pick a market and build a team to help the out of town investor
1 Reply
Joe Acot
Chicagoland Area · Member since 2021 · 4 posts · 13 votes
4y
biggest challenge is getting in the game already. Im a full time registered nurse, was inspired by rich dad poor dad, found bigger pockets, read BT's book and BRRRR book, and now looking to get out of healthcare for more feedom and time for myself family friends and other people.
The books taught me the things i need to do to get ready like get bigger pockets PRO, analyze deals, get pre approved, be active in BP forums etc etc but i just dont do it. too busy too tired or whatever.
I have my "WHY" but i guess im just terrified of getting out of my comfort zone and take on the challenge. Plus im an introvert kinda person so its hard for me to reach out to other people.
Any of you guys are introverts too and founf success in real estate? how did you overcome YOU and finallt did it?
You guys have a great day!
8 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Luke Dixon:

My biggest challenge is deal flow, cant seem to find the right deals.

Luke, that can be a challenge for sure. How strict is your criteria? Are you finding "good" deals but not "great" deals? How much is the challenge about having the right tools/platform to find the deals? You got this!
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Sharyn Mousseau:

My biggest challenge is finding financing for my next opportunity. Originally we were trying to find someone to finance my portfolio of 5 properties that we paid cash for. Individually they are worth on average of $60K; each netting anywhere from $550-1100/mo. I'm finding it frustrating. I talked to local banks (to the homes) and since I do not live in the state my properties are, they won't lend. Other portfolio lenders I spoke with have a minimum loan of $50K per property at 75% of the value...so I just miss that mark. I'm considering rolling my IRA into a Self Directed IRA (& Learning all the rules to that) and going that route to finance our next purchase. I'd love other suggestions on leveraging the properties I have or other strategies I'm missing....I'm new at this!

Hi Sharyn! That's an interesting challenge especially with a portfolio that seems to be doing really well. How difficult has it been to figure out which lenders to even reach out to? I'm not an expert in this area, so I wish I had some good advice for you but I am sure there are folks in our community who have some ideas.
[email protected]
1 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Account Closed:

My biggest challenge right now is trying to find the right deal and not simply buy one for the sake of getting started. I can put 25% down, but still can't break even on rent with anticipated PITI. Additional funds or paying cash doesn't appear to give me a great return either. So even though its a good home, good neighborhood, perhaps the numbers don't lie?

Hey Ramond, thanks for sharing! How do you go about looking for deals? Are you looking locally or out of state? Good luck!
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Dalton King:

This is a great question! I personally have trouble growing my network. I have never really been too social but after being in the real estate business for almost a year now, I am learning quickly how your network needs to be. My plan to get better at this is exactly what I am doing here. Being active!! I usually just read the forums to learn. It wasn't until my Realtor friend told me to connect with people not only on BP but in real life! This has lead me to meet some super amazing and humble people that I had no idea existed.
This goes for anyone getting started, It's hard and confusing at times but there is an answer! The people here on BP and in the business in general are some of the nicest people ever!
If you are new don't be hesitant to ask questions!!

Hey Dalton, that is great insight! I regularly hear how important it is for new investors to find and connect with a mentor. I'm sure you'll find and connect with great people within our community!
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Preston Donahue:

Patience, I'm working on continuing to save more capital for small multifamily. The waiting in killer. Of course I'll continue to analyze properties, so I'll just wait and save so I can add to my portfolio.

Preston, patience is hard! Thanks for sharing. Have the recent economic conditions changed the amount of capital you need to save? Have they made it harder to save?
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Tom Dempsey:

Working on building capital and getting enough in the bank to be able to buy my first investment. I don't want to rush anything as I have seen a bunch of other people my age and a little older get out of the gate too quickly and its only hurt them. It is rough waiting as the excitement levels climb but I am in it for the long haul!

Tom, thanks for sharing! It sounds like you and Preston are in the same boat. What does it look like to get out of the gate too quickly to you? Being over leveraged? Not waiting for the best deal to come along?
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Christian Ehlers:

Currently running my agent business and Airbnb business the biggest challenges are knowing where I should personally be spending my time and which tasks to prioritize first. It can be extremely easy to get caught up "working in the business" as opposed to "working on the business". In my agent business its hard to determine what I should spend my extra time on once I'm done following up with leads, running CMA's and conducting appointments. Do I work on my CRM, do I work on a google business page, orrrr do I continue to post and make connections on bigger pockets (I think we know the answer) :)
In my Airbnb business I find myself changing my prices, messaging guests when they have questions, and doing small things to make guests stays better. With it only being myself and my team of cleaners and handymen doing everything, it's hard to know when I can bring in somebody else to help with the busy work!
Christian, it sounds like you are a busy person! I'm curious to know what you think would help provide the clarity you need to know where and how to allocate your most precious resource (time)? Do you feel like you end up spending too much time on tasks that should be easier/faster/automated?
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Luke Nietfeld:

Down payment and getting people to partner with. I have lots of ideas for luxury STR on lakes is Minnesota and Wisconsin to make them stand out, but struggle with the funds and finding people that want to partner with a first time investor.

Luke, thanks for sharing! Has it been more of a challenge finding potential partners to pitch to or just getting a potential partner to buy in?
[email protected]
0 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Bonnie Low:
The target for what we can afford in an STR purchase has changed due to interest rates, falling occupancy and lower average daily rates. We have to make sure the income will completely cover the expenses and still return the COC we need. Any one of those factors alone wouldn't change the underwriting too much, but the trifecta means we have to be even more conservative in our underwriting than we normally are. Our target market isn't cheap. Fortunately, we're also seeing home prices soften a bit, some price reductions and longer days on market so we expect those factors will help balance out the others.

Hey Bonnie, thanks for sharing! That's a tough trifecta to navigate against. Has it made you consider alternate markets?
[email protected]
0 Reply

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