What is your biggest challenge right now?
Trevor RileyPro Member
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votesHello 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.
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!
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!!
Same here haha. Feel free to send me a connection request. I believe you can never know too many people in real estate.
Hi Trevor
I'm still a noob
Right now, my biggest challenge is getting my 1st House-Hack with my wife.
The challenge is that most of our income comes from our Interior/Architectural Design business which has only been making money for a year.
I've looked into partnering up with people for a loan, but no one has proven reliable.
We're currently looking for Off Market Deals to see if we can get something Subto or Owner Financed.
This has been a very difficult thing to find as we live in New York. I've been at this for months now and haven't had a single response yet to any of my Direct Mail Campaigns.
Any advice would be greatly appreciated.
My biggest struggle right now is finding a deal that works. I have one rental that I've had for years that was a house hack, things are fine there. I have the available capital, but everything I come across in the Puget Sound Area of Washington, just won't cash flow properly taking into consideration vacancies, and reserves for capital improvements.
@Eric Coats, in our market, most houses will not cash flow if we rent the whole house to one family. You will need to either rent by room, do STR, or split level houses so that you can rent the whole house to two families
Gathering initial accurate data and deciding on an area to focus for my first deal
I was given money at 21, and basically my entire life I was told to be afraid of it. My family's background was in businesses, and then the experience disappeared generation after generation. So I am completely on my own. I started house research investing when I was 28 because i was tired of working for other people, and Sold my first home that I owned and made a good chunk of money, and then used that to buy a rental condo. I didn't buy it in full because I was clueless about things such as; the debt to income ratio changes immensely, and when applying for a new mortgage for another property, they only count 75% of the income. Right now I have my house and the rental, and the income for the rental after the management, and mortgage and HOA fees I make about 135/mo, so clearly thats nothing. I am completely stuck on how to get property number 2 or how to make better money of rentals. I can't play in my current state's market as house prices have borderline reached California levels. I don't know what to do or who to talk to about getting to step number 2.
@Sharyn Mousseau believe it or not I funded my first property through my Self Directed IRA and it has worked great. If I had more money in it I would fund more deals that way. It is a great way to invest.
@Trevor Riley the biggest challenge I have now is funding my next deal. The traditional route wants 25% down and I want to put down more like 15% but maybe I'm not being realistic. Was also thinking about trying to find a seller finance deal in the Greensboro, NC area.
@Trevor Riley this is an interesting question, because I think a lot of people (myself included) are experiencing challenges that they weren't experiencing prior to the rate hikes, and the subsequent significant shifts in the market.
For many investors, agents, mortgage brokers, etc., the last several years in real estate have been relatively predictable and relatively easy to navigate. People who were at least somewhat competent got in a "rinse and repeat" rhythm:
-Mortgage brokers had tons of applications and refis to work on (and more came in every day).
-Agents could easily sell houses with offers rolling in and bidding wars all around.
-Investors were in a straightforward cycle of buying, watching appreciation grow, refi'ing to a lower rate, and buying again.
Rinse and repeat, rinse and repeat, on and on forever, amen.
Now, the market dynamic is so different that many folks' biggest challenge is figuring out the next step in a market--and a broader economy--that is very alien to most of us.
-What does that mortgage broker do when they go from processing more loans than ever, to suddenly having nothing but tumbleweeds rollin' through their office?
-What does that agent do when there's suddenly a noticeable decrease in demand?
-What does that investor do when they can no longer refi to a lower rate, and 1031'ing won't pencil out because they'd be going from a 3.5% to a 6.5%?
...it's like a pilot who proficiently flies 747s for twenty years back and forth, back and forth, back and forth across the country...until one day, they're told that they have to fly a rocket to outer space. Can that old dog learn a new trick?
The sad truth is: there will be people who find themselves a victim--sometimes through no fault of their own--of this quick and significant shift in the market. Some folks are losing their livelihoods as we speak. Others are about to find themselves in a very tough situation with insufficient resources to weather the storm. As Warren Buffet says: “Only when the tide goes out do you discover who's been swimming naked.”
On the bright side, as with any market shift, new opportunities are arising--and it's our role to identify those opportunities and pursue them in a professional, calculated, and conservative manner.
Personally, I'm still working on trying to figure out my own next step, but I think I'm closing in on a few prospects...As the Bear Grylls meme says: "Improvise. Adapt. Overcome."
Good luck out there!
Biggest challenge right now is finding good contractors that worked with investors. My previous contractor was booked out several weeks and had to find a 2nd and that process was incredibly difficult. Another challenge is rising prices.
I can't seem to find any deals that make positive cash flow an option unless I put more than 20% down which I'm not sure I want to be leveraged at more than 20% equity at least in the beginning of pursing a first rental property.
My biggest problem is deciding whether to sell my home that has built-up equity or list it for rent. It is currently between tenants and would like to buy a new primary residence possibly a multifamily deal. I think the best option would be to rent the property and pull out a HELCO to help with the down payment of the new primary residence/multifamily complex. I would be able to afford a nicer/bigger complex if I were to sell the property but I don't want to lose the current cash flow and loan rate I currently have. I would love to hear the communities opinion. Thank you!
@Sharyn Mousseau believe it or not I funded my first property through my Self Directed IRA and it has worked great. If I had more money in it I would fund more deals that way. It is a great way to invest.
@Trevor Riley the biggest challenge I have now is funding my next deal. The traditional route wants 25% down and I want to put down more like 15% but maybe I'm not being realistic. Was also thinking about trying to find a seller finance deal in the Greensboro, NC area.
Have you looked into using hard money to fund your projects and then BRRRR-ing them? There are some good hard money lenders, like Sherman Bridge, that fund deals in the Triad. They can fund up to 90% of the property and 100% of the renovation. They can also secure funding within a week which can be super helpful when trying to lock down the fast moving deals.
@Sharyn Mousseau believe it or not I funded my first property through my Self Directed IRA and it has worked great. If I had more money in it I would fund more deals that way. It is a great way to invest.
@Trevor Riley the biggest challenge I have now is funding my next deal. The traditional route wants 25% down and I want to put down more like 15% but maybe I'm not being realistic. Was also thinking about trying to find a seller finance deal in the Greensboro, NC area.
Thank you Pamela! I appreciate your testimonial on that!
@Sharyn Mousseau believe it or not I funded my first property through my Self Directed IRA and it has worked great. If I had more money in it I would fund more deals that way. It is a great way to invest.
@Trevor Riley the biggest challenge I have now is funding my next deal. The traditional route wants 25% down and I want to put down more like 15% but maybe I'm not being realistic. Was also thinking about trying to find a seller finance deal in the Greensboro, NC area.
Have you looked into using hard money to fund your projects and then BRRRR-ing them? There are some good hard money lenders, like Sherman Bridge, that fund deals in the Triad. They can fund up to 90% of the property and 100% of the renovation. They can also secure funding within a week which can be super helpful when trying to lock down the fast moving deals.
Thank you Michelle. I appreciate your suggestions and will follow up on those.
Finding deals has been rough. Little inventory, which gets snatched up in hours. Would like to start small with a condo and go from there.
I need a deal that can change my life but I don't have any income statement how can i get approved for a investment property
My biggest challenge right now is knowing where to start I’m new to this and I’ve been reading real estate books and started the ultimate beginners guide and listening to podcast and I’m finding challenging looking for seminars or looking for real estate agents in my area, so I can get an idea of negotiations and coming to an agreement works.
I need a deal that can change my life but I don't have any income statement how can i get approved for a investment property
What market? You can get approved for a mortgage and house hack your first property!
My biggest challenge right now is knowing where to start I’m new to this and I’ve been reading real estate books and started the ultimate beginners guide and listening to podcast and I’m finding challenging looking for seminars or looking for real estate agents in my area, so I can get an idea of negotiations and coming to an agreement works.
Connect connect connect! Have you gone to any REI meetings in your area?
My biggest challenge is finding the right list to direct mail market too. I am ready to pull the trigger on a rental property. I want to complete a BRRR but do not know the best strategies to look for the deal.
My biggest challenge right now is knowing where to start I’m new to this and I’ve been reading real estate books and started the ultimate beginners guide and listening to podcast and I’m finding challenging looking for seminars or looking for real estate agents in my area, so I can get an idea of negotiations and coming to an agreement works.
Connect connect connect! Have you gone to any REI meetings in your area?
My biggest challenge right now is knowing where to start I’m new to this and I’ve been reading real estate books and started the ultimate beginners guide and listening to podcast and I’m finding challenging looking for seminars or looking for real estate agents in my area, so I can get an idea of negotiations and coming to an agreement works.
Connect connect connect! Have you gone to any REI meetings in your area?
My biggest challenge is figuring out how to get my foot in the door. I want to get started, but I feel I need to become better aware of the financing options that can be used for the first property.
Currently my biggest challenge is working through a slight plateau. We want to continue scaling, but our momentum has slowed some. We don't have the disposable cash to continue buying at the rate we started at, so I would like to find a way to quickly come up with down payments to continue expanding.
I need a deal that can change my life but I don't have any income statement how can i get approved for a investment property
What market? You can get approved for a mortgage and house hack your first property!
Good idea but what about the vacancy and other associated fees?
