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!
Hi BP Family. I'm in the Puget Sound area of WA State. I'm fairly new to investing. My strategy was to BRRRR and wholesale for capital. I'm nervous about getting into a house to BRRRR because I'm concerned it won't appraise enough to repay my lenders by the time it's ready because of the market. When it comes to wholesaling, I don't really have a buyer's list for the area. I'm told not to worry about that because there are plenty of buyers but I don't know how to find them. I've also been told that it's wise to double close but haven't found an escrow company that offers that. Any advice would be greatly appreciated.
Hi BP Family. I'm in the Puget Sound area of WA State. I'm fairly new to investing. My strategy was to BRRRR and wholesale for capital. I'm nervous about getting into a house to BRRRR because I'm concerned it won't appraise enough to repay my lenders by the time it's ready because of the market. When it comes to wholesaling, I don't really have a buyer's list for the area. I'm told not to worry about that because there are plenty of buyers but I don't know how to find them. I've also been told that it's wise to double close but haven't found an escrow company that offers that. Any advice would be greatly appreciated.
Hi Nancy, In my opinion, you shouldnt have too many issues with low appraisals right now, as the market isnt hitting crazy new highs every month right now like it was. In reality your bigger risk is the refinance after the remodel, and not knowing where the rates will be at that time. I'd say you should just bake in a slightly higher interest rate when you run estimates :)
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.
Finding a deal for the most part...
I bought my first multi-unit property in March 2020. I lived in one of the units at the time and had plans on renovating a couple of the units. One unit was a complete gut and when the unit was just about down my workers went back to their "real" job and left my project unfinished. It has been sitting that way ever since and have not had any success in finding someone reliable to show up and finish the project. It just needs a little dry wall work finished and a pull down attic ladder installed, as well as the light fixtures. I have since moved 1 1/2 away from this property to a larger area. I am looking to purchase rental properties in my new area now and also interested in flipping properties, but I need to find a reliable crew and investment funds.
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!
My wife and I were blessed enough to just start down the path of Real Estate Investing from a friend a few weeks ago. After the conversation, we flipped our upstairs studio apartment into an Airbnb. We are excited about the cash flow and itching for the next adventure! The biggest challenges we face right now are patience and finding direction:
1) Patience - before we get our first property solely for real estate investing, our goal is to have six months of reserves/emergency funds saved up. We listened to an episode that talked about the importance of having this set aside to make more sound decisions. Looking at the calculations, it looks like we'll be able to hit our goal by the end of August!
2) Finding Direction - as we've recently gotten interested in this realm, the last few weeks have been like drinking water from a fire hose. We keep up with the BiggerPockets podcast and spend some time in the evenings digging into different books (any recommendations for starters?). We're trying to figure out what direction makes the most sense for us right now with where we're at in life: another short-term rental? Single-family long-term rental to get our feet wet? Waiting more and saving up for a smaller multi-family?
It was my goal to get my first post or reply on the BP forum today! Excited for taking the small steps in the right direction on this journey!
@Trevor Riley
My biggest challenge now is weeding through the literally hundreds of unqualified applicants to find a decent tenant for my C class apartments. I have (2) available units now and the vetting has never been this arduous in my 21 years of doing this. For one property I’ve responded to about 300 inquiries in 12 days and I’m STILL no closer to renting it. But I’d rather leave it empty than…..
My biggest challenge right now is figuring out how to earn/borrow more money in order to fund my first real rental property. If I want a smaller down payment requirement, it seems like I need to move, occupy the home, and then I'll go ahead and house hack it. But, the problem is I like my current home (which I'm already hacking) and simply want to start building a portfolio at a distance, but that would require 20% down that I just don't have and would take me a couple of years to achieve. Looking around, it feels like everyone else can just afford to throw down 20% and move on, but I'm hoping that's just because they've been in the game longer than I have.
we are lenders and investor and our biggest challenge is finding good deals and partners to lend to or invest with. Plenty of capital to put out.
Just putting together the pieces and be ready to start 1) wholesaling properties to accumulate capitol, 2) use earned capital for "skin in the game" for private money to begin purchasing rental properties via the BRRRR method. I am now looking to find a solid purchase and sale agreement template to start reaching out to possible sellers. This whole this is very scary but I know that means that I should do it. any tips is more appreciated than you probably know!
@Trevor Riley using the funds on existing properties to fund future properties. We did a cash out refi on our primary and one on an investment back in 2020, but we're pretty much stuck for now due to rising rates 🤷♀️
@Nancy Pfleghaar, You are doing good being on BP. A great group of people in here to help you. You just do not know what you do not know. One of the biggest concerns for the current BRRRS is the what would be the future interest rate when the project is done. No one is expecting another 2008, so you should not be concerned about the appraised value a lot!
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!
My wife and I were blessed enough to just start down the path of Real Estate Investing from a friend a few weeks ago. After the conversation, we flipped our upstairs studio apartment into an Airbnb. We are excited about the cash flow and itching for the next adventure! The biggest challenges we face right now are patience and finding direction:
1) Patience - before we get our first property solely for real estate investing, our goal is to have six months of reserves/emergency funds saved up. We listened to an episode that talked about the importance of having this set aside to make more sound decisions. Looking at the calculations, it looks like we'll be able to hit our goal by the end of August!
2) Finding Direction - as we've recently gotten interested in this realm, the last few weeks have been like drinking water from a fire hose. We keep up with the BiggerPockets podcast and spend some time in the evenings digging into different books (any recommendations for starters?). We're trying to figure out what direction makes the most sense for us right now with where we're at in life: another short-term rental? Single-family long-term rental to get our feet wet? Waiting more and saving up for a smaller multi-family?
It was my goal to get my first post or reply on the BP forum today! Excited for taking the small steps in the right direction on this journey!
I can definitely understand number 2. My advice to clients is to find one thing and dive deep. Become and expert in that one thing in that area. If you like Airbnb, then roll with it. If you prefer long term rentals then go with that. Pick one thing and become the best you can be at it, then start looking for other types of rentals. That's what my most successful advising clients have done whether it's real estate, W2 employee, or business owner.
My biggest challenge right now is figuring out how to earn/borrow more money in order to fund my first real rental property. If I want a smaller down payment requirement, it seems like I need to move, occupy the home, and then I'll go ahead and house hack it. But, the problem is I like my current home (which I'm already hacking) and simply want to start building a portfolio at a distance, but that would require 20% down that I just don't have and would take me a couple of years to achieve. Looking around, it feels like everyone else can just afford to throw down 20% and move on, but I'm hoping that's just because they've been in the game longer than I have.
Hey Nicholas, you can borrow from retirement accounts to fund your next deal. I help people do that all the time.
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.
I'm not sure if your debt averse or have it available, but you can borrow from retirement accounts to fund your next deal.
@Trevor Riley using the funds on existing properties to fund future properties. We did a cash out refi on our primary and one on an investment back in 2020, but we're pretty much stuck for now due to rising rates 🤷♀️
Have you considered using/borrowing against retirement funds? I help people out with that kind of stuff.
We just closed on a property in New Braunfels, TX that needed no rehab. We got slightly below market value by waiving the appraisal and financing contingencies, but still had to put 30% down to achieve pure cash flow after accounting for potential repairs, vacancies, etc.
My biggest struggle right now is finding deals in the area that can be refinanced within a year or two to get our capital out and do it again, but still cash flow positive. My gameplan is to network with people on the forum here to "build a team" in the area of experienced investors, realtors, contractors and PMs who can help offset my lack of experience.
My biggest challenge right now is figuring out if I should switch markets or buckle down and try harder in my current market. (wholesaling in Middle Tennessee)
Keeping operations up to pace with opportunity. We've always had the good problem of scaling fast. Of course with this comes the constant need to improve operations. Work in the business but work on the business. Now more then ever, there are so many opportunities out there.
Biggest challenge right now is selling properties! I have 10 listings and only 4 under contract and the days on market for my other listings is well over 30 on average. The sellers are generally still not accepting that the market has shifted and in certain price points is down 5-10% and they are losing all their profit to holding costs. The average homeowners and wholesalers are accepting it but the flippers do not seem to be on board especially if they purchased these properties when rates were lower.
I'm copying what someone else said - My biggest challenge right now is figuring out how to earn/borrow more money in order to fund my second rental property.
While my cash is tied up in rehabbing the first property and then waiting to refinance, I'm seeing other potentially good deals pass me by.
My wife and I were blessed enough to just start down the path of Real Estate Investing from a friend a few weeks ago. After the conversation, we flipped our upstairs studio apartment into an Airbnb. We are excited about the cash flow and itching for the next adventure! The biggest challenges we face right now are patience and finding direction:
1) Patience - before we get our first property solely for real estate investing, our goal is to have six months of reserves/emergency funds saved up. We listened to an episode that talked about the importance of having this set aside to make more sound decisions. Looking at the calculations, it looks like we'll be able to hit our goal by the end of August!
2) Finding Direction - as we've recently gotten interested in this realm, the last few weeks have been like drinking water from a fire hose. We keep up with the BiggerPockets podcast and spend some time in the evenings digging into different books (any recommendations for starters?). We're trying to figure out what direction makes the most sense for us right now with where we're at in life: another short-term rental? Single-family long-term rental to get our feet wet? Waiting more and saving up for a smaller multi-family?
It was my goal to get my first post or reply on the BP forum today! Excited for taking the small steps in the right direction on this journey!
I can definitely understand number 2. My advice to clients is to find one thing and dive deep. Become and expert in that one thing in that area. If you like Airbnb, then roll with it. If you prefer long term rentals then go with that. Pick one thing and become the best you can be at it, then start looking for other types of rentals. That's what my most successful advising clients have done whether it's real estate, W2 employee, or business owner.
Absolutely agree! I think it goes back to the old adage, you can either half butt two things, or whole butt one thing and put your all into that.
My biggest challenge is being patient trying to save up some capital for my first deal. We have a plan but as I am analyzing properties I am finding it extremely difficult to find a deal that could work in our market. We are in an expensive market in the DMV area so trying to get creative with deal options has been tough. Looking to use the VA loan but it seems without money down with deals I am analyzing we are always coming out in the negative..
My biggest challenge right now is organizing the accounting and books to better prepare for next year's taxes, keep better track of my properties and profits/losses plus build solid practices now so that I am able to scale as I move forward. I just recently listened to BP podcast episode 635, and when Sam was discussing starting out and things not being tracked well, I could relate. I am ready to scale but know I need to hammer down solid financing and taxes but struggling with where to begin. I would love suggestions to begin this and set myself up for long-term success as I scale in the next couple of years. Thanks, everyone!
