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]

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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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Facundo Gauna
Member since 2022 · 6 posts · 4 votes
4y
Picking a location that is cash-flow positive and has good chance of appreciation. I have friends that were able to get 20% CoC in the market I'm looking for with a conventional loan before the craziness. Now, I'm lucky if I can find something that can have 2% CoC.

Also, I don't have a lot of time on my hands. So things are moving slower than I'd like them to be. I hear that partnering could be a great way to leverage someone else's time, but I need to learn how to structure a partnership.
1 Reply
Account Closed
PA · Member since 2010 · 339 posts · 168 votes
4y
Finding contractors
1 Reply
Jackie Mann
Member since 2022 · 20 posts · 22 votes
4y
Figuring out how to earn/borrow more money in order to fund my 2nd deal. Most of my investment money is still tied up in the first deal as I'm rehabbing and waiting to refinance. Advice anyone?
1 Reply
DJ Baker
Member since 2022 · 6 posts · 1 vote
4y
Just starting out and trying to wrap my head around my toolbox so I can speak somewhat intelligently on the phone with potential sellers. Starting with lease options, lease-to-own right now and just a lot of objection answering. Is there any articles you can point me to on overcoming the biggest Seller Objections in this area? That would be quite helpful as a beginner.
1 Reply
James Bailey
Investor · Member since 2022 · 19 posts · 9 votes
4y
Quote from @Joe Acot:

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 joe,

I don’t know your situation but if you’re able to travel light, nurses in the Bay Area are making 300k with overtime. Could be an opportunity to disappear for two years and come out with some serious cash afterwards.
0 Reply
Nancy PfleghaarPro Member
WA · Member since 2021 · 9 posts · 12 votes
4y
Quote from @Paul Roderick:

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!

Hi Paul - You may be able to get a purchase agreement from a title company. You can also get one drawn up by a RE Attorney which can easily be found on local REI Networks (https://www.facebook.com/group... is pretty active) or you can ask a local RE Agent to help. RI Agents are easy to find on this site. Sherief Elbassuoni is a realtor out of Seattle and he's provided some good guidance in response to some of my posts. Hope this helps. I think this is scary for most just starting out.
2 Reply
Sherief Elbassuoni
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
4y
@Nancy Pfleghaar, thanks for the mention. @Paul Roderick, feel free to reach out if you have any questions. I am local to the Seattle Market and can help you!
Thanks!
5 Reply
Nancy PfleghaarPro Member
WA · Member since 2021 · 9 posts · 12 votes
4y
Yes, I am new to wholesaling. I have two rentals now but I want to wholesale for regular cash flow while I focus the rest of my time acquiring property to BRRRR. For that I'm looking for folks to partner with me as a PML.
2 Reply
Shane Burlingame
Contractor · MA · Member since 2020 · 28 posts · 12 votes
4y
Good question. My biggest hang up is developing the big picture and creating small actionable steps that work towards that vision. I have an idea of where I want to go. It can become overwhelming to have a clear plan, when so many options are available on how to navigate REI. I've started to work more seriously on developing myself and my team to assist my goals. I hope to bring them value in return!
2 Reply
Account Closed
Investor · San Francisco, CA · Member since 2022 · 36 posts · 41 votes
4y
Purchasing my first property seems pretty stressful. Right now my major stressor is I'm unemployed, which makes it harder to get a mortgage. How hard and risky would it be to get a hard money loan even if I find the most amazing deal?
2 Reply
Daniel Ayala
Claremont, CA · Member since 2017 · 6 posts · 4 votes
4y
Hey guys!
Damn! Since I joined BP I have acquired knowledge, cash, and an excellent credit score! I finally feel like I am in a comfortable spot to start investing! My biggest challenge right now is finding a property out of state to buy and hold. I hope everyone else on here is able to overcome their obstacles!
2 Reply
Shane Burlingame
Contractor · MA · Member since 2020 · 28 posts · 12 votes
4y
Quote from @Account Closed:

Purchasing my first property seems pretty stressful. Right now my major stressor is I'm unemployed, which makes it harder to get a mortgage. How hard and risky would it be to get a hard money loan even if I find the most amazing deal?

Jason, I left my job of five years to become self-employed. I pick up part time work to keep the bills paid and not dip into my savings. I'm exploring hard money now, but do not have a concrete answer as to how hard it is to get. There is so much literature here on the site that may benefit you to look into. Brandon Turner has talked up the use of hard money and private equity in his books. It takes work, but seems like it can be rewarding. I am in a similar position as you, wishing you the best.
1 Reply
Michael E.Pro Member
New to Real Estate · Saginaw, MI · Member since 2021 · 99 posts · 115 votes
4y
Hi Trevor,
My most immediate challenge is finding a good PM and quality contractors. My current PM has totally failed me. I called/emailed 8 other PMs and only 3 ever responded. Of those, only one actually manages properties in that area. Same thing with good contractors. So I just keep employing "the power of one more". One more call, one more email, one more contact list, until I find the right people.
2 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@Trevor Riley- as a lender - the present pricing for 2nd homes and inv homes is challenging right now ...in most cases we are no able to offer any par pricing to clients and have to charge a large loan fee ...this makes the deals much less attaractive for many investors
1 Reply
Belliny Flores
Flipper/Rehabber · Tucson, AZ · Member since 2021 · 15 posts · 6 votes
4y
I'm so confused with all the uncertainty going on with the market right now. I read posts saying buy now but then I see other posts saying to hold off because we're heading into a recession and that will be the best time to buy. But if I wait until the recession I feel there will be ton of competition so I'm completely stuck!
1 Reply
Trevor RileyPro Member
OP
Head of Product at BiggerPockets · Saratoga Springs, UT · Member since 2022 · 22 posts · 23 votes
4y
Quote from @Joshua Messinger:

This is a good one!
I have noticed over the past couple of weeks one of the biggest challenges I've faced is with organizing and making sure I'm using time efficiently.
When you waste time and aren't moving in a direction with meaning/purpose it can do damage to you emotionally and physically. I recommend making sure that you are taking care of yourself on all levels whether it be business-wise, health-wise, or financially. Don't let yourself forget why you get started and take every day with a grain of salt.
Keep crushing everyone!!
All the best,
Josh

That's a really interesting insight. How do you keep yourself organizing? What is specifically painful? I'd love to learn more!
[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 @Leo R.:

@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!

@Leo R. Thank you for sharing! Very interesting and thoughtful comments.
[email protected]
1 Reply
Craig Yoho
New to Real Estate · Member since 2021 · 6 posts · 3 votes
3y
Currently struggling to find a multi family that meets the 1%/2% rule in the areas I'm looking to invest in. Hoping the market levels back out.
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