So what's holding you back?

Providence, Rhode Island
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So what's holding you back?

Frank Patalano
Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes

"What is holding you back?"

4 years ago this week, I asked this question and it got thousands of responses. The market roared upward for 3 years after that. Over the last year, interest rates have increased and it has affected some markets more than others... I'm not an agent. I'm just an investor that helps others.

When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger. So I'll ask here.


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Nathan GesnerBusiness Member
Moderator
Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
3y

I doubt you'll see thousands of responses. The majority of people are blaming high prices, high interest rates, low inventory, and lots of competition. Those are all true. It's not a great market right now and I expect it will get worse before it gets better.

David Greene compares it to swimming against the current. You can sit on the shoreline and wait for the current to change in your favor or you can keep swimming against the current. Those that continue to swim against the current may not make much progress, and they may even go backwards, but they will continue improving their technique and getting stronger. When the currents eventually shift, the people sitting on the shore will be late to notice the shift and they'll take time to get back into a rythm. Meanwhile, those that stayed in the water will take off like rockets and blow away the competition.

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  • Ray Hage
    Investor 路 Fort Lauderdale, FL 路 Member since 2020 路 1k+ posts 路 755 votes
    3y

    I am investor and realtor myself. I ask this question all the time. For those unqualified, it is usually finances. For those who have a good job and free time, it's usually fear like "What if the market crashes", "dealing with tenants seems hard", "I dont want to risk my 9-5"

    2Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Ray Hage:

    I am investor and realtor myself. I ask this question all the time. For those unqualified, it is usually finances. For those who have a good job and free time, it's usually fear like "What if the market crashes", "dealing with tenants seems hard", "I dont want to risk my 9-5"


     Risk their 9-5? Wow that is quite an excuse. Are you able to get any of them to overcome those fears, or would you say that if you heard that it is too late?

    1Reply
  • Kerry Noble JrPro Member
    Investor 路 Indianapolis, IN 路 Member since 2018 路 2k+ posts 路 1k+ votes
    3y
    Quote from @Jaron Walling:

    @Nathan Gesner 1000% agree. People don't get strong without swimming. We have struggled to find deals and capital but we succeeded at finding, vetting, and working with new contractors. Guys that charge realistic prices and don't rip you off. 


     agreed!!

    0Reply
  • Ryan ThomsonBusiness Member
    Real Estate Agent 路 Colorado Springs, CO 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y

    @Frank Patalano really great question. Following to see the responses

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  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Ryan Thomson:

    @Frank Patalano really great question. Following to see the responses


     Thanks. When I posted it 4 years ago, Brandon T even mentioned it on the podcast. I even did a presentation based on the answers. Sometimes you just have to hit the algorithm. 

    1Reply
  • Constancia R.
    IN 路 Member since 2017 路 96 posts 路 63 votes
    3y
    I can only afford to do one or two deals, which will take the cash I have. Then what if something else (better) comes along and I'm short cash? Just haven't found much that makes me say YES. The few that I have were scarfed up in a matter of hours.
    1Reply
  • Jay ThomasPro Member
    Real Estate Agent 路 Houston, TX 路 Member since 2021 路 1k+ posts 路 715 votes
    3y

    Having a strong vision and purpose when it comes to real estate is key in order to have strong goals. It can be difficult to stay motivated if you don't know what you're working towards, so having a well-defined plan of action can help keep you on track and focused. Having clear short-term and long-term goals will help guide your decisions and allow you to measure your progress over time. When setting these goals, it's important to make sure they are achievable, realistic, and linked with your overall vision and purpose. This way, even small successes can be celebrated! By setting yourself up for success from the outset, you'll be more likely to continue pushing forward for bigger accomplishments.

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    0Reply
  • Mitchell Ryczek
    New to Real Estate 路 Rochester, NY 路 Member since 2023 路 2 posts 路 2 votes
    3y

    Focusing on school right now! I plan to make my first purchase shortly after graduating and starting a full-time career. Doing my best to educate myself, have a plan ready and execute once out of school!

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Constancia R.:
    I can only afford to do one or two deals, which will take the cash I have. Then what if something else (better) comes along and I'm short cash? Just haven't found much that makes me say YES. The few that I have were scarfed up in a matter of hours.

     Have you thought of working with 2 or 3 friends in the same situation? Being a 30% owner on a deal or two is better than pulling off no deals.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Jay Thomas:

    Having a strong vision and purpose when it comes to real estate is key in order to have strong goals. It can be difficult to stay motivated if you don't know what you're working towards, so having a well-defined plan of action can help keep you on track and focused. Having clear short-term and long-term goals will help guide your decisions and allow you to measure your progress over time. When setting these goals, it's important to make sure they are achievable, realistic, and linked with your overall vision and purpose. This way, even small successes can be celebrated! By setting yourself up for success from the outset, you'll be more likely to continue pushing forward for bigger accomplishments.


     Starting with small easy hurdles. I like that. Though I rarely agree with Dave Ramsey, his baby step approach of a debt snow could be used with a goal snowball.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Mitchell Ryczek:

    Focusing on school right now! I plan to make my first purchase shortly after graduating and starting a full-time career. Doing my best to educate myself, have a plan ready and execute once out of school!


    Are you done with school in May? I would highly recommend committing at least 1 day a month to attend a local REIA. There has got to be one in Rochester. You shouldn't have to go to Buffalo or Syracuse. If there is not one then I would recommend starting one. Even if it just having a quick meetup at a local Bar of like minded people once a month.

    0Reply
  • Ray Hage
    Investor 路 Fort Lauderdale, FL 路 Member since 2020 路 1k+ posts 路 755 votes
    3y
    Quote from @Frank Patalano:
    Quote from @Ray Hage:

    I am investor and realtor myself. I ask this question all the time. For those unqualified, it is usually finances. For those who have a good job and free time, it's usually fear like "What if the market crashes", "dealing with tenants seems hard", "I dont want to risk my 9-5"


     Risk their 9-5? Wow that is quite an excuse. Are you able to get any of them to overcome those fears, or would you say that if you heard that it is too late?


     Yea man, I have literally heard "I can't focus on RE because I want to be focused on my career. What if my boss asks me to work OT?" etc. Would I say it's too late to save that person from the corporate slavery mindset. No, not really. Some people will figure it out, you just have to hope it's not when they are 60. My uncle is in his 60s and has hated his job for a long time and yep, will stay there till his retirement. Too late for my people like him but for those that are younger, I think it is worth helping them.

    I heard a good quote yesterday at a networking event "if you work for someone else, you are just a single cell in an Excel spreadsheet and they can delete you very easily." I already know that is going to be burned into my brain forever and I will be telling my potential clients that.

    2Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Ray Hage:
    Quote from @Frank Patalano:
    Quote from @Ray Hage:

    I am investor and realtor myself. I ask this question all the time. For those unqualified, it is usually finances. For those who have a good job and free time, it's usually fear like "What if the market crashes", "dealing with tenants seems hard", "I dont want to risk my 9-5"


     Risk their 9-5? Wow that is quite an excuse. Are you able to get any of them to overcome those fears, or would you say that if you heard that it is too late?


     Yea man, I have literally heard "I can't focus on RE because I want to be focused on my career. What if my boss asks me to work OT?" etc. Would I say it's too late to save that person from the corporate slavery mindset. No, not really. Some people will figure it out, you just have to hope it's not when they are 60. My uncle is in his 60s and has hated his job for a long time and yep, will stay there till his retirement. Too late for my people like him but for those that are younger, I think it is worth helping them.

    I heard a good quote yesterday at a networking event "if you work for someone else, you are just a single cell in an Excel spreadsheet and they can delete you very easily." I already know that is going to be burned into my brain forever and I will be telling my potential clients that.


     Thank god that I decided to start. We I first started buying, I loved my job. 5 years later the job was okay. 4 or 5 years after that I was ready to leave. Thankfully I had assets.

    1Reply
  • Mike ReynoldsPro Member
    construction 路 Nacogdoches, TX 路 Member since 2011 路 2k+ posts 路 1k+ votes
    3y

    What's holding me back?

    There are not enough hours in the week. If we could add another day in there I would be able to achieve even better. 

    I closed on a very large commercial property a month ago and looking at another next week. I don't care about the interest rate or whatever comes next. If the numbers work then they work. 

    I will say that it took me a long time to "get in the game". Same reasons as everyone else. I think I just didn't trust myself. You just have to jump in and get it done. 

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Mike Reynolds:

    What's holding me back?

    There are not enough hours in the week. If we could add another day in there I would be able to achieve even better. 

    I closed on a very large commercial property a month ago and looking at another next week. I don't care about the interest rate or whatever comes next. If the numbers work then they work. 

    I will say that it took me a long time to "get in the game". Same reasons as everyone else. I think I just didn't trust myself. You just have to jump in and get it done. 


    Sounds like you taking action, changed your life. Have you thought about adding an employee to the team to grow Reynolds Inc? Could be an acquisitions person or even a VA.

    0Reply
  • Jennifer Dargento
    New to Real Estate 路 Member since 2023 路 22 posts 路 11 votes
    3y

    Picking a market that鈥檚 big enough to yield a good deal within a few months but small enough that I won鈥檛 be overwhelmed with properties to analyze and pursue.

    1Reply
  • Jessica Mendoza
    New to Real Estate 路 Salida, CA 路 Member since 2022 路 2 posts 路 3 votes
    3y
    Quote from @Frank Patalano:
    Quote from @Jessica Mendoza:

    I own my house. It's way too small to house hack. I would like to purchase an investment property. What is holding me back from the is the amount of debt that I have. A lot of the podcast and financial people that I hear talk, say the first thing that you should do is pay off your debt. It may take me a few years but I'm working on it.

    Welcome to the world of Real Estate Investing...

     I'm not sure who you are listening to. And I am not saying that it is bad advice. There is definitely good debt and bad debt.
    One of my best friends had 6 figures in student loan debt but still bought a quad plex because he needed a place to live anyway. He did quite well with it and the CashFlow ended up helping him pay off his student loan quicker.

    Have you thought about getting a partner to help with the cash outlay? It could be a friend or family member or not.

    You could be the sweat equity in the project. Or maybe only own a small piece to get experience.

    Thank you, Frank.

     Yes, I have thought about going in with a partner. Unfortunately, I have yet to find someone irl that has the same drive and wants or money to make something happen. 

    I would totally be the sweat equity; I'm looking into investing into a duplex this way I can live in one of the units. I would probably have to do an FHA (first time home buyer/my current home was bought under my other half) and I would also rent my current house. I'm looking into places and saving for a down payment. I feel like I'm not going to learn until I do it. But it's scary, not knowing if everything will work out. I also don't want to sit on the side lines forever. So, I'm done/doing my research and using my calculators. 馃榿

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Jennifer Dargento:

    Picking a market that鈥檚 big enough to yield a good deal within a few months but small enough that I won鈥檛 be overwhelmed with properties to analyze and pursue.

    Everyone is different. I actually don't like the biggest markets. Big markets usually mean more competition. But if you feel that way, network and make connections in a medium sized market. A mid sized city nearby. Within a hour of you is preferred but some people love long distance investing. 
    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Jessica Mendoza:
    Quote from @Frank Patalano:
    Quote from @Jessica Mendoza:

    I own my house. It's way too small to house hack. I would like to purchase an investment property. What is holding me back from the is the amount of debt that I have. A lot of the podcast and financial people that I hear talk, say the first thing that you should do is pay off your debt. It may take me a few years but I'm working on it.

    Welcome to the world of Real Estate Investing...

     I'm not sure who you are listening to. And I am not saying that it is bad advice. There is definitely good debt and bad debt.
    One of my best friends had 6 figures in student loan debt but still bought a quad plex because he needed a place to live anyway. He did quite well with it and the CashFlow ended up helping him pay off his student loan quicker.

    Have you thought about getting a partner to help with the cash outlay? It could be a friend or family member or not.

    You could be the sweat equity in the project. Or maybe only own a small piece to get experience.

    Thank you, Frank.

     Yes, I have thought about going in with a partner. Unfortunately, I have yet to find someone irl that has the same drive and wants or money to make something happen. 

    I would totally be the sweat equity; I'm looking into investing into a duplex this way I can live in one of the units. I would probably have to do an FHA (first time home buyer/my current home was bought under my other half) and I would also rent my current house. I'm looking into places and saving for a down payment. I feel like I'm not going to learn until I do it. But it's scary, not knowing if everything will work out. I also don't want to sit on the side lines forever. So, I'm done/doing my research and using my calculators. 馃榿


     I still get a little nervous during every deal. So many what ifs. What if I'm wrong. What if I missed something. 

    I hope that you have joined your local REIA. 1 or 2 meetings a month around other investors.

    This is definitely a team sport if you can find the right friends/connections.

    0Reply
  • Mitchell Ryczek
    New to Real Estate 路 Rochester, NY 路 Member since 2023 路 2 posts 路 2 votes
    3y

    I finish undergrad in May; however, I have another year for my MSA and plan to sit for the CPA exam. I go to school in Buffalo, so I will into  any REIAs out that way. Thanks!

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Mitchell Ryczek:

    I finish undergrad in May; however, I have another year for my MSA and plan to sit for the CPA exam. I go to school in Buffalo, so I will into  any REIAs out that way. Thanks!


     With a background in Accounting and Finance you should do fine. Most Accountants are a little too conservative but one of our CPAs locally is a house flipper as well. Good Luck.

    0Reply
  • Quenton Runge
    Rental Property Investor 路 Chicago, IL 路 Member since 2022 路 5 posts 路 3 votes
    3y

    @Frank Patalano

    Finances

    I'm eager to start and have been tempted to start for so long. My W-2 paycheck is constant but with a ceiling and real estate investing is not as secure in terms of getting paid on a routine basis but the ceiling is endless. Nonetheless, still haven't committed to investing full time. Not completely favorable markets at the moment but im not too worried because the market, holistically, is linear.

    I'm located in the distant suburbs of Chicago and have been researching pop. growth around me recently, many towns around are some of the highest growing in Illinois.

    Knowing the political aspects of Illinois, I wouldn't dare invest in rentals but rather flips. Just updated my primary and looking forward to acquiring a HELOC to potentially support part of my finance for future flips but in a perfect world, I would greatly appreciate a Cash Investor.k

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor 路 East Providence, RI 路 Member since 2018 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Quenton Runge:

    @Frank Patalano

    Finances

    I'm eager to start and have been tempted to start for so long. My W-2 paycheck is constant but with a ceiling and real estate investing is not as secure in terms of getting paid on a routine basis but the ceiling is endless. Nonetheless, still haven't committed to investing full time. Not completely favorable markets at the moment but im not too worried because the market, holistically, is linear.

    I'm located in the distant suburbs of Chicago and have been researching pop. growth around me recently, many towns around are some of the highest growing in Illinois.

    Knowing the political aspects of Illinois, I wouldn't dare invest in rentals but rather flips. Just updated my primary and looking forward to acquiring a HELOC to potentially support part of my finance for future flips but in a perfect world, I would greatly appreciate a Cash Investor.k


    I would join a local REIA.
    I have friends in IL. Some are landlords, some are not. Flipping is a great idea.
    It sounds like you need a partner who has some money but less time than you.

    1Reply
  • Quenton Runge
    Rental Property Investor 路 Chicago, IL 路 Member since 2022 路 5 posts 路 3 votes
    3y

    @Frank Patalano

    Completely agree, im well knowledged with renovating and would be very helpful with keeping costs down, maximizing profits. Connecting with cash investors is a priority at the moment and is the main reason for my stagnation. That would be greatly appreciated if you have locals that would be looking to financially invest locally around the Chicago suburbs.

    I would never want and exchage to be 1 way, is there anything I could do that you would benefit from?

    I have been looking for local groups but haven't had too much luck.

    1Reply
  • Bud Gaffney
    Rental Property Investor 路 Boston, MA 路 Member since 2019 路 2k+ posts 路 1k+ votes
    3y

    Nothing is holding me back. BUT there's only 1 word to answer this question.

    F E A R!!!!!!!!

    3Reply
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