So what's holding you back?
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
So what's holding you back?
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yI 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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115 Replies
- New to Real Estate · North Riverside, IL · Member since 2023 · 6 posts · 4 votes3yI will definitely be doing this. I just need to find one or two lenders to talk to about doing this with FHA.
Quote from @Paul De Luca:
Quote from @Nkeonye Nkemdi:
For me what's holding me back is fear, feeling like I don't know enough to move forward along with over-analyzing everything, not having enough in savings to afford covering expenses and wanting to move fast and take action. A lot of things going on and knowing I need to work on my mindset, set goals and get clear about what I want.
I am currently in a suburb of Chicago and have never owned a property. I do not rent and am learning about house hacking. I would like to get into a multifamily 4 unit and stay in one of the units.
A good first step would be to connect with a lender to explore your financing options and talk with an agent about your strategy.
- Member since 2023 · 2 posts · 1 vote3y
Great question,
What holds me back is the lack of funds for a down payment and the thought of my family judging me. I have about 15k, but I have it in the stock market, if I take it out, it will incur a lost and i feel like everyone around me will judge me. Plus, they all disagree with the way I see things when it comes to money. It also seems like that is not enough for a downpayment nowdays.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3yI get it but does your family know all of your finances. I have no knowledge of the downpayments needed in your area.
Quote from @Flabia Alonso Trujillo:
Great question,
What holds me back is the lack of funds for a down payment and the thought of my family judging me. I have about 15k, but I have it in the stock market, if I take it out, it will incur a lost and i feel like everyone around me will judge me. Plus, they all disagree with the way I see things when it comes to money. It also seems like that is not enough for a downpayment nowdays.
If you don't respect their beliefs about money, why worry about judgements?
It's free to speak to a mortgage broker. You can continue to build knowledge for free And in secret if necessary.
- Investor · North Kingstown, RI · Member since 2015 · 65 posts · 33 votes3yWe haven't met yet, no. Just been following the group via FB and I have been a member for about 2 years now. Due to my schedule I haven't been able to get to a meeting, but that will be changing shortly! So you should see me around. I will let you know what I end up coming up with.
Quote from @Frank Patalano:
Quote from @Bradley Scruggs:
Target area has slim to no deals. Everything up here in Rhode Island is a bit pricey unless you're bringing in capital. I have yet to get a deal in the works from doing some driving for dollars.
Also getting some blowback from the town on a development project and don't know the next steps to take.
Currently at a standstill and learning as much as I can till a deal comes across the table.
Hey Brad. I'm not sure if we have met at the REIA meetings yet.
Yes most Rhode Island towns are anti-development. Some municipalities, Newport, Pawtucket, Providence, etc. I have personally dealt with. If you are considering developing something, find out the main attorney that speaks in front of zoning, and use them. That attorney can find out quickly if a deal is dead on arrival.
Driving for dollars is a great idea near you. Also building relationships with the local wholesalers. Even going to town halls to research housing violations.
I know that local police departments put out tax issues regularly, but I did not know about housing violations. I will add that to the list to see what is out there. - Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Nkeonye Nkemdi:
I will definitely be doing this. I just need to find one or two lenders to talk to about doing this with FHA.Quote from @Paul De Luca:
Quote from @Nkeonye Nkemdi:
For me what's holding me back is fear, feeling like I don't know enough to move forward along with over-analyzing everything, not having enough in savings to afford covering expenses and wanting to move fast and take action. A lot of things going on and knowing I need to work on my mindset, set goals and get clear about what I want.
I am currently in a suburb of Chicago and have never owned a property. I do not rent and am learning about house hacking. I would like to get into a multifamily 4 unit and stay in one of the units.
A good first step would be to connect with a lender to explore your financing options and talk with an agent about your strategy.
If you need some lender recommendations, shoot me a PM.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
If you're ready to take your real estate investing career to the next level, let's talk! I'd love to discuss how can I help you gain clarity, focus on your goals, and get on track towards success. Let's make this happen!
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Jay Thomas:
If you're ready to take your real estate investing career to the next level, let's talk! I'd love to discuss how can I help you gain clarity, focus on your goals, and get on track towards success. Let's make this happen!
Jay were you speaking to anyone specifically? You didn't tag anyone.
- 3yRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
Quote from @Nkeonye Nkemdi:
For me what's holding me back is fear, feeling like I don't know enough to move forward along with over-analyzing everything, not having enough in savings to afford covering expenses and wanting to move fast and take action. A lot of things going on and knowing I need to work on my mindset, set goals and get clear about what I want.
I am currently in a suburb of Chicago and have never owned a property. I do not rent and am learning about house hacking. I would like to get into a multifamily 4 unit and stay in one of the units.
Write down every fear. Then think through how you would overcome each one if it happened. If you aren't sure how to overcome that fear, then ask for help about what other people would do if that situation you are afraid of happened
OR ask them how to avoid that situation altogether.
The Assumable Guy544 Reviews - Member since 2021 · 9 posts · 6 votes3y
Quote from @Frank Patalano:
Quote from @Rusley Dufort:
I have been researching for years... what has been holding is funds (at least what I've been telling myself). But I am fixing that I am setting money aside to move forward.
Are you looking for a purely investment property or are you going to house hack the property? If you are going to live on the property, the cash down can be much cheaper.
I am planning for purely investment. I have a home already and just moved in under 2 years ago.
- 3yAndrew FreedBusiness MemberInvestor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
@Frank Patalano - What got me out of procrasting and taking serious action was the thought of having to work 30-40 more years before I can experience retirement. Everyone is scared, worried about taking the steps towards their goals, but inaction is also a choice. I'd rather take action now, fail and retire at 65 just like everyone else. Best case, I achieve my dream of financial independence. Worst case, I continue the the status quo. Failing is definitely scary but to live a life of regret later is far more scary to me.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Rusley Dufort:
Quote from @Frank Patalano:
Quote from @Rusley Dufort:
I have been researching for years... what has been holding is funds (at least what I've been telling myself). But I am fixing that I am setting money aside to move forward.
Are you looking for a purely investment property or are you going to house hack the property? If you are going to live on the property, the cash down can be much cheaper.
I am planning for purely investment. I have a home already and just moved in under 2 years ago.
If you are doing an investment perhaps having a partner will reduce your cash outlay.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y"Worst case scenario is status quo."
Quote from @Andrew Freed:
@Frank Patalano - What got me out of procrasting and taking serious action was the thought of having to work 30-40 more years before I can experience retirement. Everyone is scared, worried about taking the steps towards their goals, but inaction is also a choice. I'd rather take action now, fail and retire at 65 just like everyone else. Best case, I achieve my dream of financial independence. Worst case, I continue the the status quo. Failing is definitely scary but to live a life of regret later is far more scary to me.
I would think that worst worst case in worse than that but I do like your philosophy. - 3yAndrew FreedBusiness MemberInvestor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
@Frank Patalano - Lol, worst case was definitely a hyperbole for sure, but you get my point.
- Member since 2021 · 1 post · 1 vote3y
@Frank Patalano I've been on the fence for years. I've gone as far as to make a business name. Looked at insurance. Looked and somewhat designed a website. Almost pull the trigger on making an LLC. But yet, this fear of not doing things properly and getting burned a year or two in. But then go back and say to myself I won't and can't fail for my family's sake. Then looking at what to do to get a loan or if make a mistake picking the wrong rental and etc.. that's where my heads at. I have a goal and I honestly know if I do this I will be successful. But getting over that hump has been and still is the hardest part for me.
- Real Estate Broker · Memphis, TN · Member since 2020 · 202 posts · 203 votes3y
Quote from @Frank Patalano:
Quote from @Jay Thomas:
If you're ready to take your real estate investing career to the next level, let's talk! I'd love to discuss how can I help you gain clarity, focus on your goals, and get on track towards success. Let's make this happen!
Jay were you speaking to anyone specifically? You didn't tag anyone.
His account posts auto-generated messages every day and posts them on every forum. It's basically a robot.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Adrian Mee:
@Frank Patalano I've been on the fence for years. I've gone as far as to make a business name. Looked at insurance. Looked and somewhat designed a website. Almost pull the trigger on making an LLC. But yet, this fear of not doing things properly and getting burned a year or two in. But then go back and say to myself I won't and can't fail for my family's sake. Then looking at what to do to get a loan or if make a mistake picking the wrong rental and etc.. that's where my heads at. I have a goal and I honestly know if I do this I will be successful. But getting over that hump has been and still is the hardest part for me.
Depending on what aspect on real estate you are focused on... In my opinion, don't worry about a website. I wouldn't even worry about a specific name. If the first property is on Lake Ave. Call it Lake diversified properties for all I care.
I own 9 LLCs. Based on experience now I dislike the name of my first one.
Insurance? Property insurance?You have a lot of fears blocking you from success.
There is no perfection. No perfect property. No perfect situation.
Just take action to move a deal forward. Have some reserves, backups, and protections but get a property. You will learn so much more after you go from theory to experience. - Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Reed Rickenbach:
Quote from @Frank Patalano:
Quote from @Jay Thomas:
If you're ready to take your real estate investing career to the next level, let's talk! I'd love to discuss how can I help you gain clarity, focus on your goals, and get on track towards success. Let's make this happen!
Jay were you speaking to anyone specifically? You didn't tag anyone.
His account posts auto-generated messages every day and posts them on every forum. It's basically a robot.
That is so disappointing. You would think that BP would notice...
- 3yMike ReynoldsPro Memberconstruction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
Quote from @Frank Patalano:
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.
I think the first step would be to add me and the principals involved into paid employees. At the moment, we are working the company and keeping the proceeds for the next one.
We are already looking at another property that just might do that. It will be a development property that needs to be built out. Since that is my day job, I don't see why I couldn't build it myself.
We do have an on-site property manager that we are working with on one property though so I guess we do have one already.
- Member since 2022 · 75 posts · 73 votes3y
I love this question! And it hit me right in the feels.
Nothing. There is a way to work through any excuses I give myself (which is a lot) but the truth is- if there is a will, there is a way. I heard another interesting quote the other day "Don't wait to buy real estate- buy real estate and wait"
- 3yMichael DiossaPro MemberInvestor · RI · Member since 2023 · 191 posts · 163 votes
This is an excellent question. To not repeat a few points already mentioned;For some prospects, it's been regulatory changes and non friendly bills being pushed at hearings. This is why an experienced realtor and investor matters to mitigate any potential losses plus you gain experience! Frank is the man!
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Tracy Ross:
I love this question! And it hit me right in the feels.
Nothing. There is a way to work through any excuses I give myself (which is a lot) but the truth is- if there is a will, there is a way. I heard another interesting quote the other day "Don't wait to buy real estate- buy real estate and wait"
There are definitely solutions to get around any excuses. That is why I put this out there and have been replying to every comment. Thanks for commenting...
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3yMy biggest concern is also government intervention.
Quote from @Michael Diossa:
This is an excellent question. To not repeat a few points already mentioned;For some prospects, it's been regulatory changes and non friendly bills being pushed at hearings. This is why an experienced realtor and investor matters to mitigate any potential losses plus you gain experience! Frank is the man!
That is why I only do deals locally with a lot of meat on the bone AND also focus on states that are more moderate vs progressive.
Thanks for commenting. - Member since 2023 · 2 posts · 1 vote3y
Quote from @Frank Patalano:
"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.Fear and doubt are 2 things that come to mind...
Looking to buy a SFR in NE Jacksonville area for short term rentals. 3/2 1600sf in gated community
315k-330k purchase price budget with 20% down money in cash, HELOC for 250k at 7% and IBLOC for 100K at 7.41%. Monthly PITI 2000-2300 depending on where real estate taxes total.
Solid w-2 job with good pay. I have 80k due on current home in PA (appraised at 477k) - so conventional mortgage rates on a 2nd home are high.
I feel ok with capital access, it's a matter of getting realistic monthly rental income figures. Area monthly long term rentals around 2000/month. Short term rentals via Airbnb allowed, but I can't get a good feel for comps in the area on nightly rental fee and monthly occupancy rates. I looked on AirDNA but have not paid to get details and check Airbnb listings for rates and blocked out dates = nothing is screaming to me that the home would generate more than 2k per month as a conservative guestimate. I just don't know how what data to trust. I do see potential with lots of medical centers, businesses, close to JAX airport, very close to nice beaches so there appears to be a few different rental markets to tap into.
The over analyzing of scenarios has held me back. I have friends in other markets in FL that are doing very well with Airbnb that are not near any major tourist destination.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Jeremy Garges:
Quote from @Frank Patalano:
"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.Fear and doubt are 2 things that come to mind...
Looking to buy a SFR in NE Jacksonville area for short term rentals. 3/2 1600sf in gated community
315k-330k purchase price budget with 20% down money in cash, HELOC for 250k at 7% and IBLOC for 100K at 7.41%. Monthly PITI 2000-2300 depending on where real estate taxes total.
Solid w-2 job with good pay. I have 80k due on current home in PA (appraised at 477k) - so conventional mortgage rates on a 2nd home are high.
I feel ok with capital access, it's a matter of getting realistic monthly rental income figures. Area monthly long term rentals around 2000/month. Short term rentals via Airbnb allowed, but I can't get a good feel for comps in the area on nightly rental fee and monthly occupancy rates. I looked on AirDNA but have not paid to get details and check Airbnb listings for rates and blocked out dates = nothing is screaming to me that the home would generate more than 2k per month as a conservative guestimate. I just don't know how what data to trust. I do see potential with lots of medical centers, businesses, close to JAX airport, very close to nice beaches so there appears to be a few different rental markets to tap into.
The over analyzing of scenarios has held me back. I have friends in other markets in FL that are doing very well with Airbnb that are not near any major tourist destination.
What is an IBLOC?
If your monthly PITI is 2000-2300, this does not sound like a good deal.
PITI doesn't count the utilities, internet, etc.
Plus if the AC needs to be replaced, etc, you are screwed.
You could join the Jacksonville REIA. There has to be someone doing the same thing there who would be willing to give some honest numbers... - Member since 2023 · 2 posts · 1 vote3y
IBLOC is insurance backed line of credit.
This is on a new construction with 1 year builder warranty. Longer term goal would be family use/retirement home so it's not all about immediate cash flow.
Maybe I'm doing the math wrong, but with purchase price at 330k, 20% down would put mortgage at 265k.
3500 / year taxes
1200 / year insurance
I did just research the JAX REIA, however, I live in PA so it would be difficult to make the meetings in person. I'm going to look into this some more, thanks for your advice !
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