Be Patient or Figure Out a Creative Strategy?

19 Replies

Hey Everyone,

I'm attempting to start investing, but am possibly hitting an early roadblock. Recently I went through the process of trying to get pre-approved. Ultimately I was told that I would need to have a co-signer as a result of only working part time at the moment (I am starting a full time job in early October).

A possible solution that I am considering is having my friend/potential partner go through the same process to qualify for a mortgage, since he has had a stable, full time job for some time now. He has already shown willingness to do so, therefore I am wondering whether this may be the best route to take, or, should I be patient, continue to learn/network and revisit my own situation after I start the full time job in October.

Trying to find a balance between patience and looking into creative strategies to get started.

Any advice is always appreciated and let me know if more information is needed to understand the situation.

According to your profile info, you are just getting started learning about RE. Frankly, you're probably better off not having funds for a while. You should go look at and analyze a LOT of properties AS IF you had funds, though.  That way you'll start to develop a sense of whether you've got a real deal on your hands or not. It's easy to jump on the first possibility starting out and then be sorry later.  Besides... October? that's like two weeks away, how much patience does that take?

@Patrick Wheeler

Patience isn't easy but I would recommend that you look at getting a license in the state of Massachusetts, and you would be well trained as far as local customs, especially on the listing side and the buyer side

Regarding creative financing, I post on the subject to, lease options, mortgage is lease options, wrap mortgages, etc

You might want to talk to 

@Shaun Reilly

A great Massachusetts agent

@Jean Bolger I do currently have some funds, but you are definitely right. Analyzing properties is something I need to start getting really comfortable with. I am hoping my aunt, who is a real estate agent, may be able to help me with that. Lastly, I was just thinking of possibly coming up with some creative strategies, that would possibly be better alternatives to conventional loans, etc.

@Brian Gibbons Yes absolutely. Luckily I consider myself very patient, but does not make it any easier! I will be obtaining my license at some point, currently working on completing some courses in a different area. I definitely appreciate the referral and will absolutely have to reach out.

kindof of in a similar situation myself and learning along the way. I have been heavily studying and researching since may of this year. Listened to all the podcasts and have read about 80ish business and real estate books (along with some inspirational historical books like Seneca, Ben Franklin, John Adams, etc). So I have been diving in head first. I have no desire at this point in my life to get my license. I do have access to the MLS through my agent and she is amazing. My brother offered to co-sign with me since my score is a little low. I am sitting on the fence about that. Even though I have been at it and have been looking at properties (physically as well) I am still not as comfortable with it as I feel I should be. That being said, Colin Powell said that during the gulf war the reason we were able to be so decisive was that they found the sweet spot between knowledge and action.. between 40-70%. So if you have at least 40% knowledge you should be able at that point to start making wise enough decisions to move forward with action. My actions at this point is like was mentioned above. Going through the process of crunching the numbers as if I am buying a property. I think you are fine with analysis and figuring out your own way of doing the math. The math is not universal for every market. There are similarities but also big differences. Especially here in NE. If nothing else if you ever want to learn more I would also hit up the local REIA meetings and masterminds. The Black Diamond meeting (@Ann Bellamy ) is happening in Worcester tomorrow night at 6pm.  Event is on meetup if you need to find it or just search Black Diamonds on the web or FB. I will be there.  If you decide to some let me know.

@Patrick Wheeler it isn't bad to have a pre-approval or to look for creative deals.  More tools in the toolbox just means you have more options.

I will agree with Jean that if you are just getting in the game you should be looking at and running the numbers on a lot of properties.  Sure there is a chance you win the lottery and find a smoking deal in the first couple you look at.  More likely though you will look at dozens (if not hundreds) of duds before you find a good one.

So I'd simmer down on finding ways to get your pre-approval before next month and bone up on some creative financing strategies and start analyzing some properties.

@John McConnell That is some great stuff, I appreciate it. I joined The Black Diamond on meetup and look forward to making it to the meetings!

@Shaun Reilly Yeah I am going to start taking a look at a lot of properties and analyze them. Is there a reference to learn exactly how to analyze properties to determine whether they are a good deal or not?

There are lots of articles and discussion threads here on BP that talk about ways to analyze properties.  You can also check out the BP calculators, I think you can use them a couple times on a trial basis before you would need to upgrade your account.  Should give you a good feel on what to look for and if you really like it getting a Plus or Pro account isn't that expensive.

You also can just look up sheets on calculating NOI for a rental. Just don't worry about things like cap rates if you are only looking at 1-4 unit places. They don't really mean anything, but figuring out the net operating income is still very useful in comparing properties, then figuring out if there are any advantages in financing options.


Click the "Analyze" tab at the top of the page. There are incredible calculators there for analyzing deals as well as a whole forum dedicated to analysis. Free membership gets limited use of calculators and pro members have unlimited access. Hope that helps!

Very help guys, thank you. I remember exploring the calculator tool and noticing the maximum amount of times you can use it as a free member.

Also, I just saw the "How to Analyze Deals" how-to guide so I'm sure that will help a great deal!

@John McConnell , thanks for the shout out, but Black Diamond tonight is in Waltham, not in Worcester.  We now alternate between the two locations each month.  Here is my post about it.  I don't want you guys showing up at the wrong place.

This month will be our first meeting at our new location at Garcia Brogan's, good location with lots of space.  Parking in the garage in the rear, it is free in the evening.

Joining a real estate group is a very positive move.  I think a partnership for a first venture is really also a very good idea. There are 2 of you learning and working together and motivating each other.  You learn differently and where one is weak the other could be strong.  Its supportive both financially and emotionally.  Perhaps after the first buy you will want to do it again or perhaps you both will go on alone but either way you will have profited from it

@Patrick Wheeler


Most partnerships do not work out because partners have different goals. The best course of Action is to write an entire business plan up front, including the detailed Exit plan.


I always say "I'm not waiting for my ship to come in, I'm swimming out to it!" but I like this quote from Darrell Knoch even better - "All things come to he who waits; but they are usually things left behind by those who hustle."

Sorry @Ann Bellamy I just realized this morning when I was going over my calendar. Can't wait to see the new place. Hopefully the traffic will not kill me getting there. @Barbara G. I guess the definition of partnership needs to be clarified but yes, having someone go through the trenches with you is a huge motivational factor. On the days when things are not going so good you have someone there to push you along and vice versa. I'm all in favor of working with anyone in any capacity because whatever happens I will be continually learning. As far as a traditional partnership, of course there needs to be safeguards in place in order to protect each persons interests. I think it's all about connections and working with people doing things you love to do and sharing that experience with likeminded people. We are after all in the people business..the rental/sales/ownership/money is just the byproduct of how well you work with people and solve problems. 

@Ann Bellamy I could very well be wrong, but I believe the group's website and meetup group had different locations for tonight's event.

@Barbara G. Seems like it is very important to establish each other's goals before starting out, as well as figuring out the roles of each individual and sticking to them. And Mike yeah I guess that is why I am trying to cautiously hustle lol.

@Patrick Wheeler

There are no road blocks, only speed bumps.

Financing real estate has probably never been more difficult.

Finding tenants has probably never been easier.

Here is my advice: 

If this is your first deal, make sure it's perfect.  Make sure you review 100s of deals or more.  You will be amazed at how much you can learn without spending a dime.

Eventually you will find one that you never thought possible.

Here is an example:  We just bought 40 acres in Oregon for $2,000.00 total and sold it for $12,000 before we could close on the acquisition.

There are so many myths in real estate investing.  

I have made this mistake: "get a loan on a rental house or an SFR flip and hope for the best."

There is a science to renting, flipping and real estate investing.  

Please let me know if I can help.

I would get busy getting 'creative'. I don't need to be, but after refinancing a bunch of properties in 2012, I vowed to never go back into a bank except to make deposits!

I get my seller-financed rentals from tired landlords and landlords that have had it with crappy management.  Look up addresses of tired properties for rent or if you know of the worst PM in your area, look up the address owners of the properties they are advertising for rent.  Send the owners a postcard or quick note. 

Learn how to work 'in' your business. My best seller sold to me on contract the first time because I put my clipboard down and stopped a toilet from running while I was touring apts. Fixed a doorbell, too, in front of him, in 12 seconds. These old guys did it themselves for years and want to see you will be able to do the same.

Don't be afraid to work 'in' your business while you're new and growing . Worry about working 'on' your business when you're analyzing multi-million dollar deals all day.

Good luck @Patrick Wheeler !