What is stopping you from making your first deal?
Hi Everyone, I am looking for obstacles that are holding investors back from accomplishing their first deal. Leave some comments below and I will do my best to offer insight. -Thanks for your input Sterling.
Other experienced investors are more than welcome to chime in as well.
@Ricardo Rosales thanks for information will use that strategy and will let you know how it work.
@Ken Abdullah I suggest to start looking into setting up a syndication, you can put together all your small investors and start doing a crowfunding or syndication for one deal.
For example: Joe 20K, Mary 50K, Ken 35K, Barry 15K Total 120K.
Have all of them to agree on holding one promisory note and divide your mortgage payments in the percentage related to their investment, have a title company draft the promissory note and do the funding for a property you need to buy and rehab for that amount.
I'm struggling to find the education on how.
I would have to say not being able to find the right deal. I've looked at 20-30 homes and haven't been able to find one that makes sense. Asking prices are to high and then they also need rehab. Once I invest 20-30k into one of these deals all my cash is going to be tied up into one rental. Im looking in the suburbs of Detroit. Looking at 20 percent down on a property 40-70k. Then I have cash for whatever repairs need to be done.
I've been considering trying wholesaling. It may be cheaper to get in and get started compared to tying up all my funds on one unit.
What's your opinions?
For me it was timing. I graduated from college and moved back home. During the year I lived at home I started to get more and more interested in RE. However I knew work was going to relocate me for a year across the country. I ended up using that year to read/learn more about RE until I just got back home about a month ago and am now working on my first deal!
My biggest hurdle is finding the first deal in Salt Lake City. I have contacts for hard money lending and 30 k cash for repairs. Any insight would be great!
Prior to closing on my first deal I remember being nervous and afraid of making a mistake. I worked with a HML who specialized in working with new investors so it definitely eased my anxiety to know that the HML was performing their own due diligence on my deals. The HML had their own processes such as a contractor draw schedule and other requirements that actually protected me as well.
I am planning on moving from West Tn to East Tn as soon as i can. There are several duplexes for sale in my area now but I don't really want to be a long distance land lord if I move in 6 months.
Finding the right property where the numbers work in Salt Lake City. I've got a specific property profile (small multi-family, under 300k purchase price, 6-8% cap rate, C property in a B neighborhood) and about 100k in cash to invest but finding something that works locally is tough, so expanding to neighboring counties.
I have a boyfriend who is lending me $1,000 and/or can obtain property/properties for a total of $30,000 in cash or through a $400,000 loan. What is holding me back is the fact that I need to partner with someone to learn from as a mentor. I spoke with professionals and they suggest I start out in Wholesaling, but my first interest was to find properties to invest in through tax deed auctions or over-the-counter sales. I was almost confidant in pursing that until I had three different experts suggest I start out in Wholesaling instead. Ever since I changed course, I have had no luck in learning what I need to learn to start in the Wholesale Maryland market. My worry rests in the details of legalities, as Maryland is strict in Wholesaling I heard. Thus, I need a mentor. If I do not get a mentor, I will make one for myself and return to tax deed sale options as I build up a business to teach myself Wholesling and other Real Estate topics.
@Account Closed i know of a lot of folks out here who buy in their name and quit claim to their LLC. They do something else so that the due on sale clause isn't triggered but i can't say what exactly. Perhaps speak with a few different mortgage brokers and see if something like this could be done?
The people around us create a lot of noise. They create distractions and doubt that makes us question ourselves and our plan.. Don't doubt yourself or your plan. Filter the noise.
I like this quote by PENA...
''Show me your friends and I will show you your future" DAN PENA
Frank
I don't have a job right now - I'm wanting to do rentals with standard bank loans (at least to start), so that's a no go - either I need to wait until I get a job, or have a new strategy (which I would need to learn and understand).
The other thing is just feeling like I need my "team" lined up. Realtor, CPA, attorney, contractor, property manager, paperwork, etc.
Originally posted by @Quincy Knighten:I'm the only worker between me and my wife. I provide for us and my daughter. I'm 23 and I don't have anything saved up for purchases and I screwed up my credit a few years back and I'm making plans now to get that issue corrected.
To add on to those I am also stuck on what I really want to do in real estate. I'm in the process of applying to different apartment complexes so I can get into the property management business as a leasing agent. I'm planning on getting my real estate license next year as well and I'm debating on whether I want to be a RE Agent part time while also investing and owning properties. There are so many directions and my mind is pulling me towards every one.
Yeah, you have to FOCUS and have a clear plan.You're being pulled in many different directions.
Just choose ONE and start. Nothing beats action. You won't know what's right for you until you decide and ACT.
@Karen O. I am in the same situation as you.
Not enough capital to get started locally. As a fresh investor with limited capital I'd like to get hands on experience investing locally along with the ability to view the property easily. However, this has been difficult to find in NYC and even in the surrounding areas.
It's difficult for me to get started because the deals I am finding in my area just don't make sense for a BRRRR or even a house hack.
Considering exploring other markets but am very hesitant to invest in markets I am not familiar with at all.
:(
Thanks for the excellent post, Sterling! So... What's holding me back... Money. Money is the big one. I have a VA loan available to me, and a modest amount of emergency savings, but that's about it. My Pacific Northwest town is exploding right now, and there is currently no such thing as negotiating on price. It is take it, leave it, or offer more.
I barely qualify for a loan that is competitive, and I'm pretty sure, were I to purchase a home/investment property with no money down, it would be hard to gain equity, and I can't fathom prices continuing much higher than they are now. I can't buy a house here that is listed on the MLS for 250k that will eventually rent for 2.5k... i.e. The 2% rule (?).
So therefore, my only option is to find a distressed home with a motivated seller through my own means, which is going to be a hell of an experience having had no previous experience, I can already tell. My other obstacle is the VA loan itself... Very restrictive in what one is authorized to purchase. No fixer-uppers with a VA. More like an updater... Which again is tough to find for any reasonable price... So this, sir, is my dilemma! Please feel free to poke holes in all of this.. I'd love to gain new and differing perspectives on my situation. Thank you!
For me the main reason is lack of knowledge. I also need a mentor to hold my hand and educate me of what is coming in wholesaling.
The shiny object syndrome!!!! I have been trying to follow the recommended "miracle morning" ritual and this is really helping me to stay focused. One of the daily commitments I made to achieving my goals is to spend an hour per day engaging in the forums. Hence here I am:)
I often feel as though I should move into the city I want to invest in and house hack to give myself a jump start. I currently own my own home in an A+ neighborhood which would demand about 1800 in rent per month. I love my house but I also know its about sacrifice. I go back and forth with that or flipping my first property and or just buying and holding while staying put in my home.
And now you can get a glimpse of the hamster wheel.....round and round it goes
I am looking at properties with my agent, analyzing deals, listening to podcasts for the second time around. One of the things I have yet to do is to join my local REIA group......that is next!
Thanks @michael great starting points!
FOBO! Fear of a better option! Each time I find something I think could work, I feel like there are better deals out there to be had. I also worry about tying up lots of cash, underestimating expenses and not getting the cash flow I anticipated in the end.
Hello All,
Just as a status update. I have been a week and 3 days into this and I have a wholesale deal signed and looking for a buyer. See ACVHOMES.COM for details. I also have just set up my second appointment this week. I had 6 last week. The appointment for tomorrow to sign the contract for a rental with seller financing that I am JV with another investor. I also found a mentor with Stuart Gethner he teaches at the local AZREIA here in Phoenix. So far so good I'll give an update once I hit the next step. Thanks all
I am looking for houses every single day online on multiple real estate sites, and I also have a "mentor" who has 35 rental properties in the area and he is looking for me on the MLS. Maybe I have too little patience, but we have been looking for properties for about a month now and I feel like nothing is out there. I'm not doing anything else than that too find a property. It will be my first rental property, just having trouble finding something
I'm also an all cash buyer, so I have to have an advantage at some point in purchasing the property