What put you over the edge?- gave you the final push

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What put you over the edge?- gave you the final push

Rich S.
Central, MN · Member since 2015 · 148 posts · 184 votes

I've read oodles and oodles of real estate stuff, watched plenty of shows, realistic or not.... done a bunch of looking at potential flip projects, etc... researched and had conversations with various partners.... At this point... I only have one burning question... What will put me over the edge?  For you was it the right deal fell into your lap?  You just got fed up with waiting?  Had a bad day at the 9-5 and took the plunge? I'm just curious what put you guys/gals over the edge?

*If it matters... my short term goal is a few flips each year while still working my 9-5, with a long term goal of a enough door rentals and flips to support myself and my family without the 9-5 job.

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Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
9y

@Rich S.

Believe it or not, it was a challenge. I had a friend tell me that I was never going to do anything. That I was full of crap and was never going to invest in real estate because I was afraid. 

Well nothing motivates me more than trying to prove someone wrong.

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  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Rich S. So, what's missing from your research is your prequalification letter (i.e. your funding source).  At least then you have something that's actionable.  It doesn't do you any good to find a $100K property needing $50K of rehab that you can sell for $200K if you have $3K sitting in the bank.  I know the popular mantra is that if you have a good deal the money will find you.  I see a lot of first-timers posting about a great deal.  You know what I don't see?  The follow-up posts saying "I/we bought it!"  Maybe they did, maybe they didn't, but I'd imagine that a lot of people spend a lot of time looking at deals that they will never qualify for, don't have reserves for, etc. rather than focusing on narrowing their focus on finding a viable first deal.  But, hey, what do I know?  

    And the last thing (in my opinion) you want to do is take the plunge because of a bad day at the 9-5.  Running away from something (like your 9-5) probably is going to skew your projections when looking at a deal because you want it to workout.  "If I just get this home run, I can quit my 9-5!"  What don't I ever here: "I'm looking for a risk-adjusted single or double just to get learn how to ________".  That ___ could be buy-and-hold, house-hack, flip, fix-and-flip, etc.

    Anyway, time to get off of my high horse...

    Still, it sounds like you're at the point where financing is what's staring at you and preventing you from going over the edge.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    I got tired of seeing substantial sums of money making diddly squat in interest. We have been in a low interest rate environment for almost a decade. 

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  • Rich S.
    OP
    Central, MN · Member since 2015 · 148 posts · 184 votes
    9y

    @Andrew Johnson  Thanks for the reply.  Just to be clear... I really do like my 9-5pm.... I just love the power of being able to do whatever with my time even more which is my goal for real estate... I understand it is hard work, don't get me wrong, I just like the power of choice...  the $$$ to fund/rehab a deal is my hurdle...  but a phone call away for the right deal

    And @Andrew Johnson  You never did say what got you over the edge?

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  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Rich S. My situation was different than most in that "my hurdle" wasn't really "my hurdle".  My hurdle was getting a spouse to buy into the idea.  Not only of investing in real estate but doing it out-of-state and doing it at a meaningful scale.  So it wasn't a "push" on my end from anyone else, rather "pulling" that got her over the edge.

    But, devils advocate, if your funding is a "phone call away" then funding isn't your hurdle.  It sounds like your hurdle is finding a good enough deal for whomever is on the other end of the phone.  

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  • Jieh Larson
    Investor · Houston, TX · Member since 2016 · 80 posts · 38 votes
    9y

    The oil industry tanked and I had a baby on the way. Nothing like looming costs of a child and unsure employment to get those financial gears cranking!

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  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y

    @Rich S.

    Believe it or not, it was a challenge. I had a friend tell me that I was never going to do anything. That I was full of crap and was never going to invest in real estate because I was afraid. 

    Well nothing motivates me more than trying to prove someone wrong.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y
    Having significant amount of cash saved up to afford to invest the final push was the realisation that recognising the risks involved I was prepared to face losing it all. It was only money. Easy to make more. Once the thought of losing all my money was no longer a issue moving forward was easy.
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  • Andrew Acuna
    Investor · Mission, TX · Member since 2017 · 220 posts · 135 votes
    9y
    It was no one thing. I just got tired of TALKING about real estate and decided it was time to DO SOMETHING! So I bought a 4plex and am now buying another...
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  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    9y

    @Rich S. I felt that my education and research were reaching a point of diminishing returns and the only way to learn more would be by experience. I heard all these great actionable tips and ideas in the forums and Podcast, but didn't have an outlet to put them into practice. 

    In one of the BP Podcast Josh Dorkin talked about RE investing being like driving on a foggy road; you can't see the end, but the only way you'll get there is by trusting you know signals your left and right limits (the lines on the road) and as you drive things will become clear. 

    Boy was he right.

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  • Cary O.
    Rental Property Investor · Dallas/Fort Worth, TX · Member since 2017 · 64 posts · 59 votes
    9y

    We took the plunge when we purchased our current home, and had to decide if we were going to sell our previous home or rent it out. We had not found Bigger Pockets at that time, and had no prior experience with investment property. Thankfully, we have a longstanding relationship with our realtor who also has rental properties, and learned a lot from her as well as a few friends who had invested in rentals. We decided to rent the house due to the equity and appreciation in the previous house, and haven't looked back since as we have enjoyed great cash flows as well. We have been steadily learning along the way, and are glad to have found the resources on Bigger Pockets as we learn new things every time we get on the site as well as the podcasts. We are so glad that point in our life gave us the push needed to start our real estate investment journey. 

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  • Rich S.
    OP
    Central, MN · Member since 2015 · 148 posts · 184 votes
    9y

    So far the final push:

    *Convincing the spouse

    *tired of watching stagnant money not make money

    *Fear of not providing for family

    *Proving someone wrong

    *Tired of TALKING and not doing

    *Next step in educating was acting

    *Purchasing new home and deciding to keep old

    I always find it fascinating how so many different things get people to the same decision... I'm in the "tired of talking and not doing" category at this point! 

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  • Rivy S.
    Silver Spring MD · Member since 2015 · 198 posts · 116 votes
    9y

    What actually got me over the edge was the appearance in the BP Marketplace of really cheap Detroit properties :/.  Two years later, I'm finally getting rid of one of them today (good riddance!) However... since that is what it took to get me over the edge, and I have other, much more successful investments since, I don't regret jumping in with those.  It was a good learning experience, and it got me in. 

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  • Luc Boiron
    Specialist · Toronto, Ontario · Member since 2016 · 564 posts · 425 votes
    9y

    I don't know that there was a final push for me - I had been trying to buy a property since I was 14. I knew it was going to happen.

    Bought my first property at 18 in 2007. I had worked overseas for 18 months and started university with a bit of money, and was able to borrow some more. It wasn't a big push, but part of buying at that time was that a friend and I agreed that we would each buy a property, and split them both 50/50 to reduce our risk.

    That didn't end up happening, we both bought separate properties though and both did well enough on them.

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  • Kevin Childers
    Fort Smith, AR · Member since 2016 · 49 posts · 17 votes
    9y

    @Rich S. I was tired of waiting on the market to rebound in my area so I could sell my house. I decided to lease it instead, best decision I have made in a long time.  

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