Why is getting started so hard?!?

138 Replies

I've been listening to a gazillion podcasts, reading books, articles, running numbers, day in and out.....ANYTHING to educate myself on this process! Got my money/funding in place... I even worked with a realtor in my area and started looking at a few homes. Whyyyyyy is finding a buy and hold property in my area so hard?! I know my budget isn't the highest for my first place but, I feel like I'm doing all of the work (finding my own houses, crunching the numbers, asking to go out and look, following up on offers made, etc.) and by the time she gets back to me with the MLS listing, her availability, or whether or not the offer was submitted, the home could be far gone. Do realtors feel like it's a waste of time putting in the work for less expensive homes? Should I just go the "FSBO" or auction route, get an attorney/title company and eliminate the realtor process all together? Is this one of the reasons RE investors get their real estate license....to eliminate the need to wait for other realtors? Sorry for the rant and I know patience is key.....but I'm just getting frustrated with this process thus far!

Starting out is always the hardest part. You have to build up that first snowball with all the resources you can before it begins to pick up speed. Network with an investor friendly real estate agent if you are going the MLS route. I don't know what your market is like but I do not buy in the market I live in anymore. I rarely find a good deal on the MLS in my market. I am starting to buy out of my market because the homes are cheaper and the ROI makes way more sense. Make sure you're looking for stuff on craigslist and for sale by owner stuff. I work with an agent who sells a lot of multifamily homes in the area and has many clients. He will let me know the stuff he is working on before it hits the market and give me a chance to buy it before everyone else can. I'm fairly new myself but this is what is working for me. Hope this helps

Liberal democrat states like New Jersey have very high taxes and property prices are such that it’s almost impossible to cashflow by renting it out . This makes entry harder for people in states like yours . I would perhaps look out of state or have a large savings of cash to compensate .

@Nelly R. Congrats on getting started! stay positive! If it was easy everybody would do it. I recall on one of the Podcast a guy went through like 4,000 or something no's before he had his 1st deal. It seems like you need to connect with a realtor that works with investors. I am sure there are some here on BP that will reply to your post. Don't be afraid to fire someone who isn't looking out for financial future creating a Win Win. 

I feel like I am in the same boat as you but one thing I have asked in the fourm is about local REI Clubs. As you heard in many of those Podcast networking and relationships are what made many of the deals.

Cliff G. 

Thanks for the advice everyone! I think I listened to that podcast as well!! I know it takes time, I just feel like I’m consistently going down the wrong path. Then that fear of making the wrong decision sets in as well. You’re probably right....I probably need to change my search criteria to outside of my area and definitely work with an investor friendly realtor (if one at all). Thanks again....I’ll get there eventually!!! 

It sounds like everything is in place but you can't find the deal. Your REALTOR isn't working hard, probably because you're asking a lot and offering little in the way of compensation. So try to cast a wider net!

1. Join a real estate investor group. See if you can find some private, off-market deals or someone to partner with.

2. Driving for dollars. Use the search feature in the upper-right and you'll get an idea of how it works.

3. Tell everyone you meet that you are looking for an investment. They don't need details and probably won't remember them so just tell them you're looking for a rental property.

4. Put an ad in the local facebook classifieds.

Right now you are probably doing the same thing as a hundred other people in your area. Do something different and find the deals before they hit the MLS.

Great advice @Nathan G. !!! I’ll go that route! I thought about that with my realtor....she’s probably gonna make pennies off of my deal! Lol....I’ll definitely take alternative steps in my search. Thank you

Keep the faith Nelly! I know you are talking about buy and hold, but sometimes it helps to see a couple of actual flips in your area. Take a look at a couple of previous flips in your area and see if it helps maintain your positive outlook. It can also be a good idea to talk to the listing agents of flips and review the property with them and say "that's what I'm looking for".

101 NIAGARA LnWILLINGBORO, NJ 08046

Before: https://www.redfin.com/NJ/Willingboro/101-Niagara-...

After: https://www.redfin.com/NJ/Willingboro/101-Niagara-...

1404 OXMEAD RdBURLINGTON, NJ 08016

Before: https://www.redfin.com/NJ/Burlington/1404-Oxmead-R...

After: https://www.redfin.com/NJ/Burlington/1404-Oxmead-R...

Keep working!

Mark

@Mark Sanderson Wow! That flip in Burlington looked like a great deal! Thanks for your advice!

Glad to help - let everyone know when you have your first deal!

@Nelly R.

Keep the faith.  That first deal is so elusive.  Once you find it you’ll be fine.

The MLS is super competitive. If your price range is at the lower end there is just a tremendous amount of competition.

If your looking a SFH only try duplexes, triplexes. Go where there is less competition.

Attend local REIA meetings. In my area at the beginning of each meeting there are people wholesaling properties, looking for partners and all sorts of creative acquisitions.

Hang in there.  Keep plugging along.

Most of the deals I see are off market . That means you must get creative ( craigslist , Facebook, ads,driving dollars) . A lot of these properties are overpriced or picked through on the mls . Everybody uses the mls so it’s hard to truly find a smokin deal that isn’t under contract . As smart Investors we never pay retail we are looking to add value and any good investor knows money is made when you buy not when you sell . It is better to wait then buy a bad deal

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@Kenneth Garrett I initially looked at duplexes.... I'd love to get one! Thanks for the advice!
@Frankie Lester Lol....I listen to a few, not just BP (although I really like BP)! I'll check out Florida RE podcasts as well. Thank you!

@Nelly R. Be patient, find the right deal.  Do what @Nathan G. suggested, on all points.  That’s good advice. I’ve used a Realtor for every property I’ve purchased.  If the communication is not what you think it should be, move on without burning any bridges.  Interview other Realtors, and find someone that will hustle for you.  They’re out there!

Be aware, imo any deal is almost always a good deal in hindsight if I hold it long enough. Someone once told me, if the deal isn't a little crazy good in my favor, then I am not asking for enough. So I follow that, purchase with my financials in order, and purchase as if I needed a place to live. Imo, worse to get analysis paralysis waiting for the "right time'" because there is no such thing.
Originally posted by @Nelly R. :

I've been listening to a gazillion podcasts, reading books, articles, running numbers, day in and out.....ANYTHING to educate myself on this process! Got my money/funding in place... I even worked with a realtor in my area and started looking at a few homes. Whyyyyyy is finding a buy and hold property in my area so hard?! I know my budget isn't the highest for my first place but, I feel like I'm doing all of the work (finding my own houses, crunching the numbers, asking to go out and look, following up on offers made, etc.) and by the time she gets back to me with the MLS listing, her availability, or whether or not the offer was submitted, the home could be far gone. Do realtors feel like it's a waste of time putting in the work for less expensive homes? Should I just go the "FSBO" or auction route, get an attorney/title company and eliminate the realtor process all together? Is this one of the reasons RE investors get their real estate license....to eliminate the need to wait for other realtors? Sorry for the rant and I know patience is key.....but I'm just getting frustrated with this process thus far!

Skip the realtor. Search MLS yourself. Setup saved search for the zipcodes and property types/price you want. When you see homes that fit, email, call, and pester the selling agent with an offer.

Most people have a hard time starting due to fear or lack of ability. It sounds like those are not issues for you. So get more aggressive with the selling agents yourself. A agent on your end does little to nothing for you and may be a negative 

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@Nelly R. are you only looking to buy and hold?  Do you have a budget to do some off market marketing? If you don't want to say it here you could pm me I get it.

I agree with @Cody L. , it can be a pain for a buyers agent to work with investors.  Better if you plan on flipping but buy and hold the incentive isn't there.  Some are great don't get me wrong but its easier just to find them yourself and go direct to the selling agent.  

If you want to stick with your agent that's fine just have them send you their auto generated list with your criteria and try to only use them when your are for sure putting in an offer.  Go see the place before going in save them the hassle.

@Nelly R. what people are saying here is true but you also need to get a new agent. I can already tell yours isn't cutting it. Go to a local meet up group and find some new agents to try out. It will take some time but you will eventually find a rock star agent. they are just harder for newbies to find because they aren't advertising themselves very hard. Frankly, they have so much business that they don't need to. 

Don't lose hope.

@Nelly R. Sounds like you need to do some direct mailings to your target neighborhoods to get a property under MV. Are you on wholesalers email lists? Have you been to all of your local meet ups and given your info to all the wholesalers and told everyone else what you’re looking for? Sheriff sales are also an option if you have the cash and if you’re absolutely sure that you understand the due diligence and risks and factor that into your pricing. I bought my first deal on the court house steps but I probably put 3 months of 20 hours a week working on learning my local system and researching the particular unit to make sure everything checked out (since once you bid there’s no backing out, or inspection contingency, etc.)

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