So what's holding you back?
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
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. What is holding you back?
Having just recently bought my first property, I know for myself what was holding me back was the fear that I would overpay, especially in this type of a market. I would get analysis paralysis and basically talk myself out of every property I looked at.
@Frank Patalano
Honestly, I think it’s the fear of the unknown. I know for a fact it can be done and a very good retirement can be made.
When I was about 12 years old, an older cousin of mine bought 7 duplexes in one package deal. Held them for probably 40 years and sold when he retired. I can only imagine how much he banked off of that deal. Unfortunately, I moved away and didn’t get a chance to partner up with him or even learn anything from him before he passed.
I would love to have the chance to meet up with someone just to see it in works. If that makes sense.
@Frank Patalano don’t have enough capital right now and I need help finding deals
Work on finding deals first. Through networking and knowledge. If you can find a sweet deal, you will find the money. People will fall over themselves to partner with you.
@Frank Patalano
Honestly, I think it’s the fear of the unknown. I know for a fact it can be done and a very good retirement can be made.
When I was about 12 years old, an older cousin of mine bought 7 duplexes in one package deal. Held them for probably 40 years and sold when he retired. I can only imagine how much he banked off of that deal. Unfortunately, I moved away and didn’t get a chance to partner up with him or even learn anything from him before he passed.
I would love to have the chance to meet up with someone just to see it in works. If that makes sense.
You have something that wasn't available to your cousin. The internet. You can meet so many people online today. You can learn so much as well. You should also networking up a storm. Go to your local REIA as well. Every month learn what you can.
Sounds good, thank you.
@Frank Patalano
This is what's holding me back. I'm currently deployed in the middle east as I type this. When I get back in a month or so I need to finish my last 2 semesters of school and graduate in may 2020. I then need to get a job going to bed able to qualify for a FHA loan. I have more than enough initial Capital but cant seem to get qualified because i have only worked random jobs on campus and summer internships during school and most of the lenders I've talked to need more consistent work experience. Need to get a steady job once I graduate to be able to qualify. Does anyone else see an alternative?
@Frank Patalano
This is what's holding me back. I'm currently deployed in the middle east as I type this. When I get back in a month or so I need to finish my last 2 semesters of school and graduate in may 2020. I then need to get a job going to bed able to qualify for a FHA loan. I have more than enough initial Capital but cant seem to get qualified because i have only worked random jobs on campus and summer internships during school and most of the lenders I've talked to need more consistent work experience. Need to get a steady job once I graduate to be able to qualify. Does anyone else see an alternative?
There are alternatives. You can buy with seller financing. You could find a partner. The partner could bring the income and you would have some time and some of the down payment. You could also flip houses with a hard money lender. You could do some wholesaling. Plenty of options.
@Frank Patalano
As a new investor here is what holding me:
- fear of overpaying, as prices are almost at the top.
- hard to find any single fm or duplex/triplex etc with cash flow on day 1, specially in bay area.
- auction bids are getting too competitive and leaving less margin for any profit.
with that, please suggest what do you feel in this market or if you have any comments /suggestions ?
You are absolutely right about the internet. I will look for an REI in the Houston area.
Thank you!!
@Frank Patalano
Whatever you replied to me is so far down in the feeds, how can i read it
@Frank Patalano
As a new investor here is what holding me:
- fear of overpaying, as prices are almost at the top.
- hard to find any single fm or duplex/triplex etc with cash flow on day 1, specially in bay area.
- auction bids are getting too competitive and leaving less margin for any profit.
with that, please suggest what do you feel in this market or if you have any comments /suggestions ?
Sure. I have not bought as much myself in the last couple years. Still trying to pick up an off-market deal here or there. There's still money to be made, just the opportunities are harder to get. Picked up a sweet 9 unit last year.
Can you find an off-market property that is a Quick Fix and Flip?
If I was a new investor I would be educating and networking every day.
Are you willing to go out of state? There are opportunities in other parts of the country.
Like I said I know what you're saying but there are people making money everyday in your Market. Try to mimic what they are doing.
@Frank Patalano
Whatever you replied to me is so far down in the feeds, how can i read it
I will DM you.
@Frank Patalano
As a new investor here is what holding me:
- fear of overpaying, as prices are almost at the top.
- hard to find any single fm or duplex/triplex etc with cash flow on day 1, specially in bay area.
- auction bids are getting too competitive and leaving less margin for any profit.
with that, please suggest what do you feel in this market or if you have any comments /suggestions ?
Sure. I have not bought as much myself in the last couple years. Still trying to pick up an off-market deal here or there. There's still money to be made, just the opportunities are harder to get. Picked up a sweet 9 unit last year.
Can you find an off-market property that is a Quick Fix and Flip?
If I was a new investor I would be educating and networking every day.
Are you willing to go out of state? There are opportunities in other parts of the country.
Like I said I know what you're saying but there are people making money everyday in your Market. Try to mimic what they are doing.
thanks Frank, yes I am open for north Texas, and also in near by area in bay area, Sacramento etc
I don't know how networking is going to help, I feel like who ever has the information 1st hand ,they themselves are grabbing it before telling to others :p
@Frank Patalano
As a new investor here is what holding me:
- fear of overpaying, as prices are almost at the top.
- hard to find any single fm or duplex/triplex etc with cash flow on day 1, specially in bay area.
- auction bids are getting too competitive and leaving less margin for any profit.
with that, please suggest what do you feel in this market or if you have any comments /suggestions ?
Sure. I have not bought as much myself in the last couple years. Still trying to pick up an off-market deal here or there. There's still money to be made, just the opportunities are harder to get. Picked up a sweet 9 unit last year.
Can you find an off-market property that is a Quick Fix and Flip?
If I was a new investor I would be educating and networking every day.
Are you willing to go out of state? There are opportunities in other parts of the country.
Like I said I know what you're saying but there are people making money everyday in your Market. Try to mimic what they are doing.
thanks Frank, yes I am open for north Texas, and also in near by area in bay area, Sacramento etc
I don't know how networking is going to help, I feel like who ever has the information 1st hand ,they themselves are grabbing it before telling to others :p
On the networking side I can see your view. At the same point almost every deal that I do is as a partnership. Besides all of my own llc's I have 4 more each with a different partner. It is one way to reduce risk. They have brought deals to me and I have brought deals to them.
@Frank Patalano
As a new investor here is what holding me:
- fear of overpaying, as prices are almost at the top.
- hard to find any single fm or duplex/triplex etc with cash flow on day 1, specially in bay area.
- auction bids are getting too competitive and leaving less margin for any profit.
with that, please suggest what do you feel in this market or if you have any comments /suggestions ?
Sure. I have not bought as much myself in the last couple years. Still trying to pick up an off-market deal here or there. There's still money to be made, just the opportunities are harder to get. Picked up a sweet 9 unit last year.
Can you find an off-market property that is a Quick Fix and Flip?
If I was a new investor I would be educating and networking every day.
Are you willing to go out of state? There are opportunities in other parts of the country.
Like I said I know what you're saying but there are people making money everyday in your Market. Try to mimic what they are doing.
thanks Frank, yes I am open for north Texas, and also in near by area in bay area, Sacramento etc
I don't know how networking is going to help, I feel like who ever has the information 1st hand ,they themselves are grabbing it before telling to others :p
I just did a recent investment in Amarillo.
great, congratulations Frank. do you have a good reliable wholesalers or you find good deals by networking ?
I like to search online but can't trust wholesalers, so if you have any pointers or know good wholesalers for north Texas or bay area please let me know or PM me (if you prefer )
Congrats, Frank! Would love to see the details, even if high level only.
@Frank Patalano the biggest thing holding me back is the fact I live in Vancouver and prices here are insane.
I want to buy in Winnipeg market as it’s something I could afford. I’m nervous about buying that far away as I just don’t know how all the details will fall into place.
If I could buy a place in Vancouver for $100,000 and rent it for $1,000 I would have done it years ago.
Planning to buy a place in the next 3-6 months and just hoping I pull the trigger and get it done.
great, congratulations Frank. do you have a good reliable wholesalers or you find good deals by networking ?
I like to search online but can't trust wholesalers, so if you have any pointers or know good wholesalers for north Texas or bay area please let me know or PM me (if you prefer )
I don't know any in those areas. I do get a lot of deals through networking. My suggestion would be to take a weekend down there. Make it the same time as one of their biggest meet ups.
Congrats, Frank! Would love to see the details, even if high level only.
Send me a private message. I'll send you some more info.
@Frank Patalano the biggest thing holding me back is the fact I live in Vancouver and prices here are insane.
I want to buy in Winnipeg market as it’s something I could afford. I’m nervous about buying that far away as I just don’t know how all the details will fall into place.
If I could buy a place in Vancouver for $100,000 and rent it for $1,000 I would have done it years ago.
Planning to buy a place in the next 3-6 months and just hoping I pull the trigger and get it done.
Have you read the long-distance real estate investing by David Greene?
besides that with the beauty of the internet you can build a team online.
I would also take a trip out there for a couple days. Meet a few agents, go to a REIA meeting, etc.
I have told countless people about how to invest in rentals. offered to tell them which house to buy even. only 1 out of maybe a hundred did so.
Everyone will say they want to invest and make money. Who would not want to make money right? But I find there are few that can do this. I am not sure why that is exactly.
One main reason I would imagine is that they all want to go fill out a form and have someone say yes sure go find a house and we will finance it for you. your score is good. Pick one out and wait for the money to flow into there account.
for the same reason there are broke drug dealers, there are broke Americans. We want to dip into our own stash.
If you cannot have 100K in a bank without touching it, you will not make it in the business.
Most people just need a boss to issue them a check at regular intervals. This is why the IRS takes out there cut at regular intervals. because if they waited till the end of the year. there would be nothing left to take.
This is sad but true. and it is the reason there are deals out there. many of the best deals are from kids liquidating there dead parents homes off because they need money NOW! ask yourself, why do they need money now? how many years have they had to save?!?
and as far as education: find a nasty, stinky ugly house and buy it cheap for cash. fix it up, rent it out, finance it. Go get another one that stinks even more.....
Education complete.
Shawn Coverdell
Homes in the Hood
Uhhh, only thing keeping me is not having a job pretty much, or not having enough to invest. No W-2 income, I get VA compensation, and I do app based work like uber for extra money sometimes, nothing serious though not a full time driver, I didnt even need to file last year becuase I didnt make enough. I don't have a job becuase I don't want one right now, its personal reasons I'm not gonna list here, ntm I honestly cant work just anything or else I'll probably just quit like I have done several times since I've been out of the military, I don't want to keep putting employers through that. I haven't done a W-2 tax return in several years. I've got around 36k saved up plus a car that I own. I've have good credit and all that (mid 700's), but I highly doubt anyone would lend to me. Over a year ago, I spoke to a VA loan lender and he even said they can't do anything because they don't consider VA compensation for loans, which I find halarious (as of writing this, I just seen an article that says VA compensation of 70% does qualify me so I'll have to make some calls Monday not sure why that guy told me absolutely no), so after that I didn't speak to anybody else about getting a loan. Tbh I don't want for much, I'm not hurting for anything, I budget etc and do fine renting. But I'd of course like to do better, not getting any younger and I want to invest in real estate. I have like 7 years left to use my GI bill so I'll probably go ahead and do that next fall...(I'm moving soon so not this fall). BAH from GI bill for school + VA compensation and renting a cheap place will help me continue to save, probably save more as my income will double during school semesters. I'd love to be able to buy a small house while going to school to live in, would probably cost the same as renting...but as I said very unlikely if I can't get a loan. I'll find a job when I'm done (that I can tolerate and enjoy doing) and I'll start investing then. Until then I just continue to learn, and evaluate deals, save money. That's pretty much it. But if I could get a loan on a like a 2-3 bedroom now, I'd do it. That's not necessarily investing but it'd be a start, potential room hack etc. Sorry for such long response, but that's my reasoning.
@Frank Patalano
I wish to house hack a SMF next Summer. What holds me back is estimating rehab costs.
By next Summer I will have just enough money to comply with FHA requirements for a 3-4 unit, so not much emergency funds. I am a first-time home buyer and the entire process is new to me. How can I learn estimating rehab costs and especially, manage a project knowing that an FHA approved contractor won't rip me off.
I know this is a lot, any help would be appreciated.
Manuel
@Frank Patalano
I been searching ways to start my network of buyers and sellers. Looking for a website to create a web page and advertising.
I have told countless people about how to invest in rentals. offered to tell them which house to buy even. only 1 out of maybe a hundred did so.
Everyone will say they want to invest and make money. Who would not want to make money right? But I find there are few that can do this. I am not sure why that is exactly.
One main reason I would imagine is that they all want to go fill out a form and have someone say yes sure go find a house and we will finance it for you. your score is good. Pick one out and wait for the money to flow into there account.
for the same reason there are broke drug dealers, there are broke Americans. We want to dip into our own stash.
If you cannot have 100K in a bank without touching it, you will not make it in the business.
Most people just need a boss to issue them a check at regular intervals. This is why the IRS takes out there cut at regular intervals. because if they waited till the end of the year. there would be nothing left to take.
This is sad but true. and it is the reason there are deals out there. many of the best deals are from kids liquidating there dead parents homes off because they need money NOW! ask yourself, why do they need money now? how many years have they had to save?!?
and as far as education: find a nasty, stinky ugly house and buy it cheap for cash. fix it up, rent it out, finance it. Go get another one that stinks even more.....
Education complete.
Shawn Coverdell
Homes in the Hood
Love it. 15 minutes of fame sporting that rented sports car. It has a big following on Social Media.