Providence, RI · Member since 2018 · 29 posts · 409 votes
7y
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.
I am brand new to REI and the biggest thing right now for me is finding a partner that has the cash. I am willing to find the properties do all the leg work and line everything up. I am currently looking for people to lend me the money to start investing, so that we both can help each other out.
@Frank Patalano My sons are going to be investing with me, so our challenge is deciding on best location as I am on GA and they live in FL. We have tried to engage realtors but keep running up against ‘’have you applied for a loan yet question’’ and we/I am unsure what is the best route to go, apply for a mortgage or try find an investor. Still lots questions/stuff we are trying to figure out...
I would suggest that if the realtor is worried about whether you have applied for a loan, they most likely haven't worked with investors. I would reach out to the local forums in the areas you want to invest and see who the realtors are that are most active on the forums. IMO those will be your best choice of who to work with.
If needed, you could also look around and find a good mortgage broker in the area, and have them get you prequalified so you have an idea of what you could borrow. That way the realtor knows what price properties to show you.
Rental Property Investor · Orange County, CA · Member since 2019 · 37 posts · 23 votes
7y
I was raised by super conservative parents who saved methodically for years and didn't really take risks, so I don't really have them to bounce ideas off. I'm in Orange County, CA and bought a condo to get started 2 years back, but it wasn't necessarily done as an investment. I wanted to live by the beach, and worked hard to save the money to buy a place of my own. It has appreciated a bit, but I put 20% down and have a lot of dead equity sitting in there. The internal debate is whether to sell that to get the money back out to do buy some properties for investment purposes, or to rent it out (it will cash flow ever so slightly, but not $200 profit a month on $250k+ in the condo is not good). I have a good chunk of additional money saved which I should be investing in either EFT's, the stock market, etc., but I'm itching to take on a project or venture, so I'm trying to keep everything liquid. I work 50-60 hours a week, so free time is not abundant, but I really want to get some other things going so I can eventually scale back the workload in the office.
Rental Property Investor · Desoto, TX · Member since 2019 · 5 posts · 0 votes
7y
@Frank Patalano
I feel part of what’s holding me back is maybe getting too much information and maybe too many different options of going about purchasing my first property. All the information I see on BiggerPockets is awesome but I I feel overwhelmed with the various methods of rent/hold, flip and brrr. What’s the best method? This is what’s holding me back.
Rental Property Investor · Saint Paul, MN · Member since 2017 · 18 posts · 17 votes
7y
I am yet to get my first rental property, but I've been reading books, on BP, and talking to people for the last 5 years. Slowly getting more involved, and putting in more effort. I think what has been holding me back is fear that I'm going to mess things up. I come from a lower income family, and I'm at a point in my life now that I'm doing ok for myself. I want to go much much further in life though. I've met a good group of guys that have helped me get over this fear, but I just need to take the money I have saved up and pull the trigger on a good deal that I find. I started going to as many meetups as I can last month so I'm going to take the time to network, and hopefully have a deal started within the next 9 months.
P.s. I'm in Minnesota is anyone ever wants to link up and have coffee.
Rental Property Investor · Saint Paul, MN · Member since 2017 · 18 posts · 17 votes
7y
@Arieal Lewis the fact that you are 23 and looking I to this and on BP is a great start. I'm 31 now and wish I started at 23. I dont have a rental as of now but I'm getting closer everyday. Keep this mindset and itll pay off. I dont make a ton but I've been putting what ever I can away even $20 out of each paycheck adds up. I've been saving up for a couple years now and am starting to look at deals.
Rental Property Investor · Orange County, CA · Member since 2019 · 37 posts · 23 votes
7y
@Frank Patalano
I was raised by super conservative parents who saved methodically for years and didn't really take risks, so I don't really have them to bounce ideas off. I'm in Orange County, CA and bought a condo to get started 2 years back, but it wasn't necessarily done as an investment. I wanted to live by the beach, and worked hard to save the money to buy a place of my own. It has appreciated a bit, but I put 20% down and have a lot of dead equity sitting in there. The internal debate is whether to sell that to get the money back out to do buy some properties for investment purposes, or to rent it out (it will cash flow ever so slightly, but not $200 profit a month on $250k+ in the condo is not good). I have a good chunk of additional money saved which I should be investing in either EFT's, the stock market, etc., but I'm itching to take on a project or venture, so I'm trying to keep everything liquid. I work 50-60 hours a week, so free time is not abundant, but I really want to get some other things going so I can eventually scale back the workload in the office.
Real Estate Agent · Tampa Florida · Member since 2019 · 23 posts · 34 votes
7y
@Frank Patalano
Finding a team.
I can go to a REIA meeting but I don't know if that's my type of thing. So now, i'm struggling to find a good, rei friendly agent. Also have no construction connections so finding a reliable GC is proving to be high as well
Investor · Ankeny, IA · Member since 2019 · 92 posts · 33 votes
7y
I just need a lot more time to understand the process and get my educational foundation created. I've only started binging this stuff for about a week now. I'm hooked, I don't have much money, so I'm just really focused on saving as much as I can as soon as I can so that once I've gotten comfortable understanding the basics, I can spend the weeks to develop my plan before I actually get going.
I'm a big learn and plan first guy, so it's really all about getting all of that down before I actually start approaching CPA's, lenders, lawyers, realtors, etc.
@Frank Patalano I would love to know about the investments you are talking about.
Hi Benita. There are many types of investments and this is a long series of comments. I'm not sure which comment/ investment you are referring to. Be more specific and I can explain any type of investment that you want.
I was raised by super conservative parents who saved methodically for years and didn't really take risks, so I don't really have them to bounce ideas off. I'm in Orange County, CA and bought a condo to get started 2 years back, but it wasn't necessarily done as an investment. I wanted to live by the beach, and worked hard to save the money to buy a place of my own. It has appreciated a bit, but I put 20% down and have a lot of dead equity sitting in there. The internal debate is whether to sell that to get the money back out to do buy some properties for investment purposes, or to rent it out (it will cash flow ever so slightly, but not $200 profit a month on $250k+ in the condo is not good). I have a good chunk of additional money saved which I should be investing in either EFT's, the stock market, etc., but I'm itching to take on a project or venture, so I'm trying to keep everything liquid. I work 50-60 hours a week, so free time is not abundant, but I really want to get some other things going so I can eventually scale back the workload in the office.
If I was in your shoes, I would build up and do small investments while you gain experience.
Eventually you could go all in but I would take your time, especially since we are near a market top.
Maybe partner and do a flip. This will also you to build experience but only put up half as much money and half as much risk.
I feel part of what’s holding me back is maybe getting too much information and maybe too many different options of going about purchasing my first property. All the information I see on BiggerPockets is awesome but I I feel overwhelmed with the various methods of rent/hold, flip and brrr. What’s the best method? This is what’s holding me back.
Let's be Frank about this. :>
There is no best method. There are benefits to each type of investment. You have to decide based on your time, money, and experience.
IF you have a lot of money you could do some hard money lending.
If you have some knowledge you could do a flip.
If you like leverage and plan on keeping it for a while you could do a buy and hold.
If you are good at marketing and negotiating, but have little money you could be wholesaling.
You have to pick one strategy and focus on it for a while. You can mix it up here or there but focus is key.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
@Frank Patalano knowing my market and getting outnof current debt
You can learn your market through networking.
Go to local open houses. Meet with agents. Go to the local meetups. Then you can make figure out the market.
You didn't give a lot of info about your current debt. I will say that my partner Jimmy had an easier time paying down is debt as he was house hacking a 4 unit. Profit from your properties allows you to pay down your debts faster.
I am yet to get my first rental property, but I've been reading books, on BP, and talking to people for the last 5 years. Slowly getting more involved, and putting in more effort. I think what has been holding me back is fear that I'm going to mess things up. I come from a lower income family, and I'm at a point in my life now that I'm doing ok for myself. I want to go much much further in life though. I've met a good group of guys that have helped me get over this fear, but I just need to take the money I have saved up and pull the trigger on a good deal that I find. I started going to as many meetups as I can last month so I'm going to take the time to network, and hopefully have a deal started within the next 9 months.
P.s. I'm in Minnesota is anyone ever wants to link up and have coffee.
I'm glad that you are networking and building confidence. I had a mentor one time say that he puts in an offer on every property that he looks at no matter what. If he was going to waste the time to look at it he was going to spend the time to tell the seller what he thought that it was worth.
He goes a few properties that way. More importantly it really helped him take action.
I can go to a REIA meeting but I don't know if that's my type of thing. So now, i'm struggling to find a good, rei friendly agent. Also have no construction connections so finding a reliable GC is proving to be high as well
Going to local REIA meetings was the best thing that I ever did. It is where I find great partners, lenders, and the rest of my team.
I just need a lot more time to understand the process and get my educational foundation created. I've only started binging this stuff for about a week now. I'm hooked, I don't have much money, so I'm just really focused on saving as much as I can as soon as I can so that once I've gotten comfortable understanding the basics, I can spend the weeks to develop my plan before I actually get going.
I'm a big learn and plan first guy, so it's really all about getting all of that down before I actually start approaching CPA's, lenders, lawyers, realtors, etc.
You are early in the process so keep going.
Set goals to do so much reading a day. Try to listen to at least one podcast a day. Try to go to one networking event a week.
I wouldn't worry about a CPA yet. Get yourself 3 people first. A lawyer, a contractor, and an agent.
Go out there and look at so many properties a week.