So what's holding you back?

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?

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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.

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  • Member since 2019 · 2 posts · 1 vote
    7y

    @Frank Patalano

    Debt that I could have avoided.

  • Member since 2019 · 12 posts · 2 votes
    7y

    me too jacob thats me exactly

  • Rental Property Investor · Seattle, WA · Member since 2018 · 51 posts · 9 votes
    7y

    @Frank Patalano I feel like right now that pre approval letter is holding me back. But I’m trying to be creative and partner up with other investors. So I can get that pre approval letter and get in

  • Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
    7y
    Originally posted by @Nick Rutkowski:

    @Frank Patalano

    I bought two multifamily properties, one cash flows and the other is a work in progress. What’s holding me back is money and man power.

    I totally understand what you're saying.

    BUT.... if you think on to it the real reason is FEAR, because both reasons, man power and money you can get of you really are determined, is the fear that holds you back from doing those steps to get them. .

  • Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Sami Gren Great theory, you're right fear holds everyone back. Although you're shooting from the hip there... The real reason is patience. Everything comes in time. Thanks for playing. 

  • NYC, NY · Member since 2016 · 617 posts · 456 votes
    7y

    A great post and thread.

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    I have noticed that a lot of people are held back because their options in life aren't painful enough.  They are just comfortable enough to not make the change and leap into real estate.  It's kind of the design of the middle class in general.  Just enough to not change.

  • Henry R.Pro Member
    Rental Property Investor · Saratoga County, NY · Member since 2013 · 178 posts · 73 votes
    7y

    @Frank Patalano, Thanks Frank, great advice!

  • Wausau, WI · Member since 2019 · 1 post · 0 votes
    7y

    @Frank Patalano

    I have done as much research as possible. The only thing holding me back is money, I need a partner to get started.

  • Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
    7y

    If Grant Cardone were here he would be disappointed in us all for not doing 10X more! haha

  • Member since 2018 · 21 posts · 8 votes
    7y

    @Frank Patalano Lack of experience in identifying opportunities that include both value and cash flow combined with the fact that such opportunities are more difficult than ever to find these days.

  • Rental Property Investor · Baltimore, MD · Member since 2018 · 13 posts · 8 votes
    7y

    @Frank Patalano - I’m not sure I count as new. I moved in with my GF 10 yrs ago, and rented my house. We bought a house together, and rented her house. My mom died last year and I used her final gift to buy a 3/1 townhouse as a rental. My GF is now my wife, but I’ve only in the last year started focusing on learning investing skills instead of fighting through it.

    We just bought a family home and are renovating our last house to sell. Given we are two working professionals I’d like to keep it to one transaction a year and manage my multiple buy-holds.

    great question

    Jeff

  • Investor · Woodbridge, VA · Member since 2019 · 162 posts · 64 votes
    7y

    I've always wanted to REI (11 years I waited), found BP two weeks ago, right now I'm putting together my team. I have a realtor, looking for contractors, and partners. Just yesterday I talked to an HML to have a better idea of their process. I have a few deals I want to put offers in for, however, my only excuse (reason) for not putting offers in is, should any of the offers be accepted I need a team ready to make things happen. I have a trusted person in the area who is familiar with estimating building costs. All in all I want to make sure my learning curve is not that steep, by learning from others mistakes from the BP Podcasts.

  • Rental Property Investor · Bel Air, MD · Member since 2018 · 40 posts · 16 votes
    7y

    Lack of a plan

  • Member since 2018 · 6 posts · 3 votes
    7y

    @Frank Patalano

    The only thing stopping is fear. Fear that I might messed up, lose money, I don’t know enough about investing in real estate. That’s one obstacle I need to get over and get my feet wet in the game.

  • Rental Property Investor · Austin, TX · Member since 2018 · 98 posts · 39 votes
    7y

    @Frank Patalano

    Lack of consistent income (I’m a real estate agent in a highly competitive market). Switched firms recently and still adjusting and making far less than I did with my previous firm.

    Still, closing on our first SFR on 4/4, but full of fear over tenants not paying their rent, the house having problems that'd cost us thousands of dollars. My wife is now 3 months pregnant , which is amazing, but not alleviating the fear; quite the opposite. Many sleepless nights over how we're going to pay our NYC rent (read: horrific) once she stops working... hence putting all of our savings into this little 4br 1ba with a $300/month cash flow (conservative) and hoping to build up from there.

    It’s been an amazing learning process that’s taken over two months already since the offer got accepted; first the seller postponed our initial closing, then our financing fell through only a couple of days before the second closing date, we got a 30-day extension, then seller didn’t have the clear CO for the third closing date, we gave them another 2 weeks, hoping to close now on April 4th - is fourth time the charm? Wish me luck!

  • Flipper/Rehabber · Nashville, TN · Member since 2019 · 24 posts · 6 votes
    7y

    It is scary to take that first leap, but once you just take a look at the numbers it's an obvious choice. Every purchase is always a risk, but in a constantly expanding market there are opportunities everywhere! We are pushing out deals 3-5 times a week and it doesn't seem to be slowing down in this market.

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Victor Suarez:

    @Frank Patalano making 2.6m in 7 months turned me into a turd....

     Nice job. How did you pull that off? Monopoly money doesn't count.

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Fadwa Mufo:

    can anyone give suggestions on what course or subject should I take in the university to help me become a good real estate investor..please help me

     Take some finance, marketing, and sales classes. Besides that you won't learn that much about real estate at school. Join local Education groups. 

  • Rental Property Investor · Knoxville, TN · Member since 2018 · 36 posts · 36 votes
    7y

    @Frank Patalano My first purchase after years of thought was through a turnkey company. Drove 8 hours to inspect before closing, all looked good. Met the property manager, all went well enough. Closed, took about a month on placing first tenant (January, so slow time of year), all good. First month payment came through, PM had discounted first rent 50% off without passing it by me. Second month, tenant has paid 5/6 of what is due and is late with the rest. Convos with PM are fine, but assurances dont pay the bills. I'm waiting to see how this pans out before jumping forward with another turnkey property.

    Trolling the market locally for deals, just need to put a bit more time in. Think I've found the right property via MLS, just need to schedule a visit and start negotiations!

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Arieal Lewis:

    @Frank Patalano

    Debt that I could have avoided.

     Don't beat yourself up. Just stop digging the the hole and start to move in the right direction. Even successful people screw up once in awhile. 

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Taylor Smith:

    @Frank Patalano I feel like right now that pre approval letter is holding me back. But I’m trying to be creative and partner up with other investors. So I can get that pre approval letter and get in

     I like how you are trying to think of creative ideas. Have you thought of hard money lending?

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Account Closed:

    As a first time investor, people may fear about higher loss ratio and that's what holds them back! 

     Fear of loss is usually the biggest reason. But education and experience can reduce (but not eliminate) fear.

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Ian Walsh:

    I have noticed that a lot of people are held back because their options in life aren't painful enough.  They are just comfortable enough to not make the change and leap into real estate.  It's kind of the design of the middle class in general.  Just enough to not change.

     As Dave Ramsey says, "When you are sick and tired of being sick and tired" you will change.

  • Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Brett Milbradt:

    @Frank Patalano

    I have done as much research as possible. The only thing holding me back is money, I need a partner to get started.

     It's rare in this market but there are still people doing seller financing. A partner will help you tremendously. Unfortunately I had to sacrifice to get downpayments for years.

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