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.
Trying to partner up with anyone. There are barely any investor meetings in my town so it’s hard to make connection. If you have hint on how to find partners please let me know.
Also the down payment.
There are tons of meetup events in Reno. I went online and found a whole bunch easily. You're not trying hard enough.
For the down payment, you have a few options. Pick up a second job, partner up, or cut all of your expenses.
For me, I guess fear. Not knowing which strategy will work best. Trying to educate myself while I figure out the right/best approach. Plus this market (Denver area) isn't easy to get started in. I have an opportunity with the condo we are currently living in. Lots of equity. Rent from it should provide decent cash flow, if we could find another place to live. Not sure how to proceed on that strategy yet though. So for now, just doing a lot of reading and getting educated. I know at some point I've got to jump in with both feet and just get the ball rolling.
Yes the Denver Market is hot. Have you thought about looking at properties to see if you moving into one makes sense?
depending on your situation I would be looking at an owner occupied multi. You could do a cash out refi and use that money as a down payment for your new property.
Hi @Frank Patalano. I have considered this possibility. As I'm in my early 50s and not single, it is not an ideal option. But you do what you have to do to make things work I guess. Again still considering it. Also looking into flipping, wholesaleing and long distance options.
For me, I guess fear. Not knowing which strategy will work best. Trying to educate myself while I figure out the right/best approach. Plus this market (Denver area) isn't easy to get started in. I have an opportunity with the condo we are currently living in. Lots of equity. Rent from it should provide decent cash flow, if we could find another place to live. Not sure how to proceed on that strategy yet though. So for now, just doing a lot of reading and getting educated. I know at some point I've got to jump in with both feet and just get the ball rolling.
Yes the Denver Market is hot. Have you thought about looking at properties to see if you moving into one makes sense?
depending on your situation I would be looking at an owner occupied multi. You could do a cash out refi and use that money as a down payment for your new property.
Hi @Frank Patalano. I have considered this possibility. As I'm in my early 50s and not single, it is not an idea option. But you do what you have to do to make things work. Again still considering it. Also looking into flipping, wholesaleing and long distance options.
Thanks for the feedback!
Wholesaling is definitely one of the easiest ways to make money in Real Estate. Because it is an easy way to get started many people try to do it. Not always successfully either.
Depending on your network and connections I would probably pick a local flip vs long distance investing.
My market is cape cod, MA and it is so hot it’s on fire. Dumpy duplexes are $325,000 with 4plexes being closer to $850,000. It’s absolutely unreal.
I have some money to invest with but I don’t like what I’m getting for the money out here. I think I may have to start branching out into other markets.
I’m not sure what’s holding me back but I feel like I’m growing slowly. I own 11 units with a partner and we buy long distance. I started buying 3 years ago. I’m 30 years old currently. The business profits about 6k per month and we don’t touch it except for real estate related expenses. I also only spend about 30% of my W2 income so I save around 5-6k per month personally. Some of which goes into my 401k for the 6% match my company does, and 15% of my income goes into a stock program my company offers to make a guaranteed 15% minimum return every 6 months. I profited 14k last year from that program. I sell every 6 months when I can to buy more real estate, but growth still seems slow. My job pays decently well but I hate it. Maybe my growth only seems slow because I want to quit my job so bad. Quitting a 130k+ job seems like a bad idea right now because I’m leveraging it to grow. Maybe I’m just doing it wrong.
You live in Denver, CO and only spend 30% of your W2 income? HOW??
My market is cape cod, MA and it is so hot it’s on fire. Dumpy duplexes are $325,000 with 4plexes being closer to $850,000. It’s absolutely unreal.
I have some money to invest with but I don’t like what I’m getting for the money out here. I think I may have to start branching out into other markets.
That’s what’s holding me back.
Everything is all in the eye of the beholder. Many people on this page would be drooling to buy a duplex for $325K Especially if they can Airbnb one unit for 6 months of the year. I understand what you are saying though. I have a friend that just bought a house hack in New Bedford. That might have potential since it is a nearby city for you.
Capital and education! I just bought some BP books and tuned into the podcasts! Ready to dial in and do that damn thing!
Education will make it easier to do any type of investing. I read everyday and try to listen to so many podcasts a week. Set goals on this. It works.
Capital. If you are truly dedicated you will set up a plan to find the money. I worked an extra job for decades to pay off debt and have money to invest.
i can’t seem to save enough money. I’ve been pretty reckless with my money and can’t save money fast enough.
Download a spending app. It helps you realize where the money is going. It was very effective when I was trying to count calories. It will be very effective when you are trying to count savings.
@Jaron Walling Well, technically, I spend 0% of my W2 income if I used the rental income to live. I'm single, no kids, and live with roommates on a $130,000+ W2 income. The government takes more than I spend on myself every year. I house-hacked a townhouse when I first moved here and made 50k in appreciation and lived for free/super cheap. I sold that house a few months ago to buy more units in cheaper markets. I don't really spend much on myself so I can remove myself from the corporate world as soon as possible.
I wouldn't necessarily say anything specifically is holding me back, more so I don't know the best strategy to begin with. I'm a 22 year-old recent college grad with no student loans and I have a primary residence that has $25-30k in equity but I only have about $3k in cash and $3k in a work 401k. I'm struggling with the best way to finance my first property w/o selling my primary residence.
I wouldn't necessarily say anything specifically is holding me back, more so I don't know the best strategy to begin with. I'm a 22 year-old recent college grad with no student loans and I have a primary residence that has $25-30k in equity but I only have about $3k in cash and $3k in a work roth. I'm struggling with the best way to finance my first property w/o selling my primary residence.
@Jaron Walling Well, technically, I spend 0% of my W2 income if I used the rental income to live. I'm single, no kids, and live with roommates on a $130,000+ W2 income. The government takes more than I spend on myself every year. I house-hacked a townhouse when I first moved here and made 50k in appreciation and lived for free/super cheap. I sold that house a few months ago to buy more units in cheaper markets. I don't really spend much on myself so I can remove myself from the corporate world as soon as possible.
I love it. Technically I was spending no money from my main job but was getting killed on taxes so I "retired" in June.
I wouldn't necessarily say anything specifically is holding me back, more so I don't know the best strategy to begin with. I'm a 22 year-old recent college grad with no student loans and I have a primary residence that has $25-30k in equity but I only have about $3k in cash and $3k in a work 401k. I'm struggling with the best way to finance my first property w/o selling my primary residence.
Option one is to do a HELOC. Option 2 is to find a partner. Option three is to buy something with seller financing.
@Frank Patalano finding the right people to work with I know I can do it by myself but it’s kinda stressful, and just having a few cash buyers handy I had a few houses I looked at and talk a good deal with the seller but I didn’t have any cash on hand.