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

    @Frank Patalano fear of getting things wrong or making the biggest mistakes of your life with no chance of recovering which make sense.

     The biggest mistake in my life was not investing sooner. The biggest mistake of the average person's life is thinking that their home is their biggest asset. Can you lose money in real estate? Absolutely. I've done it myself. But there are many opportunities to make money as well.

    set some goals. Here's an example. Spend three more months educating yourself. While you're doing that try to go to one networking meeting a week. Then spend 1 month looking at so many properties a week. while you're doing that start to line up funding. If you are not ready to make an offer in 4 months after doing all that then maybe real estate is not for you.

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

    @Frank Patalano

    I appreciate you getting back to me, you have any recommendations on books I could read on wholesaling?

     I'm not big into wholesaling myself. I do buy from wholesalers . I've heard a couple people talk about a book by Todd Fleming called if you can't wholesale after this, I've got nothing for you.

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

    @Frank Patalano

    Thank you Frank!  I look forward to telling you about the process.

     Absolutely. I know you've been looking for a while in Fall River and New Bedford.

  • Member since 2019 · 15 posts · 6 votes
    7y

    @Frank Patalano honestly, I don’t know where to start, well I kind of do, I want to start off by flipping contracts but in a way I am afraid

  • Property Manager · Flemington, NJ · Member since 2019 · 3 posts · 1 vote
    7y

    Hey! Just started on the app and wanted to get some advice. I'm a 20 year old young entrepreneurial college student who loves the idea of real estate investing . My father did it years ago before he had us kids and I really enjoyed hearing his successes . I've done a decent amount of reading/listening/learning about real estate investing and I believe it is time to take action . Whats holding me back personally is that I think I'm too young to qualify for any type of financing. With around $9k sitting in the bank, I want to invest but just don't know if I'd be able to, especially in an expensive NJ market . Let me know if anyone has suggestions for a young guy looking to join the real estate world . Thanks !

  • AR · Member since 2019 · 5 posts · 3 votes
    7y

    @Frank Patalano for me it was fear of failure. After reading this question several months ago and the replies I got I finally jumped off and am currently working on my first flip. I'm using this opportunity as an educational tool by doing as much work as I can myself. This will benefit me more with future flips. It will help me know more on what to look for and know when a contractor is b.s.ing me.

  • Shady Spring, WV · Member since 2017 · 1 post · 1 vote
    7y

    @Frank Patalano capital, but I got a deal in the works to house hack. Fingers crossed by doing that and brrring that it will get me the start I need.

  • Member since 2019 · 1 post · 1 vote
    7y

    @Frank Patalano scared of losing money

  • Lake Wylei, SC · Member since 2019 · 1 post · 1 vote
    7y

    @Frank Patalano

    Financing. Possibly a market over saturated with investors.

  • Rental Property Investor · Atlanta, GA · Member since 2016 · 3 posts · 4 votes
    7y

    @Mark Bommarito Hello, ive recently moved to Atlanta, GA from Los Angeles. I know an investor in this area with roughly 15yrs experience in this area and when i first relocated i asked the same question "why buy in area with bad school district and high crime/homelessness?" His answer is the city is putting so much into changing the area. So after being here for 7 months i can actually see the improvement and after running numbers its a great area for residual income if your looking to buy and hold. Maybe even better for fix n flip. Lots of properties under 100k with ARV of 220-400k. Im currently looking to invest in the area near Mercedes-Benz stadium

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

    @Frank Patalano honestly, I don’t know where to start, well I kind of do, I want to start off by flipping contracts but in a way I am afraid

     Flipping contracts is a great way to get started. I don't do it too often but I do buy contracts from wholesalers. One of my favorite ways to buy. 

  • Member since 2019 · 5 posts · 1 vote
    7y

    I am new here, so I apologize for the "newbie" question. I'm in the process of learning and educating myself so I can feel more confident when buying my first property. In reading the book, Rich Dad's Cashflow Quadrant Guide to Financial Freedom, Robert Kiyosaki says you should learn to be a business owner first and understand how to build systems and work with people before jumping into investing, otherwise, it's financial suicide. What are your thoughts on this? While it does make sense, I feel like if I have to wait to become a successful business owner first, it could be a while before I begin my RE investing. 

  • Rental Property Investor · New York, NY · Member since 2019 · 13 posts · 3 votes
    7y

    @Frank Patalano right now my low earning this year and my wife’s bad credit. At this moment researching (listening to #341, and reading articles/blogs) how to no money down finance the purchase of a single family rental assessed at $193k containing $78k in equity for $115k (all that equity and the property are a wedding gift) from the in-laws. Many analyses have shown it to cash flow $250/mo as is, but more after updates.

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

    Hey! Just started on the app and wanted to get some advice. I'm a 20 year old young entrepreneurial college student who loves the idea of real estate investing . My father did it years ago before he had us kids and I really enjoyed hearing his successes . I've done a decent amount of reading/listening/learning about real estate investing and I believe it is time to take action . Whats holding me back personally is that I think I'm too young to qualify for any type of financing. With around $9k sitting in the bank, I want to invest but just don't know if I'd be able to, especially in an expensive NJ market . Let me know if anyone has suggestions for a young guy looking to join the real estate world . Thanks !

     Network the heck out of every real estate event. You are old enough to get a mortgage. Start marketing to owners. Find partners and cash buyers. Try seller financing. I know 17 year olds already doing this.

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

    @Frank Patalano for me it was fear of failure. After reading this question several months ago and the replies I got I finally jumped off and am currently working on my first flip. I'm using this opportunity as an educational tool by doing as much work as I can myself. This will benefit me more with future flips. It will help me know more on what to look for and know when a contractor is b.s.ing me.

     Congratulations. I am happy to see that this is helping some people. Please keep me in the loop about your future success.

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

    @Frank Patalano capital, but I got a deal in the works to house hack. Fingers crossed by doing that and brrring that it will get me the start I need.

    That sounds awesome. House hacking is one of the best ways to get started in today's market.

  • Flipper/Rehabber · Austintown, OH · Member since 2019 · 1 post · 1 vote
    7y

    No money or experience. I’m doing my best to listen and read anything I can to learn but still need the knowledge and the financial backing to get going on my first property.

  • Wholesaler · Eau Claire, WI · Member since 2014 · 133 posts · 32 votes
    7y

    I think the REAL QUESTION here should be... "What's Falling You Forward?"... Finding deals/Marketing for deals that come to you/Prospecting deals , Analyzing Deals(quickly to rule out the thumb and then deep dive mo into da numbers and then if makes sense... Put in da OFFER ...Land da Moneys. And if you think something is holding you back then analyze that... Are you really focused on the GOAL? Once you do that, the obstacles are only in your peripheral vision my friend. 

  • Salt Lake City, UT · Member since 2019 · 42 posts · 30 votes
    7y
    Originally posted by @Jake Last:

    Hey! Just started on the app and wanted to get some advice. I'm a 20 year old young entrepreneurial college student who loves the idea of real estate investing . My father did it years ago before he had us kids and I really enjoyed hearing his successes . I've done a decent amount of reading/listening/learning about real estate investing and I believe it is time to take action . Whats holding me back personally is that I think I'm too young to qualify for any type of financing. With around $9k sitting in the bank, I want to invest but just don't know if I'd be able to, especially in an expensive NJ market . Let me know if anyone has suggestions for a young guy looking to join the real estate world . Thanks !

     If you think you're "too young to qualify for any kind of financing" then you're right and you won't. At least not if you don't do anything about it. I had similar thoughts once too until I actually talked to a lender. Turns out, there are lots of people that would like to lend you money but they likely won't show up at your door. You have to put the work in and seek them out. I would recommend starting with a local credit union or community bank and having a discussion about your goals and your financial situation. Sometimes smaller local institutions are more flexible in what terms they can offer. Another option, (and this is what I did for my property) is to look up a few mortgage brokers to discuss your situation with as they have access to lending programs across multiple financial institutions. Keep in mind, they are sometimes paid commissions from those institutions for connecting them with buyers so you would want to make sure the loan product you decide on really is in your best interest.  Let's say you do that and everyone confirms your suspicion that you can't qualify for anything right now--ask why? Find out what you need to do to qualify. If a lender is unwilling/unable to help you understand why you don't qualify then you don't want to work with them anyway. Move on to the next one. There are a lot of different ways to get financing besides the more traditional way I described but for someone new to real estate I think that's probably the best place to start.

    My other general advice for getting started is to do stuff. I tend to want to have  perfect plan before I start anything but that sometimes prevents you from doing anything. So I would follow some forums on BP, listen to the podcast, read books but then go do something too, such as: talk to lenders, look up and attend local real estate meet ups to make connections(I'm going to my first one tonight and I'm pumped about it!), learn how to analyze deals even if you can't afford them--practice it anyway. Lastly, it sounds like your dad has worked/does work in real estate. There is a huge free resource right there that you could tap into. Don't overlook that. Best of luck to you.

  • Member since 2019 · 22 posts · 8 votes
    7y

    I am new to this forum and I am looking to grow my net worth and cash flow for the future. I make great income with my real estate team in Houston, high credit score and having trouble deciding where to start. I would like to keep my initial personal cash costs below $50-60k on the first opportunity. I recently closed on a minor repairs flip that was a pre-foreclosure. (I wish I would have kept it and refinanced out to keep as a rental - BRRRR) Find an under market property to rehab in a suburban area with good schools or to an area closer in town where it is re-gentrifying and looks like property values increasing rapidly? The potential tenants in the suburbs might be easier to deal with. Any thought or ideas welcome.

  • Adam GlendyePro Member
    Rental Property Investor · Fayetteville, GA · Member since 2019 · 3 posts · 2 votes
    7y

    @Frank Patalano

    I just made my first offer on an investment property in GA near my town. It was a great experience even though I didn’t get the deal. Having my realtor educate me about the 1% rule, comparing comps, and not paying “retail” even though the house was still at a good return was all helpful to my education.

    Now, I just need to find another property in my cash budget.

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

    @Frank Patalano scared of losing money

     I don't like losing money either.

    I'm more worried about my cash losing value over time and would rather have it in a real asset.

    So I am more scared Not to have my money in real estate.

    There are risks no matter what you do with your money.

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

    @Frank Patalano

    Financing. Possibly a market over saturated with investors.

     I worry about a market top as well. I'm also a little spoiled because I bought things cheaper over the last couple of years.

    In regards to financing, part of it depends on what type of real estate you want to do. You could also bring on a partner.

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

    I am new here, so I apologize for the "newbie" question. I'm in the process of learning and educating myself so I can feel more confident when buying my first property. In reading the book, Rich Dad's Cashflow Quadrant Guide to Financial Freedom, Robert Kiyosaki says you should learn to be a business owner first and understand how to build systems and work with people before jumping into investing, otherwise, it's financial suicide. What are your thoughts on this? While it does make sense, I feel like if I have to wait to become a successful business owner first, it could be a while before I begin my RE investing. 

    What do you do now?

    I had a public sector job and started investing in Real Estate.

    I recently quit my main job to do full time real estate. Been gradually opening up a few side businesses along the way as well.

    I love Kiyosaki and his idea does like a good way to go but everyone will have a different path. 

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

    @Frank Patalano right now my low earning this year and my wife’s bad credit. At this moment researching (listening to #341, and reading articles/blogs) how to no money down finance the purchase of a single family rental assessed at $193k containing $78k in equity for $115k (all that equity and the property are a wedding gift) from the in-laws. Many analyses have shown it to cash flow $250/mo as is, but more after updates.

     I can see how the income and credit can slow you down. Sounds like you already have a strategy to solve your problem.

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