So what's holding you back?

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So what's holding you back?

Frank Patalano
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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Jacob Gelinas
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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  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jackie English:

    For the BRRRR method, no one talks about the "seasoning period" that comes with an investment property and how you have to wait 6 months before being able to refinance an investment property and get the cash out of the appraised value. If you don't wait, you can only get the cash out of the purchase price plus renovation costs. Thats a big hiccup that is hidden when explaining this whole deal!

     Speak to other lenders. Not every lender has the same seasoning period.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Brady Moxham:
    Originally posted by @Frank Patalano:
    Originally posted by @Brady Moxham:

    Looking to purchase my first rental property! Feel like I am in the "Paralysis by Analysis" stage. Can not decided between SFH or Duplex. I like the cash flow of duplex but I am currently finishing school (21 years old) and only have so much money for a downpayment! Starting my first full time teaching job in January so will have more income to invest later on!

     I love helping teachers. What percentage do you plan on putting down on the single? What is that as a dollar amount?

    @Frank Patalano I hope to put down about 20%. I am actually thinking of partnering with my brother who has full time job already. Between the two of us we can afford about 35-40K downpayment. Just not sure what the best course of action is with our available funds. Should we maybe look at higher cash flowing duplex? Or two smaller SFH that we could sell in a few years to turn into more properties.

     I would go for higher cashflow. Things rarely cashflow as well as we want them to so the more cushion the better. Your first purchase is to get yourself over the hump and taking action. 

    0Reply
  • Lydia Kawazoe
    New to Real Estate · Houston, TX · Member since 2016 · 12 posts · 5 votes
    7y

    For me, I am a full time university student and part time server, so my time is somewhat limited. Aside from that, I am lacking funds and knowledge to get started. I am currently reading How to Invest in Real Estate by Joshua Dorkin and Brandon Turner and I'm listening to podcasts during commuting to educate myself. I am trying to volunteer once a month at one of my local REIAs here in Houston, TX. I am thinking about taking a wholesaling workshop and pursuing that to get started at least with what I do have. I do have that little bit of time extra in my day to day and I'm thinking I could do mailers for pre-foreclosure properties for now with the club owners' guidance. 

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Lydia Kawazoe:

    For me, I am a full time university student and part time server, so my time is somewhat limited. Aside from that, I am lacking funds and knowledge to get started. I am currently reading How to Invest in Real Estate by Joshua Dorkin and Brandon Turner and I'm listening to podcasts during commuting to educate myself. I am trying to volunteer once a month at one of my local REIAs here in Houston, TX. I am thinking about taking a wholesaling workshop and pursuing that to get started at least with what I do have. I do have that little bit of time extra in my day to day and I'm thinking I could do mailers for pre-foreclosure properties for now with the club owners' guidance. 

     It sounds like you have the right steps in motion. Good job.

    1Reply
  • Christopher Lessing
    Contractor · San Antonio, TX · Member since 2019 · 26 posts · 7 votes
    7y

    What's holding me back? Lack of funding... I Work full time with a part time side job and have a family. I want to really dive deep into real estate but find it hard to secure funding for deals. 

    I would love any advice I could get on how you guys with $0 get started on your first investment property. specifically I am interested in flipping homes and could use an investor that would be willing to partner with me. 


    Any tips or pointers for a young guy like me?

    1Reply
  • Azael Montejo
    Specialist · Queens, NY · Member since 2019 · 4 posts · 0 votes
    7y
    posted by @Frank Patalano:

    Solid advice, it is the offers where I am having the most trouble. I have been practicing my neg. skills lately and I've noticed them to be improving haha.. anyway, thank you for replying to me. Its given me a boost of confidence. 

    My goal is of course, to not lose money. 

    thanks!

    Azael Montejo JR

    CEO Monetmax, LLC

    0Reply
  • Adam Bush
    Member since 2019 · 26 posts · 32 votes
    7y

    Financing and not being sure if the numbers I am running are accurate. Not sure if it is a "deal" or not. I will play with the numbers and possible situations to see if I can make it into a "deal" as well, but always just unsure even when it looks good.

    I have just been analyzing properties online which also makes me wonder if it is really a "deal" because if it was wouldn't someone of gotten it by then.

    I have been paying debt off and saving money all 2019. I've paid about 30k in debt this year and I will be done paying debt by the end of September at the latest and then all of that money will be going into saving for a down payment. I can save 3-4k a month, and I currently have about 10k saved.  My credit score is 780.


    Just trying to save up the money for down payment. I have a couple close friends who are interested in partnering, but I need more funds and better deals. Mostly interested in multifamily, 2-4 unit buildings. 


    I am from the DMV area (DC, Maryland and Virginia), northern virginia specifically but currently reside in the bay area, two expensive markets. Unfortunately those are the 2 markets I am most familiar with, but I have been looking elsewhere as well.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Christopher Lessing:

    What's holding me back? Lack of funding... I Work full time with a part time side job and have a family. I want to really dive deep into real estate but find it hard to secure funding for deals. 

    I would love any advice I could get on how you guys with $0 get started on your first investment property. specifically I am interested in flipping homes and could use an investor that would be willing to partner with me. 


    Any tips or pointers for a young guy like me?

     #1 you may have to sacrifice a little bit and save up some money.

    #2 Network. Go to your local REIA. That is where you will find partners.

    #3 Outside of Real Estate. Talk to your friends and family. You may find someone who has some money but doesn't have any time. That is the perfect partner.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Azael Montejo:
    posted by @Frank Patalano:

    Solid advice, it is the offers where I am having the most trouble. I have been practicing my neg. skills lately and I've noticed them to be improving haha.. anyway, thank you for replying to me. Its given me a boost of confidence. 

    My goal is of course, to not lose money. 

    thanks!

    Azael Montejo JR

    CEO Monetmax, LLC

     Keep practicing. You will get better through practice. Doctors do right? lol

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Adam Bush:

    Financing and not being sure if the numbers I am running are accurate. Not sure if it is a "deal" or not. I will play with the numbers and possible situations to see if I can make it into a "deal" as well, but always just unsure even when it looks good.

    I have just been analyzing properties online which also makes me wonder if it is really a "deal" because if it was wouldn't someone of gotten it by then.

    I have been paying debt off and saving money all 2019. I've paid about 30k in debt this year and I will be done paying debt by the end of September at the latest and then all of that money will be going into saving for a down payment. I can save 3-4k a month, and I currently have about 10k saved.  My credit score is 780.


    Just trying to save up the money for down payment. I have a couple close friends who are interested in partnering, but I need more funds and better deals. Mostly interested in multifamily, 2-4 unit buildings. 


    I am from the DMV area (DC, Maryland and Virginia), northern virginia specifically but currently reside in the bay area, two expensive markets. Unfortunately those are the 2 markets I am most familiar with, but I have been looking elsewhere as well.

     I'm glad you are considering partners. Work with someone who won't get emotional about the prices. 

    There are not many "deals" out there right now. The market is hot.

    But keep practicing running the numbers and try to look at a few in person.

    Eventually you will get more comfortable with it.

    1Reply
  • D Taylor
    Hacienda Heights, CA · Member since 2013 · 12 posts · 1 vote
    7y

    Finding a decent deal in the markets I would like to be in. 

    1Reply
  • Brandon King
    Member since 2019 · 1 post · 1 vote
    7y

    @Frank Patalano Trying to figure out how to get the money to invest in my first property and how to get a loan approved

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

    Finding a decent deal in the markets I would like to be in. 

     Your best shot will be through networking and finding your own off-market deals.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Brandon King:

    @Frank Patalano Trying to figure out how to get the money to invest in my first property and how to get a loan approved

     Sometimes if you really want to invest in real estate you have to sacrifice. I worked two jobs for years in order to build up money. Depending on your debts , Credit and income , you may need to get a partner.

    0Reply
  • Hezekiah Butler
    Richmond, VA · Member since 2019 · 10 posts · 4 votes
    7y

    @Frank Patalano

    Know-how/education. The mindset and approach is very different then the majority of where I’ve been professional and personally, and evolving my entire thought process is challenging.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Hezekiah Butler:

    @Frank Patalano

    Know-how/education. The mindset and approach is very different then the majority of where I’ve been professional and personally, and evolving my entire thought process is challenging.

     The good news is that you're open to changing your mindset. Also it is so much easier today with the internet.

    0Reply
  • Timothy Gomes
    Member since 2019 · 3 posts · 2 votes
    7y

    Whats holding me back? I haven't set an appointment yet to sit down and have a chat with Frank Patalano! What's your schedule looking like Frank?

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Timothy Gomes:

    Whats holding me back? I haven't set an appointment yet to sit down and have a chat with Frank Patalano! What's your schedule looking like Frank?

    DM me. You are local we can set something up to help you.

    0Reply
  • Zakk Roman
    Member since 2019 · 1 post · 1 vote
    7y

    @Frank Patalano

    Money.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Zakk Roman:

    @Frank Patalano

    Money.

     If you have time to commit to real estate you'll still be fine. To start out with you will have to be willing to wholesale and bird dog for others. It's a start and will help you build experience.  Besides that you could partner with someone. 

    0Reply
  • John Niola
    Member since 2019 · 1 post · 0 votes
    7y

    @Jacob Gelinas this is exactly whats holding me back right now.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @John Niola:

    @Jacob Gelinas this is exactly whats holding me back right now.

    So fear of overpaying. I don't know why Jacob doesn't answer this post. 

    You are going to laugh but I had a fear of overpaying at the bottom of the market too. 

    0Reply
  • Ryan M.
    Investor · Medford, MA · Member since 2017 · 56 posts · 27 votes
    7y

    @Frank Patalano Fear. Fear of making the wrong purchase. Fear that no matter how many times I run the runners I've made a mistake that will cost me.

    But I am pushing through and have a house under contract. Numbers look right, and I have to trust the system.

    1Reply
  • John WilliamsBusiness Member
    Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
    7y

    If there are any active duty service members or veterans out there thinking about investing: Your VA loan is a great way to get your foot in the door! You can buy a small multi family or even house hack a single family home for no money down! Ive used this strategy myself and have seen others use it successfully as well!

    I'll be happy to chat with you military investors out there!

    John Paul Williams, Realtor/Investor

    Clarksville, TN -"A growing city where appreciation meets cash flow"

    [email protected]931-272-3065
    Rent My Home - Property Management4.8217 Reviews
    WebsiteView Page
    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Ryan M.:

    @Frank Patalano Fear. Fear of making the wrong purchase. Fear that no matter how many times I run the runners I've made a mistake that will cost me.

    But I am pushing through and have a house under contract. Numbers look right, and I have to trust the system.

     Yes. Trust your system. Even if your numbers are a little off, that's okay. You will have learned so much by taking action.

    0Reply
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