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.
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"
This sounds a little like an advertisement. What held you back on your first deal John Paul?
In all seriousness, the VA loan program is an amazing program and has already been discussed on this the thread.
The thing holding me back right now is just lack of knowledge. Fixing that by absorbing as much quality content as possible. Reading books and listening to podcasts on my commute. Finally facing another fear by going to a networking event tonight. I have to start building a team now if RE is something I'm actually going to do rather than just learn about. I'm also not interested in investing in the market I live in (NYC) so will need to look into other parts of the Tri-State area or even other markets I'm familiar with. I see the fears that are holding me back and making plans on how to face them head on. Any advice is much appreciated. On this Forum b/c I want to learn from those who have gone before me.
@Frank Patalano I am still fairly new myself so little nervous. Looking at multiple vacant properties, singe and duplexes (about a dozen) from a co-op that I am looking to purchase in a single transaction. Fear is only your mind trying to protect you from the unknown. Can't remember who said it but "if you can already see the end of you goal and exactly how it will happen, your goal is to small".
You definitely need to be educated and have a basic idea of what you are doing. You need multiple exact strategies and I think you should always plan on renting the unit out as a fall safe. Once you put your systems in place it gets easier but, if you are still struggling to get going, go get a partner. It is amazing how you will start working harder and push through fear for someone else than just yourself. Accountability is huge.
@Frank Patalano I am still fairly new myself so little nervous. Looking at multiple vacant properties, singe and duplexes (about a dozen) from a co-op that I am looking to purchase in a single transaction. Fear is only your mind trying to protect you from the unknown. Can't remember who said it but "if you can already see the end of you goal and exactly how it will happen, your goal is to small".
You definitely need to be educated and have a basic idea of what you are doing. You need multiple exact strategies and I think you should always plan on renting the unit out as a fall safe. Once you put your systems in place it gets easier but, if you are still struggling to get going, go get a partner. It is amazing how you will start working harder and push through fear for someone else than just yourself. Accountability is huge.
One thing I think could be holding people back is having to rely on others, especially when they aren't familiar with the process. Wether it's part of the construction process, negotiating or even the legal side of it.
One thing I think could be holding people back is having to rely on others, especially when they aren't familiar with the process. Wether it's part of the construction process, negotiating or even the legal side of it.
You don't really have to rely on others. Actually we've had some people use the need for a mentor as an excuse for what's holding them back.
What causes me slight hesitation is the numbers, financially, I want to ensure the numbers work where I am not struggling to keep everything.
There is a fear of not being able to cover all the expenses that will come in addition to the mortgage payment.
I understand that fear and you can't expect perfection. But you really should not be making offers until you feel pretty comfortable with the numbers. Just keep practicing. See if there's someone else willing to review your analysis.
What did you end up putting under contract anyway? House hacking something in the Boston Market? Flip?
I am focused in the Merrimac Valley area of Haverhill, Methuen and Lawrence. I have a 5-plex that has accepted my offer on Friday, so we have to still do the inspection. My goal is to have a place purchased by the end of the year.
What did you end up putting under contract anyway? House hacking something in the Boston Market? Flip?
I am focused in the Merrimac Valley area of Haverhill, Methuen and Lawrence. I have a 5-plex that has accepted my offer on Friday, so we have to still do the inspection. My goal is to have a place purchased by the end of the year.
If there is a make-or-break with the inspections make sure you walk away. Many newer investors want to hold out because they've already put money into the deal. Walk away.
@Frank Patalano If I had to put money on it, my guess is the deal is going to fall apart. Just from a manual inspection with my agent, I estimate 20k at least in repairs, that in my opinion are not ticky-tacky (gutters/water management is broken, Not enough support poles in the basement holding up the house, poor installation of a front porch that is putting pressure on the internal brick foundation that is starting to bend in).
My gut feeling is that the seller will be opposed to reducing the price based on conversations with my agent and the seller's agent.
@Frank Patalano at the moment it’s my lack of knowledge. I’ve spent that last two years paying off 150k of consumer debt (student loans, vehicles, credit cards). I did the Dave Ramsey baby steps and I like the idea of debt free living, but I hear a lot of new concepts in books where people are using debt to their advantage. I’m trying to pin down the right approach for me and my family.
The thing holding me back right now is just lack of knowledge. Fixing that by absorbing as much quality content as possible. Reading books and listening to podcasts on my commute. Finally facing another fear by going to a networking event tonight. I have to start building a team now if RE is something I'm actually going to do rather than just learn about. I'm also not interested in investing in the market I live in (NYC) so will need to look into other parts of the Tri-State area or even other markets I'm familiar with. I see the fears that are holding me back and making plans on how to face them head on. Any advice is much appreciated. On this Forum b/c I want to learn from those who have gone before me.
Set goals. Read so many Pages a week. Listen to a set number of podcasts a day. Go to to real estate meetups a month. Two or three times a year I go down to a meet-up in Brooklyn. Going to other markets is important. I've networked up in Boston six times in the last 2 weeks. I've heard about some opportunities in Albany, Troy, and Schenectady area. I like Fishkill myself but have not looked at it in a few years. Don't wait for the perfect property. If I did I would still be waiting. Try to run the numbers and buy one that makes sense even if it's not perfect.
@Frank Patalano at the moment it’s my lack of knowledge. I’ve spent that last two years paying off 150k of consumer debt (student loans, vehicles, credit cards). I did the Dave Ramsey baby steps and I like the idea of debt free living, but I hear a lot of new concepts in books where people are using debt to their advantage. I’m trying to pin down the right approach for me and my family.
I have Dave Ramsey and Robert Kiyosaki arguing on my shoulders everyday. I love them both. That is amazing that you've been able to pay off so much debt. So you've already done so many good things for your future. As long as you're only going to use good day you'll be fine.
set goals to read and listen to podcasts everyday. Try to go to so many meetups a month.
when you are ready to invest, whether it is in San Diego, Phoenix, or Portland, you'll be ready.
Thank you! It took a lot of hard work but my wife and I made it happen! That’s exactly my issue right now. Dave is in one ear telling me to buy one investment and pay it off then move on to the next while Robert Kiyosaki is telling me to do more! Haha.
Just learned about BiggerPockets, but I’ll be listening to the podcast and reading as many books as I can to get myself ready to pull the trigger. My wife and I are ready!
Would you suggest out of state investing when it comes to a first time investor?
For me its the fear of making a mistake, but the more and more I listen to podcasts. It seems like the most successful people make mistakes.
You gain knowledge and experience by making mistakes. If you are not failing once in awhile then you are not pushing hard enough or taking enough risks. I'm failing all the time.
Thank you! It took a lot of hard work but my wife and I made it happen! That’s exactly my issue right now. Dave is in one ear telling me to buy one investment and pay it off then move on to the next while Robert Kiyosaki is telling me to do more! Haha.
Just learned about BiggerPockets, but I’ll be listening to the podcast and reading as many books as I can to get myself ready to pull the trigger. My wife and I are ready!
Would you suggest out of state investing when it comes to a first time investor?
I suggest investing wherever you can build the strongest team. For most people that is locally. Your area of California is not too bad for first timers compared to the coastal cities. I have a friend that lives in Brawley.
The 2 things holding me back are: experience and knowledge of the city.
I have read numerous books and listened to dozens of podcast, but still not feeling very confident. I plan to buy my first property in January of 2020.
So, if you have any connections in Columbia, SC, lets grab coffee!
The 2 things holding me back are: experience and knowledge of the city.
I have read numerous books and listened to dozens of podcast, but still not feeling very confident. I plan to buy my first property in January of 2020.
So, if you have any connections in Columbia, SC, lets grab coffee!
You will building connections and contacts by going to as many networking meetings as possible. You will meet a lot of people. Some you will build long term connections with and some that you won't.