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.
Not understanding the financing side. I’m pretty comfortable with the physical property side. The financing, and everything involved with it terrifies me. I’m looking a property now and need to figure out how to fund it... any advice on books to read or other sources of information for creative financing?
@Frank Patalano, What holding me back is money and fear of failure. I want to take a loan out, but credit is fair right now. But I am definitely working on it. I get disability income but I don’t want to be on it. I am to young for disability income. Also, I do not want to work for anyone else, meaning I don’t want to be a employee. I want to build wealth.
I haven't purchased my first property yet. I want to purchase a full duplex. I keep going back and fourth on doing a BRRR or just buying a full duplex that's move in ready. I know that a BRRR property would make more money and probably more business since but it seems like more risk and more cash is needed up front.
I don't know what the phrase full-duplex means. You could go either way. Buying a turnkey is definitely less costly but in the long run will probably make you less profit. House hacking is still better than buying a single-family, so go for either way. More importantly, take action. No quadruplex in your future?
crap credit from a divorce, but my score is up from a 492 last year to 683. Debt free and currently saving a down payment. I should be over 700 and have enough of a down payment for a duplex or triplex house hack by next year
Okay. One step at a time. Just set realistic goals on how much you think you can save every month. How many pages can you read a day? How many podcasts can you listen to? Start networking. Keep educating. I was in Boston six times in the last month networking.
@Frank Patalano, What holding me back is money and fear of failure. I want to take a loan out, but credit is fair right now. But I am definitely working on it. I get disability income but I don’t want to be on it. I am to young for disability income. Also, I do not want to work for anyone else, meaning I don’t want to be a employee. I want to build wealth.
What are the things that you are currently doing to make sure that you never have to be an employee? What what strategy for investing are you currently focused on?
Not understanding the financing side. I’m pretty comfortable with the physical property side. The financing, and everything involved with it terrifies me. I’m looking a property now and need to figure out how to fund it... any advice on books to read or other sources of information for creative financing?
I am honestly not sure what you mean. I have just been paying my credit to get it back up. If your asking the things I focus on is either wholesaling or selling real estate. My plan is to get a score up and take out a loan from the bank to buy a two-family. My other idea is to start wholesaling. I live in Ohio and I think I would need a broker license to do it. I think wholesaling is illegal here. Do you have any suggestions?
I am honestly not sure what you mean. I have just been paying my credit to get it back up. If your asking the things I focus on is either wholesaling or selling real estate. My plan is to get a score up and take out a loan from the bank to buy a two-family. My other idea is to start wholesaling. I live in Ohio and I think I would need a broker license to do it. I think wholesaling is illegal here. Do you have any suggestions?
You said that you never wanted to be an employee. I wasn't sure if you were doing something specific already to follow that path.
There are ways to borrow money without having a bank.
For example if you have the time you could find a partner with money but no time and flip houses. Not wholesale. Fix and flip.
I don't know if wholesaling is illegal or not in your state. Go to your local real estate group and ask there.
How would I find a partner? Just don't know exactly how to approach or locate a partner. Is a partner someone I know? Or is this consider angel investing? I will look into a real estate group about wholesaling. Is there something I could read so I can find a partner that you might know about?
How would I find a partner? Just don't know exactly how to approach or locate a partner. Is a partner someone I know? Or is this consider angel investing? I will look into a real estate group about wholesaling. Is there something I could read so I can find a partner that you might know about?
Join as many local REIAs as you have time to go to.
Usually a money partner is someone whom you already know. They want to get into real estate but they have no time to get involved. You are doing all of the work, they are providing the money.
I’m in learning mode right now. I’ve learned a lot in past 4 weeks and hope to make first offer in August. I’ve aligned mortgage lenders, and investors, have contractors aligned to do work, have just recently found real estate agent that understands what I want to do, which is own single family and duplex properties. What’s holding me back is two things. First do you base your estimate on 15 or 30 year loans?
Second question is on foreclosures. I’ve been on websites like Auction.com, what I don’t know is what to ask or check for prior to bidding?
Excited to get number one and the next one soon after.
I live in the Raleigh-Durham area and the competition is fierce. Not having cash on hand to make deals quickly puts me at a disadvantage. There are plenty of deals to make but lack of readily accessible cash holds me back. That said, I have 2 rehabs happening now and 2 more under contract. While I will make money, I likely overpaid but it was a risk I chose to take just to break into the market, network, and establish relationships I hope will pay off in the future.
I’m in learning mode right now. I’ve learned a lot in past 4 weeks and hope to make first offer in August. I’ve aligned mortgage lenders, and investors, have contractors aligned to do work, have just recently found real estate agent that understands what I want to do, which is own single family and duplex properties. What’s holding me back is two things. First do you base your estimate on 15 or 30 year loans?
Second question is on foreclosures. I’ve been on websites like Auction.com, what I don’t know is what to ask or check for prior to bidding?
Excited to get number one and the next one soon after.
I always base my estimates on 30 year amortizations. Inflation keeps reducing the price of the dollar. Also, you will be making the same payment with higher rents over time.
You have an agent. He should explain to you what to check. Auction websites have special rules. Check the zoning. The housing violations. Can you see the inside? If so bring someone who knows a little about rehabbing but is willing to walk with you for free. Find out if there is a buyer's premium. There is plenty more but I have not bought from an auction website before.
@Frank Patalano The uncertainty of venturing into uncharted waters. It's the deep breath before the plunge.
In simplest terms; failure.
But I/ we (my wife) are working on it.
Matt, I understand. I lost money on my first deal. But failures make me stronger. I still fail once in a while, especially when I get too confident or start to take to on a lot of risk.
I live in the Raleigh-Durham area and the competition is fierce. Not having cash on hand to make deals quickly puts me at a disadvantage. There are plenty of deals to make but lack of readily accessible cash holds me back. That said, I have 2 rehabs happening now and 2 more under contract. While I will make money, I likely overpaid but it was a risk I chose to take just to break into the market, network, and establish relationships I hope will pay off in the future.
Nick. You are doing great. This is a beginner forum. You have 2 rehabs right now and 2 under contract. Wow. You will learn a lot from these. Keep it up. Keep networking. Keep learning. Yes Raleigh is hot. If you want start to send out your own mailers. Find your own opportunities, hopefully with no competition.
@Frank Patalano Trying to find properties that aren't overpriced in the current market. I want to grow my holdings but I will not make unsustainable purchases just to grow.
Also I have a top tier credit score, and I don't want to wreck it with reepated hard pulls from banks for loans, so I'm looking for diamonds in the rough when it comes to private lenders who will loan at low rates w/o credit pulls.
@Frank Patalano Trying to find properties that aren't overpriced in the current market. I want to grow my holdings but I will not make unsustainable purchases just to grow.
Also I have a top tier credit score, and I don't want to wreck it with reepated hard pulls from banks for loans, so I'm looking for diamonds in the rough when it comes to private lenders who will loan at low rates w/o credit pulls.
I agree about many overpriced options. The best deals are the ones that you find yourself.
I've never had a private lender pull my credit before. Weird. Probably because all of my loans are referral based.
Thank you! Love that the advise is practical and things that I can accomplish immediately. What are your favorite resources when looking into other markets? There have to better tools than just Zillow or other sites like that.
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.