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 anyone has any questions regarding hard money here please ask away.. I am happy to help with anything!
Ryan. Thanks for making a comment on this thread. I created this forum post months ago and have been answering things the whole time. I have lent and borrowed millions of dollars in hard money.
More importantly, the question was, what is holding people back from getting started.
What's holding me back from truly investing (i.e., purchasing fix & flips, or rental properties), is money & debt.
So, in an effort to build up enough money to begin truly investing, I plan on starting wholesaling in hopes of helping to payoff my debt, as well as begin saving to purchase property.
However, I've run into a sort of analysis paralysis when it comes to wholesaling, and because I'm a perfectionist, I feel as though I need to have everything perfectly in order. I know that I'm a hands-on learner, so in order to feel 100% comfortable I need to just jump in & start, and just like anything else, it takes practice & consistency to learn, but I guess since REI is something that isn't as readily accepted or taught, the fear of it all just seems to be overwhelming sometimes.
What's holding me back from truly investing (i.e., purchasing fix & flips, or rental properties), is money & debt.
So, in an effort to build up enough money to begin truly investing, I plan on starting wholesaling in hopes of helping to payoff my debt, as well as begin saving to purchase property.
However, I've run into a sort of analysis paralysis when it comes to wholesaling, and because I'm a perfectionist, I feel as though I need to have everything perfectly in order. I know that I'm a hands-on learner, so in order to feel 100% comfortable I need to just jump in & start, and just like anything else, it takes practice & consistency to learn, but I guess since REI is something that isn't as readily accepted or taught, the fear of it all just seems to be overwhelming sometimes.
Wholesaling in Birmingham sounds like a great opportunity. If I only waited for the perfect property I would never own any. Get out there and choose the best opportunity that you can find and take action.
What's holding me back from truly investing (i.e., purchasing fix & flips, or rental properties), is money & debt.
So, in an effort to build up enough money to begin truly investing, I plan on starting wholesaling in hopes of helping to payoff my debt, as well as begin saving to purchase property.
However, I've run into a sort of analysis paralysis when it comes to wholesaling, and because I'm a perfectionist, I feel as though I need to have everything perfectly in order. I know that I'm a hands-on learner, so in order to feel 100% comfortable I need to just jump in & start, and just like anything else, it takes practice & consistency to learn, but I guess since REI is something that isn't as readily accepted or taught, the fear of it all just seems to be overwhelming sometimes.
@Briannan Burns I understand how you feel. I hear the same thing everyday from my students. My advice to those having analysis paralysis is to make it real by taking on some kind of a partner. Working with a partner holds you more accountable. You make a daily plan together, you do this and I'll do that. Your goal is to have your action step done by the next day when you make your next action plan together. Getting out into the real world everyday is the only real way to learn from experience and to get comfortable with actually doing it.
@Briannan Burns I understand how you feel. I hear the same thing everyday from my students. My advice to those having analysis paralysis is to make it real by taking on some kind of a partner. Working with a partner holds you more accountable. You make a daily plan together, you do this and I'll do that. Your goal is to have your action step done by the next day when you make your next action plan together. Getting out into the real world everyday is the only real way to learn from experience and to get comfortable with actually doing it.
Lori welcome to the Forum post. What do you think held you back when you first started?
@Frank Patalano What held me back when I first started was the same things holding most new investors back, like lack of money, lack of education/training, fear of failure, lack of time, trouble finding or analyzing good deals, overwhelm, analysis paralysis. But talking to mentors and taking on a partner who made me accountable fixed it quick by getting me out there in the real world doing it and learning from my own mistakes.
@Frank Patalano What held me back when I first started was the same things holding most new investors back, like lack of money, lack of education/training, fear of failure, lack of time, trouble finding or analyzing good deals, overwhelm, analysis paralysis. But talking to mentors and taking on a partner who made me accountable fixed it quick by getting me out there in the real world doing it and learning from my own mistakes.
Yes. Networking and being held accountable are key. I am actually going to check on someone right now who is supposed to contact me every week and he wants me to hold him accountable.
One word: FEAR. I've looked at tons of houses, and I let fear of the unknown stop me from making an offer. I take a marble with me to look at the properties, and if the marble rolls like crazy, I say deuces and I'm out of there. I know other people are buying these properties and making them work (I see them going under contract days after I look at them), but I just can't bring myself to buy a property with foundation issues or sloped floors. I looked at a house that had pressed board floor joists (floor in kitchen had major marble-roll) and it scared the bejeezus out of me. I couldn't get out of there fast enough, despite the fact that the house is in a highly desirable area. I've had better luck finding other properties to look at that don't appear to have flooring issues, and I even made an offer on one, only to find out that it's under conservatorship and could take forever to get a response to my offer. The next one I'm interested in buying? I find out that it's a secret short sale. Wonk, wonk.... I looked at one a couple of weeks ago that was a great option, but I took too long to run the numbers and within a day of me looking at it, someone else put in under contract. Lesson learned. I'm analyzing another property right now that will need quite a bit of work, but it's in a great location. The other houses around it are newer, in better condition and worth a lot more money. I'm thinking that if I do it right, it will sell for about $50k less than the next lowest price home on the street and I can still make a profit, but that's only if I can buy it for about $20-$30k under asking price. The house reeks of cat urine (money for me!) and needs total gut of kitchen and bathroom. Any thoughts or suggestions?
One word: FEAR. I've looked at tons of houses, and I let fear of the unknown stop me from making an offer. I take a marble with me to look at the properties, and if the marble rolls like crazy, I say deuces and I'm out of there. I know other people are buying these properties and making them work (I see them going under contract days after I look at them), but I just can't bring myself to buy a property with foundation issues or sloped floors. I looked at a house that had pressed board floor joists (floor in kitchen had major marble-roll) and it scared the bejeezus out of me. I couldn't get out of there fast enough, despite the fact that the house is in a highly desirable area. I've had better luck finding other properties to look at that don't appear to have flooring issues, and I even made an offer on one, only to find out that it's under conservatorship and could take forever to get a response to my offer. The next one I'm interested in buying? I find out that it's a secret short sale. Wonk, wonk.... I looked at one a couple of weeks ago that was a great option, but I took too long to run the numbers and within a day of me looking at it, someone else put in under contract. Lesson learned. I'm analyzing another property right now that will need quite a bit of work, but it's in a great location. The other houses around it are newer, in better condition and worth a lot more money. I'm thinking that if I do it right, it will sell for about $50k less than the next lowest price home on the street and I can still make a profit, but that's only if I can buy it for about $20-$30k under asking price. The house reeks of cat urine (money for me!) and needs total gut of kitchen and bathroom. Any thoughts or suggestions?
Keep at it. It sounds like you are learning and growing with every property. I usually don't touch properties with structural issues either. Where are you looking to find these properties?
I once had a mentor tell me to make an offer on every property no matter how low no matter what. Base it on what you think it's worth. Don't worry if they get upset. If you're getting too many offers accepted then you're offering too much.
Hi @ FrankPatalano. I drive for dollars and monitor Zillow daily. I spend A LOT of time estimating repairs and researching contractors and materials. I feel like I'm improving every week, but I also have limited cash funds so I have to limit my search to lower $ properties right now. If I can just get that first one under my belt, I think that will inspire me to find another gear so I can progress to investing full time.
Hi @ FrankPatalano. I drive for dollars and monitor Zillow daily. I spend A LOT of time estimating repairs and researching contractors and materials. I feel like I'm improving every week, but I also have limited cash funds so I have to limit my search to lower $ properties right now. If I can just get that first one under my belt, I think that will inspire me to find another gear so I can progress to investing full time.
Find a partner with money. Your time, their money. Great partnership.
Great question. For myself fear. I am educating myself as much as I can. I have bought/held and sold a duplex few years ago made some mistakes along the way but also learnt some. I would love to make this a full time career. I have done the agent side of RE for a couple of years, realized that sales is not by strong suit. I also have taken a carpentry course in QC about 8 yrs now, worked doing interior work on and off. I definitely prefer to work with my hands.
So what's stopping me?
Hoping to learn more about analyzing properties and partnering up with 1-4 investors and build a business from there. That can be tricky finding the right people. I am in Canada looking to purchase within Canada and US.
In short:
-Fear of failing
-Not comfortable analyzing properties as yet
-Wanting to build a team of 1-4 and build a business
Great question. For myself fear. I am educating myself as much as I can. I have bought/held and sold a duplex few years ago made some mistakes along the way but also learnt some. I would love to make this a full time career. I have done the agent side of RE for a couple of years, realized that sales is not by strong suit. I also have taken a carpentry course in QC about 8 yrs now, worked doing interior work on and off. I definitely prefer to work with my hands.
So what's stopping me?
Hoping to learn more about analyzing properties and partnering up with 1-4 investors and build a business from there. That can be tricky finding the right people. I am in Canada looking to purchase within Canada and US.
In short:
-Fear of failing
-Not comfortable analyzing properties as yet
-Wanting to build a team of 1-4 and build a business
Welcome to the post Nicole. I will say that I don't like failing but I do it often.
The more I fail the more I learn and grow.
You definitely need to start networking. Hit up as many local real estate events that you can. I have found all of my Partnerships through local real estate investment groups. Plus I usually know someone for at least a year before I decide to invest with them. So the sooner you start networking, the better.
Whats holding me back is that i have been down this road in the past. Buy hold rehab sell.
need to get back into it but would like to do partnership.
i have been burned in the past and i feel it comes down to a trust issue.
worked very hard over a decade to get what i have and would like to move forward with people that have more experience in the real estate market. Its always in the back of my mind what if this happens again and usually thats why i havnt got black on the horse
Whats holding me back is that i have been down this road in the past. Buy hold rehab sell.
need to get back into it but would like to do partnership.
i have been burned in the past and i feel it comes down to a trust issue.
worked very hard over a decade to get what i have and would like to move forward with people that have more experience in the real estate market. Its always in the back of my mind what if this happens again and usually thats why i havnt got black on the horse
You have to make a decision if you want to be in a partnership or not.
If you don't that's fine.
If you do, realize that you are not going to get burned in every partnership.
I have 6 different partnerships. Some for almost a decade. I have never been burned on any of them.
I met all of my partners through networking. I generally have to know them for at least a year before I would consider partnering with them. Having lunch or dinner with them monthly let me hear their stories and over time I saw how they handled situations. Do I always agree with my partners no. But I trust them.
@Frank Patalano thank you for taking the time to respond. Yes I started to attend meetups and knowing that this is a slow process. In the mean time I am educating myself more. Thank goodness for this site.
@Frank Patalano thank you for taking the time to respond. Yes I started to attend meetups and knowing that this is a slow process. In the mean time I am educating myself more. Thank goodness for this site.
Frank thank you for your kindness and advice.
No problem. Good luck and keep in touch. I took my kids up to Niagara Falls a couple summers ago. Lake Erie and Lake Ontario were beautiful.
I'm a newbie, and would love to buy rental properties, but what holds me is that properties here in L.A. are too expensive. I'm educating myself as much as possible to learn how to invest in other states that might be cheaper.
I'm a newbie, and would love to buy rental properties, but what holds me is that properties here in L.A. are too expensive. I'm educating myself as much as possible to learn how to invest in other states that might be cheaper.
Do you own your own house now? I would consider doing a house hack in your local market. Or maybe consider partnering on a flip.
You can do out of state but find a place that you can have boots on the ground.
frank pataIano I do own my own house, and actually have a sfr, which we purchased when we refinanced our primary home. I'm about to take my salesperson exam, and i don't know if I should wait to get my license to start looking into investing in rental properties, so I can do my own transactions and save on the realtors fees.
frank pataIano I do own my own house, and actually have a sfr, which we purchased when we refinanced our primary home. I'm about to take my salesperson exam, and i don't know if I should wait to get my license to start looking into investing in rental properties, so I can do my own transactions and save on the realtors fees.
Saving on realtor fees is good and bad. Some agents will push other people offers just to get more commission. Actually most of my friends who are agents and investors often tell them that they are not taking a fee. Sounds weird but still.
The main things that the license brings is credibility, knowledge, connections, and the MLS.