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.
Specialist · Denison, TX · Member since 2017 · 22 posts · 17 votes
7y
@Frank Patalano
Great question and discussion, Frank, thank you! I’ve enjoyed reading other folks challenges and hang ups, and reading responses/advice.
I think my hangup is I haven’t nailed down how to analyze a multi family deal with confidence. It would seem that that would be my first actionable step. I am apprehensive because I personally don’t have great credit at the moment, and have zero personal capital (I’m open abt the state of my personal finances in my bio), so everything would be leveraged with OP$ and it would be mostly a learning experience. With all that in mind, I think I’ve been too passive in educating myself, and need to practice analyzing deals. Thoughts?
Working on fixing up my finances. Started researching in real estate investing just a few months ago, where I came across this amazing site (Biggerpockets).So, in the meantime I am educating myself as much as I can: immersing myself in books, podcast, attending local REIA meetings and as well reviewing great posts like these on forums. As I continue to look at all the types of real estate investing, buy and hold (likely BRRRR) has peak the most interest for me to start out. I plan to "house-hack" my first real estate investment (enjoy the benefits of a lower down on a residential loan) and get first-hand experience on being a landlord and managing a property. After a year or so living at the property, I would want to seek out for a second multi-family property and likely "house-hack" as well. After obtaining a few investments and creating this passive, long-term income, I plan on continuing my success with investing in fix and flip as well.
Great question and discussion, Frank, thank you! I’ve enjoyed reading other folks challenges and hang ups, and reading responses/advice.
I think my hangup is I haven’t nailed down how to analyze a multi family deal with confidence. It would seem that that would be my first actionable step. I am apprehensive because I personally don’t have great credit at the moment, and have zero personal capital (I’m open abt the state of my personal finances in my bio), so everything would be leveraged with OP$ and it would be mostly a learning experience. With all that in mind, I think I’ve been too passive in educating myself, and need to practice analyzing deals. Thoughts?
Set Goals on what you want to accomplish everyday. Get an accountability partner. Someone who will hold your feet to the fire.
Start talking to others at networking meetings. Find a deal. Put it under contract. Then bring it to others.
On smaller properties, You don't always need the money. You need to find a great deal.
What’s holding me back are funds. I’m working on my credit and saving for a down payment but I’m not sure if there are other options out there I can advantage of in the meantime.
What’s holding me back are funds. I’m working on my credit and saving for a down payment but I’m not sure if there are other options out there I can advantage of in the meantime.
Also, other options include getting a head start by learning a lot about REI so that way when you are ready you'll be off to a great start.
What’s holding me back are funds. I’m working on my credit and saving for a down payment but I’m not sure if there are other options out there I can advantage of in the meantime.
Find a partner with Money but no time to do deals. Your time and their money is the perfect partnership.
@Ola Dantis thanks, I study vast subjects, anything specific I should be focusing on starting off?
Hey Jalissa,
I'm so glad you asked. Honestly, I think the reason why many fail at REI is that they skip the building the Mindset stage and jump straight into learning the technical parts of REI, which is fine.
However, many people forget to recognize that an important part of running a business is Mindset and sweeping away all contaminants of the mind really helps to stay in the game in the long run. The discipline of the mind is the most important factor.
One way to do that is by reading topics regarding Mindset. I can recommend you with a ton of books, but I'll start with just two:
Richest Man in Babylon
Cashflow Quadrant
These books are great to start with and to help challenge your conventional thinking.
I'd be more than happy to share many others with you!
Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 votes
7y
@Frank Patalano
Great question. Having the time to get to an acceptable volume of deals. My ratio right now is I need to look at about 100 deals before writing an offer. I've only written 2 offers in the last 3 months. Nothing accepted yet. How many offers do I need to write before one gets accepted? I can't even answer that right now. 20? 30? I think I just need to generate more volume somehow. Clone myself maybe?
Accountant · New York, NY · Member since 2019 · 14 posts · 1 vote
7y
For me it’s a lack of knowledge in the overall business, lack of inventory within my price range in my immediate area and saving up for a down payment. I’m setting up a time frame to invest in a property by next year and looking to learn as quickly as possible to meet that goal
I'm really unsure how to know the location and a good deal. I made an Excel sheet to minimize risks, but they are lots of unkown parameters that no one can predict.
Should I jumb with FHA and buy or save to have enough cash reserve for a unpredictable disaster?
How to know neighborhoods, demographic and market? Should I do field research? Sometimes I think I should Just go with the gut instinct for the first time and get pinch in the face to learn better because waiting doesn't keep me close to do action.
Thanks,
Ali
Are you looking local? Or out of state?
Are you considering a house hack, flip, or wholesale?
Where are you located?
I'm looking for an ideal house hack with minor repairs as my first baby step. I live in Albuquerque, NM and looking to find something here.
Fort Lauderdale, FL · Member since 2019 · 14 posts · 4 votes
7y
@Frank Patalano
Funding. Im not a US citizen nor alien resident and obtaining funding is the reason why I can't even bid on the properties that I have interest with (looking at auction bidding on foreclosure properties).
New York City, NY · Member since 2019 · 47 posts · 12 votes
7y
@Frank Patalano Not having enough knowledge yet. Can’t get the sequence/steps right in my head yet. Most important of all, looking for realtors that comes by reliable recommendation.
The realtor asked me to submit an offer and I don't know where to find a template to do so. I'm not using a realtor.
The realtor asked you to submit an offer? Are they the seller's agent?
If so have them write it up. You can view, edit, and approve.
I got the job done. Closed on the deal last Friday, tenant occupied. I'll start the punch list on Thursday. I'm looking forward to 6mo from now. BRRRR!!!
Real Estate Broker · Indianapolis, IN · Member since 2019 · 3 posts · 1 vote
7y
As Ben Franklin said, “by failing to prepare, you are preparing to fail.”
I plan for my first property to be a house hack 3 or 4 unit near downtown in one of the up and coming B class neighborhoods, will live in 1 unit and the other 2 or 3 will pay all costs plus hopefully a small amount of cash flow.
1. Currently own a SFR in the suburbs as my primary residence. Best school district in my area, waiting for April/May to sell and get the largest return.
2. Renovating my current SFR to convert a room into a bedroom, to try to get the largest return.
3. Stacking more cash. Saving 40% of my income so that I will be able to hopefully buy 2 properties next year. Once the house hack is in place, I’ll be able to save 65% of my income + any cash flow, so I can put that to work.
4. I need more practice analyzing and learning neighborhoods. I’ve been driving neighborhoods every weekend.
To make sure my foundation is solid, it will be the best choice to wait 6 months.
New to Real Estate · Nutley · Member since 2019 · 6 posts · 2 votes
7y
My main hang up is just getting started. I live in a very expensive area (NJ) and am having difficulty with finding that first property and getting the ball rolling. I initially had the goal of buying multi family and renting out the units, but even getting two units in an area like Jersey City will make no sense from the return standpoint. I was looking at $600-700k properties and not seeing huge upside from a cash flow/return standpoint after expenses are accounted for. I then completely changed my goal to be more in the fix/flip area and possibly in AirBnB, and that is where I currently am from a mindset standpoint.
I want to surround myself with as many like-minded people as possible and grow from there, whether it be by mentorship or forming partnerships that can lead to mutually beneficial goals being met. I have no doubt in my mind that I will do this and become successful at it, but having worked in corporate since 2006 and never really going away from that comfort zone, just finding that first property is the hold up.
Investor · Clatskanie, OR · Member since 2014 · 212 posts · 233 votes
7y
WORK
If you don't work, you don't eat.....Unless you are an American.
Ask anyone if they would like to become a millionaire in less than 10 years and they will probably say yes. Show them the steps they have to make. Show them your beat to crap truck and your wardrobe of caulking stained shirts and jeans.