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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  • Lauren GomezPro Member
    Rental Property Investor · Pueblo, CO · Member since 2019 · 11 posts · 3 votes
    7y

    @Frank Patalano down payment.

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

    @Frank Patalano thanks, where can I find those type of partners? 

     Start talking to everyone about real estate. Work, church, kid's school. Someone will eventually say, " I wish I had the time to invest in real estate". That is a possible partners.

    You could also go to local Real Estate Networking meetings. There are sometimes people with money but no deal flow.

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

    @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! 

     Both great books.

    The Cashflow Quadrant is one of the first books that I read. I even brought it with me when I spoke at a recent live event.

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

    @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?

     Write an offer on every opportunity. Just offer what you think that it is worth. It doesn't matter if it is too low. 

    Where are you finding your opportunities?

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

    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

     You are definitely in a tough area. I would consider a partner. Then you could double your efforts and double your price range.

    Keep educating everyday.

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

    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.

    Thanks,

    Ali

     It's pretty hard to find perfection. The ideal house hack? If I waited for the perfect deal I would still be waiting. Find an agent with the heart of a teacher and learn as much as you can on the way.

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

    @Frank Patalano not being able to qualify for a loan but that’s no excuse I’m learning CREI right now so I Can start acquiring them

     If you have the time, partner with someone who has the money. Then you can work together. You are each bringing something to the relationship.

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

    @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).

     You must know someone who has the proper credentials. Partner with someone and split the profit. 

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

    @Frank Patalano need a reliable lender and attorney for my team to get second prop

    I’m working on them now

    Join your local Real Estate Group. Springfield must have one. If not, create one. Get referral of investor friendly lenders and attorneys from the group. 

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

    @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.

     NYC is a tough market. I was in Brooklyn at a Real Estate Meeting today.

    Not sure what time of real estate you are doing. Start to create a basic google doc and start with a summary of steps. Find books and ebooks and podcasts on the specific type of REI that you plan on doing. Edit the steps to keep them in your head.

    1Reply
  • Luke Saglimbeni
    Rental Property Investor · East Longmeadow, MA · Member since 2019 · 154 posts · 64 votes
    7y

    college student housing investing is pretty nice near providence too

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

    @Frank Patalano

    489,000 4 plex with gross rent at 4400. or a 429,000 triplex at 3600 gross rent. price of entry. cost of housing vs rental income.

     If I had to choose between the 4 plex and the 3 plex I would choose the 4. It's close to the 1% rule. Not a great deal but it has potential depending on your expenses.

    0Reply
  • Copeland Duhon
    Member since 2019 · 27 posts · 15 votes
    7y
    The fear of making a mistake so big that I put my family in a financial bind. I have a wife and 5 kids so the pressure is strong.
    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Joshua Klein:
    Originally posted by @Frank Patalano:
    Originally posted by @Joshua Klein:

    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!!!

     Awesome. Congratulations.

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

    Is decided what career path a viable reason?

     If you want me to help I need more to info.

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

    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.

     Not sure if you are doing all of these things at once or if you are making a choice. If it is all of them that is quite a list in your first year. 

    I love the househack idea but I wouldn't wait until April to list. 

    Going with quotes. A bird in hand is better than 2 in the bush.

    1Reply
  • Ali Emami
    Rental Property Investor · Albuquerque, NM · Member since 2019 · 9 posts · 0 votes
    7y
    Originally posted by @Frank Patalano:
    Originally posted by @Ali Emami:
    Originally posted by @Frank Patalano:
    Originally posted by @Ali Emami:

    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.

    Thanks,

    Ali

     It's pretty hard to find perfection. The ideal house hack? If I waited for the perfect deal I would still be waiting. Find an agent with the heart of a teacher and learn as much as you can on the way.

     I love what you just said. Do you think what value I can bring to the table for a realtor that makes them put their time to teach me?

    Thanks,

    Ali

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

    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. 

    Great topic by the way. Very insightful.

     Are you going to house hack it? If so I would consider a triplex. Live in one. Traditionally rent the second one. Airbnb the 3rd. 

    When you were a kid you probably left that comfort zone pretty often. Or that might have been before you created that comfort zone. Take a little risk here or there. Not a lot. Jump off a porch. Not off a cliff.

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

    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. 

    A great way to get rid of people. 

    Shawn Coverdell

    Homes in the Hood

     The question was "What's holding you back"? Not other people.

    There are many great workers in this country. 

    I also agree that many people love the idea of financial freedom but most don't have the habits and discipline to make it happen.

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

    @Frank Patalano down payment.

     You can partner with someone on the first deal to get around that.

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

    college student housing investing is pretty nice near providence too

     It's Ok. I'm a little spoiled. Bought Providence properties years ago. Now the numbers look high to me but ok to others.

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

    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.

    Thanks,

    Ali

     It's pretty hard to find perfection. The ideal house hack? If I waited for the perfect deal I would still be waiting. Find an agent with the heart of a teacher and learn as much as you can on the way.

     I love what you just said. Do you think what value I can bring to the table for a realtor that makes them put their time to teach me?

    Thanks,

    Ali

     Join your local Real Estate Group. Get referrals for investor friendly realtors. You should be able to find someone. They get paid when you close a deal. Being honest, hard working, and committed are the values that an agent will want to see.

    0Reply
  • Steven Lowe
    Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 votes
    7y
    Originally posted by @Frank Patalano:

     Write an offer on every opportunity. Just offer what you think that it is worth. It doesn't matter if it is too low. 

    Where are you finding your opportunities?

    That's what I have always done, sometimes we end up lowballing though and it means I need to sharpen my underwriting skills.  Currently finding opportunities via brokers.  They keep bringing me deals that don't make a lot of sense, or I have to react in less than 24 hours and it's difficult to turn it around that quickly.  

    0Reply
  • David Brizendine
    Lender · Westlake Village, CA · Member since 2016 · 31 posts · 4 votes
    7y

    @Frank Patalano
    What's holding me back is not having my own money. I have a dozen people ready to invest with me but I don't know how to package property to show why they should.

    0Reply
  • Account Closed
    Member since 2019 · 3 posts · 0 votes
    7y

    Thinking that there’s an ideal salary and a ideal amount of money needed to be saved to invest. It’s making me think to much on choosing a career path from a financial standpoint rather than me doing something that I enjoy doing.

    0Reply
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