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.
Rental Property Investor · Columbus, OH (columbus oh) · Member since 2019 · 7 posts · 0 votes
7y
@Vinay H.
So much analysis and so much investigation can go into answering this question! In my opinion buy anytime you are ready. I bought in 2005 and bought 2001 and 2009 and lastly 2018. Every time has it’s pricing as well as it’s supplies of properties and sellers mind set. At the end of the day it will all work. Just save money and buy when you find the right opportunity. Negotiate aggressively.
Rental Property Investor · Ledyard, CT · Member since 2019 · 5 posts · 4 votes
7y
Right now the only thing that is stopping me is paying off some debt. Once my debt to income ratio is where I want it to be, then I’m going all in! I should be ready to go soon after the holidays. Besides that it’s getting the wife on board.
Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes
7y
@Frank Patalano I am closing on my second property right now. I would say the biggest thing for me is time. I live a pretty interesting life style as most of us probably do. I travel as a field engineer for a construction company working 60-70 hrs a week. Getting up at 3:30 to go to the gym and working till 6:30 is tough. Being committed to the times that you are able to sit down and look at deals is extremely important for me to execute on. I have been blessed with a good career but I would say time for me is the biggest hold back at this point.
@Frank Patalano well I pull the trigger made an offer so I felt I was over the hump but it fell through and now I can't get realtors to show me property and now second guessing financing. Looking at pulling my small 50k in 457 to invest the cash into my self and the real estate. Silly?
You can't get any realtors to show you properties? Very weird. Sounds like you need to call new realtors.
I wouldn't recommend pulling the 457 unless you were doing a house hack.
Specialist · San Jose, CA · Member since 2019 · 2 posts · 0 votes
7y
For me it's a lack of experience. I am a brand new investor out of the South Bay Area with limited capital. My goal is to fix and flip properties in my area as well as purchase some out of state rental properties (single and multi-family). I have been educating myself as much as possible and feel as if wholesaling is the best way for me to get started based on my limited funds. I am having a hard time finding motivated sellers and I want to make sure I'm investing my time in the right areas. Ideally, I would like to find someone in my area to act as a sort of "mentor" who I could help for free as this would allow me to gain the experience I feel is necessary to be successful in REI.
I am ready to buy a property but I can't seem to find one. When I tell realtors I am looking for at least 10% ROI they send me properties above price range or can't find any properties matching that description. I'm starting to wonder if I am being unrealistic in this market or not analyzing the properties properly. I have the cash to buy and the motivation but not finding a property is holding me back. Any tips on finding a property or a good market to find them in are welcome :).
In many markets that is currently an unrealistic number.
You have a much better shot if you are skipping the realtors and finding the distressed opportunities yourself.
@Frank Patalano Feeling like I don’t understand my market, or all the moving pieces I need to account for in making an educated decision. Feeling like failure will be financially crippling, since it will be my first deal, and a substantial one at that. Feeling like I will not be taken seriously due to my inexperience and youth. Going against every lesson my parents taught me about savings and frugality in making a $50k downpayment on a property— an investment—- instead of “saving” it. It’s a dissonant feeling
I have just started reading / lurking this forum. I’ve been holding back all of my life and it’s time to stop. My current job has me in Southern California. I don’t want to invest here, haven’t been in the area long enough to find a niche. Property prices here are ridiculous, and I feel my only option is to do long distance for now. I’m originally from Central Ohio. I’m more familiar with that area , but am still afraid I’ll get stuck with a lemon in the areas I can afford to start out in. All of the research tells me that I should be OK, but the fear still rules. Anybody have a similar issue?
Ron B.
I always tell people to invest in the area that they can build the strongest team in. If you used to live in Ohio that sounds like where you can build the strongest team.
The Comfort zone has been holding me back for at least five years (Maybe eight!). Ten years ago I bought my first multi (2 family) at a short sale and BRR’d it before I even knew what that meant. It’s been pretty successful for me with both cash flow and appreciation. I’ve looked at hundreds of deals in the last eight or so years and have not pulled the trigger on buying another one although many deals have passed me by.
That is until listening to Brandon/David on bigger pockets and also You and Jimmy talking about the BRRR strategy on the Cash flow Kings. As of now we will hopefully soon be closing on a five unit deal- Off market- Owner financed (really close to a 2% deal!).
Having a solid Partner has been instrumental to me as well not only for analyzing deals but also for accountability.
The big question is what’s next? Find me the next deal I’m ready.
NICE JOB!
Give yourself 1 month to stabilize the new property.
@Frank Patalano I want to get started, but don’t have money and haven’t found anyone that has money to partner with or help me get started. I want to start with duplex’s. I am also in credit card debit and just bought my first home last year. I guess I just don’t know where to start. :(
I had to sacrifice and work 2 jobs for over a decade in order to get my financial house in order and grow in real estate. If you really want to do this you may have to sacrifice as well.
Pay off that credit card debt.
Keep networking to find a partner. You might have to share the first deal.
Real Estate Agent · Irvine, CA · Member since 2014 · 68 posts · 54 votes
7y
@Frank Patalano Hard to find deals in my market. Numbers are always tight. Hard to find private money. I know a good hard money lender but need private money to close the deal.
When you are looking at what type of deal is a good deal and where is a good deal for you. I would say that you need to be very cautious in asking this question, the reason is this is the "HOW" part of investing which in my opinion is the 2nd part of the equation.
I think you need to focus on the first part of the equation which is the “Why”.
Focusing on “YOUR" goals and what you want as a result of owning real estate is the most important. Sit back and ask what and how your life will be impacted as a result of owning real estate assets. The result of owning is what?? is it cash flow, appreciation, 1031, pass down to family as a legacy, this is also what your exit strategy will be. Not many people think about the end goal and the exit strategy when looking at deals. I know because I was one of those people. I kept asking if a certain deal was a good or bad deal and would go with concensus of people and make my decision. However if I ever created goals and an exit strategy then I would have realized that these properties did not align with my goals. I think it aligned more with their goals which to no fault of their own, were not even close to my goals.
So my strategy (my “How”) did not align with my goals (my “Why”).. and this was disastrous for me. Focus on the goal end destination. Then you build your strategy that’s going to get you to your goals it’s kind of like where you’re driving to is the end destinations and the freeways are the strategy that will get you there. No one ever asked or advised me on this and it almost made me bankrupt. Don’t ask if it’s a good or bad deal, have your definitions and strategy set first. Then focus on the market / city that will get you to your goal based on the strategy. That’s my advice I give to owners and leads that want to buy or learn to buy investment properties, we manage thousands of properties and 50/60% of our clients are new to real estate or learning how to truly build wealth and do not live locally or in the same state or country. I always stress them knowing what is a good deal for them, not for me. To me that’s helping people build wealth, not just telling them to buy or not to buy. Good luck to you
What?
I've read your comment many times but still don't completely understand what you are saying.
I guess you are saying that if you want to invest for appreciation go to certain markets. If you want to invest for Cashflow go after other markets.
Scared I will fail or won’t do as well in my area as everyone else. I know it’s best to get out there and do it instead of dwelling on it but that is what’s holding me back.
I lost money on my first deal. I have lost money on other deals through the years. I have also made decent money over the years. Get out there and take small risks. That is how you will learn and grow.
@Frank Patalano for me I feel like I’m super young. I just turned 20 and I’m a sophomore in college full time. I think I’m nervous that if I buy a investment property and it doesn’t go well then I’m screwed for the rest of my life.
You are not screwed. People who wait until they are 60 are screwed. People who have regret at the end of their life are screwed. If I knew then what I knew now I would have been a lot better off.
Start by educating yourself in real estate. Read, listen to podcasts, network. Going to Open Houses is free. Learn from them.
@Frank Patalano I recently got into BiggerPockets podcasts and want to get going on real estate! What’s holding me back is I don’t know what type of property I want to find my niche in... suggestions on how to figure it out?
You have to figure out what your goals and strengths are.
If you have money, you can do a flip.
If you have a larger amount of money, do hard money lending.
If you have time, wholesaling is one option.
If you need a place to live, start off with a house hack.
You have to make the choice yourself. Look at your strengths and weaknesses first.
So much analysis and so much investigation can go into answering this question! In my opinion buy anytime you are ready. I bought in 2005 and bought 2001 and 2009 and lastly 2018. Every time has it’s pricing as well as it’s supplies of properties and sellers mind set. At the end of the day it will all work. Just save money and buy when you find the right opportunity. Negotiate aggressively.
We have bought something every year since 2009. Are the opportunities harder to find? Yes. But hold out for a number that works for you and be willing to move on.
Right now the only thing that is stopping me is paying off some debt. Once my debt to income ratio is where I want it to be, then I’m going all in! I should be ready to go soon after the holidays. Besides that it’s getting the wife on board.
Hi Ramon,
We are almost neighbors. You being out there near Foxwoods.
DTI can be an issue for some. At least you have a plan for getting out.
Getting your wife on board may be harder. I suggest discussing 5 year goals with her. If nothing else you may need to make separate plans and use some of your retirement money to invest.
@Frank Patalano I am closing on my second property right now. I would say the biggest thing for me is time. I live a pretty interesting life style as most of us probably do. I travel as a field engineer for a construction company working 60-70 hrs a week. Getting up at 3:30 to go to the gym and working till 6:30 is tough. Being committed to the times that you are able to sit down and look at deals is extremely important for me to execute on. I have been blessed with a good career but I would say time for me is the biggest hold back at this point.
Is there a way that you can partner with someone who has more time? That is what I did for years. It's better to share 4 deals then to only have the time for 1.
Keep at it. I pushed a similar schedule for years. It allowed me to break free.
Trying to be creative- Is there anything that you could have a VA do? Or a property manager?
Rental Property Investor · Ledyard, CT · Member since 2019 · 5 posts · 4 votes
7y
Thank you for the insight Frank. DTI will be done soon enough. I'll continue to work on the wife. She'll come around once she sees it up and running. You mentioned Foxwoods, are you on the Preston, Stonington or Ledyard side?