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.
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.
It is really hard to find a mentor in your local market. You are their competition.
2 quick options.
#1 Keep networking and join a local REIA. Some people are more willing to share information than others.
#2 Pay a mentor from a different market to train you.
@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
Miami is a tough market.
You do realize that a savings account in a bank is basically losing money through inflation/devaluation.
People don't care how old you are.
Keep networking and find a partner who has done one deal. One deal is proof that it can be done and throws the inexperience idea out the window.
I lost money on my first deal. $20,000. Oh and the market was crashing too. And my own personal house dropped almost 50% in value. My personal house still has not recovered to our top locally
Good thing that I didn't give up. It took a while but I quit my full time job 12 years later to manage my own real estate portfolio.
@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.
You are in a tough market.
Why do you need private money? You should have some money saved up to do this. If not, you should have a partner with some money but no time. Sharing a deal is better than no deal at all.
If you can only find a needle in a haystack, keep looking for that needle. Someone is picking up that deal of a decade every week in your market. You only need one to change your life.
Birmingham, AL · Member since 2019 · 4 posts · 1 vote
7y
@Frank Patalano Honestly just seeing which is the best direction to head towards in pursuing my first rental property. More than willing to take chances and go for it, just want to be smart about it
@Frank Patalano Honestly just seeing which is the best direction to head towards in pursuing my first rental property. More than willing to take chances and go for it, just want to be smart about it
When you say what direction, what are the choices?
Birmingham, AL · Member since 2019 · 4 posts · 1 vote
7y
@Frank Patalano Right now I want to pull cash out of my home to have enough for closing cost/ a few updates to my neighbor house. She recently moved out and will take 70k in a move in ready house and it apprise for 100k; rent in that house in this area runs at about $900 month.
@Frank Patalano Right now I want to pull cash out of my home to have enough for closing cost/ a few updates to my neighbor house. She recently moved out and will take 70k in a move in ready house and it apprise for 100k; rent in that house in this area runs at about $900 month.
Sounds like an amazing deal. You have to realize that you're getting quite the opportunity compared to many other markets. Most areas of the country do not have workable 1% rule Deals. Go for it. I have friends investing in Huntsville. But I don't know most Alabama markets.
Birmingham, AL · Member since 2019 · 4 posts · 1 vote
7y
@Frank Patalano Down here in the right area there is money to be made. At first investing was just a thought. But the more I read and listen to the podcast, the more I’m starting realize the deals that are laying around.With this one being right across the street, I think I’m going to get my feet wet and make this one my first and go from there. Thanks for taking the time out to respond
Detroit, MI · Member since 2018 · 1 post · 0 votes
7y
@Frank Patalano For me, I don't know where to begin. I don't have too much money saved, so it's hard picking a strategy. Should I take out a loan? Or maybe I should looking into wholesaling to gain capital and then begin the investing process? I think I just need guidance.
@Frank Patalano Down here in the right area there is money to be made. At first investing was just a thought. But the more I read and listen to the podcast, the more I’m starting realize the deals that are laying around.With this one being right across the street, I think I’m going to get my feet wet and make this one my first and go from there. Thanks for taking the time out to respond
Amherst, OH · Member since 2017 · 43 posts · 9 votes
7y
No longer being held back by my own mind!
Made an offer yesterday, here are the details
ARV: 170,000
Asking Price: 119,000
Offer Price 90,000
Estimated Rehab: 30,000
This is for a primary residence, I will be doing a 5% down conventional rehab loan where the lender will give me the funds to complete the rehab and roll it into my mortgage payment and allow me to do the work!
Knowing it’s a long shot the offer is accepted, it still feels empowering to make an offer again after a few years. I should hear back today about the status of my offer!
Rental Property Investor · Ottawa, Ontario · Member since 2019 · 1 post · 0 votes
7y
@Frank Patalano I am a new graduate and recently started my career in health care. For the next year or so, I want to educate myself on real estate investing.
Contractor · Roanoke, VA · Member since 2018 · 3 posts · 2 votes
7y
@Frank Patalano
Solid advice. I’m relatively new to real estate investing (2 years in and 8 houses down). To add to that I’ll say don’t get caught carrying too many and always try to have an exit strategy.
One is money. I'm trying to follow Dave Ramsey and invest only with cash and all my cash is tied up in a flip waiting for the buyer to get her house sold. I'm working on fixing the final details of my home to sell it. And I am waiting to get the first installment from a business I sold in December. I probably cant get a conventional loan since I haven't had a paycheck since last December.
The other is that I'm taking a job on the Hawaiian island of Oahu for a 2 year project and RE seems very expensive there. Several investors have counselled me against buying in HI. And I prefer to invest close to where I'm living.
I am listening to podcasts and I have a stack of books to read as soon as i finish getting my home on the market so I'm not stopped, just temporarily frustrated.
Houston TX (houston, tx) · Member since 2019 · 7 posts · 1 vote
7y
@Frank Patalano honestly I have little to no help. I’m reading books, listening to what other read online, but I can’t get a single person to mentor me here in Houston.
Homeowner · Altamonte Springs, FL · Member since 2018 · 29 posts · 14 votes
7y
I'm currently in the planning and learning stage. For me to feel comfortable and know how I'm doing in any thing from hobbies to work I need to know a good bit about how it functions. There's so much to know in REI but I've put about a year towards learning and I'm only getting more in to the research process.
My current plan is to buy my primary residence in Summer 2020. Looking for a 4/2+ house hack. Live for free ans start looking for the BRRRR next. In the meantime my GF and I are saving $2k+/month according to our budget and learning a lot of different ways to be successful. Mondays we sit down and plan out our meals for the week, say what we expect to achieve this week. One day a week we devote to studying for an evening. The market isn't where I've seen it before so I'm just using this time to be more prepared. Can't start from scratch when the market is good and expect to know it all, doing my base building stage of the pyramid to FI
Homeowner · Altamonte Springs, FL · Member since 2018 · 29 posts · 14 votes
7y
@Joel Florian I like Dave Ramsey for how he can help people in a hole get themselves out and make sure they don't go back to bad habits. However, I just don't think he's speaking to real estate investors. There's good debt, and bad debt. Paying everything in cash will only make sure you have to work for decades before you retire. But you know your situation better than I, and maybe it's the best approach for you. I wish you the best.
@Frank Patalano the unknown , the process can seem a bit deterring when you have never walked down that road before , lack of understanding all the details of the deal those are a few to say the least
The initial move is the toughest but once it is achieved I think all experienced individuals in BP would agree it's a great ride. Be respectful to the business you're looking to break into. Take the time to read, network, and ask questions. The key element that I personally found to work well is to work with someone who has successfully invested already. This sheds years of unnecessary mistakes and issues you would otherwise encounter on your own.
Investor · Crystal Lake, IL · Member since 2019 · 8 posts · 5 votes
7y
@Frank Patalano
Started a week ago with the whole thing. Educating myself while trying to apply some of the knowledge gained. Using BP tools to practice with current offers on the market.
Trying to connect to as many sources as possible, to learn as much as i can.
Honestly, good mentorship. Not long ago in my area i went to a local meet up (not a rei), small local thing, there was plenty of people there but none really willing to talk to you about advice. I know books make it seem so easy to get started but as a new investor, i’m terrified of making a mistake that could put me out of the game for several years.
@Frank Patalano For me, I don't know where to begin. I don't have too much money saved, so it's hard picking a strategy. Should I take out a loan? Or maybe I should looking into wholesaling to gain capital and then begin the investing process? I think I just need guidance.
Wholesaling is an okay way to start if you don't have a lot of money. One of the biggest problems is that you need to be able to negotiate with people a little bit. If you don't own a home I think the house hacking is a better first strategy.