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.
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!
Have a great day everyone!
Nice job. I'm proud of you. It doesn't matter if you don't get this property. Your goal is not to by every deal , your goal is to buy a good one.
@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.
Set goals on how much you were going to read every day. If you are renting a place now perhaps you could buy a house hack sooner and be paying yourself as landlord every month.
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.
I don't know the Roanoke area that well but I agree carrying costs can really kill you. I've especially had that problem on new construction.
@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.
Hi Frank, thanks for your comment. I live in Orange County California. The average housing price in my market is at least 500k-600k. Very easy to go up to 700k-1m. Hard money lender usually lends 80-85% of purchase price. If I have to save up 200k to do the deal I probably won’t be able to do any deals in the next 5 or 10 years. I have a partner. She doesn’t have any money either so raising private money is always an issue for us. Also in today’s market, even if we do have 100% funding, we’ll have to give up almost all the profit to lenders. We ended up getting low or none profit so we are not actively looking for fixers right now.
I’m currently considering out of state properties with purchase price around 100k. How is your market.
The legalities. Originally I was looking to wholesale. I just found out that wholesaling is illegal in VA without a realtors license. I definitely believe in trust but verify. So now I am interested in wholetailing while it's still legal in VA. Trying to find legit sources for verifying real estate and tax laws seems daunting. Also, expensive. I have thought about charging finder's fees just to get a foot in the door. Having the right agreement templates and knowing the pitfalls to avoid are definitely barriers for me.
Credit card debt which was a result of life events. I have been making more than minimal payment but the interest rates are hitting me really Hard. Any advice would be appreciated
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.
It's funny, I have always have Dave Ramsey on one shoulder and Robert Kiyosaki on the other.
Go to networking meetings in HI. Then you will talk to people who are actually investing there instead of just listening to people who have counselled against it. If I listened to everyone else I would have never invested into real estate.
Rental Property Investor · Louisville, KY · Member since 2019 · 37 posts · 61 votes
7y
What's holding me back is student loan debt. I've heard from multiple sources that house hacking is the way to go, however I am afraid of not having enough for a down payment, finding the right deal, as well as finding the financing for the deal. I want to make sure that the deal will provide enough cash flow to help pay down the loans quicker.
@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.
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
Rental Property Investor · Louisville, KY · Member since 2019 · 37 posts · 61 votes
7y
What's holding me back is student loan debt. I've heard from multiple sources that house hacking is the way to go, however I am afraid of not having enough for a down payment, finding the right deal, as well as finding the financing for the deal. I want to make sure that the deal will provide enough cash flow to help pay down the loans and will lead to me moving out and purchasing more REI properties.
@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
If you are buying traditionally your agent should be able to help you with everything.
Every real estate deal is different. We see surprises all of the time.
The one constant is that things are always changing.
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.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
@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.
If you only started a week ago then nothing is holding you back yet.
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.
Where are you from?
Most people don't want to teach their competition for free.
Bring value to the relationship. Bring opportunities.
Keep going to the meetings.
You have to continually go to the meetings. Building relationships. Then opportunities will happen.
Rental Property Investor · Aurora, Ontario · Member since 2019 · 6 posts · 1 vote
7y
@Frank Patalano
Finding a qualifying property. Im feeling like MLS is not working for me, and that props in my area are priced higher than equitible for multi-rental props. Maybe time to drive for dollars...?
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.
Then go on the hunt for more.
We are glad to be making an impact.
What state do you live in?
Frank, We are based in Attleboro MA. Looking forward to meeting you at your event on The 16th. I actually sent you a lead Via Instagram a couple weeks ago I that I see is now under agreement I hope you snatched it up! A lot of solid deals in South eastern MA right now believe it or not the MLS has had deals for the first time in a long time lately.
It’s amazing how mindset changes things the deals are there but you need to put in work.
Specialist · Memphis, TN · Member since 2019 · 7 posts · 4 votes
7y
@Frank Patalano I’m in tremendous debt and I’m currently working a $12 an hour moving job. Despite all my learning, podcast, and videos, the building of my money to pay off my debt is going to take a while. I’m trying though!
@Frank Patalano down payment isn’t ready. Looking to purchase a duplex, live on half and rent the other but down payment of 15% isn’t ready.
Anyway around it?
Who told you 15%? I've been told that you can buy a multi with an FHA loan at three and a half percent down. double check with a few lenders if you need to.
@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.
Hi Frank, thanks for your comment. I live in Orange County California. The average housing price in my market is at least 500k-600k. Very easy to go up to 700k-1m. Hard money lender usually lends 80-85% of purchase price. If I have to save up 200k to do the deal I probably won’t be able to do any deals in the next 5 or 10 years. I have a partner. She doesn’t have any money either so raising private money is always an issue for us. Also in today’s market, even if we do have 100% funding, we’ll have to give up almost all the profit to lenders. We ended up getting low or none profit so we are not actively looking for fixers right now.
I’m currently considering out of state properties with purchase price around 100k. How is your market.
we've sold two houses this year for under $200,000 each. We are listing a better one by the end of the year for just under 300,000.
Picked up a real divvy one for under a hundred and we sold it for under a hundred and made a profit.