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.
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.
Join your local REIA. Most will have at least one investor friendly attorney. I've have many people tell me that something can't be done but Lo and behold I have met a local attorney already doing it.
How about finding money partners and doing a deal with them and splitting the profit?
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
Some banks offer personal loans at lower rates.
Discover offers a consolidation loan. They offered it to my Mom at 13.99% Not the best but it helped from 20% credit cards.
If your credit score is decent you could consider convenience checks with 0% interest for a year and a small transfer fee.
Help others in Real Estate. Even if you make a finder's fee it will bring you closer to success.
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.
There are plenty of podcasts on Househacking. My partner Jimmy did a great one. He actually owed $70K when he started his first househack. The profit from the purchase allowed him to payoff his debts faster.
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...?
Absolutely time to drive for dollars. In most markets, MLS is a waste of time at this point.
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.
@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!
Perhaps you can partner on a deal or at least get a referral fee.
I linked up a hard money lender with a new client recently and got a decent $500+ check just for linking 2 people together. It wasn't expected or necessary but was appreciated.
@Frank Patalano thank you. I will keep that in mind. I had talked to a loan officer last month and she said I would be able to get loan after next month. So, in the meantime I need to keep looking and analyze the property. I’m a little scared since this will be my first real estate purchase.
But sometimes you don’t know where to start or how much you need to start. You hear of so many different investment strategies, and as a newbie don’t no what investment strategy is right for you. Having the necessary funds to invest is a major problem for some of us. We hear education is key but we don’t know if we are reading or watching the right info and that will help us to be as successful as some are here. Maybe you need a mentor but don’t know what you can offer to bring to the table if your a newbie. I would love to start it’s just where do I start, those are the questions I ask my.
But sometimes you don’t know where to start or how much you need to start. You hear of so many different investment strategies, and as a newbie don’t no what investment strategy is right for you. Having the necessary funds to invest is a major problem for some of us. We hear education is key but we don’t know if we are reading or watching the right info and that will help us to be as successful as some are here. Maybe you need a mentor but don’t know what you can offer to bring to the table if your a newbie. I would love to start it’s just where do I start, those are the questions I ask my.
There are many different strategies in real estate investing. Different strategies cater to different strengths. There are so many different strategies and people come up with new twists all of the time.
I believe that if you are strong in one of 3 things then you can be successful in real estate. That does not mean that you will be.
1. Money Or 2. Knowledge Or 3. Time
If you have a strength in one of those then you can find partners to fill the other 2.
If you have a lot of money you should be fix and flipping or hard money lending.
Knowledge? helps with rehabbing, new construction, etc.
A lot of time? helps with wholesaling, bird dogging, etc.
If you don't own a house yet but have decent credit? Go with House hacking.
As you can see there are many options.
Keep reading until you find an investment strategy that you want to focus on.
@Frank Patalano I’m a 21 yo student at the University of Houston. I’ve been interested in real estate for the last 3 or 4 years in real estate and have been learning aimlessly through podcasts, books, seminars, and clubs, but I’m still not sure how to start. I want to start more than anything, but I’m not sure if my first steps and then what happens after. If anyone has been in my position or is able to offer some words of wisdom it would be greatly appreciated!
@Frank Patalano I’m a 21 yo student at the University of Houston. I’ve been interested in real estate for the last 3 or 4 years in real estate and have been learning aimlessly through podcasts, books, seminars, and clubs, but I’m still not sure how to start. I want to start more than anything, but I’m not sure if my first steps and then what happens after. If anyone has been in my position or is able to offer some words of wisdom it would be greatly appreciated!
Well the Houston market is red hot.
I consider one of your best options to be a house hack. Buy a multi and rent out the other units. You can also rent out bedrooms in your unit.
You can have a low down payment. Long term low interest mortgage. People helping you pay.
I think the biggest hold back is my family: they are highly against real estate investing, even though I'm trying my best to explain how it works.
Don't get me wrong, they are usually highly supportive when it comes to studying, jobs or investing into funds or stocks. I think it is Finnish culture that is affecting their behavior. Real Estate investing isn't highly preferred here and these investors are seen as greedy people...
Another thing that is holding me back is actually the culture. There aren't really small multifamily buildings in Finland: we either have single family, duplex or apartment buildings (20+ doors). We don't even have an actual word for multifamily in Finnish.
I think the biggest hold back is my family: they are highly against real estate investing, even though I'm trying my best to explain how it works.
Don't get me wrong, they are usually highly supportive when it comes to studying, jobs or investing into funds or stocks. I think it is Finnish culture that is affecting their behavior. Real Estate investing isn't highly preferred here and these investors are seen as greedy people...
Another thing that is holding me back is actually the culture. There aren't really small multifamily buildings in Finland: we either have single family, duplex or apartment buildings (20+ doors). We don't even have an actual word for multifamily in Finnish.
My family does not even know that I own rentals. They were negative about it early on.
Perhaps you can become a rich man by building smaller multifamilies.
There is nothing wrong with setting your sights on buying a bigger multi. In the United States we can pool resources with a number of investor and buy it together. You would have the control but they would be owners. We call it syndications. It is like setting up a company where you are running it.
How expensive is a single family in your area? What is the monthly rent that you can charge for it?
Perhaps you can become a rich man by building smaller multifamilies.
There is nothing wrong with setting your sights on buying a bigger multi. In the United States we can pool resources with a number of investor and buy it together. You would have the control but they would be owners. We call it syndications. It is like setting up a company where you are running it.
How expensive is a single family in your area? What is the monthly rent that you can charge for it?
Around the area where I live, single family houses are usually 200k+ euros. Weirdest thing around here is that people don't usually rent single family. Those that are rented are asked for around 1500 euros/month.
I guess it's because of the old "dream" that everyone want's to own their single family house.
Around here people tend to invest in apartments, but I don't like the idea that other apartment owners or their tenants can lower the buildings value, due to poor maintenance or bad decisions. Here every apartment building has their own administration that is supposed to make decisions regarding to building and its maintenance. And the administration must be formed from people living in that building.
We have had quite a few news articles about that apartment buildings are in bad shape because especially elder people do not want to make these rehabs (piping, windows, etc.). And these administrations are full of elders since younger people are too lazy or afraid of responsibility.