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 · Los Angeles, CA · Member since 2019 · 22 posts · 9 votes
7y
@Frank Patalano@Frank Patalano
This is a great question and we often neglect to ask ourselves! For me overcoming discouragement and the fear of uncertainty. One month I put up 1000 hand written bandit signs after hours of cutting up signs and writing we buy houses, driving around cities placing them on telephone poles and calls from the city threatening to fine me. I finally got a call from a what seem to be a motivated seller with an aggressive follow up I came to find they had given me a random address which they didnt own. Feeling defeated I naturally stopped doing bandit signs witch was my only marketing strategy at the time. After about a month or so of no action I realized that was basically the worst thing I could have done. I've been self educating ever since then every chance I get using books,podcasts, youtube and now have been trying other marketing strategies that I found get a better response. I have discovered one that the more we apply knowledge as soon as it is acquired the more self confidence it brings and momentum it builds toward your business.
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.
Wow. That is different. Do they own the units individually? If so we call that a condominium development.
If you are the owner, you make the decisions. Such as we own a 9 unit building. We own the building, charge rent, and perform maintenance. The tenants pay their own heat and electric.
Yes. They usually own just the apartment in which they live in. Building itself is owned by this company that is founded just to control the building. Every apartment owner has to pay also usually between 100-300 euros/month for maintenance.
In Helsinki this means that first you pay around 200k euros for one bed one bath apartment (yes really), then you still have to pay that maintenance fee each month. And that doesn't include those big rehabs such as plumbing.
Miami, FL · Member since 2014 · 19 posts · 19 votes
7y
@Frank Patalano first time logging in in a while...and this is the first screen that pops up. Tho it's an older post I will answer. What is holding me back is crippling social anxiety that only seems to be getting worse. I know I can do it but every instance of exposing myself to someone I don't know is like climbing 10 flights of stairs.
I agree with both statements, but like finding a loving relationship, finding a trustworthy partner is no easy feat. Especially with individuals such as myself that are burdened with student loan debt.
I agree. Each partnership is like another marriage.
This is a great question and we often neglect to ask ourselves! For me overcoming discouragement and the fear of uncertainty. One month I put up 1000 hand written bandit signs after hours of cutting up signs and writing we buy houses, driving around cities placing them on telephone poles and calls from the city threatening to fine me. I finally got a call from a what seem to be a motivated seller with an aggressive follow up I came to find they had given me a random address which they didnt own. Feeling defeated I naturally stopped doing bandit signs witch was my only marketing strategy at the time. After about a month or so of no action I realized that was basically the worst thing I could have done. I've been self educating ever since then every chance I get using books,podcasts, youtube and now have been trying other marketing strategies that I found get a better response. I have discovered one that the more we apply knowledge as soon as it is acquired the more self confidence it brings and momentum it builds toward your business.
Nice job not giving up. You are in a tough market. Keep hustling.
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.
Wow. That is different. Do they own the units individually? If so we call that a condominium development.
If you are the owner, you make the decisions. Such as we own a 9 unit building. We own the building, charge rent, and perform maintenance. The tenants pay their own heat and electric.
Yes. They usually own just the apartment in which they live in. Building itself is owned by this company that is founded just to control the building. Every apartment owner has to pay also usually between 100-300 euros/month for maintenance.
In Helsinki this means that first you pay around 200k euros for one bed one bath apartment (yes really), then you still have to pay that maintenance fee each month. And that doesn't include those big rehabs such as plumbing.
Yeah we call those condos. And that price is pretty standard for my area. In some parts of the US condos are $50K, other parts $1M for a condo.
Meet with an attorney who focuses on real estate. Find out if true multifamilies are even legal. You might build a 12 unit that costs 1.2M and then rent them out.
@Frank Patalano first time logging in in a while...and this is the first screen that pops up. Tho it's an older post I will answer. What is holding me back is crippling social anxiety that only seems to be getting worse. I know I can do it but every instance of exposing myself to someone I don't know is like climbing 10 flights of stairs.
Any older post? Lol. I've answered over 200 questions on this post this week. It's like a part time job.
Real estate is not just all about face to face interaction. My suggestion is to find a partner who can be the face of the organization. This will only work well if you are great at number crunching or have a decent amount of cash.
Besides that, with today's technology, you don't need to interact as much. I own property that I've never been to, don't know the tenants, and I just get small consistent transfers into my account.
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.
Wow. That is different. Do they own the units individually? If so we call that a condominium development.
If you are the owner, you make the decisions. Such as we own a 9 unit building. We own the building, charge rent, and perform maintenance. The tenants pay their own heat and electric.
Yes. They usually own just the apartment in which they live in. Building itself is owned by this company that is founded just to control the building. Every apartment owner has to pay also usually between 100-300 euros/month for maintenance.
In Helsinki this means that first you pay around 200k euros for one bed one bath apartment (yes really), then you still have to pay that maintenance fee each month. And that doesn't include those big rehabs such as plumbing.
Yeah we call those condos. And that price is pretty standard for my area. In some parts of the US condos are $50K, other parts $1M for a condo.
Meet with an attorney who focuses on real estate. Find out if true multifamilies are even legal. You might build a 12 unit that costs 1.2M and then rent them out.
I'm currently working for construction company as a site engineer. We are making 90 unit and our costs are around 10M, so your estimation might be right for smaller multi family.
Enfield, CT · Member since 2019 · 11 posts · 2 votes
7y
@Frank Patalano it's usually excuses. I haven't gotten my first deal yet either. I'm hungry but when I start to think of why I haven't gotten one yet, it always seems like an excuse. Mentors help a lot. I think a mentor brings a sense of security for most people. Makes a new investor feel like they're not alone when a question arises. I'm speaking for myself of course, not sure about why others wait.
@Frank Patalano for me I would say I’m not the most financially fit person at the moment and my credit is shot. I have a fear of digging myself into a deeper hole.
Rental Property Investor · Phoenix United State Of America · Member since 2019 · 36 posts · 6 votes
7y
@Frank Patalano living in the Phoenix Arizona area was hoping to meet some private lenders on BP so hopefully soon I will be able to attend some event here and connect with some already investor.
New Britain, CT · Member since 2017 · 6 posts · 0 votes
7y
The thing I feel that is holding me back is that I'm not sure if I could house hack and brrr my first investment. Meaning could I buy a multi family house with intentions of living in it, fixing it up, renting it out, and then refinancing it? So I could then repeat the process on next property. Or should I not live in it, rent a place of my own. While I brrr out my investment property to then brrr the next one? That's my mental block. Also I'm a first time investor from CT. I'm unsure of what would be my best strategy. Any advice would help... Thanks!
I'm happy to say, as of today, nothing is holding me back! My wife and I just closed on our a new house for us and are turning the townhome we had been living in into a rental; just signed the lease today for our first tenants.
Fear of making mistakes and losing money would obviously be the biggest fear, but I try to also think about the risk of NOT doing something, not just the risk of DOING something. The risk of not doing something means that I do the "normal" things that our friends are doing, and most of them are broke. I would prefer to take a risk, albeit a calculated one, and try to get a reward, and an experience, that some others wont.
Fingers crossed this first one works out. Hopefully many more to come!
@Frank Patalano it's usually excuses. I haven't gotten my first deal yet either. I'm hungry but when I start to think of why I haven't gotten one yet, it always seems like an excuse. Mentors help a lot. I think a mentor brings a sense of security for most people. Makes a new investor feel like they're not alone when a question arises. I'm speaking for myself of course, not sure about why others wait.
We like mentoring. They help but are not required.
The market is hot but people are still finding deals every week.
Set goals to look at a number of houses every week. Make an offer on a couple a week.
@Frank Patalano for me I would say I’m not the most financially fit person at the moment and my credit is shot. I have a fear of digging myself into a deeper hole.
If you have the hustle, consider wholesaling. Low cost of Entry but expect to be turned down a lot. That's okay though. You will learn as your growing.
You could also consider partnering with someone. Their money and your time.
@Frank Patalano living in the Phoenix Arizona area was hoping to meet some private lenders on BP so hopefully soon I will be able to attend some event here and connect with some already investor.
Go to your local Real Estate Investment Group. Every group meeting that I know will have a couple private lenders. That is the main way in which they find new clients.
The thing I feel that is holding me back is that I'm not sure if I could house hack and brrr my first investment. Meaning could I buy a multi family house with intentions of living in it, fixing it up, renting it out, and then refinancing it? So I could then repeat the process on next property. Or should I not live in it, rent a place of my own. While I brrr out my investment property to then brrr the next one? That's my mental block. Also I'm a first time investor from CT. I'm unsure of what would be my best strategy. Any advice would help... Thanks!
On the first one I would definitely consider house hacking. Live in it for a year. You will have a lower mortgage with a much lower down payment. After the first year, you can do it again.