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.
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!
Nice job. It reminds me of people who have thousands of dollars sitting in a bank account even though inflation is gradually eating that money away.
I'm mostly afraid that I'll mess something up. I'm the epitome of "analysis paralysis". Now that I'm back in the states I've found a great realtor that's pushing me to really put everything into practice instead of just reading about it. First step done! Now researching lending options for a first time buyer. It's definitely not as overwhelming as I made it out to be in my planning phase (:
Clearwater, FL · Member since 2019 · 5 posts · 6 votes
7y
I don't have the 10% to put down that most lenders require, and I don't have reliable contractors yet. I have the experience in valuation, i know my market very well, my wife is a project manager by trade that did home renovations. I could turn and burn properties quickly, but those are my two biggest weaknesses right now.
I'm mostly afraid that I'll mess something up. I'm the epitome of "analysis paralysis". Now that I'm back in the states I've found a great realtor that's pushing me to really put everything into practice instead of just reading about it. First step done! Now researching lending options for a first time buyer. It's definitely not as overwhelming as I made it out to be in my planning phase (:
I don't have the 10% to put down that most lenders require, and I don't have reliable contractors yet. I have the experience in valuation, i know my market very well, my wife is a project manager by trade that did home renovations. I could turn and burn properties quickly, but those are my two biggest weaknesses right now.
Partner up with somebody that has more cash. You bring value and they bring value. To find contractors get referrals at your local REIA.
I'm only commenting on this post because it seems like the cool thing to do!
🤣 You are too funny. It is the cool thing to do😎. Perhaps Brandon will comment on it someday. So you've never had anything that held you back in Real Estate?
@Frank Patalano Imwhat is holding me back right now are assignment contracts. How to structure them.
You are going to have to find a little more help from people in your state. Contracts are more state specific. You may be able to pay a local real estate attorney to provide you with one.
2 get my team together ( financial advisor, real estate agent, accountant, contractor) who else?
3 find the money
4 start searching
Its so hard but i am super pumped! God willing this will work. i just need to take the first step🙂
That is one way to start but I would not worry about a financial advisor or even an accountant yet. A real estate attorney needs to be a higher priority.
if you don't own a house now I would start with a house hack instead.
Learning still, just signed on here. Some fear as this would be a huge career change at my age.
Well I don't know enough about your situation but it does not have to be a career change to start. I worked my regular job for years while I built up assets. Start it as a side Hustle.
@Frank Patalano after considering the question and looking at myself, what I see that has held me back is the fear of “what if” and that is extremely disappointing!
Jacksonville, FL · Member since 2017 · 2 posts · 0 votes
7y
I have serious analysis paralysis. Literally at the brink of purchasing this property in Tx, but after doing the numbers I noticed the taxes are so high there. Also noticed the market is super neutral and afraid that if I ever wanted to cash out it would be extremely difficult. Luckily it already has a paying tenant but the cash flow would only be about 200-300/month. Really just interested in the property due to the high equity currently (buying under market) but overall the mtg is high and scared of potential long-term vacancies down the road with potential recession looming...mtg expenses too high for that. See what I mean about the paralysis lol.
Good question...I live in Quincy,MA where the real estate is hot and the prices have gotten high. Everything is bought all cash!! Anyways, I am debating in buying a single family and renting out my townhouse since is ideal commute location. Or getting a duplex or triplex and staying where I am. It has been dream of mine to have the single family but I would like to have some other income besides my full time job.
Holding my dream of the single family or go with the logistics ;)
Rental Property Investor · Germantown, MD · Member since 2019 · 2 posts · 1 vote
7y
@Frank Patalano
The uncertainty...
I keep listening to the webinars, learning various ways to invest in real estate, to produce cash flow and grow equity, but one major thing that’s holding me back is the uncertainty.
What if I get “screwed by the contractors”, “what if I don’t find tenants for too long and have to incur losses which won’t be possible to recuperate”, “what if the tenants don’t pay and trash the house”, “what other hidden icebergs that I don’t know about will surface once I start investing”?
Furthermore, do I start with a property that needs heavy fixing (but comes at a lower price) or do I try to buy the property with tenant contracts in place so I have some breathing room after close and start to get experience managing established tenants before I have to look for new ones?
Lastly, start with a partner (if so, how do I find them and vet them), or go solo?