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.
Hey Frank, I guess what’s holding me back is 3 things, Me, Myself and I. I’m currently living in New York City trying to get my first deal, and the prices of the homes here are a bit expensive. It’s quite intimidating, or at least I lead myself to believe that it is.
I see on average homes that cost anywhere from 400,000 & up. I tell myself that cash buyers aren’t looking to pay that much to invest in homes. It’s really all just a mind game for me, that’s what’s keeping me back!
Find a couple of cash buyers. Show them some examples. Ask them what they are looking for and what they will pay.
I’m very ready and eager to start with house flipping! So what’s holding me back?
Tried to find tax delinquent files on my towns website with no success... any in depth ideas in this?
Constantly looking through Zillow, trulia, etc. but foreclosures pop up late or gone before I call an agent. How far away is too far away to buy?
Have SOME money, but would like to be able to take out a loan. Looks like 203k is a bit of a pain and very strict on rules. Any other ideas about loans or do I just need to find the right place for the 203k?
Current life - sales engineer with 100% lack of passion in the industry. Been dreaming of real estate for years and just started getting some books and googling everything a few months ago. I own a townhouse I want to rent out in a very desirable neighborhood in a low crime town with lots of air bnb potential and a college 3 miles away! Idea: Airbnb June thru Dec. Rent during Spring semester to students.
Move in with my friend who inherited a very large home and getting some cash in the deal... and we want to flip homes together to get some quick dollars at first. Then .. another avenue.. haven’t decided what because flipping a home is a big enough goal!
Again, dreams ... because having some difficulty on where to find these homes first and FAST!! Fear isn't stopping me as much as knowledge of how to do this. My real estate license is in the plans as well. Gotta get that MLS! Is it normal to pay a real estate agent x amount to do searches on MLS for me until then?
Side thought: Anyone ever buy a 3+ bedroom home and split it into a duplex? Seems easy enough if the place is layed out right.
That’s my brain!! Enjoy and thanks for the responses in advance :)
@Frank Patalano for me it's mostly uncertainty. And it's uncertainty in a couple of ways. I've been in construction for the last 12 years and i just graduated college with a bachelor's degree in facility management. But I always knew that real estate investing is the way to go. So right now I am at a point in my life where i am in the middle of a career change from the job site to the office. But I am uncertain to which one I should try to focus on. When I get home from work I look at jobs in the field of my degree but then I end up looking at more properties and trying to educate myself more on REI. So I don't know right now which direction I want to go. Also I am uncertain if I should concentrate on cash flow or appreciation. I live in NY and I have family who want to invest in real estate with me me. So right now I don't know if I should concentrate on investing out of state for cash flow or buy and hold in NY and have cash flow and have appreciation. What do you think I should try to do??
At this point in the market cycle focus on CashFlow. If the market turns down, the Cashflow of the building will hold better than the price of the buidling.
@Frank Patalano money for now. I’ve spent the last two years playing with the stock market wasting money. Now I’m having a baby so I had to let that go. Currently saving money to invest in my first rental home or house hack.
Go for a house hack. I feel that it the best opportunity out there right now.
Fear, like most new investors. Fear of getting myself into a situation that I’m not prepared to handle. As I educate myself more and analyze more properties I notice I start to slowly chip away at some of it. I think I’ve found something worth pursuing, I just have to do it.
You need to be strong with time, experience, OR money. If you have one of those you can succeed. Find partners to fill in for what you are lacking.
I grew up doing construction and residential electrical with my father, and been in the trade business my whole life so I suppose that can be the 'experience' you mentioned? Going to a learning event tomorrow with a seasoned RE agent and broker. Considering getting an inspector or appraisal license
Yes. Use that as your strength. Find a partner with money and one with time.
So, for me there was a lot holding me back with my first property. Timing, wife not on board (so I got a divorce...lol), a bit of fear, other investment tools, etc. Now that I have three doors, I have become way more aware of the "buying right" idea. And I have a new hurdle that is holding me back: How to really buy right? This is leading me down a number of rabbit holes. And, is frustrating.
Divorce? Sounds aggressive. 🤣
You have experience now. You have a better idea about what buying right means. Join your local REIA. Talk to like minded people.
I’m very ready and eager to start with house flipping! So what’s holding me back?
Tried to find tax delinquent files on my towns website with no success... any in depth ideas in this?
Constantly looking through Zillow, trulia, etc. but foreclosures pop up late or gone before I call an agent. How far away is too far away to buy?
Have SOME money, but would like to be able to take out a loan. Looks like 203k is a bit of a pain and very strict on rules. Any other ideas about loans or do I just need to find the right place for the 203k?
Current life - sales engineer with 100% lack of passion in the industry. Been dreaming of real estate for years and just started getting some books and googling everything a few months ago. I own a townhouse I want to rent out in a very desirable neighborhood in a low crime town with lots of air bnb potential and a college 3 miles away! Idea: Airbnb June thru Dec. Rent during Spring semester to students.
Move in with my friend who inherited a very large home and getting some cash in the deal... and we want to flip homes together to get some quick dollars at first. Then .. another avenue.. haven’t decided what because flipping a home is a big enough goal!
Again, dreams ... because having some difficulty on where to find these homes first and FAST!! Fear isn't stopping me as much as knowledge of how to do this. My real estate license is in the plans as well. Gotta get that MLS! Is it normal to pay a real estate agent x amount to do searches on MLS for me until then?
Side thought: Anyone ever buy a 3+ bedroom home and split it into a duplex? Seems easy enough if the place is layed out right.
That’s my brain!! Enjoy and thanks for the responses in advance :)
Fear, like most new investors. Fear of getting myself into a situation that I’m not prepared to handle. As I educate myself more and analyze more properties I notice I start to slowly chip away at some of it. I think I’ve found something worth pursuing, I just have to do it.
San Salvador, Toronto ON · Member since 2019 · 19 posts · 5 votes
7y
@Frank Patalano well right now it's having enough for a down payment. I dont make the best wage currently, I've been spending a ton of time looking for a new job so I can save more to put a down payment since I need 20% here in Toronto. Also, I only qualify for a $100,000 mortgage on my own, so I need a cosigner. I went with my parents and they said they would help, but they're too slow on moving on things. We lost so many opportunities since they want to "think about it" even after showing them the analysis from bigger pockets and consistently talking about the deals. I'm looking to get a new job, save for a few more years and execute on my own now.
Individually: I'm pretty sure I won't get lending approved to buy a multi family property to house hack because I have huge student loan debt. I'm hoping to buy a tax foreclosures property and expand using the BRRR method in a couple of years using cash. Partner wise: I dont have experience or skills to leverage with a partner so that they could provide the funding. Any tips? Im just continuing to absorb info like a sponge.
The down payment; I can't live in it, I already own a small acreage; could take out a HELOC but not sure I could afford payments back on that and a mortgage....the 15-20 percent down payment
Crown Point, IN · Member since 2019 · 26 posts · 18 votes
7y
@Frank Patalano I have not bought my first property yet. I have been reading as much as i can for about 3 weeks and have decided to go with the BRRRR strategy.
Now what is holding me back- the idea of rehabbing a house without knowing contractors ahead of time. It will be so hard for me to get an accurate idea of a full rehab costs which would translate into big losses for me. I just worried about getting ripped off by not knowing much about house repairs.
I guess my main fear is not knowing who to work with. The right realtors , contractors, management companies etc.
The only other thing is knowing that I am going to invest in the right market in my area. I am in NWI btw. I know crime rates should be low, but what else do you consider when investing? Do you look at overall percentage of renters in that city?
Thanks for taking the time to read all these and respond. You are beyond awesome!
Real Estate Agent · Bonita Springs, FL · Member since 2016 · 5 posts · 3 votes
7y
@Frank Patalano
Ok. I’m a realtor in a high end market that has come to a holt. I know there will be a huge demand for rentals. I’ve found an area that seems to be booming. Am doing the math or thinking about buying the land and building the duplexes.
What do you need from me to be a financial partner??