So what's holding you back?

3.6K Replies

@Frank Patalano

I have been reading up on wholesaling and private money recently. I am a bit worried on getting something too distressed since I don't know too much about renovations. I was looking for something with minimal work, paint, flooring etc. I can probably get a better deal with the BRRRR strategy, but if I was to go down that route I would want an experienced partner to work with so I can learn from them as well. Starting smaller with less risk will bring less return, but it will allow me to learn with less headaches I think

Originally posted by @Dominic Battaglia :

@Frank Patalano

I have been reading up on wholesaling and private money recently. I am a bit worried on getting something too distressed since I don't know too much about renovations. I was looking for something with minimal work, paint, flooring etc. I can probably get a better deal with the BRRRR strategy, but if I was to go down that route I would want an experienced partner to work with so I can learn from them as well. Starting smaller with less risk will bring less return, but it will allow me to learn with less headaches I think

 That is a great strategy.  Find a partner who has some skills in construction. Even if he isn't doing the work he might have a better idea of what to do.

Originally posted by @Thomas Colvin :

@Frank Patalano

I’ve have only spoke with one hard money lender here in Oklahoma, and he was wanting no less than a 700 credit score.

 Speak to 50 more. I've never had a hard money lender ask for my credit score. Get referrals from your local Real Estate investment Association.

Originally posted by @Victoria Applegate:

No money. I have more time off to learn, but I feel that not having money to put down and an ok but not great credit score will be in my way. 

 What you believe, you will achieve. 

If you find a great deal others will want to partner with you. They will bring the money you will bring the time. 

@Frank Patalano

That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

Originally posted by @Victoria Applegate:

That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

 You can do well in real estate if you have 1 of 3 major strengths. Money, Knowledge, or Time. A 4th one could be Networking skills.

I always find good partners through my local REIA. Everyone brings something to the table. You can be a part owner if you find the deal and work on managing the property.

Originally posted by @Thomas Colvin :

@Frank Patalano

I’ve have only spoke with one hard money lender here in Oklahoma, and he was wanting no less than a 700 credit score.

Hey @Thomas Colvin,  who have you spoken with?  I may be able to refer you to some other lenders in Oklahoma City.

 

Originally posted by @Frank Patalano :
Originally posted by @Victoria Applegate:

That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

 You can do well in real estate if you have 1 of 3 major strengths. Money, Knowledge, or Time. A 4th one could be Networking skills.

I always find good partners through my local REIA. Everyone brings something to the table. You can be a part owner if you find the deal and work on managing the property.

Ok. That all makes sense. I’ll check out REIAs in Atlanta. 

 

I'm sitting on what I feel like is a good amount of money to find a property that works in my favor. But I cant seem to figure out how to make it work with the deals I'm finding. What's frustrating is I know a seasoned investor could take this same amount and probably obtain 2 or 3 properties no problem. Feeling lost and like I will have to wait much longer to find our next property than I want to.

Originally posted by @Preston Humbard :

I'm sitting on what I feel like is a good amount of money to find a property that works in my favor. But I cant seem to figure out how to make it work with the deals I'm finding. What's frustrating is I know a seasoned investor could take this same amount and probably obtain 2 or 3 properties no problem. Feeling lost and like I will have to wait much longer to find our next property than I want to.

 I don't know much about real estate in Puerto Rico but I do know that great deals are found through relationship building and hustle. 

The top 2 things that I would do...

Send out letters to distressed property owners.

Join a local real estate investment club.

@Frank Patalano ..We currently have our first place back state side in MN. I'm only here for a couple years and real estate down here feels like a whole new ball game. We thought about it for a bit and decided maybe for now try and stay in MN where we know and already have contacts. I just recently heard/read about the distressed properties and will have to look into that more. Thanks for the response! I think I'm just having the newbie blues. I'll continue to read and learn and hope that will help me tons!

Originally posted by @Matt Miller :

@Frank Patalano mine would have to be lack of capital. I have the knowledge and great team around me but we just don’t have the money.

Go to your local Real Estate Group .  There are plenty of people with money but little time to search for deals . Sounds like a partnership waiting to happen. 

We've done that a couple times in our own Market .  

@Preston Humbard what strategy do you like? Do you like to play in more exciting markets where appreciation might allow you to cash out after some time or do you like slow steady markets where you cash flow each month, don't appreciate rapidly and hold your value through any downturns in the economy?  

@Alyssa Dyer ...For right now we are leaning more towards something that cash flows, appreciates over time and will make it through any downturns. In the future we are certainly up for other strategies and we continue to research these as well just to learn as much as possible.

Originally posted by @Frank Patalano :
Originally posted by @Austin Mielczarek:

As Ben Franklin said, “by failing to prepare, you are preparing to fail.”

I plan for my first property to be a house hack 3 or 4 unit near downtown in one of the up and coming B class neighborhoods, will live in 1 unit and the other 2 or 3 will pay all costs plus hopefully a small amount of cash flow.

1. Currently own a SFR in the suburbs as my primary residence. Best school district in my area, waiting for April/May to sell and get the largest return.

2. Renovating my current SFR to convert a room into a bedroom, to try to get the largest return.

3. Stacking more cash. Saving 40% of my income so that I will be able to hopefully buy 2 properties next year. Once the house hack is in place, I’ll be able to save 65% of my income + any cash flow, so I can put that to work.

4. I need more practice analyzing and learning neighborhoods. I’ve been driving neighborhoods every weekend.

To make sure my foundation is solid, it will be the best choice to wait 6 months.

 Not sure if you are doing all of these things at once or if you are making a choice. If it is all of them that is quite a list in your first year. 

I love the househack idea but I wouldn't wait until April to list. 

Going with quotes. A bird in hand is better than 2 in the bush.

I felt compelled to let you know that your response inspired me to go for it. Listed my house, accepted an offer in 2 days, and just put an offer on a duplex. Fingers crossed! 

 

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