So what's holding you back?

Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes

When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.

So I'll ask here. What is holding you back?

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Jacob Gelinas

Providence, RI · Member since 2018 · 29 posts · 409 votes

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.

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Sergey Pshenichkin
Germantown, MD · Member since 2017 · 5 posts · 0 votes
6y
@Frank Patalano near-crippling debt.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Bentley McKean:
Originally posted by @Frank Patalano:
Originally posted by @Bentley McKean:
@Frank Patalano I feel like the area In California I live in is too expensive for me to invest into. I also don’t know if I would be comfortable investing out of state for my first property.

If you are going to invest out of state you have a few different options.
The first thing that I would do is pick a partner with some experience (I know that you have experience) Work together to research markets and find the first deal. Share the risk and the reward.

Do you think it is a bad idea to invest out of state for the first deal? I really specialize in Industrial real estate, so I may want to stick more to that instead of multifamily.

I don't know anything about industrial real estate. What about starting in a quieter section of California?
0 Reply
Timothy Douglas
Realtor · Austin, TX · Member since 2018 · 154 posts · 82 votes
6y
I literally have no money and the only way to get money is to partner with somebody. However, being twenty years old, it is hard to partner with somebody because they think I don't know what I'm doing; they're correct for the most part. The last thing is that my time is stretched between Young Life and College and I'm not willing to sacrifice friendships or my degree to dive into Real Estate Full time. Long story short, I don't actually believe I can and it pisses me off...
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Ezequiel Castellanos:
@Frank Patalano $50,000 of student loans unfortunately. I just graduated in May.

$50,000 is honestly not that crazy. When my partner bought his first house hack he owed $70,000 in student loans. If you buy right it allows you to pay off your debt faster.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Timothy Douglas:
I literally have no money and the only way to get money is to partner with somebody. However, being twenty years old, it is hard to partner with somebody because they think I don't know what I'm doing; they're correct for the most part. The last thing is that my time is stretched between Young Life and College and I'm not willing to sacrifice friendships or my degree to dive into Real Estate Full time. Long story short, I don't actually believe I can and it pisses me off...

It's okay to be mad at yourself. It's okay that you want to enjoy life right now. Success involves sacrifice. You have to sacrifice something. It sounds like you are not even willing to sacrifice one day a month to attend a real estate meeting. If you are willing to do that then joining a local reia is a great first start.
1 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Sergey Pshenichkin:
@Frank Patalano near-crippling debt.

What's your income and how much debt are we talking? The beauty of real estate is that everything is not just about dollars. You can find a partner with money. You can wholesale properties. You can buy property no money down. Plenty of options. I'm not saying it's easy but don't use debt an excuse.
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Byron Ashton Allen
Member since 2019 · 1 post · 0 votes
6y
@Frank Patalano
The lack of knowledge about getting started. As in how to get a loan and knowing what a smart start loan is. Or who to go to for advice/help
0 Reply
Steven Apicella
Flipper · Bedford, MA · Member since 2015 · 4 posts · 1 vote
6y
Hi, Frank, I applied for a VA loan it was denied because I have too many bills so my debt to income is too high My credit score is in the 720. but I have $74,000.00 in an offshore cryptocurrency company call crypto NXT website is cryptoNXT.io I want to take all of this money out but before I can withdraw this money I have to pay the taxes just like a stock. It would cost me 15K for taxes so I can withdraw. Do you know any hard money lenders that would lend me 6K in return I would pay them back 10K in a little over one month or I can pay them back in 40 days or less? my phone number is.
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Steven Apicella
Flipper · Bedford, MA · Member since 2015 · 4 posts · 1 vote
6y
Do you know any hard money lenders that would lend me 6K in return I would pay them back 10K in a little over one month or I can pay them back in 40 days or less? my phone number is.
0 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Steven Apicella:
Do you know any hard money lenders that would lend me 6K in return I would pay them back 10K in a little over one month or I can pay them back in 40 days or less? my phone number is.

They don't let you post your number here.
I think that you have a better chance with a family member or a credit card company.
Do you have any collateral?
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Byron Ashton Allen:
@Frank Patalano
The lack of knowledge about getting started. As in how to get a loan and knowing what a smart start loan is. Or who to go to for advice/help

So you aren't being held back. You need to get some knowledge first. Read some books and start networking.
0 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Steven Apicella:
Hi, Frank, I applied for a VA loan it was denied because I have too many bills so my debt to income is too high My credit score is in the 720. but I have $74,000.00 in an offshore cryptocurrency company call crypto NXT website is cryptoNXT.io I want to take all of this money out but before I can withdraw this money I have to pay the taxes just like a stock. It would cost me 15K for taxes so I can withdraw. Do you know any hard money lenders that would lend me 6K in return I would pay them back 10K in a little over one month or I can pay them back in 40 days or less? my phone number is.

Sounds weird. You don't pay the taxes before you get the money. Sounds like a scam. Even if it were true you should be able to pay with sales funds. Like I said in my other response you should borrow the money from a family member.
0 Reply
Jesse Parkins
Member since 2019 · 1 post · 0 votes
6y
@Frank Patalano what’s holding me back is I am a 20 year old boy still in college. I love real estate and have read a lot of books and listened to a lot of podcasts but I have no money for a down payment
0 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Jesse Parkins:
@Frank Patalano what’s holding me back is I am a 20 year old boy still in college. I love real estate and have read a lot of books and listened to a lot of podcasts but I have no money for a down payment

So find a partner with money.
Don't use Age as an excuse. We have friends who are in their 20s and are multimillionaires.
Get hustling. We know a few people who bought their first multi at 18.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Anthony Le Grande:
Getting my a deals done I have properties under contract it seem that if people are looking but nobody is buying for whatever reasons like a bunch of excuse to me but whatever.

I have deals in the following cities

Cleveland, OH (Mixed Use) Asking $ 55,000

Muncie, IN (Full Rehab) Asking $ 8,000

(3 Row Houses) Baltimore, MD (Full Rehab) BEST OFFER

Here are the LOTS ONLY section:

Helendale, CA Asking $ 22,000

(2) Santa Rosa, CA (Fountaingrove ASKING $ 300K & Wikiup ASKING $250K)

Barstow, CA (2 Hours from Las Vegas) asking $ 30,000

Are you wholesaling on this forum post? That's funny.
The best deals should be bought up rather quickly.
Have you offered these at your local REIA?
0 Reply
Allison Meggison
Realtor · Bangor, ME · Member since 2018 · 203 posts · 34 votes
6y
@Frank Patalano
That’s a good question ! If we knew what was
Holding us back, wouldn’t we just change it ?
0 Reply
Andrew Kirchoff
Rental Property Investor · Sanford, NC · Member since 2019 · 2 posts · 0 votes
6y
@Frank Patalano a bad mold problem, structural damage and not being sure of the ARV. On the low end through my research I figure the ARV is 68k, the seller (wife's family) wants 28k for the house and I estimated 15k for repairs as I was going to do most of the remodeling for my first buy. Secured but not yet finalized financing (through family and friends) then found significant structural damage in the crawl space.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Allison Meggison:
@Frank Patalano
That’s a good question ! If we knew what was
Holding us back, wouldn’t we just change it ?

Maybe. Maybe not.
Isn't acknowledging the problem the first step?
0 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Andrew Kirchoff:
@Frank Patalano a bad mold problem, structural damage and not being sure of the ARV. On the low end through my research I figure the ARV is 68k, the seller (wife's family) wants 28k for the house and I estimated 15k for repairs as I was going to do most of the remodeling for my first buy. Secured but not yet finalized financing (through family and friends) then found significant structural damage in the crawl space.

That's might hold you back on the first deal.
One option is to pass on it.
Another option is to offer a lower number but give a percent of profit on the other end.
If you keep finding deals it will be easier to pass on the non-profitable ones.
1 Reply
Timothy Douglas
Realtor · Austin, TX · Member since 2018 · 154 posts · 82 votes
6y
Originally posted by @Frank Patalano:
Originally posted by @Timothy Douglas:
I literally have no money and the only way to get money is to partner with somebody. However, being twenty years old, it is hard to partner with somebody because they think I don't know what I'm doing; they're correct for the most part. The last thing is that my time is stretched between Young Life and College and I'm not willing to sacrifice friendships or my degree to dive into Real Estate Full time. Long story short, I don't actually believe I can and it pisses me off...

It's okay to be mad at yourself. It's okay that you want to enjoy life right now. Success involves sacrifice. You have to sacrifice something. It sounds like you are not even willing to sacrifice one day a month to attend a real estate meeting. If you are willing to do that then joining a local reia is a great first start.

I've actually obtained an LLC and was planning on starting a meetup in my area next semester because none of the current meetups fit with my weekly schedule. I'm totally okay with sacrificing a night, it's mainly that all my nights are full except Thursday, which is the plan now. The other thing that is stopping me is inaccurately assessing repair costs. I'm reading through the book and stuff but I am too scared to mess it up and cost an investor money.

0 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Timothy Douglas:
Originally posted by @Frank Patalano:
Originally posted by @Timothy Douglas:
I literally have no money and the only way to get money is to partner with somebody. However, being twenty years old, it is hard to partner with somebody because they think I don't know what I'm doing; they're correct for the most part. The last thing is that my time is stretched between Young Life and College and I'm not willing to sacrifice friendships or my degree to dive into Real Estate Full time. Long story short, I don't actually believe I can and it pisses me off...

It's okay to be mad at yourself. It's okay that you want to enjoy life right now. Success involves sacrifice. You have to sacrifice something. It sounds like you are not even willing to sacrifice one day a month to attend a real estate meeting. If you are willing to do that then joining a local reia is a great first start.

I've actually obtained an LLC and was planning on starting a meetup in my area next semester because none of the current meetups fit with my weekly schedule. I'm totally okay with sacrificing a night, it's mainly that all my nights are full except Thursday, which is the plan now. The other thing that is stopping me is inaccurately assessing repair costs. I'm reading through the book and stuff but I am too scared to mess it up and cost an investor money.

Nice.
Making your own group is an awesome idea.
The next time that you look at a property, see if you can bring a friend that is super handy to help you improve on your cost estimates.
1 Reply
Richard Gonzales
Investor · Fort Wayne, IN · Member since 2017 · 21 posts · 9 votes
6y
I’m looking for my first multi-family right now to house hack. I think analysis paralysis has been holding me back, and I’m finally working my way past it. I am coming to terms with the fact that I’m never going to find the “perfect” rental property, but that I can make a house into a great rental if the price is right. The risk of a market down turn or the negative impact of discovering a major issue with a property I buy also holds me back
1 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Richard Gonzales:
I’m looking for my first multi-family right now to house hack. I think analysis paralysis has been holding me back, and I’m finally working my way past it. I am coming to terms with the fact that I’m never going to find the “perfect” rental property, but that I can make a house into a great rental if the price is right. The risk of a market down turn or the negative impact of discovering a major issue with a property I buy also holds me back

Yeah I've never found the perfect property. Besides that focus on buying for cash flow. If you're buying a property and it cash flows then it has a better chance of surviving a market downturn.
1 Reply
Steven Apicella
Flipper · Bedford, MA · Member since 2015 · 4 posts · 1 vote
6y
I have no Collateral to speak of but I did find a lender with lending tree we will see how it goes. Thank you for the advice though.
1 Reply
Account Closed
Member since 2018 · 127 posts · 106 votes
6y
I think for me, the biggest problem has been finding capital for the next one. I started renting out my first property (single family home) last December and currently make about $325/mo in cash flow. However, it has been hard to extract the equity I have in my house to use on another property, I finally found a lender who will do an equity line of credit on an investment property and am currently going through that process.
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