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 · Tampa, FL · Member since 2019 · 24 posts · 24 votes
7y
@Frank Patalano I’ve recently had 2deals fall through. Honestly, I feel that I’ve kinda lost direction. I have been lending to other investors through my SDIRA. Thinking maybe that’s my niche for now.
@Frank Patalano for me it's money and education. I'm just starting out and only have 20k I can invest. So I'm going to take my time and try to educate myself before I jump in.
Well $20K is a good start. Keep studying. Be ready to partner up to buy in earlier.
Aww man, so much at the moment. The first being fear. Fear that I don’t have enough knowledge of all the steps really. I am actually working on getting both my FL and GA real estate licenses as an extra aid, but my heart is geared towards investing. I want to do my first flip and purchase this year, but there is so much to learn. I am on BP almost everyday, listen to investing/ wholesaling podcast whenever I’m in my car, but I still feel behind. What sometimes discourages me is the price of mentor ship is no where reachable for me. I want to know much more. I want to acquire a level of knowledge that will bring forth confidence, ESPECIALLY when I am talking to buyers and sellers.
Secondly, my financial status. For obvious reasons such as marketing, mentorship opportunities, and balancing life with getting to my end goal. But also because I am afraid of what the last 7 months have done to my credit score.
Thanks for this post. It helped me a great deal this morning.
You don't a real estate license. It's cool but you don't need it. You need to look at 100 units and make offers. Who cares if none get accepted. Think of how much education that will bring you for free.
NETWORK. If you really love real estate go to every single networking event possible. Just go. Meet people. You will find team members. You might even get deals.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
It’s funny in the beginning everyone has the same issue: Money. After a while you realize money is always there for a good deal.
Later on you have my issue: Time. Always an issue. Never enough time. I'm full steam ahead on my flips and rental portfolio. Just need to leave one of my jobs to focus more on it and need an office assistant & a Project mananger soon to really grow.
Also, being more cautious with the higher end properties and more conservative on the underwriting because of the timing of the market.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
Not enough properties coming out for sale in my area and the lack of response from mailers.
Those are tough ones. Glen Falls is a small market. I haven't been there in years. Perhaps you need to expand your area. But also touch base with your local wholesalers if they are picking up everything buy one directly from them.
@Frank Patalano I’m currently a first year college student majoring in applied science for Mechatronics Engineering. I’ve always been an aspiring entrepreneur and have had experiences with starting up small businesses for lawn care and sub contracting for land management as well as flipping a couple houses with my father. I’ve always been interested in flipping houses and real estate investing in general but I only have an idea for the physical labor part of flipping homes. I would eventually like to get started in many areas of real estate and make it my full time job. I’m seeking advice on the steps I should be taking for Investing and buying my own “flipper” (etc.) and taking action NOW. I have read many books on general business and investing but I feel that everything I read doesn’t emphasize the basics I’m looking for for getting started. How do I find specific homes? How do I know what a good deal looks like? How do I learn my market? Who should I talk to? How do I get started? I am trying to take advantage of my young age and taking a step to build my future. Thank you in advance for your feedback it will be greatly appreciated!
It's all about mindset. Join as many real estate groups as you can. There you can learn the market, network, and build knowledge.
You have more experience then most people on here.
@Frank Patalano Just came across this read you've got going - awesome!
I, like you, work with lots of new investors - and good advice is invaluable, but is too often hard to find within the sea of poor "advice" that's available. Your no-nonsense tips for getting started are great. Kudos!
I've got the team. I've got the experience. I need capital to scale and grow my business further. So I'm networking, telling everyone I know and I don't know about my real estate, and just build relationships with people who are looking for opportunities to build and improve a lifestyle they can be proud of!
There you go. It sounds like you are taking action.
@Frank Patalano I have 3 rentals and i am only getting 200 a month profit on them. I have money and I am looking for my next deal. The biggest hold up for me is contractors and finding trust worth workers. I have done my house flips with me doing the labor and I'm now trying to change that
Yeah so you will be able to make more money on the next one from all of the experience on the first few.
Finding valuable contractors are gold. You have to be at Home Depot when they open to find some contractors.
The main thing holding me back is capital. I have found some great deals (one of them giving $1000 ROI in a good area), but I do not have the up front money. What I lack in capital, I make up for in knowledge and handy work. Currently just trying to find a partner who has the upfront money and work out a partnership deal.
If you go to a real estate group with an amazing deal I would be shocked if you don't find a partner. Worst case scenario.... wholesale a couple to build funds.
I have a HELOC of just under $100,000. I am just not sure what to do next. Currently I house hacked a two family that I just finished fixing up. The rent covers about 65% of my mortgage. My wife and I both have very stable and good W2 jobs, but I need out of the rat race. I have no idea what to do next. My options are find a flip around me, buy and hold around me or out of state. Problem is I live just south of Boston and everything is $$$$$. I would like to find a flip, I already have a partner who can GC it, just need to find the deal! But, then I think is a flip in this market climate appropriate? and should I just buy and hold for cash flow? Lol Analysis Paralysis!
You can buy a flip but just be sure your numbers are conservative. If you are south of Boston look in Fall River and New Bedford.
Yeah stay out of Boston. Cap rates are too low. Go to the South Coast REIA. Find the wholesalers.
2 - Should I buy a house for myself first - I live in LA so it would delay buying rental properties for some time
3 - Everyone telling me this is a bad idea
Trust is built by spending time with people. I don't partner after the first meeting. I do it after I have known them for at least a year.
House Hack your first one.
Only listen to people who are already killing it in real estate. Don't believe the naysayers. Especially if they are friends or family. They are trying to protect you. That is why I never ever told my family that I even own property. #truestory
For me personally It is coming up with the money for my first down payment. I haven't even started yet. My fiance and I are grinding, paying rent, wedding payment, bills. We both have good jobs, and are still just breaking even. NJ is tough.
Yes. New Jersey is tough. You really need to house hack that first deal. Then you can generate extra income to grow.
You have to sacrifice something. Right now you are sacrificing your dreams. The choice is yours.
Totally agree! I have been listening to a lot of BP podcasts and viewed a few webinars. Now I have to read the guide for beginners. Thanks for the great advice!
Obviously Bigger Pockets is a great place to be but make sure that you are networking and going to local meetings.
I recently purchased my second home using hard money. This was a nerve wrecking expereince with that balloon loan hanging over my head and having to be at work and trust the contractors to work on the home. I want to do more now, because of the cash flow, but what's holding me back is my ability to find another great deal in metro Atlanta. How to find the deals?
The 2 best ways to find deals are educating and networking. Learn about strategies that no one else is doing or at least become an expert at one and Network the **** out of your area. You should know every wholesaler in your market. Good Luck.
Not enough properties coming out for sale in my area and the lack of response from mailers.
Those are tough ones. Glen Falls is a small market. I haven't been there in years. Perhaps you need to expand your area. But also touch base with your local wholesalers if they are picking up everything buy one directly from them.
It is definitely a small market but the area is so stable. The market here is insanely hot right not. Properties are under contract within 3 days. The property prices and rents work so well. I have expanded to surrounding towns but for now I plan on scaling my portfolio here. I have reached out to a few wholesalers with no great luck.
Firstly, I would say lack of education and experience. It can be frustrating trying to find the balance between too much preparation and being too hasty.
Secondly, financing...trying to get creative when looking for financing can be a little overwhelming.
Lastly, working full time and being in strenuous grad program can make things a little more difficult (still not unachievable, if there’s a will there’s a way).
Education is easy. I am gaining knowledge everyday. Experience is built by going out and doing. Analysis paralysis sucks.
Find something that you think is a deal and you will find the money.
Hey Frank, good question. I asked myself often these days.
I am looking for my first deal at new jersey. One property (4 family house)I find seems good was a short sale. And I was trying to find more information about the house because they only show one family; the others are occupied by tenants and not allowed to see. Two days the broker didn’t find any new information. I was thinking of moving forward but then I got news the property received enough offers that no longer accept new one.
And then I found a few more newly on market, but before I even go to see them. They were under contract.
I was determined to start my first deal as soon as possible, but now I don’t know how it could be done? What I should do when I find something? Send offer immediately? Haha...Still figuring it out. But that’s one major reason slow me down. Thank you.
NJ is tough right now. I have a hard time sending an offer before you see it. See if you can get in touch with some local wholesalers. You want to buy it before it hits the market. It's the best way to buy it.