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.
Had two deals about to close and I lost my job. Lenders pulled financing.
That's what's holding me back
That sucks. If the deals are that good can you pass them on to someone else and get a referral fee? I've picked up properties this way with cash and gave the person some money as well.
@Frank Patalano i would say little money to invest and analysis paralysis are whats holding me back. I have such a strong desire to start investing in real estate, but with no money to put down on anything amd the task of being a new mother makes me worried to start such a venture.
I am one who likes to be held accountable for the things i strive to do, so my next strep would be looking for a mentor that possibly specializes in creative investiving strategies. I beleive a good mentor will help give me the push i need towards the next step.
A mentor is a great idea. Still I had to sacrifice years before I bought my first rental. You really have to have a small emergency fund in place as well. No money down and creative deals are fine but they are so much better if you have a little extra money set aside as well.
My husband and I bought our first multi family in May and a major downside is we ran out of capital quickly; we didn’t have a substantial amount of reserves. Another downside is that our partners couldn’t and still can’t come up with funds to keep the house running. So, we’ve been funding the projects and day to day once the rental income is spent. Currently, we’re trying to buy our second property and our problem is funding. We have the drive and knowledge to land our next deal, but we need some funding in order to do so.
My husband and I bought our first multi family in May and a major downside is we ran out of capital quickly; we didn’t have a substantial amount of reserves. Another downside is that our partners couldn’t and still can’t come up with funds to keep the house running. So, we’ve been funding the projects and day to day once the rental income is spent. Currently, we’re trying to buy our second property and our problem is funding. We have the drive and knowledge to land our next deal, but we need some funding in order to do so.
Hold on. You guys need to slow down a little bit.First thing that you have to do is stabilize your first property. You have to pay yourself back on property #1 and get any profit on the property to pay yourself back your partners' share.
I am glad that you built a lot of knowledge on deal #1 but perhaps you should have an emergency fund before working on #2.
@Frank Palano : My wife and her grandson was awarded money. Which they invested in purchasing a home via owner financing. They put $89,000 down this with the realtor fees too. With a five year balloon payment in the hopes we would obtain our own financing. With life throwing curve balls and not being educated real estate. Unfortunately due to illness we are not not able to obtain financing. We cannot sell the house without the seller permission, which they will not give. What's left on the mortgage is $124,000 and the comps in the area for five bedroom three full baths is running around $250,000. I am trying to find a creative strategy to give her the money, fix the house up and sell. I don't want to lose all the equity that has built up. I hope that clears the confusion.
Twenty years ago we lost our first home when my wife suffered an heart attack. I want to educate and dedicate my self to this industry to pull myself and family out of the brink of disaster.
I know I could by learning all I can about the industry.
I was the opposite where I jumped in without actually understanding everything involved in a deal (specifically with fix and flips) and had I known all the information that is readily available now - I probably wouldn't have. I think everyone loves the idea of investing and the potential to maximize their ROI. But with the incredible amounts of information, I've seen many investors "beat the dead horse" by constantly analyzing all the little things that can go wrong trying not to miss a single thing.
With this being said, the fear of being "tied" to all of these potential problems - definitely fosters hesitation and in many cases - no action. I will say this though - I jumped in. I got my a$$ kicked and learned A LOT. I had people around me helping to keep my head above water at some points. You unlock your resourcefulness (95% sure that's a word).
Franky, It's a double edged sword now. There is so much information that you can really educate yourself on many systems and prepare yourself for so many "unforeseen" scenarios. Or you can end up scaring the **** out of yourself and never feel truly comfortable making the jump. But in the end - It is never as easy as you envision, and never as bad as what's keeping you from taking the plunge. So do it! and grow! A lot of us here on this platform are willing to help any way we can.
I bought a property in 2011 and lost a bunch of money due to my contractor.
I recently invested with a couple of friends, one of which is the contractor. Two months and it’s back on the market awaiting it to sell to get a percentage of the profits.
I really want to make this work, but am terrified of losing more money. I, like everyone else can’t afford to lose again.
I can’t decide if I need to invest here in New Jersey or where I’m moving in Florida when I retire in 5-6 years.
Hi there...I'm wanting to learn the best way to start investing in property and am wondering how to find the "off market" opportunities you're referencing. I have EVERYTHING to learn. I did a deal with my niece who is doing flipping and made 10% on my loan to her, which was great, but, I only loaned out 10,000. I would rather get a bigger return on a property that I can flip, without having to rehab. I'm not sure if I'm being realistic or what the best strategy would be. Fear of knowing where to begin and how to start, is my biggest issue. Any advice would be appreciated. Thanks!
@Frank Patalano , I'd say finding financing is always a challenge for me as a new investing along with finding great deals. I'm learning and working on both!
@Frank Patalano I have been researching and reading bigger pockets books for awhile now. Sharpen the axe for 4 hours type thing. The biggest thing holding me back now is financing and the steps to get it. I've read all about the different types of financing, but haven't seen anything on when you should get it. Should I go out and find a deal and then find financing or secure financing and then hunt down a deal? Is it okay to back out of a deal if you can't find the right financing? Or is that a major faux pas in REI? sorry if this has already been covered, I have not read all the responses yet.
@Frank Palano : My wife and her grandson was awarded money. Which they invested in purchasing a home via owner financing. They put $89,000 down this with the realtor fees too. With a five year balloon payment in the hopes we would obtain our own financing. With life throwing curve balls and not being educated real estate. Unfortunately due to illness we are not not able to obtain financing. We cannot sell the house without the seller permission, which they will not give. What's left on the mortgage is $124,000 and the comps in the area for five bedroom three full baths is running around $250,000. I am trying to find a creative strategy to give her the money, fix the house up and sell. I don't want to lose all the equity that has built up. I hope that clears the confusion.
Twenty years ago we lost our first home when my wife suffered an heart attack. I want to educate and dedicate my self to this industry to pull myself and family out of the brink of disaster.
I know I could by learning all I can about the industry.
I'm a little confused on why you can't sell the house. If you are selling it then you are paying the seller off. Your not trying to keep the seller financing in place are you? If a new buyer is buying you would pay off any mortgages at the closing.
Maybe I'm confused. Is it worth $250K now? If not what is it worth right now? What was the original purchase price?
I was the opposite where I jumped in without actually understanding everything involved in a deal (specifically with fix and flips) and had I known all the information that is readily available now - I probably wouldn't have. I think everyone loves the idea of investing and the potential to maximize their ROI. But with the incredible amounts of information, I've seen many investors "beat the dead horse" by constantly analyzing all the little things that can go wrong trying not to miss a single thing.
With this being said, the fear of being "tied" to all of these potential problems - definitely fosters hesitation and in many cases - no action. I will say this though - I jumped in. I got my a$$ kicked and learned A LOT. I had people around me helping to keep my head above water at some points. You unlock your resourcefulness (95% sure that's a word).
Franky, It's a double edged sword now. There is so much information that you can really educate yourself on many systems and prepare yourself for so many "unforeseen" scenarios. Or you can end up scaring the **** out of yourself and never feel truly comfortable making the jump. But in the end - It is never as easy as you envision, and never as bad as what's keeping you from taking the plunge. So do it! and grow! A lot of us here on this platform are willing to help any way we can.
Great response. You do need some education but action is more important. People will spend so much time worrying about worst case scenarios. I mean be conservative but we learn the best through experience. Resourcefulness is a good word for it. Many people don't have the hustler mindset because we live in a land of plenty. #firstworldproblems I'm at a business conference in Egypt right now. I am seeing that drive/hustle/resourcefulness in almost everyone, everyday around here. It's an education in itself.
I bought a property in 2011 and lost a bunch of money due to my contractor.
I recently invested with a couple of friends, one of which is the contractor. Two months and it’s back on the market awaiting it to sell to get a percentage of the profits.
I really want to make this work, but am terrified of losing more money. I, like everyone else can’t afford to lose again.
I can’t decide if I need to invest here in New Jersey or where I’m moving in Florida when I retire in 5-6 years.
I've lost money before so I know what you mean.
If I were you I would definitely be investing in Florida. Markets are overpriced everywhere but I think the Florida will hold up better in a downturn. Buy for the Cashflow. Good luck.
Hi there...I'm wanting to learn the best way to start investing in property and am wondering how to find the "off market" opportunities you're referencing. I have EVERYTHING to learn. I did a deal with my niece who is doing flipping and made 10% on my loan to her, which was great, but, I only loaned out 10,000. I would rather get a bigger return on a property that I can flip, without having to rehab. I'm not sure if I'm being realistic or what the best strategy would be. Fear of knowing where to begin and how to start, is my biggest issue. Any advice would be appreciated. Thanks!
Tina Brown
Hi Tina,
Having a flip without a rehab is like a holy grail. Especially in this market. Your best shot for an off market deal as a newbie is to go to your local investment meeting and meet some wholesalers. You will probably be able to buy a decent deal from them.
Besides that keep educating. You have so much to learn right now. You could get off market deals by sending out a letter campaign but as of this second you are not ready to negotiate a deal. Learn about wholesaling. The best deals are the ones that you make yourself.
@Frank Patalano , I'd say finding financing is always a challenge for me as a new investing along with finding great deals. I'm learning and working on both!
I find that finding deals in this market is much harder than financing the deal. If it is a great deal there is so much money out there that you will find the money. If it is a great deal.
People are always throwing money at me but I can only find so many good deals at a time.
That is very encouraging. I really appreciate it. This might be being the scope of this discussion so forgive me. I'm ready to take action but feel I need more guidance and know how from someone more experienced.
I know one of my next important steps is to go to a couple banks to speak with lenders about options. I believe that information will help structure my acquisition strategies. Hopefully there's more than one strategy that makes sense in terms of my goals. Any thoughts or suggestions?
@Frank Patalano I have been researching and reading bigger pockets books for awhile now. Sharpen the axe for 4 hours type thing. The biggest thing holding me back now is financing and the steps to get it. I've read all about the different types of financing, but haven't seen anything on when you should get it. Should I go out and find a deal and then find financing or secure financing and then hunt down a deal? Is it okay to back out of a deal if you can't find the right financing? Or is that a major faux pas in REI? sorry if this has already been covered, I have not read all the responses yet.
Thanks for the help,
Pete
Va beach va
No problem on not reading all of the responses. This post has blow up over the last week.
I would start to have some knowledge and preliminary commitments on the path that you would take for financing. Have some hard money lender that you know and what types of terms and conditions that they are looking for.
After that, find a deal that meets the criteria of at least 2 hard money lenders.
It sucks to back out of a deal due to financing but it does happen once in a while. Make it the exception not the rule.
Also discuss the concept of partnering with a few investors that are just a little bigger than you. You don't need to work with them it can be a backup in case you need help.
That is very encouraging. I really appreciate it. This might be being the scope of this discussion so forgive me. I'm ready to take action but feel I need more guidance and know how from someone more experienced.
I know one of my next important steps is to go to a couple banks to speak with lenders about options. I believe that information will help structure my acquisition strategies. Hopefully there's more than one strategy that makes sense in terms of my goals. Any thoughts or suggestions?
My local real estate group has a few local mortgage guys right in it. They always sit with new investors in the hopes of generating future business. Talk to a mortgage broker over a lender at one bank. That one person will have many different options and banks at his disposal. Sometimes they will also be connected to their own hard money lenders.
@Frank Patalano , I'd say finding financing is always a challenge for me as a new investing along with finding great deals. I'm learning and working on both!
I find that finding deals in this market is much harder than financing the deal. If it is a great deal there is so much money out there that you will find the money. If it is a great deal.
People are always throwing money at me but I can only find so many good deals at a time.
For sure Frank, I'm working hard looking for those deals and money. Thanks for the reply!