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.
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.
Thank you so much for the advice. I wouldn't have thought about that. If you have some specific morgage guys for me please let me know. I really appreciate the input
Nothing is holding me back except getting results. I have chosen to focus on wholesaling to break into the business and build up capital for future real estate strategies. I have been seeking results diligently for the past 6 months. Finding distressed properties are easy, finding the owners and their contact information is not difficult either.
I can't seem to convince any of them to sell. I have been to meetings that seemed like the seller was motivated only for them to not want to sell. I have followed up on calls of potential sellers and every time is a new reason why now it isn't the right time. 6 months of this and still no sales.
Wholesaling is all I can afford to do since I don't have capital of my own but I do have time. Since I have not gotten results, should I change my target area? What should I do differently?
@Frank Patalano: You are not confused. I just did a poor job at explaining my situation. The house is not worth that now. I have a colleague that came visit from out of town informed me that the ARV would be around $260,000 to $280,000 if we fixed the house up. However, we would have to fix up the house up. My question will be this. If we are not able to secure a loan, should I try and take a hard money loan which will pay the seller off and fix the house up and sell it?
We bought the house for $189.900. I am almost certain my wife and grandson paid $80,000 cash up front.
I asked my wife to find the mortgage papers for me so that I can give exact figures. I am very close to the actual numbers. However, I do know there is a way out. No, my intentions are pure with the seller. The wife recently became a widow last year and wants out. We know she wants us to obtain a loan. We really did not want to move at all because we love it here. Writing this has really made me think about the numbers more so.
I am living in California and want to invest in rental properties for generating passive income. But the market rates are so high, it not a good market to invest in rental properties. That's why I am thinking of investing in outside California and given very little prior experience I have(i have a house), I don't know how to move forward.
I’m struggling with lack of time I work 2 jobs and I have a wife and a 6 month old daughter and I working on boosting my credit and learning I’ve made a plan to wholesale and no trying to put the pieces together
Paying down debt and building up cash reserves for acquisition costs and the rehab in order to invest smart.
I dont want to be leveraged to the hilt and have to cause my SO to scrape by and stress month in and month out.
What about you?
I understand. Instead of worrying about the money, worry about finding an awesome deal. When you do, you will find a way with the money. You might have to sacrifice but you will find a way.
@Frank Patalano I have been working with various turnkey providers in the cities I am interested in (Birmingham, Tuscaloosa, Orlando, Cleveland)
Your problem is probably buying a complete turnkey property from a turnkey provider. Right now you are heavily competing with owner occupieds. On way to invest for a higher yield is to be hard money lending. Besides that the best deals are the off market ones that you find yourself.
What’s holding me back? Fear of making a bad deal.
Valid fear but no matter what the market it doing you may always feel that way. Run your numbers and buy for Cashflow. Even if the house goes down in value a little bit. The Cashflow is more important.
Buying a rental property and finding that I underestimated the rehab by a large amount.
Perhaps you can find an accountability partner. Someone who can review the numbers when you are ready. Other ideas... Partner with a current rehabber or contractor. Find an agent who has rehabbed a few properties him/her self before.
Estimating Rehabs is easier with experience. At the same point prices are usually going up so its not forever knowledge.
Nothing is holding me back except getting results. I have chosen to focus on wholesaling to break into the business and build up capital for future real estate strategies. I have been seeking results diligently for the past 6 months. Finding distressed properties are easy, finding the owners and their contact information is not difficult either.
I can't seem to convince any of them to sell. I have been to meetings that seemed like the seller was motivated only for them to not want to sell. I have followed up on calls of potential sellers and every time is a new reason why now it isn't the right time. 6 months of this and still no sales.
Wholesaling is all I can afford to do since I don't have capital of my own but I do have time. Since I have not gotten results, should I change my target area? What should I do differently?
Many people like to start wholesaling because of the low barriers to entry. I have always found it to be a hard first step. Sine you have time it is probably a good first step for you. I don't have enough info about what your doing to suggest other things. How are you educating yourself? Are you at RE networking events? The people that you are working with are not ready. Keep in contact but move on to either a new list or a new market. Read up on negotiation.
I am just beginning to look into out of state multi-unit investment properties, but I have a feeling of uncertainty even though it states there is 100% occupancy. Meaning, I can't tell if it's legitimate or not because it seems too good to be true if that makes sense.
Closing on my first property with a good friend. It has taken me over 2 years to pull the trigger on something. I have a tendency to over analyze so then talking myself out of something. Even though we about about to close I am still doing it haha. Luckily this one we went for it. Still very nervous though, but that comes with it.
We are in the middle of deciding whether or not to buy a new primary residence. If we stay, I want to buy our first rental nearby. If we buy a new primary, I want to rent our current property. I'm having a hard time convincing my spouse that we can do both while we decide if/when to move. His fear of losing money on a new rental is holding him back. My fear of complicating our financial position while trying to buy a new primary is holding me back.
Work 37-40hrs a week at mundane job for 11.50 hrly (taxes take most of my check)
Roughly (based on hours worked) $650-700 bi-weekly & about $1200 a month
-$300 for rent
-$240 for car note
-$128 car insurance
-$300 food, gas, other expenses
I don't want to with for someone else for the rest of my life. In 23 with a lot of passion, I have a lot of drive I've just always had the highest time knowing where to start. But once I get done great advice I run with and can't be stopped. I do have a tendency of going for what I want and getting it once I have a clear agenda. Anything in my situation that can give me a little nudge that I can run with? Or maybe some should advice from someone wiser than I?
@Frank Patalano confuses, nervous, and afraid. But the more I grow the more I realize that these feelings are natural and also mean that I’m embarking on something that will drastically change my life and the way I view things. I’m a divorcee, completely started over career and all. I am now a full time teacher and full time realtor. I take care of my daughter and want her eventually leave a legacy for her. This is what drives me. That and the fact that I just want to prove something to myself. I’m close to purchasing my first home by myself and it will be an investment property. Comps come in at $176K purchasing for $115K — I’m assuming it will take about $25K to update (strictly cosmetics) — I haven’t decided yet rather or not I’ll flip and sell or hold on to the property and rent. But I plan to stay there for at least a year.
@Frank Patalano thank you! I appreciate your feedback. I have started educating myself with YouTube. Yes, I was going to the RE seminars but they all seemed to just give you enough information to bait you into getting in debt to learn more. The last one I attended was a Rich Dad Poor Dad seminar. I actually scrapped up money to go to a 3 day weekend conference only to yet again get only enough information that led to the baiting of asking for more money.
I took the information I learned and went from there but decided that I wouldn't continue taking the "bait." I was previously a realtor in another state so decided to pursue my license again in my present state. In doing so, I began to network and met a seasoned REI who has a mentor program.
I signed a contract agreeing to give up 50% of any profits in exchange for mentorship. I though it was an outstanding deal only to find that my "mentor" isn't much help.
Therefore, I am alone again figuring out the business as I go. YouTube has done wonders so that is definitely a great resource.
I will take your advice and choose a different market and see how it goes. Thanks so much for your help!
@Frank Patalano If I'm being honest, I would have to say fear. I don't have much capital, but I worked hard for the little I have. So my fear is that I would make a mistake, blow the little capital I have, and have to start over.
The counter to that is the fact that I haven't left the starting line in my investing journey. So worst case if I had to start over, I would be right here, where I am holding myself right now. Guess there really should be nothing stopping me from getting started.
@Frank Patalano Frank what's holding me back from purchasing a small multi family is no money off my own to put down and terrible credit.....also I've reached out to the two bigger pockets groups in my area but can't make the meetings to meet folks in person. Considering becoming a Pro just so I can create a meeting during my availability....