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.
Fear that I wont find the right property and that i’m not fully prepared and need to read more. Trying to get out of that mentality because truth is, I will never be fully prepared.
Also, currently living in another state and want to invest in Florida to househack. However, I’m not sure when I will be moving to Florida, but want to get my first property this year(which means I need to find another alternative to achieve this goal)
So I started the process of finding an agent to help me house hunt
@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.
If you live on the property than you usually can't get hard money financing. If you love it keep it. Get creative. See if you have a family member or friend who will give you a mortgage do it. Get rid of the old seller.
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.
So start networking online with some agents in different markets. I have personally been following some commercial brokers on Instagram. I've been networking with some people in the Ohio market that way. Have them send you a few prospective deals. Pick a market and take a trip out there to meet a few people including some property managers. Good Luck.
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
I was in the same situation a years ago. Wholesaling is pretty if you don't have time. If you don't own a house you should house hack. If you do then continue building your skills through educating and networking.
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.
So have them send you the actual numbers. Specifically ask when each lease currently expires. I would be unhappy if they are sending you ProForma numbers but it happens all of the time. I actually don't want full occupancy. In a softer market I would base it on current rents so if a unit is vacant then the current rent is zero. This lowers my price. In reality I would probably just include a rent amount on the vacant unit that is equal to the current lowest price in the building.
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.
Most people are nervous even after buying a bunch of buildings. You have put in the time. Just buy 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.
I don't know your financial situation but if you are buying a new primary then the down payment and the interest rate will be substantially lower.
Don't let buying a personal residence hold you back from buying a rental. If your numbers are good you will make cashflow, long term even if home values dropped tomorrow. There will always be some excuse not to buy an investment. Just do it.
And how can I go about that? We are in Miami where prices are insane.
If you have money you can lend on other peoples deals. If you don't have that kind of money you could invest in Crowdfunding sites. If you have time you could do an off marker, yellow letter campaign.
Join real estate investment clubs in your area. Network, network, network. Ask if there is a way that you can help them with their business.
If you are committed and are only working 40 hours a week then you have plenty of time to help others and look at properties. How much reading are you doing?
@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.
Sounds awesome. Great job. Sounds like a great deal. Keep hustling the double job. Obviously it is starting to pay off.
@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!
Youtube is great. When I said real estate meetings I am not talking about Rich Dad or Flip seminars. I am referring to a local real estate investment association or club. The goal of the group that you choose should be education and networking. Not just selling seminars but educating for free. Try https://nationalreia.org/find-a-reia/ Let me know how it goes.
What’s holding me back is finding investors in buying assignment contracts in the area I live.
Find your local real estate investment group. If you have decent deals you should have people banging on your door. If nothing happens offer to bring a couple the group leaders out to coffee and find out what is wrong with your deals.
We have tons of people begging for someone with great deals in Rhode Island.
@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.
I live in a land of plenty. There many opportunities out there every day. You have to commit to look for them daily. If you really have a dream of becoming a real estate investor then you have to be out there looking, making offers, and hustling. Find a partner with a little experience. Offer your time looking at deals, they can provide a little knowledge. No excuses, if you believe it, you will achieve it. Set goals and make them happen. #makemoneynotexcuses
@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....
What??? You are making excuses. I sacrificed for years to buy my first deal. And then I lost money on it. Did I give up? No. Becoming a Pro on Bigger Pockets won't help you. You need to be out there everywhere on free social media finding out where all of the locals are networking for free. Find your local meetings that are free. There are plenty of investors not on bigger pockets. To have a chance in real estate you need to have one of 3 things. Money, Time, or Knowledge/experience. Sounds like you don't have any available.
Fear that I wont find the right property and that i’m not fully prepared and need to read more. Trying to get out of that mentality because truth is, I will never be fully prepared.
Also, currently living in another state and want to invest in Florida to househack. However, I’m not sure when I will be moving to Florida, but want to get my first property this year(which means I need to find another alternative to achieve this goal)
So I started the process of finding an agent to help me house hunt
Just one agent? Call a whole bunch. Ask for off market deals. Commit to a list of things to do every week. A dream is just a wish your heart makes. Instead, make it happen.
Having never done a real estate deal besides my own house and a couple of vacant lands adjoining it I have some reservations still.
Having no experience I worry that I won't find the proper deal and lose money right away.
Having three young children I worry that my little available time will all be sucked up with real estate investment, and I will be stuck with an obligation and have to choose between my family and my investments.
I don't have experts around me to ask advice on specific opportunities.
I have great credit, no debt (including my house), and a small bit of money I could use, and I understand finances pretty well, but I work a full time job, so time is my tightest resource.
I don't have time to manage properties, but I love the financial side of things as well as finding and making deals. I just don't know how to connect the rest of the dots and not get scammed.
Mine is finding capital for a down payment. I want to put 20% down and don't want to pay PMI if I am under 20%. I just need to educate myself and see the numbers before I commit to a property.
Thank you, Frank, for the encouragement, I just spoke to one of my contractors today about moving forward... as "Wayne Dyer" says in one of his books, "Excuses Begone!" Life is too short.
@Jonathan Miller I know how to get capital but finding great deals is what I am having a problem with. I'd love to talk with you about your deals and see how we could possible work together. DM me if interested.
@Frank Patalano For me the biggest holdback is the lack of knowledge, and the apprehension of possibly losing more money than I started with. Thankfully, there is BiggerPockets to help alleviate some of that anxiety with all the helpful resources available.