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.
I am brand new to real estate investment been reading and investing in a great deal of books, podcasts n education. Been on the BP Community multiple times daily reading the posts on various topics and I realize how very little I know about what I am very passionate about. I believe what’s holding me back is getting out of neutral!! I am in a furious mode of knowledge gathering that I am kinda stuck in “Where do I start mode”. I feel I need to define my strategy a little better. Although I am learning and getting some great ideas, advice and honesty from some of my posts in the BP Community I still feel that I am not doing enough. I am just starting to establish core members of my team( CPA, Attorney, Real Estate Agent... ). I am just starting to create my brand with a Business Name & Business Cards. It just seems like I am overthinking things in some areas and not doing enough in others... Anyway Thank you very much for the Discussion Frank.
For me it's finding a househack deal that will cashflow decently after I move out. I am currently looking at single family homes (small multifamily is out of my price range) just outside of Denver. A few of the properties I've seen might work if I rented them out by the room, but I am concerned that they will then have to be rented by the room for as long as I own them.
Time and fear. I have loaned hard money, but that seems so much easier. I don’t know anyone locally doing it and I guess I am not willing to jump in with both feet yet.
I have the motivation to want to invest in rental properties, however there are a few factors holding me back.
1) I am in a market where housing costs are rising significantly and are out of both my budget and risk-taking desire, which more or less forces me to invest either far away in-state or out of state.
2) I am unaware of where to try and start looking for rental properties, or where a great market would be, as my price range is around 40-50k.
3) I am fearful of trusting the wrong people, which is necessary if i want to purchase out of state (property manager, contractors, agents, etc).
4) Lastly, I think just normal analysis paralysis and fear of failing, especially on the first property. I feel if i can knock the first one out of the park my confidence will rise to accept more and more risk.
The two things holding me back would be the fact that I'm a first-year college student who's new to Canada, so I can't qualify for a mortgage. The second thing would be that I only found about REI a month ago and so I'm not knowledgeable enough yet. I plan on getting a summer job and learning more about REI. My goal is to own 5 units within 5 years of graduating college.
The things that are holding me back firstly is capital!! I'm interested in investing in rental properties in the US typically Georgia or Seattle. Also, I can't qualify for a loan or mortgage because I have no credit history, but that too will change, I'm working on building credit in the near future. I don't want to get a loan in my home country for when I go to school I don't want to have any financial strings back home.
I would like to purchase my first rental property before I start school (looking to start in 2020 August) so at the least, I could have some income coming in and a possible place to stay.
The duplex —four plex is way too expensive now in Houston. It’s our first time want to go for multi units instead of sfr but there is no way to get a positive cash flow there.
IMHO critical to this thread is the simple fact ALL MARKETS ARE LOCAL and drill down even further all pockets / neighborhoods are local in all markets. I look back at how we built our companies and recall some of these same posts / concerns / anxieties . OK to give yourself a pass on taking your time being fearful if you will - personally still fearful just not scared of every deal we purchase. The day I lose my fear is the day my arrogance takes over and I start making mistakes . I have had my share and don't care to make anymore. Love the turtle approach and build momentum . Oven way better than microwave everything tastes better. Real estate investing no different. Majority of the time only thing holding us back is between our ears. A fellow developer once told me " Finding the deal is the hard part good deals will always find money." Loads of money available and similar opportunities on various ways to find money here on BP. Educate yourself and apply what you have learned. Love this business and the ample opportunities for a better lifestyle if provides. Happy investing.
I don't know if this is an open discussion for random people but I think what's holding me back is being a little scared. Right now I'm actively looking for a multi family to use the BRRRR strategy on, I have a list from list source and will be sending out letters soon but I don't exactly know where to start and if i ever have a question I don't have a mentor to run my questions by. Also if I've never done the BRRRR so I don't know how to exactly go about doing it. Lastly money for a down payment.
@Mark Bommarito Hi Mark, one area I've been looking into is Bentonville, AR. Wal-Mart is headquartered there and has recently mandated that all of its vendors also have a headquarters there. There are homes in the price point you're looking for and the rents are solid.
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.
Mike. You have options and are better off than many people on this post.
#1 Keep saving up to invest
#2 Keep educating yourself every free second.
#3 Don't have experts? Join a local real estate group. I know that you worry about time but you have to commit a few hours every week or this real estate dream will forever stay a dream.
I don't manage any of my own properties. I work with 5 different property management companies to take care of all of my assets. You are right you might lose money. Investing involves risk that is why you possibly get a return for that risk. But the more that you educate yourself the lower your risk. But it never eliminates risk.
If you are willing to do a HELOC you could buy a multi by yourself or with a partner. You might not be ready yet but set goals and make a plan.
@Frank Patalano the fear of making a mistake on this (seems like it) high market. Also struggling to find a deal that strongly makes sense.
That's cool. I respect that. There are not as many deals out there right now and stay with your numbers. Buy for CashFlow not for appreciation. Set goals to look at so many properties per week. Network, Network, Network.
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.
Saving money is fine. Just decide how much you need to save and set up a series of goals to get you there by a certain date. I had to sacrifice to make it happen on many early deals.
Well there are plenty of books on that. Each state does have some specific rules. You are going to find out the most info by networking at your local real estate group. Don't just ask for help. Help them with something first.
just suffered a huge loss, investing in notes. Have little to work with. Looking for Owner financed apartments.
You invested in Real Estate Mortgage Notes and lost a lot of money. Gee that's odd. Were they not backed by a good asset? Denied insurance claim? I've never had a problem with my lending.
Sounds like you have some experience either way. Keep building that experience. It is tough but not impossible to get owner financing especially in the 5-8 unit space. Good luck.
@Frank Patalano My hesitation was using all the money I saved up to buy a fixer upper to rent out. I can say I’m very glad I decided to take that risk.
@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.
So set up a plan with goals on exactly what you are going to do to attain that knowledge. BiggerPockets is a great resource but it is not everything. You need to be out there networking and looking at actual properties. Just remember learning is not just on here but out there too.
@Frank Patalano having not so good tenants even after doing my screening
Tell us more. How are you screening. In my experience I don't get good applicants if I price the unit too high or too low. I had a friend who was a great landlord but he misread the neighborhood and didn't get the quality of tenant that he had hoped.
I am brand new to real estate investment been reading and investing in a great deal of books, podcasts n education. Been on the BP Community multiple times daily reading the posts on various topics and I realize how very little I know about what I am very passionate about. I believe what’s holding me back is getting out of neutral!! I am in a furious mode of knowledge gathering that I am kinda stuck in “Where do I start mode”. I feel I need to define my strategy a little better. Although I am learning and getting some great ideas, advice and honesty from some of my posts in the BP Community I still feel that I am not doing enough. I am just starting to establish core members of my team( CPA, Attorney, Real Estate Agent... ). I am just starting to create my brand with a Business Name & Business Cards. It just seems like I am overthinking things in some areas and not doing enough in others... Anyway Thank you very much for the Discussion Frank.
Network at you local real estate meeting. There you will meet people who are doing various strategies. Do not ask for their help. You will learn from them if you keep going to the meetings. After a month or 2 ask if there is a way that you can help them in their business. You gain a lot of experience even if you work for free on the first deal or 2.