So what's holding you back?

Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes

When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.

So I'll ask here. What is holding you back?

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Jacob Gelinas

Providence, RI · Member since 2018 · 29 posts · 409 votes

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.

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Jessica Quintero
Flipper/Rehabber · Sacramento, CA · Member since 2018 · 3 posts · 0 votes
7y
@Frank Patalano what’s holding me back? The fear of not succeeding. I know failure must occur in order to learn. With that being said I want to pass the fear & just jump to it. I just want to rip the band-aid off already. Also, not enough money. Because I am a new & young investor there isn’t a lot of people who believe in my passion. I have to make it & find my own sources to fund my investments.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Michael Silver:

@Frank Patalano
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.
Ya be more conservative. I would never analyze a property as a per bedroom rental. Just like I wouldn't price one as an Airbnb. Local laws and regulations change all of the time.
I'm confused by your first sentence. Technically you want to have some benefits while you are living there as well. (Besides lower down payment, lower interest rate, and lower insurance premium) I have had friends who have bought house hacks and lived there for free. I know it would be very hard to do that in today's market but you should be able to pay yourself a discounted rent while you are living there or it is probably not a good deal.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Matthew Church:

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.
You don't know anyone doing what locally? Investing or hard money?
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Aaron A Bitto
Rental Property Investor · Sturgeon Bay, WI. · Member since 2019 · 19 posts · 2 votes
7y
@Frank Patalano
Thank you Frank... appreciate you advice as well as all of the time, consideration and effort you have put into replying to all of these Posts... Absolutely Awesome!!
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Trevor Jacobs:

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.
If your price range is $40-50K then you need to crowdfund or invest in a REIT. That means that you have $12-15K to invest which is honestly not enough in most markets. I understand the out of state fear factor. Pick a Property manager first. Research online, see if they have any certifications, etc. the property manager will get you everyone else when you need them. Don't ask for them up front because their connections are not given away freely if you are just fishing for people. If you work with the PM they will be able to hook you up.
Stop swinging for homers Babe Ruth. Getting a few decent singles is fine.
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Andrew Truong
Atlanta, GA · Member since 2019 · 5 posts · 2 votes
7y
The main things that are holding me back are trying to pay off my student debt (will be done in April), not having the money or credit score to purchase a rental property yet and not having enough knowledge to actually start.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Micah Ng:

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.
Hi Micah,
What are you going to school for? I am not an expert in Canadian Real Estate but here are a few tips.
Owner financing is a possibility. Unusual but possible.
Keep learning but don't let that hold you back.
You can be out there meeting people in the field right now, going to open houses, joining a local REIA.
Everybody's different but I think that your goal might be too small as well.
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Micah Ng
New to Real Estate · Toronto, Canada · Member since 2019 · 22 posts · 5 votes
7y
Originally posted by @Frank Patalano:

Originally posted by @Micah Ng:
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.
Hi Micah,
What are you going to school for? I am not an expert in Canadian Real Estate but here are a few tips.
Owner financing is a possibility. Unusual but possible.
Keep learning but don't let that hold you back.
You can be out there meeting people in the field right now, going to open houses, joining a local REIA.
Everybody's different but I think that your goal might be too small as well.
Hey Frank,
I'm studying Finance at UofT at the moment. I'm definitely planning on meeting people in the field as well as joining meetups near me. I've also been listening to the BP podcast when I can.
As for my goals, I probably should've worded it better. My current plan is to invest in Windsor Ontario, and to own 5 multifamily properties before 2027.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Aulbourn Knowles:

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.
Keep Educating. I like the Georgia market better myself. You should probably take a flight there sometime soon. Look at some neighborhoods. Meet up with an agent or two. Schedule it around a local investors group meeting. Good luck.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Vivian Ji:

@Frank Patalano
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.
I haven't looked into Houston lately. That's sad. Houston has always been a good market. When you are analyzing the properties what source are you using?
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Chris Youssi:

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 agree with you 100%. "The day I lose my fear..." Newbies think that fear goes away. They are wrong.
"The hardest part IS finding good deals."
I will also add that most people have the dream/allure of being a real estate investor but few understand/appreciate the amount of work that it takes.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Gerardo Lewis:

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.
Gerardo definitely open to all, thanks for posting. #1 Join your local REIA. Network and learn but don't ask for a mentor. Keep going to meetings. over time you will learn more and more by listening. If you have time to help others with their real estate do it. Working for free short term builds your education. There are plenty of places online that discuss the BRRRR step by step. You may have to partner because you don't have money.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Ivan Terrero:

The space between my ears and getting my wife and sons on board
Fill that space with knowledge.
You may not be able to get your wife on board. Some family members are too cynical or worry about the what ifs.
i suggest that you set some investing goals with her. You can put so much towards real estate as and investment fund and she can save using stocks.
If that takes a long time you may have to partner to get that first one.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Craig Risser:

@Frank Patalano
Simply raising the capital for a down payment.
Yes. I agree that it can be a tough one depending on your financial situation. I had to sacrifice for years to buy my first couple. You may have to partner on the first one to share a downpayment.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Andre Pinheiro:

@Frank Patalano deciding the market....
Well, we know that it is not going to be Orange County, $$$. If you are considering out of state investing. Skip the top 10 cities in the country. Too much money is there right now. Pick three secondary cities that are only a couple hours flight time. So you shouldn't be looking at Georgia, Florida, etc. In those 3 markets review the job growth, etc. Pick one and contact 3 bigger real estate agents that work with the type of investing you plan on doing. For example, if plan on investing in strip plazas don't pick 3 of the biggest single family agents. Eventually take a flight out there meet with a few people an get an idea of the overall general market..
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Noah Zelko:

@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.
Its great to hear that you took action. Keep educated and networking.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Jessica Quintero:

@Frank Patalano what’s holding me back? The fear of not succeeding. I know failure must occur in order to learn. With that being said I want to pass the fear & just jump to it. I just want to rip the band-aid off already. Also, not enough money. Because I am a new & young investor there isn’t a lot of people who believe in my passion. I have to make it & find my own sources to fund my investments.
You have to hit a few singles before expecting that home run. Find a deal. If it truly is a deal you will have people willing to partner with you to make money.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Aaron A Bitto:

@Frank Patalano
Thank you Frank... appreciate you advice as well as all of the time, consideration and effort you have put into replying to all of these Posts... Absolutely Awesome!!
You are so welcome. I have been investing for 10+ years. Finally becoming a CashFlow King. I have a background in Education and love giving back. I'm actually flying back from a Business Trip to Cairo. Been typing responses for 3 hours straight in cramped quarters and spotty internet.
1 Reply
Andre Pinheiro
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
@Frank Patalano thank you Frank
1 Reply
Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Andrew Truong:

The main things that are holding me back are trying to pay off my student debt (will be done in April), not having the money or credit score to purchase a rental property yet and not having enough knowledge to actually start.
The most successful investors have 3 things. Time, Money, Experience/knowledge. If you don't have the knowledge or the money hopefully you have the time. Dedicate as much time as you can to help others. Work for free if you have to. That is what I am doing by responding to these posts. Seriously go to your local real estate meetings and meet up with people. Don;t ask for anything. Just listen. Keep going every month. After 3 months, take 3 of the people that you feel change help you on your real estate journey and ask them if there is anything that you can do to help them and their business. You can do this.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Micah Ng:

Originally posted by @Frank Patalano:
Originally posted by @Micah Ng:

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.
Hi Micah,
What are you going to school for? I am not an expert in Canadian Real Estate but here are a few tips.
Owner financing is a possibility. Unusual but possible.
Keep learning but don't let that hold you back.
You can be out there meeting people in the field right now, going to open houses, joining a local REIA.
Everybody's different but I think that your goal might be too small as well.
Hey Frank,
I'm studying Finance at UofT at the moment. I'm definitely planning on meeting people in the field as well as joining meetups near me. I've also been listening to the BP podcast when I can.
As for my goals, I probably should've worded it better. My current plan is to invest in Windsor Ontario, and to own 5 multifamily properties before 2027.
There you go. Good luck.
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Makoto Hawkins
Philadelphia, PA · Member since 2019 · 13 posts · 2 votes
7y
@Frank Patalano As a soon-to-be first time investor, I can say that my immediate reserves lay in not knowing how to evaluate a 'good deal' and not knowing my market well enough.
I'm a bargain hunter but I'm also a cautious investor. I figure it's worth my efforts to be thorough when buying property. Without the competence to quickly evaluate a property, I worry that I might act upon a bad deal. As for now, I am still weeding through the forums and resources to assure I fully grasp the concept of a real estate deal before I make a move.
In knowing my market, I have recently relocated from Sacramento to Philadelphia. 6 months in, I am still getting a feel for the region. My hope is to purchase a live-in multi-family unit as my first property. I have spoken with locals, taken note of nearby universities, public transit routes, and other signs of a rentable locale. My next steps are to track down a few nearby meetups and connect with local property managers for feedback.
To answer your question in brief, I feel that there is an overwhelming amount of information out there that requires sifting and qualifying before one can confidently feel ready to make a move.
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Victoria Tanika Scott
Flipper/Rehabber · Claremore, OK · Member since 2019 · 20 posts · 5 votes
7y
Okay thank you!
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Joseph Westerman
Investor · Lubbock, TX · Member since 2017 · 3 posts · 0 votes
7y
So I've secured a cash out refinance and they're offering me 30k in cash. I can't manage to get a bank to offer me a mortgage even with a credit score of 750+ and a huge down payment. I'm really stumped. Ideas?
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
7y
@Frank Patalano great post. Seems like there are only three answers in general, fear, money, education. Everyone can eliminate fear by getting educated. Building the Capital can be the hard part. Especially when you get busy working, spending and living.
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