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 is what’s holding me back. Fear of if I’m doing this correctly. Am I looking in the area? If I had that one person to be next to me for the first one that would be awesome. I just need to step forward.
@Frank Patalano I’m transitioning out of a 20 year career in IT, and have made unwise decisions in the past 3 years that have caused me to have to completely rebuild my life. I haven’t pulled the trigger yet, because I’d have to use OPM even to get started. I only need a few decent wholesaling deals, and I’d be on my way!
So it sounds like you have a game plan. Learn about wholesaling. Also join your local Real Estate Group and after going for a couple months ask if there's a way you can help somebody out if you have the time.
But I’m in the military and new to real estate so I’m saving up for a down payment while learning as much as possible .
Chance, being in the military puts you in an excellent position for REI. First, depending on rank and your command, you could be getting BAH which could be paying down a mortgage. Second, you have access to a VA loan with a low interest rate and possibly no down payment.
Instead of living on base, you could be doing what many in the military have done and I wish I had learned long ago, and let the power of your service benefits catapult you into real estate. Plus, though there is an expectation of being the primary occupant in the property to qualify for the VA loan, the loan can still buy you a 2-4 unit property. Also, as a service member you are expected to move every few years. That's when you can refinance and rent that place out and go looking for another.
There's a whole forum dedicated to military REI. I'd recommend asking some of our brothers and sisters in arms how they did it. Thanks for your service!In the time
There you go. Thanks Aaron. I always forget about the special military programs.
Hello. And, thank you for this opportunity to share. Honestly, I'm new. And, my greatest fear is not knowing where to start, failure due to overpayment. Should I look local or out of the area/state. I'm literally trying to get over thus mental block
So the best way to start is by educating yourself in a few different real estate strategies. I usually recommend local if you can because you probably already have some connections that you don't even know about. Also join a local Real Estate Group. An educational one that has monthly meetings.
Using money I have saved to pay off my mortgage on my current home. Or to invest in my first investment property? Ive been going back and forth because less monthly expenses is just as much as an investment as passive income.
Part of it depends on how much you owe and what's your long-term goals are. Say that your current mortgage is at 4%. Don't you think you can get better than a 4% cash on cash return on a multifamily property. I'm not talkin gany appreciation, I'm just talking in Cashflow.
If you can get an 8 to 12% cash on cash return on a multifamily it sounds like a better route.
I own a whole bunch of multi families and single families and commercial buildings. We still have a mortgage on our primary residence. It is the cheapest money that you can borrow.
I do understand what you're thinking. I think about paying off the primary mortgage all the time. But then I realized that my interest rates on my commercial mortgages are between 5 and 12%. My primary is at 3%
For me, my biggest hold back was funding. Being from Canada I am really cautious of lenders. I have had several contact me and send me forms and say they will lend me the money, but how do I know these people are legit?
Perhaps I am missing something. I don't know enough of the difference between Canadian and American lenders. First most of our lenders are banks. We also have mortgage brokers that have lending sources from multiple Banks. Then we have private and hard money lenders who charge higher interest rates but are very convenient. There are companies out there that offer business credit as well. The best bet is to join your local Real Estate Investment Group and get a recommendation from someone. Anybody that offers to lend me money by mail, usually goes to my shredder.
I am making progress, but not at the speed that I would like. I am house hacking a duplex and rent out a SFR. There are a couple of things holding me back from making faster progress and all of them are me. I am probably going to butcher this, but on the podcast, Brandon talks about building a tower and then halfway through the build you get sidetracked and start a new tower from scratch. I look around and I have so many half-built towers that are taking up my time, energy, money and focus. I find myself "busy" trying to do everything at once and I am in the process of shedding all the nonsense and putting more focus into real estate. It is testing my patience and persistence. I have to keep reminding myself that "perfect is the enemy of good."
We all have similar problems. It's all about focus. I have a goal sheet that I look at often to bring me back to the main things that I am working on.
I'm excitedly viewing properties but so far, I think the realtors that are sending me things are sending me properties that are more suitable on the retail market, and for those that I've found as an opportunity, I'm having difficulty finding private buyers (not franchisees) to work with. My marketing so far is yielding a lot of phone calls that are not producing the outcomes I'm aiming for. Not giving up but trying to adjust my direction and find a way to better 'train' my RE Agents on the things to send my way.
I hope that you have been lucky enough to find good agents. Most of the agents out there are not that good at finding investment opportunities. There are some. the market is hot right now so there are not many deals on MLS. Keep working on your letter writing. You should be able to find private buyers at your local REIA.
@Frank Patalano For me, it is lack of inventory/good deals. The Chicago market seems to be pretty dry. I originally started looking at MLS about 6 months ago and there were a few good deals at that time. I wasn't ready but now that I am, it doesn't appear to be a good source right now. Most wholesalers are looking for cash buyers. I have seen some full gut rehab but have been reluctant to take on such a large project as a first timer. Too be honest, I really need a new strategy. Trying not to get discouraged.
Keep educating and keep networking. I would try a yellow letter campaign. The best deals are not going to be on MLS, they are not going to be from a wholesaler, they are going to be the ones that you make yourself. Another thing you could try are stale listings. If a property has been for sale for 180 days find out why. Then make an offer that would work.
@Frank Patalano I’m a be honest what’s holding me back from buying my first property is the fact that my credit score is super low and so is my income. However, I became a Pro member yesterday and I’m going to dedicate my time and effort into figuring this out. If you have some good advice for me I would greatly appreciate it.
#1 read through this entire thread. You will find a lot of useful information most of which I give through paid mentoring.
#2 join your local Real Estate Investment Group. Hopefully it is an education one that meets every month.
#3 help others. If you have the time help others in real estate. They will help educate you. Eventually you will learn strategies to make money.
If you are hungry, and willing to hustle no matter what, you will succeed.
Sounds like you'll need a partner / cosigner to get something done. Private money lenders and hard money lenders don't look at credit or debt to income. If you're out there hustling, wholesaling, and helping others you will find a deal.
For me is fear of getting a property under contract and not being able to assign the contract. there are tons of properties I see that I would like to make an offer but have not yet done so for that reason. Also getting leads coming in consistently. I would like a mentor but they are very expensive. I am trying to do a wholesale deal on my own to save for a mentor.
Sounds like you need a few good Clauses in your contract. Make such a low offer that the sellers think you're crazy. You're allowed to offer anything. Make an offer so go that you think your crazy. Ask some people to local Real Estate Investment Group what they would pay for a property. Show them pictures on a property of what that recently and ask them what they would pay. Then make offers at $10,000 to $15,000 less than that.
But I’m in the military and new to real estate so I’m saving up for a down payment while learning as much as possible .
Chance, being in the military puts you in an excellent position for REI. First, depending on rank and your command, you could be getting BAH which could be paying down a mortgage. Second, you have access to a VA loan with a low interest rate and possibly no down payment.
Instead of living on base, you could be doing what many in the military have done and I wish I had learned long ago, and let the power of your service benefits catapult you into real estate. Plus, though there is an expectation of being the primary occupant in the property to qualify for the VA loan, the loan can still buy you a 2-4 unit property. Also, as a service member you are expected to move every few years. That's when you can refinance and rent that place out and go looking for another.
There's a whole forum dedicated to military REI. I'd recommend asking some of our brothers and sisters in arms how they did it. Thanks for your service!In the time
There you go. Thanks Aaron. I always forget about the special military programs.
That’s what we’re all here for, Frank. BTW, I cut my teeth buying 1/2mil worth of house I couldn’t afford in 2007 while stationed in Newport. I took a beating! ...and I’d still like to go back.
I am looking to buy my first fix and flip in the Seattle market but needing to network more to find some private money. Have a couple workshops this and next week I’m attending to help with my networking.
@Frank Patalano I have a full time business in New York City that needs my attention. I have access to wholesalers,financing, reliable contractors, but not time.
That's fine. You can still be a real estate investor. You still need to make time to go to networking meetings and see properties once in a while.
You will probably end up buying you deals mostly from wholesalers and flip a few with long term rentals as well.
@Frank Patalano I am not sure, how to get started Frank.
Education and Networking. Go to monthly local real estate meetings and read as much as you can. In a month or 2 start seeing properties as well. Set goals on how much you want to achieve in a month.
Fear is what’s holding me back. Fear of if I’m doing this correctly. Am I looking in the area? If I had that one person to be next to me for the first one that would be awesome. I just need to step forward.
So it sounds like you might need to pay for a mentor. If you are going to take that route find a local mentor only. Every market is a local market.
I made plenty of mistakes early on. Taking action is how you learn. Make sure that you are a part of your local real estate investment group.
@Frank Patalano funding is what is holding me back ...
In order to be successful you have to be strong in one of the following. Money, Time, or Experience/Knowledge. If you have time you can help others who will pay you. That is what wholesaling is all about.
@Frank Patalano Money. I think it is hard to invest out of state for my first deal because of money. But I can’t find any great deals where I am where I could use owner financing.
But I’m in the military and new to real estate so I’m saving up for a down payment while learning as much as possible .
Chance, being in the military puts you in an excellent position for REI. First, depending on rank and your command, you could be getting BAH which could be paying down a mortgage. Second, you have access to a VA loan with a low interest rate and possibly no down payment.
Instead of living on base, you could be doing what many in the military have done and I wish I had learned long ago, and let the power of your service benefits catapult you into real estate. Plus, though there is an expectation of being the primary occupant in the property to qualify for the VA loan, the loan can still buy you a 2-4 unit property. Also, as a service member you are expected to move every few years. That's when you can refinance and rent that place out and go looking for another.
There's a whole forum dedicated to military REI. I'd recommend asking some of our brothers and sisters in arms how they did it. Thanks for your service!In the time
There you go. Thanks Aaron. I always forget about the special military programs.
That’s what we’re all here for, Frank. BTW, I cut my teeth buying 1/2mil worth of house I couldn’t afford in 2007 while stationed in Newport. I took a beating! ...and I’d still like to go back.
Yeah. I don't invest in Newport too often but I do know that my personal house has still not recovered from our 2005 purchase.