So what's holding you back?

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So what's holding you back?

Frank Patalano
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
7y

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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  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Adam Blachnio:
    Originally posted by @Dean Letersky:

    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?

    I have the same experience and if they do not prove that money comes from legal source (AML policy) and offer interest rate at 6% and have FB account since few weeks max with very few posts you are more than sure it is a #scam 💥✅

     Like I said before. I've only borrowed money from Big established firms or individuals from referrals. My office got three letters in the mail yesterday offering business financing. I trashed all three.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Stephen Scire:

    @Frank Patalano

    I'd have to say buying in the right location...

    I'm really targeting college or commuter towns outside Boston area...I have 5 units now in East Boston, 2 i bought in 1999 by being very determined (later story) 😊& 3 others i inherited/rehabbed and increase rent roll by doing so...

    but being 56 now i feel very passionate about bringing it to a new level. Being self-employed, these are retirement moves to increase monthly income. I am no problem going as far as New Haven (Yale area) , but because of distance, dont want an "I told you so" from spouse who rather buy closer.

    My goal is to buy 2 more in the next 2/3 years...I have the 20% down, just want to target a good 1.

    The good part is that I'm looking all over, Manchester NH to Providence to New Haven.

    My original farm area was RI .

    Still searching. I'm patient, just really obsessed in getting this 1st intentional move.

    Thanks for Professionals like you for being there.

     I know the Providence Market pretty well. I should, I have lived here most of my life. You're welcome to come down to my local Real Estate Group. They meet on the third Thursday of the month. DM me for more details. A lot of experienced people in the Rhode Island Market are always there.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jessica Vanderveen:

    Mine is the fear that I will buy the wrong property and lose money, and put my whole family in financial distress

     Just keep trying to be conservative with your numbers. If I don't have fear when I buy a property it usually bites me on the other end. If I lose money or break even it is usually only when I have little fear on the purchase. Do you have anybody a little more experienced who can run the numbers with you before you make the offer?

    0Reply
  • Jessica Vanderveen
    Lunenburg, ON · Member since 2018 · 15 posts · 4 votes
    7y

    I have a real estate agent in the family, and lots of family members who know about construction and rehab. I would always run the numbers by this group of people, but still, there's always that fear. I know I have to get over that, otherwise this flipping thing will never happen.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @LaToya R. Warren:

    The thing that is holding me back is the ability to find that one investor that looks at the asset and not the amount of cash I have on hand. life happens to everyone at some point. I am the type that likes to have everything lined up In order and am learning that it’s not always possible when investing in real estate. 

     So pulling the trigger is hard due financial position m

     I really don't know anyone that is willing to lend without confirming the financial strength of whom they're loaning the money to. Even with non-recourse loans they will still verify that you are experienced and have a strong balance sheet.

    For all the people that say that hard money lenders only look at the asset, those lenders still expect you to put money up also known as skin in the game. Your best bet is to find a partner who has some cash available. This person does not have to know anything about real estate. But is willing to partner with you on a property.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @LaToya R. Warren:

    Also it’s getting into a property that will cause more financial problems for my family. 

     If you buy a decent property at a decent price then the property should provide you with a start towards Financial Freedom not financial problems

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @James Naddeo:

    I'm worried that we're in the 11th hour, and the economy is going to turn south. And, like most people, I'm sure, I feel like a lack of confidence in the research (have I done enough? is it the right research? is it accurate?) is holding me back because I worry about making a misstep (buying in an area where I overestimate potential, overextending myself, etc.)

     Timing the market is virtually impossible. There are plenty of experts that were wrong the last time. 

    Making a mistake is a normal worry but even those with experience make mistakes all the time. I did last year on a property.

    It is impossible to be fully prepared and to have already calculated every possible thing that might happen. You just have to take the research that you've done so far, feel confident enough that you're 90% right, and pull the trigger.

    Also, If you have any friends that own investment real estate you could have them look at the deal before you make the offer.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Alethea Sealy:

    Good question: For me, I have 10 multifamily homes that I rent out in Detroit. Though I want to move forward, I can't keep buying properties for cash. I would prefer to get into small apartment buildings but I do not fit the bank's criteria because of a bad credit record but I have these properties that are income producing.

     That is awesome that you have been able to build that size portfolio with cash.

    Are you improving your credit now?

    Your best bet is to partner on a few apartment complexes with good credit partners. I have previously done that before on the right deal.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Chris Roche:
    Originally posted by @James Naddeo:

    I'm worried that we're in the 11th hour, and the economy is going to turn south. And, like most people, I'm sure, I feel like a lack of confidence in the research (have I done enough? is it the right research? is it accurate?) is holding me back because I worry about making a misstep (buying in an area where I overestimate potential, overextending myself, etc.)

    I agree, but then I hear everyone saying if it cash flows buy it!  Any you can't time the market, don't keep waiting, etc.  And, what if the top isn't for another year? 2 years? Or what if it crashes next month?

     I agree. Cashflow is King. 😎 

    Who knows if it's going to be 5 months or 5 years before the market comes down.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jessica Vanderveen:

    I have a real estate agent in the family, and lots of family members who know about construction and rehab. I would always run the numbers by this group of people, but still, there's always that fear. I know I have to get over that, otherwise this flipping thing will never happen.

     Sounds like you have a much better team already available than most people. I have a news flash there will always be fear whether you've done one property or 100. My worst deals have usually been when I have no fear. Try to do a deal that is small overall and make it happen. Take action. Commit. That's how you learn.

    0Reply
  • Michael Grant
    Flipper/Rehabber · Bronx, NY · Member since 2018 · 14 posts · 3 votes
    7y
    Originally posted by @Frank Patalano:
    Originally posted by @Michael Grant:

    @Frank Patalano

    I had this question stuck on my mind for a few months now . I discovered real estate investing in late December And have been hooked on ever since. I’m holding back on two reasons 1) I want to make sure I know what I’m doing , so in order for me to “pull the trigger” I want to educate myself as much as possible. I am currently reading Brandon Turner’s book “ investing in real estate with no and low money down”. Few days ago I’ve finished rich dad poor dad and I am gaining momentum ( confidence) as I go with educating myself.

    2) I am intimidated by my market. I am in NYC ( the Bronx ) to be specific and everything in my area is between 300-800k. What would you recommend me doing first as a new investor so I can FINALLY pull the trigger and be on my way to finacial freedom ?

     I would be intimidated by NYC too. Do you own a home now? That will make a big difference in my answer. Also what is your current job? Without the answers to those two questions the only thing I will tell you is to make sure you continue educating and networking. You need to be out there meeting people in the local real estate world. I was just at a real estate conference in Brooklyn two Saturdays ago.

    I don’t own a home as of now but I do hope to have my first investments property sometime this year. Since The NYC market is so expensive and competitive I am looking into wholesale deals in NJ and upstate New York. My current job is a courier ( independent contractor) work. Not a w2 job which allows me to have a flexible schedule. 

    1Reply
  • Greg Stetz
    Real Estate Agent · Port St. Lucie, FL · Member since 2018 · 152 posts · 51 votes
    7y

    @Frank Patalano goin for and completing my RE licensure here in Florida and asking myself how I can apply this knowledge and license most effectively to invest for myself.

    0Reply
  • Bobby M Pegues
    Member since 2019 · 1 post · 0 votes
    7y

    @Frank Patalano I am in debt. I have the strategy and calculators but i am new to investing and don't have the private capital to put against a hard money loan.

    0Reply
  • Racquel Steele
    Member since 2018 · 1 post · 0 votes
    7y

    @Frank Patalano hello

    Right now I’m working on building up my credit and also deceasing my expenses I’ve taken small steps like looking at properties and and attempting to uses the brrr calculator on the bp website haven’t had any luck finding an investor friendly Real estate agent in the Charlotte area other than that saving up my down payment is where I’m at right now I know that I definitely want my first deal to be a Multi-Family rental property any advice would be greatly appreciated.

    0Reply
  • Mary Washington
    Member since 2018 · 2 posts · 1 vote
    7y

    Thank you so much for your help. I will definitely go do this.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Michael Grant:
    Originally posted by @Frank Patalano:
    Originally posted by @Michael Grant:

    @Frank Patalano

    I had this question stuck on my mind for a few months now . I discovered real estate investing in late December And have been hooked on ever since. I’m holding back on two reasons 1) I want to make sure I know what I’m doing , so in order for me to “pull the trigger” I want to educate myself as much as possible. I am currently reading Brandon Turner’s book “ investing in real estate with no and low money down”. Few days ago I’ve finished rich dad poor dad and I am gaining momentum ( confidence) as I go with educating myself.

    2) I am intimidated by my market. I am in NYC ( the Bronx ) to be specific and everything in my area is between 300-800k. What would you recommend me doing first as a new investor so I can FINALLY pull the trigger and be on my way to finacial freedom ?

     I would be intimidated by NYC too. Do you own a home now? That will make a big difference in my answer. Also what is your current job? Without the answers to those two questions the only thing I will tell you is to make sure you continue educating and networking. You need to be out there meeting people in the local real estate world. I was just at a real estate conference in Brooklyn two Saturdays ago.

    I don’t own a home as of now but I do hope to have my first investments property sometime this year. Since The NYC market is so expensive and competitive I am looking into wholesale deals in NJ and upstate New York. My current job is a courier ( independent contractor) work. Not a w2 job which allows me to have a flexible schedule. 

     So one strategy is to house hack your first property. Buy a 3-unit or 4 unit and live in one. Another thing to do is to wholesale in upstate New York. I used to live near Albany and Troy. There has got to be deals in the Fishkill market, etc. You could do flips as well. You know what your strengths are. If your strength is time then wholesaling is a great strategy. If you have time and some money then you could do more flips.

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @B Warren Brooks:

    I am looking for individuals who can supply expertise to bring my project into reality

    I don't know what your project is but you should probably be going to your local investment group meetings. There you should be able to find people who can help you at a local level. Meeting monthly or sooner to be accountable on your goals. Even if they are not interested, they might be able to help you find others to help on your path.

    0Reply
  • Najee Hoggard
    Member since 2018 · 34 posts · 4 votes
    7y

    @Frank Patalano not knowing what type of strategy to go with to initially try to get started

    0Reply
  • Dan Portka
    Real Estate Agent · San Pedro, CA · Member since 2019 · 253 posts · 128 votes
    7y

    @Frank Patalano for me being brand new to REI its twofold

    1) education - I’ve been doing a lot of reading and listening to podcasts

    2) lack of a network - being that I’m interested in investing out of state I have yet to build a team of people that I trust.

    Just started looking what real estate events are in my area to try and tackle two birds with one stone

    0Reply
  • Megan Hodges
    Rental Property Investor · Houston, TX · Member since 2018 · 40 posts · 26 votes
    7y

    @Frank Patalano

    I'm going for a 203k FHA loan and unfortunately with their very stringent guidelines it will be almost a year before I can get approved. Planning to purchase a foreclosed duplex. Renovate with rest of loan and rent out extra unit (living in the other for the first year of course) and then after a year, refinance, use equity on first rental to put a down payment on next rental property (probably another duplex). Move out of first one and rent out the second unit. Go from there. My question is, being that I won't be able to actually start my investment journey until early next when I meet the guidelines, what can I do right now to keep me in the investment realm? Are there certain people in the investment world that I could reach out to for mentoring? Maybe part time work as property manager or just helping analyzing properties/searching for deals? I'd love to keep my motivation and knowledge on this career going but knowing I have a year before I can make any real investing moves is starting to hinder my motivation and accountability for myself. I know I could use this year to be that much more prepared but what exactly can I do other than read and watch videos?

    0Reply
  • Vivian Ji
    Rental Property Investor · Houston, TX · Member since 2018 · 12 posts · 3 votes
    7y
    Originally posted by @Frank Patalano:
    Originally posted by @Vivian Ji:
    Originally posted by @Frank Patalano:
    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?

     I am having a license being a part-time investor myself. so I am using my own excel calculator, har, zillow, etc. 

    That's not what I meant. Sorry. Where are finding possible deals? All MLS?

    MLS and some off-market notes. we have some local investor here sending emails out to whoever is interested. but of course, best deals requires you to be VIP

    0Reply
  • Christine Lawrence
    Member since 2019 · 8 posts · 9 votes
    7y

    Finding a property management company/team I can trust

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Greg Stetz:

    @Frank Patalano goin for and completing my RE licensure here in Florida and asking myself how I can apply this knowledge and license most effectively to invest for myself.

     Keep educating. Just remember that you will learn differently through networking and taking action. You can still be out there now. Looking at properties, making offers, etc.

    1Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Bobby M Pegues:

    @Frank Patalano I am in debt. I have the strategy and calculators but i am new to investing and don't have the private capital to put against a hard money loan.

     If you have time, you can help others. That will help you build experience with no money. Sometimes you can even get paid (finder's fees, referral fees, etc.)

    0Reply
  • Frank Patalano
    OP
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Racquel Steele:

    @Frank Patalano hello

    Right now I’m working on building up my credit and also deceasing my expenses I’ve taken small steps like looking at properties and and attempting to uses the brrr calculator on the bp website haven’t had any luck finding an investor friendly Real estate agent in the Charlotte area other than that saving up my down payment is where I’m at right now I know that I definitely want my first deal to be a Multi-Family rental property any advice would be greatly appreciated.

    I find it shocking that you have not found an investor friendly realtor yet. Have you joined your local REIA? You will definitely find one there.

    0Reply
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