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.
If your join some local real estate groups and go to them regularly you will get a good education. Eventually you will find people there who will be happy to sit down with you once in a while and review deals, etc.
Fear that the market may correct and I don't if I am wasting my time trying to time the market.
You are definitely wasting your time trying to time the market. Think about how many experts were wrong the last time. We don't know if the market will correct 5 months from now or 5 years from now.
At this point, focus on CashFlowing Assets after conservative analysis. Sometimes the best things that you do for yourself are pass on the marginal deals. No point in having the pressure. You and I both know that you can't rely on appreciation but you should be able to comfortably rely on a relative cashflow number. We pass on 99% of the opportunities that cross our desk.
Oh well. Won't waste any more time on this 4% CAP rate. Next.
@Frank Patalano What strategy to start with and how to apply my available funds to my objective. I insist on acquiring a property that I could use the BRRR strategy on . I was in the process of acquiring a turnkey property when I learned of the short comings of the area along with the fact that I will have to keep my job another 10 years. I also would be tieing up a lot of my liquid to purchase which takes me out of the runnings to purchase an investment property and rehabbing it for about another 4 years. So my question is I've got 40k to spare with pretty decent credit and I'm renting right now my first move has to be me best move and I live in the New York City area where a single mans income of 97k a year is barely enough for a single family property in the five boroughs. I want a multi family that I can use the BRRR strategy on.
Thank you for the info yesterday Frank I would just happen to be searching driving in the New Hampshire area and I came across some Beach area in Hampton not in the flood zone currentky ...but very close and quite possibly could be in the future noi is absolutely incredible talking roughly 2,000 a month.... is it worth the risk..
Decision making time possibly thinking about putting in an offer contingent on further research..... flood zone map was re-structured 2 years ago but it hasn't been released yet...
@Frank Patalano What strategy to start with and how to apply my available funds to my objective. I insist on acquiring a property that I could use the BRRR strategy on . I was in the process of acquiring a turnkey property when I learned of the short comings of the area along with the fact that I will have to keep my job another 10 years. I also would be tieing up a lot of my liquid to purchase which takes me out of the runnings to purchase an investment property and rehabbing it for about another 4 years. So my question is I've got 40k to spare with pretty decent credit and I'm renting right now my first move has to be me best move and I live in the New York City area where a single mans income of 97k a year is barely enough for a single family property in the five boroughs. I want a multi family that I can use the BRRR strategy on.
Are you willing to move? Akron, OH has single families for $40K cash. Rhode Island has triplexes for $225K.
Currently trying to buy my second duplex now, my biggest hurdle is the bank. I keep running in to DTI problems. Property services its own debt great but they dont seem to care with residential income property (at least any lenders around me), its very frustrating.
Fear that I don't know enough to play with the big boys and knowledge that I don't have a ton of money to start with!
I understand. Remember that most of those big boys were in the same boat as you 5 years ago. Start small, house hack your first property. Or partner to buy that first triplex.
@Frank Patalano What seems to be holding me back the most is my ability (or inability I should say) to source deals because My job demands 60-70 hours a week of my time and my young family takes up the rest. I think I need to find a way to streamline (or outsource) sourcing and focus on analysis and execution. Would appreciate your thoughts and advice.
Whats holding me back is networking. I don't do enough of it . I did close on Duplex in December of 2013 I've house hacked since and Triplex in November of 2018 as my first OOS investment . I'm torn between finding an investment or buying my wife a SFR as we now have a 2 year old and another due in August . I live in Los Angeles for a SFR is going to hurt the wallet pretty bad . I do have a commitment to trying to close a deal a year at least so guess I have 8 months to keep searching . My next step is trying to pin down a market . I invested in central Florida for first OOS deal but kinda feel that's too far . Gonna go visit Arizona and try to build a team and pin down an area as I like that its much closer .
Thank you for the info yesterday Frank I would just happen to be searching driving in the New Hampshire area and I came across some Beach area in Hampton not in the flood zone currentky ...but very close and quite possibly could be in the future noi is absolutely incredible talking roughly 2,000 a month.... is it worth the risk..
Decision making time possibly thinking about putting in an offer contingent on further research..... flood zone map was re-structured 2 years ago but it hasn't been released yet...
Sounds like a great idea. Put in an offer with a contingency. Nice thinking.
@Frank Patalano I bought my first property, a single family rental this winter. It is a few hours away from me. Fear of what I don’t know about RE investing and making mistakes was definitely holding me back, but now, another issue has risen- the actual pain of dealing with tenants and trying to learn property management on the go, and it is holding me back a bit from adding another property. I feel I’ve made mistakes already and always It’s hard to conceive that you don’t know what you don’t know. And I don’t want my first property to be a investing career bust. So I’m trying to move forward and not get sidetracked, but I could always use advice!
A very great thread. Thank you all for sharing. I am educating myself and analyzing deals in a a few areas. I am just getting started, I recently sold a rental property and am looking at 2-10 unit properties. I have not yet found anything where the numbers work, but will not stop. I am going to expand my network.
Currently trying to buy my second duplex now, my biggest hurdle is the bank. I keep running in to DTI problems. Property services its own debt great but they dont seem to care with residential income property (at least any lenders around me), its very frustrating.
Make sure that they are including the rents as a part of your income.
Have you thought about hard money or even better is private money.
@Frank Patalano What seems to be holding me back the most is my ability (or inability I should say) to source deals because My job demands 60-70 hours a week of my time and my young family takes up the rest. I think I need to find a way to streamline (or outsource) sourcing and focus on analysis and execution. Would appreciate your thoughts and advice.
Sounds like you have money but no time. 2 options.
If you have some money you should buy from wholesalers. They are putting in the time to find the deals.
If you have a good amount of money you should be hard money lending.
Currently trying to buy my second duplex now, my biggest hurdle is the bank. I keep running in to DTI problems. Property services its own debt great but they dont seem to care with residential income property (at least any lenders around me), its very frustrating.
Make sure that they are including the rents as a part of your income.
Have you thought about hard money or even better is private money.
I have been looking in to hard money starting today. Reached out to couple lenders I have found on here. Just waiting to hear back. As far as private money goes, I dont really know anyone with the kind of cash I need lying around that has any interest in putting it toward REI.
Whats holding me back is networking. I don't do enough of it . I did close on Duplex in December of 2013 I've house hacked since and Triplex in November of 2018 as my first OOS investment . I'm torn between finding an investment or buying my wife a SFR as we now have a 2 year old and another due in August . I live in Los Angeles for a SFR is going to hurt the wallet pretty bad . I do have a commitment to trying to close a deal a year at least so guess I have 8 months to keep searching . My next step is trying to pin down a market . I invested in central Florida for first OOS deal but kinda feel that's too far . Gonna go visit Arizona and try to build a team and pin down an area as I like that its much closer .
Seems like you already said everything that I was going to say.
You should belong to at least one monthly networking group.
You should belong to a mastermind group.
You should be investing closer. NV, NM, AZ, OR, or other parts of CA. FL is too far away.
I've been in the Investment community for the last 5 years and I would say the biggest thing I see holding my friends, clients and colleges back is the "Fear of the unknown" followed by the "Fear of Failure" followed by the "Fear of Success"
Each one of these has the ability to paralyze you and keep you searching for more answers instead of searching for more Deals, Money and Labor.
Get to a local Real Estate Investment group and start learning from the successful investors who will be glad to show you the ropes.
We know what it's like to work be afraid and we move forward towards our goals regardless.
@ , I am waiting to pass my real estate exam so I can find great deals and get a commission for purchasing the property. I am planning to take the exam next week.
@Frank Patalano What strategy to start with and how to apply my available funds to my objective. I insist on acquiring a property that I could use the BRRR strategy on . I was in the process of acquiring a turnkey property when I learned of the short comings of the area along with the fact that I will have to keep my job another 10 years. I also would be tieing up a lot of my liquid to purchase which takes me out of the runnings to purchase an investment property and rehabbing it for about another 4 years. So my question is I've got 40k to spare with pretty decent credit and I'm renting right now my first move has to be me best move and I live in the New York City area where a single mans income of 97k a year is barely enough for a single family property in the five boroughs. I want a multi family that I can use the BRRR strategy on.
Are you willing to move? Akron, OH has single families for $40K cash. Rhode Island has triplexes for $225K.
Even less than that. Recently I put an offer in on a property for $12,5, assuming $8k of repairs required.
@Frank Patalano I bought my first property, a single family rental this winter. It is a few hours away from me. Fear of what I don’t know about RE investing and making mistakes was definitely holding me back, but now, another issue has risen- the actual pain of dealing with tenants and trying to learn property management on the go, and it is holding me back a bit from adding another property. I feel I’ve made mistakes already and always It’s hard to conceive that you don’t know what you don’t know. And I don’t want my first property to be a investing career bust. So I’m trying to move forward and not get sidetracked, but I could always use advice!
Dude you're doing fine. You took action. You're not being held back. You need a few months to digest your growth. Everybody screws up the first time. Just keep learning and improving. Plan on buying property #2 by your 1 year anniversary of property #1.
A very great thread. Thank you all for sharing. I am educating myself and analyzing deals in a a few areas. I am just getting started, I recently sold a rental property and am looking at 2-10 unit properties. I have not yet found anything where the numbers work, but will not stop. I am going to expand my network.
Nice job. Set weekly goals. How many properties are you going to analyze in a week, etc.