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.
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.
Keep networking to find that private money. Also your friends can loan for real estate out of their IRAs if they turn them into self directed IRAs. One of my friends did that on a Providence RI property.
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.
Cheers to your investment success!
Fear of the unknown has definitely been a top problem across the first 30 pages of this thread.
Too many people are just trying to get a homerun on their first deal. Get a few quick singles to get the game moving.
@ , 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.
LuAnn
That's fine. I've found many great deals and do not ever plan on taking the real estate exam. Since it is next week I won't give you a hard time. Just don't let a test hold you back.
@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.
Crazy huh? Now the main question that I asked. Are you willing to move?
@Frank Patalano a combination of not having access to a lot of money, and not being able to get pre-approved for much. (Only 20 y/o)
And also not being sure what I want my first move to be, small multi-family house hack, a flip or do I want to try to start with wholesale?
Sounds like you can do any of those. If you have a lot of free time then wholesaling might be the best choice. If you're willing to partner then a flip is probably the best choice.
What steps you currently taking to improve your credit in your cash flow?
My credit is pretty good, 710, I just don't make a whole lot of money. I've only asked one lender though so I guess I should reach out to some more banks and see if they would offer me more.
But I am considering partnering with someone, they have some cash sitting around from one of their deals I'm just not sure how to approach the situation.
My credit is pretty good, 710, I just don't make a whole lot of money. I've only asked one lender though so I guess I should reach out to some more banks and see if they would offer me more.
But I am considering partnering with someone, they have some cash sitting around from one of their deals I'm just not sure how to approach the situation.
The best way to approach it is to find a possible deal first. Then show them the deal and offer a partnership. Offer to contribute more time because they will be putting up more money.
You must ask more lenders. I had one lender deny me with a list of 4 reasons why they would deny me. The other 3 lenders all approved me.
For me it was a fear that I was better off investing in paper assets like stocks. I understood these much better and there's much less time involved. I still hold paper assets but now will hold both paper assets and real estate. Ultimately change is hard so that was also a fear of mine.
For me it was a fear that I was better off investing in paper assets like stocks. I understood these much better and there's much less time involved. I still hold paper assets but now will hold both paper assets and real estate. Ultimately change is hard so that was also a fear of mine.
Let's start out by saying that there are benefits to stocks and paper assets. I personally love the leverage that I can get from investing in real estate. I also love the ability to find unique opportunities in an imperfect market. Stocks definitely have the benefit of easy buying and selling.
This is coming from someone who is 95% invest in real estate and 5% invested in stocks.
Obviously I think that real estate is better.
At the same point there is nothing wrong with having both. Diversification is important. I love how my dividend stocks pay me passively. More passively than my "passive" real estate.
Cash, I'm at any uncertain place in my career so I need to get on my feet more before I can invest more.
If you have time then you can work for others to build experience and possibly cash. You said cash is a weakness for you in Real Estate. What do you consider your strength?
Garrett good luck to your success. What is your current strategy? The first deal will always be a learning experience.
@Frank Patalano The current strategy is searching the MLS and Hubzu. I am on a couple of wholesaler's buyer's list. This is not working so well. I am now considering looking into foreclosures and preforeclosures i.e your yellow letter suggestion. The one problem I may have with working the preforeclosure market is that I am considering take the state exam for RE License in the next couple of months. I haven't really looked in to what type of conflicts if any working preforeclosures as a Licensed Agent may create. I need to look into that. My goal is to start by flipping and/or BRRR to increase my capital so I can focus on buy and holds. Oh btw, I am also listening to David Greene Long Distance Investing to see if that is viable option. Do you have any experience with and/or opinion on long distance investing?
Plain and simple money. I used to have access to partners with either credit capital or both , but that all went away in 09. I see deals everyday that I am confident I can execute profitably, but no matter how successful I once was, the last 10 years have been harsh. Gaining traction is proving challenging, however I will persevere ! Good work all here and best fortune to you all!
Cash, I'm at any uncertain place in my career so I need to get on my feet more before I can invest more.
If you have time then you can work for others to build experience and possibly cash. You said cash is a weakness for you in Real Estate. What do you consider your strength?
Knowledge, I work in commercial real estate.
Knowledge is the most important component. Perhaps you can partner your expertise with someone who has money and wants to invest.
Garrett good luck to your success. What is your current strategy? The first deal will always be a learning experience.
@Frank Patalano The current strategy is searching the MLS and Hubzu. I am on a couple of wholesaler's buyer's list. This is not working so well. I am now considering looking into foreclosures and preforeclosures i.e your yellow letter suggestion. The one problem I may have with working the preforeclosure market is that I am considering take the state exam for RE License in the next couple of months. I haven't really looked in to what type of conflicts if any working preforeclosures as a Licensed Agent may create. I need to look into that. My goal is to start by flipping and/or BRRR to increase my capital so I can focus on buy and holds. Oh btw, I am also listening to David Greene Long Distance Investing to see if that is viable option. Do you have any experience with and/or opinion on long distance investing?
Every state is different but my friends have never had a problem with their real estate agent status and a conflict.
The only out of state investing that I have done is through syndications.
Plain and simple money. I used to have access to partners with either credit capital or both , but that all went away in 09. I see deals everyday that I am confident I can execute profitably, but no matter how successful I once was, the last 10 years have been harsh. Gaining traction is proving challenging, however I will persevere ! Good work all here and best fortune to you all!
2009 was 10 years ago. Yeah. You need to be networking everyday. Bring those deals to people who will pay you. Go to the local real estate investment group. You will Find Buyers there.
@Frank Patalano I live in an expensive area already. The homes are out of my price range and I just couldnt see myself purchasing a 1/1 for $200k or more. The other excuse is if I did purchase something like that, how would I cash flow it???
I have a good job and make decent money (for being single) I did apply for first time home buyer program through NACA of course was approved. However, I don't want to be bound to DC Metropolitan area for 30 years I may want to move and retire else where.
I know the longer the wait I am missing out on opportunity. I want to buy a property mInly for cash flow reasons. But I am also ready to have my own property that I can really call MY home. I also don’t want to move to far because. Y son will be attending college soon and I want to be on the same coastal area in case I need to fly to him. With all that being said I had thought about moving to other areas in the East coast Raleigh, NC, Jacksonville, FL, Georgia, or PA. I thought about other states Austin, TX and Denver, CO these states I could find a job in making same income if I choose to move.
Maybe this is just a mid-life crisis....help, advise needed please!!!
@Frank Patalano I live in an expensive area already. The homes are out of my price range and I just couldnt see myself purchasing a 1/1 for $200k or more. The other excuse is if I did purchase something like that, how would I cash flow it???
I have a good job and make decent money (for being single) I did apply for first time home buyer program through NACA of course was approved. However, I don't want to be bound to DC Metropolitan area for 30 years I may want to move and retire else where.
I know the longer the wait I am missing out on opportunity. I want to buy a property mInly for cash flow reasons. But I am also ready to have my own property that I can really call MY home. I also don’t want to move to far because. Y son will be attending college soon and I want to be on the same coastal area in case I need to fly to him. With all that being said I had thought about moving to other areas in the East coast Raleigh, NC, Jacksonville, FL, Georgia, or PA. I thought about other states Austin, TX and Denver, CO these states I could find a job in making same income if I choose to move.
Maybe this is just a mid-life crisis....help, advise needed please!!!
Well learn as much as you can but don't do anything drastic. Set some goals on what you want to accomplish with real estate.
"I know the longer the wait I am missing out on opportunity." Not necessarily. Markets run in cycles. It's hard to tell.
If you are willing to move I would be looking at Jacksonville right now. Tons of homes at under $100K. I'm not even investing in Jacksonville now and I was like, whoa.