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.
Thanks Frank I appreciate the feedback very much, and yes your right! I GOT THIS do doubt-even a private seller ;)... as to when...if it's today or next week either I'll write my own or pay an attorney as a last resort; but the right documentation is crucial and yet only ever brought up unless it's Wrong. Actually that's why I joined BP Pro last week to see just how valuable it is in a real deal goin down time". HEY! possibly someone here, say preferably a BP Pro in my area of Houston, TEXAS steps up (as I've often done in my life) and just in an instant somebody sends the Purchase Contract & Assignment templates over that they've used etc. and glad to help. Honestly that's what I'm betting on! I do have the ones from the Pro library on BP...and they look good but...? Thanks again
Nothing. When you have a high net worth it’s easier to make decisions on buying Re. When you have no money it’s a huge risk.
I'm not sure that I agree with what you are saying. In theory it sounds right. I think that it is more in their own confidence in the deal and in their own knowledge.
I know someone who still breaks out in a sweat at every closing table even though he owes a good amount of property. He is very worried about losing what he has built.
I know other people with a lower net worth whom are hungrier and have almost nothing to lose.
The lack of financing alternatives for me. I am a foreigner and I am living outside USA, so it is very hard to find a loan to buy a rental property.
I am searching for these types of loans in order to be able to get a better CoC return and to be able to invest in more properties.
Are there any real estate investment clubs in Bogota? Around here we have groups that meet monthly. They are often educational in nature but also great for networking. In my local group we have 6 hard money lenders. There's got to be somebody willing to lend you money. If not perhaps you might need to visit United States and Network with people who want to own foreign assets. I have met people who have considered it. There was an American that I met before that lived in Ecuador full-time.
My first project was a huge success but the structure of the agreement doesn’t benefit me until way down the road. Now that I understand how to scale I’m stuck trying to find investors that trust me for the size of projects I’d like to do.
For me it's a few things, education which I'm getting now, lake of money and bad credit.
So as you are building that education you should also be saving money and improving your credit. You should also add Networking to that list so that you have people available when you are ready to jump in. Set some goals to keep yourself motivated.
My first project was a huge success but the structure of the agreement doesn’t benefit me until way down the road. Now that I understand how to scale I’m stuck trying to find investors that trust me for the size of projects I’d like to do.
You can't expect to hit home runs, the first few times that you are at bat.
I'd love to buy a solely 400 unit apartment building right now but I don't think that I am ready, yet. I am building my portfolio, network, experience, and knowledge to get there.
Keep networking you will eventually find people willing to take a risk with you. I have.
Fear is holding a lot of people back. People are scared of the unknown. Once they jump that hurdle and continue to jump hurdles they will be happy they overcame that temporary fear.
Fear is holding a lot of people back. People are scared of the unknown. Once they jump that hurdle and continue to jump hurdles they will be happy they overcame that temporary fear.
Oh oh another thing I hear from folks starting their real estate investing journey is trying to time the market!
Now, this is a very popular one and yes timing does help a ton; however, Cash Flow is also a very good indication. If you are able to find reasonably cash flowing properties, you are halfway there.
Oh oh another thing I hear from folks starting their real estate investing journey is trying to time the market!
Now, this is a very popular one and yes timing does help a ton; however, Cash Flow is also a very good indication. If you are able to find reasonably cash flowing properties, you are halfway there.
Nothing should be holding you back! 🏘️
Right! I keep telling people to only buy Cashflowing Properties. I never buy based on appreciation.
Discovered a new block, hope someone can answer. Where does the money come from to pay the mortgage when you first buy the property but don’t have a renter? My answer would be to hold money in a bank account but how much? A years worth? Do you drop the price if it just doesn’t rent? How much and for how long? When do you know you’ve chosen the wrong property? When the bank forecloses?
I would hold about 6 months of expenses before closing to pay for emergencies and vacancy. Beside that it would have to come out of pocket. Why would it not rent. You should know the expected rent before you buy. If it doesn't rent, yes you need to drop the price to just under market. Rent it for one year below market. That is why when you make the offer you put in a margin of safety in case your numbers are wrong. If you are that worried ask someone else who owns property to review the deal. Wrong property? If you are that worried about a property you better make a lower offer.
Thanks for the info Frank that helps. As for why there would be problems not renting, etc. Brandon's Hell House, that is what got me thinking about the downsides and worse case scenario.
Too scared to potentially ‘throw’ money away. It seems easy for a lot of people on here to be investing. Myself, I’m just not sure if I can afford to lose the money I have saved for it to just be gone..
Discovered a new block, hope someone can answer. Where does the money come from to pay the mortgage when you first buy the property but don’t have a renter? My answer would be to hold money in a bank account but how much? A years worth? Do you drop the price if it just doesn’t rent? How much and for how long? When do you know you’ve chosen the wrong property? When the bank forecloses?
I would hold about 6 months of expenses before closing to pay for emergencies and vacancy. Beside that it would have to come out of pocket. Why would it not rent. You should know the expected rent before you buy. If it doesn't rent, yes you need to drop the price to just under market. Rent it for one year below market. That is why when you make the offer you put in a margin of safety in case your numbers are wrong. If you are that worried ask someone else who owns property to review the deal. Wrong property? If you are that worried about a property you better make a lower offer.
Thanks for the info Frank that helps. As for why there would be problems not renting, etc. Brandon's Hell House, that is what got me thinking about the downsides and worse case scenario.
Yeah. I'm not sure what you mean by Brandon's Hell house. I'm newer to bigger pockets myself and don't get much time on here. You can have problems with any investment but being overly fearful of every potential problem will definitely hurt your long term growth. Rarely do I say, boy I wish I started later.
Too scared to potentially ‘throw’ money away. It seems easy for a lot of people on here to be investing. Myself, I’m just not sure if I can afford to lose the money I have saved for it to just be gone..
I understand that you could lose money. Yes investing does include risks. Education helps reduce but not eliminate risk. If you can't afford to lose money then you are not ready to be investing. I hate losing money but I can afford to lose it.
@Frank Patalano finding cash for that first down payment
Levi, you have to sacrifice something. I sacrificed for years for my real estate business to start and grow. Now I am seeing the benefits of that sacrifice.
@Frank Patalano 1. No money for a deposit 2. No money 3. NO MONEY
LOL. Who told you that you need money to invest in real estate?
jk. Money makes it easier. You can work for others as a way to educate yourself and make some money. There are also many no cost and low cost networking options.
You are not going to believe this but some people feel that it is easier with no money. I have had a lot of friends who have screwed up big time with real estate because their excessive cash made them lazy. They didn't work hard enough because they didn't need to. If you don't have any money, you don't have anything to lose. There is only one way to go. Up.
Look into seller financing, wholesaling, and getting referral fees.
@Frank Patalano if I have people I know moving to a certain state, and they said they’ll move into a place if I bought it, should I still do research on the area? Would it make sense to make sure that when they are gone it’ll be in a nice enough area for other people to rent? If the current area is saturated with tentL units is it still a good idea? After there could be a thousand rental units on market but if I have guaranteed tenants for 2 years should I stress it?
@Frank Patalano if I have people I know moving to a certain state, and they said they’ll move into a place if I bought it, should I still do research on the area? Would it make sense to make sure that when they are gone it’ll be in a nice enough area for other people to rent? If the current area is saturated with tentL units is it still a good idea? After there could be a thousand rental units on market but if I have guaranteed tenants for 2 years should I stress it?
You should always know your area. You can still buy it but I would be worried if it was a warzone/high crime area. I've had people tell me a lot of things that they were going to do over the years. I've had tenants tell me that they want to live somewhere for ever and then move out at 5 months. Guaranteed? Nothing is guaranteed in life even if your own kid was moving in.
I don’t wish to sound too negative but honestly my immense debts in credit. My score is/was climbing and at about 740. But I’m 10k in the hole due to needing braces and an emergency hospital visit, also working at a job that slaves me at next to nothing. I desperately want to start but with my current position and not having a mentor it’s a borderline impossible fast due to fear
I don’t wish to sound too negative but honestly my immense debts in credit. My score is/was climbing and at about 740. But I’m 10k in the hole due to needing braces and an emergency hospital visit, also working at a job that slaves me at next to nothing. I desperately want to start but with my current position and not having a mentor it’s a borderline impossible fast due to fear
I have worked 7 days a week for 20 years. I understand the emergency hospital visit but you need to be sacrificing to be successful.
Having no mentor is a bs excuse. Many people have been successful without a mentor. Get out there and take action.
When you want you dream as bad as you want to breath you will be successful.