So what's holding you back?
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?
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.
So I posted 2 weeks ago hoe I lost a deal being too slow on the offer (2 days)
cash flow was very good , but overthought flood zone.
Now , I have a chance on a 2 family...on the other side of a flip.
have to say ...they did a good job, but after all is done my cash on cash is at 8-9%,
I've been looking at lower quality properties with better cash flow outside of our hot market, (1-2 hours drive)
this one is a nice town, school system, commuter rail...better but lower return.
I'm 56 , have 5 units now & I don't want to feel like I'm settling but It feels much better , the area & distance (10 minutes away)
I am self-employed and this move seems better …. Am I making the right move ?
your thoughts.... ohh and based on many podcasts i've listened to, this theory sits well with me ….. choosing quality over quantity.
On a follow up question , a 2 day open house ( Sun Sun , 1 hour each) ….
should a place my offer AFTER both or pull the trigger before the Sunday open house....your thoughts as well.
I do like the property very much !
So I posted 2 weeks ago hoe I lost a deal being too slow on the offer (2 days)
cash flow was very good , but overthought flood zone.
Now , I have a chance on a 2 family...on the other side of a flip.
have to say ...they did a good job, but after all is done my cash on cash is at 8-9%,
I've been looking at lower quality properties with better cash flow outside of our hot market, (1-2 hours drive)
this one is a nice town, school system, commuter rail...better but lower return.
I'm 56 , have 5 units now & I don't want to feel like I'm settling but It feels much better , the area & distance (10 minutes away)
I am self-employed and this move seems better …. Am I making the right move ?
your thoughts.... ohh and based on many podcasts i've listened to, this theory sits well with me ….. choosing quality over quantity.
On a follow up question , a 2 day open house ( Sun Sun , 1 hour each) ….
should a place my offer AFTER both or pull the trigger before the Sunday open house....your thoughts as well.
I do like the property very much !
Go with your gut. Quality over quantity. We own a bunch of buildings but also some singles and 2 families. The smaller unit properties are safer. Less risk, less return. But less phone calls. Less worry.
So I posted 2 weeks ago hoe I lost a deal being too slow on the offer (2 days)
cash flow was very good , but overthought flood zone.
Now , I have a chance on a 2 family...on the other side of a flip.
have to say ...they did a good job, but after all is done my cash on cash is at 8-9%,
I've been looking at lower quality properties with better cash flow outside of our hot market, (1-2 hours drive)
this one is a nice town, school system, commuter rail...better but lower return.
I'm 56 , have 5 units now & I don't want to feel like I'm settling but It feels much better , the area & distance (10 minutes away)
I am self-employed and this move seems better …. Am I making the right move ?
your thoughts.... ohh and based on many podcasts i've listened to, this theory sits well with me ….. choosing quality over quantity.
On a follow up question , a 2 day open house ( Sun Sun , 1 hour each) ….
should a place my offer AFTER both or pull the trigger before the Sunday open house....your thoughts as well.
I do like the property very much !
Option one, Put in your offer right after you see it. If it's the right property, make an offer. Playing devil's advocate if you wait till after the second open house then the agent can't float around your offer number. So basically I don't have a good answer for you.
Thanks Frank...I will go with my gut, thanks for the input.
I'll let you know soon how I made out.
Hoping for this new chapter in my life , having calculated decisions in multifamily investing.
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.
That's the holding pattern I've been in for a while too. It's time to break the chain this year.
Yeah. I'm not sure what you mean by Brandon's Hell house.
Brandon does some of the webinars and in one he told of a house he bought for cheap but it rented at a loss for something like a decade then finally sold. He didn't sound confident he made money even with the sale.
Yeah. I'm not sure what you mean by Brandon's Hell house.
Brandon does some of the webinars and in one he told of a house he bought for cheap but it rented at a loss for something like a decade then finally sold. He didn't sound confident he made money even with the sale.
That can happen I guess but it sounds more like the exception than the rule. I had a friend who bought a multi for $7,000 around 2011. It needed a full rehab. The property was not super profitable for years but he was able to get a great return when he sold it last year.
I'm eager to start as got a taste after selling a property I had for long time at a profit. My major issue is unsure how to find distressed properties so I can rehab or flip. By the time it is on MLS it is too late. Those at auctions seem to get overbid on. There are some applications that claim they provide this info but not sure if spending several thousands for that is prudent. Really need help on sourcing the properties.
I'm eager to start as got a taste after selling a property I had for long time at a profit. My major issue is unsure how to find distressed properties so I can rehab or flip. By the time it is on MLS it is too late. Those at auctions seem to get overbid on. There are some applications that claim they provide this info but not sure if spending several thousands for that is prudent. Really need help on sourcing the properties.
2 big options.
1. Join your local REIA. Find out who the local wholesalers are. That is where you can get some deals.
2. Start sending out yellow letters yourself. The best deals are the ones that you make yourself. Educate yourself if necessary before you do this.
Thanks. Joined one last night
If it's a good educational group it will be one of the best investments you've ever made.
@Frank Patalano
I think my biggest hold back is the lack of knowledge I have in this field at moment, and that carries over to “pulling the trigger” on deals because I’m scare I might be getting my self into a huge debt I probably can’t afford.
You shouldn't "pull the trigger" if you have a lack of knowledge. But if can;t be an expert before you find your first deal. Actually get out there and look at properties. That will build knowledge as well.
Thank you! I recently finished reading the BP book on "How to Invest in Real Estate" picked up another on Rental property since that is what I want to become an expert on and go from there after. Thank you again
@Frank Patalano
I think my biggest hold back is the lack of knowledge I have in this field at moment, and that carries over to “pulling the trigger” on deals because I’m scare I might be getting my self into a huge debt I probably can’t afford.
You shouldn't "pull the trigger" if you have a lack of knowledge. But if can;t be an expert before you find your first deal. Actually get out there and look at properties. That will build knowledge as well.
Thank you! I recently finished reading the BP book on "How to Invest in Real Estate" picked up another on Rental property since that is what I want to become an expert on and go from there after. Thank you again
Join a local real estate group.
@Frank Patalano I am in a similar boat as @Kris L. I am less than 2 years from retirement from the military and over the last month discovered the path of real estate investing. Right now I am preparing by educating myself on different techniques. With my current schedule it makes it hard to go to local investment group meetings. This summer when the kids are out of school it will be easier.
Also I don't have the funds to put a large down payment on an investment property. My wife and family are working on putting a budget in place and paying off some debt to make the transistion easier. Our plan is to ensure our bills are covered by my retirement check and use my next paycheck as the vehicle to fund our investments. - Jacque
@Frank Patalano I am in a similar boat as @Kris L. I am less than 2 years from retirement from the military and over the last month discovered the path of real estate investing. Right now I am preparing by educating myself on different techniques. With my current schedule it makes it hard to go to local investment group meetings. This summer when the kids are out of school it will be easier.
Also I don't have the funds to put a large down payment on an investment property. My wife and family are working on putting a budget in place and paying off some debt to make the transistion easier. Our plan is to ensure our bills are covered by my retirement check and use my next paycheck as the vehicle to fund our investments. - Jacque
Sounds perfect. You are on a great path. Keep learning. Do you own a house now?
That's the holding pattern I've been in for a while too. It's time to break the chain this year.
Man, just do it. Last July is when we decided we wanted to start real estate investing. Today we have our first two properties under our belts. I read too much on BP about analysis paralysis, so last August I decided I didn't want to get into that pattern. I set a goal to have our first property by the end of 2018. I'd say just set a goal that is more specific than "this year". If it were me starting now, I'd set my own goal for August 31st.
Set a date in the not too distant future, pick an area, find an agent and go for it. I know I just oversimplified the process, but once you've made the decision to buy a property by a certain date, you'll find yourself getting the rest of the information you'll need to land your first deal.
Good luck!
Honestly, I'm with Jacob on this one. The "Analysis paralysis" was too real, and has caused me to stutter-step as far as actually taking the leap goes.
Meet up with other people. Find a partner. Look at it together. Review the numbers until you can agree on a price. Then go for it.
It's ok to keep analyzing and learning- I overanalyze all the time and it does hold me back at times. I think the solution is to commit to a certain timeline of actions that you weave into all of the constant learning and analysis. I have a system that I commit to operating on for certain time blocks daily that forces me to pursue opportunity in my real estate business to buy more properties, pursue new investors, etc... and spend the time/money associated with it. Outside of those time blocks, I go back to learning and analyzing.
That's the holding pattern I've been in for a while too. It's time to break the chain this year.
Man, just do it. Last July is when we decided we wanted to start real estate investing. Today we have our first two properties under our belts. I read too much on BP about analysis paralysis, so last August I decided I didn't want to get into that pattern. I set a goal to have our first property by the end of 2018. I'd say just set a goal that is more specific than "this year". If it were me starting now, I'd set my own goal for August 31st.
Set a date in the not too distant future, pick an area, find an agent and go for it! I know I just oversimplified the process, but once you've made the decision to buy a property by a certain date, you'll find yourself getting the rest of the information you'll need to land your first deal!
Good luck!
Nice. Set weekly goals. Look at so many properties in a week. Make 1 offer a week. Meet up with so many real estate people a week.
It's ok to keep analyzing and learning- I overanalyze all the time and it does hold me back at times. I think the solution is to commit to a certain timeline of actions that you weave into all of the constant learning and analysis. I have a system that I commit to operating on for certain time blocks daily that forces me to pursue opportunity in my real estate business to buy more properties, pursue new investors, etc... and spend the time/money associated with it. Outside of those time blocks, I go back to learning and analyzing.
Yes! Set aside time every week for real estate. No excuses.
@Frank Patalano I am in a similar boat as @Kris L. I am less than 2 years from retirement from the military and over the last month discovered the path of real estate investing. Right now I am preparing by educating myself on different techniques. With my current schedule it makes it hard to go to local investment group meetings. This summer when the kids are out of school it will be easier.
Also I don't have the funds to put a large down payment on an investment property. My wife and family are working on putting a budget in place and paying off some debt to make the transistion easier. Our plan is to ensure our bills are covered by my retirement check and use my next paycheck as the vehicle to fund our investments. - Jacque
Sounds perfect. You are on a great path. Keep learning. Do you own a house now?
@Frank Patalano I am in a similar boat as @Kris L. I am less than 2 years from retirement from the military and over the last month discovered the path of real estate investing. Right now I am preparing by educating myself on different techniques. With my current schedule it makes it hard to go to local investment group meetings. This summer when the kids are out of school it will be easier.
Also I don't have the funds to put a large down payment on an investment property. My wife and family are working on putting a budget in place and paying off some debt to make the transistion easier. Our plan is to ensure our bills are covered by my retirement check and use my next paycheck as the vehicle to fund our investments. - Jacque
Sounds perfect. You are on a great path. Keep learning. Do you own a house now?
Gotcha. Just thinking about options for you. You could sell your single family and use any equity to buy a multi. You could partner on your first deal. You could wholesale your first investment property to build some cash.
@Frank Patalano I am in a similar boat as @Kris L. I am less than 2 years from retirement from the military and over the last month discovered the path of real estate investing. Right now I am preparing by educating myself on different techniques. With my current schedule it makes it hard to go to local investment group meetings. This summer when the kids are out of school it will be easier.
Also I don't have the funds to put a large down payment on an investment property. My wife and family are working on putting a budget in place and paying off some debt to make the transistion easier. Our plan is to ensure our bills are covered by my retirement check and use my next paycheck as the vehicle to fund our investments. - Jacque
Sounds perfect. You are on a great path. Keep learning. Do you own a house now?
Gotcha. Just thinking about options for you. You could sell your single family and use any equity to buy a multi. You could partner on your first deal. You could wholesale your first investment property to build some cash.