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.
Honestly it’s the returns. I find real estate to be safe and practical to an extend it’s almost boring. But I calmed my risky behavior and decided to go with my rational side
When I say calmed I didn’t mean stop. I find the stock market 10x more exhilarating and that will never change...
Lol. Everyone's different. Most people don't want the anxiety. I can see the boredom. It is a much slower process. The beauty of the stock market is that you can be in an out in seconds. With a property it can take 90 days to get in and out of one. There are shorter ways. What I do like is how you can buy at one price and then 45 minutes later wholesale or double close at a much higher price. I like the discrepancy in valuation. It is more prevalent in real estate than stocks. You can still have it in stocks but it is much more of an bland market since there is no differentiation between one share of company a and another share of company a. Two 3 bed ranches can be quite different on the same street.
@Frank Patalano what’s holding me back is because I don’t feel I’m very informed and educated as of yet about the real estate industry. If someone is in the Savannah GA area and wouldn’t mind me shadowing them, please contact me. I like to learn hands on.
If I can learn from an experienced investor then I’ll feel more motivated / comfortable investing without fear of losing it all.
Right now, I would say not knowing as much *ins & outs* about multi family. I get the general info on the benefits of "Housing hacking" as mentioned on your podcast. My main thing will be, how do I go about obtaining a good cash flow property with little to no money to start off.
Hey. Good seeing you recently. As you can see I be contacted in the forums much better than in real life. Our next episode is all about househacking. Basically in your market you are going to have to find an offmarket multi. Then you are going to be able to do an owner occupied FHA 3.5% down mortgage. Just keep analyzing deals. If you don't have $10K-$15K for a down payment then you are not ready to do a househack in Massachusetts. I'll see you at an upcoming meeting. Been trying to make every Fall River one. It's closer than Worcester to me.
I am approved for a VA loan and trying to get the funds saved up to cover my closing cost etc...
Looking for a duplex I can live in and fix up while I rent out the other.
Can a hard money lender help you with closing cost and etc.. as a way to get started?
I don't think that you can do it the way that you want to. I like your creativity though. I don't know enough about VA loans. I was under the impression that the property needs to be in decent shape. More traditional mortgages won't let the property be run down. I guess there is a difference between run down and needing rehab.
I'm not sure if VA loans allow a second mortgage. Hard money lender don't usually like to be in 2nd position but it is possible.
Check with your mortgage broker. You might need to look into a 203k loan instead.
You're going to want to have an emergency fund for backup money. In case the roof starts leaking. I have to sacrifice for a while to buy my first one.
@Frank Patalano what’s holding me back is because I don’t feel I’m very informed and educated as of yet about the real estate industry. If someone is in the Savannah GA area and wouldn’t mind me shadowing them, please contact me. I like to learn hands on.
If I can learn from an experienced investor then I’ll feel more motivated / comfortable investing without fear of losing it all.
Keep learning. Strat networking. Go to local meetups and find a local real estate investment association. Get into a good monthly educational group. If you can't find one in Savannah let me know and I will ask around. I love Georgia. Poked around the Atlanta market myself before.
Haha! I see that. lol. Either method of reaching you is great. I have been looking at off market multi in my market and some surrounding towns. I'm aiming to get one within a year.
What about partnerships? Would that be a good idea to start off? I remember from one of your episodes, you talked about partnering on some real estate investments.
Or would it be better for me to get the down payment myself and starts off?
What are some things I should be doing right to be ready? * besides saving funds*
I'll be on the lookout for the next episode. I'm all caught up now.
Haha! I see that. lol. Either method of reaching you is great. I have been looking at off market multi in my market and some surrounding towns. I'm aiming to get one within a year.
What about partnerships? Would that be a good idea to start off? I remember from one of your episodes, you talked about partnering on some real estate investments.
Or would it be better for me to get the down payment myself and starts off?
What are some things I should be doing right to be ready? * besides saving funds*
I'll be on the lookout for the next episode. I'm all caught up now.
I would lean towards occupied our house hacking the first one. Then you can take advantage of the FHA three and a half percent down program. Have you been making offers yet?
After you've taken advantage of that. Partner on the second one.
That's not the only strategy but it is what I lean towards right now based on what you've told me.
I have not made any offer lately. I just been finding properties. Then,I reach out to the owners through direct mail marketing, Cold Calling, did some door knocking last week.
Yes, we will be in touch. I've been getting some good tips from your Instagram page.
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!
That's great advice! I've set a date to have my first deal done by the end of May. This deadline pushes me it to do something everyday to move me closer to my goal. Plus, I have a "why" that trumps any inhibitions I once had. Making mistakes is something that has kept me from moving forward, but now I'm at the point where I all of the information I'm learning is useless without real world experience to attach to it.
I have not made any offer lately. I just been finding properties. Then,I reach out to the owners through direct mail marketing, Cold Calling, did some door knocking last week.
Yes, we will be in touch. I've been getting some good tips from your Instagram page.
@Frank Patalano ... Hello Frank! What's holding my back you ask? I live in NYC and the laws are in favor of the tenant. I am currently looking for multifamily units (duplex/fourplex) in other states but I'm not really sure where I should be looking? Also, who can I trust to actually help me find a property that cash flows?
For me it's straight up finances. I'm going through a divorce, so I don't have extra money to put towards properties. In the old days I would have done a no-money down deal, but from what I've read on this website, those are few and far between, if they exist at all. I'll be ready to move forward in 2-3 years hopefully, then it's full steam ahead, my goal is 100 units before 10 years is up.
@Frank Patalano. Thank you for caring enough to ask this question to new investors. It’s very encouraging. My biggest fear is not writing the offer/ contract right and being sued or being stuck with a property. I plan to start with a wholesale assignment but still feel a little lost as to how to get the paperwork started and the best place to find the property and cash buyers. I also fear what will happen if the cash buyer bails out on the deal.
What I would is holding me back is knowledge, debt, and capital. I am currently and have been doin alot of research on real estate and how to get the ball rolling as I work in this field all day a residential construction worker. Also I pretty much live in and am currently rehabbing my girlfriends 2 family home for rental property purposes. I've been talking to coworkers friends family and now I have floated here.
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.
Agreed. I just got my first property last July, and all of the recent market chatter/speculations steered me away from buying. I think getting started in a hot market has it's benefits. It's taught me patience, and has forced me to think conservatively. Hot damn pulling the trigger feels good though.
@Frank Patalano ... Hello Frank! What's holding my back you ask? I live in NYC and the laws are in favor of the tenant. I am currently looking for multifamily units (duplex/fourplex) in other states but I'm not really sure where I should be looking? Also, who can I trust to actually help me find a property that cash flows?
Great question. I would try to look farther and farther out from NYC to start. Make it a place that you can drive to. The best place to find people that you can trust is through your own current network. Find a city or town to focus on then look for a recommendation for a professional there. Meet with them. If you like what you see they will have recommendations to build out the rest if your team.
If you can find a local REIA, you can buy from a local wholesaler.
@Frank Patalano finding a deal and feel confident I’m making the right offer.
Sometimes a deal is in the offer itself. Pick a good property then try to make the right offer.
I have seen many amazing properties of the years. But my best deals were not in the amazing properties. My best deals were in the problem properties. There was something wrong with it which caused others to pass. When I figured out how to fix the problem, that is when I made the money.
For me it's straight up finances. I'm going through a divorce, so I don't have extra money to put towards properties. In the old days I would have done a no-money down deal, but from what I've read on this website, those are few and far between, if they exist at all. I'll be ready to move forward in 2-3 years hopefully, then it's full steam ahead, my goal is 100 units before 10 years is up.
I haven't read much of this website. But there are deals out there. I've bought them before myself. More than once. Are they few and far between? absolutely. Are they possible? Yes.
Success is hard.
If you find a real deal that you can't pull off yourself you could wholesale it or partner on it.
@Frank Patalano. Thank you for caring enough to ask this question to new investors. It’s very encouraging. My biggest fear is not writing the offer/ contract right and being sued or being stuck with a property. I plan to start with a wholesale assignment but still feel a little lost as to how to get the paperwork started and the best place to find the property and cash buyers. I also fear what will happen if the cash buyer bails out on the deal.
I've never been sued for an offer or contract. I guess it's possible but so are a lot of low probability what ifs.
1. Join a local REIA
2. Offer to help a wholesaler that you meet up with. Work with them. For free if you have to, to gain experience. Pay them if you have to.
3. A work around is to buy a contract from an attorney. I don't recommend it but know people that have done it.
I didn't check your state but if you can find a wholesaler in another in-state city you might he able to partner with them or pay to be mentored by them. Make sure you are not trying to compete in their market.
I'm sure that you can find a contract online. Pay an attorney to review it if you want. You need to find a pro investor attorney.
What I would is holding me back is knowledge, debt, and capital. I am currently and have been doin alot of research on real estate and how to get the ball rolling as I work in this field all day a residential construction worker. Also I pretty much live in and am currently rehabbing my girlfriends 2 family home for rental property purposes. I've been talking to coworkers friends family and now I have floated here.
To be successful at real estate you need to have experience OR time OR money. Sounds like you have time. You probably have some knowledge/experience in construction.
Better of than many people on here. Sounds like you are networking pretty good as well. Set some goals to get certain things done daily.
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.
Agreed. I just got my first property last July, and all of the recent market chatter/speculations steered me away from buying. I think getting started in a hot market has it's benefits. It's taught me patience, and has forced me to think conservatively. Hot damn pulling the trigger feels good though.
I agree. Competition will make you a better investor just like playing sports against better players makes you a better athlete.
well that's the issue rn. I'm trying to figure out which to start with. The llc or the property process or should I get rid of my credit before I even do anything? I'm 6000 in the hole but my score is in the 660 range which I'm told is enough but I was also advised that the 8s give you more buying power. Also llcs I've learn have time limits nd properties closing have time limits I'm kinda just lost in the information now.