So what's holding you back?

3.6K Replies

@frank patalano - I agree that the internet has created a ton of transparency into cash flow real estate, and that may indeed have reduced some competitive advantage related to market inefficiency, but the pricing mechanisms have not changed.  Prices are still constrained by the ability to service the debt.  We just seem to be at the upper end of the band. 

I tend to think that low interest rates globally and the "chase for yield" are largely responsible for the price appreciation and low cap rates we see today.  But I also think that there has been a lot of malinvestment from inexperienced capital that would not be in real estate but for low rates.  A lot of inventory seems to have been priced for and bought with the expectation of perfection.  When the imperfect finally happens, I think the field will thin, the syndication money will drain, and the deals will come back to those with their own cash.

@Frank Patalano I’d say the biggest thing holding me back right now is being comfortable investing out of state. My market is way too hot to make longer-term investing a good option. The rental rates are nowhere near strong enough to make sense when buying very inflated houses. Cap rate is around 5-6% here. Just not enough to make sense. But... as someone who has worked their butt off to build everything from scratch by managing it with my spouse, and being very hands on, it’s very scary to invest in another area and count on/trust others. It just feels very risky to buy a house without actually walking through it, hire someone to make repairs and hire someone to rent it. There has to be a lot of trust built to do that comfortably. Turnkey rentals usually aren’t that great when you look at the real numbers. And a lot of those companies are not honest or transparent.

I’m interested in single family or small multi-family properties.

@Frank Patalano

I can tell you for me right now its about education and funding. Literally started listening to Bigger Pockets pod casts about two weeks ago and have certainly gained valuable insight. I was a Real Estate agent here in CT until about a year ago. I do plan to re-activate in the next few weeks as I venture into real estate investment. I recently was introduced to CTREIA and plan to join up with them. I have a real estate agent who is a friend of mine who has me on a drip campaign with specific criteria. I am looking but I feel that I need a bit more education. I need to start networking a bit to jump start my business. I'm not entirely worried about jumping right in but at this point I'm trying to put my ducks in a row.

@Frank Patalano

It truly is financing. I know I hear it all the time that if the deal is right the money will be there. Maybe that is true when you have the contacts. But it seems those who have the right lending contacts don't share them. I get that. Business is business. Those are the same people telling everyone the money is always there though! I'm building my bank account right now to have a down payment and windfall so that I can buy.

@Kirby Davis

Think about it. That blood, sweat, and tears that you have put in gives you a competitive advantage in your area and that experience is priceless.

If you are investing out of state...

Go out there and see the neighborhoods.

Build a team.

Start small.

We are at a similar point now. Sometimes the grass isn't always greener.

@Jordan G.

Right. That is my biggest problem as well.

My network of wholesalers is pretty dry for my criteria.

What am I doing about it?

I am expanding my network and my areas. Meeting people out of my network and going to 3 REIA in other markets.

Stay in the Hunt.

@Shane H.

Downpayments? That's not a tough one.

If you have a true deal you will have to partner up to get it done. Think of some possible assets as time, money, and experience. If you brought a true deal, people with money but no time to look for deals would love to partner with you. If it's truly a score, people with money will be begging to work with you. If not, try to wholesale it.

@Chadwick Owens

Your doing fine.

Keep up with your goals.

Keep learning. (Don't let Education be an excuse though.)

Get out there and look at so many houses a week. Meet with people for coffee. Read books on real estate. Etc.

#Motivate #educate #duplicate

The CTREIA is great though I personally love RIREIG (might be too far of a drive 😁).

@Shane H.

Are you willing to partner?

Have you been going to Real Estate investment meetings?

I had a friend who used to make all of his money by Wholesaling.

I meet people all the time who are begging me for deals. If you have a deal, lock it under contract, then partner or wholesale.

I've bought houses no Money down.

I've had friends do sandwich leases.

Stay positive and keep learning.

@Frank Patalano

Again, everyone says that. And maybe it's my area. I regularly attend meetups. There are a handful of true investors. The meeting is full of wholesalers, and others just getting started. The investors are guarded. Most of them are really little guys themselves, who partner with the money holders to do the deals. May be im just in the wrong market. After all their are cashflowong properties on the mls that no one is interested in. And when emails are sent to the rei group, with multi units no one even asks for the info.

@Frank Patalano

Also to be clear. I'm quite positive. I will find and secure deals. I have an unconventional out of town deal that I'm working on securing financing for right now. That's my current main focus. If I get this one or it disappears, I'll be on the hunt again. Either way I watch for deals everyday. I'm going to see an off the market sfh this weekend. I "partnered" with another investor last month to go after a bigger sfh for a flip. It didn't work out. I'm not quitting anytime soon. It just looks like I may have to wait longer than I'd like and buy on more conventional terms.

This post has been removed.

This post has been removed.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here