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.
@Frank Patalano my wife was pregnant and the question was if there were to be any additional expenses from him being born. I am happy to say he was healthy and will be making my first offer on a 4 unit this week. Other than that paralysis by analysis was the ultimate reason.
If you find a great deal the money will come. Financing really should not be a problem.
Let's give an example. Let's say you have a guy who is sick of his triplex. He bought it 20 years ago for $85K. Today it is generating $2.5k a month. He just wants to get rid of it for $200K. You have no cash.
With this example I would find a partner who has money but no time. The partner would put up the money and you would have found the deal and will manage the property for a certain amount of time. You both could use traditional financing if your money partner puts down 25%.
OR
You could put the property under contract and sell the contract to someone else for $5K. Welcome to wholesaling. You made $5K by finding the deal and assigning the contract to someone else.
@Frank Patalano my wife was pregnant and the question was if there were to be any additional expenses from him being born. I am happy to say he was healthy and will be making my first offer on a 4 unit this week. Other than that paralysis by analysis was the ultimate reason.
Hey listen. There is nothing wrong with protecting yourself from losses during and right after a pregnancy.
It sounds like you have broken through the analysis paralysis since you are taking action. Nice job.
@Frank Patalano where I live after the expenses no cash flow unless big down payment.
You say that but in the last month I have met people making money in New Hampshire, Worcester, and Fall River. You're right that Boston is too hot right now but don't make that an excuse to not be looking further out. Keep networking in those areas to increase your chances of getting a deal.
@Frank Patalano Also I’m the breadwinner have have been out of a job for over a year now. But I am starting to wonder if now is the time to get busy flipping houses or getting some kind of income going through real estate.
I fear that I will be in over my head. Most aspects of purchasing an investment property involve things that I have never had experience with before. To jump in and be solely responsible for everything that happens after is a little terrifying. It seems that most great things start out that way though.
@Frank Patalano Also I’m the breadwinner have have been out of a job for over a year now. But I am starting to wonder if now is the time to get busy flipping houses or getting some kind of income going through real estate.
There is never a wrong time if the numbers work. You are buying for cashflow, not for appreciation. Right now you might be looking for a diamond in the rough but why not keep looking.
Thank you. We made one investment that’s working out ok. About $150K in equity but only breaking even on cash flow.
Love your comment about education. I spent 20 years or so in corporate America so I am comfortable with the idea that you can’t know everything so you have get as educated as possible and move forward from there.
Yes investing for cash flow/ flipping makes the most sense I am guessing. Also thinking about property management to start if anyone has any thoughts. Not sure it fits our personalities but worth exploring.
Mostly same thing many stated, Fear and over analyzing of deals. Right now have a property under contract, price decent, but cash flow not close to my other properties due to how leases configured by current owner with him covering utilities. My Fear is that even though I know i can lower the existing expenses now with current tenants, and on new tenants can change utilities over to them, I fear it will not work as I have planned and will somehow end in negative cash flow. That is what I have to overcome, the fear of failure. If this was a sure thing everyone would do it and it would not be investing.
Mostly same thing many stated, Fear and over analyzing of deals. Right now have a property under contract, price decent, but cash flow not close to my other properties due to how leases configured by current owner with him covering utilities. My Fear is that even though I know i can lower the existing expenses now with current tenants, and on new tenants can change utilities over to them, I fear it will not work as I have planned and will somehow end in negative cash flow. That is what I have to overcome, the fear of failure. If this was a sure thing everyone would do it and it would not be investing.
I like your last sentence. It reminds me if real estate was real-estate was easy then everybody would be doing. How long until the current leases come up? I'm not saying I like this idea but the good news is that if you lose money short-term then at least you will get depreciation and other tax benefits. Your goal must be the cash flow every property.
What is holding us back at this point in time is funding. My wife and I started our company a year ago, and have one rehab/flip deal in the works, but now we are hitting a wall with funding for our second deal. Unfortunately, my wife is getting frustrated. We have the education and backing of systems, so the paralysis is not the issue. Money is.
@Frank Patalano the only thing holding me back is capital. I’m working on that piece right now. As soon as I am in a good position to obtain a loan I’m all over it. Hard money lenders usually want about 10% in the bank to make sure I can make the interest payment.
Hi Frank, my husband and I are currently buying our 1st rental property. What's holding us back is fear of unknown and whether we will make positive Cash flow or not. Finally, we pulled the trigger and will closed on our 1st rental property in 2 weeks!
Thank you for sharing this post.
I am new to the Real Estate world and to BP I have been fascinated about REI since I bought my home and started working in the multifamily business with a management company and have been trying to learnthe business listings to BP audiobooks and just started reading books when I get some down time in my schedule.
What was holding me back was lack of support. Now I have finally convinced my spouse to house hacking our home so we can come up with founds to invest in multifamily everyone around me think I am crazy but I won't give up until my dreams come true and gain financial freedom.
Fears of working with people I don't know to fund or deals, as I don't have much support for founds in my circle. We finally made the first step and just started going to meet ups so we can network with other investors in our area and learn more about REI as I know very little about it and will like to find a mentor, I am willing to invest my time to help other so I can learn and gain some confidence we have gone to 2 meetings this week one for Renatus which I thought it was our local Realestate investing club but it was not it is really pricey for me at this time and the second was a realtor meet up which we enjoyed.
Hopefully soon we get to meet more people interested in our goals and we can work together.
What is holding us back at this point in time is funding. My wife and I started our company a year ago, and have one rehab/flip deal in the works, but now we are hitting a wall with funding for our second deal. Unfortunately, my wife is getting frustrated. We have the education and backing of systems, so the paralysis is not the issue. Money is.
Why can't you guys partner on the second deal? Sharing the profit is better than no profit at all.
@Frank Patalano the only thing holding me back is capital. I’m working on that piece right now. As soon as I am in a good position to obtain a loan I’m all over it. Hard money lenders usually want about 10% in the bank to make sure I can make the interest payment.
Really? How much are you putting down? I have never had a hard money lender ask how much money I had in the bank. As long as I am getting the money for a down payment somewhere they usually don't care.
Hi Frank, my husband and I are currently buying our 1st rental property. What's holding us back is fear of unknown and whether we will make positive Cash flow or not. Finally, we pulled the trigger and will closed on our 1st rental property in 2 weeks!
Sounds like it is not holding you back anymore. You can't be certain but you probably should know/ done enough analysis to have a pretty good certainty whether you are going to cashflow or not. Even if you don't you are taking action and you will learn from it.
I am new to the Real Estate world and to BP I have been fascinated about REI since I bought my home and started working in the multifamily business with a management company and have been trying to learnthe business listings to BP audiobooks and just started reading books when I get some down time in my schedule.
What was holding me back was lack of support. Now I have finally convinced my spouse to house hacking our home so we can come up with founds to invest in multifamily everyone around me think I am crazy but I won't give up until my dreams come true and gain financial freedom.
Fears of working with people I don't know to fund or deals, as I don't have much support for founds in my circle. We finally made the first step and just started going to meet ups so we can network with other investors in our area and learn more about REI as I know very little about it and will like to find a mentor, I am willing to invest my time to help other so I can learn and gain some confidence we have gone to 2 meetings this week one for Renatus which I thought it was our local Realestate investing club but it was not it is really pricey for me at this time and the second was a realtor meet up which we enjoyed.
Hopefully soon we get to meet more people interested in our goals and we can work together.
I think that you guys are doing great.
Keep looking for a local relatively inexpensive meetup. I have 3 within 90 minutes of me.
Househacking is a great way to get started. Yeah give up on your family and friends. My family doesn't even know that I own RE. Lol.
@Frank Patalano understanding the numbers when it comes to analyzing a BRRRR deal.
So there are plenty of resources on here for that. I'm sure there must be people doing it at your local meetups as well. Keep educating. I like how you have found something to focus on.