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 financing....i dont have good credit due to poor choices in my past but i do not yet own a home. I am looking to do a house hack with a multi family unit. So i am looking into and srill always learning about investing as well as financing. I dont really know much yet about the financing or if i can even get it.
I'd definitely say information and knowledge of not being aware or informed of the options that are available. If i'm only aware of one way to do something and are fearful that i'm not qualified to do so, that would stop you in your tracks because there are no other options, right? a lot of times professional don't like to deal with unprepared clients, I'd like for someone to say "no that wont work for you but here is what will and if not today here is how you can prepared to be in that position"
No it shouldn't stop you in your tracks. I still learn new strategies 10 years in. You need to find professionals who are there to help you not just to collect a check.
@Frank Patalano separating from the military in August, waiting until I get a primary stream of income before I use VA loan to buy a du/tri/quadplex to house hack for my first investment!
As a firefighter I鈥檒l have ample time to do many renovations myself and be able to manage the property. This will allow me to understand the process much better. After day 366 I will refinance and repeat the process.
As long as you have a plan and have goals go for it. Keep working at it.
@Frank Patalano hello, I鈥檓 a new member and I wouldn鈥檛 give myself the title of an investor yet but I鈥檓 trying to bring myself to purchase my first property. Currently I鈥檓 in the information phase, I鈥檓 grabbing books and looking at video trying to understand the lingo. I鈥檝e set up a meeting on the first weekend in May with a possible mentor who invests in the area... honestly, for me at least, I know I鈥檓 getting in a new area of investing and I simply don鈥檛 know where to start. I know I could probably borrow money from institutions with little to no problem because I spent the last couple of years getting my credit score to a respectable level.... I just don鈥檛 know what constitutes a deal to be honest. After I finish reading Rich Dad Poor Dad I have The book on Rental Property Investing ready to be read.. I guess I鈥檓 in the information gathering phase.. it鈥檚 rough for me because I have no one as far as family or friends to ask these questions with. I promised myself I鈥檒l be the first individual from my family to obtain wealth, so I just want to make sure my next move is the right move. I鈥檇 hate to jump in the deep end only to figure out I left my breathing apparatus at home.
So besides a mentor, join your local REIA group. My local one is awesome. Tons of golden nuggets at every meeting. Keep learning and building those skills. Set goals to get stuff done everyday.
@Frank Patalano we are stocking our reserves at this moment to fill a 2-3 month for each investment. We recently had a cross country relocation that threw us off track. Looking for a mastermind in the area and can not find one, if we don't find one we will set one up ourselves but are not exactly certain where to start on this as we want to surround ourselves with like minded people. While we set the reserves back into place.. What are your initial thoughts of this strategy?
For me, it is a result of analysis fatigue and not having a good location to scour for opportunities worth reviewing.
Understandable. San Diego is one of the worst markets in the country.
Your 2 best choices are setting networking goals and looking at other markets.
I do not know what your definition of worst or what your source is, but San Diego is typically listed as one of the 3 best ROI large cities for this century.
Look up the average SFR price 5 years ago and compare it to the average price today. Do similar for the average SFR rent in the last 5 years. San Diego RE has historically outstanding appreciation and cash flow for the long term buy n hold. For our San Diego rentals my cash flow is outstanding and I try to keep the LTV high.
I know of no San Diego RE investor who purchased a San Diego buy n hold 5 years ago that has not done outstanding.
For me, it is a result of analysis fatigue and not having a good location to scour for opportunities worth reviewing.
Understandable. San Diego is one of the worst markets in the country.
Your 2 best choices are setting networking goals and looking at other markets.
I do not know what your definition of worst or what your source is, but San Diego is typically listed as one of the 3 best ROI large cities for this century.
Look up the average SFR price 5 years ago and compare it to the average price today. Do similar for the average SFR rent in the last 5 years. San Diego RE has historically outstanding appreciation and cash flow for the long term buy n hold. For our San Diego rentals my cash flow is outstanding and I try to keep the LTV high.
I know of no San Diego RE investor who purchased a San Diego buy n hold 5 years ago that has not done outstanding.
I'm worried about the growth prospects from now looking to the future. Perhaps I am mistaken but I've heard from so many investors who are having a hard time getting started in multifamily buy and hold rentals in that market.
@Frank Patalano financing....i dont have good credit due to poor choices in my past but i do not yet own a home. I am looking to do a house hack with a multi family unit. So i am looking into and srill always learning about investing as well as financing. I dont really know much yet about the financing or if i can even get it.
Instead of house hacking first, maybe you should consider a partner who has money and you put up the time.
@Frank Patalano we are stocking our reserves at this moment to fill a 2-3 month for each investment. We recently had a cross country relocation that threw us off track. Looking for a mastermind in the area and can not find one, if we don't find one we will set one up ourselves but are not exactly certain where to start on this as we want to surround ourselves with like minded people. While we set the reserves back into place.. What are your initial thoughts of this strategy?
You can't expect to set up a mastermind too quickly. Find a local REIA first. You will find mastermind partners there within 2 months.
Morning Frank! As a new BP member and investor. The one thing holding my wife and I back is evaluating rehab costs correctly when analyzing a deal.
We are at a place where we can jump, but insecure on ability to evaluate the rehab costs on SF or MF homes to move on one.
Any advice? Anyone in the PHX area?
Find a local contractor who you can inexpensively walk through properties with. They usually will be happy to give you quotes. Partner with him on the first deal if you want. Then you will definitely get honest prices.
I鈥檝e been a realtor for almost a year and a half but never really got into investing until recently so the only thing that鈥檚 holding me back is learning everything is can. Once I learn as much as possible, I鈥檒l probably go forward. Money as well. I feel like I should have some saved up to start.
I鈥檝e been a realtor for almost a year and a half but never really got into investing until recently so the only thing that鈥檚 holding me back is learning everything is can. Once I learn as much as possible, I鈥檒l probably go forward. Money as well. I feel like I should have some saved up to start.
Money
Experience
Knowledge
Those are the key 3. You are building knowledge right now and a little bit of money. Get some goals and stay motivated.
For me, it is a result of analysis fatigue and not having a good location to scour for opportunities worth reviewing.
Understandable. San Diego is one of the worst markets in the country.
Your 2 best choices are setting networking goals and looking at other markets.
I do not know what your definition of worst or what your source is, but San Diego is typically listed as one of the 3 best ROI large cities for this century.
Look up the average SFR price 5 years ago and compare it to the average price today. Do similar for the average SFR rent in the last 5 years. San Diego RE has historically outstanding appreciation and cash flow for the long term buy n hold. For our San Diego rentals my cash flow is outstanding and I try to keep the LTV high.
I know of no San Diego RE investor who purchased a San Diego buy n hold 5 years ago that has not done outstanding.
I'm worried about the growth prospects from now looking to the future. Perhaps I am mistaken but I've heard from so many investors who are having a hard time getting started in multifamily buy and hold rentals in that market.
Price to enter is high and the competition is high. This means that for most new investors it is a tough market to enter. It is also true that if the appreciation (market and rent) were to end, the return would suck.
The appreciation has far out paced inflation for over 50 years and there is a housing shortage so it seems like at a minimum rent appreciation seems to be a good bet in the near term (<5 years).
San Diego has been a great place to invest for ROI for at least 50 years. Without a crystal ball no one will know if that continues to be the case but it has a great track record and many indicators indicate it is likely to continue to produce good ROI. This historically outstanding ROI is why the competition is so high and one of the reasons the price to invest is high. That happens when something has produced a good return for many years.
However, to imply that is has been a poor buy n hold investment location is factually incorrect as it has produced near the top return in the country for this century. Question is: what will produce the best return in the next 10 to 20 years? My bet is that it will not be one of the low/no appreciation, higher cash flow Midwest markets. I also lean to it being a location that has produced outstanding historically appreciation but possibly not in as tenant friendly state as CA, WA, OR (so potentially none of the West Coast). I have a fear of statewide rent control potentially impacting the long term ROI in those states.
For me, it is a result of analysis fatigue and not having a good location to scour for opportunities worth reviewing.
Understandable. San Diego is one of the worst markets in the country.
Your 2 best choices are setting networking goals and looking at other markets.
I do not know what your definition of worst or what your source is, but San Diego is typically listed as one of the 3 best ROI large cities for this century.
Look up the average SFR price 5 years ago and compare it to the average price today. Do similar for the average SFR rent in the last 5 years. San Diego RE has historically outstanding appreciation and cash flow for the long term buy n hold. For our San Diego rentals my cash flow is outstanding and I try to keep the LTV high.
I know of no San Diego RE investor who purchased a San Diego buy n hold 5 years ago that has not done outstanding.
I'm worried about the growth prospects from now looking to the future. Perhaps I am mistaken but I've heard from so many investors who are having a hard time getting started in multifamily buy and hold rentals in that market.
Price to enter is high and the competition is high. This means that for most new investors it is a tough market to enter. It is also true that if the appreciation (market and rent) were to end, the return would suck.
The appreciation has far out paced inflation for over 50 years and there is a housing shortage so it seems like at a minimum rent appreciation seems to be a good bet in the near term (<5 years).
San Diego has been a great place to invest for ROI for at least 50 years. Without a crystal ball no one will know if that continues to be the case but it has a great track record and many indicators indicate it is likely to continue to produce good ROI. This historically outstanding ROI is why the competition is so high and one of the reasons the price to invest is high. That happens when something has produced a good return for many years.
However, to imply that is has been a poor buy n hold investment location is factually incorrect as it has produced near the top return in the country for this century. Question is: what will produce the best return in the next 10 to 20 years? My bet is that it will not be one of the low/no appreciation, higher cash flow Midwest markets. I also lean to it being a location that has produced outstanding historically appreciation but possibly not in as tenant friendly state as CA, WA, OR (so potentially none of the West Coast). I have a fear of statewide rent control potentially impacting the long term ROI in those states.
I see this has struck a chord with you.
Let me just state that I have never invested in San Diego and I get pissed myself whenever I hear someone calling my local market one of the worst markets in the country.
This is in the new investor forum and the original question was what's holding you back. You must agree that it's pretty tough for a new investor to get started in San Diego. Whether you agree with me or not I guess we'll just have to agree to disagree.
I'm working a full time job but am committed to get this off the ground. Just feeling overwhelmed with all the info out there.
I would try to commit yourself to certain goals especially in education. I am still working a part-time job and a full-time job outside of all of my real estate Investments. See if you can get a networking goal to network at least once a week as well. You are never going to learn everything that there is to know about real estate.
@Frank Patalano, For one thing, my wife is not very supportive of me getting into real estate investing. But mostly, trying to get my finances right. Currently about 60k in debt (a little credit card debt, mostly car notes) with not much saved up. I鈥檓 looking at a 20k bonus later this year (which my wife wants us to pay down debt with) but I think I鈥檓 going to use that to get started. It鈥檚 just going to take a lot of convincing. I鈥檓 really hoping my first deal doesn鈥檛 flop so that I can get a little more buy-in from her. I want to start with some flips to generate capital and then move into brrrr.