Providence, RI · Member since 2018 · 29 posts · 409 votes
7y
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.
Investor · Indianapolis, IN · Member since 2017 · 45 posts · 6 votes
7y
@Frank Patalano for me, i would say pulling the trigger and doing the first deal because i dont know how all the pieces would connect: financing, rehabbing, entity vs personal, etc. i think i know what to do, but scared to take the plunge myself.
@Frank Patalano What used to hold me back was overthinking and over analyzing all of the “What Ifs”. I’m not embarrassed to say that I was also worried about other people (family and friends) telling me that I was wrong to put my money and efforts into real estate because things always go wrong and it’s “too risky in their opinion”. I no longer let any of those thoughts or emotions control my decisions. Now, I seek advice from seasoned RE professionals within my network, make calculated decisions, and pull the trigger quickly when I see an opportunity. No room for tiptoeing and being indecisive in RE.
Ya. The what ifs hold a lot of people back. Most of them are unfounded.
I’d say financing. I don’t have a large down payment, and I live on the west coast. 10% down on a modest $250k property is going to be $25k, excluding closing costs. Also, the market in my area is super hot and people are overpaying like crazy, so I don’t think negotiating seller financing would get me a good deal. I’m not quite sure how to overcome that obstacle. I’d love anyone’s advice/experience on how they got around this one.
You could start out investing with some crowdfunding sites based on the amount of money that you have available or REITs. Or a better idea is to partner. 2 heads are better than one. Share the first deal.
At the moment by obstacle is my age; I'm 16 years old and therefore I do not have capital to play with. Another thing is that I currently live in europe, and from what I've heard, there is alot red tape involved with real estate investing in Europe.
Regards
Your story sounds exciting.
I don't know of any great real estate investors who have come out of Europe lately. Sounds like a future book/seminar. I love paying attention to some of the Australian investors. you could be investing right now with REITs and maybe crowdfunding. I'm not a hundred percent sure if the crowdfunding is legal for you so you might have to look into it. To be honest with you look into what age you need to be to hold real estate. In the United States is commonly 18 but I don't know about your country. On the flip side you could still be networking now. You could also be doing office work for a real estate company in order to learn part of the trade. Keep me in the loop. I'm planning a trip to Europe next year. Perhaps we can meet up.
Credit is not something that's impossible to overcome. Three ways around it. 1 most hard money lenders don't care about credit but you need to have 25% down. 2 seller financing if it's something wrong with the property, such as it needs work some sellers might be willing to lend you on it themselves. 3 and your best chance is to find a partner. You put in the time and they put in the credit and money. Ooh bonus one. You can wholesale your first deal which takes very little money but a lot of time and poking around.
@Frank Patalano for me, i would say pulling the trigger and doing the first deal because i dont know how all the pieces would connect: financing, rehabbing, entity vs personal, etc. i think i know what to do, but scared to take the plunge myself.
If you need a place to stay, start out with a house hack. Besides that you might be a good candidate for a mentor but that costs money. At this point I would keep educating and start networking. You don't need to do it yourself , investing is a team sport. Find a partner
Finding reliable & dependable contractors. I find this task a lot more challenging than expected.
Hell yeah. That is one of the hardest things to do. I get most of my contractor's for networking. If you don't have a good networking system in place, I've had friends who have hung out at Home Depot early in the morning 2 look for people. The earlier the better. That is when of the most productive contractors are out.
Absolutely, that's great advice! I'll look into it.
The office work idea sounds great and I must say that its a very good idea however I think it will be hard for me to get a position somewhere as people tend to underestimate teenagers when it comes to money, work and responsibility. My limited experience is also a factor.
I'm glad to hear that you're going to visit Europe, and of course a quick coffee would surely be a very good learning experience, especially for me!
Rental Property Investor · Member since 2018 · 5 posts · 0 votes
7y
@Frank Patalano
Down payment. I see a nice deal for a rental, and I want to use a hard money lender to purchase, but he would like to see a 10% down payment. I want this business to be self sufficient and I do not want use my own money.
I found BP a few months back. WOW! Thank you to all who make this such a great place!
We have owned several homes over the years all of them being foreclosures or REO's. The idea was to house hack, which we kind of failed at. We didn't sacrifice the time/energy/money needed to finish repairs before reselling do to relocating... (They would be seriously cash flowing now if we had kept them!!!) I sure wish we had the knowledge we do now, then!!!
So we currently have a house in NM that we did a 203 K on. It is building equity but not much else (rented) We also have a property that is cash flowing pretty good in AK ( helping to pay for our daughter's college) We are trying to work on our landlord education and such.
For me I think that there are so many variables (and fear) in our lives at the moment (one of which is we are based overseas for another year probably) plus lack of experience and I feel somewhat overwhelmed on what is the correct plan of action. So at this point I will keep reading, trying to master analyzing deals, work on saving and paying off debt. Get our funds ready so when I do see a deal we can jump.
I am very grateful to all who have gone before and share their stories. Thank you.
Baltimore, MD · Member since 2014 · 4 posts · 1 vote
7y
@Frank Patalano
Change in job that pays more and paying down credit card balances. I have good credit and some cash. But looking for the right deal once I’ve stabilized in a few months.
Absolutely, that's great advice! I'll look into it.
The office work idea sounds great and I must say that its a very good idea however I think it will be hard for me to get a position somewhere as people tend to underestimate teenagers when it comes to money, work and responsibility. My limited experience is also a factor.
I'm glad to hear that you're going to visit Europe, and of course a quick coffee would surely be a very good learning experience, especially for me!
Thanks for your reply!
In regards to the office work. Try to find a friend of the family or a relative. If you are networking eventually someone will take a chance on you especially if you are "interning" or even working for free.
Down payment. I see a nice deal for a rental, and I want to use a hard money lender to purchase, but he would like to see a 10% down payment. I want this business to be self sufficient and I do not want use my own money.
Please help.
You could try another lender but most are going to want some skin in the game.
You could find a family member who will lend you the 10%.
You could partner with someone on the first deal.
You do want to be self sufficient but can't expect it prior to the first deal.
I found BP a few months back. WOW! Thank you to all who make this such a great place!
We have owned several homes over the years all of them being foreclosures or REO's. The idea was to house hack, which we kind of failed at. We didn't sacrifice the time/energy/money needed to finish repairs before reselling do to relocating... (They would be seriously cash flowing now if we had kept them!!!) I sure wish we had the knowledge we do now, then!!!
So we currently have a house in NM that we did a 203 K on. It is building equity but not much else (rented) We also have a property that is cash flowing pretty good in AK ( helping to pay for our daughter's college) We are trying to work on our landlord education and such.
For me I think that there are so many variables (and fear) in our lives at the moment (one of which is we are based overseas for another year probably) plus lack of experience and I feel somewhat overwhelmed on what is the correct plan of action. So at this point I will keep reading, trying to master analyzing deals, work on saving and paying off debt. Get our funds ready so when I do see a deal we can jump.
I am very grateful to all who have gone before and share their stories. Thank you.
Julie you have so much more experience then most people on this post.
It basically sounds like you need to get organized. Keep educating and networking but focus on one aspect of real estate.
Change in job that pays more and paying down credit card balances. I have good credit and some cash. But looking for the right deal once I’ve stabilized in a few months.
Sounds like you're not ready, but might be soon.
Just make some strong goals that you are going to stick to.
Focus on doing something real estate related everyday.
Hey Frank - my question is the legal side. Do I need to create an LLC? Can I purchase property as an LLC? I have experience, and cash but am hesitant to pull the trigger yet because I think i want the tax and liability protection. Thoughts on how to start this?
Hey Frank - my question is the legal side. Do I need to create an LLC? Can I purchase property as an LLC? I have experience, and cash but am hesitant to pull the trigger yet because I think i want the tax and liability protection. Thoughts on how to start this?
If you don't have a lot of assets you don't have to start with one. I do recommend one. You can purchase properties as an LLC but if you want a loan you will need to get commercial loans.
@Frank Patalano I’m still in high school and want to close a deal but it’s tough only focusing on it during the weekends.
Ok. It's tough. A little pressure is good for you. It will help you grow.
Seriously. I teach full time at a school. I also have a part time job. And I also have more properties than fingers. Also 3 kids. Etc. You will squeeze into life whatever you truly want to get accomplished.
@Frank Patalano. It was money for me and mystery of renovation costs.
Sounds like you need a partner. Maybe someone was just a little more experience than you. If you're willing to put in the work and time, they can put up the money and experience.
Every investor needs to have money or time or experience. If you don't have any of those three you need to figure out which one your strength will be.
I lived in Houston for over 30 years before moving to land we inherited a few years ago in South Texas. For $150k, you can get a decent SFR in the NW Houston or Cypress. Look around Hwy 6 out to Fry Rd and close to 529. The North side of 529 is a little nicer than the South side. All if it is in Cy-Fair ISD, one if the better school districts in the Houston area, and crime is relatively low. That area is on fire with growth right now, which is one of the reasons we left, it was getting too crowded for me.
Flipper/Rehabber · Las Vegas, NV · Member since 2019 · 47 posts · 7 votes
7y
@Frank Patalano
Hey Frank, I live in Las Vegas and I just started doing wholesale deals or at least trying to get my first deal done. I have had a couple of appointments and tbh I don't think I'm that bad when it comes to communicating with the sellers, I mean I know the lingo and how to do comps, use my title company to get prospects through NOD/NOS leads but I really think that I need a mentor/coach through this. I truly believe that I can become very successful at this but the lack of true mentors that I can go to and get advice from has hindered me from being successful. What do you think I could do to overcome this? Thanks