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.
@Mark Bommarito Mark, I'm experiencing some of the same challenges. Even as a professional, it requires a lot of time and research. Perhaps there is a way to form a local group to do research together and talk things out. I've thought about this for a while. Let me know what your thoughts are.
Thank you. I was thinking about interest rates and how I doubt I can get more return than 17% and 24% especially as a beginner so it is okay to being safe. Then maybe flipping houses after awhile to get out of student and auto debt. OR would you suggest keeping those and finding a higher interest rate in real estate?
Thank you. I was thinking about interest rates and how I doubt I can get more return than 17% and 24% especially as a beginner so it is okay to being safe. Then maybe flipping houses after awhile to get out of student and auto debt. OR would you suggest keeping those and finding a higher interest rate in real estate?
Full disclosure: I'm totally new to real estate investing, so please don't rely on me completely! I work in Finance and think about the numbers etc a lot and this is the conclusion I came to.
I have auto loans and a little bit in student loan that I could pay off quicker with small extra payments every month, but I am not because they are at very low interest rates - 2-4%. My view is that unless I start running into issues with getting a loan to buy a property, I'll save that money right now for a down payment or flip opportunities.
Makes total sense. I too am from a finance background, and that seems like the best option. I'm just not sure if everybody would agree. I'm sure it has it's pros and cons.
Yes , I haven't which also is holding me back. Fun fact is I am a Finance & Economics graduate and I also looked into being a real estate agent. I took the classes through my University. So real estate as a whole was already interesting to me and I understand the terms and ratios and math behind it. I was thinking about getting my license anyway to reduce my bottom line. So that's holding me back as well as since it has been so little diving specifically into real estate investing. The real estate courses had very little if any to do with investing.
Powerful. The book that I am reading right now, Fake by Robert Kiyosaki talks specifically about college Education vs real world Education.
Get out there and network. Find more teachers and knowledge.
Makes total sense. I too am from a finance background, and that seems like the best option. I'm just not sure if everybody would agree. I'm sure it has it's pros and cons.
Sounds like a good strategy. I don't have any credit card debt but owe Millions to the banks in mortgage debt.
Rental Property Investor · Orange County, CA · Member since 2019 · 151 posts · 92 votes
7y
@Frank Patalano. Over analyzing. Analysis parlysis regarding all things in life that could happen and how they affect real estate (Buy & Hold) investing
@Frank Patalano. Over analyzing. Analysis parlysis regarding all things in life that could happen and how they affect real estate (Buy & Hold) investing
Worrying about every single possible thing that can go wrong is different from taking proper precautions for things that are more likely. Think about it, you buy insurance for a reason.
In regards to analysis paralysis, your first deal will not be a perfect deal. It also will probably not be your best deal ever.
Keep analyzing properties until you feel comfortable doing it. Eventually you will find one that looks better than the rest. If you haven't analyzed 100 deals then you have not practiced enough.
Where to begin? Seems like an endless amount of reasons. Knowledge is perhaps top of the list. As a result, I have spent the last several months trying to educate myself via books, podcasts and forums. I feel like I've learned a great deal but the more I learn, the more I get analysis paralysis.
Then there the fact that I live in South Florida and buying and renting in this area doesn't seem to be an option. I will however have my first rental property in SFla this year. I purchased a townhouse 5 years ago after a divorce. This turned out to be an unintentional BRRR. I will be renting the property out in the next 5 months. Based in comps in the neighborhood, I should cash flow $300/month. I will be managing the property myself. Roof is relatively new, A/C is brand new and appliances are in very good condition. I've set aside 5k reserves to start.
What I really want to do is purchase OOS. However, I have a difficult time finding class B/C neighborhoods that meet the 1% rule and have a growing economy. Since I'm new, I'd like to start small and look for SFH under 150k. Seems like they are unicorns in half decent neighborhoods keeping in mind I'm new at researching. I'll be attending local REIA groups in the next few weeks but I'm not sure how much that will help with OOS investing.
By the end of the year, I've set a goal to find a property for under 150k and invest $1500/month from my paycheck into investing if it all works out. Wish me luck and any advise is more than welcome.
@Frank Patalano For us, it's credit and cash. Even though we own three houses free and clear (two of them rented out), we don't have the credit or cash to put toward a loan to actually buy our first property.
Rental Property Investor · Neenah, WI · Member since 2019 · 39 posts · 10 votes
7y
@Frank Patalano
I went to different classes about Real Estate but I still not know how I should start. I’m looking for some quick cash then move to flipping houses or buy and rent them. How I can start? What I have to do for get my first wholesale done?
Where to begin? Seems like an endless amount of reasons. Knowledge is perhaps top of the list. As a result, I have spent the last several months trying to educate myself via books, podcasts and forums. I feel like I've learned a great deal but the more I learn, the more I get analysis paralysis.
Then there the fact that I live in South Florida and buying and renting in this area doesn't seem to be an option. I will however have my first rental property in SFla this year. I purchased a townhouse 5 years ago after a divorce. This turned out to be an unintentional BRRR. I will be renting the property out in the next 5 months. Based in comps in the neighborhood, I should cash flow $300/month. I will be managing the property myself. Roof is relatively new, A/C is brand new and appliances are in very good condition. I've set aside 5k reserves to start.
What I really want to do is purchase OOS. However, I have a difficult time finding class B/C neighborhoods that meet the 1% rule and have a growing economy. Since I'm new, I'd like to start small and look for SFH under 150k. Seems like they are unicorns in half decent neighborhoods keeping in mind I'm new at researching. I'll be attending local REIA groups in the next few weeks but I'm not sure how much that will help with OOS investing.
By the end of the year, I've set a goal to find a property for under 150k and invest $1500/month from my paycheck into investing if it all works out. Wish me luck and any advise is more than welcome.
I just looked up a few places in Texas. You can easily buy SFH for under $150K. I love San Antonio. Seemed like decent neighborhoods at first glance. I agree that you are probably over analyzing. Keep running numbers until you get more comfortable.
Don't expect a home run on the first or second time at the plate. Get a decent deal. Take action. You will learn so much more that way.
@Frank Patalano For us, it's credit and cash. Even though we own three houses free and clear (two of them rented out), we don't have the credit or cash to put toward a loan to actually buy our first property.
I'm confused. You own 3 houses free and clear but you don't have money to get a loan on your "first" Property??????????????????????
I went to different classes about Real Estate but I still not know how I should start. I’m looking for some quick cash then move to flipping houses or buy and rent them. How I can start? What I have to do for get my first wholesale done?
Start by Networking and knocking on door if you have to. Send out mailers. Wholesales are possible but hard work. You get a property for under what it is worth because it is distress, then you sell the contract to someone else.
No. We inherited the houses, and we need to borrow against them or pull some of the equity out - none of which we qualify for, credit wise...
If you really want money to do a deal it sounds like you only have two major choices without good credit. One you can sell one of the houses. Or two you could get a hard money loan and use one of the houses as collateral.
You can still open a brokerage account (with your parents) and own REITs. You can also crowdfund real estate. If you can find a family friend who does real estate you can still work for them. Mail letters, office tasks, review deals. You can still go to seminars and meetings. My daughter is 14. She has her own stock account and we've been two more than one annual meeting for a company. Plus don't let age be an excuse in regards to you educating yourself. #Hustle