So what's holding you back?
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.
So I'll ask here. What is holding you back?
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.
I thought hard money loans were best used in flipping scenarios - definitely not for buy and holds. Is that true?
Well they are definitely better for flipping but you told me you had no other choice.
Find private money. We have people lending us private money.
If conventional money is between 4 and 6%, private money would be between 7 and 11%, hard money would be 12% or more. Still cheaper than a credit card.
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.
Good luck! sorry I don't have any advise.
You're right. We just need to jump in and do it.
Got another one! We are looking for a new home and will be renting out the current one so personal home search is taking some time. Plus, if I get a mortgage for a rental how much will that hurt our options for out personal home?
Got another one! We are looking for a new home and will be renting out the current one so personal home search is taking some time. Plus, if I get a mortgage for a rental how much will that hurt our options for out personal home?
It will hurt your options depending on your income. If your debt to income ratio gets too high banks will consider you a higher risk. Make sure that the bank is considering the rent as part of your income. Many banks count 75% of the income.
So many things. I'm still learning; not having much money; afraid of being turned down; making a wrong decision; not being able to find tenants; not being able to fix problems; problems that could turn out really expensive; not being able to handle a tenant who might turn out bad; just imagining what else could go wrong.
Realistically I know these are problems that have solutions but yes it's scary to be new.
Thank you!!!
Got another one! We are looking for a new home and will be renting out the current one so personal home search is taking some time. Plus, if I get a mortgage for a rental how much will that hurt our options for out personal home?
It will hurt your options depending on your income. If your debt to income ratio gets too high banks will consider you a higher risk. Make sure that the bank is considering the rent as part of your income. Many banks count 75% of the income.
Thank you very much, I needed to know that!
Well, I guess this is a good a place as any to introduce myself and let people get to know me and my situation. I've gotten email from BP.com for maybe 2 years now, and read some articles.
My name is Chris , I live in San Pedro CA 90732. I am 40 yrs old, Full-Time employed Aerospace CMM Programmer ( Thank you, but...yuk...trying to escape the death grip of "job" and "paycheck") salary over $100k. In a relationship for 1 yr with a beautiful gifted psychic woman.
I've had my real estate and realtor license and am with KW for about a year and a half but have done no deals ( yes I know, no excuses but I do work full time and have a relationship).
My goal this year is to buy,sell, and own a property ( to live in, multi-unit even better).
Bear with me me as I get into my situation, I'll try to be as brief as possible:
Moved from east coast (CT/MA) to Ca in Sep 2014 (cashed out 401k). Was renting a beautiful condo in Corona, CA and even thought I was employed, it was certainly at a high point in my life ( obviously not from a very wealthy background, etc.). I got hustled into a Wyndham timeshare in 2015, and its ruined my life. I'm legally out of it, however it still shows on my credit as repossession, It's partly off of 2 reports, and Lexington law is working to remove all traces. I also hada breakup with a girlfriend of over 1 yr, which I let her have the partment and all my furniture, leaving me with very few possessions. I managed to find a house rental from a coworker.
I just did Tony Robbins UPW in LA (15,000 people - life changing), and signed up for Mastery University, which put me back 10k to about 25k in debt or so.
I have studied money and finances and have attended all sorts of workshops etc. I am now constantly reading and listening to wealth material to drastically change my mindset. I've been to Than Merrill's flipping/wholesaling workshop.
I'm in a 3BR condo/townhome rental. I've been here for a year now since taking my newest aerospace adventure in Torrance, CA. I desperately need my own place for myself and girlfriend and her 5 yr old son. I have very little savings (3k). I also have no family on the west coast (and only a few I know of on the east coast) and my girlfriend is my only real friend other than co-workers.
I know I'd like to get into a house hack, to bring in the passive income as well, the trouble is the prices in Cali with my income/savings seems challenging. I do see myself as a wealthy real estate mogul , and others said they see me as becoming one also. I'm also aware that the wealthy write everything off ( own nothing/control everything), and use every code to shelter all tax and expenses, etc.
I'm here for new ideas, help and guidance. I have never in my life (correction for about 3 months after cashing out my 401k, was the only time I didn't really worry about money, and felt so exhilarating) . Obviously my goal now is to be financially free and live a life by design, etc.
If I had a few months reserves saved, I would quit my Aerospace job and give Real Estate full time attention.
Thank you in advance, it means a lot.
Was going to share my spiritual healing website, but don't want to violate any ad rules.
Thank you everyone at BP !
@Frank Patalano @Jeremiah Mckenna I want to thank you both for taking the time to reply to my comment. I was really considering backing up from investing for a while. Your comments were reassuring. I will keep moving forward. Thank you again.
So many things. I'm still learning; not having much money; afraid of being turned down; making a wrong decision; not being able to find tenants; not being able to fix problems; problems that could turn out really expensive; not being able to handle a tenant who might turn out bad; just imagining what else could go wrong.
Realistically I know these are problems that have solutions but yes it's scary to be new.
You need a mentor/partner. Too many worries to be able to buy anything now. You need to separate things that have little chance of happening and things that are likely to happen.
Well, I guess this is a good a place as any to introduce myself and let people get to know me and my situation. I've gotten email from BP.com for maybe 2 years now, and read some articles.
My name is Chris , I live in San Pedro CA 90732. I am 40 yrs old, Full-Time employed Aerospace CMM Programmer ( Thank you, but...yuk...trying to escape the death grip of "job" and "paycheck") salary over $100k. In a relationship for 1 yr with a beautiful gifted psychic woman.
I've had my real estate and realtor license and am with KW for about a year and a half but have done no deals ( yes I know, no excuses but I do work full time and have a relationship).
My goal this year is to buy,sell, and own a property ( to live in, multi-unit even better).
Bear with me me as I get into my situation, I'll try to be as brief as possible:
Moved from east coast (CT/MA) to Ca in Sep 2014 (cashed out 401k). Was renting a beautiful condo in Corona, CA and even thought I was employed, it was certainly at a high point in my life ( obviously not from a very wealthy background, etc.). I got hustled into a Wyndham timeshare in 2015, and its ruined my life. I'm legally out of it, however it still shows on my credit as repossession, It's partly off of 2 reports, and Lexington law is working to remove all traces. I also hada breakup with a girlfriend of over 1 yr, which I let her have the partment and all my furniture, leaving me with very few possessions. I managed to find a house rental from a coworker.
I just did Tony Robbins UPW in LA (15,000 people - life changing), and signed up for Mastery University, which put me back 10k to about 25k in debt or so.
I have studied money and finances and have attended all sorts of workshops etc. I am now constantly reading and listening to wealth material to drastically change my mindset. I've been to Than Merrill's flipping/wholesaling workshop.
I'm in a 3BR condo/townhome rental. I've been here for a year now since taking my newest aerospace adventure in Torrance, CA. I desperately need my own place for myself and girlfriend and her 5 yr old son. I have very little savings (3k). I also have no family on the west coast (and only a few I know of on the east coast) and my girlfriend is my only real friend other than co-workers.
I know I'd like to get into a house hack, to bring in the passive income as well, the trouble is the prices in Cali with my income/savings seems challenging. I do see myself as a wealthy real estate mogul , and others said they see me as becoming one also. I'm also aware that the wealthy write everything off ( own nothing/control everything), and use every code to shelter all tax and expenses, etc.
I'm here for new ideas, help and guidance. I have never in my life (correction for about 3 months after cashing out my 401k, was the only time I didn't really worry about money, and felt so exhilarating) . Obviously my goal now is to be financially free and live a life by design, etc.
If I had a few months reserves saved, I would quit my Aerospace job and give Real Estate full time attention.
Thank you in advance, it means a lot.
Was going to share my spiritual healing website, but don't want to violate any ad rules.
Thank you everyone at BP !
Hi Chris. PM me the spiritual healing site.
Welcome to your new life as a real estate investor. I see a couple different strategies for you.
1. Is there a way you can take your current skills and be in FL or TX? Both places have aerospace but the cost of living is so much cheaper.
2. Commit, sacrifice, and get a deal or 2 going in Cali. I work a full time job, a part time job, a real estate business, a podcast, and I have 3 kids so I know how you feel.
3. Can you use your skills at a college level and teach? Maybe find a college in a less expensive MSA that needs your skills?
I really think that you need to get out of Cali. The cost of living must be killing you. I was talking to an investor yesterday buying a mid west single family for $45K cash redone. and there are cheaper things in there market. Another option is to come home to New England but Boston is getting pretty hot too.
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Did you try to go to the event with someone or by yourself? If DG knew he might have let you in. Contact him on Social Media so that he has a heads up. Are your parents on board with any of this? It's easier if they are.
Read Rich Dad, Poor Dad.
See if your local REIA will let you join. My kids have gone to my REIA a couple of times. Like I said if your parents are on board it will be easier.
Keep networking.
Set up a youth finance group. Contact speakers to talk at a meeting that you set up.
Start branding yourself on Social Media.
Last year my daughter and I met with the CEO of one of our local credit unions. He sat with us and she asked questions for 45 minutes.
Keep in touch.
Thank you for the quick response.
1.) I actually just got flown out to Texas by a buddy I used to work with on the East Coast who is now a Chief Operating Officer of a fast growing aerospace company in TX. He wasn't aware what I made in CA. Didn't work out. I did see the amount of nice house and land it possible to get in TX for a fraction of the price. I am always exploring options. My girlfriend has family in Fl,I'll look there. Sure, I'll miss CA sometimes.
2.) I may do this soon. I'm doing an open house with my mentor this weekend. Wow- kudos to you, that is a lot of work! That is amazing. Congratulations.
3) I have been thinking about being my own consultant, just had another job offer yesterday, but can't pay what I'm looking for. I've even had a Vietnamese co-worker who doesn't speak much English mention a business venture together, teaching what I do. ( Coordinate Measuring machine programmer - Zeiss Calypso and gears.)
Unless I become very wealthy fast, the plan is to move to a tropical place for a while. I get home back to MA/CT once every few years, was there last year, nice to visit, but I've had my share of cold weather, and prefer brighter days.
I will send the link to my spiritual healing site. Thank you for the help and support.
P.S. I also am a beginner forex trader on the side....
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Did you try to go to the event with someone or by yourself? If DG knew he might have let you in. Contact him on Social Media so that he has a heads up. Are your parents on board with any of this? It's easier if they are.
Read Rich Dad, Poor Dad.
See if your local REIA will let you join. My kids have gone to my REIA a couple of times. Like I said if your parents are on board it will be easier.
Keep networking.
Set up a youth finance group. Contact speakers to talk at a meeting that you set up.
Start branding yourself on Social Media.
Last year my daughter and I met with the CEO of one of our local credit unions. He sat with us and she asked questions for 45 minutes.
Keep in touch.
Haha, I own Rich Dad Poor Dad in the process of reading it. My parents were on board with the idea and we're going to attend with me. I will definitely keep in touch... Seems like you have a lot of knowledge to spread.
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Did you try to go to the event with someone or by yourself? If DG knew he might have let you in. Contact him on Social Media so that he has a heads up. Are your parents on board with any of this? It's easier if they are.
Read Rich Dad, Poor Dad.
See if your local REIA will let you join. My kids have gone to my REIA a couple of times. Like I said if your parents are on board it will be easier.
Keep networking.
Set up a youth finance group. Contact speakers to talk at a meeting that you set up.
Start branding yourself on Social Media.
Last year my daughter and I met with the CEO of one of our local credit unions. He sat with us and she asked questions for 45 minutes.
Keep in touch.
Haha, I own Rich Dad Poor Dad in the process of reading it. My parents were on board with the idea and we're going to attend with me. I will definitely keep in touch... Seems like you have a lot of knowledge to spread.
When you finish it, I have more recommendations.
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Did you try to go to the event with someone or by yourself? If DG knew he might have let you in. Contact him on Social Media so that he has a heads up. Are your parents on board with any of this? It's easier if they are.
Read Rich Dad, Poor Dad.
See if your local REIA will let you join. My kids have gone to my REIA a couple of times. Like I said if your parents are on board it will be easier.
Keep networking.
Set up a youth finance group. Contact speakers to talk at a meeting that you set up.
Start branding yourself on Social Media.
Last year my daughter and I met with the CEO of one of our local credit unions. He sat with us and she asked questions for 45 minutes.
Keep in touch.
Haha, I own Rich Dad Poor Dad in the process of reading it. My parents were on board with the idea and we're going to attend with me. I will definitely keep in touch... Seems like you have a lot of knowledge to spread.
Also when you finish the book see if there is a CashFlow101 game meetup group in your area. I would be pissed and shocked if they don't take you under their wing. The last time I had a Cashflow night my daughter was teaching people 3 times her age the rules of the game.
Being 14 :(
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
Thank you, I was planning to go to ************* meeting but I was denied because I wasn't over 18, I have opened a paper trading account, which is some progress, I really appreciate your advice. I'd like to hear more things your daughter was able to do under 18, so I can attempt them.
Did you try to go to the event with someone or by yourself? If DG knew he might have let you in. Contact him on Social Media so that he has a heads up. Are your parents on board with any of this? It's easier if they are.
Read Rich Dad, Poor Dad.
See if your local REIA will let you join. My kids have gone to my REIA a couple of times. Like I said if your parents are on board it will be easier.
Keep networking.
Set up a youth finance group. Contact speakers to talk at a meeting that you set up.
Start branding yourself on Social Media.
Last year my daughter and I met with the CEO of one of our local credit unions. He sat with us and she asked questions for 45 minutes.
Keep in touch.
Haha, I own Rich Dad Poor Dad in the process of reading it. My parents were on board with the idea and we're going to attend with me. I will definitely keep in touch... Seems like you have a lot of knowledge to spread.
Also when you finish the book see if there is a CashFlow101 game meetup group in your area. I would be pissed and shocked if they don't take you under their wing. The last time I had a Cashflow night my daughter was teaching people 3 times her age the rules of the game.
I was thinking of attending this seminar in Roseville, is this the CashFlow101 meeting? if not where can I find there locations? (https://www.richdadfreeseminar.com/Sacramento/100.0000/Index.dtm?mid=10617408&clickid=go_1777988349_69034808877_343375422171_kwd-297113265273_c_&gclid=Cj0KCQjwkoDmBRCcARIsAG3xzl_bG8cgTIXJYML2knA_fqpYiG6FkaL6a20AZmp0hRIiqiu9PxOH6xUaAgKWEALw_wcB&otsid=16946)
No. That will be like the DG event. You could contact them ahead of time to check about your age. Make sure that you say that you will be with someone over 18.
What I am talking about is like something in Sacramento.
https://www.meetup.com/cashflowgamesacramento/events/mxwnqqyzgbjc/
But since they serve alcohol you might not be able to go.
Look into it though.
Maybe you can set up your own event at a local pizza place or something.
No. That will be like the DG event. You could contact them ahead of time to check about your age. Make sure that you say that you will be with someone over 18.
What I am talking about is like something in Sacramento.
https://www.meetup.com/cashflowgamesacramento/events/mxwnqqyzgbjc/
But since they serve alcohol you might not be able to go.
Look into it though.
Maybe you can set up your own event at a local pizza place or something.
It says it's Family Friendly on the website, I signed up and my membership is pending.
@Frank Patalano Funding and a solid system in place to run my business. I’ve gotten approved for funding in the past and never landed a deal, now I will have to begin again. I’m focusing on wholesales for now, but would like resources and a “guide” that work.
@Frank Patalano Funding and a solid system in place to run my business. I’ve gotten approved for funding in the past and never landed a deal, now I will have to begin again. I’m focusing on wholesales for now, but would like resources and a “guide” that work.
I have friends that like Fortunebuilders. I like to buy properties from Wholesalers so I actually don't do much marketing myself.
I would join you local REIA on the flip side most wholesalers don't want to train their competition. Going to REIAs will build your buyer's lost.
You may have to get a paid mentor from other parts of the country.
@Frank Patalano. What is holding me back is mostly the capital to fund the deal. Additionally, I am new to this, so I am trying to learn as much as I can prior to starting. I am listening to the podcast daily, reading books and searching through the blogs and forums for information. I am hungry, but I need to find investors and work on how to approach them with a deal.