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.
Biggest thing for me is getting things in order (building the game plan.... trying to avoid The analysis paralysis) so I can begin to analyze deals to learn and get my feet wet so I CAN recognize a good Muktifamily deal. I already have two SF rental with good cash flow but moving to a more deliberate “commercial” mindset seems to take more planning.
Set goals. Look at so many multi-multi families a week. I don't care if it's one in a week. Analyze everyone even if you don't buy it. Even better find a few local properties on MLS that already provide you with a P & L for the property. Try to figure out how the expenses are different between a single-family and a multi-family. I really don't think it's that big of a difference. We own a bunch of single families and we own a bunch of multifamilies.
Are you talking big multi families? You can do those but why don't your feet wet on something between 4 and 6 units first.
Developer · Central, NJ · Member since 2019 · 15 posts · 3 votes
7y
I think for everyone (including myself) if you take a look at yourself and think about the kind of person you are and what you can be. People will want to notice & see what it is your doing, how knowledgeable you are with Real Estate and what groups are you affiliated with. They would want to gravitate to you, be able to trust you & do business with you if you got the type of energy an out going person has. For anyone that is an Introvert (which includes me) it will be tough to speak about what your doing in Real Estate, whether your just started wholesaling or fix & flipping, or if you just became an Real Estate Agent for an Homesmart or ReMax, Keller Williams, ect... or if your a part of a Real Estate investing Education group. This includes any career field you are in that requires some type of public speaking, speaking to people ect...
It's going to take alot of work alot of practice on yourself if this is what you want to get into, having the Drive, Motivation, staying educated is key & surrounding yourself with great people to learn from as well.
You didn't give me a lot of info your help you with your journey. I don't know the market in the Harrisburg/Carlisle area. I will say that you get better with finding deals through education and networking. Hopefully you are a member of your local REIA. Keep meeting people that is the best way to find an opportunity. If you don't own a house now, house hacking is one of the best paths to take.
Not a member yet, I'm planning too of course. I am spending the time educating myself about the market, buying and rehab process etc. I own my own home out right currently and have spare cash for my first 4/5 deals already put aside. Just need to find the right ones - the first may have turned up this weekend, nice little duplex :)
I think for everyone (including myself) if you take a look at yourself and think about the kind of person you are and what you can be. People will want to notice & see what it is your doing, how knowledgeable you are with Real Estate and what groups are you affiliated with. They would want to gravitate to you, be able to trust you & do business with you if you got the type of energy an out going person has. For anyone that is an Introvert (which includes me) it will be tough to speak about what your doing in Real Estate, whether your just started wholesaling or fix & flipping, or if you just became an Real Estate Agent for an Homesmart or ReMax, Keller Williams, ect... or if your a part of a Real Estate investing Education group. This includes any career field you are in that requires some type of public speaking, speaking to people ect...
It's going to take alot of work alot of practice on yourself if this is what you want to get into, having the Drive, Motivation, staying educated is key & surrounding yourself with great people to learn from as well.
Anyone understand this? or Even Agree with this?
Set goals and push yourself. I have many millionaire friends in real estate who are introverts. They just work hard to overcome it.
You didn't give me a lot of info your help you with your journey. I don't know the market in the Harrisburg/Carlisle area. I will say that you get better with finding deals through education and networking. Hopefully you are a member of your local REIA. Keep meeting people that is the best way to find an opportunity. If you don't own a house now, house hacking is one of the best paths to take.
Not a member yet, I'm planning too of course. I am spending the time educating myself about the market, buying and rehab process etc. I own my own home out right currently and have spare cash for my first 4/5 deals already put aside. Just need to find the right ones - the first may have turned up this weekend, nice little duplex :)
Wow sounds like you're doing great. Yeah just need to figure out what a deal is and after that work on marketing.
@Frank Patalano Fix and flips also rentals in Maryland ( Baltimore Metro area)
I would find a partner for your first deal. Preferably someone with money but no time. You could invest together in the first couple deals. I have friends that started that way. Shoot, I even helped one of my buddies get started that way but it was local. Hard money lenders are going to want 20 to 25% down. That partner of yours is going to provide that.
Flipper/Rehabber · Las Vegas, NV · Member since 2019 · 47 posts · 7 votes
7y
@Frank Patalano yeah I kinda figured that part out but you're absolutely right I need to increase my appointments and I'm going to look for a REIA group out here thanks for your advice truly appreciate it have a great day !
Waipahu, HI · Member since 2018 · 121 posts · 81 votes
7y
I am in the education/capital acquisition phase at this point. Once me or my wife land a job in Tennessee we will be moving there, and house hacking/investing. I really believe that waiting to build leverage in oneself is a great move, but it too often is just an excuse because of the fear of making a mistake. It is also foolish to quit a job, and just try to jump in the deep end. In the book The Millionaire Real Estate Investor the author say, "think CTN, Criteria Terms, and Network." Not having a gap in employment, and being able to show consistent income is part of the Terms of being able to get a loan. I am exited to start, but there is a balance in preparation, and taking the plunge.
I am in the education/capital acquisition phase at this point. Once me or my wife land a job in Tennessee we will be moving there, and house hacking/investing. I really believe that waiting to build leverage in oneself is a great move, but it too often is just an excuse because of the fear of making a mistake. It is also foolish to quit a job, and just try to jump in the deep end. In the book The Millionaire Real Estate Investor the author say, "think CTN, Criteria Terms, and Network." Not having a gap in employment, and being able to show consistent income is part of the Terms of being able to get a loan. I am exited to start, but there is a balance in preparation, and taking the plunge.
To prove you're not making excuses set hard but realistic goals. Commit to working on them everyday.
Lender · Collinsville, IL · Member since 2019 · 32 posts · 13 votes
7y
More or less bits of everything listed here: the overwhelming amount of education available making me realize how little I know and various opportunities to explore, being the two key ones for me. I’ll elaborate:
I have a respectable amount of cash ready deploy and am unsure what would be the wisest direction given that quitting the 9-5 grind is a priority/goal and so building cash flow is imperative. I live in market that’s too expensive for me to invest in or where house hacking is an option (or a viable one for me personally) so my realistic options are:
1. I have pre-qualified for a mortgage to invest in a $150k property with 25% down with a pre financing ROI 6.9% in FL,
2. Pay cash for property in the mid-west and with the unencumbered cash flow re-invest.
3. Partner with a family member already active in the mid-west area on a duplex or multi family (with likelihood of requiring financing).
I should note that I am not entirely a RE novice as I have learned some lessons from an investment property I already own back in the UK with a large chunk of capital tied up (was intended to serve as a home rather than launching my RE gig; this was pre Rich Dad/ Richest Man in Babylon enlightenment...!) returning a low yield (~4%) which would be unwise to sell given political uncertainty currently limiting the home value increase.
I have set a deadline by when I must arrive at a decision and would welcome any thoughts that can assist in doing so :)
More or less bits of everything listed here: the overwhelming amount of education available making me realize how little I know and various opportunities to explore, being the two key ones for me. I’ll elaborate:
I have a respectable amount of cash ready deploy and am unsure what would be the wisest direction given that quitting the 9-5 grind is a priority/goal and so building cash flow is imperative. I live in market that’s too expensive for me to invest in or where house hacking is an option (or a viable one for me personally) so my realistic options are:
1. I have pre-qualified for a mortgage to invest in a $150k property with 25% down with a pre financing ROI 6.9% in FL,
2. Pay cash for property in the mid-west and with the unencumbered cash flow re-invest.
3. Partner with a family member already active in the mid-west area on a duplex or multi family (with likelihood of requiring financing).
I should note that I am not entirely a RE novice as I have learned some lessons from an investment property I already own back in the UK with a large chunk of capital tied up (was intended to serve as a home rather than launching my RE gig; this was pre Rich Dad/ Richest Man in Babylon enlightenment...!) returning a low yield (~4%) which would be unwise to sell given political uncertainty currently limiting the home value increase.
I have set a deadline by when I must arrive at a decision and would welcome any thoughts that can assist in doing so :)
I have a lot of question marks but based on what you have told me... My biggest question is where do you live now?
I would barely lean towards scenario 3. If you have a family member already investing and they will to take you under their wing I would probably go with that strategy. You will learn alot.
I have no issue with any of your choices but I think that you will learn the most by partnering on that first property.
Phoenix, AZ · Member since 2019 · 1 post · 0 votes
7y
I have just started really researching real estate investing, though it has always been something that interested me. I know that what is holding me back is just feeling like I have SO much to learn still and I don’t know anyone who is involved in real estate investing. Just started reading some books and hoping to dive into BP to solve both of these issues. Best of luck to all!
I have just started really researching real estate investing, though it has always been something that interested me. I know that what is holding me back is just feeling like I have SO much to learn still and I don’t know anyone who is involved in real estate investing. Just started reading some books and hoping to dive into BP to solve both of these issues. Best of luck to all!
The main thing that I would do is set goals. How much reading am I going to get done per week? How many podcasts. Setting consistent goals will keep you at it.
In a month start visiting houses. Go to Open Houses. They're free.
So there are a couple options. Remember that investing is a team sport. The hardest time for me was whenever I went at it alone. If you have time find someone who has money. Your time plus his money can be a good partnership. If you can't find a money partner you can house hack your first deal, or wholesale your first deal, or just straight work for someone else to learn the business.
Very new to Bigger Pockets but not new to wanting to invest in real estate. I've built up what I thought was going to be a 20% down payment for a personal home purchase, but the opportunity cost is too high in my HCOL city. So now I'm looking to purchase my first investment property. This brings me to my holding back reason:
1. Fear
2. Analysis Paralysis
I'd love to learn from all of you how you overcame these! How did you narrow down your market?
Very new to Bigger Pockets but not new to wanting to invest in real estate. I've built up what I thought was going to be a 20% down payment for a personal home purchase, but the opportunity cost is too high in my HCOL city. So now I'm looking to purchase my first investment property. This brings me to my holding back reason:
1. Fear
2. Analysis Paralysis
I'd love to learn from all of you how you overcame these! How did you narrow down your market?
Maggie, have you ever thought about house hacking in your city. If you have decent credit then you can purchase a multi-family and live in one of the units with 5% down or less. You can buy an investment property. One of the best ways to narrow down the market is to just go online and google cities that have jobs moving in. You can also look up cities with a growing population.
@Frank Patalano Thanks for your reply! I would LOVE to house hack, but we're definitely out priced in Los Angeles. First glance at LoopNet right now is nothing is jumping out as being under that 1.5 hour commute time and under $2 million.
Thanks for the advice on narrowing down the search!!!
@Frank Patalano Thanks for your reply! I would LOVE to house hack, but we're definitely out priced in Los Angeles. First glance at LoopNet right now is nothing is jumping out as being under that 1.5 hour commute time and under $2 million.
Thanks for the advice on narrowing down the search!!!
Yeah. LA it is unreachable for the average first timer. Every market is different. My partner doesn't want to list a small 4 unit because we can't get $375K for it.
I'm not sure where to find a wholesaler in my area. I have zero properties because money has been so tight for a long time, but I'm sick and tired of being sick and tired, so I'm EXTREMELY interested in using the BRRRR method to get out of the rat race. Where do I find wholesalers?
I'm not sure where to find a wholesaler in my area. I have zero properties because money has been so tight for a long time, but I'm sick and tired of being sick and tired, so I'm EXTREMELY interested in using the BRRRR method to get out of the rat race. Where do I find wholesalers?
Find your local monthly real estate investment Association. There will be wholesalers there. If you can't find one ask the head of the association.