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.
Appreciate the suggestion. I had thought about that, the monthly meeting is in conflict with my schedule, but I'll see if I can figure out a way to make it work. Thanks!
Appreciate the suggestion. I had thought about that, the monthly meeting is in conflict with my schedule, but I'll see if I can figure out a way to make it work. Thanks!
I switched my schedule for years because Education was worth more than my job.
See if you can get a friend to partner with you and join the group.
@Kris L. I completely understand. I have partners that won't invest more than 1 hour away because they have been burned before.
Education is super important. This won't help with control but if you don't want to manage but still want to invest, perhaps you should think about crowdfunding, buying a REIT, or passively investing in a syndication. Then you can at least have some of your money working for you.
Hi Frank, I have since the beginning of the new year gotten more active in reading and getting familiar with out of state investing. I live in Los Angeles and need to look out of state if i want to get started with rental properties. My biggest struggle is nailing down which particular city/ state to invest in. I have looked into GA, TX, AZ but it seems for the price (150K) or less i can afford, that most areas either have higher crime than desirable or bad school districts. It seems to me if you have a rental property, good school districts and low crime would be best but im not finding such areas in my price budget. Any thoughts or am I being too picky for my first rental property?
On the money side, you just bought 2 deals. Your doing fine. Perhaps you can partner on deal #3. You bring experience, they bring the money.
Man power. I'm not sure if you mean time, or workers. If it's time, you might have to work on your systems. If it's needing more workers, you just might need to reach out to your network. Someone might have extra help available.
Nick. Did you stabilize that 2nd property yet? Taking a break? On the hunt again?
Fears a tough one overcome. I will tell you that everyone has fear even if they don't admit it. Robert Kiyosaki says that he still shakes a little bit at the closing table when he buys a property. One way to help overcome fears for knowledge. Another way is through experience. It's easier to buy property number 6 than to buy property number one.
I lost money on my first deal and I'm still doing it. Remember that risks are what make life memorable. Do you really want to play it safe your entire life? Think of the regrets.
You have to commit yourself to goals. Pick one goal even if it's fearful in each section of your life. I'm not saying to go skydiving or anything but perhaps just to go to a monthly real estate meaning. Look at one property a week. Make an offer on one property a month. It doesn't matter how low the offer is. If you get accepted than you were not low enough.
At the beginning of the year I set out with six goals and so far I've been pretty successful at five of them.
So what did you end up doing? I saw your recent comment on syndications.
@Frank Patalano today finding a deal is the challenge. Just stacking cash and networking at the moment
I agree that finding the deals is the hardest thing to do in this market. I love that you are networking. As long as you are actively looking for off-market deals you are probably doing fine. It's better to pass on over-priced deals then to buy one. Just make sure you set goals to be looking at so many properties a week.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
7y
Probably not going to know until at least August, though going to try to get an unpaid internship with an RE/ PM company for four months at end of year (my current job pays salary for separation training).
Rental Property Investor · Sedan, KS · Member since 2016 · 125 posts · 92 votes
7y
@Frank Patalano Time I guess? I've already "started" but my wife and I have come a long way from where we started and we're nearly bad debt free aside from our personal residence mortgage. Once we close on a house sale we are going to take a well deserved break for a few months while we work on our home. After that it's a race to retirement I guess. Everyone is looking to get rich. And that's fine. I'd be content just having a 10 minute lunch break without anyone bothering me.
@Frank Patalano Time I guess? I've already "started" but my wife and I have come a long way from where we started and we're nearly bad debt free aside from our personal residence mortgage. Once we close on a house sale we are going to take a well deserved break for a few months while we work on our home. After that it's a race to retirement I guess. Everyone is looking to get rich. And that's fine. I'd be content just having a 10 minute lunch break without anyone bothering me.
I understand about the lunch break. Look up the FIRE movement. Sounds like something that you would be interested in. When you're ready, you're ready.
Minneapolis, MN · Member since 2019 · 30 posts · 17 votes
7y
Hello everyone,
I noticed a lot of you aren't pro members and I've made a calculator that emulates some features of the bigger pockets calculator along with projections for what costs and revenue looks like 1, 2, 10 and 20 years into the future. If you're interested in a copy of the spreadsheet just send me a private message.
@Frank Patalano, for me it's really easy. Prices locally are too damn high. Both buy and rent. Renting is becoming unaffordable. Returns are NOT good.
I don't want to be an OOS investor in 'flyover' country. Not my thing. I can read about it ALL day long, but it doesn't interest me much.
I already own OOS, in CA, which is almost like owning in a different COUNTRY. But that is a different story.
I am better off investing in 'life settlement' vehicles than real estate. After all, ppl will STILL be dying during a RE 'downturn'. ;-)
I still see deals once in a while. Not like 3 years ago. I agree that things go in cycles. So keep going after your niche. Since few are doing it I'm sure that there are opportunities.
Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
7y
@Frank Patalano, in the meantime I'll be a collector of cash. That seems to be a good position right now.
I 'caught up' with a former manager of mine last week. We talked quite some time about different things.
He was saying when he talked to his Schaub guy that MANY of the ppl in our demographic (ie boomers) were hanging on to large ca$h positions. The main reason: We don't want to lose it, don't have time to 're-create it'.
For me it has to be a 'strategic buy'. Such as I need more depreciation as I pay other properties off. Even then it is a risk/reward thing.
@Frank Patalano, in the meantime I'll be a collector of cash. That seems to be a good position right now.
I 'caught up' with a former manager of mine last week. We talked quite some time about different things.
He was saying when he talked to his Schaub guy that MANY of the ppl in our demographic (ie boomers) were hanging on to large ca$h positions. The main reason: We don't want to lose it, don't have time to 're-create it'.
For me it has to be a 'strategic buy'. Such as I need more depreciation as I pay other properties off. Even then it is a risk/reward thing.
We're selling four properties now so I get it. At the same point I am not a fan of being in a cash position if we have deflation.
Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
7y
@Frank Patalano, we sold off the 3 properties last year that we did not want to carry thru a recession.
Deploying the cash from the sales was a different issue/problem.
But we did update/upgrade our Cali property at tenant turn and increased the rent by almost $1000 a month. It was 90k which included new sewer line, AC unit, flooring, paint, lights, kitchen sink and counters, bathroom. Now there is literally nothing in the house more than 5 years old. Except the house. LOL.
It was probably the best ROI I could get under the circumstances. AND it wrote off some of the gains. ;-)
Fairfield, CA · Member since 2019 · 74 posts · 31 votes
7y
Just dropped out of college and only have about 12k saved up. I plan on continuing to learn while I save money getting started as a real estate agent. I think selling real estate and investing in it will be a great combo that I enjoy.
I have patience, but if anyone has input into how I could possibly get into the investing part sooner, my ears are open. Maybe finding a partner who has faith in my deal-finding ability? Sounds tough, but I am willing to try; I might have a connection or two. Or maybe I am too young and naive :) Oh well. Let me know!
Edit: I'm near the bay area in CA and my 12k isn't even enough for a down payment and I have very little income history. Sounding more naive probably?? whoops. Just excited:)
Just dropped out of college and only have about 12k saved up. I plan on continuing to learn while I save money getting started as a real estate agent. I think selling real estate and investing in it will be a great combo that I enjoy.
I have patience, but if anyone has input into how I could possibly get into the investing part sooner, my ears are open. Maybe finding a partner who has faith in my deal-finding ability? Sounds tough, but I am willing to try; I might have a connection or two. Or maybe I am too young and naive :) Oh well. Let me know!
Edit: I'm near the bay area in CA and my 12k isn't even enough for a down payment and I have very little income history. Sounding more naive probably?? whoops. Just excited:)
If you can truly lock up a property for a sweet deal you can easily wholesale it to build cash or should be able to easily find a partner.
I think I got myself into the analysis paralysis state. Fear of market turning, doing a bad deal and losing money keeps me from moving forward. The funny thing is, when I bought my first two properties I barely analyzed them. Mainly because I didn’t know what I was doing. Both cash flowing since day one.
I guess the more I educated myself the more fearful I became. Stupid huh?
I'm literally laughing out loud. Same!
Bought my first house because it had beautiful windows and knew someone would buy it down the line....
Beautiful windows?!
-the house sold for a silly amount of money and the key factor for the buyer was the windows. Go figure
I'm terrified the more i attempt to educate myself. The thought of losing the little chunk of change i made stops me from moving forwards.
I think I got myself into the analysis paralysis state. Fear of market turning, doing a bad deal and losing money keeps me from moving forward. The funny thing is, when I bought my first two properties I barely analyzed them. Mainly because I didn’t know what I was doing. Both cash flowing since day one.
I guess the more I educated myself the more fearful I became. Stupid huh?
I'm literally laughing out loud. Same!
Bought my first house because it had beautiful windows and knew someone would buy it down the line....
Beautiful windows?!
-the house sold for a silly amount of money and the key factor for the buyer was the windows. Go figure
I'm terrified the more i attempt to educate myself. The thought of losing the little chunk of change i made stops me from moving forwards.