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.
@Frank Patalano We have already done 1 wholesale deal and 1 flip, however, the biggest hurdle I have to overcome is financing at the moment. Just moved and have not had a w2 job in over a year. Regardless, our goal is to keep pushing forward and do at least one deal every quarter.
You have proven experience. Find a partner with money but no time. You can do it.
The more research I do, the more I come to like getting into a 'fundrise'-type deal (pure investment). All I need is money, like everyone else.
Several things:
- Just purchased my main/primary residence, due to cost of rent in LA. It made more sense for me to purchase a home.
- May have a life change event (get married)
- Whether to reinvest my money into my business into expansion and scalability
- Value of homes in LA are so high.
Valid reason? Lol. Been trying to convince myself.
I had two major factors that always held me back.
1) FEAR. That was my absolute biggest obstacle to overcome. Before I pulled the trigger on a any property, I thought of all the what if scenarios. What if I lose the little bit of money in my savings? What if the property doesn't sell or what if I break even or worst, what if I lose money on the transaction? Even now, fully immersed in my first project, I still have the same fears. But I have learned to push through them.
2) Lack of Knowledge: Let's be real, there is so much information, it can be overwhelming. I've learned a lot of the past few months, mostly from experience & research. Somethings I wish I would have known before starting this project and even during the project. But hey, life is the best teacher.
The more research I do, the more I come to like getting into a 'fundrise'-type deal (pure investment). All I need is money, like everyone else.
To get started you have to be willing to put in some work. Perhaps you can wholesale one or two for some cash. If not you'll have to work to save up for it.
Several things:
- Just purchased my main/primary residence, due to cost of rent in LA. It made more sense for me to purchase a home.
- May have a life change event (get married)
- Whether to reinvest my money into my business into expansion and scalability
- Value of homes in LA are so high.
Valid reason? Lol. Been trying to convince myself.
There is nothing wrong with plans (growing that business) outside of real estate.
Plans are different than excuses.
If you want to do more real estate set actionable goals and do them.
If you don't want to do real estate that's fine as well.
I had two major factors that always held me back.
1) FEAR. That was my absolute biggest obstacle to overcome. Before I pulled the trigger on a any property, I thought of all the what if scenarios. What if I lose the little bit of money in my savings? What if the property doesn't sell or what if I break even or worst, what if I lose money on the transaction? Even now, fully immersed in my first project, I still have the same fears. But I have learned to push through them.
2) Lack of Knowledge: Let's be real, there is so much information, it can be overwhelming. I've learned a lot of the past few months, mostly from experience & research. Somethings I wish I would have known before starting this project and even during the project. But hey, life is the best teacher.
Sounds like you are doing awesome. Pushing through your fears and gaining knowledge. Some of the best knowledge can only be gained from experience.
@Frank Patalano it’s great that you’re still replying to this thread over several months.
For me, I think it's a lack of a network that's holding me back. I need/want to invest out of state and I want to start with small multi-families. Cap rates seem compressed or non-viable on listings where I've been on the hunt. I need to find another path other than loopnet and Redfin. I have plenty of resources once I can find something... doesn't need to be a stellar deal. Tax advantages not available to HML make it less desirable and I already own a bunch of REITs.
Several things:
- Just purchased my main/primary residence, due to cost of rent in LA. It made more sense for me to purchase a home.
- May have a life change event (get married)
- Whether to reinvest my money into my business into expansion and scalability
- Value of homes in LA are so high.
Valid reason? Lol. Been trying to convince myself.
There is nothing wrong with plans (growing that business) outside of real estate.
Plans are different than excuses.
If you want to do more real estate set actionable goals and do them.
If you don't want to do real estate that's fine as well.
What are good actionable goals? Will it be "Purchasing a multi-family (Preferably duplex or a triplex) before the year ends" be a good example? Also, one of my goals is to "Save enough cash for next economic downturn to get aggressive on RE"
@Frank Patalano it’s great that you’re still replying to this thread over several months.
For me, I think it's a lack of a network that's holding me back. I need/want to invest out of state and I want to start with small multi-families. Cap rates seem compressed or non-viable on listings where I've been on the hunt. I need to find another path other than loopnet and Redfin. I have plenty of resources once I can find something... doesn't need to be a stellar deal. Tax advantages not available to HML make it less desirable and I already own a bunch of REITs.
If possible, start researching three other markets. Give yourself a month to study all three.
Then pick one you want to focus on. Maybe take a 3-day weekend out there. Meet up with some local investors, a broker, a property manager, Etc.
I have another idea for you but not on the forum. DM me.
Several things:
- Just purchased my main/primary residence, due to cost of rent in LA. It made more sense for me to purchase a home.
- May have a life change event (get married)
- Whether to reinvest my money into my business into expansion and scalability
- Value of homes in LA are so high.
Valid reason? Lol. Been trying to convince myself.
There is nothing wrong with plans (growing that business) outside of real estate.
Plans are different than excuses.
If you want to do more real estate set actionable goals and do them.
If you don't want to do real estate that's fine as well.
What are good actionable goals? Will it be "Purchasing a multi-family (Preferably duplex or a triplex) before the year ends" be a good example? Also, one of my goals is to "Save enough cash for next economic downturn to get aggressive on RE"
Some examples of goals that I was thinking about. Go and look at four properties a week. Twice a month make an offer no matter how low. Go to 2 RE meetups a month.
Keep hunting.
I KNOW that I am going to purchase my first house hack. Im just not sure im ready. I have good credit, a stable job, and a small amount of savings but i still don't feel ready. I feel like if I had 10k more cash available then I would be confident enough to get deal hunting. What can I start doing now to ensure that 6 months down the road when i do have the cash, i ready?
I KNOW that I am going to purchase my first house hack. Im just not sure im ready. I have good credit, a stable job, and a small amount of savings but i still don't feel ready. I feel like if I had 10k more cash available then I would be confident enough to get deal hunting. What can I start doing now to ensure that 6 months down the road when i do have the cash, i ready?
I don't have a lot of info about your age, current info, etc. If possible I would try to pick up a Summer Side Hustle. There's got to be a way for you to make an extra 10 Grand working weekends. Be creative with your income and try to be creative with your expenses as well. I would reduce your expenses as much as possible. Sometimes we all have to sacrifice in order to achieve what we want.
@Frank Patalano working with a good agent after I keyed in on a property it was smooth sailing, the thing that’s holding me back is the actual seller, who can’t get a unit vacated before closing even though it’s stipulated in my purchase contract.. Anybody else ever deal with that?
@Frank Patalano working with a good agent after I keyed in on a property it was smooth sailing, the thing that’s holding me back is the actual seller, who can’t get a unit vacated before closing even though it’s stipulated in my purchase contract.. Anybody else ever deal with that?
@Frank Patalano working with a good agent after I keyed in on a property it was smooth sailing, the thing that’s holding me back is the actual seller, who can’t get a unit vacated before closing even though it’s stipulated in my purchase contract.. Anybody else ever deal with that?
I would find out what the cost would be to evict that tenant myself. I would double the eviction cost and ask for a credit. Then I would lock up the deal. I've been able to get amazing deals before because the tenant was horrendous. I've got no money down deals before because the tenants were so bad. Then I got rid of them.
@Frank Patalano deciding what path to take. So many options, is it the best option now, what’s my long term goal? Will that goal change?
Need to pick something and stick with it.
@Frank Patalano deciding what path to take. So many options, is it the best option now, what’s my long term goal? Will that goal change?
Need to pick something and stick with it.
Set a date. Give yourself one month to choose an option. Write it down. Commit to it.
@Frank Patalano. For me it was definitely cash. I have been reading books and watching podcasts. I have found a few properties that I think would be good investments. My issue is funding them. I know there are ways with no or little money but I am still finding that an issue. I was let go of my job from a Corp buyout last month. Even when I had a good job I couldn’t get financing on another property. I bought my first rental about a year and a half ago and did a lot of repairs and wrote those off on my taxes. That mistake brought my income (based on tax returns no current income) down and my debt to income ratio was not good enough. I have reached out to about 30 or more agents to see if their sellers would be willing to sell on contract. None of them wanted to. I do not have any rich friends or family to borrow money from. I know there might be a possibility of a private lender or hard money but what is that funded the property and repairs but I couldn’t refinance to pay them back and lower my rate? That’s the situation I find myself in now. I am just going to hopefully get a call back on a job soon and start saving up again. I would love to get to the point that I could quit my regular job and focus entirely on real estate but it’s proving to be very difficult.
@Frank Patalano. For me it was definitely cash. I have been reading books and watching podcasts. I have found a few properties that I think would be good investments. My issue is funding them. I know there are ways with no or little money but I am still finding that an issue. I was let go of my job from a Corp buyout last month. Even when I had a good job I couldn’t get financing on another property. I bought my first rental about a year and a half ago and did a lot of repairs and wrote those off on my taxes. That mistake brought my income (based on tax returns no current income) down and my debt to income ratio was not good enough. I have reached out to about 30 or more agents to see if their sellers would be willing to sell on contract. None of them wanted to. I do not have any rich friends or family to borrow money from. I know there might be a possibility of a private lender or hard money but what is that funded the property and repairs but I couldn’t refinance to pay them back and lower my rate? That’s the situation I find myself in now. I am just going to hopefully get a call back on a job soon and start saving up again. I would love to get to the point that I could quit my regular job and focus entirely on real estate but it’s proving to be very difficult.
I would be networking as much as you can and going to every Meetup possible. Right now you have time and perhaps you can find a partner that can bring money. If you've dreamed about doing full-time real estate now would be the time to be looking as you are also applying for work.
@Frank Patalano
Hi Frank, I am currently finishing college (electrical engineering graduate school) so what is holding me back from REI is primarily money and not being settled in an area yet. In the meantime, before I graduate I am trying to learn as much as I can about REI through books, podcasts, and browsing websites like Zillow for deals I would look into in example locations if I had the money to invest and was living there. Any suggestions would be well appreciated!
@Frank Patalano, right now, I am currently on a Temporary Duty Assignment (I am military) and away from home. I am doing the research, gaining knowledge and looking at properties in my target market (my hometown), which is in an entirely different state from where I currently live. I have taken the initiative and contacted a buyer's agent in that area who is very familiar with the market and she has been feeding me properties to review. The next step is to get this financing piece taken done. Traditional bank loan, Private lenders and HELOC are my options at the moment. The HELOC I intend to use just for a downpayment. I am looking to invest in buy and hold properties, rentals. Until I get back home, I'm kind of at a standstill, other than doing what I have been...gaining knowledge. Any suggestions on the best financing options?
@Frank Patalano
Hi Frank, I am currently finishing college (electrical engineering graduate school) so what is holding me back from REI is primarily money and not being settled in an area yet. In the meantime, before I graduate I am trying to learn as much as I can about REI through books, podcasts, and browsing websites like Zillow for deals I would look into in example locations if I had the money to invest and was living there. Any suggestions would be well appreciated!
Go to RE meetups. They should be inexpensive and give you knowledge and a network.
Book Recommendations
1. Money: Master the Game by Tony Robbins
2. Rich Dad, Poor Dad by Robert Kiyosaki
3. Total Money Makeover by Dave Ramsey
4. Richest Man in Babylon by George Clason
5. The Millionaire Next Door by Thomas Stanley
6. The Road to Wealth by Suze Orman
7. CashFlow Quadrant by Robert Kiyosaki
8. The 4 hour Workweek by Tim Ferriss
9. How to win Friends and Influence People by Dale Carnegie
I can give you more info but that is a start.
@Frank Patalano, right now, I am currently on a Temporary Duty Assignment (I am military) and away from home. I am doing the research, gaining knowledge and looking at properties in my target market (my hometown), which is in an entirely different state from where I currently live. I have taken the initiative and contacted a buyer's agent in that area who is very familiar with the market and she has been feeding me properties to review. The next step is to get this financing piece taken done. Traditional bank loan, Private lenders and HELOC are my options at the moment. The HELOC I intend to use just for a downpayment. I am looking to invest in buy and hold properties, rentals. Until I get back home, I'm kind of at a standstill, other than doing what I have been...gaining knowledge. Any suggestions on the best financing options?
I'm a little confused. Do you own a property now? You are going to use a HELOC from that to buy another property?
I have often used hard money to buy quickly and refi into a traditional loan later.
Keep learning, that is fine.
I have bought properties without ever going to the property itself. If you are not ready, you are not ready but don't make it an excuse. With today's technology you could purchase a property without being here.
@Frank Patalano
Hi Frank, I am currently finishing college (electrical engineering graduate school) so what is holding me back from REI is primarily money and not being settled in an area yet. In the meantime, before I graduate I am trying to learn as much as I can about REI through books, podcasts, and browsing websites like Zillow for deals I would look into in example locations if I had the money to invest and was living there. Any suggestions would be well appreciated!
Go to RE meetups. They should be inexpensive and give you knowledge and a network.
Book Recommendations
1. Money: Master the Game by Tony Robbins
2. Rich Dad, Poor Dad by Robert Kiyosaki
3. Total Money Makeover by Dave Ramsey
4. Richest Man in Babylon by George Clason
5. The Millionaire Next Door by Thomas Stanley
6. The Road to Wealth by Suze Orman
7. CashFlow Quadrant by Robert Kiyosaki
8. The 4 hour Workweek by Tim Ferriss
9. How to win Friends and Influence People by Dale Carnegie
I can give you more info but that is a start.
Thanks for the suggestions Frank! I am about halfway through Rich Dad Poor Dad and was planning on reading How to Win Friends and Influence People next, so now I will look into these other books after. I will also look into local RE meetups.