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.
Colorado Springs, CO · Member since 2018 · 10 posts · 1 vote
7y
@Frank Patalano
I've been held back for over a year now due to my career move and financial situation until the other day when my company offered to move me to Aurora, Colorado. I immediately found a rental property where the numbers look like they work and there's a lot of rental potential as I'll be house hacking. However, now I'm held back because I don't know how to find a decent long term tenant, or how to begin my endeavors of being a landlord.
Somerset, NJ · Member since 2014 · 5 posts · 4 votes
7y
For me, I've been out of the country, living in Asia for the last 6 years. Not that much in savings, married to a nonAmerican (visa costs= not fun). Mother is a real estate agent who persuaded me to go back to the States and give real estate a shot. But no job in America lined up just wondering how can I get off the ground... I'm eager but no know-how... (I eating everything on this site tho)
I've been held back for over a year now due to my career move and financial situation until the other day when my company offered to move me to Aurora, Colorado. I immediately found a rental property where the numbers look like they work and there's a lot of rental potential as I'll be house hacking. However, now I'm held back because I don't know how to find a decent long term tenant, or how to begin my endeavors of being a landlord.
Buy the property if you think it's a deal. You can educate yourself and Network to find good tenants.
Or You could pay a property management company to find a tenant for you if you wanted to as well. They usually charge 1/2 to 1 month's rent.
For me, I've been out of the country, living in Asia for the last 6 years. Not that much in savings, married to a nonAmerican (visa costs= not fun). Mother is a real estate agent who persuaded me to go back to the States and give real estate a shot. But no job in America lined up just wondering how can I get off the ground... I'm eager but no know-how... (I eating everything on this site tho)
You can make money in real estate as long as you commit to working your butt off. If I were you my first step would be to find a job in the industry. Then you can educate yourself and make money at the same time. It would also allow you to network and find deals. There are people that just make money by wholesaling everyday but it is a hard thing to do with no other income just starting out.
Rental Property Investor · Houston, TX · Member since 2019 · 14 posts · 5 votes
7y
@Frank Patalano
Thank you for the reply.
Overall I know my credit is not good enough! I am indeed looking to house hack!
I’ve been trying to get wholesale deals (unsuccessful) just to get a start on working towards my next jump either credit repair or the house hack which ever I can do first.
Prattville, AL · Member since 2018 · 9 posts · 3 votes
7y
@Mark Bommarito hi! Look into prattville AL! We have super cheap homes in AL and with that price range Prattville would be a good start. Montgomery has REALLY cheap properties but it’s higher crime.
For me, I've been out of the country, living in Asia for the last 6 years. Not that much in savings, married to a nonAmerican (visa costs= not fun). Mother is a real estate agent who persuaded me to go back to the States and give real estate a shot. But no job in America lined up just wondering how can I get off the ground... I'm eager but no know-how... (I eating everything on this site tho)
You can make money in real estate as long as you commit to working your butt off. If I were you my first step would be to find a job in the industry. Then you can educate yourself and make money at the same time. It would also allow you to network and find deals. There are people that just make money by wholesaling everyday but it is a hard thing to do with no other income just starting out.
I appreciate it. Will definitely look into getting my feet wet in the industry. Do you think becoming an agent would be a good start? Or are there some other potential jobs to have my eyes open for?
Fayetteville, NC · Member since 2014 · 43 posts · 8 votes
7y
What i think is holding me back right now or atleast what i am telling myself is that i want to raise my credit score and continue to build capital before i purchase a investment property. I am still looking everyday in my market ( Fayetteville, North Carolina) for a deal that makes sense and that i can make happen. As soon as i find one i will not hesitate to pull the trigger.
Rental Property Investor · Solana Beach, CA · Member since 2019 · 36 posts · 15 votes
7y
What's giving me pause is, the question of to partner or not to partner? I would like affect a BRRRR strategy on Duplex, Tri or Quad to start as opposed to SFR (but I may start with SFR) and want to limit the use of my own cash to about $50K. Using HML for the balance of purchase price and rehab I'm looking at a purchase price of around $210K:
Purchase price: $210K
Rehab: $40K
My cash: $50K (20% of total HML)
Unfortunately, I'm not finding what I'm looking for in this price range. So, do I bring in a partner (which can sometimes lead to a whole different set of issues) and go after larger purchase price deals or do I start with SFRs?
Once I have this settled in my mind I will have no more excuses, yes I realize my current question may just be another convenient excuse.
Prattville, AL · Member since 2018 · 9 posts · 3 votes
7y
@Greg Baca hey Greg! We had the same
Problem, I was 22 finishing up college and my and my fiancé had a baby on the way!
We found an owner finance that they were going to just let go. They had divorced and were just going to let it foreclose. We caught up the mortgage and paid the recording fees and were in a home! Then we fixed it up while living there and turned around and sold it. I’d say you have to get SUPER creative but you can make it work! We were looking at doing the same with multi family apartments as well!
We were in the same boat as far as job time! He was a realtor for less than two years and I was in insurance...both 1099 and no hopes for a loan!
Is it hard to buy off of MLS? Yes but not impossible. Especially since I have plenty of friends who do it often. I prefer off market.
Where do you go to find off market deals? Is it purely networking or do you know of any specific places I could go and see non-MLS deals? In the inspection period on my first property that I'll be househacking and already making sure to keep my eyes peeled for number 2.
Bethlehem, PA · Member since 2018 · 5 posts · 2 votes
7y
My current hold back I feel is contacts. I do not have enough professional industry related contacts to gather leads, find buyers, lenders. I currently do have two SFR doors, but looking to get into more buy and hold, as well as short term wholesale income. My goal at this time is networking.
Rental Property Investor · Oceanside, CA · Member since 2019 · 63 posts · 51 votes
7y
@Frank Patalano
Hi Frank,
I’m a new investor looking to do my first investment property out of state. I ask myself that question daily. I’ve realized that the biggest thing holding me back is wanting the perfect deal instead of just a deal that makes sense.
Another thing holding me back is just the general uncertainty. The “you don’t know what you don’t know” makes me nervous. I learn something new every day and always end up glad I learned what I did before I did my first deal.
There is no certification that states “you’re ready for RE Investing”. I’ve finally decided I’ve learned enough to get started and whatever other information I’m missing I’ll learn along the way. Hopefully I’ve learned enough from other people’s mistakes to start off on the right foot. I’m excited to start my journey.
Overall I know my credit is not good enough! I am indeed looking to house hack!
I’ve been trying to get wholesale deals (unsuccessful) just to get a start on working towards my next jump either credit repair or the house hack which ever I can do first.
Do you have 25% to put down? That is what most hard money lenders will want. You will find lenders at your local REIA meeting.
You might either need a money partner or be willing to work for another bigger wholesaler and learn/get a cut of the profits.
For me, I've been out of the country, living in Asia for the last 6 years. Not that much in savings, married to a nonAmerican (visa costs= not fun). Mother is a real estate agent who persuaded me to go back to the States and give real estate a shot. But no job in America lined up just wondering how can I get off the ground... I'm eager but no know-how... (I eating everything on this site tho)
You can make money in real estate as long as you commit to working your butt off. If I were you my first step would be to find a job in the industry. Then you can educate yourself and make money at the same time. It would also allow you to network and find deals. There are people that just make money by wholesaling everyday but it is a hard thing to do with no other income just starting out.
I appreciate it. Will definitely look into getting my feet wet in the industry. Do you think becoming an agent would be a good start? Or are there some other potential jobs to have my eyes open for?
Being an agent is one way. I might try to work for a property management company. You also consider working for an insurance company or commercial lender.
What i think is holding me back right now or atleast what i am telling myself is that i want to raise my credit score and continue to build capital before i purchase a investment property. I am still looking everyday in my market ( Fayetteville, North Carolina) for a deal that makes sense and that i can make happen. As soon as i find one i will not hesitate to pull the trigger.
Set goals to keep looking every week. You could consider a partner that has money and/or better credit. Perhaps a friend of yours that wants to get involved in real estate.
What's giving me pause is, the question of to partner or not to partner? I would like affect a BRRRR strategy on Duplex, Tri or Quad to start as opposed to SFR (but I may start with SFR) and want to limit the use of my own cash to about $50K. Using HML for the balance of purchase price and rehab I'm looking at a purchase price of around $210K:
Purchase price: $210K
Rehab: $40K
My cash: $50K (20% of total HML)
Unfortunately, I'm not finding what I'm looking for in this price range. So, do I bring in a partner (which can sometimes lead to a whole different set of issues) and go after larger purchase price deals or do I start with SFRs?
Once I have this settled in my mind I will have no more excuses, yes I realize my current question may just be another convenient excuse.
Thanks, TK
Based on what you told me I would definitely partner with a like minded investor. Share the risk and the reward.
Is it hard to buy off of MLS? Yes but not impossible. Especially since I have plenty of friends who do it often. I prefer off market.
Where do you go to find off market deals? Is it purely networking or do you know of any specific places I could go and see non-MLS deals? In the inspection period on my first property that I'll be househacking and already making sure to keep my eyes peeled for number 2.
I do it by networking with wholesalers. Some people call for sale by owner signs. Others look for abandoned properties.
My current hold back I feel is contacts. I do not have enough professional industry related contacts to gather leads, find buyers, lenders. I currently do have two SFR doors, but looking to get into more buy and hold, as well as short term wholesale income. My goal at this time is networking.
If I were you I would set a goal to commit to one networking event per week. Most of the local real estate groups will hold monthly meetings. I belong to two local real estate investment groups. I also have a mastermind that meets once a week and that last week in the month I try to meet with some investors informally.
I’m a new investor looking to do my first investment property out of state. I ask myself that question daily. I’ve realized that the biggest thing holding me back is wanting the perfect deal instead of just a deal that makes sense.
Another thing holding me back is just the general uncertainty. The “you don’t know what you don’t know” makes me nervous. I learn something new every day and always end up glad I learned what I did before I did my first deal.
There is no certification that states “you’re ready for RE Investing”. I’ve finally decided I’ve learned enough to get started and whatever other information I’m missing I’ll learn along the way. Hopefully I’ve learned enough from other people’s mistakes to start off on the right foot. I’m excited to start my journey.
Awesome. Yeah I know plenty of people that are much smarter than I am a real estate. I know a thousand times more now than I did 10 years ago and I'm still not an expert . And you're right., you can't wait for the perfect deal.
Thanks for the reply, I would definitely be interested in agents that you find trustworthy in those markets. I know you said you prefer off market deals but the few times I've come across a post pertaining to them they seem to want cash buyers. I also want to start attending REI meetings in those areas do you know of any worthwhile ones. I've attended others but didn't find good information and was more speakers trying to sell programs.