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.
Investor · Weston, FL · Member since 2017 · 17 posts · 4 votes
7y
@Frank Patalano
The biggest thing, like one of the guys here said, over paying or getting a bad deal. Even reviewing the numbers, it’s always a fear to be over paying.
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.
Send me a DM for agents that I trust.
For REIAs,
Rhode Island. The RIREIG is the best real estate investment group that I've ever been to. 3rd Thursday of the Month.
Fall River. South Coast Real Estate group is small and growing. 2nd Thursday of the month.
The biggest thing, like one of the guys here said, over paying or getting a bad deal. Even reviewing the numbers, it’s always a fear to be over paying.
I understand. Even I worry about overpaying especially when I buy a crappy weird off market deal. You will always have that worry.
If you have no money, do you have time to bring to the table? Investors usually are successful if they have time, money, or experience. Figure out which one that you can focus on.
Everything! I have always been interested in real estate investment, BUT I don't know anyone who is actively doing it and succeeding at it. This causes me to fear taking the leap...
Everything! I have always been interested in real estate investment, BUT I don't know anyone who is actively doing it and succeeding at it. This causes me to fear taking the leap...
Welcome to the post. Search for Real Estate Investment associations in your closest city. There has got to be one. If not, set up your own. You will gain so many connections and so much experience.
Thank you! This is actually my first step. I live in the Rochester NY area. I just did the search and saw a few nearby but i feel so uninformed (although i read a lot on investing) and inexperienced that I start thinking I'm in over my head.
Thank you! This is actually my first step. I live in the Rochester NY area. I just did the search and saw a few nearby but i feel so uninformed (although i read a lot on investing) and inexperienced that I start thinking I'm in over my head.
Trust me. Half the people that go to the average meeting have never done a real estate deal. Everybody started somewhere.
For me, it’s mostly a mental block. I just can’t do it. I guess it doesn’t help that I live in a very remote area with ancient, crappy homes. I was pretty much ripped off on my current home, and now I am kind of stuck with it.
Still fun to learn about REI though.
Perhaps you have gained enough knowledge to make some money with it. Perhaps do a new construction single or multi
Perhaps! My current house is almost paid off, so that may give me some leeway. It is sometimes difficult to leave emotion out of it.
@Frank Patalano most good Multi family deals I have found, Require a roof soon and that’s a problem. I have the 20% to put down as a down payment but I will not have the $10,000 needed to put a roof on the house. It seems like the landlords around here and probably everywhere else run their properties into the ground and let somebody else take the hit. I can’t blame them for their Strategy but it sure is making things difficult. Even with 20% down banks don’t seem to want to lend the money due to the roofs Condition Or they’ll make the deal if you agree to fix the roof within 6 months.
I have the same problem with my house. I would love to rent it out, but it needs a new roof. It is shocking how much a roof costs.
Frisco, TX · Member since 2015 · 24 posts · 1 vote
7y
@Frank Patalano These are very good responses. There are a number of things that are affecting my ability to move forward, some more heavily than others. I have a good paying full time job and I’m a single parent. I’m a bit risk averse right now because of a kid going to college soon, I’m lacking a bit in self confidence that I can do it on my own, being recently divorced, and I’m not sure if I will have enough free time to start out and manage an investment. I did manage to get my RE license to help me get started, and I’ve been looking around for potential deals, but still unsure if I can actually do it :(
For me, it’s mostly a mental block. I just can’t do it. I guess it doesn’t help that I live in a very remote area with ancient, crappy homes. I was pretty much ripped off on my current home, and now I am kind of stuck with it.
Still fun to learn about REI though.
Perhaps you have gained enough knowledge to make some money with it. Perhaps do a new construction single or multi
Perhaps! My current house is almost paid off, so that may give me some leeway. It is sometimes difficult to leave emotion out of it.
Emotions are a double-edged sword. They push you harder sometimes and other times they hold you back. Join a local Investment Group if you can find one. You will find like-minded investors who might be able to give you emotionless opinions.
@Frank Patalano These are very good responses. There are a number of things that are affecting my ability to move forward, some more heavily than others. I have a good paying full time job and I’m a single parent. I’m a bit risk averse right now because of a kid going to college soon, I’m lacking a bit in self confidence that I can do it on my own, being recently divorced, and I’m not sure if I will have enough free time to start out and manage an investment. I did manage to get my RE license to help me get started, and I’ve been looking around for potential deals, but still unsure if I can actually do it :(
You can do it. At my craziest I was managing 15 units myself, with 3 kids (I am married), full time job, part time job, scout leader. You should join a local REIA.
Is your child going to school locally? If not what about buying a multi near their college choice?
Rental Property Investor · Houston, TX · Member since 2019 · 2 posts · 1 vote
7y
I’m very new to RE investing and I feel like I don’t have a good enough understanding of the ins-and-outs of of the industry so I’m focusing on learning before committing
I’m very new to RE investing and I feel like I don’t have a good enough understanding of the ins-and-outs of of the industry so I’m focusing on learning before committing
If you're educating that is fine. Just set some big goals in order to get things done. I don't want to hear the excuse that 2 years from now you are still educating. Plus go to some meetups.
Myself, i dont have a mentor and i am scared to mess up.
I lost money on my first deal. You have to take action in order to learn and get better. Can you imagine if when you were a baby you fell down and never tried to walk again.
Get out there and keep educating and keep networking.
I feel intimidated by the things I feel I don't know or understand fully. Some of the financing stuff is fuzzy. Like hardcore out of focus. I wish I could see some of the contracts that people use for private lending.
I have a meeting with a REI friendly lawyer on Thursday next week.
Denver, CO · Member since 2018 · 29 posts · 21 votes
7y
Whats holding me back is my lack of "boots on ground" network here in Longmont, Colorado.
All my properties are SFR class A type, so almost no maintenance in last 2 years (leaking vacuum breaker for sprinklers is the only little task I can think of). Also, I have First American home insurance and they say they will cover if there was anything in the house (electrical, plumbing, appliances etc) that breaks. Thankfully, I have never had to use them so far, but its just piece of mind.
What I need ground staff for:
Mainly showings to potential tenant if there was a vacancy. I only do month to month leases, offer less than market rents and that ways my vacancies are really low and I stay in _control_. Tenants know they have to fall in line or their nuisance will be dealt with very swiftly. Dont want to pay property manager first months rent and tenant finding fee every time there is a turnover.
Problem Im trying to solve:
Have somebody who is local and open to doing a side gig. I dont mind paying someone 100 dollars/month just to be on standby even if there is zero work. Work is only when showing needs to happen and for that Im happy to pay 25 dollars per hour on top of standby fee of 100/month, once the tenant moves in they again go back to zero work and get paid 100 a month. Ideal for teenagers, single mothers etc looking to make extra cash. But reliability has been a big issue so far.
Other thing I have done is tried to recruit people from rover.com (pet sitting service). My thought was well these people have time and resource (mainly a vehicle) and they are looking to get paid, so will they really care if I need them to feed or walk my dog or have them actually show the property to a potential tenant. I have have had some success there but reliability has been a big issue.
Startup idea:
1) Airbnb chewing up hotel industry (anybody gets to be part time hotelier)
2) Uber/Lyft chewing up taxi services (anybody gets to be part time driver)
3) Rover chewing up kennel services (anybody gets to be part time pet sitter)
4) Ebay/Amazon chewing up brick and mortar retailers (anybody gets to be a part time retailer)
I need a platform where I can find part time property managers and by that I mean somebody who can show the property around. All other aspect of property management I feel I have automated except for showing the property. I have used neighbor's teenage kids, my already existing tenants from other properties etc in past and that has worked but Im looking for a more professional solution to this. I hate having to explain people on Rover that I have actually got no pets. I understand that with this model reliability will still be an issue but what Im hoping we could solve that problem by flooding the platform with loads of other part-time property managers. The sort of thing I do when my Uber driver does not show up, I simply raise another request on Lyft. If the driver from Uber shows up good or I go with the Lyft driver, point is my options stay open, I can throw a stone with blind folds on knowing it would hit a bird.
Rental Property Investor · Minneapolis, MN · Member since 2019 · 3 posts · 0 votes
7y
We live around some smaller cities (20-30k) with many old properties. The ones in our ballpark seem to be very old (1890-1920) and need more updating and remodeling than would be reasonable to BRRRR even if we got the property for a very low cost. Waiting for the right deal to come along which is hard in this market. We have a HELOC set up and already have one rental that was my home before my wife and I got married. But the first property we purchase solely as a rental has been tough to come by.