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.
I am a new investor from Washington and what is holding me back is figuring out what market to invest in. Ideally we would like to buy a small multifamily property under $200,000. Properties in our area (Seattle) are too expensive. How do i figure out what out of state market i can invest in, and how do I renovate a property out of state?
There are still areas in our state that you may want to consider. Seattle is definitely a beast when it comes to small MF.
Have you branched out to Snohomish, Skagit, and Pierce counties in your search?
@Frank Patalano my financial state and my mobile ability
Can you explain your mobile ability? Are you trying to say to you can't look in different areas of the country or are you saying that you are disabled?
I am a new investor from Washington and what is holding me back is figuring out what market to invest in. Ideally we would like to buy a small multifamily property under $200,000. Properties in our area (Seattle) are too expensive. How do i figure out what out of state market i can invest in, and how do I renovate a property out of state?
There are still areas in our state that you may want to consider. Seattle is definitely a beast when it comes to small MF.
Have you branched out to Snohomish, Skagit, and Pierce counties in your search?
Joel, thanks for the backup for some Washington state experience. I've never even heard of those counties before.
Seattle is in King county. Snohomish borders to the north (cities - Everett, Marysville, Lynnwood) and Pierce borders to the south (cities - Tacoma, Auburn, Puyallup). Skagit county is bordering Snohomish county to the north.
Investor · Wilkes-Barre, PA · Member since 2019 · 10 posts · 5 votes
7y
When I was a kid I watched my grandfather build wealth from real estate investing. He house hacked in the house he lived in (2 family house), owned the house I grew up in (3 family house) and had several condos and vacation rentals across the country. I've been avidly following this website and running my own numbers religiously for the past 6 months. I love my job and what I do for a living but I need to diversify my income because living paycheck to paycheck isn't enjoying life.
I think my problem is I haven't zero'd in on exactly what I want or where I want to get it. I'm also reluctant to pull the trigger because I'm not starting with a lot of money (~20k). I would be taking all my savings and emptying my account, so failure isn't an option. I'm also doing this all based on feel, reading and research. In this field all I have are these forums and webinars, no mentor to help lead me in the correct direction so making decisions can be difficult.
I was looking to invest in multi-family houses in the PA area. I have a mortgage broker, a small down payment saved up (~20k) and an eagerness to get started on my own. However, I'm not from the area and don't have a reliable Real Estate Agent who I can trust (which I consider to be my biggest problem). I've done my research on real estate sites (realtor, zillow, mls) contacted agents but don't feel we are on the same page or they are taking my inquiry seriously.
Brush Prairie, WA · Member since 2019 · 11 posts · 1 vote
7y
Well, I was all ready to start the closing process on my first property but I didn't anticipate a closing cost of almost $4k... So back to waiting and saving I go
Investor · Sierra Madre, CA · Member since 2013 · 60 posts · 24 votes
7y
Great question! Two things hold me back 1) capital and 2) education. I want to know that I'm finding a good deal and I have the money to invest. I also feel like I need to build a team of professionals (contractors, management, attorneys, etc.) so I don't screw anything up.
When I was a kid I watched my grandfather build wealth from real estate investing. He house hacked in the house he lived in (2 family house), owned the house I grew up in (3 family house) and had several condos and vacation rentals across the country. I've been avidly following this website and running my own numbers religiously for the past 6 months. I love my job and what I do for a living but I need to diversify my income because living paycheck to paycheck isn't enjoying life.
I think my problem is I haven't zero'd in on exactly what I want or where I want to get it. I'm also reluctant to pull the trigger because I'm not starting with a lot of money (~20k). I would be taking all my savings and emptying my account, so failure isn't an option. I'm also doing this all based on feel, reading and research. In this field all I have are these forums and webinars, no mentor to help lead me in the correct direction so making decisions can be difficult.
I was looking to invest in multi-family houses in the PA area. I have a mortgage broker, a small down payment saved up (~20k) and an eagerness to get started on my own. However, I'm not from the area and don't have a reliable Real Estate Agent who I can trust (which I consider to be my biggest problem). I've done my research on real estate sites (realtor, zillow, mls) contacted agents but don't feel we are on the same page or they are taking my inquiry seriously.
My suggestion is to continue going to the local monthly real estate meeting until you find the right agent. Or perhaps you'll find an off-market deal through networking. Are you going to house hack a multi on this first one?
Real Estate Agent · Cypress, CA · Member since 2018 · 88 posts · 41 votes
7y
I live in Orange County California and with this expensive market it makes me overwhelmed. I have read and unfortunately listened to people when they say we are due for a recession and now is probably not the right time to buy.
I then looked into OOS investing and the same situation I read forums about bad PM companies and I don’t know how to property manage myself just yet. I guess I think too much of the what if’s instead of the opportunities.
I am trying to network at the moment and with everyone I talk to I learn something new. I’m taking baby steps.
One last fear is my income. I only make minimum wage because more than half my income is cash. But I can put 20% down depending where and how expensive the property is.
Well, I was all ready to start the closing process on my first property but I didn't anticipate a closing cost of almost $4k... So back to waiting and saving I go
Next time you make an offer ask them to throw in the closing cost. sometimes a seller will give a closing credit
Great question! Two things hold me back 1) capital and 2) education. I want to know that I'm finding a good deal and I have the money to invest. I also feel like I need to build a team of professionals (contractors, management, attorneys, etc.) so I don't screw anything up.
Those are the two biggest issues for everybody. There is a lot of discounted and free education available. if you have extra time you could be out there looking for properties, find a deal, and find a partner with money. If you have an amazing deal, you will find the money.
I live in Orange County California and with this expensive market it makes me overwhelmed. I have read and unfortunately listened to people when they say we are due for a recession and now is probably not the right time to buy.
I then looked into OOS investing and the same situation I read forums about bad PM companies and I don’t know how to property manage myself just yet. I guess I think too much of the what if’s instead of the opportunities.
I am trying to network at the moment and with everyone I talk to I learn something new. I’m taking baby steps.
One last fear is my income. I only make minimum wage because more than half my income is cash. But I can put 20% down depending where and how expensive the property is.
Keep educating yourself just make sure you have goals on how long it's going to take. Networking is where you will really succeed. If you have time besides networking be out there educating Yourself by actually looking at deals. if you find a great deal partner up with someone with a little more experience so you both can make money investing is a team sport.
Brush Prairie, WA · Member since 2019 · 11 posts · 1 vote
7y
@Frank Patalano The guy I spoke with was a little abrasive. I asked to speak with the Director of Sales when he comes back from his honeymoon. He did tell me about the closing credit and to ask my lender about it. But man.. I don't know what I am expecting from these people, maybe it is just part of the business, but I cant believe how many rude people I keep running into. It is really discouraging and motivating at the same time.
@Frank Patalano The guy I spoke with was a little abrasive. I asked to speak with the Director of Sales when he comes back from his honeymoon. He did tell me about the closing credit and to ask my lender about it. But man.. I don't know what I am expecting from these people, maybe it is just part of the business, but I cant believe how many rude people I keep running into. It is really discouraging and motivating at the same time.
Lol. The ruder some people are, the more opportunities for the rest of us.
Brush Prairie, WA · Member since 2019 · 11 posts · 1 vote
7y
@Frank Patalano... "More opportunities for the rest of us." Does that mean you help people acquire properties..? Or does it mean it drives business your way because people don't want to work with jerks? What do you do? I see you are a Rental property investor and I see you are linked to the Cash Flow Kings podcast (you should get your podcast added to podcoin BTW), but what else do you do? Are you a realtor, lender..?
@Frank Patalano... "More opportunities for the rest of us." Does that mean you help people acquire properties..? Or does it mean it drives business your way because people don't want to work with jerks? What do you do? I see you are a Rental property investor and I see you are linked to the Cash Flow Kings podcast (you should get your podcast added to podcoin BTW), but what else do you do? Are you a realtor, lender..?
Am I allowed to ask that question?
What I was trying to say is that investing is a team sport. People that are easy to work with get more business.
Just a full-time investor. Sometimes we bring on Partners, sometimes we don't.
@Frank Patalano for me it’s not knowing where to start. I have ideas and thoughts on how to do it and I’ve watched countless hours of videos. But it’s about getting the loan for the property. And that right there is difficult for me because of pass credit challenges.
@Frank Patalano for me it’s not knowing where to start. I have ideas and thoughts on how to do it and I’ve watched countless hours of videos. But it’s about getting the loan for the property. And that right there is difficult for me because of pass credit challenges.
If I were you I would...
1, join my local Real Estate Group. 2, if you have the time to be researching and looking at properties I would find a money and credit partner who has no time.
If you have enough cash to put down 25% go with a hard money loan since they don't care about credit and worry more about the property.
Spartanburg, SC · Member since 2019 · 5 posts · 1 vote
7y
@Frank Patalano The only thing holding me back is finding a lender. I have a few properties I want to pull the trigger on but can’t get approved for anything and I don’t know any hard money lenders.
@Frank Patalano The only thing holding me back is finding a lender. I have a few properties I want to pull the trigger on but can’t get approved for anything and I don’t know any hard money lenders.
The easiest way to find hard money lenders is to network at your local Investment Group. If you're not a member yet you should be. we have at least five in our local group
Contractor · WI · Member since 2019 · 34 posts · 15 votes
7y
I am looking to start acquiring rentals but am using my capital which isn’t excessive at this point to do specs and fix/flips for income. I have came across some properties I believe would cash flow but don’t have the 20% to put down. I know there are other options outside of conventional lending but am a bit intimidated by them as they are relatively foreign to me. I’ve had many conventional loans and am not necessarily fearful of risk but the unknown of investors, partnerships or special financing is uncharted terrain. Need to make time for networking to meet more people who’ve used other options successfully.