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.
Rental Property Investor · Hammond, IN · Member since 2017 · 17 posts · 0 votes
7y
@Frank Patalano well I have an appointment tomorrow and if I’m thinking out the numbers correctly it’s a good deal. I just don’t know how best to approach it. There’s a realtor attached, but I’ve already gotten the price down from what was listed.
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.
I would keep your businesses separate. Keep the spec and fix and flips going. But start ti build partnerships to invest in long term cashflow.
@Frank Patalano well I have an appointment tomorrow and if I’m thinking out the numbers correctly it’s a good deal. I just don’t know how best to approach it. There’s a realtor attached, but I’ve already gotten the price down from what was listed.
Northern Illinois · Member since 2019 · 5 posts · 0 votes
7y
What's holding me back? Unsure on how to proceed and when is best.
One part of me says "now, duh!" and yet when I finished a call with my credit union the other day they were saying "well your debt to income is too high" and "you won't qualify for a heloc" which brought me down a bit. On the bright side all of my debt will likely get paid into a new home equity loan and at some point bring my FICO and debt/income ratio back into balance.
I do have a friend of my wife's I want to desperately help because it would benefit both of us. Her house is in shambles and winter was harsh on her and the family. Roof is leaking, she needs three bedrooms but only has two and much of the house needs serious work and mold removal due to the leaks. They only spend about $740 per month in mortgage, own around $74k on the house which I believe would value around $125 when fixed. After refi there should be around $50k to pull out, or so, assuming a bank will it.
My fear is I would need to apply for a hard money loan and I have no idea what this entails or what risk I'm putting myself and my wife into.
Rental Property Investor · Member since 2019 · 62 posts · 46 votes
7y
@Frank Patalano
I’m in Los Angeles area and like one person mentioned above, I’m also looking to invest in outside state with same budget of $150k below. Currently I’ve been researching in Philadelphia, particularly interested in areas near UPenn and Drexel. It’s hard to know true values of each area. As I’ve been learning through some friends there that their market has been appraising in value even to double digits. As A California, everything seem cheap to me out there but I have to stop myself often times and learning to think like the locals there. What’s stopping me is fear of buying in bad areas that I’ll have a hard time finding good tenants. Also, investing out of state is scary somehow since I too, like to be in control and hands on about my rental properties.
@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.
I'd say there is WAY more money out there than deals. I had one week I talked to about 12 lenders. They wanted to give me crazy terms like 10% down on a flipper loan with them financing the fixup even. Usually you need 2 of 3 things for a loan: Credit history, work history, income history. Hard money you just need some cash.
My trouble is lack of good deals. Partially due to extreme competition in my area. Partially due to my stubbornly sticking to my numbers.
Rental Property Investor · Sedan, KS · Member since 2016 · 125 posts · 92 votes
7y
@Frank Patalano i can't tell you how many times I have heard that lately and it's so true. By staying inside of my comfort zone i have essentially created a whole other full time job and twice the headache with 1 single rental. I've basically broken every rule in the book and through some act of pity have a close friend for a tenant now who keeps a clean home and I'd take a bullet for. If it weren't for him I would have probably just signed it away to be done with it.
I can't remember exactly which episode of the podcast i heard it on but they were joking about how you never forget the lessons you learned the hard way.
Had i just jumped in and found a deal i needed and found help with i could have saved a few sleepless nights.
I'm not sure if i've ever been so excited to be a nervous wreck but i am ready for it now.
Rental Property Investor · Sedan, KS · Member since 2016 · 125 posts · 92 votes
7y
@Pawel Cwierz call me a cook all you want but i think it is just fear that is taught from an early age. "You can be anything you want" they say. Then they list a bunch of professions. I've been a blue collar all my life so don't get me wrong. But why on earth would I want to be a programmer when i can rent them the building?
Rental Property Investor · Sedan, KS · Member since 2016 · 125 posts · 92 votes
7y
@Isaac Pyle why only a duplex? It seems to be pretty standard and a good deal. So why do you want it? They are mostly already picked over 7 times. If you are 19, in college, and in a high priced area why buy anything? If you can't invest the way you want then you either need to change how you are investing to get there or what you are investing in. Use your strengths and make your weaknesses new strengths. Look into wholesaling. Consider becoming a realtor instead of taking spring break. Heck. If i were you i just would try to not stress and try to find investment clubs.
Rental Property Investor · Sedan, KS · Member since 2016 · 125 posts · 92 votes
7y
@Frank Patalano i recently enjoyed an amazing meal and the best veiw i have ever seen. The guy was bankrupt in the late 80s and is now worth near 50 mill.
What's holding me back? Unsure on how to proceed and when is best.
One part of me says "now, duh!" and yet when I finished a call with my credit union the other day they were saying "well your debt to income is too high" and "you won't qualify for a heloc" which brought me down a bit. On the bright side all of my debt will likely get paid into a new home equity loan and at some point bring my FICO and debt/income ratio back into balance.
I do have a friend of my wife's I want to desperately help because it would benefit both of us. Her house is in shambles and winter was harsh on her and the family. Roof is leaking, she needs three bedrooms but only has two and much of the house needs serious work and mold removal due to the leaks. They only spend about $740 per month in mortgage, own around $74k on the house which I believe would value around $125 when fixed. After refi there should be around $50k to pull out, or so, assuming a bank will it.
My fear is I would need to apply for a hard money loan and I have no idea what this entails or what risk I'm putting myself and my wife into.
I've had my personal bank tell me that my debt to Income was too high. But only my personal bank.
Not one other has ever given me a problem. Are you looking at Commercial loans?
Be careful helping others. While it feels good I've been burned before. They expect you to be their savior and then if it doesn't work out 100% it's your fault.
I’m in Los Angeles area and like one person mentioned above, I’m also looking to invest in outside state with same budget of $150k below. Currently I’ve been researching in Philadelphia, particularly interested in areas near UPenn and Drexel. It’s hard to know true values of each area. As I’ve been learning through some friends there that their market has been appraising in value even to double digits. As A California, everything seem cheap to me out there but I have to stop myself often times and learning to think like the locals there. What’s stopping me is fear of buying in bad areas that I’ll have a hard time finding good tenants. Also, investing out of state is scary somehow since I too, like to be in control and hands on about my rental properties.
Step 1. Find an agent. In today's high tech world Investing across the country is so much easier. Through social media we meet people from around the country. You can have a virtual meeting to discuss goals.
Step 2. Study the market. Look at crime maps and sales data.
Step 3. If you still don't feel comfortable take a weekend out there to get a feel of neighborhoods.
I own property that I've never been to with tenants that I've never met.
@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.
I'd say there is WAY more money out there than deals. I had one week I talked to about 12 lenders. They wanted to give me crazy terms like 10% down on a flipper loan with them financing the fixup even. Usually you need 2 of 3 things for a loan: Credit history, work history, income history. Hard money you just need some cash.
My trouble is lack of good deals. Partially due to extreme competition in my area. Partially due to my stubbornly sticking to my numbers.
There is nothing wrong with sticking to your numbers. Sometimes they might hold you back because you were spoiled by prices 10 years ago or you are lying to yourself and holding off for the perfect deal.
The good news is that real estate is an inefficient market. A seller might have became motivated 5 minutes ago and you are the first one that he is speaking with. Or you can be creative when purchasing a property that squeezes out more value in ways another investor hasn't even noticed yet. Such as buying a rehab and keeping the classic Corvette in the garage. Or buying a house through seller financing at 4%.
I get deals through networking like crazy especially with wholesalers. But the best deals are the ones that you make yourself.
@Frank Patalano i can't tell you how many times I have heard that lately and it's so true. By staying inside of my comfort zone i have essentially created a whole other full time job and twice the headache with 1 single rental. I've basically broken every rule in the book and through some act of pity have a close friend for a tenant now who keeps a clean home and I'd take a bullet for. If it weren't for him I would have probably just signed it away to be done with it.
I can't remember exactly which episode of the podcast i heard it on but they were joking about how you never forget the lessons you learned the hard way.
Had i just jumped in and found a deal i needed and found help with i could have saved a few sleepless nights.
I'm not sure if i've ever been so excited to be a nervous wreck but i am ready for it now.
Investing is a team sport. Stop trying to do everything yourself.
@Frank Patalano i recently enjoyed an amazing meal and the best veiw i have ever seen. The guy was bankrupt in the late 80s and is now worth near 50 mill.
If you want to work for it, you'll get it
DM me more about this story. I love hearing about people who have gone from failure to success.
Rental Property Investor · Arlington, TN · Member since 2019 · 9 posts · 0 votes
7y
@Frank Patalano even though I own two rental properties now, I’m fearful of diving in to investing with intent. You see, I lived in those homes then rented them out when I moved away, during my military days. I have my eyes on a duplex and the initial numbers look good. I guess I’m just fearful of overpaying because we’re not overly familiar with the area.
@Frank Patalano even though I own two rental properties now, I’m fearful of diving in to investing with intent. You see, I lived in those homes then rented them out when I moved away, during my military days. I have my eyes on a duplex and the initial numbers look good. I guess I’m just fearful of overpaying because we’re not overly familiar with the area.
It's based on cash flow. You have more experience than many people buying right now. If you can make enough profit every month then do it. You know what typical expenses should be. Analyze the deal.
Rental Property Investor · West Palm Beach, FL · Member since 2019 · 1 post · 0 votes
7y
@Frank Patalano I would say that the biggest thing holding me back is finding the right deals. I have trouble finding anything on the MLS that sayisfies my cash flow criteria. I'm working on creating off market lists, but my first mailers had no responses. Also working to network, but thats a weak area in my skill set. Id love to get a few more properties under my belt before the next recession so that I have my processes optimized and ready to roll when the deals come available.
@Frank Patalano I would say that the biggest thing holding me back is finding the right deals. I have trouble finding anything on the MLS that sayisfies my cash flow criteria. I'm working on creating off market lists, but my first mailers had no responses. Also working to network, but thats a weak area in my skill set. Id love to get a few more properties under my belt before the next recession so that I have my processes optimized and ready to roll when the deals come available.
Just shoot for one property to Start. It does not need to be the perfect deal. But it needs to Cash flow. MLS is not going to have any good deals in a hot Market. As you're networking get in touch with wholesalers.
Rental Property Investor · San Diego, CA · Member since 2018 · 242 posts · 234 votes
7y
@Mark Bommarito
I would pick Az as my first place.
Learn the Phoenix market and pull the trigger. Don’t wait.... the best thing I ever did was buy my first unit at 26. Even if the market rolls over you can buy more on he way down. I did this in 2008 and made a killing.
Rental Property Investor · San Pedro, CA · Member since 2019 · 7 posts · 0 votes
7y
The main thing holding me back is knowledge. I’m still trying to learn how to analyze the deals with more confidence and finding a good deal in the Southern California market.