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.
@Frank Patalano I’ve just started with bigger pockets. I have two rentals that I manage that are rent to owns where my grandfather holds the note.
I’ve been self employed (cleaning company) and have tried to put all my pennies into growing the business and not focusing on paying myself first - averaging $25-35k/yr.
This year I’m ditching the employees, working my butt off and paying myself as much as possible ($12-15k/mo) saving almost all of it for my “first bank mortgaged” property.
The problem is since I’m self employed they are going to want to see my last two years of returns where I made very little. I’m working on getting pre-approved, but may have to save cash for my first $40-75k deal this year or just wait a year before I can prove I have the money and get financing
Couple options.
1. Find a partner who has money but no time.
2. Buy a property using hard money.
3. Seller financing is rare but possible.
4. Wholesale a deal or two to generate some money.
Willingness to spend. Right now we are working on building a cash reserve and maxing out retirement contributions since it will have a longer time to grow now as opposed to contributing later in life.
Aside from the retirement fund goals, we are making some home improvements, including adding an in-law suite with a private entrance that we rent our either long term or airBnB.
We want to start our real estate journey from a position of financial strength.
I see your point but will say keep looking for opportunities. If you find a great deal you will find the money.
One time I bought a house no money down at a great price because there were title issues. Still own it and its worth 4 times what I bought it for.
Berlin, Berlin · Member since 2017 · 13 posts · 3 votes
7y
@Frank Patalano
I think for a lot of investors, including myself, you want to make sure you do it right. I know that a real estate investment will never be perfect and you will will always learn as you go, but I believe it is important to educate yourself as much as possible before jumping right in. This takes time and I believe that’s what holds a lot of people back. The fear of failure and thinking your never ready. That being said. Once you have a plan in place, than it’s time to trust the process and get involved.
Elmont, NY · Member since 2018 · 15 posts · 1 vote
7y
@Frank Patalano. Thanks for the great question. For me it's been finding the time and getting enough education to feel comfortable in front of sellers. I'm ready to execute this week thanks to this forum and the bigger pockets tools. I just became a Pro member so my confidence level just increased significantly now that I have access to the wealth of BP resources. Access to financing was also an issue. I'm planning to research crowdfunding at your suggestion. Is there a BP podcast and/or other BP resource on crowdfunding? Thanks
I think for a lot of investors, including myself, you want to make sure you do it right. I know that a real estate investment will never be perfect and you will will always learn as you go, but I believe it is important to educate yourself as much as possible before jumping right in. This takes time and I believe that’s what holds a lot of people back. The fear of failure and thinking your never ready. That being said. Once you have a plan in place, than it’s time to trust the process and get involved.
I know I'm going to fail. I feel quite often but it's okay because I learn from those mistakes. Written goals are super important. Consistently working on those goals every day will lead to success.
@Frank Patalano. Thanks for the great question. For me it's been finding the time and getting enough education to feel comfortable in front of sellers. I'm ready to execute this week thanks to this forum and the bigger pockets tools. I just became a Pro member so my confidence level just increased significantly now that I have access to the wealth of BP resources. Access to financing was also an issue. I'm planning to research crowdfunding at your suggestion. Is there a BP podcast and/or other BP resource on crowdfunding? Thanks
@Frank Patalano Thank you for responding yes I am trying today went looked for properties on Craiglist which are duplex nice homes, I made up advertisements for stores and banners that I designed and just getting printed, also I wrote letters and sending them out. I also found out one of my properties nice brick home is HUD owned and though my bank so tomorrow I am going into my bank and calling HUD. I placed a ad " I want To buy Homes" though Craiglist because I do have a cashbuyer. Presently looking for a FB page and advertising though newspaper than I'm thinking to sent out letters to all good deals in local foreclosure list that I have. I just started maybe 5 days but yes driving for dollars I will do . Thank you.
@Frank Patalano Thank you for responding yes I am trying today went looked for properties on Craiglist which are duplex nice homes, I made up advertisements for stores and banners that I designed and just getting printed, also I wrote letters and sending them out. I also found out one of my properties nice brick home is HUD owned and though my bank so tomorrow I am going into my bank and calling HUD. I placed a ad " I want To buy Homes" though Craiglist because I do have a cashbuyer. Presently looking for a FB page and advertising though newspaper than I'm thinking to sent out letters to all good deals in local foreclosure list that I have. I just started maybe 5 days but yes driving for dollars I will do . Thank you.
Sounds like you are taking massive action. Keep it up.
Financial Advisor · Miami, FL · Member since 2018 · 6 posts · 4 votes
7y
Since I like to stick to wholesaling, I like to find the right people with whom to collaborate, especially remotely because there are great deals in Ohio, for instance, and I would like to have the confidence to make sure we are all transparent and upright. Would love to get feedback on this aspect of establishing trust and transparency from afar. I like transparency on the table as we are all here to make money... but a lot of people seem to work on assumptions and seem to not respond to direct style so I find myself treading waters...feedback is welcomed.
Since I like to stick to wholesaling, I like to find the right people with whom to collaborate, especially remotely because there are great deals in Ohio, for instance, and I would like to have the confidence to make sure we are all transparent and upright. Would love to get feedback on this aspect of establishing trust and transparency from afar. I like transparency on the table as we are all here to make money... but a lot of people seem to work on assumptions and seem to not respond to direct style so I find myself treading waters...feedback is welcomed.
I only work with local wholesalers that I know and trust. I always know their numbers.
I've never dealt with an out of state wholesaler.
The best way to establish trust is to meet up with a wholesaler through a referral.
Knowledge and finance is the two main things holding me back, for one I am a recent graduate from college with student loans as you can imagine and to be honest I haven’t landed that great job yet that’ll free more cash. With that being said, I currently only have about $7,000 saved up compared to a lot of other people I see on this forum I need to have at least around $25,00 to $30,000 in order to fully prepare to buy my first property. I have limited knowledge of real estate so for now I am just sitting back observing, learning, and absorbing all the things everyone is saying across different forums.
Knowledge and finance is the two main things holding me back, for one I am a recent graduate from college with student loans as you can imagine and to be honest I haven’t landed that great job yet that’ll free more cash. With that being said, I currently only have about $7,000 saved up compared to a lot of other people I see on this forum I need to have at least around $25,00 to $30,000 in order to fully prepare to buy my first property. I have limited knowledge of real estate so for now I am just sitting back observing, learning, and absorbing all the things everyone is saying across different forums.
Everyone is at a different spot in their marathon on life. $7K should be the size of a small emergency fund. You shouldn't even count that.
Start generating income first. It can be in real estate. Learn about wholesaling. Learn about house hacking.
Set some goals to be learning and networking. If you find a great deal the money will come.
@Frank Patalano Money,Can’t get any loans and no one I know has that much money to lend me.
So a couple of choices.
#1. Start to expand your network
#2. Partner on the first deal
#3. Wholesale your first deal
Have you read Rich Dad, Poor Dad? The worst thing that you can say is I can't afford it. You need to think, how can I afford it? Open that creative mind.
Rental Property Investor · Orlando, FL · Member since 2019 · 7 posts · 1 vote
7y
@Frank.
I waited the past 4 years because financially I know I'll need to house hack my first property, and I didn't want to move while my kids were in school. However, with 2 over 18 and the last one there within 18 months, I'm definitely looking for the right property now. Haven't found it yet, but I'm learning more and more on how to find better deals and only been searching for the past 2 months. Hope to hit gold (or at least copper) before Christmas.
Workong on learning how to wholesale in the immediate future.
I waited the past 4 years because financially I know I'll need to house hack my first property, and I didn't want to move while my kids were in school. However, with 2 over 18 and the last one there within 18 months, I'm definitely looking for the right property now. Haven't found it yet, but I'm learning more and more on how to find better deals and only been searching for the past 2 months. Hope to hit gold (or at least copper) before Christmas.
Workong on learning how to wholesale in the immediate future.
I was gonna say. Christmas??? 🤯
But if you are learning wholesaling first, that's fine.
Rental Property Investor · Orlando, FL · Member since 2019 · 7 posts · 1 vote
7y
Sooner would be better, I fully agree. Working on my networking and ability to find off-market deals now. Pretty much nothing in the MLS in this town will cash flow without a bigger down payment than I currently have.
Learning how I might be able to tap my state retirement account through a self-directed option and an LLC. FL doesn't like us having any real access to our own money through the state retirement system.
Investor · Westerly, RI · Member since 2019 · 45 posts · 9 votes
7y
@Frank Patalano
I think my problem is the analysis paralysis as well. I use the calculators and run the #'s but not sure if they're right. I just don't want to make a bad decision. I need to network more also. I plan on attending some local meet ups in RI.
Sooner would be better, I fully agree. Working on my networking and ability to find off-market deals now. Pretty much nothing in the MLS in this town will cash flow without a bigger down payment than I currently have.
Learning how I might be able to tap my state retirement account through a self-directed option and an LLC. FL doesn't like us having any real access to our own money through the state retirement system.
It's not just Florida. Most states are like that with the state system.
Realtor · Paramus, NJ · Member since 2019 · 71 posts · 35 votes
7y
Funding! I just started my real estate agent career but have listened to most of the BP podcasts. I feel like I have all of the right tools to my disposal especially since my father is a general contractor. I’m going to challenge myself and see if I can put an offer this month if there is a good deal around my neighborhood. Prices are just so high here though.