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 · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
You could go that way. If I were you I would actually be trying to buy a 4 unit and move into one to start. Lower down payment, better terms, higher income. My partner Jimmy actually house hacked two 4 units in a row before buying a single family home.
Mainly my credit. I've had a few properties in the past but I got divorced and I currently rent. Getting closer to being approved for a mortgage.. feel like I need to buy my primary residence before I get any rentals.
Flipper/Rehabber · Saint Louis, MO · Member since 2016 · 5 posts · 3 votes
7y
I just recently bought my first investment property. I got it through a tax sell. Which means it was sight unseen. I finally got the deed last week and was able to enter the property and it wasn’t bad at all. There was a lot of junk everywhere but it was currently being rehabilitated before whoever moved out. It was also fully furnished. I’m going to sell most of the stuff. But over all it was a great buy.
North Aurora, IL · Member since 2015 · 5 posts · 5 votes
7y
@Jacob Gelinas I totally agree with you, even though I’ve done this in the past. I totally have analysis paralysis. Now I’m just sitting and waiting for the crash to potentially get in.
Raleigh, NC · Member since 2019 · 4 posts · 3 votes
7y
@Frank Patalano Hi Frank, thanks for the question. What's holding me back is coming up with the down payment while paying off debt. More specifically my husband and I have about $100k in student loans with an average interest rate of about 5%. We can have those paid off in 2 years if we throw everything we have at it.
Just learning about REI though I'm not sure if that's the best decision when we could be using that discretionary income as a DP on our first investment property. So that's been the challenge.
Rental Property Investor · Wiesbaden, Germany · Member since 2019 · 49 posts · 50 votes
7y
Being stationed in Germany with the Army is holding me back! Out of state investing is one thing, but for some reason out of country investing seems more daunting (probably all in my head). But, moving back to the states in 2 months, so my excuse has a shelf life!
Rental Property Investor · Lubbock, TX · Member since 2018 · 54 posts · 30 votes
7y
@Frank Patalano I just bought my first home before I learned about BiggerPockets. I dropped all my capital into that and I haven’t found a partner to do a deal with to make up the difference. Probably because I’m unsure about networking and I’m afraid of losing the limited funds I have to take care of my family.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@Cody Bradley I've been where you are currently at. Owned homes. Owned rentals. Got divorced. Started all over again, including renting a duplex. I decided to buy a duplex as my first purchase after divorce. FHA loan. Best decision I had made in a long time. And I also had two kids half the time while living in that duplex. They didn't mind at all. So, buy your primary residence and your rental, a 2-4 plex!
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@Jack Zheng My realtors have found me off market properties. Multi families are tough to find around here. They seek out those that are renting out their units, and ask if they'd like to sell instead. Or, they send "yellow letters" with a set of criteria to those targets who may decide to sell their multi family.
Rental Property Investor · Plymouth, MI · Member since 2018 · 5 posts · 0 votes
7y
The lack of a process of due diligence.
I have a solid process for running the numbers, but lack a good process of due diligence. I recently "almost" offered on a property. Had the foresight to get in touch with a realtor for some comps and in that process, he highlighted to me that though the numbers looked good on paper, in his experience, properties in that particular area never performed well. I feel so grateful to this realtor for spending his time with me (which we all know cost him time and didn't yield any return).
Specialist · Boyds, MD · Member since 2014 · 1 post · 1 vote
7y
@Frank Patalano
Went to an RE workshop this past weekend. I am in Economic hardship the work shop people tell me I can make wholesale deals and get out of this money hole I am, but a realtor friend I have known for 40 years and knows that I have no money, tells me to get a 5 day a week job rather than 3 day a week as my current work schedule is. Get my debts paid off then pursue RE investing. I am really confused.
I have been investing since around 1980 but want to get into syndication. I think it's just the process that is a bit intimidating. I was wondering, for those of you that do syndicate, did you invest in some syndication's before you did your own syndication? I am sure that I am an accredited investor, due to asset and income, but it is only on SFR where I have the experience.
Sam did. I didn't. But, Mike, @Sam Grooms is a CPA with SEC reporting background so his perspective on numbers is likely very different from yours. Yet, while he did not have any operational experience, I did for 12 years.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Awesome.
Sounds like it's time for another one. Originally posted by @Dylan Brown:
I just recently bought my first investment property. I got it through a tax sell. Which means it was sight unseen. I finally got the deed last week and was able to enter the property and it wasn’t bad at all. There was a lot of junk everywhere but it was currently being rehabilitated before whoever moved out. It was also fully furnished. I’m going to sell most of the stuff. But over all it was a great buy.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
If the hold time is long term and it cash flows now, don't wait.
We don't know if the correction is coming in 3 weeks, 3 months, or 3 years.
Originally posted by @Account Closed:
@Jacob Gelinas I totally agree with you, even though I’ve done this in the past. I totally have analysis paralysis. Now I’m just sitting and waiting for the crash to potentially get in.
North Aurora, IL · Member since 2015 · 5 posts · 5 votes
7y
I don't want to be a landlord anymore, unless when the crash comes and I can scoop up a good deal. Otherwise, want to get started with flipping. But just trying to educate myself right now. I picked up the J Scott flipping book (2013 version) from BP, so far its pretty good.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
If you can buy a property that returns better than 5% then you could buy the property. Real estate gives you a number of benefits, including tax benefits. The profit on rents can help you pay down your student loan quicker. My partner Jimmy bought his first four unit when he had about $70,000 in student loans.
@Frank Patalano Hi Frank, thanks for the question. What's holding me back is coming up with the down payment while paying off debt. More specifically my husband and I have about $100k in student loans with an average interest rate of about 5%. We can have those paid off in 2 years if we throw everything we have at it.
Just learning about REI though I'm not sure if that's the best decision when we could be using that discretionary income as a DP on our first investment property. So that's been the challenge.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Join a couple local real estate investment groups. I didn't start out looking for partners but as you get more involved and knowledgeable you just start to connect with people. I am currently in five or six different Partnerships.
Investor · Missouri City, TX · Member since 2015 · 70 posts · 19 votes
7y
Buying a rental to me was easier than doing a flip on a SFH. I did my first flip over a year ago... but now that that fear is gone... can't get enough of it.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Losing money is an important concern. Just try to stay conservative with your estimates. If possible you should probably partner on your first deal so that you share the risk and the reward.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
A Syndication is when a group of people come together to purchase a larger multi-family complex. New investors won't be able to participate unless you are accredited. There are a lot of rules to protect new investors. If you're new to investing and want to invest but don't have a lot of money you should consider crowdfunding.