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 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.
Hi @Frank Patalano,
Thank you for your reply. What type of property calculator are you using to analyze properties? I used the maximum on this website. Should I be analyzing deals on Redfin, Zillow, etc?
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.
Hi @Frank Patalano,
Thank you for your reply. What type of property calculator are you using to analyze properties? I used the maximum on this website. Should I be analyzing deals on Redfin, Zillow, etc?
I don't know anything about different deal different deal analyzers. I have my own spreadsheet on Excel. I'm sure there are plenty out there available.
Rental Property Investor · Nashville, TN · Member since 2017 · 38 posts · 15 votes
7y
I'm kind of at a stand still for the moment. I have 2 doors and a flip I'm about 80% thru. Had an issue w the latest rental w bedbugs and had to move the tenants out to fully treat. Balancing the carrying cost expense along w the newer rental now. I'm sure it will work out but just cash poor right now. A little scary. I'm probably 2 weeks away from being able to move new tenants in the latest rental. Should smooth things out. When the Flip sells, should net about 25k, just NOT THERE YET! Patience Grasshopper, my wiser self tells me. So until then, yeah, I don't feel like I can risk another deal until I recover some cash. What would you do as far as actions?
I'm kind of at a stand still for the moment. I have 2 doors and a flip I'm about 80% thru. Had an issue w the latest rental w bedbugs and had to move the tenants out to fully treat. Balancing the carrying cost expense along w the newer rental now. I'm sure it will work out but just cash poor right now. A little scary. I'm probably 2 weeks away from being able to move new tenants in the latest rental. Should smooth things out. When the Flip sells, should net about 25k, just NOT THERE YET! Patience Grasshopper, my wiser self tells me. So until then, yeah, I don't feel like I can risk another deal until I recover some cash. What would you do as far as actions?
I agree patience is key. Take your time. Keep taking action. Get that Flip done.
Hi Frank, what's holding me back is not being able to find the place to buy the property here in Puerto Rico, since I sometimes feel like maybe long term rentals aren't a good idea because I fear I won't be able to find tenants.
See if you can find a local Real Estate Meetup group. If you can't, start one yourself and in no time you will have others looking to you for advice.
Hi Frank, what's holding me back is not being able to find the place to buy the property here in Puerto Rico, since I sometimes feel like maybe long term rentals aren't a good idea because I fear I won't be able to find tenants.
See if you can find a local Real Estate Meetup group. If you can't, start one yourself and in no time you will have others looking to you for advice.
Thanks Frank, I've thought about doing this. I'm going to start one soon.
Trusting contractors out of state. They can just break something and tell me its broken. They can overcharge and I wouldn't know any better
Contractors can be an issue. I would get them as a referral from your agent or your attorney. Just make sure that they are licensed and insured. I've had friends buy in the Orlando area and they have never had a problem.
@Frank Patalano I would have to say the biggest thing holding my wife and I back is “ not knowing where to start”
The main way to start is by educating himself. Then you need to figure out what your goals are. I'm not sure where you live but if you live in San Francisco you might be buying for appreciation. If you live in Nashville you might buy a multi for cash flow. If you need more help, please provide more info.
Rental Property Investor · Harrison, AR · Member since 2017 · 15 posts · 0 votes
7y
@Frank Patalano so what is holding me back is financing. We are in a financial standing as such, where we just don't have the money to put down to purchase our first property yet. So we are working on saving up enough money for a considerable down payment.
@Frank Patalano so what is holding me back is financing. We are in a financial standing as such, where we just don't have the money to put down to purchase our first property yet. So we are working on saving up enough money for a considerable down payment.
If you have time to be looking at properties perhaps you can find a money partner who has no time to do that first deal.
Rental Property Investor · Harrison, AR · Member since 2017 · 15 posts · 0 votes
7y
That would be great, Unfortunately i live in a small town of only about 12,000 folks and I would not even know where to start looking for a money partner. My wife and I make great money for the area so it would only take us about 6 months to save up enough down payment for a $100,000 property. So I am EXTREMELY motivated to purchase my first property and continue on from there. I am straight up tired of making someone else wealthy!!!
Thanks for the feedback! I live in Lawrenceville, GA a suburb north of Atlanta. Our goals are to obtain passive income through multiple rental properties. We believe we’re going to get started by using our home which we purchased in 2012 as a foreclosure for 150k and appraised at about 250k currently. I want to sell but my wife doesn’t. Just not sure how to leverage the equity to do some upgrades and purchase a rental property....
That would be great, Unfortunately i live in a small town of only about 12,000 folks and I would not even know where to start looking for a money partner. My wife and I make great money for the area so it would only take us about 6 months to save up enough down payment for a $100,000 property. So I am EXTREMELY motivated to purchase my first property and continue on from there. I am straight up tired of making someone else wealthy!!!
Okay. It's good that you have a plan so stick with it.
Thanks for the feedback! I live in Lawrenceville, GA a suburb north of Atlanta. Our goals are to obtain passive income through multiple rental properties. We believe we’re going to get started by using our home which we purchased in 2012 as a foreclosure for 150k and appraised at about 250k currently. I want to sell but my wife doesn’t. Just not sure how to leverage the equity to do some upgrades and purchase a rental property....
If you don't sell, you could probably get a HELOC for up to 90% of your equity. If you are not going to do a househack you should probably keep it.
@Jacob Gelinas what made you decide to take the leap on this house?
I don't think Jacob's ever answered that question. I know for me, I was getting sick and tired of the real estate market going up and up while I had my money sitting in a bank account.
New Orleans, LA · Member since 2019 · 19 posts · 4 votes
7y
@Frank Patalano what’s holding me back is the feeling that I don’t know enough and that I need to do more: research more, learn more, network more, save up more.
@Frank Patalano what’s holding me back is the feeling that I don’t know enough and that I need to do more: research more, learn more, network more, save up more.
Those are all good goals. Keep working on them. I will say that you will never know enough to feel comfortable. I still make mistakes once in a while in real estate.
Try to look at so many properties a week. Visiting properties is free.
I moved to Chicago roughly about 3 years ago around the same time I landed my current job as a construction superintendent.
The idea of real estate investing didn’t come until about a year ago. It all seemed so easy until I began looking for investment homes.
What was I looking for? Where do I start? Am I suppose to have 100k to begin?
Long story short, I didn’t know what I was doing.
What’s holding me back?
1. Finding the right deal
2. Little knowledge in the market. ( work requires 95% travel )
3. Can I finance my investment or should start breaking the piggy.
Investing does depend on what your goals are. If you don't own a house now I would house hack a multifamily. You move into one of the units and rent out the others.
You can usually buy it with a low down payment.
Since you're traveling so much it's almost like buying an out-of-state property. You will have to find an agent that will be your eyes and ears. Basically they will take pictures and provide you with many details about the home digitally.
New to Real Estate · Peachtree Corners, GA · Member since 2018 · 5 posts · 3 votes
7y
@Frank Patalano The only thing holding me back now is time. In a few months I will have enough saved up to buy my first property (I'm looking to house-hack a duplex). In the mean time I'm analyzing deals, reading books, watching podcasts, and trying to get better at putting myself out there. With all the privileges and resources I'm so fortunate to have, I feel it would be wrong for me not to take the opportunity that I have in front of me and go after it with all my effort. It'd be more risky not to go out and invest!!! Our time on earth is short!!!
@Frank Patalano The only thing holding me back now is time. In a few months I will have enough saved up to buy my first property (I'm looking to house-hack a duplex). In the mean time I'm analyzing deals, reading books, watching podcasts, and trying to get better at putting myself out there. With all the privileges and resources I'm so fortunate to have, I feel it would be wrong for me not to take the opportunity that I have in front of me and go after it with all my effort. It'd be more risky not to go out and invest!!! Our time on earth is short!!!
It sounds like you are doing fine. You have a plan for when you are getting the money and you are doing things to get ready. Nice Job.