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 · Ashburn, VA · Member since 2018 · 64 posts · 29 votes
7y
Ok it looks like im on the cusp of finally going to look at some multifamily properties this weekend in Baltimore. Yay!!! I've been analyzing deals like a madman recently in order to provide my Agent a list of properties I would like to see. I wouldn't say I'm nervous but maybe more anxious that I'm making the right decision according to the properties i have analyzed. I use to live in Baltimore about 8 years ago and it looks totally different recently. When looking on the MLS there are several homes that are priced way over how much income they bring in. How do you approach this? Do you just scratch that property off and go to other properties that fit your criteria? Also while going to see these properties is there something else i should be looking out for or asking my agent? Hopefully by the end of this weekend I'll have an offer accepted for my first investment property.
Just started my career and have been doing a lot of reading. I live in San Diego and the market is pretty tough for a newbie so I've been increasing my knowledge base on long distance RE investing.
What's holding me back is the lack of cash to Kickstart BRRRR system.
I have VA loan available but current market doesn't give me the confidence to buy and house hack for a few years... More research needed on my part.
Set written goals. What are you going to accomplish over the next week or month?
Ok it looks like im on the cusp of finally going to look at some multifamily properties this weekend in Baltimore. Yay!!! I've been analyzing deals like a madman recently in order to provide my Agent a list of properties I would like to see. I wouldn't say I'm nervous but maybe more anxious that I'm making the right decision according to the properties i have analyzed. I use to live in Baltimore about 8 years ago and it looks totally different recently. When looking on the MLS there are several homes that are priced way over how much income they bring in. How do you approach this? Do you just scratch that property off and go to other properties that fit your criteria? Also while going to see these properties is there something else i should be looking out for or asking my agent? Hopefully by the end of this weekend I'll have an offer accepted for my first investment property.
If you can find enough properties that fit your criteria scratch the others ones off. If not look at a couple anyway.
Yeah. Ask about the rents. If he knows of any new deals coming on the market. etc.
Investor · Fresno, CA · Member since 2016 · 222 posts · 237 votes
7y
What a great question! I've been thinking on this a lot yesterday. I completed my first live-in flip/house-hack in early 2018, and then transitioned it to a full time rental in late 2018 (I still own). I was and am saving 50% of my income, but Denver properties are expensive. So I spent a month in late 2018 getting my real estate license (it's pretty darn easy). This way I could make a little side money, and also obtain properties fairly cheaply. I can now easily afford more properties, but am a bit stuck. Here's why:
1) I've set up an out-of state team (agent, contractor, property manager, external wholesalers, lender) to take down deals, but am not finding ones that meet my criteria as I'm only looking on the MLS and from wholesalers. Have only made one offer in the last 2 months. I'm not even trying to do no money deals!
2) I hesitate to buy another Denver property, as I really dislike my dayjob. But I don't want to lose that sweet W-2 financing ability for more loans. So I want to stay mobile to take jobs elsewhere more easily.
3) I'm afraid to spend money on marketing for off-market deals in the other state. I am concerned that I'll spend a ton without seeing a return. I also don't have a boots on the ground partner for this purpose, so may struggle to convert these leads to deals.
4) I would like being a real estate agent (I already have my license in CO), but question my ability to make more than I currently do. I also don't want to lose the W-2 financing for 2 years. And finally, lead acquisition costs in real estate can be quite high. They are at least for my brokerage.
So for now, I'm interviewing for better day jobs, both in Denver and in the out-of-state city I previously mentioned. Plan is to purchase another property wherever that new job is, and kick things off again from there. Keep hitting the MLS and wholesale lists making offers where the numbers make sense. The limbo is very frustrating though!
What a great question! I've been thinking on this a lot yesterday. I completed my first live-in flip/house-hack in early 2018, and then transitioned it to a full time rental in late 2018 (I still own). I was and am saving 50% of my income, but Denver properties are expensive. So I spent a month in late 2018 getting my real estate license (it's pretty darn easy). This way I could make a little side money, and also obtain properties fairly cheaply. I can now easily afford more properties, but am a bit stuck. Here's why:
1) I've set up an out-of state team (agent, contractor, property manager, external wholesalers, lender) to take down deals, but am not finding ones that meet my criteria as I'm only looking on the MLS and from wholesalers. Have only made one offer in the last 2 months. I'm not even trying to do no money deals!
2) I hesitate to buy another Denver property, as I really dislike my dayjob. But I don't want to lose that sweet W-2 financing ability for more loans. So I want to stay mobile to take jobs elsewhere more easily.
3) I'm afraid to spend money on marketing for off-market deals in the other state. I am concerned that I'll spend a ton without seeing a return. I also don't have a boots on the ground partner for this purpose, so may struggle to convert these leads to deals.
4) I would like being a real estate agent (I already have my license in CO), but question my ability to make more than I currently do. I also don't want to lose the W-2 financing for 2 years. And finally, lead acquisition costs in real estate can be quite high. They are at least for my brokerage.
So for now, I'm interviewing for better day jobs, both in Denver and in the out-of-state city I previously mentioned. Plan is to purchase another property wherever that new job is, and kick things off again from there. Keep hitting the MLS and wholesale lists making offers where the numbers make sense. The limbo is very frustrating though!
Hi Tim,
I must have missed the other city. Where are you thinking?
I would take a weekend trip out there. Maybe hit a real estate meetup and interview 2-3 possible on the ground connections.
You should probably do that even if you are staying in Denver.
Investor · Fresno, CA · Member since 2016 · 222 posts · 237 votes
7y
@Frank Patalano thank you for the response. It is Kansas City, MO, although I did not say. I'm focused on a few select cities within the overall KC market (Raytown, Independence, Gladstone, and River North).
I made a trip there in late April to interview people for the rest of the team. At the time, I assumed (incorrectly thus far) that these people, specifically the wholesalers and real estate agent, would be enough to generate good leads. I wasn't too worried about an acquisitions manager for leads, as I wasn't planning to market directly to sellers.
@Frank Patalano thank you for the response. It is Kansas City, MO, although I did not say. I'm focused on a few select cities within the overall KC market (Raytown, Independence, Gladstone, and River North).
I made a trip there in late April to interview people for the rest of the team. At the time, I assumed (incorrectly thus far) that these people, specifically the wholesalers and real estate agent, would be enough to generate good leads. I wasn't too worried about an acquisitions manager for leads, as I wasn't planning to market directly to sellers.
Just passed on something in KC. I like the market overall. Unfortunately the market is hot everywhere.
Keep networking on here for someone in that area. Set goals to maybe speak to 2 agents a week in that market.
Opportunities present themselves for those who take action on their goals.
@Frank Patalano I don’t know where to start or what to do. I just recently attended a weekend workshop that legacy puts on and I’m all in on the idea. But since I couldn’t afford their expensive training course I’m out here on my own with no idea on how to get started. I’m open to any and all suggestions..
Investor · Lees Summit, MO · Member since 2018 · 74 posts · 33 votes
7y
@Timothy Howdeshell, @Frank Patalano is right. The KCMO market is super hot right now. I don't know what said mentioned criteria for yourself is, but I work all the areas you mentioned. Let me tell you, inventory is low and days on market are half of what they were earlier last year. Now that summer is approaching there will be more inventory, but pricing seems to be going up again. I just sold a Flip in the Northland for over asking with multiple offers with my first open house this past weekend. I had multiple visitors in the house all afternoon non-stop. I have been out in the field more and more scoping out properties for my investors. I have a couple that are very active. I have resorted to writing directly to property owners, as well. You have to get known and have a network to where people in the neighborhoods bring you deals. Hope this helps!
@Frank Patalano I don’t know where to start or what to do. I just recently attended a weekend workshop that legacy puts on and I’m all in on the idea. But since I couldn’t afford their expensive training course I’m out here on my own with no idea on how to get started. I’m open to any and all suggestions..
Suggestion #1 You don't need to go out and buy an expensive training.
Suggestion #2 Get all the cheap education and networking that you can.
Suggestion #3 Set written goals on what you want to accomplish over the next 3 months.
Then take action. If you want touch base again in a month or two. I'll be around.
@Timothy Howdeshell, @Frank Patalano is right. The KCMO market is super hot right now. I don't know what said mentioned criteria for yourself is, but I work all the areas you mentioned. Let me tell you, inventory is low and days on market are half of what they were earlier last year. Now that summer is approaching there will be more inventory, but pricing seems to be going up again. I just sold a Flip in the Northland for over asking with multiple offers with my first open house this past weekend. I had multiple visitors in the house all afternoon non-stop. I have been out in the field more and more scoping out properties for my investors. I have a couple that are very active. I have resorted to writing directly to property owners, as well. You have to get known and have a network to where people in the neighborhoods bring you deals. Hope this helps!
Keep building your NETWORK. Thanks for reaching out Olga.
@Frank Patalano thanks for the quick response. Any suggestions on where to look for the education I need? I feel like there’s so much out there that it’s all a bit overwhelming. Which books do I read, what videos can I watch? what kind of 3 month goals are reasonable and attainable? I’m literally working sun up to sun down to make my bills every week. I am ready to break free from the monotony!
@Frank Patalano thanks for the quick response. Any suggestions on where to look for the education I need? I feel like there’s so much out there that it’s all a bit overwhelming. Which books do I read, what videos can I watch? what kind of 3 month goals are reasonable and attainable? I’m literally working sun up to sun down to make my bills every week. I am ready to break free from the monotony!
Very few investors haven't read Rich Dad, Poor Dad. PM me for more. Start with podcasts before videos. Like when you are driving, etc.
Everyone has different for goals. I like to read at least 30 minutes daily. I'm not saying that you don't have time but you will have to sacrifice to make this happen. For years I worked a full time job, part time job, family, and was managing a dozen rental units. Only now am I starting to shift around responsibilities.
Investor · Baltimore, MD. · Member since 2015 · 8 posts · 1 vote
7y
@Frank Patalano
What's holding me back is money. It's always the case in this business and anyone in this business knows that. When starting out at some point I guess you just get lucky and connect with someone that believes in you. Me personally, I have been trying to find someone to joint venture with so maybe than after doing business together, confidence is built. As for not being sure if I don't know what I'm doing as the reason for not moving forward, this is simply not the case. I have no fear to begin, I just need backing from someone to believe in me. I don't need a mentor, webinar, how to programs etc. nothing. I need a partner that will go along maybe the first few times until they are confident to do more. They could take 95% of the profit as far as I'm concern, I just need that chance to learn and save until I'm able and have what I need to do my own projects.
New to Real Estate · Buffalo, NY · Member since 2019 · 18 posts · 4 votes
7y
Any tips for newbies with hard money lenders? We only have one investment property so far and we have it just by coincidence because we moved out of state.
Any tips for newbies with hard money lenders? We only have one investment property so far and we have it just by coincidence because we moved out of state.
Most hard money lenders want 25% down. Are you doing a flip? If so many want to see that you have the money for the rehab as well. Bring a deal where you understand the numbers.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
@Frank Patalano
What's holding me back is money. It's always the case in this business and anyone in this business knows that. When starting out at some point I guess you just get lucky and connect with someone that believes in you. Me personally, I have been trying to find someone to joint venture with so maybe than after doing business together, confidence is built. As for not being sure if I don't know what I'm doing as the reason for not moving forward, this is simply not the case. I have no fear to begin, I just need backing from someone to believe in me. I don't need a mentor, webinar, how to programs etc. nothing. I need a partner that will go along maybe the first few times until they are confident to do more. They could take 95% of the profit as far as I'm concern, I just need that chance to learn and save until I'm able and have what I need to do my own projects.
Based on what you've told me so far, I would recommend going to your local reia and keep networking with people. After going to a couple meetings I would ask some of the busier players how you can help them.
Eventually you will find someone that is busy busy and needs your help. You helping them will help you gain experience and a network.
Thank you both for your thoughtful and helpful responses. It's true that this is a relationship business. It is a great reminder to keep building that network and reaching out. Have a great day.