So what's holding you back?
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.
So I'll ask here. What is holding you back?
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 found plenty of deals but can’t put together the financing to purchase. I’m working on finding a financial partner to split profits with.
@Frank Patalano
I'm very analytical and if I don't have everything down to the penny figured out I'm afraid to jump on it. I also have a huge fear of failure and of drowning in debt. Not sure how to move past it.
@Frank Patalano lack of financing
When you say lack of financing, what does that mean? Poor Credit? Low Income?
Nevermind I just saw your next comment.
So you need to be networking at your local REIA. If it is a good enough deal there should be a few people interested in working together on it.
If you have the time, you basically need a money partner to work with.
@Frank Patalano
I'm very analytical and if I don't have everything down to the penny figured out I'm afraid to jump on it. I also have a huge fear of failure and of drowning in debt. Not sure how to move past it.
I will tell you that I lost money on my first deal.
Analysis Paralysis kills many people's dreams.
I fail at things quite often. That is how I get better.
@Frank Patalano i don’t know what i don’t know. The unknown makes the leap of faith a tad bit discouraging. Thoughts?
@Frank Patalano i don’t know what i don’t know. The unknown makes the leap of faith a tad bit discouraging. Thoughts?
Set goals. Learn as much as you can about real estate for 3 months. Then start networking and looking at properties. I'm 10 years in and I still learn new stuff all of the time.
Try to take in as much as you can over a certain time frame but then take action.
I think that almost everybody that I've ever met in real estate always wishes that they had started sooner.
@Tony Martin man I literally had the same feeling you did. I really looked for any avenue i could find to give me an excuse to delay actions toward my REI goals. Let the numbers be your guide. when those feelings of doubt began to build as i was looking to pull the trigger on my first rental property, I re-looked at my numbers a million times. Deep down, I knew it was a deal. Make sure you are running the numbers conservatively and you'll be good to go. Being on the other end is so much better i promise!
Hey Guys!
My name is Jake Hardin and am new to the bigger-pockets website but have been listening to your guys podcast for quite some time now. I'm 23 now and been out of college for about 6 months, I've had may sales jobs, started my own lawn-care companies when I was in St. Louis and in high-school. Now I live up in Kansas City Missouri (where I went to college at Rockhurst Univercity) graduating with a Marketing and Pre-Law degree. I've truly been inspired by you and your podcasts along with the Rich Dad Poor Dad series. I know real-estate is where I belong. I really got into it after hearing the podcasts with Nathan Brooks and his turnkey investing. Right now I've shadowed a guy who does a lot of air bnb's up here and know the market fairly well and what would need to be done. But what I really want to do is BRRR for student housing around the colleges here, I really know this market. I'm a very quick learner and a self starter but I'm having some troubles getting my feet planted. I've gone in and talked to ReeceNichols real-estate brokerage and they've offered me a job but funds are rather low due to student loans. I'm a real big face to face kind of guy and love to network and meet new people who could help guide me. All in all I was wondering if you had any advice on how to get started into real estate. I'm willing and ready to give this thing my all, I really just need some direction and guidance, being a self starter with many intrinsic and extrinsic motivators I know I would not fail.
Best,
Jake
Hey Guys!
My name is Jake Hardin and am new to the bigger-pockets website but have been listening to your guys podcast for quite some time now. I'm 23 now and been out of college for about 6 months, I've had may sales jobs, started my own lawn-care companies when I was in St. Louis and in high-school. Now I live up in Kansas City Missouri (where I went to college at Rockhurst Univercity) graduating with a Marketing and Pre-Law degree. I've truly been inspired by you and your podcasts along with the Rich Dad Poor Dad series. I know real-estate is where I belong. I really got into it after hearing the podcasts with Nathan Brooks and his turnkey investing. Right now I've shadowed a guy who does a lot of air bnb's up here and know the market fairly well and what would need to be done. But what I really want to do is BRRR for student housing around the colleges here, I really know this market. I'm a very quick learner and a self starter but I'm having some troubles getting my feet planted. I've gone in and talked to ReeceNichols real-estate brokerage and they've offered me a job but funds are rather low due to student loans. I'm a real big face to face kind of guy and love to network and meet new people who could help guide me. All in all I was wondering if you had any advice on how to get started into real estate. I'm willing and ready to give this thing my all, I really just need some direction and guidance, being a self starter with many intrinsic and extrinsic motivators I know I would not fail.
Best,
Jake
Hi Jake if you love real estate as much as you say you do why don't you take the job. Give yourself six months. If you can't do it you can't do it, but at least you gave it a chance. Good luck.
Financial backing is what is holding me back right now. I know I need to get out there and network myself better. In regards to that I am struggling on how best to approach a partnership with someone willing to bring the money for a down payment on a property.
Financial backing is what is holding me back right now. I know I need to get out there and network myself better. In regards to that I am struggling on how best to approach a partnership with someone willing to bring the money for a down payment on a property.
Brian if you are doing all the work then you are providing a service for someone that has money but no time
You are working together so both of you make money. That's how I would approach it. You can have 99 No's, you only need 1 yes.
I still have not pulled the trigger on anything yet. A big part is that I don't know what location to purchase. There are virtually no rental properties in my direct area so I am looking out of state, anywhere from the northeast to florida. Second is that with just graduating college, I am still in the job search and am nervous that getting a loan will be hard even though I have enough capital for a large downpayment. Third is being concerned that once I purchase the property, I won't be able to rent it out quickly (this is linked with location too).
I still have not pulled the trigger on anything yet. A big part is that I don't know what location to purchase. There are virtually no rental properties in my direct area so I am looking out of state, anywhere from the northeast to florida. Second is that with just graduating college, I am still in the job search and am nervous that getting a loan will be hard even though I have enough capital for a large downpayment. Third is being concerned that once I purchase the property, I won't be able to rent it out quickly (this is linked with location too).
Why don't you find a partner? Hopefully someone you know that wants to get into realestate. Perhaps they have a stable and secure job. Working as a team will reduce your loss if something goes wrong.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.
The collections is from 5 years ago, however, its been transferred from collection agency to collection agency and the last one reported it to all the credit bureaus last month. So its an old collection but its brand new on my credit report. I have an appointment with a credit repair company for tomorrow, so ill see what they say. Thank you for the quick response Frank. How does a partnership work, in this instance I would provide capital and my partner the credit. Should profits be split 50/50 as we would both have separate roles towards the same goal? What about the losses in a deal? I would take the loss in capitol.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.
The collections is from 5 years ago, however, its been transferred from collection agency to collection agency and the last one reported it to all the credit bureaus last month. So its an old collection but its brand new on my credit report. I have an appointment with a credit repair company for tomorrow, so ill see what they say. Thank you for the quick response Frank. How does a partnership work, in this instance I would provide capital and my partner the credit. Should profits be split 50/50 as we would both have separate roles towards the same goal? What about the losses in a deal? I would take the loss in capitol.
You can be as creative as you want on the splits Etc.
One example is that the Capital Partner could give the credit partner a zero-interest loan. Whatever you guys decide to have distributions you could get back his portion until the loan is paid off. Or you can get 100% of your portion and 50% of his portion until the loan is paid off. There are plenty of options. The credit partner is just as essential as the Capital Partner.
Another option is you could use your money as a down payment with a hard money lender and do a flip. Hard money lenders don't really care as much about your credit. They care more about the deal.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.
The collections is from 5 years ago, however, its been transferred from collection agency to collection agency and the last one reported it to all the credit bureaus last month. So its an old collection but its brand new on my credit report. I have an appointment with a credit repair company for tomorrow, so ill see what they say. Thank you for the quick response Frank. How does a partnership work, in this instance I would provide capital and my partner the credit. Should profits be split 50/50 as we would both have separate roles towards the same goal? What about the losses in a deal? I would take the loss in capitol.
You can be as creative as you want on the splits Etc.
One example is that the Capital Partner could give the credit partner a zero-interest loan. Whatever you guys decide to have distributions you could get back his portion until the loan is paid off. Or you can get 100% of your portion and 50% of his portion until the loan is paid off. There are plenty of options. The credit partner is just as essential as the Capital Partner.
Another option is you could use your money as a down payment with a hard money lender and do a flip. Hard money lenders don't really care as much about your credit. They care more about the deal.
Thank you for the suggestions, really opened my eyes on how creative one can get.
While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.
How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.
The collections is from 5 years ago, however, its been transferred from collection agency to collection agency and the last one reported it to all the credit bureaus last month. So its an old collection but its brand new on my credit report. I have an appointment with a credit repair company for tomorrow, so ill see what they say. Thank you for the quick response Frank. How does a partnership work, in this instance I would provide capital and my partner the credit. Should profits be split 50/50 as we would both have separate roles towards the same goal? What about the losses in a deal? I would take the loss in capitol.
You can be as creative as you want on the splits Etc.
One example is that the Capital Partner could give the credit partner a zero-interest loan. Whatever you guys decide to have distributions you could get back his portion until the loan is paid off. Or you can get 100% of your portion and 50% of his portion until the loan is paid off. There are plenty of options. The credit partner is just as essential as the Capital Partner.
Another option is you could use your money as a down payment with a hard money lender and do a flip. Hard money lenders don't really care as much about your credit. They care more about the deal.
Thank you for the suggestions, really opened my eyes on how creative one can get.
Happy to help. That's what we're here for.
Hello, my time management skills and the fear of adding something else to my overwhelmed plate and unfortunately analysis paralysis are whats holding me back. I am 28 years i graduate in Dec, and i was orginally going to purchase a SFH as my primary residence. I have since decided that house hacking is the wayto go for me. I reside in Dallas and currentl work 2 full time jobs so finding a residence outside of the city is inconvenient for me..
I guess to sum it up i have to find time to network, research my area, and make sure i have the money. I'm not afraid to make the jump i just want my ducks in a row first.
Hello, my time management skills and the fear of adding something else to my overwhelmed plate and unfortunately analysis paralysis are whats holding me back. I am 28 years i graduate in Dec, and i was orginally going to purchase a SFH as my primary residence. I have since decided that house hacking is the wayto go for me. I reside in Dallas and currentl work 2 full time jobs so finding a residence outside of the city is inconvenient for me..
I guess to sum it up i have to find time to network, research my area, and make sure i have the money. I'm not afraid to make the jump i just want my ducks in a row first.
There's nothing wrong with having your ducks in a row first but if you are truly passionate about succeeding at real estate then you will spend every free moment trying to achieve that success. I've networked online at 1am. Researched properties at 4am. Good luck.
Hi @Benesha Davis!
My name is Anthony and I believe I can help you with your lack of time to network and research your area. You'll be in charge of the money. Message me and hope to hear from you soon!
@Frank Patalano For me it was horrible credit, medical debt, and bills. After I got that mostly handled and could afford to eat the payments and repairs then the risk went from high to negligible.
@Frank Patalano For me it was horrible credit, medical debt, and bills. After I got that mostly handled and could afford to eat the payments and repairs then the risk went from high to negligible.
Agreed. Once you have a plan for your finances it does get easier.
Hi @Benesha Davis!
My name is Anthony and I believe I can help you with your lack of time to network and research your area. You'll be in charge of the money. Message me and hope to hear from you soon!
Hello Anthony,
Thank you for your response. I will be in touch very soon. I know that there is alot of information and hundreds of ways to make money in real estate. Like i stated previously, i am not afraid to make the jump, or take a chance; my hold up is finding the time and making sure that i as i approach a deal i can walk in there confidently. This weekend i plan on buying a bunch of recommended real estate books, but I am a hands on learner. So if you have an suggestions on books to read, groups to join, or just articles to educate myself. Please let me know. Thanks again Anthony for your comment and support.