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?

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Jacob Gelinas

Providence, RI · Member since 2018 · 29 posts · 409 votes

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.

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Roxanne McClain
TN · Member since 2019 · 28 posts · 9 votes
7y
@Jacob Gelinas I know how you feel.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Lee VanDenBroeke:

Build my own?
Like many of you, I’m finding multi family deals that will cash flow decently to be tough to find, so I’m wondering....why not build my own?
I have flipped two homes for a modest profit, and just finished my third rehab that I kept as my first rental, which is cash flowing $300 a month. I have also “generaled” the construction of my own home in the past, and have a contractor friend that is interested in partnering with me to build new units together. I trust him and believe we would work well together.
I know this is a long term play by the time we find a property, choose plans, get permitted, and finally get it completed to rent, and I am ok with that.
My question for those that have done it, is what size unit is typically the most profitable to build and efficient to manage? Multiple du/triplexes, quad, 12 unit?
We could probably come up with $150k for seed money, have excellent credit, and are ready to roll in the Omaha area.
Advice?
Thanks!
It sounds like you have a decent amount of knowledge in construction. I would say go for it. I was involved in on new construction and didn't know what the heck I was doing it all. And we still broke even. I learned a lot to make a profit next time. My Philosophy on this would be the bigger the better. If you can find a great price on some land and can get approvals to build a big multifamily, do it. Just remember the build will cost more than you planned, take more time than you planned, and be more frustrating than you planned. That does not mean I won't be worth it.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Roxanne McClain:

@Jacob Gelinas I know how you feel.
We all know how he feels. Fear of the unknown is a common trait. It's natural. I should ask him why he never responds to this post. I saw him at a meeting on Thursday night.
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Laverne Rivera
Piscataway, NJ · Member since 2013 · 16 posts · 1 vote
7y
@Jacob Gelinas...For me as a newbie it’s feeling as if I don’t have all the tools to be successful. I’m always feeling as if I need to learn something else.
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Elmo Dasalla
Lathrop, CA · Member since 2019 · 8 posts · 3 votes
7y
@Frank Patalano that's an awesome question. For me it's not having the like minded folks around me yet to pull the trigger and maybe lack of confidence. I learn by doing and by that usually have someone show me it once then I can do it. Of course there are other factors like cash/money but I've been reading/listening to podcast and books. I just need to get out there network.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Laverne Rivera:

@Jacob Gelinas...For me as a newbie it’s feeling as if I don’t have all the tools to be successful. I’m always feeling as if I need to learn something else.
Real estate is so complicated that there is no possible way to understand every aspect of it. I've been doing it for over 10 years and feel less knowledgeable about it now than I did 10 years ago. That is why you try to work with experts in different aspects of the industry.
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Frank Patalano
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Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Elmo Dasalla:

@Frank Patalano that's an awesome question. For me it's not having the like minded folks around me yet to pull the trigger and maybe lack of confidence. I learn by doing and by that usually have someone show me it once then I can do it. Of course there are other factors like cash/money but I've been reading/listening to podcast and books. I just need to get out there network.
Yes networking is super important. I have found many deals and Partnerships through Network. You could also set up your own group of like-minded people and meet like once a month.
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Louis Porter Jr.
Rental Property Investor · St. Augustine · Member since 2017 · 68 posts · 24 votes
7y
@Frank Patalano Self-doubt is always number one for most people.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Louis Porter Jr.:

@Frank Patalano Self-doubt is always number one for most people.
I agree that self-doubt is always a big one. Once you realize that many people have Self Doubt , it gets easier.
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Shakia White
Philadelphia, PA · Member since 2019 · 1 post · 0 votes
7y
There is quite a few things holding me back, being a newbie to real estate, I am lacking education, which is why I am reading books, blogs, listening to podcast,(while I'm working my full-time job). The lack of money, doesn't help which is why I am currently working on increasing my credit score. Having like minded people around me would definitely boost my confidence in taking the first step in purchasing my first deal. I do plan on attending meet-ups in my area.
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CJ Peiffer
Rental Property Investor · Pasco, WA · Member since 2017 · 6 posts · 1 vote
7y
@Frank Patalano For is it is bad credit. We have a decent savings account built up, but I have yet to find someone that will partner up on a deal or find a hard money lender that will accept us with bad credit.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Shakia White:

There is quite a few things holding me back, being a newbie to real estate, I am lacking education, which is why I am reading books, blogs, listening to podcast,(while I'm working my full-time job). The lack of money, doesn't help which is why I am currently working on increasing my credit score. Having like minded people around me would definitely boost my confidence in taking the first step in purchasing my first deal. I do plan on attending meet-ups in my area.
These things aren't holding you back. You just aren't ready.
So set some realistic goals to get something done every day and every week.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @CJ Peiffer:

@Frank Patalano For is it is bad credit. We have a decent savings account built up, but I have yet to find someone that will partner up on a deal or find a hard money lender that will accept us with bad credit.
That's strange. You need to keep expanding your network.
Most hard money lenders look at the deal. I'm sure that it's possible but I've never had a hard money lender look at my credit.
Are you going to your local REIA meetings?
When people offer partnership deals at our meetings we have people falling over each other to partner.
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Duane Davis
Vendor · Jacksonville, FL · Member since 2017 · 12 posts · 4 votes
7y
@Frank Patalano funding.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Duane Davis:

@Frank Patalano funding.
When you say funding what type of real estate investing do you plan on doing?
1 Reply
Alex Poirier
Member since 2019 · 11 posts · 7 votes
7y
@Frank Patalano
Hello I'm new to this all togeather I have been doing a lot of reading and attending a couple of events local to me how ever what is holding me make is fear and lack of education on the many different way to go about becoming invested in real estate.
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Ryan Siwinski
Specialist · Fort Washington, PA · Member since 2018 · 16 posts · 7 votes
7y
@Frank Patalano Understanding the best possible way to analyze deals. I look online and attend meetups. What is the best way to set up your analysis?
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Timothy Pruner
Church hill, Tennessee (TN) · Member since 2013 · 6 posts · 1 vote
7y
@Vinay H. They won't think you're crazy when they see all pictures of you vacationing and doing the things you love with your extra money and free time.
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Rose Torio
Riverside, CA · Member since 2017 · 60 posts · 36 votes
7y
@Frank Patalano Hi Frank. When looking at school ratings, I use Trulia, is #1 the best for ratings, or it's #10. I could never figure that out. Thanks.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Alex Poirier:

@Frank Patalano
Hello I'm new to this all togeather I have been doing a lot of reading and attending a couple of events local to me how ever what is holding me make is fear and lack of education on the many different way to go about becoming invested in real estate.
So you're always going to have fear. I still wonder if I'm making the right decision many times. And I am wrong once in awhile. Sometimes I take too much risk because I think I know it all. basically pick one way to try to make money in real estate. Study up on it for a few months. Focus on that one way. And then take action and do it.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Ryan Siwinski:

@Frank Patalano Understanding the best possible way to analyze deals. I look online and attend meetups. What is the best way to set up your analysis?
You need to keep analyzing tons of deals until you can pretty accurately estimate what the costs are going to be for different expenses. Even after analyzing a hundred properties you could still be wrong. But you'll be a heck of a lot closer than you were on the first time you analyze a deal.
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Rose Torio:

@Frank Patalano Hi Frank. When looking at school ratings, I use Trulia, is #1 the best for ratings, or it's #10. I could never figure that out. Thanks.
I don't spend a lot of time on Trulia. I don't look for the best school districts and I don't look for the worst school districts. Somewhere in the middle is fine for my multi-family rentals.
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Alex Poirier
Member since 2019 · 11 posts · 7 votes
7y
You are right. My plan is to have at the very least 2 units by the end of the year!!!
2 Reply
Joseph Davis
Lancaster, OH · Member since 2016 · 13 posts · 2 votes
7y
@Frank Patalano
A couple things are holding me back. First thing is the battle of whether I should pay down some debt (school loans) first. Right now I pay close to $800 a month in school loans. At first I thought I should be debt free before starting but that’ll take me forever to do.
Second, lack of cash reserves. I think I’d feel safe going ahead and doing a traditional loan on a property if I found a good deal even with my current student loan monthly payments. But I
Don’t have near the cash to have 20% plus some extra in case repairs are needed or backup for future expenses. I’m just not sure even how much would be a good start to have saved before investing I guess.
Between these two things I just keep seeing myself putting off investing in real estate. Any words of encouragement or advice?
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Frank Patalano
OP
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Joseph Davis:

@Frank Patalano
A couple things are holding me back. First thing is the battle of whether I should pay down some debt (school loans) first. Right now I pay close to $800 a month in school loans. At first I thought I should be debt free before starting but that’ll take me forever to do.
Second, lack of cash reserves. I think I’d feel safe going ahead and doing a traditional loan on a property if I found a good deal even with my current student loan monthly payments. But I
Don’t have near the cash to have 20% plus some extra in case repairs are needed or backup for future expenses. I’m just not sure even how much would be a good start to have saved before investing I guess.
Between these two things I just keep seeing myself putting off investing in real estate. Any words of encouragement or advice?
One of my partners, Jimmy, had about $70,000 in student loans when he bought his first four unit house hack. He was able to generate enough income that he was able to live for free. That extra money made it easier for him to pay off the student loans faster. If you're going to move into the property then you don't need 20% down. If you are going to do an FHA loan on a multi-family house hack, I'm pretty sure that you can buy with as little as three and a half percent down.
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