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 · New Bedford, MA · Member since 2018 · 32 posts · 3 votes
7y
@Frank Patalano Yes I am an wholesaler...I wouldn’t mind meeting up and partnering.I really need a little guidance threw this journey.I am willing to dedicate my time and energy towards it.
@Frank Patalano Bad credit and low income. I am new to the concept of Financial Independance all together, discovering this world in March of this year. I have recently discovered the 3 BiggerPockets podcasts, read all of Robert Kiyosakis work as well as George S Clasons The Richest man in Babylon. I would love to be able to retire early and spend more time with my wife and 6-year-old son through investing in real estate; however, in my early 20's I was awful with my money. I bought a car I couldn't afford and ended up having it repossessed a year after I bought it. My credit score is not even 580, and I make $20,000 a year. I've maxed my Roth contributions to 20%, but afterwards am living paycheck to paycheck. Where can I go from here to get out of the rat race, and into the world of real estate investing?
@Frank Patalano Yes I am an wholesaler...I wouldn’t mind meeting up and partnering.I really need a little guidance threw this journey.I am willing to dedicate my time and energy towards it.
The Fall River meet up is on the second Thursday of the month.
Rental Property Investor · Howell, MI · Member since 2018 · 3 posts · 0 votes
7y
@Frank Patalano I just bought my first home six months ago as my single family/primary residence. I listen to every podcast and scan deals on Zillow/realtor etc and run numbers on potential deals a few times a week. At this point it I believe financing is what is holding me back. Dave Ramsey was my first exposure to financial education, so it’s admittedly hard for me to take that leap into finding hard money, taking on an additional mortgage, etc., especially since I used most of my own savings on fixing and improving my private primary residence. If anyone can relate, or has the money but lacks the analysis or “hands on” rehab skills, message me and I would love to talk more!
Real Estate Entrepreneur · Gibsonton, FL · Member since 2017 · 17 posts · 11 votes
7y
@Frank Patalano capital or lack there of, I have great credit and a sound base for business. I need to make some connections, network more. But Lack of money is holding me back.
@Frank Patalano Bad credit and low income. I am new to the concept of Financial Independance all together, discovering this world in March of this year. I have recently discovered the 3 BiggerPockets podcasts, read all of Robert Kiyosakis work as well as George S Clasons The Richest man in Babylon. I would love to be able to retire early and spend more time with my wife and 6-year-old son through investing in real estate; however, in my early 20's I was awful with my money. I bought a car I couldn't afford and ended up having it repossessed a year after I bought it. My credit score is not even 580, and I make $20,000 a year. I've maxed my Roth contributions to 20%, but afterwards am living paycheck to paycheck. Where can I go from here to get out of the rat race, and into the world of real estate investing?
You need a lot of help but the good news is that you're taking a lot of good steps in the right direction. Do you have any high interest debt? If you do I would stop the retirement contributions ASAP and pay it off.
Besides that you can be out there wholesaling right now. If you can find a deal lock it up on your contract and then sell the contract to someone else.
Or if you can put in the time find a deal then find a money partner who has no time and work together to own the property.
Keep being creative and keep hustling. You'll dig yourself out of this hole.
@Frank Patalano I just bought my first home six months ago as my single family/primary residence. I listen to every podcast and scan deals on Zillow/realtor etc and run numbers on potential deals a few times a week. At this point it I believe financing is what is holding me back. Dave Ramsey was my first exposure to financial education, so it’s admittedly hard for me to take that leap into finding hard money, taking on an additional mortgage, etc., especially since I used most of my own savings on fixing and improving my private primary residence. If anyone can relate, or has the money but lacks the analysis or “hands on” rehab skills, message me and I would love to talk more!
I fully understand. I joke that I have Dave Ramsey and Robert Kiyosaki fighting in my head every day. Your Best Shot is to find a partner who has money but has no time. You guys could team up and work together to make money. I've done it before in my area.
@Frank Patalano capital or lack there of, I have great credit and a sound base for business. I need to make some connections, network more. But Lack of money is holding me back.
Keep networking. If you find an amazing deal the money will come. Sometimes I have even found amazing deals with no money down. But that is more of a unicorn. I had to work two jobs for years to generate enough money 2 invest. Stay motivated, set some goals , and you can do it.
Rental Property Investor · Rancho Cucamonga, CA · Member since 2019 · 7 posts · 6 votes
7y
This is a great question!!
Being a new widow is holding me back...I’m just plain scared to make a major decision again without my husband to consult with about it!!
I’m a full time kindergarten teacher but I’ve been a small part time rental property investor since 2008 and currently own 6 homes here in California. I did most of the investing on my own: found the properties, did the research, crunched the numbers, got us through the escrow process, cleaned up the properties...all the basics. Then my husband Bill would take over and take care of the rentals and renters. BUT when Bill died suddenly in Las Vegas while attending a convention, it completely rocked my world and stripped away my confidence in almost all areas of my life including investing!
I have cash, experience, and proud to say a perfect 850 FICO/credit score (which I never thought actually existed until I saw mine in February of this year). BUT I feel frozen and have completely lost my confidence because I don’t have anything or anyone backing me up now! Before, I was willing to take a risk with real estate because I knew Bill made enough money to keep us going if I made a bad investment and lost a lot of money (which did in fact happen once). If I lose money now I’m afraid of not recovering financially from it! I actually have a property now that I was/am flipping (first time flipping for me) but the rehab is barely happening because I haven’t been on top of everything including the contractors. My son who has zero experience with real estate is stepping up to try and help me. I know we’ll get it done eventually but it’s been really slow!
How do I get past this frozen stage so I can go on with my investment plans?
Being a new widow is holding me back...I’m just plain scared to make a major decision again without my husband to consult with about it!!
I’m a full time kindergarten teacher but I’ve been a small part time rental property investor since 2008 and currently own 6 homes here in California. I did most of the investing on my own: found the properties, did the research, crunched the numbers, got us through the escrow process, cleaned up the properties...all the basics. Then my husband Bill would take over and take care of the rentals and renters. BUT when Bill died suddenly in Las Vegas while attending a convention, it completely rocked my world and stripped away my confidence in almost all areas of my life including investing!
I have cash, experience, and proud to say a perfect 850 FICO/credit score (which I never thought actually existed until I saw mine in February of this year). BUT I feel frozen and have completely lost my confidence because I don’t have anything or anyone backing me up now! Before, I was willing to take a risk with real estate because I knew Bill made enough money to keep us going if I made a bad investment and lost a lot of money (which did in fact happen once). If I lose money now I’m afraid of not recovering financially from it! I actually have a property now that I was/am flipping (first time flipping for me) but the rehab is barely happening because I haven’t been on top of everything including the contractors. My son who has zero experience with real estate is stepping up to try and help me. I know we’ll get it done eventually but it’s been really slow!
How do I get past this frozen stage so I can go on with my investment plans?
Shari welcome to this post. I'm sorry for your loss. I was a school teacher for 17+ years and recently retired because I have enough passive income to survive. My wife is also a school teacher.
You've done a great job. I follow a lot of Dave Ramsey and he says to refrain from making any major financial decisions for at least 1 year after your spouse dies.
You don't have to follow that advice it's just an idea.
It's ok to be frozen for a while. I have no idea what I would do in the same situation.
If you can I might start to network with other investors. Spend a few money going to meetings and meet with other experienced investors. You don't need to partner with them but they can be a good resource to bounce ideas off of. I have one male partner who is quite experienced but refuses to not have a partner on a deal. He wants someone that he can trust and make sure that he is being objective and not just emotional in decision making.
I bought my first home just out of high school when I was 18. Sold that one and bought another one when I was 19. You’re never too young to start! Don’t take on debt (credit cards, car loans, etc.) and keep your credit clean!! If you want it...you can do it!
Vendor · Jacksonville, FL · Member since 2017 · 12 posts · 4 votes
7y
@Frank Patalano I’ve been approved for 80 percent from a lender. All I need is the funding for repairs and the other 20. I’ve been have trouble obtaining the latter portion. I renovated plenty homes for investors here in Jax and now I need to do this on my own. So if you can provide any help please let me know.
@Frank Patalano I’ve been approved for 80 percent from a lender. All I need is the funding for repairs and the other 20. I’ve been have trouble obtaining the latter portion. I renovated plenty homes for investors here in Jax and now I need to do this on my own. So if you can provide any help please let me know.
You do not need the money. You just said you've renovated plenty of homes for others. Find a partner who has money and see if you can partner with them. Be creative. There is got to be somebody that you know that has no time or no experience with plenty of money and wants to get into real estate.
@Frank Patalano thanks for the reinsurance I’ll keep looking, I’m just venting. It’s been a frustrating journey.
If you can find a great deal put it under contract. During the due diligence period, Bring it to a local Meetup Group. If it's a great deal you'll find a partner. Or wholesale it off if you have to, to generate some cash. Besides that keep looking for other lenders. We have lenders in our Market that lend up to 100% if you have experience. Like I said you have proof of experience.
Vendor · Jacksonville, FL · Member since 2017 · 12 posts · 4 votes
7y
@Frank Patalano the experience I have is complete renovation. I have residential and commercial building experience for 14 years. I have a reference who’s a member here on BiggerPockets. Besides him I also have references. I will definitely use your advice.
We kept our newly wed house and we've been renting it for 8 years. I'm in the process of refinancing (should be 2 more weeks). then looking for a multi family unit to BRRR. The hold up was getting my spouse on board. Turns out six months cash in the bank helps with anxiety a TON.
I'm sure I'm going to hit road blocks along the way but my goal is to close on a cash flowing unit by the end of the year. I currently live outside the US so everything I'm going to be doing is remote so thats going to be my biggest challenge but I'm taking it one step at a time my current roadblock is cash but I have an action on that.
1. Wait for my amended tax filing to be processed which will give me the cash needed for a down payment.
2. In the meantime I am just trying to learn and research areas to invest in. I as I am going to be remote anyways it doesn't matter what area I start in.
3. Once I nail down a location I'm going to find a good property manager.
4. Find a good broker and start looking at units. This is where I see the biggest road block as most units will require some type of rehab. I'm still not sure the best way to estimate the rehab cost so I can figure out what to offer. My plan is to find something either turnkey or as close to turnkey as possible. I know this will give me a lower return but its going to be my foot in the door so I can start getting units that require more and more work.
5. con-current with finding a broker I'm going to get pre-approved for a loan so everything is all set.
6. Find a unit and close on it and hand it over to the property manager.
If anyone has any resource they can point me to that will help with the rehabbing estimating that would be great.
We kept our newly wed house and we've been renting it for 8 years. I'm in the process of refinancing (should be 2 more weeks). then looking for a multi family unit to BRRR. The hold up was getting my spouse on board. Turns out six months cash in the bank helps with anxiety a TON.
Absolutely. And people who have their spouse on board are able to grow so much faster. Have fun.
Mentors are not too hard to find. I go to 3 or more real estate meetings a month. I've seen good mentors at every one. If you want to build those relationships you need to keep going to the meetings and participate. People are willing to help but you can't just ask for a mentor at your first meeting.
Cash is easier. If you find a real deal people will be falling over themselves to be a part of it.
You have a lot of groups around here. There are meetups in Boston, South Shore, and the Fall River / New Bedford area.