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.
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.
If you are going turnkey there are a few companies that specialize in it. I know companies focusing on Memphis, Pittsburgh, and more.
You could always find a good broker first who will help you find a property manager.
Remote ownership is easier than ever. We recently recorded a discussion with someone who purchased a property while out of the country.
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.
If you are going turnkey there are a few companies that specialize in it. I know companies focusing on Memphis, Pittsburgh, and more.
You could always find a good broker first who will help you find a property manager.
Remote ownership is easier than ever. We recently recorded a discussion with someone who purchased a property while out of the country.
I haven’t decided on a location yet so I don’t want to start looking for turnkey companies just yet. I want the location to dictate what I find and not the companies I find to dictate what is a “good” location.
I want turnkey as it’s less of a roadblock to entry. If I go with finding a house that needs work it’s another excuse I can make on why it’s too hard.
@Frank Patalano Student loans for debt to income ratio so I can qualify for an FHA, and freeing up more of my 9-5 salary for emergencies. If I dont go that route, building relationships with lenders, investors, title co, etc. I do a lot now, but it still takes time.
@Frank Patalano
Just that I’m very new to the game and I have little to no capital and have no connections for borrowing from a lender of some sort.
@Frank Patalano Student loans for debt to income ratio so I can qualify for an FHA, and freeing up more of my 9-5 salary for emergencies. If I dont go that route, building relationships with lenders, investors, title co, etc. I do a lot now, but it still takes time.
Of course it takes time. Years, sometimes. If you can find a deal you can partner for it to happen quicker.
@Frank Patalano. Right ow the only thing holding me back is lack of knowledge. Knowledge on how to talk to the talk to the investor, Knowledge on making sure I’m finding a deal that will get me going positively it negatively, knowledge on how to properly present the deal.
@Frank Patalano I have flipped a hand full of properties within the last 7 years. What’s holding me back is there is not enough margin on any deals that makes any sense.
@Frank Patalano
My hubby is the investor and it's very hard to locate fix and flip deals here. Wholesales are way overpriced, almost nothing comes across the MLS, there's not many auctions for homes (mostly land), REOs go straight to market at market value (mostly dubbed investor specials) and we're not sure the best way to go about finding distressed properties aside from alerts I get for lis pendens (which as I understand it, is not the point at which we want to get involved). It's getting frustrating bc we wanted to do some flips with hard money first so we will have more to put down into a buy and hold, but the way the market is looking, I'm seeing more rentals that would work right now. But truthfully we need the cash that a flip would bring to get some personal stuff paid off before we start with rental properties.
@Frank Patalano. This is a great thread. It is encouraging to see that I am not the only one struggling to get a foot in the door. What's holding me back is a combo of trying to expand my knowledge to a place of more comfort, and also having trouble finding what I am looking for in my market and surrounding area. My plan was to purchase a multi-family under an FHA loan and house-hack. My wife and I both work in Manhattan so we can't go too far from the city, which limits the available multi-family homes that aren't getting bought up at close-to-market costs by the 'big guns'.
If I am patient and continue to practice my analysis I am sure I can find a deal in there somewhere, or maybe be a bit more flexible in the plan.
We also have a baby on the way and I am hesitant to make the plunge on a risky venture.
@Frank Patalano. Right ow the only thing holding me back is lack of knowledge. Knowledge on how to talk to the talk to the investor, Knowledge on making sure I’m finding a deal that will get me going positively it negatively, knowledge on how to properly present the deal.
Well the good news is that there is a ton of free and inexpensive knowledge out there. Much more than I had when I started. You can easily be learning stuff everyday
@Frank Patalano. Right ow the only thing holding me back is lack of knowledge. Knowledge on how to talk to the talk to the investor, Knowledge on making sure I’m finding a deal that will get me going positively it negatively, knowledge on how to properly present the deal.
Well the good news is that there is a ton of free and inexpensive knowledge out there. Much more than I had when I started. You can easily be learning stuff everyday
Oh believe me I’m reading everything I can. I just wish I understand half of it lol
@Frank Patalano I have flipped a hand full of properties within the last 7 years. What’s holding me back is there is not enough margin on any deals that makes any sense.
I understand completely. Depending on what type of real estate investing that you do there are some options. For me I had to expand my network and expand my market. I also expanded type of real estate that I was doing.
@Frank Patalano
Me education, I'm in closing of buying my first home so I know some what of the process. I would like to start wholesaling, I found a few properties. When I recieve the purchase and sell contract? How long should I make the oaing date? What if I dont find a. Investor before the date?
How to property get the numbers before they pull the trigger I would think is number 1. They would get bombarded with the idea of the variables and what ifs to get a property to cash flow. Solution. reach out to people in your area who have done what you are trying to do and speak to them. I guarantee if you think there are not any people around you doing what you are looking to do in real estate... YOU ARE NOT LOOKING ENOUGH !
@Frank Patalano
My hubby is the investor and it's very hard to locate fix and flip deals here. Wholesales are way overpriced, almost nothing comes across the MLS, there's not many auctions for homes (mostly land), REOs go straight to market at market value (mostly dubbed investor specials) and we're not sure the best way to go about finding distressed properties aside from alerts I get for lis pendens (which as I understand it, is not the point at which we want to get involved). It's getting frustrating bc we wanted to do some flips with hard money first so we will have more to put down into a buy and hold, but the way the market is looking, I'm seeing more rentals that would work right now. But truthfully we need the cash that a flip would bring to get some personal stuff paid off before we start with rental properties.
I understand your issues. This post was originally for beginners. What I had to do to find deals was to expand my network, expand my market area, and expand the types of real estate Investments that I have been doing. Also I agree with you. Learn how to buy distressed properties. How about code violations at the city or county level?
@Frank Patalano. This is a great thread. It is encouraging to see that I am not the only one struggling to get a foot in the door. What's holding me back is a combo of trying to expand my knowledge to a place of more comfort, and also having trouble finding what I am looking for in my market and surrounding area. My plan was to purchase a multi-family under an FHA loan and house-hack. My wife and I both work in Manhattan so we can't go too far from the city, which limits the available multi-family homes that aren't getting bought up at close-to-market costs by the 'big guns'.
If I am patient and continue to practice my analysis I am sure I can find a deal in there somewhere, or maybe be a bit more flexible in the plan.
We also have a baby on the way and I am hesitant to make the plunge on a risky venture.
Where are you looking for your deals? Are you going to networking meetings to find deals as well?
@Frank Patalano. Right ow the only thing holding me back is lack of knowledge. Knowledge on how to talk to the talk to the investor, Knowledge on making sure I’m finding a deal that will get me going positively it negatively, knowledge on how to properly present the deal.
Well the good news is that there is a ton of free and inexpensive knowledge out there. Much more than I had when I started. You can easily be learning stuff everyday
Oh believe me I’m reading everything I can. I just wish I understand half of it lol
Lol. Join your local reia. They will have better explanations will you can ask questions as well. Some REIA's put on walkthroughs of rehabs, etc. You really must be a part of one.
@Frank Patalano
My hubby is the investor and it's very hard to locate fix and flip deals here. Wholesales are way overpriced, almost nothing comes across the MLS, there's not many auctions for homes (mostly land), REOs go straight to market at market value (mostly dubbed investor specials) and we're not sure the best way to go about finding distressed properties aside from alerts I get for lis pendens (which as I understand it, is not the point at which we want to get involved). It's getting frustrating bc we wanted to do some flips with hard money first so we will have more to put down into a buy and hold, but the way the market is looking, I'm seeing more rentals that would work right now. But truthfully we need the cash that a flip would bring to get some personal stuff paid off before we start with rental properties.
I understand your issues. This post was originally for beginners. What I had to do to find deals was to expand my network, expand my market area, and expand the types of real estate Investments that I have been doing. Also I agree with you. Learn how to buy distressed properties. How about code violations at the city or county level?
Thanks very much for taking the time to reply. Good ideas.
@Frank Patalano
Me education, I'm in closing of buying my first home so I know some what of the process. I would like to start wholesaling, I found a few properties. When I recieve the purchase and sell contract? How long should I make the oaing date? What if I dont find a. Investor before the date?
Wholesaling is easy and hard of the same time. There are books available to help. Start growing a buyer's list now. On the first one make the closing date two or three months away. Some people are going to want time to clean it out. Give yourself 2 weeks to do an inspection. That is the time that you need to find a buyer. Make the deposit as low as possible in case you have to eat it
How to property get the numbers before they pull the trigger I would think is number 1. They would get bombarded with the idea of the variables and what ifs to get a property to cash flow. Solution. reach out to people in your area who have done what you are trying to do and speak to them. I guarantee if you think there are not any people around you doing what you are looking to do in real estate... YOU ARE NOT LOOKING ENOUGH !
I agree 100%. So many people say it can't be done but people are doing it in every Market in the country.
I started studying wholesaling 4months ago and just moved to Florida 2 months ago, what’s holding me back big time is I feel as do wholesaling is a cut throat business and when your first starting off no one wants to help you it’s sad! I’m not from Florida so I’m new to the market but I have been building my buyers list from bandit signs all over! But when I try to ask for help from a fellow wholesaler they all hang up on me. I’ve been cold calling Sellers nonstop, 10 a day have gotten plenty appointments but never pulled the trigger because I don’t know what’s the correct contracts to use but I have a title company so I’m learning all on my own! i know with good Knowledge I can take off And make massive gains Has anyone felt how I feel Their First Time starting? #GOGETTERS
I started studying wholesaling 4months ago and just moved to Florida 2 months ago, what’s holding me back big time is I feel as do wholesaling is a cut throat business and when your first starting off no one wants to help you it’s sad! I’m not from Florida so I’m new to the market but I have been building my buyers list from bandit signs all over! But when I try to ask for help from a fellow wholesaler they all hang up on me. I’ve been cold calling Sellers nonstop, 10 a day have gotten plenty appointments but never pulled the trigger because I don’t know what’s the correct contracts to use but I have a title company so I’m learning all on my own! i know with good Knowledge I can take off And make massive gains Has anyone felt how I feel Their First Time starting? #GOGETTERS
Well not everyone considers investing to be a team sport. They don't want to train their competition. Your best bet is to find a REIA outside of your area but in Florida. Meet up with the two or three of the best wholesalers in that market and offering to pay them to train you. You won't be directly competing with them anyway.
@Frank Patalano I have been looking in Nassau County, Long Island. I have been to some network meetings but they seem to be mostly investing long distance. However, I have been going to the same meet-up group. It might be time to expand my network.
@Frank Patalano
Since I am new to investing and haven’t bought my first property. I guess the biggest thing holding me back is the money to invest and where should I invest. I am planning on attending some local meetings and learn from others. I am hoping to buy a property in 6 months. I’m also fixing some credit issues due to recent medical bills that went into collections. So I will continue to look at BiggerPockets podcasts and attend webinars, and local meetings.
@Frank Patalano
Since I am new to investing and haven’t bought my first property. I guess the biggest thing holding me back is the money to invest and where should I invest. I am planning on attending some local meetings and learn from others. I am hoping to buy a property in 6 months. I’m also fixing some credit issues due to recent medical bills that went into collections. So I will continue to look at BiggerPockets podcasts and attend webinars, and local meetings.
Learning and networking are absolutely the best 2 things that you could be doing right now. Keep it up.