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.
For me it’s the fear that I will end up in financial ruin. Which logically, I don’t think is likely. But emotionally I still have that fear. My boyfriend and I just bought a residence for ourselves. And we have stable jobs. He makes really good money but his is oil and gas so more risky. We could live on my income if we needed to. We’re both engineers. Overall I think we CAN do it and I don’t think we would end up in trouble. But I just have a fear of actually pulling the trigger.
Emily. Based on what you've told me this fear is unfounded. Keep learning. Analyze the deals and make an offer.
I reasoned through all of that with my boyfriend (who is of the same mindset as me in terms of wanting to dig in to real estate) and some friends/mentors I respect; I also read a string of books that reminded me that failure is inevitable, but as long as you are working through your chosen process (investing, training for a race, whatever) with good analysis and a great team behind you, you will always learn more and be able to use that as a platform to leap from for the next go-round. I am excited to move forward and take some risks; I have found a lot of useful knowledge on BiggerPockets that's made me more comfortable with these risks. If I could recommend one thing for those worried about taking the next step, I would say to read "Chop Wood, Carry Water." That - and knowing I had a strong network of folks wanting me to succeed - was what propelled me forward.
This is great, Grace! I love the point you made about the inevitable setbacks.. every one of them is an opportunity to learn something and keep growing. Definitely going to look into your recommendation!
San Antonio, TX · Member since 2019 · 40 posts · 14 votes
7y
The market. I've been listening to BP podcasts daily for about a month now, and a lot of these successful investors got in at the right time. Right now it just feels like we are closer to the top of the market cycle than we are to the bottom.
The market. I've been listening to BP podcasts daily for about a month now, and a lot of these successful investors got in at the right time. Right now it just feels like we are closer to the top of the market cycle than we are to the bottom.
We are definitely closer to the top than the bottom but that doesn't mean that there aren't deals out there. I know a guy that has done 4 deals this year. In the last 12 months I have invested in 5 opportunities in 4 states.
Buy for Cashflow. Don't try for appreciation. Keep learning. Keep networking. Deals will be few and far between but they are out there. I had a newbie put 2 deals under contract in the last month.
Charleston, SC · Member since 2019 · 5 posts · 0 votes
7y
@Frank Patalano I understand, but as a single parent who is at the tail end of a nasty custody battle, I have not had the income or credit score to get a home. I have owned 3 properties so I know the benefits of having them and look forward to getting one soon.
@Frank Patalano I understand, but as a single parent who is at the tail end of a nasty custody battle, I have not had the income or credit score to get a home. I have owned 3 properties so I know the benefits of having them and look forward to getting one soon.
I was under the impression that you were just starting out. This question was for people who have never owned a property and are complete newbies. My best suggestion based on what you have told me is to keep networking. When you are ready you will then have the connections for success.
Charleston, SC · Member since 2019 · 5 posts · 0 votes
7y
@Frank Patalano The homes I have owned were mainly for primary residence - each with a different outcome and with the last being sold 10 years ago. As an investor, no, I do not own a property. Thank you.
Rental Property Investor · Reston, VA · Member since 2019 · 3 posts · 2 votes
7y
A lack of REI knowledge and sufficient finances is what is currently holding me back. I discovered BP just last week and have been listening to the podcast daily. I also just started reading David Greene's Long Distance Real Estate Investing book.
I'm very excited about getting started, but just need some more time to stack away money for my first purchase. I currently have 15k in liquid savings, which I plan to designate as my Emergency Fund. I'm saving around 2k per month, but also plan to make a lump sum deposit into my Roth IRA later this year.
My goal is to purchase my first property at some point next year. I should have enough for a down payment on a <100k property by then. In the meantime, I'm going to continue to educate myself and perhaps try to figure out what market I want to invest in.
A lack of REI knowledge and sufficient finances is what is currently holding me back. I discovered BP just last week and have been listening to the podcast daily. I also just started reading David Greene's Long Distance Real Estate Investing book.
I'm very excited about getting started, but just need some more time to stack away money for my first purchase. I currently have 15k in liquid savings, which I plan to designate as my Emergency Fund. I'm saving around 2k per month, but also plan to make a lump sum deposit into my Roth IRA later this year.
My goal is to purchase my first property at some point next year. I should have enough for a down payment on a <100k property by then. In the meantime, I'm going to continue to educate myself and perhaps try to figure out what market I want to invest in.
Hi Brandon,
Welcome to Bigger Pockets. I don't know the Virginia markets that much but saw that you lived near Washington DC. Congratulations on taking your first step in your real estate journey. My suggestion is to house hack your first property. With this strategy you buy a multi family of 2-4 units, live in one and rent the other ones. You can do that with a small down payment since it will be owner occupied. That would allow you to purchase this year. You don't have to do that strategy but a few of my friends have done it before and loved it. Either way keep learning and saving. Also start networking by going to meetups etc.
Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes
7y
@Mark Bommarito hey neighbor, I live in Rancho Cucamonga.
You are being too picky, there are properties out there that you can get for 70-80 no crime with good cashflow, I understand your struggle since everything that doesnt look and “feels” like CA (what we are used to), seems bad. (Places with rarely any target/walmart/isolated/etc.)
It isn’t true tho, everyone needs a place to live, a-lot of the “crime check” websites are not that accurate either, the best thing to do is to ask a local that lived there for awhile.
To get out of that fear I would recommend checking crime rate in your area, you will be surprised to know how inaccurate it is.
It happend to me and It came up that Weho is as dangerous as east LA and I was like “wtf?” 🤣
Investor · Phoenixville, PA · Member since 2019 · 30 posts · 26 votes
7y
Been working on trying to position myself well first. Bought my primary residence a year ago. (it's a partial house hack, I'm living in a 280k house for about 750 a month by renting a room out to a friend) My credit tanked over 100 points and I had used every last dime to avoid PMI and finance the renovation. My credit has just finally recovered to where it was pre-purchase. I paid off all but $2800 (which is at 0% APR) of my renovation costs while also getting two 5% raises, so I've brought my DTI from 30% down to 20% excluding the roommate rent.
I've been learning as much as I can and practicing analyzing properties. I think I've come across several that were good deals, but financing is my current concern. The current deal that has my eye is listed at 120k and needs 30k worth of work, but I've only got 11k in the bank, and 4k in stocks and bonds. I do have 30k in my 401(k) and 80k equity on a 280k house but am worried trying to tap into those would undo all the credit repair work I've done over the past year.
Been working on trying to position myself well first. Bought my primary residence a year ago. (it's a partial house hack, I'm living in a 280k house for about 750 a month by renting a room out to a friend) My credit tanked over 100 points and I had used every last dime to avoid PMI and finance the renovation. My credit has just finally recovered to where it was pre-purchase. I paid off all but $2800 (which is at 0% APR) of my renovation costs while also getting two 5% raises, so I've brought my DTI from 30% down to 20% excluding the roommate rent.
I've been learning as much as I can and practicing analyzing properties. I think I've come across several that were good deals, but financing is my current concern. The current deal that has my eye is listed at 120k and needs 30k worth of work, but I've only got 11k in the bank, and 4k in stocks and bonds. I do have 30k in my 401(k) and 80k equity on a 280k house but am worried trying to tap into those would undo all the credit repair work I've done over the past year.
I'm a little confused when you said your credit Tanked. Is there a specific reason for this? Maybe I missed it. Besides that where are you finding this deal? If it's on MLS perhaps you can work with a partner and split it. If it is off Market perhaps you can put it under contract to purchase and wholesale it.
When I was a new investor before, I didn't know how to start. I think asking professionals is a good way to know more about this REI road.
Speaking to professionals is a good option . I personally think networking with experienced investors is a better one. Joining my local reia is the best thing that I ever did
Been working on trying to position myself well first. Bought my primary residence a year ago. (it's a partial house hack, I'm living in a 280k house for about 750 a month by renting a room out to a friend) My credit tanked over 100 points and I had used every last dime to avoid PMI and finance the renovation. My credit has just finally recovered to where it was pre-purchase. I paid off all but $2800 (which is at 0% APR) of my renovation costs while also getting two 5% raises, so I've brought my DTI from 30% down to 20% excluding the roommate rent.
I've been learning as much as I can and practicing analyzing properties. I think I've come across several that were good deals, but financing is my current concern. The current deal that has my eye is listed at 120k and needs 30k worth of work, but I've only got 11k in the bank, and 4k in stocks and bonds. I do have 30k in my 401(k) and 80k equity on a 280k house but am worried trying to tap into those would undo all the credit repair work I've done over the past year.
I'm a little confused when you said your credit Tanked. Is there a specific reason for this? Maybe I missed it. Besides that where are you finding this deal? If it's on MLS perhaps you can work with a partner and split it. If it is off Market perhaps you can put it under contract to purchase and wholesale it.
I had relatively thin credit (I was 24 years and one week old at the time of closing), so adding a 200k loan increased my debt profile substatially. I had recently bought and refinanced a car when the brakes went out on my college ride, rate shopped on the house over a long escrow period so they didn't get viewed as rate shopping, and I financed the renovations through 0% credit cards, so in total had 8 inquiries and multiple new accounts in the last two years. The credit cards showed a high utilization rate even though it was free debt that I had invested elsewhere.
I didn't have late payments or bankruptcy or anything like that, but the rapid change of living on 12k a year as a college student to being an engineer looks like instability as far as credit goes. Wells Fargo, Discover, AmEx, Nerdwallet, BoA all have free credit monitoring services, and all of them showed a 100-140 point drop from the month before I bought the house to the month after.
Been working on trying to position myself well first. Bought my primary residence a year ago. (it's a partial house hack, I'm living in a 280k house for about 750 a month by renting a room out to a friend) My credit tanked over 100 points and I had used every last dime to avoid PMI and finance the renovation. My credit has just finally recovered to where it was pre-purchase. I paid off all but $2800 (which is at 0% APR) of my renovation costs while also getting two 5% raises, so I've brought my DTI from 30% down to 20% excluding the roommate rent.
I've been learning as much as I can and practicing analyzing properties. I think I've come across several that were good deals, but financing is my current concern. The current deal that has my eye is listed at 120k and needs 30k worth of work, but I've only got 11k in the bank, and 4k in stocks and bonds. I do have 30k in my 401(k) and 80k equity on a 280k house but am worried trying to tap into those would undo all the credit repair work I've done over the past year.
I'm a little confused when you said your credit Tanked. Is there a specific reason for this? Maybe I missed it. Besides that where are you finding this deal? If it's on MLS perhaps you can work with a partner and split it. If it is off Market perhaps you can put it under contract to purchase and wholesale it.
I had relatively thin credit (I was 24 years and one week old at the time of closing), so adding a 200k loan increased my debt profile substatially. I had recently bought and refinanced a car when the brakes went out on my college ride, rate shopped on the house over a long escrow period so they didn't get viewed as rate shopping, and I financed the renovations through 0% credit cards, so in total had 8 inquiries and multiple new accounts in the last two years. The credit cards showed a high utilization rate even though it was free debt that I had invested elsewhere.
I didn't have late payments or bankruptcy or anything like that, but the rapid change of living on 12k a year as a college student to being an engineer looks like instability as far as credit goes. Wells Fargo, Discover, AmEx, Nerdwallet, BoA all have free credit monitoring services, and all of them showed a 100-140 point drop from the month before I bought the house to the month after.
I've been looking MLS, auction, foreclosure.
So I wouldn't borrow all of your equity. Like I said I would find a partner.
Flipper/Rehabber · Midland, TX · Member since 2018 · 26 posts · 6 votes
7y
My location has me completely stumped. I'm in the Permian Basin area of Texas; for those who are unfamiliar, it's home to a great majority of this great nation's oil and gas production and 1bd/1ba $1100/mo rents. I'm unsure whether to make an attempt to tackle this market as a newbie or gain my "first deal" experience elsewhere. I'm interested in wholesaling or flipping and I already have finances in place.
I was waiting to finish paying my student loans. Paid 45k in less than 2 years, 2 months ago. Now I am in the middle of escrow, hopefully closing in a month. Going to house hack on my first property and save for the next one in a year from closing.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
My location has me completely stumped. I'm in the Permian Basin area of Texas; for those who are unfamiliar, it's home to a great majority of this great nation's oil and gas production and 1bd/1ba $1100/mo rents. I'm unsure whether to make an attempt to tackle this market as a newbie or gain my "first deal" experience elsewhere. I'm interested in wholesaling or flipping and I already have finances in place.
Your first deal can be wherever you build your strongest Network. I usually prefer for that to be local. It could be anywhere that you want it to be.
I was waiting to finish paying my student loans. Paid 45k in less than 2 years, 2 months ago. Now I am in the middle of escrow, hopefully closing in a month. Going to house hack on my first property and save for the next one in a year from closing.