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.
Frank, I agree with you. I'll definitely be pulling the trigger soon, though I expect I'll start with a turnkey. I'm looking closely now at turnkeys from three providers. I'll get in the game...just explaining what's been holding me back.
Frank, I agree with you. I'll definitely be pulling the trigger soon, though I expect I'll start with a turnkey. I'm looking closely now at turnkeys from three providers. I'll get in the game...just explaining what's been holding me back.
What markets are you seeing turnkey? I have researched Memphis and Pittsburgh.
I'm looking at properties from Norada and Real Wealth Networks. Trying also to look at Memphis Invest though they're a bit more challenging, although I've read great things about them. I'm not dialed into any one market yet but I value cash flow more than betting on growth. Many of the leaders of the turnkey companies are excited about Houston, Dallas, Tampa/Orlando and the growing southern markets. I find myself looking more closely at the Alabama and Ohio markets. I'm interested in Pittsburgh too as it's closer to me than Alabama, Florida, etc., but I haven't looked at much there. Have you found good turnkey people there?
I'm looking at properties from Norada and Real Wealth Networks. Trying also to look at Memphis Invest though they're a bit more challenging, although I've read great things about them. I'm not dialed into any one market yet but I value cash flow more than betting on growth. Many of the leaders of the turnkey companies are excited about Houston, Dallas, Tampa/Orlando and the growing southern markets. I find myself looking more closely at the Alabama and Ohio markets. I'm interested in Pittsburgh too as it's closer to me than Alabama, Florida, etc., but I haven't looked at much there. Have you found good turnkey people there?
I've never invested in Pittsburgh but did have a provider come to my Rhode Island meetup for a few meetings. I'm focus in multis so I didn't pursue it that much.
Analysis paralysis. Fear of getting myself into unescapable debt. Fear of hiring the wrong people (especially contractors). Fear of being unsuccessful once and quitting.
I am in the beginning stages. I have a RE agent that I am comfortable with. I have a CPA I am comfortable with. I'm working on choosing lenders and then I am going to attempt to find a contractor. Looking to maybe purchase a SFH for BRRRR or buy and flip towards the end of the year.
Any help would be appreciated.
What you expect to happen will largely affect what actually happens. Henry Ford said, "Whether you think you can or think you can't, you're probably right."
I'm not going to tell you exactly what you should do, but rather I'll point you in the direction that I think you should go. You should read what Napoleon Hill says about fear in his book, "Think And Grow Rich." That book really resonated with me. It confirmed a lot of what I've believed my entire life.
"There's nothing to fear, but fear itself." - Franklin Delano Roosevelt
Understanding how any of this is worth it in 2019.
Seems like a LOT of work to have a couple hundred dollars of passive income a month plus the risk that your tenants might break lease. Add that to the rent control movement sweeping the country, already sky high real estate values, and it seems like a lose-lose-lose. Why not invest in a REIT, or in a Vanguard account?
Imagine owning 10 doors that net you $200 each. That's $2000 a month! In my experience, if one expects a tenant to break lease, they almost surely will. I have been reading this thread for a few months now. I'm almost done with it, and I've noticed something: a lot of people posting to this thread express fear of <whatever> as the reason they don't get started. I don't have that. Everything I've ever been afraid of has already happened. It taught me that fear is rather stupid. It's an outdated emotion that should have no place in a modern, enlightened society.
You probably should invest in those other things, since you suggested them. Having multiple sources of cash flow would do well for you. Build good habits.
@Frank Patalano I am currently looking in the Ocala area. I guess I have been trying to look at it as a BRRRR type deal where I would be able to pay someone back after doing repairs/improvements and refinancing after the 1st year to pay back the lender/partner. I guess also part of the fear with it is how much the seller is trying to get for the property considering the comps. His property is a triplex, 5/3 with 2066 sqft, asking price of 155k. I found 6 comps, that sold within the last 6 months. Most were larger by about 600 Sqft and newer by 20-40 years. Couple of quads with 2695 Sqft, built in 80's, sold for 130K and 145K. Couple of duplex 6 bed 4 bath, built in 04 and 06 sold for 160K. Duplex built in 60's with 4 bed 4 bath, 1531 sqft, sold for 128K. Only Triplex I found, with 2736 sqft, built in 85 with 6/3, sold for 154k. Even though the property cash flows I found it over priced when looking at comps. But I can offer less than he is asking for. Thanks for the help!
I realize I'm later to the party than you are, but if the deal is still available, offer less. It's okay. You never know how desperate someone is to get rid of a property until you offer to take it off his hands.
Bay Area, CA · Member since 2019 · 20 posts · 1 vote
7y
A few things:
1. Learning while also having a full-time job. Can't quit as it's paying the bills, but also want to be more active than just passive investing so I can be in charge of my own destiny. My ultimate goal is to spend more time with family, though, so I have to balance hustling with actual having time with the family.
2. Deciding which avenue to pursue: Depending on the types of involvement, picking which path I should specialize in given no prior experience. I currently find multifamily or commercial very appealing, but there may be an avenue I haven't considered.
3. Education: Reading a few books, but ultimately feel a little too new to buy something because I'm not sure if it's a good deal. I feel like I need to know if it's good/bad/great before I can even make an offer. This involves actually picking an investment vehicle and networking to actually find things that aren't just Zillow/Redfin/Loopnet.
Rental Property Investor · Camarillo, CA · Member since 2019 · 5 posts · 1 vote
7y
My biggest obstacle is how to pick a market for multi-family investing. Our primary goal for investing is cash flow as well as appreciation over time. We have researched Florida, Texas, Alabama, Ohio etc and feel like any could be good options we just have to try one. I live in Southern California and am ready to jump in out of state.
How did you find your market? Any suggestions? Thanks!
1. Learning while also having a full-time job. Can't quit as it's paying the bills, but also want to be more active than just passive investing so I can be in charge of my own destiny. My ultimate goal is to spend more time with family, though, so I have to balance hustling with actual having time with the family.
2. Deciding which avenue to pursue: Depending on the types of involvement, picking which path I should specialize in given no prior experience. I currently find multifamily or commercial very appealing, but there may be an avenue I haven't considered.
3. Education: Reading a few books, but ultimately feel a little too new to buy something because I'm not sure if it's a good deal. I feel like I need to know if it's good/bad/great before I can even make an offer. This involves actually picking an investment vehicle and networking to actually find things that aren't just Zillow/Redfin/Loopnet.
If you love the concept of real estate investing you will be willing to learn at all hours of the day and night back. Sometimes I'm reading at 1 a.m. sometimes I'm listening to a podcast at 6 a.m.
some people love self storage, some people of industrial and some people hate both of those vehicles. You need to make a decision on what type of real estate to invest in. I personally invest a few different ways the same time.
Set deadlines and goals . Look at a hundred properties . Then make a couple offers . It's okay to be super low . You don't want to win every offer .
My biggest obstacle is how to pick a market for multi-family investing. Our primary goal for investing is cash flow as well as appreciation over time. We have researched Florida, Texas, Alabama, Ohio etc and feel like any could be good options we just have to try one. I live in Southern California and am ready to jump in out of state.
How did you find your market? Any suggestions? Thanks!
I like markets with growing jobs and growing populations with decent Cap rates. The states that you mentioned are all decent. You can find Opportunities anywhere. Sometimes they're more of a needle in a haystack.
I've recently been stationed in a new area, some of the local Investors I've encountered haven't been much help most have been trying to sell me on a program. So I guess for me it would be the lack of market knowledge, no end buyers and low on confidence tbh.
I've recently been stationed in a new area, some of the local Investors I've encountered haven't been much help most have been trying to sell me on a program. So I guess for me it would be the lack of market knowledge, no end buyers and low on confidence tbh.
Detroit , MI · Member since 2017 · 26 posts · 7 votes
7y
@Frank Patalano I bought the property living there now , sued one contractor, many others not dependable and funds dried up for the rehab. I gave 645 credit score still working on it my plan is to work some overtime the next few months to get the rehab back in motion
@Frank Patalano I bought the property living there now , sued one contractor, many others not dependable and funds dried up for the rehab. I gave 645 credit score still working on it my plan is to work some overtime the next few months to get the rehab back in motion
You've lucked out. I lost money on my first deal as well. Keep pushing through. Keep learning.
Investor · Lincoln, NE · Member since 2019 · 11 posts · 0 votes
7y
Unsure what type to go after (but looking at multifamily and vacation - really hate idea of flipping or anything very physically intense, and actually not interested in personally seeing it - long distance is good) and how to find the one to partner with (since i dont have any money of my own and lack the experience)
If you can find a great deal, my best suggestion would be to put it under contract and then find a partner. People do that with me all the time. The second option is the wholesale it. You have listed that you're a wholesaler
Unsure what type to go after (but looking at multifamily and vacation - really hate idea of flipping or anything very physically intense, and actually not interested in personally seeing it - long distance is good) and how to find the one to partner with (since i dont have any money of my own and lack the experience)
So let me get this straight. You have no money, no experience, and you want to do long-distance investing.
A re you going to be putting a lot of time into real estate? What are you bringing to the table for a partner to work with you.
For me the only thing holding me back is that I lack the knowledge of starting real estate I’m nineteen and hearing all these stories of failure backs me away from something I know that could be great for the future.
For me the only thing holding me back is that I lack the knowledge of starting real estate I’m nineteen and hearing all these stories of failure backs me away from something I know that could be great for the future.
This reminds me of a meme that I read at one point. Experience leads to success. How do you gain experience? Failures.
seriously though, taking action is the best way to learn things. Small failures are fine. I read something else recently that said what if I fail? My response would be, what if you don't
Katy, TX (Katy) · Member since 2019 · 5 posts · 1 vote
7y
For me I'm only 17,so my biggest hurdle as of now is acquiring the funds to purchase my first property and get the ball rolling. I'm Planning to use BRRRR strategy and making sure I can buy right