Providence, RI 路 Member since 2018 路 29 posts 路 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.
Fear of making a mistake in a market that's seen a straight run-up for nearly a decade.
I made a mistake in 2011-2013 with my first SFR rental and that sour experience scared me off for over 5 years. That fear is tough to overcome and I'm still working on it.
I made mistakes when I started. I usually make 1 mistake every year or so. Luckily I do enough deals that it easily compensates for a loss once in a while. What about partnering with someone more experienced on your next deal?
Thanks for the tip, and I'm sure a lot of folks made mistakes. Partnering up is certainly a possibility if the tax implications aren't a mess.
I'm in the process of trying to map out what my goals are for the next five years, and specifically what kind of REI deals I want to get into. The market is obviously a lot different than the last time I studied it a few years ago. Before I was solely focused on SFR. Now, not so much.
Rental Property Investor 路 Mobile, AL 路 Member since 2018 路 54 posts 路 19 votes
7y
@Frank Patalano
The fear of something going horribly wrong. Inspection saying this and that and then when people move in the floor falls through and then I鈥檓 held legally accountable for injuries and then within one big swoop everything is taken away.
After I bought my first that wasn鈥檛 the problem. Now with the second its capital. Where I should put it, what鈥檚 the smartest move I can make with it etc.
Southern Utah 路 Member since 2019 路 8 posts 路 3 votes
7y
@Frank Patalano It's awesome how you are expressing that there is always a solution to whats holding us back. I am in search for a house hack in a SFH or a duplex and eventually BRRRR it out eventually. However, in my hot and rapid appreciating market, (ST. George Utah), it is hard to find anything cheap enough. I may look to invest long distance in TX or Boise Id, but am skeptical about that because I'm new to the game!
The fear of something going horribly wrong. Inspection saying this and that and then when people move in the floor falls through and then I鈥檓 held legally accountable for injuries and then within one big swoop everything is taken away.
After I bought my first that wasn鈥檛 the problem. Now with the second its capital. Where I should put it, what鈥檚 the smartest move I can make with it etc.
So you are past the first one. Congrats. On the second on you could partner because you have experience and they don't. Just an idea.
@Frank Patalano It's awesome how you are expressing that there is always a solution to whats holding us back. I am in search for a house hack in a SFH or a duplex and eventually BRRRR it out eventually. However, in my hot and rapid appreciating market, (ST. George Utah), it is hard to find anything cheap enough. I may look to invest long distance in TX or Boise Id, but am skeptical about that because I'm new to the game!
I don't know Utah at all. I will say that there has to be someone in all of Saint George that has a different opinion of the market.
There has to be an out of state owner that just wants out. Or a family who's love one died and they don't want to own a house.
Just doing a quick search I saw 9 houses with 4 beds each for less than $300K. I don't know how much you can rent a bedroom for but that sounds like an opportunity.
Medford Oregon 路 Member since 2019 路 85 posts 路 65 votes
7y
I've lived here 20 years, bought and short-sold my first home here. Not a glorious way to start but I was in my early 20's and young enough to learn and start over. I have watched housing here since 2004 and have been in the trades since 2000. Gotta make my connections work for me.
@Frank Patalano It's awesome how you are expressing that there is always a solution to whats holding us back. I am in search for a house hack in a SFH or a duplex and eventually BRRRR it out eventually. However, in my hot and rapid appreciating market, (ST. George Utah), it is hard to find anything cheap enough. I may look to invest long distance in TX or Boise Id, but am skeptical about that because I'm new to the game!
Ryke,
You could also consider investing a little in marketing in St. George, Utah. Identify the zip codes you might be interested in, create some ads for exactly what you're looking for, and run some tests on Facebook.
I haven't done this for REI personally as I'm as new like you and still figuring out a high level approach, but in my marketing experience in another industry I don't see why this couldn't work. You could score something off-market from someone who just wants out but doesn't know it yet -- until the ad lights a path for them. Just another tool to consider for the box.
Specialist 路 Queens, NY 路 Member since 2019 路 4 posts 路 0 votes
7y
What holds me back is the confidence and understanding of what exactly it is I am doing.
I have started doing this full time and have found many resources which will allow me to create deals. The only problem is I haven't done my first one yet.
I have investors waiting for me to find them the deal, which I have found. I have access to capital which is wonderful, but, its not that which is holding me back. Its the understanding on how to call the seller, negotiate, talk to them, get a good deal, then set up the right contract to get my investors to purchase them from me. Sigh... its doing that first deal....
Southern Utah 路 Member since 2019 路 8 posts 路 3 votes
7y
Great points there @Frank Patalano. Driving for dollars, door knocking and facebook ads seem like great ways to reach out to potential sellers. Is there any other creative ways that has found you success in your early stages! Thanks.
@Daniel Bradley Great idea Daniel! Spring Training down in Phoenix really gets me brainstorming potential investing plans;) you live in a cool place!
Great points there @Frank Patalano. Driving for dollars, door knocking and facebook ads seem like great ways to reach out to potential sellers. Is there any other creative ways that has found you success in your early stages! Thanks.
@Daniel Bradley Great idea Daniel! Spring Training down in Phoenix really gets me brainstorming potential investing plans;) you live in a cool place!
It's pricey here, Ryke! But it's also one of the top areas in the country for rent increases. I think I would only consider investing in some kind of MF or Commercial deal here with partners, and that would be a big jump for a first deal.
And yes, Spring Training games are great except for the extra traffic they generate! The area around the awesome new Cubs facility is blowing up with development.
Glendora, CA 路 Member since 2018 路 49 posts 路 16 votes
7y
Making sure I have the correct data to pick a great area to invest in. Not buying wrong. Getting my "team" together. I have a realtor so now just researching Contractors, PMs and Lenders. I have noticed that the more I learn about Real Estate, the less I am afraid to go after it, but only action can beat the fear of the unknown. I have a timeline for my first purchase though so am working on it everyday.
Specialist 路 Queens, NY 路 Member since 2019 路 4 posts 路 0 votes
7y
The more I learn, the more I realize there are so many ways to make deals. I've learned so many methods and so many strategies, its like a game of chess....which move will I make, except on what I am learning, it is finding the move that benefits the two sides. The buyer and the seller.
I have access to a syndication where I have been asked to find property on their behalf. Its basically a pool of investors that pile up large amounts of capital for a joint investment. Everyone gets a split for their share. Me as one of the investors (me) finds the deals for them because they are usually professionals in fields unrelated to REI so they are looking for people like us to assist them in acquiring the deals.
Flipper/Rehabber 路 Los Angeles CA and Clovis, NM 路 Member since 2019 路 35 posts 路 35 votes
7y
@Frank Patalano for me it was fear of losing it all. I got divorced in 2008 and I worked in the mortgage industry at the time. I was overleveraged on my properties. And I lost all but 2. It took me way too long to dust myself off.
Realtor 路 Columbus, OH 路 Member since 2019 路 83 posts 路 62 votes
7y
@Frank Patalano I'm waiting to next year to start my investing but I'm waiting because I plan to start with my condo but I would say the one thing that has me concerned is rehab and finding a good contractor. I've mentored with my broker so I know what to look for. I know where to and how to financing. So that's the only thing I'm not comfortable with.
What holds me back is the confidence and understanding of what exactly it is I am doing.
I have started doing this full time and have found many resources which will allow me to create deals. The only problem is I haven't done my first one yet.
I have investors waiting for me to find them the deal, which I have found. I have access to capital which is wonderful, but, its not that which is holding me back. Its the understanding on how to call the seller, negotiate, talk to them, get a good deal, then set up the right contract to get my investors to purchase them from me. Sigh... its doing that first deal....
That's great that you already have an investor. You just need to go out there an make an offer based on what you think that it's worth. Sounds like you need to get over the hump of making offers. Just remember that you are an investor. Your goals is to not lose money. If you are buying off market you are helping them get rid of a problem.
Great points there @Frank Patalano. Driving for dollars, door knocking and facebook ads seem like great ways to reach out to potential sellers. Is there any other creative ways that has found you success in your early stages! Thanks.
@Daniel Bradley Great idea Daniel! Spring Training down in Phoenix really gets me brainstorming potential investing plans;) you live in a cool place!
The only other thing that you haven't mentioned was network and find problem properties that investors want to get rid of.
@Frank Patalano what is REIT and what is Syndication
A REIT is a Real Estate Investment Trust that is often sold like a stock. They have to pay out a high percentage of all profits to investors to get a special tax status.
A syndication is a short term partnership to buy a larger piece of real estate. The goal is to fix a problem with the property and then sell it in a certain number of years.