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.
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.
Instead of a timeline perhaps think of having a goal to make some many offers a week.
Also of you have a great realtor they probably have great referrals.
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.
There are so many ways to be successful in real estate. Syndications have many positives and negatives. I've invested in a few.
@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.
Yeah being overleveraged will get you into trouble. Now you have so much experience. Learn from past mistakes and grow. You can do it.
@Frank Patalano Fear of what to come/expect. More money, more problems.
I'd rather worry about problems with $100,000 in my bank account than $10. By the way, sometimes I get nervous when my bank account start dwindling. Especially if I need money for an investment but another closing got stalled. Then, I shake my head and remember when I considered that to be a lot of money.
Fear is a common problem but knowledge and experience will help you overcome it. I still have fear but set goals and take action often.
@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.
Hey listen. Good contractors are definitely hard to find. Some say it's harder to find one than it is to find a deal.
2 strategies.
1. Be early early at home Depot. Some say that the best contractors are in and out as soon as the place opens.
2. Go to your REIA and get referrals. They won't give away their best contacts but will recommend decent people.
Within the next few months im looking to buy my first deal, which I have already found a three family house and ran the numbers which work for me in my situation. The only thing holding me back currently is my decision on to pay off my student loan debt first or to invest in the property. I also started a new job about two months ago which almost doubled my income. Im leaning towards investing in the property more so i can make minimum payments on loans until i refinance and take out a solid chunk of the debt then continue on.
Within the next few months im looking to buy my first deal, which I have already found a three family house and ran the numbers which work for me in my situation. The only thing holding me back currently is my decision on to pay off my student loan debt first or to invest in the property. I also started a new job about two months ago which almost doubled my income. Im leaning towards investing in the property more so i can make minimum payments on loans until i refinance and take out a solid chunk of the debt then continue on.
Thanks!
Buy the property. I've seen if both ways with Student loans. My partner Jimmy house hacked his first property and used the extra money from the house hack to pay down the student loans faster.
I just finished my first flip. My partner and I didn’t communicate well and we blew the Reno budget. At this point I’m frustrated and disappointed. 11 weeks after starting it I’m just glad I’m not losing money. I know that is better than a lot of people’s first experiences but I was counting on this going much better. Im back to square one and not sure if I should flip again or buy a rental. Right now I’m using the money I do have available to pay off some other debt.
I have a fear of flipping again just to have the same thing or worse happen. I have gained a lot of knowledge but I really had expected to walk away with a little capital to invest again. Help me out! What’s the right step forward?
@Frank Patalano at the very beginning what held me back was fear of networking, had to get over that really fast though haha.
And now you are awesome to network with. It is easy for some people and harder for others. Did you get better at a Huntsville meetup or did you take a class?
I just finished my first flip. My partner and I didn’t communicate well and we blew the Reno budget. At this point I’m frustrated and disappointed. 11 weeks after starting it I’m just glad I’m not losing money. I know that is better than a lot of people’s first experiences but I was counting on this going much better. Im back to square one and not sure if I should flip again or buy a rental. Right now I’m using the money I do have available to pay off some other debt.
I have a fear of flipping again just to have the same thing or worse happen. I have gained a lot of knowledge but I really had expected to walk away with a little capital to invest again. Help me out! What’s the right step forward?
I think that you are beating yourself up over nothing. You took action. You broke even. You gained experience. Sounds like a great deal to me.
You should probably try another flip if you find the right deal.
Brigham City, UT · Member since 2016 · 1 post · 0 votes
7y
It’s funny the kind of thought processes are happening when I ask myself what’s holding me back. I first think “We’ll, it’s just that I don’t know enough about it yet”. Then I question myself and ask whether it’s that I don’t know enough yet, or if my confidence in what I DO know isn’t strong enough yet. Then I try to determine what would make my confidence stronger in what I do know, and for me, it would be if I knew that I knew enough to get started. Then I think “How do I know I know enough to get started?” I remember all the books on this subject I’ve read or at least have in my possession and I’m pretty sure that’s a great start.
Well then, if the education side of things is basically taken care of, at least for the first deal or two, what is it? Probably the money since right now we barely have $10,000 saved up for our first deal. I’d also say the local market is kinda crazy, but I just haven’t been diligent enough to search the markets around where I live yet I guess.
Another thing I can think of is that, according to Brandon’s recommendations in his book on real estate investing, that I need to create my team and build those relationships.
Other than that, the only other thing I’d say that’s holding me back is my unfamiliarity with analyzing deals, which I know will come as I take time every day to analyze deals.
So, there you have it: Education, Money, Relationships, Analysis.
Before buying my first home I was to caught up with getting a great deal. After a lot of offers and shopping around finally figured out it was better to get a good house in a nice area that I could afford. It wasn't a home run but a solid base hit.
It might help your confidence if you start asking people you know for realtor recommendations. I found one I actually worked with. She was great helped me get a good loan officer to. This way you don't have to just rely on your own knowledge. I had over 60 years of experience between my realtor and loan officer. They helped pick good areas to look in and kept me realistic about what I could afford and what was to big of a project. ( I can always seem the diamond no matter how rough it is) Also if you're worried about the money a good loan officer can help you figure out exactly what you need to have and what your credit score should be.
I am Canadian but want to try the BRRRR strategy in the US. I am scared because I have no clue how to do it from so far away and it sounds so daunting. I recently bought David's book 'Long distance investing" and eagerly awaiting it.
Well then, if the education side of things is basically taken care of, at least for the first deal or two, what is it? Probably the money since right now we barely have $10,000 saved up for our first deal. I’d also say the local market is kinda crazy, but I just haven’t been diligent enough to search the markets around where I live yet I guess.
Another thing I can think of is that, according to Brandon’s recommendations in his book on real estate investing, that I need to create my team and build those relationships.
These two are key imho.
If you're thinking local then I recommend finding a seasoned local realtor/investor first who is in your corner. Someone genuine who wants to help and doesn't see you as nothing more than an open wallet for commissions.
That person will serve as the conduit to building out your local team. Chances are if they've been active in REI for years then they've already got a team in place.
My probable intention is to have a local team and two or three out-of-state teams. I don't even know if I'll do anything locally based on market conditions, but I want to have some folks in my corner juuuust in case. I'm personally working on the local connection right now.
Real Estate Agent · Mira Mesa, CA · Member since 2014 · 218 posts · 49 votes
7y
I have to support my mom financially so it reduces my income. So saving money to invest is tough and I have to think extra hard about taking risks because my actions can affect several people. I'm finally in a group that is closing frequent deals now so things are finally turning around!
Knoxville, TN · Member since 2019 · 26 posts · 16 votes
7y
Currently two things holding me back. One is saving enough capital and the other is repairing my credit. I plan on buying my first property once my credit is fair and I have a fair amount of capital.
Debt to income ratio too high, available funds too low. I'm starting to get a pretty good understanding of what I can offer for properties and have my criteria sorted out fairly well but my debt to income is 51% and I don't have any money saved up. I am currently trying to make double payments on credit cards and reduce debt before I go to a lender to get pre approved. Is the the right move?