What's holding you back from buying your 1st investment property?
264 Replies
Cody L.
Rental Property Investor from San Diego, Ca
replied about 1 year ago
Originally posted by @Trenton Doss :The biggest thing holding me back is funding. I'm a licensed real estate broker/property manager and I have the skills to acquire and manage properties myself. However, I don't have a down payment and I don't have access to private funding or accredited investors. I even have a PPM but no investors.
Why do you say you have "no access" to private funding/investors? They're everywhere. I can't tell you how many times I've gone up against some new group when trying to buy an apartment. It's some n00bs who never bought anything, don't have any $, but using OPM they outbid me by a huge amount (maybe because they're not as concerned with a return given it's not their precious down payment bullets)
Mekki Muyeeb
replied about 1 year ago
I have some questions on 50/50 partnerships. I'm trying to figure out how to set that up legally. This is in regards to dividing profits and protecting each other. Can anyone advise or provide links to advice on this?
James Williams
New to Real Estate from Charlotte, NC
replied about 1 year ago
@Salvatore Lentini I am having a hard time with financing. I am trying to learn wholesaling to help turn my situation around. My market is super competitive, how do I really get started wholesaling?
Craig Castro
from Manteca, CA
replied about 1 year ago
My biggest hurdle right now seems to be identifying where I want to invest. I'm trying to find areas that aren't over saturated but also have mild climates or little/no snow. Arizona is an area I personally like and would love to move to eventually, but that market seems like it's exploded so much that I've already missed the boat. I have 30k in cash along with 200k in equity in my home that I can deploy, but I just haven't found a spot that's affordable and has the mild climates I'm looking for (for some reason in my head I feel like milder climates would lead to less overall expenses).
I really want to purchase a property this year to start my journey but I just feel stuck at this spot.
Trenton Doss
replied about 1 year ago
Cody L
I'm new to the funding aspect of real estate investing. That's part of the reason why I'm here. I want to network and learn some new tools the trade so when I have a great deal, I can hop on it asap.
Anthony Brancato
Flipper/Rehabber from Chicago, IL
replied about 1 year ago
Finding a contractor to trust in Chicago
Chris Roche
Rental Property Investor from North Weymouth, MA
replied about 1 year ago
Lack of funds!
Noah Mccurley
from Belfast, Northern Ireland
replied about 1 year ago
What are some drawbacks of nnn commercial lease properties? They seem very enticing if you have the financing. Is it just hard to find financing for them?
Melissa J moore
replied about 1 year ago
We have a couple rentals and would love to have more. The problem now is funding. How do you get a 25% down payment besides slowly saving up? We refinanced our primary home for the last investment property down payment, so that's no longer an option.
Salvatore Lentini
Rental Property Investor from Doylestown, PA
replied about 1 year ago
@Konstantin Gradushy - Yes, Denver is crazy hot (ironic!). What about any of the surrounding town/cities? Greeley, Fort Collins, Colorado Springs, Boulder, Grand Junction? Could any of those be had cheap enough to cashflow but with appreciation upside in the future as more and more get priced out of Denver?
Ryan Lee
Investor from Bowie, Maryland
replied about 1 year ago
How to go about wholetailing a deal?
Luis M Nuno
from Sacramento, CA
replied about 1 year ago
@Salvatore Lentini college and not know what steps to follow
Salvatore Lentini
Rental Property Investor from Doylestown, PA
replied about 1 year ago
@Mike Hokenstad - asking prices are just that...."asking". That doesn't mean they will get it. If you think a property is worth 30-40K less, offer that. Find a realtor that is investor friendly and willing to put in multiple low ball offers. The more you put in the higher chance you have of getting a yes. As with many aspects of real estate... it's a numbers game.
Paolo Garcia
New to Real Estate from Brooklyn, NY
replied about 1 year ago
Deciding which city to focus on has been our most difficult hurdle. I live in NYC, but it's too expensive to invest in a property here. I want to focus and invest in another city/state that would have a lower point of entry and a greater ROI.
Adam Ruiz
Rental Property Investor from Boise, ID
replied about 1 year ago
@Salvatore Lentini general knowledge of the first steps. I started my LLC today guess I need to see about getting a broker and an agent.
Robert Hinzman
Rental Property Investor from Glendale, AZ
replied about 1 year ago
@Salvatore Lentini first I would like to say thank you for doing this! I don't know what route I want to take. I feel like I want to flip first so I can get the hands on experience with dealing with a rehab and to get me get some pocket money to buy more rental properties. Because now I feel like my biggest issue is funds and finding a partner that will pay for rehab, due to me not having much to offer to a potential partner because of my lack of experience. Which is why I want to kind of go the BRRRR strategy first, but I fall with the same issue, funds for rehab. I am currently working on closing on my primary residential home so that is where my funds are going to now. Question for you is 1) what kind of niche did you do for your first deal and 2) how did you fund it? Thanks in advance!
Torry Coleman
replied about 1 year ago
@Salvatore Lentini honestly I wouldn't know a deal if its slap me in the face. I want to buy a multifamily to house hack in Atlanta GA. But struggle with analyzing properties, rehab cost, and project rents. Even founding contractors or PMs.
Any advice you can provide would be great.
Salvatore Lentini
Rental Property Investor from Doylestown, PA
replied about 1 year ago
HI @Dara Thomas - What do you mean when you say you're really scared to see how problem #2 will work out for you? Having a full time job while real estate investing doesn't have to be a negative. It can definitely be a positive. You can qualify for loans easier with W2 and you can build a rental portfolio while you continue to make a salary.
Jorden P Dupont
New to Real Estate from Windham, CT
replied about 1 year ago
Just joined BP not even 15 minutes ago and this post already hit me like a ton of bricks. I've read dozens of books on REI and started listening to BP Podcast. I'm a total newbie at this! I'm 24 years old and have never even bought a house yet! I think the biggest thing that stops people from buying there first deal is the fear and uncertainty of it all. For me, I think its the fear of not knowing every step of the process. Is my math going to be correct? Did I forget to account for an expense? How do I know how much closing costs are going to be? I think the best thing for a beginner is to fully commit your time and energy on step 1 and 2. Educate yourself, and analyze properties every day until you can do them with your eyes closed. Once you have that confidence you can begin taking the next few steps of the process.
Noah Nelson
Flipper/Rehabber from Fort Myers, FL
replied about 1 year ago
@Salvatore Lentini I am in need of finding lenders. I’m going to do whole sailing but need people to sell the contracts to!
Robert J.
Rental Property Investor from Eugene/ Springfield, OR
replied about 1 year ago
Originally posted by @Craig Castro :My biggest hurdle right now seems to be identifying where I want to invest. I'm trying to find areas that aren't over saturated but also have mild climates or little/no snow. Arizona is an area I personally like and would love to move to eventually, but that market seems like it's exploded so much that I've already missed the boat. I have 30k in cash along with 200k in equity in my home that I can deploy, but I just haven't found a spot that's affordable and has the mild climates I'm looking for (for some reason in my head I feel like milder climates would lead to less overall expenses).
I really want to purchase a property this year to start my journey but I just feel stuck at this spot.
Each area has its pros and cons. Some of the set backs with milder climates (Oregon is considered mild) but it rains a lot here and the constant rain creates a lot of damage quickly if you're not on top of it as a homeowner. Great for investors looking for flips though. More mild climates or warmer climates might be more expensive and you'd be paying more for something because demand is higher. So your savings on "less maintenance" are really just paid upfront in the cost of property or in higher energy bills.
just a thought.
Kam Jefferson
from Washington D.C.
replied about 1 year ago
Hi Salvatore! Thanks for post.. I live in the Washington D.C. metro area and I’m intimidated by the market/price of investments.. I’m considering starting off in a lower price market but I’m not sure if that’s the best path for a newbie.
Craig Castro
from Manteca, CA
replied about 1 year ago
Originally posted by @Robert J. :Originally posted by @Craig Castro:My biggest hurdle right now seems to be identifying where I want to invest. I'm trying to find areas that aren't over saturated but also have mild climates or little/no snow. Arizona is an area I personally like and would love to move to eventually, but that market seems like it's exploded so much that I've already missed the boat. I have 30k in cash along with 200k in equity in my home that I can deploy, but I just haven't found a spot that's affordable and has the mild climates I'm looking for (for some reason in my head I feel like milder climates would lead to less overall expenses).
I really want to purchase a property this year to start my journey but I just feel stuck at this spot.
Each area has its pros and cons. Some of the set backs with milder climates (Oregon is considered mild) but it rains a lot here and the constant rain creates a lot of damage quickly if you're not on top of it as a homeowner. Great for investors looking for flips though. More mild climates or warmer climates might be more expensive and you'd be paying more for something because demand is higher. So your savings on "less maintenance" are really just paid upfront in the cost of property or in higher energy bills.
just a thought.
You're absolutely correct on that. I've been trying to find areas with little rain too and I think the main reason for that is the wear and tear on a bigger ticket item like a roof, but I'm sure the trade-off with that is warmer climates would likely need more HVAC work which is just another big ticket item that can potentially go bad too. Another mental block for me is I'm trying to think of places that I, personally, wouldn't mind living and I know I need to stop thinking that way. It's not a house or location that I'm going to live in.
Max T.
Investor from Philadelphia, Pennsylvania
replied about 1 year ago
Time travel.... I'd have to go back in it to do my 1st again.