I am Shaking In My Boots

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I am Shaking In My Boots

Robert Williams
New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes

Hello All! I am new Real Estate Investing, and looking for some encouragement. I have been playing it safe all my life and now with so many options, I struggle making a decision on which route to go. No money saved, 700+ credit score, and people around me that do not understand my mindset. I need a community that will push me to Bigger Pockets no matter what.

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Kyle Parks
Rental Property Investor · Lakewood, OH · Member since 2016 · 119 posts · 156 votes
5y

@Robert Williams

5 years ago I had -$800 in my bank account. I had a car to drive for free and a free place to stay (furnished basement of a family member). I now own 5 doors. I have an airbnb property that stacks cash.

Most people are stuck in the rat race "matrix" and don't even know it. Finding this site was the first step. Start grinding and u will get there

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  • Ika Sargeant
    Real Estate Agent · Reston, VA · Member since 2017 · 295 posts · 163 votes
    5y

    @Robert Williams what you are experiencing is very normal especially when you start out. Many people experience this paralysis. You are over analyzing because you might think there is a perfect formula that will help get everything right. There is no such a thing. Trust that your analysis is giving you a good baseline of whatever property your are looking at. Work with other professionals who will assist in the decision making. More importantly take one project at a time. Go through that project and get experience. Next project it would get easier to make a decision.

    5Reply
  • Forrest Faulconer
    Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes
    5y

    @Robert Williams

    First step, surround yourself with people who DO understand your mindset. Forums are a good start, make some connections, get some conversations going and be fueled!!

    3Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Learn your market and learn to market.  Knowing you have a good deal in front of you will help keep the fears at bay.  It might be worth working for an investor friendly agent or local investor so you can see how common place deals are. 

    2Reply
  • Lynne Smith
    Rental Property Investor · NJ · Member since 2016 · 36 posts · 25 votes
    5y

    @Robert Williams with your credit score and location, I would highly suggest you look into a multi family home with a USDA loan. you can get 100% financing no money down. And then you can live in one side of the property and rent out the other side. If you Google usda map you'll find a link that shows you where USDA is allowed. If your credit score is over 640 you're highly likely to be approved. There IS a limit on household allowable income so anyone who lives in the house, over 18 years old, will have income limits. I can't recall for sure but I think it's about 90k for 1-4 people combined in same house hold.

    Cons : The down side to this scenario 1) you'll live next to your tenant (this can be a pro as well though because they can't hide from you and will be more likely to pay on time when you live right next to them), 2) multi can be harder to sell when you want to exit the property later on. My family has often found the best buyer later on is an existing tenant.

    Make sure before you buy.this type of property that tenants are current on the rent and ask for a rent roll from existing owner to verify this. It's just a paper that lists the payments each tenant made but it keeps the owner honest as they know you are relying on that in making the purchase and will have a lawsuit against them if they lie.

    7Reply
  • Vanessa A Martin
    Real Estate Consultant · Tampa, FL · Member since 2018 · 31 posts · 35 votes
    5y

    Welcome, and congratulations, certainly do not let other people's opinions stir you away from what you what to do! Surround yourself with the right people, Bigger Pockets is a great place to start. 

    3Reply
  • Mitch Messer
    Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    5y
    Originally posted by @DeShawna Travillion:

    @Matthew Irish-Jones I have managed to save 15k during this pandemic! Never owned/purchased a home. Excellent credit.

    ...any advice or recommendations to turn my baby pockets into BiggerPockets?

    Thanks for connecting; I do have some thoughts! To reach me directly, call or email (contact info is in my BP profile). I don't DM on this platform. 

    1Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y

    Thank you all so very much! I am no stranger to hard work, and discipline, and what has been put forth definitely helps me to a tremendous degree. I look forward to talking to each of you in the VERY near future.

    2Reply
  • Corey Frank
    Gillette, WY · Member since 2017 · 149 posts · 68 votes
    5y

    @Robert Williams welcome! This real estate thing is a marathon for sure. For me especially, I find it difficult to have patience. Finding a niche, learning how to analyze and finding information about tenets and other related things takes time to learn. It’s okay to take a little time to learn this. As long as “analysis paralysis” doesn’t take hold. To much information can be a bad thing. Network along the way 😁😁

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    Step 1: Switch to sandals, or sneakers if you're not a Birkenstock kind of guy like me.

    Step 2: Accumulate money. 2nd job, sell stuff, cut spending to the bone.

    Step 3: House hack. Buy a duplex/triplex/quadplex, live in the crappiest unit rent out the rest. Try to use an FHA with least amount of money down and keep the rest for reserves. Buy something that pencils to a profit from the beginning. Live there one year or more, fix up the crappy unit that you live in while you wait, move into your van, rent out your former unit, repeat.

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    6Reply
  • George Munoz
    Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
    5y

    Hey man , No worries, you are not alone, a lot of people went through that.just be patient, continue reading ( DONT STOP) , Hear all BP podcast episodes.. and try to get into a local meetup, and if you cant find it  ( create it) and keep been honest and transparent... Also Im here ( happy to connect, if you have any question or advise Im happy to to may best and give you the best I can .

    Regards

    2Reply
  • Ian Korpel
    New to Real Estate · Des Moines, IA · Member since 2021 · 4 posts · 6 votes
    5y

    Hey Robert. Most of the replies here seem to be from people that have made that leap and come out the other side. I am in the same spot as you my friend and just discovered the community. I completely understand your fears and share them. I am currently looking to buy my first rental and found myself stuck at the end of the "analysis" process. Multiple properties seem to cash flow well, I just can't make myself stop worrying about little things like: (bad tenant, getting sued, negotiating, bothering my realtor, how finished the property is, am I getting taken, etc. etc. etc....) However, it seems like at the end of the day, all of the advice here is to take the leap. If I end up failing, then I will have learned what NOT to do and hopefully do better next time. I don't know if this helps you or not but I just wanted to let you know that YOU ARE NOT ALONE!

    Keep at it!

    4Reply
  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y

    Robert. I completely understand your feelings man. I sometimes lie awake at night thinking about real estate. It's scary! You can lose everything! There's so much to learn! When will I know that there's a deal? You'll have these thoughts all the time but the key thing to know is that you just got to keep pushing forward. We've got your back! Stay strong!

    4Reply
  • Josh Mitchell
    Real Estate Agent · Naperville, IL · Member since 2013 · 402 posts · 177 votes
    5y

    @Robert Williams lets grab lunch sometime my man! Would love to help put your mind at ease and answer any questions you have. I invest as well, so can help give some ideas on how to start if you'd like. I'm in Naperville, so would be easy to meet up with ya.

    2Reply
  • Mel Hayes
    Investor · Los Angeles, CA · Member since 2016 · 256 posts · 110 votes
    5y
    Hi Robert,

    Been reading the post in here and the first thing that comes to mind is Robert is looking for a strategy that he believes in and believes he can execute.  Robert, I think finding a strategy starts with asking yourself Why and what am I looking to do?

    In Real Estate there are two forms of income Active & Passive.  Active means you're trading your time and/or skills for money and passive means your money is working for you.  If you are trying to replace your W2 job you are more than likely looking for Active income.  If you have some money (or someone with money trust you and is willing to lend to you) and you want to put it to work you are looking for passive income. I'm using the work passive very loosely because everyone who owns "passive real estate" knows that its not truly passive.  I think truly understanding the difference is very important.

    You active income roles are wholesaling, house flipping, project management, air bnb management, property management, and others I can't think of.

    Passive income might me lending, owning rental property, owning air bnb property, house hacking, etc...

    Before thinking about the what, think about the why.  Why do you want to get into Real Estate?  Do you want a sense of ownership?  Do you want to earn more money?  Do you hate your job? Do you have a bunch of money and don't know what to do with it?  Figure out your "Why" and that will lead you to if you are looking for passive or active income.  

    Best of luck Robert.
    4Reply
  • Ramon Vazquez
    Investor · Kansas City, MO · Member since 2018 · 117 posts · 46 votes
    5y

    @Robert Williams you got this brother. Just surround yourself with like minded people 👍🏻

    1Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Robert Williams - first, WELCOME! You've come to the right place. Most people here are very encouraging. Second, what are you interested in? Are you considering buying a property you can house hack? Do you have carpentry skills and would be interested in buying a live-in flip (this could be an option to finance with a very low interest rate and very low down payment FHA loan if you're doing owner occupied). Are you willing to stick your neck out there and talk to people and therefore might be a good fit for wholesaling? I would recommend you find a local Real Estate Investor's Association (REIA) and start networking. I find that the people who show up and say 'I'm new, I'm open to all advice and I really want to learn' get a lot of support from more experienced people. You might even find someone who is willing to partner with you on a deal for a small equity stake since you don't have cash to bring in but you have the work ethic and the willingness to do all the things they don't want to do. Also, talk to a lender so you know what you're qualified for so if you do find something you're in a position to make an offer. If you need more support, listen to the Real Estate Rookie podcast. You can draw a lot of inspiration from people just like you - there was just a 19 year old wholesaler on the program who is seriously impressive! You just need to take a little bit of action every day. When my boys are feeling overwhelmed at anything in life I always ask them 'how do you eat an elephant?' The answer is, one bite at a time. Small steps every day add up. You'll get there if you really want it!

    [email protected]
    2Reply
  • John Kaspar
    Homeowner · Abington, MA · Member since 2017 · 75 posts · 29 votes
    5y

    @Robert Williams

    Welcome,

    Put it this way:

    You have more to gain than to lose if you get into RE.

    2Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y
    Originally posted by @Bonnie Low:

    @Robert Williams - first, WELCOME! You've come to the right place. Most people here are very encouraging. Second, what are you interested in? Are you considering buying a property you can house hack? Do you have carpentry skills and would be interested in buying a live-in flip (this could be an option to finance with a very low interest rate and very low down payment FHA loan if you're doing owner occupied). Are you willing to stick your neck out there and talk to people and therefore might be a good fit for wholesaling? I would recommend you find a local Real Estate Investor's Association (REIA) and start networking. I find that the people who show up and say 'I'm new, I'm open to all advice and I really want to learn' get a lot of support from more experienced people. You might even find someone who is willing to partner with you on a deal for a small equity stake since you don't have cash to bring in but you have the work ethic and the willingness to do all the things they don't want to do. Also, talk to a lender so you know what you're qualified for so if you do find something you're in a position to make an offer. If you need more support, listen to the Real Estate Rookie podcast. You can draw a lot of inspiration from people just like you - there was just a 19 year old wholesaler on the program who is seriously impressive! You just need to take a little bit of action every day. When my boys are feeling overwhelmed at anything in life I always ask them 'how do you eat an elephant?' The answer is, one bite at a time. Small steps every day add up. You'll get there if you really want it!

     Thank You Bonnie. What interests me most is Wholesale and Flipping. I do have carpentry skills as I finished my basement by myself abut a year ago. I am totally open to whatever. The key for me is finding the properties and talking to people. I genuinely love talking to people, but I shy away from coming off like I'm trying to sell them something. If I get better at this and get over my nerves, I know I'll have my breakthrough. 

    0Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Robert Williams Home automation systems??!!! This is the first time I have seen a skill that could be really valuable for an experienced person. See if you can moonlight or consult for a builder or a small investor or two or 10? What an advantage for someone if they can set up a user friendly automated home flip or hold. A trusted source advising a non-techie on that stuff could be awesome and you would be spending LOTS  of time with the right people. 

    Seriously, you could really work that...good luck!

    Jon

    3Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y

    @George Munoz thank you so much. I look forward to speaking with you soon.

    0Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y

    @Ian Korpel it most definitely helps! It may help more to have someone to make the leap with! I was sharing with someone yesterday that my concern is failing and destroying my family. 3 little ones and a wife. It’s scary to think that I may not be able to take care of them.

    0Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y

    @Josh Mitchell Thank you. That would be wonderful!

    0Reply
  • Robert Williams
    OP
    New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
    5y

    @Jonathan R McLaughlin It has crossed my mind. As I stated in a previous response, I struggle with the “sales” part because I don’t want to come off pushy. But you’ve helped me realize there way more ways to enter than I originally thought. I love your creativity! Thank you.

    0Reply
  • Stanley Huertas
    Member since 2019 · 12 posts · 6 votes
    5y

    @Robert Williams I started with 15$ in hour. The first thing is saving. You need to forget about Jordan, iPhones , clothes , nice cars ect and saved everything no eating out no food no fun take a L for a whole year or even more I have 21 units with two more in contract I took a lot of L and sacrifices. Learn everything you can in the beginning to maintain them on YouTube. Then hire pm when you have enough

    3Reply
  • Carlos Villalta
    Wholesaler · San Bernardino, CA · Member since 2015 · 84 posts · 15 votes
    5y

    @Robert Williams get yourself a mentor bro it will help a lot.

    2Reply
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