What do you think stops people from starting?

Starting Out
5yFollow

What do you think stops people from starting?

Zoie Holley
Rental Property Investor · Columbus, OH · Member since 2021 · 16 posts · 10 votes

So I’m 20 in college and going into my final two semesters of college and I’m reading my first real estate book and I wanted to do the housing hacking route in West Virginia (that’s where I go to school and what’s the market like there?) . Anyways should I just wait until I’m done with school and take this time to learn as much as I can or just jump in while I’m still so excited about it?

Also what do you think stops people from doing this (specifically) ? The idea of having to take a loan out? The cost of rehab or it being more than you intended? Not being able to find tenants or it being a bad deal and not even being able to break even? Etc

3Reply
46 views

Most Popular Reply

Michael Carbonare
Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 606 votes
5y

What stops people from starting?  This place, along with YouTube videos, various podcasts, Facebook groups, etc.  It's called Paralysis of Analysis.

17Reply
See this reply in the discussion

36 Replies

Jump to latestLatest
  • David Murphy
    Dublin, County Dublin · Member since 2021 · 28 posts · 15 votes
    5y

    Hi Zoie, first off I'm always glad to see others in college interested in real estate. I may not have years of experience but I recommend that you do not enter real estate investing until you have spent a few more months studying it. If you still feel like you want to do real estate investing after let's say 3-6 months of studying it (podcasts, books, youtube videos and webinars) then I would recommend going into real estate then. What you don't want is to be one of the people that got swept up in the growing trend of real estate investing and overpays for their first property and then loses interest in real estate while still having to pay back the loan. 

    I would love to connect as a fellow newbie in real estate. I would also ask if you have any prior experience in investing such as the stock market or not since the mentality of investing rather than speculating is one that is easy to explain but hard to put into practice. Good luck.

    5Reply
  • Michael Carbonare
    Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 606 votes
    5y

    What stops people from starting?  This place, along with YouTube videos, various podcasts, Facebook groups, etc.  It's called Paralysis of Analysis.

    17Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Very common: they have no financial discipline and so never save any cash to make purchases. Some of these people try wholesaling, thinking they'll make a boatload of cash that way. But they don't.

    4Reply
  • Brett Tvenge
    Flipper/Rehabber · Phoenix, AZ · Member since 2018 · 268 posts · 152 votes
    5y

    @Zoie Holley MINDSET.

    3Reply
  • Kunal Mishra
    Flipper/Rehabber · Jersey City, NJ · Member since 2016 · 158 posts · 86 votes
    5y

    @Zoie Holley

    Thinking that you need a lot of money before getting started , yes you do need some money to get started.

    And people around you who might stop you from taking the first step.

    3Reply
  • Pamela Berkeley
    Member since 2021 · 5 posts · 6 votes
    5y

    I graduated college in 2008 into the crash. None of my generation at that time knew that was coming. Couldn't get a job to save my life for more than 3 months at a time and making $8-10 dollars an hour which just let me pay for my cell phone-- I couldn't even buy a car. I remember at graduation we were looking at the economy and saying to each other "I hope I don't end up working at McDonald's" and then six months later cheering and celebrating with a friend for scoring a job at Chick Fil A because that was a feat! Every job required "experience".  

    I remember eyeing real estate then wishing but I couldn't even pay all my bills. The people a little older than me had already established jobs, and so they had "experience"; the ones younger than us had a little time to adjust, maybe adding a second major that was more resilient to the market. 

    Basically I'm 35 now and we have only just recovered and are in a good financial place for the first time. And now I'm starting, I'm hoping to buy a multi family this month.

    But that's my personal story of why I didn't start earlier.

    3Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    There are a couple things to consider. If the market is anything like mine, it is literally nuts right now. People are paying prices that don't make sense and it's just not sustainable. There's going to be a correction of some sort, so you should only buy if you can find a good property at a good price. This means you have to really crunch your numbers and you'll probably want to buy something off-market and below today's market values.

    Starting now is ideal because you live there and can get the ball rolling first-hand. Once you complete college and start focusing on other things, it will be hard to go back and invest in that area.

    What stops people? Sometimes life throws us a curveball and we're temporarily unable to move forward, but we are usually the reason. People are afraid of failure. They don't want to sacrifice things today for what they may gain tomorrow. Why make a healthy meal when there's leftover pizza and pop in the fridge? Nobody gets fat from one piece of cake. I really need a new car and want to buy something new to celebrate . . . whatever.

    Live different today so you can live different tomorrow.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    5Reply
  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    5y

    @Zoie Holley If there's a deal today why wait? Househacking is a great way to get started, especially with a college rental. You can rent out bedrooms to people you trust. If you go this route make sure you have a strong lease and use parents/guardians as co-signors. Hopefully potential roommates will be your friends but you don't want to be taken advantage of. 

    What stops people? There's endless answers. REI isn't for everyone. What of the biggest dream killers is lack of knowledge, which leads to fear, which leads to doubt and ultimately inaction.

    4Reply
  • Erika Lopez
    Contractor · South New Jersey · Member since 2021 · 27 posts · 8 votes
    5y

    Hi @Zoie Holley, I'd say study a little more but jump in right away. Analysis of Paralysis is one of the biggest mistakes people do when starting and so you don't want to over think it but definitely educate yourself more. You said you are excited to start and that's great motivation. I would also see if I could find a mentor that is willing to help you on your first deal. Start going to your local REI groups and network, pick some of the investor's minds and take notes. Definitely finish school in the meantime.

    1Reply
  • Kalvin Paramore
    Oklahoma City, OK · Member since 2020 · 3 posts · 3 votes
    5y

    @Michael Carbonare hahahah

    2Reply
  • Scott Kaczmarek
    Investor · Dallas, GA · Member since 2016 · 59 posts · 57 votes
    5y

    @Zoie Holley - I think in most instances it’s either lack of funds (savings when starting out) or an inability to take effective action after you’ve educated yourself over a period of time.

    While there are options to enter REI with little money, you have to make up for it in hustle and grinding. Most, including myself, just don't want to do it. Instead we work hard at our 9-5 jobs to earn an income and be disciplined to set aside dollars each month to invest in our next investment. As I said, there are other ways but I'm going to guess the vast majority do as I describe.

    Education is essential and having ‘A Why’ is important but at some point you have to put the phone or book down and execute. Realize you won’t know it all and you’ll likely learn more once you start. I took six months to learn everything I could, build my cash fund, develop my strategy but by the end I leapt and invested. I knew enough to not be a danger to myself but I learned the most on the journey.

    Best to you.

    2Reply
  • Cody Cross
    Realtor · Lake Charles, LA · Member since 2019 · 39 posts · 25 votes
    5y

    @Zoie Holley get with another more experienced local investor, ask them to let you be apart of the deal when you find one and get their criteria, bring them the deal and follow along for the ride. Risk free and added value experience

    Download deal machine ($100), take a picture of 100 houses, skip trace all 100 properties ($14), start calling and asking if people are motivated to sell (in better words) then follow up and expect it to take a minimum of 3 months and 300 properties to find a deal. Total cost: ($342)

    I have a deal closing today from doing this. It’s pretty simple honestly just do it every day for 90 days, get out of your own way and you’ll find a deal and find a way to be apart of it.

    Don’t be afraid, you’re 20 and have nothing to lose. Biggest way to add value is bringing a deal to someone who knows more than you do.

    3Reply
  • Tom Hovind
    Real Estate Agent · Haverford, PA · Member since 2020 · 9 posts · 5 votes
    5y

    @Zoie Holley Hi welcome. Should you do it? That’s a personal question that really only you can answer. I suggest you watch the podcast interview (#434) with Scott McGillivray. He got started in college as well. He had some interesting things happen, and some good ah ha moments. Well worth the listen, and should help you out in deciding what’s right for you.

    1Reply
  • Catie Lawrence
    Flipper/Rehabber · Arvada, CO · Member since 2019 · 63 posts · 47 votes
    5y

    @Zoie Holley awesome you’re getting into real estate at such a you g age - I truly believe it’s one of the best ways to build wealth.

    I’d suggest joining some meetups in your area to stay in tune with the market - so many resources here on BP too!

    Think a lot of things stop people - fear, laziness, comfort, complacency....it’s scary to do things you’ve never done that could have big risks. But as long as you plan, have your finances in order and educate yourself you’ll be fine! House hacking/roommates are a great way to get into the game too!

    Good luck, you’re already miles ahead for starting!!

    1Reply
  • Grey Drummonds
    Atlanta, GA · Member since 2016 · 17 posts · 9 votes
    5y

    @Zoie Holley Congrats on being so close to graduating college. That is exciting in and of itself. Regarding the question of why people don't house hack and invest in general, is simple in most cases. People either want to keep their comfortable lifestyle, are in a transition phase, or just simply don't take action. As Americans, we want to be able to do everything we want to do but don't need to do (eat out, buy expensive clothes, have an insane car payment). This keeps people from investing in real estate because their mindset is stuck on liabilities and showing off their money instead of growing it. In your case, a lot of people are in transition phases. About to graduate from college, moving to a new city in two months, or trying to get their money in order, being in a transition can keep people from buying. Transition phases are hard. I am in one now, also finishing up school very soon. Lastly, people talk the talk but don't walk the walk. Some people are not only in analysis paralysis but just simply don't care enough about their financial side of life to change it. Best of luck in your future post-undergrad and beyond! 

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

    Many people aren't uncomfortable enough in their current life to make a move.  Many people are afraid which boils down to not knowing something.  If they figure out what they are afraid of, they can work out what they need to in order to proceed.

    4Reply
  • Vince LaSotaPro Member
    Rental Property Investor · Columbus, OH · Member since 2019 · 8 posts · 7 votes
    5y

    @Ian Walsh

    I have to agree here. Not being uncomfortable enough is what has kept me from taking that first step. I have a great job and work for a good company. However, this isn’t my authentic life. I want to be financially independent and I want to be free. It’s time to just jump.

    3Reply
  • Ben Morand
    Property Manager · Central Florida · Member since 2020 · 236 posts · 128 votes
    5y

    @Zoie Holley Hey Zoie! I also am a college student from Orlando entering my final 2 semesters! Currently, I am up at UF in Gainesville but plan on moving back home to Orlando once I graduate. I have been in real estate for about a year and a half now and I love this industry for so many reasons! I’d say the biggest thing that holds back MOST new investors is just simply being afraid of the unknown. This often causes people to fall into “analysis paralysis” and never actually take any action.

    For me personally, my "road block" was the financing aspect of the deal. I felt overwhelmed with how I'd fund a deal and that held me back from getting started. However, I after some time, I decided to reach out to a bunch of active investors and found out that there are many ways to get by this. I wrote about a couple of the potential strategies in How To Get A Loan Directly Out Of College (No Work History Necessary!). 

    Hope this helps! If you have any questions or just would like to chat, feel free to shoot me a PM!

    2Reply
  • Chris Pasternak
    Real Estate Broker · Pueblo, CO · Member since 2013 · 366 posts · 303 votes
    5y

    Thinking.

    0Reply
  • Josh Landsman
    Member since 2021 · 1 post · 1 vote
    5y

    @Zoie Holley it might be the small details that aren’t really explained in mainstream videos (taking out loans for investment purposes, actually walking into a bank and trying to get money). I think a lot of videos stress buying rehabbing refinancing and renting- but how do you actually refinance?? Do you hire a real estate agent to rent it for you?

    Could be the fear of going into a large investment alone that stops people from making a decision.

    1Reply
  • Zoie Holley
    OP
    Rental Property Investor · Columbus, OH · Member since 2021 · 16 posts · 10 votes
    5y

    @Josh Landsman I agree I know personally I’m a little frighten to take out a loan, cause what if I’m not able to pay it back??

    0Reply
  • Rajesh Mittal
    Rental Property Investor · Cranbury, NJ · Member since 2021 · 13 posts · 8 votes
    5y

    @Zoie Holley Mind is the only culprit I know. 😀

    1Reply
  • Brian Plajer
    Rental Property Investor · Chalfont, PA · Member since 2021 · 189 posts · 90 votes
    5y

    @Zoie Holley Fear is what stops people especially if they have dependent counting on them. There is risk involved and everyone has different tolerances for risk. I think its best to take your chances now, while young. In ten years you’ll be so far ahead of the game

    1Reply
  • Kenji Otokawa
    Investor · Atlanta, GA · Member since 2018 · 19 posts · 26 votes
    5y

    @Zoie Holley

    So many things. My favorites are below:

    1. There is no deadline. Many people who would be great investors have a lot of other stuff going on in their life. They always want to invest but are busy or distracted with other things. They keep pushing their first investment, and before they know it, years go by.

    2. Analysis paralysis and fear. The 9-5 is safe. Someone holds your hand by guiding you and telling you what to do. In RE, many let the what if’s stop them from investing. To combat this I recommend partnering. We often feel better about jumping in if someone takes that risk with us. I am forever grateful to my real estate partners.

    Good luck and hope this helps!

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    @Zoie Holley

    There isn't much to most people. Take away the master who tells them what to do, watch them look for another hand to pat them, feed them, and beat them.

    3Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free