What is your biggest problem you face right now as a REI?

Rental Property Investor · Denver, CO · Member since 2018 · 183 posts · 172 votes

Hello Bigger Pockets Community:)

What's everyone's biggest frustration/problem you face right now as a real estate investor?

For myself, it would be deal flow. My partners and I will look at 100 deals and about 5-8 of those will fit our invest criteria. The more deals we have to analyze the better.

I'd love to hear your answer.

My biggest problem I face right now as a REI is..............

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Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Funds to purchase. I can find deals regularly, even in my difficult market. But getting the funds together takes time because I'm not willing to over-leverage and borrow my way to success.

The truth is, I could sacrifice more of my personal time or family and work more to get the funds. However, my family is more important to me than an accelerated business plan.

We can't have everything.

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Kristina Mcleroy
Rental Property Investor · Victoria, TX · Member since 2015 · 26 posts · 19 votes
7y
@Matthew Baltzell as a wholesaler, my biggest frustration is finding deals, and buyers not getting back with me after they say they want to buy a property.
11 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Funds to purchase. I can find deals regularly, even in my difficult market. But getting the funds together takes time because I'm not willing to over-leverage and borrow my way to success.
The truth is, I could sacrifice more of my personal time or family and work more to get the funds. However, my family is more important to me than an accelerated business plan.
We can't have everything.
The DIY Landlord Book4.7248 Reviews
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38 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
@Matthew Baltzell I invest in my immediate area-within 1 hour from home and there just is not enough inventory right now. Anything further out becomes a PM problem-my wife and I self manage and we are on the hunt for 6 units and up-I know I am being too picky on size and location; it is what it is! Great question!
11 Reply
Kyle Mitchell
Multifamily Syndicator · Greater Los Angeles Area · Member since 2015 · 399 posts · 261 votes
7y
@Matthew Baltzell I am in the same boat as you are. Finding deal flow has been a challenge, there are tons of "deals" out there but not of which pencil out. Over the past few months I have heard several people say it's taking them 100 deals to get 1, I am now hearing it is taking some up to 250 deals until they find the right one. Patience is key and so is sticking to your criteria though!
8 Reply
Tony Kim
Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
7y
Finding a suitable place to deploy my 1031 exchange funds. Had a few potential multiplexes that I thought might be OK, but had to walk away from them.
2 Reply
Chris LumLee
Investor · Honolulu, HI · Member since 2017 · 187 posts · 108 votes
7y
For me, it's trust. I have trust issues so one of my property management companies I don't trust at all. I also don't trust that the tenants will stay long-term so I tend to pay more on my loan payments to try to pay down the balance even though the opportunity cost is that I won't have a bigger cushion for set-asides.
4 Reply
Theo Hicks
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y
Finding TRUE value-add apartment deals. Most of the "value-add" deals listed today in my market aren't really value-add (either too turnkey or too distressed) and/or the rent premiums listed are incorrect, because they are based on incorrect comps.
9 Reply
Alex Franks
Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
7y
I don't think it is a problem per say. More or less juggling projects and keeping our GCs in order. As we have quite a few in the pipeline. Building quite a bit and rehabbing a 16 unit and few seperate rehab units. Some days never enough time.
Alex
2 Reply
Tandi H.
Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes
7y
Finding deals that aren't in C neighborhoods.
7 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Easy to find good cash flowing deals . The funding is the issue for me .
5 Reply
Tandi H.
Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes
7y
@Nathan Gesner @Dennis M.
I wish I was in your area! I have the funds burning a hole in my pocket, can't find a decent place to buy. For example, just found a triplex, about $300k (common in this area for A-B neighborhoods). If it had been in better shape I would have bought it. A+ location, C- building. Old galvanized pipes, ancient water heaters and AC units, crumbling stucco, terrible layouts...hard to find anything in a good area and good shape at that price around here. I want to cash flow $1000/mo per property with 25% down, that would be 3-4 doors.
3 Reply
David Lichtenstadter
Rental Property Investor · Northern NJ · Member since 2016 · 341 posts · 144 votes
7y
@Nathan G. What’s your secret sauce ?
1 Reply
David Lichtenstadter
Rental Property Investor · Northern NJ · Member since 2016 · 341 posts · 144 votes
7y
@Nathan G. Guys there’s no secret sauce, what’s your strategy ? Seems like most of us this is our issue, also if you don’t want to barrow yourself to wealth why not partnerships ?
2 Reply
Matthew Baltzell
OP
Rental Property Investor · Denver, CO · Member since 2018 · 183 posts · 172 votes
7y
Great comments everyone, I appreciate you sharing your insight!
2 Reply
Molly Walsh
Member since 2018 · 2 posts · 2 votes
7y
@Matthew Closing on deals seems to take the longest. We have been trying to close on a house that our friend Wholesaled to us for about 6 months now due to title issues.
1 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@David Lichtenstadter No secret sauce. I specialize in rentals so they come to me when they're ready to sell. I see plenty more that are ripe for the picking but I'm waiting to save funds before I approach them.
Why don't I partner with someone? Because I haven't found the right person and I'm not in a hurry. There's nothing wrong with saving up and buying when I'm ready. I don't have to split profits, I don't have to answer to anyone. That's worth a few percentage points.
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9 Reply
Todd Dexheimer
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
7y
Biggest problem is deal flow of high quality value add assets. I get a lot of very marginal deals sent to me, usually my numbers are off by 10-20% of the whisper price/sales price.
3 Reply
John CasmonPro Member
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
7y
Like @Matthew Baltzell and @Todd Dexheimer finding true value-add deals is a challenge right now. Another challenge right now is labor and rising construction costs.
4 Reply
Account Closed
Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
7y
@Matthew Baltzell I would say finding deals for cash flowing C properties in B neighborhoods that fit our rhab timeline. Deal pipeline is full of prospects just no home runs right now. Plenty of $ - and a line of passive investors. Lastly, networking with fellow accredited REI that are more action than talk. Seems like a lot of folks regurgitating Grant Cardone or Gary V nowadays.
4 Reply
Eric Thompson
Member since 2018 · 14 posts · 5 votes
7y
@Account Closed Are you investing around Seattle or out of state? Would love to understand what you consider a B class area around here.
1 Reply
Andre Exantus
Member since 2018 · 6 posts · 3 votes
7y
@Kristina Mcleroy Hey Kristina, I’m curious what do you do if you can’t find a buyer but the the property is under contract?
0 Reply
Juan Vargas
Investor · Houston, TX · Member since 2015 · 233 posts · 188 votes
7y
Finding value add multifamily properties where the broker hasn't added the "value add component" into the whisper price. The whole point in buying a value add is to "add value", not to pay premium for it and STILL have to inject more capital into it.
14 Reply
Andre Exantus
Member since 2018 · 6 posts · 3 votes
7y
@Dennis M. Hey Dennis, I’m facing the same problem as a newbie
0 Reply
Kristina Mcleroy
Rental Property Investor · Victoria, TX · Member since 2015 · 26 posts · 19 votes
7y
@Rueben Exantus If you can not find a buyer, check your numbers. If you are certain you have a deal, consider doing a JV with someone with more experience and a network of buyers. More importantly, do not be greedy as a wholesaler. Feel free to send me a colleague request and ask me anything, anytime.
1 Reply
Matthew Baltzell
OP
Rental Property Investor · Denver, CO · Member since 2018 · 183 posts · 172 votes
7y
@Juan Vargas it's interesting to see what brokers/investors consider to be 'value-add' opportunities.
It's more important now, then ever to stay true to your investment criteria.
Stay the course and the right property will come along.
3 Reply

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