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

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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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David H.
Madisonville, LA · Member since 2018 · 125 posts · 71 votes
7y
Finding time with too many irons in the pot. I put in alot of ours at my day job, which pays good and I like it. Also wrapping up a big remodel on my house that I did myself which will enable me to use cash for the next couple purchases and then refi and keep it going. Have a rental house I am buying that I need to remodel so I can refi and get my money back, but since i haven't done a ton of these I'm doing a few things myself to ensure I get what I want back on the refi. Along with trying to balance all that with family time. I'm pretty close to wrapping up these projects tho which will enable me to be more efficient next yr. I am hoping anyway lol
0 Reply
John Hickey
Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
7y
@Matthew Baltzell shootings, hookers, pimps, addicts and thieves. Also frozen pipes, running toilets, leaking roofs, old windows/doors, lead paint. Tenants that don’t pay rent, throw garbage out the window.
3 Reply
Account Closed
Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
7y
@Eric Thompson Both. Class B in Seattle would probably be Ballard & Some parts of Beacon Hill and Columbia City, and some parts of West Seattle near Alki (Class A for waterfront area). Other Class A for King County would be Eastside (Mercer Island, Bellevue, Kirkland, Issaquah). Hope that helps. Dan
0 Reply
Bjorik Mutize
Real Estate Broker · Minneapolis, MN · Member since 2016 · 530 posts · 398 votes
7y
@Matthew Baltzell my backyard market and surrounding sub markets is extremely tight and competitive, creating a barrier of entry. I need to move quicker on researching and analyzing other markets or I’m not going to find much properties that make sense for a while.
0 Reply
Maxwell Fontaine
Specialist · Lynchburg, VA · Member since 2017 · 162 posts · 90 votes
7y
@Matthew Baltzell Time. Surprise on this one lol. I took a year to study and get my funds together. That duration I found lenders which is a good solution for now to grow. But... the time to “wholesale” my own deals. This market I’m in is doable but you need time to find them. My approach is to find them by taking the role of a wholesaler but I just find them myself/ lenders. Time comes the issue when I have 2 jobs until I can get more cash flow to support me leaving 1 (full time) job. Thank you for the question and thank you to everyone else’s responses. You guys are awesome. Every issue we have is something we can overcome!!!
0 Reply
Andrea Souriyavong
MN · Member since 2018 · 6 posts · 0 votes
7y
@Matthew Baltzell My biggest problem I face right now as a REI investor is #1 finding the right deal to profit from, I am in MN and a lot of the homes are way over priced and the real estate agents here want to get the seller an offer closer to there asking price, which doesn't fit my profit formula. #2 finding a great real estate agent that is upfront and honest, I am trying to make an offer on a bank owned/fannie mae home and the real estate agent told me that it's too difficult to write an offer on that home, well that is what he could've told me instead of saying he gave a verbal offer to the listing agent and the won't accept, which is crazy. #3 it's hard to work without a 100k saved up, how can people do deals with no money, most real estate agents here want a proof of funds letter which is hard to get if you are not actually buying. Please make suggestions of what you would do?
0 Reply
John Barrett
Rental Property Investor · Everett, WA · Member since 2015 · 458 posts · 386 votes
7y
@Matthew Baltzell Finding / identifying which opportunities make sense to move forward with. That is besides the normal issues of over priced “value adds” and the difficulty of finding and scheduling contractors. We have our strategy and formula figure out for the most part but given the lack of inventory it’s hard to stay focused on the properties that move you closer to the goal.
0 Reply
Steve K.
Honolulu, HI · Member since 2017 · 247 posts · 315 votes
7y
Originally posted by @Andrea Souriyavong:

@Matthew Baltzell My biggest problem I face right now as a REI investor is #1 finding the right deal to profit from, I am in MN and a lot of the homes are way over priced and the real estate agents here want to get the seller an offer closer to there asking price, which doesn't fit my profit formula. #2 finding a great real estate agent that is upfront and honest, I am trying to make an offer on a bank owned/fannie mae home and the real estate agent told me that it's too difficult to write an offer on that home, well that is what he could've told me instead of saying he gave a verbal offer to the listing agent and the won't accept, which is crazy. #3 it's hard to work without a 100k saved up, how can people do deals with no money, most real estate agents here want a proof of funds letter which is hard to get if you are not actually buying. Please make suggestions of what you would do?
find an investor friendly agent
2 Reply
Jason Yarusi
Investor · Murfreesboro, TN · Member since 2013 · 430 posts · 178 votes
7y
@Matthew Baltzell I would same time management as we continue to ramp out our business.
0 Reply
Andrea Souriyavong
MN · Member since 2018 · 6 posts · 0 votes
7y
@steve k. Thanks
0 Reply
Tim G.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
7y
I'm really bored and I don't feel challenged professionally. Not sure if this means I need to move into another asset class or do something different. Money isn't a motivator like it used to be. I need a creative outlet and way to give more purpose to my work.
1 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
my biggestg challenge is finding deals that I can make offers on. They all seem way over priced.....
1 Reply
Shane C.
Rental Property Investor · TriState OH KY, WV · Member since 2012 · 10 posts · 5 votes
7y
@Matthew Baltzell I work full time and am getting to the point of needing a property manager and contractor(s.)
0 Reply
Matt Ransom
Cordova, TN · Member since 2014 · 54 posts · 12 votes
7y
Originally posted by @Chris LumLee:

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.
I am right there with you. I am paying down the mortgage while saving enough for tax time to roll around.
0 Reply
Matt Ransom
Cordova, TN · Member since 2014 · 54 posts · 12 votes
7y
Finding the time to stay educated on the business while holding my 9-5 and raising a family.
0 Reply
Michael Kiley
Real Estate Agent · Cleveland, OH · Member since 2017 · 184 posts · 253 votes
7y
Originally posted by @Tim G.:

I'm really bored and I don't feel challenged professionally. Not sure if this means I need to move into another asset class or do something different. Money isn't a motivator like it used to be. I need a creative outlet and way to give more purpose to my work.
I've been fortunate to spend the majority of my time doing meaningful work with quality people. Every day I get to use my hands and create something beautiful that's tangible and purposeful rehabbing houses. I've rehabbed homes all over Cleveland almost exclusively by myself and someone I enjoy company with. It's a good life, a rewarding one...but here's my "problem" I listen to what other successful investors have to say about creating a passive income by developing systems and hiring teams to do all their work (deal finders, contractors, brokers, property managers...) I know this makes financial sense and it's smart...but at the end of the day, I don't find it satisfying. My problem is that as much as I would like to enjoy the fruits of a scalable business, creating one is as exciting as filing my tax return. So in conclusion, I think that happiness must lie in the balance. I feel that we all need an outlet for our creativity and if we don't allow it, life gets boring and we lack purpose.
4 Reply
Lindel Turner
Investor · Jonesboro, AR · Member since 2017 · 136 posts · 79 votes
7y
@Matthew Baltzell Lack of affordable qualified help. No one has their heart in their work and feel I been going it alone for years. I have a real estate license and a contracor lic I would be better and building good portfolios for people with 1031 tax exchanges or investment groups. I need to be pet if something bigger. I’m bored.
0 Reply
John Woodrich
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
7y
Originally posted by :

#3 it's hard to work without a 100k saved up, how can people do deals with no money, most real estate agents here want a proof of funds letter which is hard to get if you are not actually buying. Please make suggestions of what you would do?
If you are submitting a cash offer you should have proof of funds.... If you aren't submitting a cash offer you should be submitting a pre-approval letter... If you are "not actually buying" you shouldn't be working with a realtor and submitting offers on MLS properties....
Some people can do deals with "no money" but you have to be creative.
1 Reply
Eva Brock
Brooklyn, NY · Member since 2017 · 26 posts · 13 votes
7y
@Matthew Baltzell Where to get started !!!
0 Reply
Aaron Hunt
All Over, USA · Member since 2017 · 689 posts · 756 votes
7y
Interest rates...
0 Reply
Aaron Hunt
All Over, USA · Member since 2017 · 689 posts · 756 votes
7y
@Joel D. My biggest forseeable challenge will be moving from collecting SFRs and instead moving towards multi-family. The liquidity of SFRs are nice, but scaling is a different beast.
0 Reply
Jonathan Wildy
Investor · Atchison, KS · Member since 2015 · 46 posts · 6 votes
7y
@Matthew Baltzell. Good trades at rates that aren’t higher than surgeons fees. I have my family do most of the work taking 3-6 months because even unskilled labor is costing 50-200$/hour which is insane. The electricians and plumbers think 100-300$/hour is ok. If I pay these people that rate... my $50k house will have to rent for $3000/month instead of $600/month which is not supported by the market. I see a recession on the brink of this market but need work done to get 4 units occupied (1APT, 1 Commercial, & 2 SFR‘s).
0 Reply
Kelvin Tam
Real Estate Agent · Malaysia · Member since 2015 · 56 posts · 22 votes
7y
@Matthew Baltzell I would say getting buyers as the property market is not that convincing in this part of the world
1 Reply
Erik B.
Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
7y
Originally posted by @Lindel Turner:
@Matthew Baltzell Lack of affordable qualified help. No one has their heart in their work and feel I been going it alone for years. I have a real estate license and a contracor lic I would be better and building good portfolios for people with 1031 tax exchanges or investment groups. I need to be pet if something bigger. I’m bored.

Unless you are doing some really high end custom work you dont need employees with their heart into it. For basic rehab work You need to train them to your standards and thats how they will get paid and keep their job. Perhaps you can offer a incentive for those who can keep to the standard but complete a task faster. If your problem is with hiring companies to do the work you need to find better ones. Ones that are in it for the long hall and want to profit. I've found from my own experience if your only paying low wages you will find people who have no drive, hustle or commitment.
0 Reply
Jeff Licciardi
Real Estate Investor · Bedford, NH · Member since 2008 · 45 posts · 3 votes
7y
@Nathan G. Do you use any partners on your deals?
0 Reply

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