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

Multi-Family and Apartment Investing
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What is your biggest problem you face right now as a REI?

Matthew Baltzell
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
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.

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  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    7y
    @ Lucia Rushton


    Lately, rain has been more problematic for this season. Slows a lot down around here. There is so much building going on. Paying higher labor to keep the best guys. That takes a bight out of things as well.

    So it's not really complaints but its the little things in this business that can drive you crazy.

    Alex


    Originally posted by @Lucia Rushton:
    @Alex Franks I would take your “problem” any day :)
    0Reply
  • Cory CarlsonBusiness Member
    Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
    7y

    As a newer broker i am having trouble finding new clients. I have a niche in small multifamily and i think age is a limiting factor for me. Although i have the guidance to thoroughly review and execute wealth building strategies, the prospects i am getting are slow moving. 

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  • Regina Jones
    Flipper · Hartford, CT · Member since 2017 · 89 posts · 10 votes
    7y

    My issue is getting my agent to put the offers in and doing it without a deposit. She will tell me that they will not accept a low ball offer or won't accept without a deposit. I explained that they will counter and I don't need a deposit to put in an offer.  Then I just move on to the next property with the  same issue.  Now, to this date I haven't put any offers in on any of the properties I considered. 

    0Reply
  • Shania Narcisse
    Phoenix, AZ · Member since 2016 · 10 posts · 2 votes
    7y

    @Matthew Baltzell I find that getting the funds is the hardest part for me right now. Here in Phoenix, AZ I have the properties lined up!

    0Reply
  • Steve K.
    Honolulu, HI · Member since 2017 · 247 posts · 315 votes
    7y
    Originally posted by @Regina Jones:

    My issue is getting my agent to put the offers in and doing it without a deposit. She will tell me that they will not accept a low ball offer or won't accept without a deposit. I explained that they will counter and I don't need a deposit to put in an offer.  Then I just move on to the next property with the  same issue.  Now, to this date I haven't put any offers in on any of the properties I considered. 

     get a new agent...

    2Reply
  • Miguel Nava
    Rental Property Investor · Houston, TX · Member since 2016 · 91 posts · 38 votes
    7y

    My biggest problem right now is dealing with two tenants in one of my properties who haven't paid rent since July. I went through the eviction process with my PM but tenants won. The only information I received from my PM was that tenants agreed to pay back rent and the Magistrate did not want to move forward with the eviction. I have no idea what the plan to pay is, in case there actually is one. I was also told that if they don't pay, which I am 100% sure will be the case, then I have to go through the whole eviction process again. That will be at least 3 more months of rents lost, and at least $750 in eviction fees. This is in Cleveland Heights, OH.

    0Reply
  • Regina Jones
    Flipper · Hartford, CT · Member since 2017 · 89 posts · 10 votes
    7y

    @Matthew Baltzell, thank you, I'm on it.

    0Reply
  • Parris Edwards
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 26 posts · 1 vote
    7y
    @Matthew Baltzell I’d say my problem is trying to get my first wholesale deal together either SF or multi Family A lot of Competion in Los Angeles I have a buyers list for multi family just looking for motivated seller leads I heard about the county records I’ll check there next
    0Reply
  • Account Closed
    Rental Property Investor · Jacksonville, Florida Area · Member since 2016 · 106 posts · 48 votes
    7y
    @Chris LumLee I totally understand Chris, and feel your pain! I tend to constantly update my contacts list, with property managers, and it's not a bad idea to call and screen a few, just in case this "trust" issue turns ugly. I am currently in the same boat my friend, and the waves can be challenging.
    1Reply
  • Andrew Hinton
    Rental Property Investor · Baltimore, MD · Member since 2017 · 15 posts · 9 votes
    7y
    @Matthew Baltzell That's a very thoughtful question. Love the responses. for me it's the minutiae! it's stepping out of my business to grow my business. Comes up a lot on the podcast but I still tend to forget it. I get very bogged down in the details. The property management, the construction and the administrivia have all become manageable for me. However, it consumes too much of my time day to day. I have two projects under contract, the perfect opportunity to grow the business, but almost all of my time is consumed.
    0Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Daniel Murff:
    @John Casmon Hey John, what would you consider a value added deal in Chicago? Still building knowledge and curious to what that looks like? Thanks.

    Value-add is simply buying an asset that has positive cash flow, where there is an opportunity to increase the NOI (net operating income). The challenge is some brokers are pushing properties as value-add, but expecting a premium from the buyer as if the property was already generating the incremental income.

    0Reply
  • Andre Exantus
    Member since 2018 · 6 posts · 3 votes
    7y
    @Kristina Mcleroy Thank you for your your feedback
    1Reply
  • Joel D.
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 6 posts · 2 votes
    7y
    Originally posted by @John Casmon:
    Originally posted by @Joel D.:
    @Matthew Baltzell my biggest problem that I face right now as a REI is figuring out how to go from 2 buildings that cash flow nicely, to 10 deals, then 20 deals, etc. It's that next step that everyone says after that it really opens up. Cheers!

    Consider shifting your perspective. What if you focused on the number of units or cash-flow you want instead of the number of deals? Doing 20 deals of 5 units each is fine, but it would be easier to do one deal of 100 units. 

     Thanks, John! 

    Yeah, I'm not necessarily focused on the number of deals as I am the cash-flow like you mentioned. It has to make money every month for it to fit my investing style. I was more getting at that my 2 properties are cash flowing nicely now, I can't add units to them so I need the next deal or property. Since I'll be jumping to 3 units the banks around here (NB, Canada) have a hard time unless you got $$. Right now, I'm reinvesting the cash back into the equity and the odd repair. 
    What are my options do you think?

    I am planning on selling one SFH this spring and hoping I can turn that sale into the next investment(s).

    Cheers

    0Reply
  • Account Closed
    Allentown, PA · Member since 2018 · 35 posts · 20 votes
    7y

    I have a few friends who want to combine our money and form an LLC. We are looking 15 years ahead and want to own a lot of property. Multi family is where we want to start. Problem is, picking a strategy, especially considering market cycle. Do we focus on buy and holds, put our money together for auction deals and flips? Idk...tough to say.

    0Reply
  • Leah Gaspard
    Northern New Jersey · Member since 2019 · 10 posts · 2 votes
    7y

    Getting started in an expensive market (Northern NJ). I would ideally purchase a two-family, which are abundant, but I have concerns about the B/C neighborhoods I'm shopping.  

    0Reply
  • Account Closed
    Member since 2018 · 214 posts · 175 votes
    7y

    The biggest problem I face right now, is housing market is begin to decline now, and it forces me to take a break, and be far away from it for a while. 

    0Reply
  • Leo Gomez
    Bronx, NY · Member since 2016 · 20 posts · 1 vote
    6y

    @Mike Miller

    Thanks will do.

    0Reply
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