What is your biggest roadblock right now in real estate investing

179 Replies

Cash flow.. Investing requires funding and avoiding banks' interest rates on debts by seeking alternative ways of funding is not easy in itself.

  • What is your biggest roadblock right now in real estate investing?
    • Lack of Good Deal in stable markets like Dallas, Austin etc...
  • What are you doing to overcome it right now?
    • Researching stable market, specially tertiary market with positive cashflow.
Originally posted by @Jim K. :

@Andrew Angerer

I wish I had more reliable guys who would work with me on fixing up houses. Guys with half a brain, guys with hands that moved with coordination, guys who weren't completely full of crap. I tried to explain how BRRRR works to the last guy I took on as a helper and he fell asleep right in the middle of it.

 I know exactly what you are saying. A lot of contractors want the job and are more concerned how much you make than what they charge.  They take their time fixing the place because they are expecting a Partnership.

I am forced to go out of state because cashflow in NYC and within a 60 mile radius isn't much.  I own 2 two family houses in NYC and luckily I bought them when i did because i cant afford to buy them again if i had to.  They appreciated very very well but i refuse to take equity from them because its been real nice owning them free and clear.

@Jim K.

I’m right here for you @Jim K.

To bad I’m like 6 hours away..

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My biggest roadblock is.... regaining my confidence and no cash.  We, my wife and I had purchased 29 units and a gas station with a coffee Franchise with financial backing on the later with a new to us bank.  These purchases took place over a 4 1/2 year Period.  The bank gave us the first of three business loans and said no to the 2 other promised loans.  We lost all our properties (sold some, bank took some, and short sale one) and 2 million dollars in cash and equity.  Know your bank and get loan promises if multiple stages in writing!  I am also in a wheelchair from a car accident 15 years ago.  How do I convince myself to go for it, again?

I see that financing or cash are some of the biggest obstacles.  In my opinion that is the easiest thing to find.  Find a deal first, know the numbers and then approach your sources about the opportunity.  Waiting to find financing first and then looking to find a deal is backwards.  That is the traditional way that banks want you to work.  In the world of investing that isn't traditional, then you should have the deal first.  You can always make an offer subject to approval of financing or due diligence.  

Financing sources want to make money, you want to make money, if you understand the numbers and both parties can make money then what are you waiting for?  

Other means is asking the owner to finance you (Land contract).  Most sellers just want to sell at their inflated number asking price, all I care about is making money.  The seller gets their number but they finance me at 0% interest over some period of time and then the property is mine.  The owner must have their home paid off or you are going to have to pay what they owe off.  I have done this 6 times over the last two years and when it was all said and done I didn't even put $1 into the deal, I actually made money off of the way I financed it.  

So many financing options, financing or cash is easy to come by.  You just have to think outside the box if you do not want to go the traditional bank route.    

@Jonathan Hulen . Are you able to cash flow on the tri-plex with a reasonable down? Or, are you expecting negative flow?

@Jim K. If I lived in Pittsburgh I would definitely reach out to help. Looking at breaking into the real estate world through Wholesaling and using the BRRR strategy.

Originally posted by @Andrew Angerer :

What is your biggest roadblock right now in real estate investing?

What are you doing to overcome it right now?

Just trying to get a convo started, have a good weekend everyone.

My wife and I will be changing careers in 60 days. We are leaving active duty military service to pursue other passions. I will be in nursing school for 16 months and we will be living off of the housing allowance my GI Bill gives me and her salary as a Vet Tech. Not all that bad considering it is only 16 months but her and I are also leaving jobs that pay us each around $3,600 per month. You can't put a price on happiness though and we are happy to put our investing goals on hold for what amounts to a small amount of time (16 months) for us to be happier in the end. 

@Andrew Angerer

I could use a mentor. I am currently doing all the renovations for an investor but he only cares about him. I would love to have the courage to drop him and start my own investing.

Originally posted by @Quintinn Payton :

@Jim K. If I lived in Pittsburgh I would definitely reach out to help. Looking at breaking into the real estate world through Wholesaling and using the BRRR strategy.

 If you lived in Pittsburgh I would help you make yourself rich.

Originally posted by @Kiera Underwood :

@Brent Crosby I've seen hundreds of out of state investors come to OKC in just the past year! Purchases prices are good, rates of return are sold. Every deal I've seen off market hits the 1% rule unless it's in an A class area. 

C class is most popularly pursued because the numbers are killer. On average they're 60-80k with an 8% cap rate.. after mortgage and all operating expenses, you can make a couple hundred a month. Here it's literally not where are the cash flowing deals, it's which one do you want. 

 Wow! Thanks for the tip! Never would have thought of OKC

@Andrew Angerer

Market rise in my preferred markets and

Taxes plus being able to refinance in order to reinvest.

@Andrew Angerer

My biggest roadblock right now is lack of deals here in Knoxville. I have a team together and the funds necessary so I’m working on starting up callings and mailings for a small handpicked list I made (all of which is brand new to me). Just not enough time during my schooling to learn it and get everything in place. Hopefully in 4 weeks more time with come available.

@Andrew Angerer

My biggest roadblock sometime is the lack of American Sign Language (ASL) interpreters. Whenever I could wanted to attend local Real Estate Seminar, monthly meetings; etc they usually not willing to chip in for hired ASL interpreters because I won’t be able to understand what he or she speaking about. That is my biggest challenge. I often had my company paid for the interpreters bills and since I’m running this sole, it tough to cover most events associated with RE meetings and support groups. I’m now working to improve the experience for Deaf and Hard of Hearing RE investors and the next generations by advocating for access while building my own Real Estate business. Tough Balance.

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