Analysis paralysis: How to start making progress

11 Replies

Hoping someone here will be able to point me in the right direction and help me Narrow down my next steps so I can begin making trackable progress towards my first deal.

I have been researching different strategies and methods for a very long time now (too long) and I feel the more research I do the deeper into analysis paralysis I go. I fully understand there is no right or wrong method / answer and every strategy has its pros and cons. However by continuing to over analyze every single aspect I am making zero progress in getting my feet wet and getting the real experience. it’s time I jump in. I want to be aggressive in my strategy but at the same time I don’t want to end up setting myself up to fail. I prefer a plan that gives me a little wiggle room to account for the mistakes I will inevitably make but also being aggressive enough for it to be worth my while

I have a decent amount of starting capital 350-400k which only seems to make my decisions even harder since it pretty much puts all strategies on the table and gives me the option to leverage a good amount.

I understand all of the strategies, and have a pretty good understanding of real estate in general, however I am struggling with putting it all together and Formulating the plan to follow. I would love to hear your input and detailed plans that you would execute on, or have executed on if you had 350 to 450. I would also love to hear where you would look for these deals so I can narrow down a few Niche market to start really focusing in on. I prefer to get as many doors as I can while also balancing an area with good long term appreciation

I’m open all strategies and markets but leaning towards long term multi family.

I’m in Denver which I feel It’s a challenging market for the strategy I am looking at.

Again I am open to other strategies as well as other markets. I would love to hear your suggestions on how you would utilize this capital to generate a not overly safe but also not overly aggressive balanced appreciating vs cash flowing opportunity with more of an emphasis on the cash flow aspect.

Thanks in advance

Hi @Mike Woodruff , wow lots to unpack here.  I think figuring out what type of investing you want to do is the hardest part when getting started.  For me, it took me a year and 5 years later I've pivoted from that spot.  Just because you decide on something doesn't mean you need to stay there.

First things first, I would figure out what type of investing is best for your temperament and lifestyle.  For example, flipping a property is a lot more involved than owning a turnkey property.  Also, having a property in a rougher area is going to take more mental bandwidth than a nicer property in a suburb.  With that, you will need to decide if you want to invest locally or out of state.  Locally could be up to 2 hours away, so think of Northern & Eastern Colorado where cash flow might be better and there is less competition.  Once you have a type of investing that matches your lifestyle, it will make it easier to hone that in and go deeper to the next level.  

For your first property, don't bite off more than you can chew.  Don't find a property that needs a lot of rehab work or is in a bad neighborhood.  While there is usually more profit in these, do a couple of easy properties to get the skills and resources for the more complex properties. 

I would start talking to lenders and agents now.  Hopefully, they can help you think about different ideas but more importantly, they can help push you to the next level and take that next step.  Good luck, you will do this.  Just don't figure out the best thing, just a thing, and keep moving forward. 

First, when you say that you "know all of the strategies", which strategies are you speaking of?

Second, the strategy you use is based on the deal.  Don't commit to a strategy and then try to find a deal that fits it...or worse, try to make a deal fit it.

Third, your plan should be reverse engineered from your financial goals (total "personal" debt payoff and needed CF/month), in steps...with each step leading to the next.  Think of it as a college curriculum, with each deal being the classes, and achieving your financial goals as the degree.

Forth, each decision you make, for each property you close on, should be made with the next deal in mind.  Never do any deals as "stand alone" deals.  They ALL MUST be connected steps leading directly to your financial goals.

Fifth, make sure you follow the 2 Golden Rules (OK. My 2 GR) of REI.
Rule #1:  Never, under any circumstances, for any reason, no matter who or how many people tell you otherwise, or try to change your course or distract you,...never, EVER, spend your seed money.  Use it to infinity, but never, EVER, spend it.

@Mike Woodruff the deal should dictate your initial strategy.  Some deals are just better for wholesaling, especially at this early stage of your career. @Brad Hammond hit the nail on the head, don't get in too deep on your first deal. If you come across a distressed property you will probably want to wholesale it. If you find a SFR that's needs basic rehab but has good bones, option 1 may be to flip it and option 2 could be to rent it. And if you find a good buy on a 2-3 family unit I strongly urge you to BRRR it. Flipping and wholesaling are great ways to generate quick cash. But renting is long term wealth that will free you from the day to to day grind. The bottom line is there s no one strategy that fits each property. The most important thing is to at least dip your toe into the water. And aas corny as this may sound even if you loose a little money on a deal its not a failure. Its down in the trenches education. Just make sure you analyze the deal from at least 2 perspectives, say flipping and also renting, and use that as your guide. Remember, the old saying you make your profit when you buy, not when you sell, is very true. So start looking for that first property and tke action.

Good luck.  I'm sure you will do great!

Originally posted by @Mike Woodruff :

Hoping someone here will be able to point me in the right direction and help me Narrow down my next steps so I can begin making trackable progress towards my first deal.

I have been researching different strategies and methods for a very long time now (too long) and I feel the more research I do the deeper into analysis paralysis I go. I fully understand there is no right or wrong method / answer and every strategy has its pros and cons. However by continuing to over analyze every single aspect I am making zero progress in getting my feet wet and getting the real experience. it’s time I jump in. I want to be aggressive in my strategy but at the same time I don’t want to end up setting myself up to fail. I prefer a plan that gives me a little wiggle room to account for the mistakes I will inevitably make but also being aggressive enough for it to be worth my while

I have a decent amount of starting capital 350-400k which only seems to make my decisions even harder since it pretty much puts all strategies on the table and gives me the option to leverage a good amount.

I understand all of the strategies, and have a pretty good understanding of real estate in general, however I am struggling with putting it all together and Formulating the plan to follow. I would love to hear your input and detailed plans that you would execute on, or have executed on if you had 350 to 450. I would also love to hear where you would look for these deals so I can narrow down a few Niche market to start really focusing in on. I prefer to get as many doors as I can while also balancing an area with good long term appreciation

I’m open all strategies and markets but leaning towards long term multi family.

I’m in Denver which I feel It’s a challenging market for the strategy I am looking at.

Again I am open to other strategies as well as other markets. I would love to hear your suggestions on how you would utilize this capital to generate a not overly safe but also not overly aggressive balanced appreciating vs cash flowing opportunity with more of an emphasis on the cash flow aspect.

Thanks in advance

Did you give any thought to syndications?

Hi Mike! There's a lot to take in when getting started. Wanted to share that BiggerPockets is launching a 12 week Rookie Bootcamp in late August, with Ashley Kehr leading the way. It's a mix of on demand videos, live Q&A sessions, and a step-by-step curriculum to help you get your next deal. Sharing in case it would be helpful to have a structured program to create the accountability you're looking for in your journey. You can learn more here.

@Mike Woodruff

At,some point in time, you need to move forward. Looking at your next deal, realize that as long as your analysis is competent, you will be fine. Buy real estate, if you hate it, sell real estate. You are not locked in to it. As long as your initial analysis is slightly sound, you are not locked in to any future.

@Brad Hammond

I definitely think I am looking more towards long-term pretty turn key rental opportunities. With that said I’m not opposed to rolling up my sleeves and doing a little bit of work to get the property 100% ready to go however like you said my first few deals I want to be a little more straightforward with less “work” as opposed to more work. Definitely looking for something that has good cash flow and long-term opportunity but again not opposed to stepping into something that needs a “little work” so I can build some instant equity.

I am open to both single-family and multi family rental opportunities and also open to starting small or fully pulling the trigger with my full investment if the right opportunity were to present itself. With that being said I would love to get some input or ideas on some potential markets you may recommend I narrow down to explore this type of strategy. Again I’m not opposed to being local but I am also not opposed to exploring other markets that fit the strategy. I believe both cash flow and appreciation are important to consider but am leaning more towards cash flow heavy markets.

This is my game plan so far: any thoughts or suggestions to this are appreciated.

1 Determine strategy / focus

2. Target top 3-5 markets for that strategy

3. Assemble teams in those markets

4 Analyze deals

5 Make offer / negotiate deal

6 close deal

Originally posted by @Mike Woodruff :

@Brad Hammond

I definitely think I am looking more towards long-term pretty turn key rental opportunities. With that said I’m not opposed to rolling up my sleeves and doing a little bit of work to get the property 100% ready to go however like you said my first few deals I want to be a little more straightforward with less “work” as opposed to more work. Definitely looking for something that has good cash flow and long-term opportunity but again not opposed to stepping into something that needs a “little work” so I can build some instant equity.

I am open to both single-family and multi family rental opportunities and also open to starting small or fully pulling the trigger with my full investment if the right opportunity were to present itself. With that being said I would love to get some input or ideas on some potential markets you may recommend I narrow down to explore this type of strategy. Again I’m not opposed to being local but I am also not opposed to exploring other markets that fit the strategy. I believe both cash flow and appreciation are important to consider but am leaning more towards cash flow heavy markets.

This is my game plan so far: any thoughts or suggestions to this are appreciated.

1 Determine strategy / focus

2. Target top 3-5 markets for that strategy

3. Assemble teams in those markets

4 Analyze deals

5 Make offer / negotiate deal

6 close deal

This sounds like a great plan!  It sounds like you are leaning more towards out-of-state investing so You should read David Greene's book about that.  I haven't read it but I'm sure it's great.  Next, you should set a date that you'll have the first step done.  I bet September 1st will give you plenty of time.  From there research areas.  Since cash flow is important to you, you will probably want to look in the southeast and midwest.  Make sure there is job growth in those cities since that will attract people.  

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