Newbie getting started at the wrong time

8 Replies

Hello Bigger Pockets Community,

Late last year, I began to seriously explore opportunities in buy and hold real estate (primarily in the small multi-family niche). In March, I had a four-plex under contract that fell through due to inspection. Now, eight months after beginning this journey, I have yet to close on my first deal. I’m frustrated… mostly with myself for not finding a way to make it happen yet.

One of the primary challenges I have faced is funding. While I make a good income, grad school loans have hurt my debt to income ratio, which has made me heavily reliant on partnerships, which have not worked thus far. I have also explored private and hard money options but my lack of experience have made these less viable options.

If anyone has any advice, recommended contacts, or is at all interested in meeting in person or virtually, please reach out to me directly. I am certainly happy to find reciprocal ways to add value as I understand time and attention are finite resources.

Thank you all and I look forward to meeting / working with you!

I don't want to assume anything but from what you have posted one would guess that you are not financially able to invest into property at the moment, and that's fine. Creative Investing is all about overcoming obstacles and working around obstructions, essentially where I'm getting at is that you don't need any capital to get into the game. You could get into wholesaling which is a relatively simple and low risk investment method. Another low risk-high yield investment method is the Master Lease Option, this method is primarily used in the bigger deal space, giving you the opportunity for large returns. Do some research about zero down investing and find your niche.

Hey welcome to the forum. Have you considered a partnership option where you deal source for a cash partner (kind of like wholesaling, but you negotiate a portion of the deal rather than a fixed wholesaling fee)

Network with people here on BP - everyone is helpful and many are in the same boat. The other option is seller financing - Brandon wrote a whole book on creative finance options

Hope this helps

Nothing here that is insurmountable. If you are talking to somebody about DTI limits then probably you are working with banks. Might want to go mingle with some private lenders -- go out to a Quest IRA meeting, out here on the west side of town. Or figure out some kind of owner finance seller-carry arrangement, which is probably hard to find but not impossible.

@Ali Radhi If you are so desperate to start investing then you have to weight your options and compromise. You said that partnerships didn't work. Does that mean you have to give up trying?! Try again - continue conversations with other investors, find a good match where you can bring a deal to the table and your partner can bring the money. Another alternative is to wholesale at first - this strategy doesn't require a lot of cash upfront and many people with low funds start out with that. In addition, find experienced investors and offer to work for them for free. This eventually may result in a solid partnership or a job for you down the road. 

These a few thoughts that came to my mind at this point. I think if you start networking with people virtually and locally you'll discover a ton of other alternatives available for you.

Best of luck!

I would save for passive deals during the next downturn & following upswing. Now is the wrong time for many reasons some which can be overcome. But without experience or capital it’s only worth learning more & waiting.

I appreciate the encouragement. The theme that I see is continue to network, which I'm doing. I have been looking at the wholesaling route as well.

@Mark Sewell I appreciate the insight. Can you advise where I can find out more about these Quest IRA meetings? I'm definitely interested in attending.

Originally posted by @Matt Millard :

I would save for passive deals during the next downturn & following upswing. Now is the wrong time for many reasons some which can be overcome. But without experience or capital it’s only worth learning more & waiting.

Good point here -- I see this sentiment a lot these days.  Keep your powder dry and be ready when things turn.

@Ali Rahdi those guys at Quest have meetings every Tuesday at 9:30.  Often they have mixers in the evenings, too, for people that work.   Best to just go on over to their website, as I don't want to appear like I am advertising for them.

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