Philadelphia Suburbs New Investor

12 Replies | Philadelphia, Pennsylvania

Hello All,


My name is Mike and I have been looking to get into real estate for quite some time now but seem to be suffering from analysis paralysis. I think the challenge has been focusing on a single strategy. My main concern is making a decision now that will limit my investment opportunities later down the line. Right now I have 70k I can put toward real estate and feel more stuck than when I had none to put in the market. I told myself I would take a step toward the goal of purchasing a property this year and that's what this message represents. So I just wanted to float this out there to get a conversation going and introduce myself. Any comments/thoughts or advice would be greatly appreciated. 

Thanks,

Mike

Hey Michael!

I’ve gone from your shoes (figuring out what to buy for my first property in or around Philly), to now 16 properties since I began! The journey only becomes more exciting as you get started!

DM me if you would like to talk about all the options you would have, I’d love to talk more!

Live free,

JD

@Eric Greenberg @Jabrail Henderson - thanks for taking the time to respond to my thread. I have been educating myself for a few years now and saved capital to invest. I also have a real estate agent sending me multi family listings in the area and another out of state. I must admit its been challenging finding deals that meet my investment criteria and I am looking at multiple listings a day. On top of that, the eviction moratorium spooked me a bit so I left all of my capital in the market during the last year and a half. 

From a strategic perspective I am looking to buy and hold multifamily and generate good cash flow ( beating the market in terms of COC return). Recently I have been looking at investing in a syndication deal but that's a whole other conversation and I think I need more time understanding how to properly vet sponsors. I am also familiar w BRRRR and wouldn't be opposed that either. I also want to ensure I can scale and don't want to hamstring myself by making a poor decision now and deploying the capital on a bad deal so there is a bit of trigger shyness. One might say I am worrying about step 10 before step 1.

If I were asked to identify the main hold up it's the fact that I haven't been able to find a decent deal, so I am thinking of changing my approach in the following ways: 

1.) Talk to people who have done it (which I haven't done before). That's what this thread is meant to do

2.) Make offers on the MLS listings that make sense. Worst they can say is no and I annoy my RE agent.

3.) Generate off market opportunities -- the MLS probably isn't the best. Still working on the best way to do this.

Thanks again for responding to the thread!

Originally posted by @Michael Kalivas :

@Eric Greenberg @Jabrail Henderson - thanks for taking the time to respond to my thread. I have been educating myself for a few years now and saved capital to invest. I also have a real estate agent sending me multi family listings in the area and another out of state. I must admit its been challenging finding deals that meet my investment criteria and I am looking at multiple listings a day. On top of that, the eviction moratorium spooked me a bit so I left all of my capital in the market during the last year and a half. 

From a strategic perspective I am looking to buy and hold multifamily and generate good cash flow ( beating the market in terms of COC return). Recently I have been looking at investing in a syndication deal but that's a whole other conversation and I think I need more time understanding how to properly vet sponsors. I am also familiar w BRRRR and wouldn't be opposed that either. I also want to ensure I can scale and don't want to hamstring myself by making a poor decision now and deploying the capital on a bad deal so there is a bit of trigger shyness. One might say I am worrying about step 10 before step 1.

If I were asked to identify the main hold up it's the fact that I haven't been able to find a decent deal, so I am thinking of changing my approach in the following ways: 

1.) Talk to people who have done it (which I haven't done before). That's what this thread is meant to do

2.) Make offers on the MLS listings that make sense. Worst they can say is no and I annoy my RE agent.

3.) Generate off market opportunities -- the MLS probably isn't the best. Still working on the best way to do this.

Thanks again for responding to the thread!

 It sounds like you have a pretty good handle on some next steps to propel yourself forward. I would agree that you make be working on step 10 when you need to be focusing on step 1. Id also say it sounds like you are a bit all over the place on location, type of deal, etc which only makes things tougher.  I would really try to focus on one aspect for a bit and like you said make some offers that make sense to you. Itll also be a good time to vet your agent if he gets annoyed with you potential 'low ball' offers.

@Michael Kalivas one of the best things I did when I started was just made offers. I wasn't entirely sure how I would pay for it, or exactly what I was going to do, but I had ideas and tools ready. When one of the offers was accepted I went to work on solving the problems  related to that specific deal, not the overwhelming task of getting myself to do something. Guess what, your first 10 offers probably won't get accepted, so get good at making them and accepting the rejection. Then eventually one will hit, and you will have to figure out how to actually close on it, which you will. Then you will have to figure out how to execute the exit, whether that includes renovation or not. Then you will start over and do it again. Before you know it you will have done a bunch of deals and forgotten what the big deal was at the beginning. 

My 3 year old daughter made me watch Frozen 2 with her and I actually got something from it. Anna says towards the end of the movie to "not look too far ahead and do the next right thing" which is exactly what it takes.