What were your struggle starting out Investing?

17 Replies

Not knowing what you don't know, and letting the fear of the unknown hold you back! From a nuts and bolts level, getting deal flow going was one of the hardest parts at the beginning.

I underestimated the time and money it would take. This applies to my first fixer-upper, as well as investment property. I thought I could take everything and convert it to a cost, but didn't account for the mental fatigue.

What I mean by mental fatigue is that with each step in the process, I was dealing with challenges that I have never before faced, and that was more stressful than I thought. 

Biggest struggle I would say the mental energy it takes to get the ball rolling and keep it rolling. Even though my first 2 deals have not been grand slams, it is great to look back at the past year to see how much I have learned along the way. 

@Mujahidul Huq is mainly not knowing where to start, how to find additional capital for the project, how to underwrite the investment, the way to talk with sellers and brokers, this book definitely helped a lot, if you’re familiar with multifamily properties “Best Ever Apartment Syndication Book”

Originally posted by @Mujahidul Huq :

What were your struggles doing your first fix and flip or other investment projects? 

It's been very discouraging as the local flip market seems to have gotten very tight. Either that or the network of folks that I know is way too small. Anytime I try to run the numbers on a property, I always end up at a loss. As a full-time W2 worker, I don't think that I have the time or energy required in order to find a truly genuinely good deal. So as of now, it's still just buy and hold properties along with syndicated deals.

 

Originally posted by @Tony Kim :
Originally posted by @Mujahidul Huq:

What were your struggles doing your first fix and flip or other investment projects? 

It's been very discouraging as the local flip market seems to have gotten very tight. Either that or the network of folks that I know is way too small. Anytime I try to run the numbers on a property, I always end up at a loss. As a full-time W2 worker, I don't think that I have the time or energy required in order to find a truly genuinely good deal. So as of now, it's still just buy and hold properties along with syndicated deals. 

Tony, what kind of margin are you looking for?  

When we started, the issue was lack of time. Our first sfr rehab (buy/hold) took us 2 years to complete since we could only work on it one day every week or two.

I'm very good at estimating materials costs for rehabbing a property but pretty awful at estimating the time it will take us.

We went through a phase where we had time but a lack of funds, got past that and now it's a lack of deals. The market heated up so much around here there's pretty slim pickings.

We're doing a major rehab now that will probably take us until December, then we'll start shopping hard again.

Originally posted by @Mujahidul Huq :
Originally posted by @Tony Kim:
Originally posted by @Mujahidul Huq:

What were your struggles doing your first fix and flip or other investment projects? 

It's been very discouraging as the local flip market seems to have gotten very tight. Either that or the network of folks that I know is way too small. Anytime I try to run the numbers on a property, I always end up at a loss. As a full-time W2 worker, I don't think that I have the time or energy required in order to find a truly genuinely good deal. So as of now, it's still just buy and hold properties along with syndicated deals. 

Tony, what kind of margin are you looking for?  

Would be fine with the standard 70% of ARV that seems to be the litmus test here on BP.... for flipping or for holding.

Originally posted by @Tony Kim :
Originally posted by @Mujahidul Huq:
Originally posted by @Tony Kim:
Originally posted by @Mujahidul Huq:

What were your struggles doing your first fix and flip or other investment projects? 

It's been very discouraging as the local flip market seems to have gotten very tight. Either that or the network of folks that I know is way too small. Anytime I try to run the numbers on a property, I always end up at a loss. As a full-time W2 worker, I don't think that I have the time or energy required in order to find a truly genuinely good deal. So as of now, it's still just buy and hold properties along with syndicated deals. 

Tony, what kind of margin are you looking for?  

Would be fine with the standard 70% of ARV that seems to be the litmus test here on BP.... for flipping or for holding.

Tony, 70% really does not work in every market, but I can help you get very close to that. Let's meet up sometimes and I can show you my numbers. Is there a number I can reach you at? 


Thank you 

Originally posted by @Mujahidul Huq :
Originally posted by @Tony Kim:
Originally posted by @Mujahidul Huq:
Originally posted by @Tony Kim:
Originally posted by @Mujahidul Huq:

What were your struggles doing your first fix and flip or other investment projects? 

It's been very discouraging as the local flip market seems to have gotten very tight. Either that or the network of folks that I know is way too small. Anytime I try to run the numbers on a property, I always end up at a loss. As a full-time W2 worker, I don't think that I have the time or energy required in order to find a truly genuinely good deal. So as of now, it's still just buy and hold properties along with syndicated deals. 

Tony, what kind of margin are you looking for?  

Would be fine with the standard 70% of ARV that seems to be the litmus test here on BP.... for flipping or for holding.

Tony, 70% really does not work in every market, but I can help you get very close to that. Let's meet up sometimes and I can show you my numbers. Is there a number I can reach you at? 

Thank you 

 Sounds good. I'll DM you!

Honestly, knowing the best way to spend my time. What's the highest value, most important task I can be doing right now? What can I outsource? Well, when you're brand new, you don't really know the answers to those questions.

That, and commitment can be difficult as well since true results take a while.

Networking. I did not know how to build relationships to get the answers/help/partnerships i needed.

Next tier, creativity with producing equity for deals. Ties into the first problem.

Originally posted by @John Teachout :

When we started, the issue was lack of time. Our first sfr rehab (buy/hold) took us 2 years to complete since we could only work on it one day every week or two.

I'm very good at estimating materials costs for rehabbing a property but pretty awful at estimating the time it will take us.

We went through a phase where we had time but a lack of funds, got past that and now it's a lack of deals. The market heated up so much around here there's pretty slim pickings.

We're doing a major rehab now that will probably take us until December, then we'll start shopping hard again.

Wow! 2 years! But I'm assuming you guys made higher profit margin due to appreciation?

Originally posted by @Anthony Rosa :

Biggest struggle was finding the right people to Trust.  

Same here! That is why I'm trying to provide a hand-on approach when I sell investors their first home.  Yes, it will take me a bit of my time, but in the long run, I rather have my clients learn and make profit, then learn and lose money. 

Funding for scaling up. I come across a minimum of 5 properties daily in searching. Access to private/hard money is difficult at times. Most people I come across have a limit of 100-500K to invest and I appreciate it more than they know. However, I am networking to find someone who can lend up to several million to acquire more rentals. Most banks I find have unrealistic expectations for this industry.