All Forum Posts by: Frank Patalano

@Frank Patalano really great question. Following to see the responses

I am investor and realtor myself. I ask this question all the time. For those unqualified, it is usually finances. For those who have a good job and free time, it's usually fear like "What if the market crashes", "dealing with tenants seems hard", "I dont want to risk my 9-5"

Here is another favorite quote.

People will find a way or they will find an excuse.

I tell people all the time how they can make money with Real Estate.

I hear:

I don't have time or money or when the kids graduate or some other excuse about not starting now.

@Frank Patalano

If it were easy, everyone would be doing it.

Finding a property on MLS and getting a bank mortgage so that you cash flow $300 per month won't get you out of your day job anytime soon. Not even after 10 of these.

There are opportunities out there, but you have to put the work into finding them.

Many deals can be so cheap you could pay cash or use a HELOQ to purchase.

Finding distressed properties and motivated sellers that you can help can yield fantastic deals.

Quote from @Frank Patalano:

Quote from @Pandu Chimata:

Quote from @Frank Patalano:

Quote from @Pandu Chimata:

I pondered on this question for couple of years. My partner and I bought one property in 2016. We could not sell it quickly, rented it out and sold next year 2018 for a decent profit. 

Then I wanted to flip on my own and did not happen till 2021. I had every excuse to not to make it - too far, no profit, location is not good, etc. 

Finally I bought it with an intention that its okay if I am not going to make a profit but just let me gain the experience. That worked. I made a profit on that and bought another two after that. My current property is now listed on the market.  

 Nice. I hate losing money but there are risks with investing. You have great perspective. Time can heal many but not all wounds in real estate.
Is it too early to be looking for the next one?

 I am looking for another property now as well as investors to scale up. 

 I definitely love partnerships. Just be careful. I joke that having partners is kind of like sister wives. lol

Yes. I had an experience with the partnership as well when we purchased the first property. It went well but there was some lack of trust in between. Hence then I went on my own. Being "I" , I don't have anyone to blame it. I am responsible for everything. 

But to scale up, more resources are needed. So I am looking for silent partners with cash. At the same time, they will get all the visibility of the cash flow and progress of the work. It's just that they don't involve in day-to-day activities. Their risk is mitigated as they will be the lien holders of the property. 

Quote from @Alan Asriants:

Hey BP, I have been talking to a lot of investors purchasing for AirBnB and even headed out west to see some new construction being valued for its AirBnB potential. Do you guys think this kind of investing (STR) is sustainable.

Couple thoughts of mine of why I think it could be volatile: 

1. Traveling is sometimes a trend. Tiktok has made it cool to go to one place one month and then another next month

2. Heard AirBnb is getting more strict with their regulations - larger companies/hotels are now listing their properties there. 

3. AirBnb is getting more expensive. Recently found that it was $200 cheaper to use Booking.com than AirBnB. The nightly cost was the same. After all the taxes and fees being charged on AirBnb it didn't make sense for a short trip. Possibly for a longer stay it could be justified. 

4. People are buying very expensive homes (1M and up) and hoping to get crazy returns - recession could impact how nice of a place people would rent. I hear lots of people who own airbnbs are getting most of their requests from 20 year olds looking to party in their mansion. 

Would love to hear what people have to say!

 Hey Alan,

Great question!

Two thoughts here:

1) I buy STRs, and one of my criteria for underwriting is that they have positive cashflow as a long-term rental as well. Play offense (STR) AND defense (LTR)

2) Regulations are either in place or aren't. If regulations aren't in place, then they're coming. And they won't be pretty. You want to do a STR in a location with pre-determined regulations so you know what to expect. Check the zoning, city regs, and county regs.

I own my house. It's way too small to house hack. I would like to purchase an investment property. What is holding me back from the is the amount of debt that I have. A lot of the podcast and financial people that I hear talk, say the first thing that you should do is pay off your debt. It may take me a few years but I'm working on it.

Quote from @Frank Patalano:

Quote from @Pandu Chimata:

I pondered on this question for couple of years. My partner and I bought one property in 2016. We could not sell it quickly, rented it out and sold next year 2018 for a decent profit. 

Then I wanted to flip on my own and did not happen till 2021. I had every excuse to not to make it - too far, no profit, location is not good, etc. 

Finally I bought it with an intention that its okay if I am not going to make a profit but just let me gain the experience. That worked. I made a profit on that and bought another two after that. My current property is now listed on the market.  

 Nice. I hate losing money but there are risks with investing. You have great perspective. Time can heal many but not all wounds in real estate.
Is it too early to be looking for the next one?

 I am looking for another property now as well as investors to scale up. 

I'd always planned on my first investment to be house hacking a duplex. My issue was that I wasn't sure if my job would be stable beyond more than a year. When I realized I finally was in a position that could keep me in one area long term, I made the mental switch that it was time to buy. I found a local REI group and that amped up my desire to find my first property.

Now, I'm looking for my next property, but I've discovered a new mental driving force. Over analyzing things doesn't stop after your first property, so when I realize I'm starting to think about one thing too much, my driving force is just the desire to free up mental space. Take whatever action I need to get that one thing off my mind. It's really just "taking action" like everyone talks about, but I think about it from the perspective of having a clearer mind rather than just getting my next investment. It's a helpful way to control some anxiety in life!