Buying My First Property

[William Patsalis]

Over the past few years I've multiple books and listened to hours of the BP podcast to gain enough knowledge to start investing myself. I believe I'm in the analysis paralysis phase and I want to break out of it. I recently have come across a duplex in a small town. I know a good monthly cash flow number varies depending on the person but I'd love some advice on what you think of this deal. I'd be putting roughly 30k-35k into the property. It would cash flow $250 a month after I set aside money for CapEx, maintenance, vacancy, and lawn care. I was wondering if that amount is reasonable or too low. Most of the big ticket items are newer: roof, furnace, HWH. Thanks in advance for the advice!

[Billy Daniel]

One thing that helped me get out of paralysis at the beginning was classifying that first purchase as an educational decision.  I read books, analyzed WAY too many deals, and listened to all the podcasts and guess what?  I STILL learned way more from just doing the actual deal!  Those resources are great for ideas and general knowledge, but real estate is too hyper-local for you to get all the answers from them.

In the end, remember this:  After you sign the papers, you own the property.  It will always have at least SOME value.  If you get into it and lose $20k, that sucks.  However, you will be exponentially smarter and more prepared for the next one.  Thats cheaper than a college degree.  Too often I hear clients say "I don't want to lose all my money".  Yet they still own stocks, mutual funds, and other investments.  When you get down to it, real estate really isn't any different when it comes to investing your money.

The bottom line: JUST DO IT!  Find a property online.  Run numbers.  If they work out, pick up the phone and call a realtor.  Don't just check one or two more houses.  Don't wait until tomorrow (unless its very late at night).  Just pick up the phone and call.  Go see it.  Pick up the phone and call the lender the agent recommends to you.  Tell them your plan.  JUST DO IT!!!

Sorry, I get very passionate about helping people get over their fears and paralysis.  If you do nothing, do you think you will be happy in 5 years when you still don't own anything?

Make it happen!