Analysis Paralysis: Where do I start?

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Analysis Paralysis: Where do I start?

Andrew Sullivan
Member since 2024 · 1 post · 0 votes

I've dove deep into the realms of real estate wisdom, heard every guru spiel, and read more how-to guides than I care to admit. Yet, here I am, stuck in the bog of analysis paralysis, feeling more confused than when I started. 

Flashback to my glory days at 16, slinging pizzas and dreaming of real estate riches. Fast forward to now, a fresh 24-year-old, recently booted from my cushy W-2 job paying $80k/year, left to ponder the meaning of life and the potential of my bank account.

Now, I find myself in the trenches of self-employment at my buddy's small business lending firm, with a 1099 in one hand and $75k in student loan debt in the other. Oh, the joys of adulthood! But as Frank Sinatra said ~That's Life ~. I'm determined to achieve financial freedom and live the life I always dreamed of.

Let's talk numbers, shall we? We've got expenses dancing around $2-3k per month, a modest $10k stash, and a student loan payment ($725/month) the size of a small country's GDP. I also have $58k invested in individual brokerage accounts and $22k in my Roth IRA. Although some may say this is impressive, I feel so far behind.

Now, onto the million-dollar question: How does one embark on a real estate journey with pockets as empty as my social calendar on a Saturday night? BRRRR? Single family? Section 8? Small multifamily? Large multifamily? Flipping? Sub-to? Wholesaling? Scott Jelinek Slow flip? Storage facility? Car wash? Laundromat? The possibilities are as vast as my confusion.

"But wait," I hear you say, "what about flipping? Cash is king, right?" Ah, if only it were that simple. Sure, I've scoured Zillow like it's my job (which, let's face it, it sort of is), but the only properties I find are nestled snugly in the heart of the Midwest, a land as foreign to me as quantum physics. I think this is where I would get the most value and it definitely has the most opportunity but again, as foreign as a flip phone. 

So, what's a broke, bewildered aspiring real estate mogul to do? Do I gamble my last dime on a single-family cash cow, or do I roll the dice on a flip and hope Lady Luck is on my side?

I'm at a crossroads, folks. I've had my fill of gurus peddling dreams for the price of a small island nation, and I refuse to sit idly by, twiddling my thumbs while life passes me by.

So, here I am, dear reader, baring my soul and begging for guidance. Will I emerge victorious from this real estate labyrinth, or will I be forever lost in the sea of "what ifs"?

Stay tuned for the next episode of "Real Estate Roulette: One Man's Quest for Financial Freedom," coming soon to a blog near you. And remember, laughter is the best medicine, especially when your bank account is running on fumes. Cheers to the journey ahead! 🍻

P.S. If you have any job openings I would love to send my resume over so let me know! :)

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Allen Parker
Santa Ana, CA · Member since 2021 · 13 posts · 20 votes
2y

i dont know why people are bashing you for writing multiple paragraphs, that was hands down the best thing i read today. So many zingers in one post. 

I have nothing useful to add unfortunately, just wanted to compliment your writing. best of luck sir.

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:
    Quote from @Andrew Sullivan:

    I've dove deep into the realms of real estate wisdom, heard every guru spiel, and read more how-to guides than I care to admit. Yet, here I am, stuck in the bog of analysis paralysis, feeling more confused than when I started. 

    Flashback to my glory days at 16, slinging pizzas and dreaming of real estate riches. Fast forward to now, a fresh 24-year-old, recently booted from my cushy W-2 job paying $80k/year, left to ponder the meaning of life and the potential of my bank account.

    Now, I find myself in the trenches of self-employment at my buddy's small business lending firm, with a 1099 in one hand and $75k in student loan debt in the other. Oh, the joys of adulthood! But as Frank Sinatra said ~That's Life ~. I'm determined to achieve financial freedom and live the life I always dreamed of.

    Let's talk numbers, shall we? We've got expenses dancing around $2-3k per month, a modest $10k stash, and a student loan payment ($725/month) the size of a small country's GDP. I also have $58k invested in individual brokerage accounts and $22k in my Roth IRA. Although some may say this is impressive, I feel so far behind.

    Now, onto the million-dollar question: How does one embark on a real estate journey with pockets as empty as my social calendar on a Saturday night? BRRRR? Single family? Section 8? Small multifamily? Large multifamily? Flipping? Sub-to? Wholesaling? Scott Jelinek Slow flip? Storage facility? Car wash? Laundromat? The possibilities are as vast as my confusion.

    "But wait," I hear you say, "what about flipping? Cash is king, right?" Ah, if only it were that simple. Sure, I've scoured Zillow like it's my job (which, let's face it, it sort of is), but the only properties I find are nestled snugly in the heart of the Midwest, a land as foreign to me as quantum physics. I think this is where I would get the most value and it definitely has the most opportunity but again, as foreign as a flip phone. 

    So, what's a broke, bewildered aspiring real estate mogul to do? Do I gamble my last dime on a single-family cash cow, or do I roll the dice on a flip and hope Lady Luck is on my side?

    I'm at a crossroads, folks. I've had my fill of gurus peddling dreams for the price of a small island nation, and I refuse to sit idly by, twiddling my thumbs while life passes me by.

    So, here I am, dear reader, baring my soul and begging for guidance. Will I emerge victorious from this real estate labyrinth, or will I be forever lost in the sea of "what ifs"?

    Stay tuned for the next episode of "Real Estate Roulette: One Man's Quest for Financial Freedom," coming soon to a blog near you. And remember, laughter is the best medicine, especially when your bank account is running on fumes. Cheers to the journey ahead! 🍻

    P.S. If you have any job openings I would love to send my resume over so let me know! :)

    There are many that have tread that path before. Some of us have figured the way to maneuver the obstacles. My personal preference is to talk with someone who is where you want to be. Every conversation contains a precious nugget. Start collecting nuggets.

     WOW STOP OVERTHINKING. it's SIMPLE, not easy but simple.  Connect with those doing deals, they will show you how it gets done, its not rocket science. RE is NOTHING but math, but you netter know your numbers. OR if you want rentals simply connect with those that provide them, LI is NOT the place to do it, too expensive and little to know return, you're lucky if you get 4% net . I live in FL and do all my biz in Cleveland. Yesterday I had my guy walk 4 props, I already have two in contract, negotiation the other two. Will close in 10 days or so, rentals.  No cash is NOT king. Well, it is if you want to buy. The biggest mistake I made was not keeping 50 or so more of the 500, yes 500 I flipped in my market, HUGE mistake, cost me millions, Wealth is built not flipped.  I assume you have a few hundred k in the bank?  BTW I am from LI, stopped doing biz there about 15 years ago. 

    Here is one of my posts on how it all started .

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    It's obvious why you are analysis paralysis and I didn't need to read what you wrote. All I had to see if how much you wrote. You are telling a story, you aren't focused on really becoming a real estate investor right now. You want more than is available.

    Getting started is simple, but people think it's books and podcasts. It's that plus meetups for one year that will put you in motion. Once you see people just like yourself doing deals you will gain the confidence and stop playing computer real estate and get out in the field.

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Jonathan Greene:

    It's obvious why you are analysis paralysis and I didn't need to read what you wrote. All I had to see if how much you wrote. You are telling a story, you aren't focused on really becoming a real estate investor right now. You want more than is available.

    Getting started is simple, but people think it's books and podcasts. It's that plus meetups for one year that will put you in motion. Once you see people just like yourself doing deals you will gain the confidence and stop playing computer real estate and get out in the field.


     THANK YOU, !! I wanted to say that as well. When I see paragraphs, I do not even read it. I scroll down to the last sentence; everything is meaningless. Who cares what you did as a kid, or where you work now, just a waste of time writing. 

    All the best 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Andrew Sullivan:

    Most people will tell you to pay the minimum on the debt and use your extra cash to invest. If you pay 5% interest on the debt but have a rental making a 10% return, then you will be 5% ahead, right? Wrong! Do the math with two different scenarios and you'll see that the best option is to focus your effort on paying off the debt first, then investing.

    Calculate the results on two scenarios:

    1. You pay the minimum on your student loans and put anything extra into investments. After the loans are eventually paid off, then add that to your investment plan. Where do you end up in 20 or 50 years?

    2. Pay the debt off like a madman. If you work extra hours, get $20 in your birthday card from Aunt Gertrude, or pick up a nickel off the ground, you put it toward the debt. After you've paid off the debt completely, start using that same hustle to invest. Where do you end up in 20 or 50 years?

    Our current society tells you to take shortcuts, which is why you end up with $75,000 in student loan debt, thinking it would somehow propel you to riches and glory faster. The 26-year-old Master Plumber who replaced my water heater last month is laughing.

    Slow down. Stop listening to the get-rich-quick schemers. Do what successful people have done for thousands of years: increase income, reduce expenses, and invest slowly and steadily over time. It feels slow at first, but you will eventually look like a genius.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Andrew Sullivan

    To begin in real estate, check your financial situation first, learn a lot, start with small steps, look into smart ways to fund your investments, pick the right places to invest, have clear aims, join groups of local investors, take smart risks, keep going even when it's hard, and be ready to change. Start on a small scale, handle your student debt and daily costs, and think about smart funding ways like getting the seller to help, borrowing from private lenders, or using websites that gather money from lots of people. Choose places to invest where it's cheap to buy, lots of people want to rent, and homes might be worth more later. Make goals, get advice from those who've done it, and risk wisely after you've checked everything carefully. Stay hopeful, learn from both wins and losses, and get help from experts in law and money to move through the tricky parts of investing in property. Remember, all big investors had to start at the beginning, so keep your eyes on the prize, stay strong, and be open to learning.

    Good luck!

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  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    I believe you just need to take action and not overthink it. I would focus on building your network and connecting with people who are already successful in real estate. 

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  • Katie Smith
    Member since 2023 · 348 posts · 190 votes
    2y

    Hey Andrew, getting started is always the toughest part but we all have to start somewhere. Find a cash partner, be a bird dog for them and bring them a deal. You can also try to raise capital with friends & family. If you don't have a bucket full of cash, i'd recommend doing a couple fix and flips at first. Once you do 3-4 fix and flips, you'll hopefully have enough funds that buying a rental wont eat up all of your cash.

    Look into hard money companies that will work with new investors!!! Im happy to hop on a call and walk you through how HML work.

    0Reply
  • Travis Main
    Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
    2y

    @Andrew Sullivan

    I believe the key to your success lies in focusing your efforts and setting clear, achievable goals. Without a defined starting point and goals to work towards, you may find yourself feeling overwhelmed and directionless. Once you've established your goals, develop a strategic plan to attain them. Building this foundation of goals and action plans will provide the structure and framework necessary for success.

    It seems you've mentioned feeling hesitant to take action and also facing liquidity challenges. One approach to building the capital needed for investment is to explore lending out of your IRA. This can serve as a passive method to accumulate the funds required to kickstart your investment journey. Additionally, consider wholesaling as another avenue to both gain valuable knowledge and bolster your cash reserves. These strategies can serve as effective starting points for your investment endeavors.

    Should you wish to discuss further or require assistance, please don't hesitate to reach out. I'm more than willing to offer my support and guidance.

    1Reply
  • Kristine Ann
    Investor · WNY/CNY/Adirondacks, New York State · Member since 2024 · 151 posts · 133 votes
    2y

    This isn't analysis paralysis.  Since you've had a recent job change, you'll have a hard time qualifying for a mortgage.  They normally want to see at least two years of steady income.  


    Since you are really passionate but low on funds, you should work with your current circumstances.  At this point, you could look into getting a real estate license and/or getting experience in construction/rehab by working for a contractor who is willing to train you.  You could also start house hacking through renting....sign a lease for 2-3 bedroom and rent out your one or two extra rooms to roommates.  

    0Reply
  • Mose Gebremeskel
    Investor · Member since 2022 · 234 posts · 144 votes
    2y

    Getting started is the hardest part forsure. I think connecting with others in this area is best and just take the next step! Just take one step at a time. 

    0Reply
  • Jessie ReddPro Member
    Flipper/Rehabber · Raleigh, NC · Member since 2018 · 57 posts · 26 votes
    2y

    @Andrew Sullivan

    I would go to meetup groups. See if you can walk through a deal with an experienced investor. I have found that most investors at meetups are eager to help others. Doing a joint venture could be another option. You bring some time and money and the partner brings experience. I hope this helps.

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    Maybe get a  job as a  runner , and that way you can climb up  

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://www.biggerpockets.com/forums/530/topics/1165942-runn...

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  • Michael SloanBusiness Member
    Property Manager · Richardson, TX · Member since 2023 · 31 posts · 15 votes
    2y

    @Andrew Sullivan it’s time to narrow your focus

    You’ve done the research and looked at lots of investment options. Now decide which one interest you the most. If your not interested in it then chances are it won’t work out

    Then figure out what you do have. You’re not incredibly liquid right now but what about your credit, how much time do you have to find a deal, are there any skills you could bring to the table for a rehab or raising money? Then go find a partner who has cash but needs what you have.

    Do some deals get some experience, make some money, and build your balance sheet. Then over time you’ll have the cash to invest on your own or put into deals with your business partner

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  • Allen Parker
    Santa Ana, CA · Member since 2021 · 13 posts · 20 votes
    2y

    i dont know why people are bashing you for writing multiple paragraphs, that was hands down the best thing i read today. So many zingers in one post. 

    I have nothing useful to add unfortunately, just wanted to compliment your writing. best of luck sir.

    3Reply
  • Travis Main
    Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
    2y
    Quote from @Allen Parker:

    i dont know why people are bashing you for writing multiple paragraphs, that was hands down the best thing i read today. So many zingers in one post. 

    I have nothing useful to add unfortunately, just wanted to compliment your writing. best of luck sir.

     I absolutely agree with you. Engaging in these forums and taking the time to complain about the length of a post, especially without actually reading it, reflects a lack of etiquette and ignorance. If a post seems too lengthy, it's simple: don't read it and refrain from responding. This makes it easy to identify individuals you'd prefer to collaborate with and those you'd rather avoid.

    @Andrew Sullivan 

    There's a lot of great resources available to you on bigger pockets, and a lot of great feedback can be given on these forums. Unfortunately, sometimes you have to navigate through the crap to get there. Don't let anyone discourage on this journey. 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    I would recommend starting simple to get some confidence. As @Bob S. said, it's simple not easy.

    Find a small SFH or even Condo somewhere, anywhere, that needs a very light rehab. Go through all the steps and make a few grand. No that is not going to make you rich....but it will get you into the game and get you the passion for REI.

    Then do another, slightly more difficult, and continue down the road. Don't choose a RE genre right now, the houses will dictate what you do. Some you flip, some you hold, some you STR, eventually one you will keep for yourself. Others you will scrape and new build (later).

    Go find a simple house and buy it. Easy!

    2Reply
  • Dan Marriggi
    Rental Property Investor · Scranton, Boston · Member since 2013 · 101 posts · 40 votes
    2y
    You could become a writer ?
    Maybe take this opportunity to move to a different location, get a good paying job.
    Expose yourself to other people like you.

    Maybe learn a skill/trade - hvac, plumbing etc.
    Make youtube videos of your journey.
    You are 24  - you have so much life ahead of you - get out there and make some mistakes !!!
    0Reply
  • Costin I.
    Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
    2y

    @Andrew Sullivan you have multiple problems and ADD. 

    You have the immediate problem of income - REI is not going to solve that. You might try wholesaling, but even that is not going to be fast - find a wholesaler, go work for him for free for a couple months, soak all the knowledge you can meanwhile and read all the material you can get from internet, BP, Amazon books on the subject. And you might get something going. Regardless, solve this one first. You are not thinking straight while under the pressure of this problem.

    You have the intermediate problem of debt - you need to learn to save 50% or more of your income. And to pay your debt asap. It's a promise, you made it, so suck it up, and pay your debts, keep your promises. 

    And you have the longer-term solution of REI. This is slow and steady, desert crossing quest, one step at a time, brick after brick. A marathon, not a sprint. You're not going to win one just cause you decided to start running today. Especially when you don't know in which direction to run.

    The 3 main ingredients for REI are time, money and knowledge. Rarely a beginner has all 3. You are lucky if you have 2 and can compensate the 3rd. From the looks, you only have time. You'll have to spend a lot of it to make up for the rest.

    Figure out what you want to do. Or better, figure out first what you do NOT want to do. Or even more important, figure out WHY you want to do it.  Then figure out what you are willing to give up (maybe more dramatic, sacrifice) for it. Nothing good comes easy. 

    2Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Costin I.:

    And pay your debt asap. It's a promise, you made it, so suck it up, and pay your debts, keep your promises. 

    You're not going to win one just cause you decided to start running today. Especially when you don't know in which direction to run. 

    I love these two statements! 1) You don't want to start playing a game that involves (and revolves around) debt by not paying one you already have. Bad mindset and horrible karma. 2) You must have at least some idea of where you want to head before just running around blindly. Start specific goal-setting.....

    0Reply
  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    2y

    Get a job, quick!! AND THEN do all the things mentioned above. Go to RE meetings, learn more, drive for dollars, work EXTRA for a wholesaler, work EXTRA for investors. Get your 40 hr job to pay the bills and then work some more.

    The beginning of real estate is not going to get you to financial freedom in a few months or probably not in a few years. BUT it is building the solid foundation for some thing big. This is definitely NOT get rich quick.

    Get good at something. Whether it is construction, construction management, property management, sales, realtor, talking with wealthy people to lend you money, whatever. Have some skills that will help you in your journey.

    1Reply
  • Barbara Sheppard
    Investor · Clinton, MD · Member since 2018 · 21 posts · 12 votes
    2y

    Thank you for your comment, @Bruce Woodruff. Very helpful for me, another new REI who is recovering from analysis paralysis and seeking a real estate opportunity. This simple, straight-forward approach to getting in the game resonates with me personally. I will refer to this to help me stay big-picture focused initially. Most appreciated!

    0Reply
  • Suzanne PlayerPro Member
    Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
    2y

    I would make my 1st 3 phone calls (yes, calls not texts or emails) to 3 experienced mortgage bankers or brokers (at least), to see what my financing situation would be.  

    Since you're in NY & a 1st time home buyer, check out New York State's First Time Homebuyer Programs at https://hcr.ny.gov/sonyma

    There are several programs, different criteria, if you need any recommendations for mortgage professionals feel free to message me

    516-503-7959
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  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 569 posts · 127 votes
    2y

    Make sure you are excellent at deal analysis, start building a team and go out and network (on social or live events), once you gave that in place start looing for deals and put out offers.

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