What Were Your Biggest Hurdles Starting Out??

Question

What are some of the biggest hurdles professionally that you've encountered and how did you make it over the hurdles?

Anthony Sulecki · Answer

My mouth. Im an "explainer" by birth.

I tend to go into details about topics, when its not totally necessary. I would do the same thing with sellers, which isn't a good thing, all the time.

When you are sitting around with friends, explain away, but when it comes to sellers, listen and answer questions. It took me a few deals to get that under wraps.

I overcame this by just letting them control some of the flow of the meeting, instead of me feeling like I had to be in total control all the time. Good advice, imo.

Tom C · Answer

Biggest hurdle so far has been financing. I finally found a company that would pull money out of my one property that with less then 6 months seasoning. They promised the world and then screwed around for a month and made me jump through hoops and the end result was not what I was promised, but I did finally get 21K @ 70% LTV to use on this next REO. For a week there, I had a the bank accept my bid on the REO and I wasn't sure if this company was going to back out of the Refi at the last minute. Pretty tense times, but I guess thats what makes it fun. Now I just have to find a company that will let me refi this next one with little seasoning. I sure don't want to go back to the last company.

Account Closed · Answer

I agree wholeheartedly.  Almost forgot, !!

Frederic Petit · Answer

Since I am just starting out, my biggest hurdles are just to get started :-).
I am right now building a team (agent, lender, etc...) and creating the right stucture to do business (already created a LLC) and it's not that easy and takes a lot of time.

Fortunately I already found an agent that seems to understand investors and I guess that my next hurdle is to find the right property but it's very exciting.

Account Closed · Answer

Congrats Fred!  Finding a good agent is key!  Just a word of warning, I have worked with numerous agents as an investor and only one of them really understood investing because she was an investor herself.  My two cents...  Good luck to you!!

Jared

Connie Brzowski · Answer

When we first started, our biggest hurdle was our old way of thinking... old programming from the work/save/collect Social Security mentality.

That was the *right* way and anything else was risky. Slowly we began to understand that our old way of handling money was risky... but still, those old inner monologues keep popping back up from time to time  :roll:

Now our biggest hurdle is keeping cashflow maximized so we can continue to expand  :D

Account Closed · Answer

Aaaah yeah fear.  Fear can run your life if you let it!!  I fear a few things...

1.  Working for somebody else again.  Scares the s*** out of me!!  
2.  See above.

Obviously when I started in REI I feared failure, ridicule, not being enough, all those things that are natural.  Luckily I am persistent and fought through all that.

Brandon Ellis · Answer

I am a noob running into 2 major hurdles:

1. Local attorneys tell me wholesaling and land trusts are illegal or qeustionable, and that I shouldn't invest in my town because it is going no where.

2. Fear of the lack of ability to find reasonable financing after the sub prime fallout.

My local REIA members are nice, but I feel like their primary motivation is to try and sell me something (prepaid legal, no cash flow rentals etc.). I guess I could say my hurdle is more discouragement than anything else right now.

Justin Y · Answer

My biggest hurdle starting out, was FEAR!  What-ifs and discouraging friends/family can really not make you want to pull that trigger.

I just said, F it and I went forward with my decisions and never looked back.  I think the biggest thing that prohibits anyone from investing is FEAR... fear of loss, fear of failure, fear of the unknown ... I talk to my friends that "WANT" to invest, but they won't because they have the squirrel mentality of hording their money and they are afraid of loosing it or failing.

A great man once said: if you play if safe, you'll never reach your dreams.  I think success requires some sacrifice and risk as does almost everything worth while in life.  I was taught if you want something bad enough, you can go out there and make it happen!

Greg Shaw · Answer

I doubt I am sitting on a gold mine I just haven't broken into the RE community yet.
I am in kingston Ontario Canada, population of approx 120000 with surrounding area. This is the largest city in eastern Ontario outside of Toronto and Ottawa. 
This is a university town also having a extensive prison system, government and some industry. Student rental buildings are over priced (cannot come close to cash flow with 2% rule) and under maintained. At this time I am looking beyond the city limits although rent levels will be lower.  I don't think this city is unique I just think I need the contacts to find the real deals. My goal is in the next five years to purchase and hold with a positive cash flow of approx. $2000/ month. 
I know if I  maintain the momentum I will suceed and as it is early in my learning curve I know also that I may not be ready for or able to identify the right deal.  Patience is to my advantage right now.