So what's holding you back?

[Frank Patalano]

When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.

So I'll ask here. What is holding you back?

[Account Closed]

@Frank Patalano, the only real thing holding me back right now is the sale of my rental property (used to be my primary). It will go on the market in May (I have tenants in there until the end of June). Once that sells I anticipate having a large chunk of change to get me going. 

I also used my VA loan to purchase my current home, which will be one year in July. I will rent this one out and look for another to use the remaining entitlement.

Since last year I have been doing all the pod casts, blogs, reading, meeting, networking, etc., so once that puzzle piece falls into place, it's on! :)

[Janice Johnson]

Thank you for your advise and I use to be a member of GAREIA and I was working with someone and they left me high and dry. Built me up then in a blink of an eye shot me down. Very disappointed! 

[Detrick Moore]

@Frank Patalano

What's holding me back? Nothing , I plan to start when I save a down payment for a SFH

[Mike McKinzie]

I have been investing since around 1980 but want to get into syndication. I think it's just the process that is a bit intimidating. I was wondering, for those of you that do syndicate, did you invest in some syndication's before you did your own syndication? I am sure that I am an accredited investor, due to asset and income, but it is only on SFR where I have the experience.

[Zach Midwood]

@Frank Patalano

Hi Frank...finding a great deal is what has been holding me back. As you know, I have been seeking my first property which I intend to househack. Majority of my looking had been on the MLS and craigslist. I still search there daily but that is not where I will find a good deal. I find networking and getting my name out there to be the best bet. Recently, I have been doing direct mailing of my own too. I am committed to the process and determined I will find the right deal. I am seeking cashflowing multi-families of 3 to 4 units that produce from day 1. The patience will pay off and when the right one comes, I will be ready.

Great question!

Zach

[James De Stefano]

Awesome thread that I'm still reading through.  It's a bold move to buy a house is disastrous shape, and even though it's a step by step process,  to me and probably many others it feels like climbing a massive mountain. 

But you have to start some time...and after climbing 5 mtns, climbing the next 5 won't be so bad...or painful ! :)

[Frank Patalano]

House Hacks are nice but I assume that there are not many 4 units in the area. You could house hack a 4 unit.

Originally posted by @Michael Sjodin:

@Frank Patalano The 5 unit might not be a bad idea. I have to research the commercial side more, but for starting out I am naturally drawn towards a duplex situation so I can house hack.

[Frank Patalano]

There you go. It's just a timing issue. Sounds like everything else is in place. There is nothing wrong with started to look before you put your house up for sale. Then you can start to gauge the market.

Originally posted by @Account Closed:

@Frank Patalano, the only real thing holding me back right now is the sale of my rental property (used to be my primary). It will go on the market in May (I have tenants in there until the end of June). Once that sells I anticipate having a large chunk of change to get me going. 

I also used my VA loan to purchase my current home, which will be one year in July. I will rent this one out and look for another to use the remaining entitlement.

Since last year I have been doing all the pod casts, blogs, reading, meeting, networking, etc., so once that puzzle piece falls into place, it's on! :)

[Frank Patalano]

@Janice Johnson

You can get burned once in a while but I consider that more the exception than the rule. You should still be able to get recommendations etc.

[Frank Patalano]

@Detrick Moore

Sounds like money is holding you back. I had to pick up a second job and drop some wants to get started.

[Frank Patalano]

@Mike McKinzie I would absolutely invest as an LP before diving in to syndication. 

[Frank Patalano]

Zach, I know you personally so we can talk more off line. 

From what you have said you are doing all of the right moves. 
Networking and Direct Mailing are your best bets. All of Massachusetts is a tough market. I was even talking to some investors up in Springfield and Ludlow on Saturday. Your best shots in Massachusetts are probably Fall River and New Bedford. Pawtucket is probably your best bet in Rhode Island.

Originally posted by @Zach Midwood:

@Frank Patalano

Hi Frank...finding a great deal is what has been holding me back. As you know, I have been seeking my first property which I intend to househack. Majority of my looking had been on the MLS and craigslist. I still search there daily but that is not where I will find a good deal. I find networking and getting my name out there to be the best bet. Recently, I have been doing direct mailing of my own too. I am committed to the process and determined I will find the right deal. I am seeking cashflowing multi-families of 3 to 4 units that produce from day 1. The patience will pay off and when the right one comes, I will be ready.

Great question!

Zach

[Frank Patalano]

@James De Stefano

I lost $20K on my first deal. You have to start small and work from there. Ask your parents about when you first start to walk. That first time that you fell down, you didn't stay down, you got back up and kept walking. Same thing with riding a bike. You learn from education but also through doing. Stay conservative but take the leap.

[Jeremy L.]

@Jacob Gelinas What made you finally pull the trigger? Did you intentionally decide to overlook or risk on certain aspects of your analysis?

What mentally changed for the deal you took vs the deals that you convinced yourself out of?

Also, are you happy with the deal so far?

[Clayton Collins]

@Frank Patalano

 why not?  If I join a group doing them, multi family, then I can learn from them vs figuring it out on my own. I’ve been interviewing a few groups to see what might be a good fit. Now I just have to commit.  I grew up around storage properties.  They’re great companions to other industrial properties.

[Frank Patalano]

@Clayton Collins

Yeah go either way. Been doing a lot of syndication research myself lately. I just know there's a lot of different strategies but if you're interviewing multiple groups you should do fine.

[Brandon Williams]

@Frank Patalano Thanks for this post. I have been on the sideline...watching. What's holding me back is that I am a risk manager by trade, so I tend to think in terms of mitigating potential risks. I don't want to buy without creating an LLC or S-Corp (which one?) because I don't want my personal assets at risk.

Aside from that, it is just wanting to have everything else already figured out (contractors, managers, etc.). I know...analysis paralysis.

[Aaron Hunt]

Cash. That’s whats holding me back from buying my 5th!

[Antonio J. Mendoza]

@Frank Patalano I am actually doing all that you have recommended since I got out here. Thank you! I will definitely reach out!

[Michael Wallimann]

@Frank Patalano Nothing held me back. Let's go my brother!

[Frank Patalano]

@Brandon Williams

An LLC is not that expensive too open. Less than $1000. I opened my first one with an attorney. Maybe used Nolo.com or their book

Go for it now if you have enough for a down payment.

[Frank Patalano]

@Aaron Hunt

There's nothing wrong with continuously looking. If you find a deal you'll creatively find the money. 4 is a great start.

[Nick Rutkowski]

@Frank Patalano

Thanks Frank, I agree I need to partner with someone on my next deal. Manpower, muscle! I need a crew of workers with the amount of rehab I like to do to my properties.

[Cody Bradley]

@Frank Patalano

Mainly my credit. I've had a few properties in the past but I got divorced and I currently rent. Getting closer to being approved for a mortgage.. feel like I need to buy my primary residence before I get any rentals.

[Jack Zheng]

@Anthony Wick what do you mean when you find homes off market? Like from other wholesalers?