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?

[Henry R.]

@Frank Patalano, For us it's not only finding the deals but coming up with the money. We bought one 3 unit with private money just because I vented to a friend who flips for a living, the bank was making us and the contractors jump through hoops. My friend loaned us the money bought the property and refi cash out (Conservatively). We borrowed money from my wife's mother for a joint venture flip. That went well. But now my wife's mother is not feeling it  or in the mood to do it again. We are still looking, made an offer on a single family this week, however we got turned down. We are on to another one, we will find the money some how. So moving at a snails pace. Thanks for reading!

[Alissa Warren]

@Frank Patalano

For me its the fear that NYC market so expensive and i have little to no capital..

[Gregory Thomas Jr]

@Frank Patalano

[Gregory Thomas Jr]

The unknown!@Frank Patalano

[Devin Hightower]

@Frank Patalano Great way to start an awesome discussion! Right now I'm trying to hedge my risk by building an appropriate emergency fund (6 months of expenses) and paying off other debt.

Once that's done though (hopefully within 9 months), I have a rental property that I didn't buy with an investor's perspective that I have to figure out what to do with. It's currently about breaking even cash flow wise, so it doesn't hurt me to hold it, and my mortgage is being paid down by great tenants. But there's about 50k in equity I could convert to cash by selling it, and then use that to fund future deals. I've been wrestling with this decision, and would prefer to sell it within about 1.5 years to avoid capital gains, but just not sure what the "right" decision is yet...

[Dennis Callaghan]

This is sort of a hold back on a decision. I own 5 SF rental properties and have gained some decent equity since the market has gone up and now I am a place where do I take the slow road and grab one every 8 -10 months or cash in my equity and go for the multi-family properties. I have had good success with my SF's because they are in a college community so I am unsure what to do.

[Dennis Callaghan]

This is sort of a hold back on a decision. I own 5 SF rental properties and have gained some decent equity since the market has gone up and now I am a place where do I take the slow road and grab one every 8 -10 months or cash in my equity and go for the multi-family properties. I have had good success with my SF's because they are in a college community so I am unsure what to do.

[Zachary Zinn]

Guess there are a few things

-First one is finding deals, basically everything MLS in my area is over priced. Going to start working with an agent that seems to have connections with more off market or early market deals, plus general investing experience.

-Being sure I've taken everything into account when running numbers on a deal. Keep learning and running numbers on new properties that show up and am getting better.

-Funding. Both just having capital for down payments or being able to put together more creative financing. Coming up with 20% down for buy and holds will take a while.

-Being able to scale quickly. While its not something holding me back persay, more of I want to find a way to create more of a business so I can scale and acquire more properties quickly.

The one thing I do have going is I am a home inspector so I know the physical aspects of the property.

[Frank Patalano]

Originally posted by @Steven Terrell:

@Frank Patalano great topic btw- for me, I guess it’s the fear on the “unknown”. I, like many others I suppose, don’t want to look like a complete *** by not knowing every single detail and answer. Granted you have to know your numbers and keep your team on point, etc sometimes we just gotta get out of our own way and enjoy the ride.

 You will never know all of the answers. Even experienced people get it wrong once in a while. Like you said, "sometimes we just gotta get out of our own way and enjoy the ride".

[Frank Patalano]

Originally posted by @Steven Terrell:

@Frank Patalano do you utilize any of the real estate crowdfunding platforms out there?

 I haven't done any crowdfunding. I have thought about it but am too busy doing deals in my primary market.

[Frank Patalano]

Originally posted by @Ty Ottaberry:

@Frank Patalano

I searched day and night trying to find a solution to come up with the down payment on the deals that I find. It gets pretty stressful at times but on wont stop until I land my 1st rental property. Iv never wanted something so bad in my life

 If not are not house hacking then the best options are to partner up or wholesale the first one. I've enjoyed partnering with friends on various deals.

[Frank Patalano]

Originally posted by @Justin Oliver:

For me, it was the ability to structure and fund the deal. I kept looking at places and thinking "This is great" then looking in my bank and realizing it just wasn't going to happen, so I'd broker these to other investor clients.  BP introduced so many creative ideas for financing to me, that I never thought of!! I bought my first property with seller financing, just because I asked the question of the seller... Without some of the knowledge gained from BP I wouldn't have know how. 4 doors later, I still look at deals I'd like that are cash, and now try to raise private money for those ones (One of those four doors was bought with a private money partner, and as soon as the property seasons I'll get them paid off from the re-fi), but my network for this is still smaller... I'm trying to grow it. I've got my goals in place, and am working towards now, with this start in place. I need some more education and mentoring on scaling so I can grow my portfolio, and hit my goals. 

 Nice. I'm still pretty new to BP. I'm pretty experienced in the field. Yeah seller financing and private money are 2 awesome ways to get money.

[Frank Patalano]

Originally posted by @Daeshon Ross:

@Frank Patalano If I had to say there are possibly two things holding me back:

1. Taking a risk in real estate

2. Knowing the EXACT steps in BRRRR

Seeing the success of fellow investors on BP forums makes me anxious to begin investing, yet nervous.

 Every deal involves some risk. Take small risks to be successful. If you continue to educate yourself you will reduce risks. At the same time you need the experience of really doing it to really learn.

[Frank Patalano]

Originally posted by @Canesha Edwards:

@Frank Patalano

Hey Frank, thanks for the advice. Which confirms that I’m on the right path, in offering to help other developers.

Definitely! Good Luck. 

[Frank Patalano]

Originally posted by @Joe Miller:

@Frank Patalano I've been wholesaling to pay off bad debts. I have a good amount of knowledge ( enough to get into rehabs and start with rentals) but funding is very low right now. 

 Keep doing a few more. Sounds like you are doing great. You will get there. Pay off the bad debt first.

[Frank Patalano]

Originally posted by @Henry R.:

@Frank Patalano, For us it's not only finding the deals but coming up with the money. We bought one 3 unit with private money just because I vented to a friend who flips for a living, the bank was making us and the contractors jump through hoops. My friend loaned us the money bought the property and refi cash out (Conservatively). We borrowed money from my wife's mother for a joint venture flip. That went well. But now my wife's mother is not feeling it  or in the mood to do it again. We are still looking, made an offer on a single family this week, however we got turned down. We are on to another one, we will find the money some how. So moving at a snails pace. Thanks for reading!

Henry. Keep telling everyone that you are an investor. Show them pics of the deals that you have done so far. Perhaps someone else that you know will open their purse strings. 

[Frank Patalano]

Originally posted by @Alissa Warren:

@Frank Patalano

For me its the fear that NYC market so expensive and i have little to no capital..

Ya. NYC is crazy and not worth it in my opinion. You should invest in a REIT or crowdfund a deal out of state. Keep learning as much as you can so that you can be ready if an opportunity arises.

[Frank Patalano]

Originally posted by @Gregory Thomas Jr:

The unknown!@Frank Patalano

 Education helps relax anxiety about the unknown. Remember though that it does not eliminate it. Experience will help a great deal as well.

[Frank Patalano]

Originally posted by @Devin Hightower:

@Frank Patalano Great way to start an awesome discussion! Right now I'm trying to hedge my risk by building an appropriate emergency fund (6 months of expenses) and paying off other debt.

Once that's done though (hopefully within 9 months), I have a rental property that I didn't buy with an investor's perspective that I have to figure out what to do with. It's currently about breaking even cash flow wise, so it doesn't hurt me to hold it, and my mortgage is being paid down by great tenants. But there's about 50k in equity I could convert to cash by selling it, and then use that to fund future deals. I've been wrestling with this decision, and would prefer to sell it within about 1.5 years to avoid capital gains, but just not sure what the "right" decision is yet...

Great strategy. You must have an emergency fund. I do! Selling might not be a bad idea if you can find a better deal. Keep looking. Try to buy the next one with seller financing if possible. Avoid Capital GAINS if you can. I don't know the whole situation. Can you get a HELOC?

[Frank Patalano]

Originally posted by @Dennis Callaghan:

This is sort of a hold back on a decision. I own 5 SF rental properties and have gained some decent equity since the market has gone up and now I am a place where do I take the slow road and grab one every 8 -10 months or cash in my equity and go for the multi-family properties. I have had good success with my SF's because they are in a college community so I am unsure what to do.

I find single families to be easier to manage and great for appreciation in cycles. We are probably near the top of a cycle. (idk) Perhaps sell one of the singles and use it to dip your toe in the multifamily water. Or you can find a Multifamily deal first and then get creative. Be a problem solver. 

[Frank Patalano]

Originally posted by @Zachary Zinn:

Guess there are a few things

-First one is finding deals, basically everything MLS in my area is over priced. Going to start working with an agent that seems to have connections with more off market or early market deals, plus general investing experience.

-Being sure I've taken everything into account when running numbers on a deal. Keep learning and running numbers on new properties that show up and am getting better.

-Funding. Both just having capital for down payments or being able to put together more creative financing. Coming up with 20% down for buy and holds will take a while.

-Being able to scale quickly. While its not something holding me back persay, more of I want to find a way to create more of a business so I can scale and acquire more properties quickly.

The one thing I do have going is I am a home inspector so I know the physical aspects of the property.

Wow. A lot of stuff here. You being a home inspector puts you well ahead of the competition. One option is to join the local REIA. Meet up with wholesaler who see might see some properties prior to the agents. I don;t usually buy MLS so I know what you mean.

Don't worry about scaling yet. Get a deal or 2 under your belt first. You'll get there.

[Ashley Matejewski]

I’m new to investing and have not done a deal yet. I have done a lot of research though and am ready to dive in. I met a lady who is moving soon but is struggling to sell her home even after reducing the price. It seems like a good wholesale opportunity, however I am struggling with the steps to take to make it happen. I want to start off with wholesaling as a way to learn real estate investing, but finding buyers seems to be what holds me back. I’m in Chicago, IL.

[Frank Patalano]

Originally posted by @Ashley Matejewski:

I’m new to investing and have not done a deal yet. I have done a lot of research though and am ready to dive in. I met a lady who is moving soon but is struggling to sell her home even after reducing the price. It seems like a good wholesale opportunity, however I am struggling with the steps to take to make it happen. I want to start off with wholesaling as a way to learn real estate investing, but finding buyers seems to be what holds me back. I’m in Chicago, IL.

If you join your local REIA you should be able to find buyers if it is a good deal. I buy about half of my stuff from wholesalers.

You have to make sure that there is plenty of meat on the bone for people to jump at it. 

[Victor Suarez]

@Frank Patalano making 2.6m in 7 months turned me into a turd....

[Fadwa Mufo]

can anyone give suggestions on what course or subject should I take in the university to help me become a good real estate investor..please help me