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Updated 4 months ago, 08/19/2024

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Frank Patalano
Pro Member
  • Rental Property Investor
  • East Providence, RI
1,439
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1,992
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So what's holding you back?

Frank Patalano
Pro Member
  • Rental Property Investor
  • East Providence, RI
Posted

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?

  • Frank Patalano
  • User Stats

    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Go to the local reia groups, educate yourself, and build as much experience as you can.
    There are many people that offer paid mentorship programs. I'm not saying to specifically buy into one. The better way is to go to a few meetings and Network. Overtime ask some of the bigger players if there's a way that you can help them. If you help him enough times they might take you under their wing. 

    Originally posted by @Robert Anderson:

    @Frank Patalano. I haven’t been able to find a mentor. I really don’t know where to start.

  • Frank Patalano
  • User Stats

    1,992
    Posts
    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    My excuse has a shelf life. I love that.

    There is no real difference between out-of-state investing and out-of-country investing. You're an American and the rules are pretty consistent throughout the United States. I could invest in Alaska right now, or New York. Both of them are out of my neighborhood. I have American friends that live overseas and currently buy only in the United States

    Originally posted by @Travis DeForge:

    Being stationed in Germany with the Army is holding me back! Out of state investing is one thing, but for some reason out of country investing seems more daunting (probably all in my head). But, moving back to the states in 2 months, so my excuse has a shelf life!

  • Frank Patalano
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    User Stats

    1,992
    Posts
    1,439
    Votes
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Networking is easy for some people and hard for others. Basically you have to consistently go to local real estate meeting to get better at networking. Eventually you will find a group of people who share similar goals and values. Look up the phrase Mastermind group. That is one way to build partners.
    Originally posted by @Shaun Morgan:

    @Frank Patalano I just bought my first home before I learned about BiggerPockets. I dropped all my capital into that and I haven’t found a partner to do a deal with to make up the difference. Probably because I’m unsure about networking and I’m afraid of losing the limited funds I have to take care of my family.

  • Frank Patalano
  • User Stats

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    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Anthony and agree with you 100%.
    Originally posted by @Anthony Wick:

    @Cody Bradley I've been where you are currently at. Owned homes. Owned rentals. Got divorced. Started all over again, including renting a duplex. I decided to buy a duplex as my first purchase after divorce. FHA loan. Best decision I had made in a long time. And I also had two kids half the time while living in that duplex. They didn't mind at all. So, buy your primary residence and your rental, a 2-4 plex!

  • Frank Patalano
  • User Stats

    1,992
    Posts
    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    You're doing fine. Everything that you learned on that last property will build experience for the next one. You could take the realtor out to lunch as a thank you besides that you could also have him send you any listings that become available. I'm sure that the realtor will be happy to do it for free. Eventually they might find a deal for you.

    Originally posted by @Jacqueline Burch:

    The lack of a process of due diligence.

    I have a solid process for running the numbers, but lack a good process of due diligence. I recently "almost" offered on a property. Had the foresight to get in touch with a realtor for some comps and in that process, he highlighted to me that though the numbers looked good on paper, in his experience, properties in that particular area never performed well. I feel so grateful to this realtor for spending his time with me (which we all know cost him time and didn't yield any return). 

  • Frank Patalano
  • User Stats

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    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Obviously I don't know all the specifics of your particular situation. If you're that hard up for cash there's nothing wrong with getting a full-time job and making real estate investing your side Hustle. It is pretty tough to make enough money just in real estate investing when you are first starting out. I'm not the best person to ask. I've held on to extra jobs way too long before I decided to jump into real estate investing full-time. The full-time jobs gave me the balance sheet to look good for banks on paper. I have done some wholesaling but not a lot. I usually buy from the wholesalers.

    Originally posted by @Dawn Horvath:

    @Frank Patalano

    Went to an RE workshop this past weekend. I am in Economic hardship the work shop people tell me I can make wholesale deals and get out of this money hole I am, but a realtor friend I have known for 40 years and knows that I have no money, tells me to get a 5 day a week job rather than 3 day a week as my current work schedule is. Get my debts paid off then pursue RE investing. I am really confused.

  • Frank Patalano
  • User Stats

    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Landlording is not for everybody. Flipping has a lot of potential. I personally like more of the long-term play for Cashflow. At some point I'm sure I'll check out the book

    Originally posted by @Account Closed:

    I don't want to be a landlord anymore, unless when the crash comes and I can scoop up a good deal. Otherwise, want to get started with flipping. But just trying to educate myself right now. I picked up the J Scott flipping book (2013 version) from BP, so far its pretty good.

  • Frank Patalano
  • User Stats

    1,992
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    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Nice. Yeah flipping properties is a great chunker strategy. Some people love it other people don't.

    Originally posted by @Jaison Emmanuel:

    Buying a rental to me was easier than doing a flip on a SFH. I did my first flip over a year ago... but now that that fear is gone... can't get enough of it.

  • Frank Patalano
  • Account Closed
    • New to Real Estate
    • Argyle, TX
    25
    Votes |
    28
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    Account Closed
    • New to Real Estate
    • Argyle, TX
    Replied

    Liquid Capitol....the situation that I’m in, I can’t increase my income through w2 or 1099 or a business...only passive investment income. But to have the investment income I need cash. So I’m between a rock and a hard place. Just bought my first property recently, but that required no money at all from me so it was possible to do. I’m looking at private/hard money, and business credit cards as a possible source of cash

    User Stats

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    Replied

    The market in Florida specifically Tallahassee, FL is so high. I purchased my first home in 2016 and now the prices are 20k-30k more for the same homes that were on the market two years ago. One important think for me is cash flow and so far with these high prices cash flow on a single family home in my prices range (50,000 or less for class C) only calculates to a $100 cash flow and that is not worth it to me. I am also still saving money for my investments. After reading Raising Private Capital by Mark Faircloth I have been strongly thinking about being a passive investor with my cash and a self-directed IRA. Education is important to me so this year I have really dove deep into educating myself about real estate investing. and making sure I am prepared to invest.

    User Stats

    78
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    23
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    Stanley Nguyen
    • Rental Property Investor
    • San Jose, CA
    23
    Votes |
    78
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    Stanley Nguyen
    • Rental Property Investor
    • San Jose, CA
    Replied

    This is an awesome post.  As a newbie myself, I'd like to share my thoughts

    1. Pick a right market to invest in - How do I know that it's the right market for me to invest if I have a set of clear criteria (good school district, low crime, turnkey property that produce steady passive income without much headache)?
    2. Pick a right team to work with - For OOS investor like myself, how do I know that the broker/agent/contractor/PM are working in my interest?  Without "boots on the ground", I'm pretty much at their mercy to have a sound investment.
    3. Fear of what-if - Based on my historical track records, things that I plan usually do not work out the way I planned so what makes this time different?

    User Stats

    56
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    23
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    Evan Smeenge
    • Real Estate Broker
    • Chicago, IL
    23
    Votes |
    56
    Posts
    Evan Smeenge
    • Real Estate Broker
    • Chicago, IL
    Replied

    @Frank Patalano

    I'm paying off crippling credit card debt, then I need to save to buy the first property.

    In essence, no capital.

    Side note, wife wants a home before starting investing, she is ok with a house hack. But she wants whatever she is living in to be her place.

    #compromise

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    User Stats

    1,992
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    1,439
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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    On that first property you bought it with no money down. Can you continue to get properties that way?
    What about Partnering?

    Originally posted by @Account Closed:

    Liquid Capitol....the situation that I’m in, I can’t increase my income through w2 or 1099 or a business...only passive investment income. But to have the investment income I need cash. So I’m between a rock and a hard place. Just bought my first property recently, but that required no money at all from me so it was possible to do. I’m looking at private/hard money, and business credit cards as a possible source of cash

  • Frank Patalano
  • User Stats

    1,992
    Posts
    1,439
    Votes
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    You don't sound like a newbie.

    Originally posted by @Stanley Nguyen:

    This is an awesome post.  As a newbie myself, I'd like to share my thoughts

    1. Pick a right market to invest in - How do I know that it's the right market for me to invest if I have a set of clear criteria (good school district, low crime, turnkey property that produce steady passive income without much headache)?
    2. Pick a right team to work with - For OOS investor like myself, how do I know that the broker/agent/contractor/PM are working in my interest?  Without "boots on the ground", I'm pretty much at their mercy to have a sound investment.
    3. Fear of what-if - Based on my historical track records, things that I plan usually do not work out the way I planned so what makes this time different?
  • Frank Patalano
  • User Stats

    1,992
    Posts
    1,439
    Votes
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    1,439
    Votes |
    1,992
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Sounds like a great compromise. House hack is a great strategy. Find out how much you need is a down payment by meeting up with some lenders.


    Originally posted by @Evan Smeenge:

    @Frank Patalano

    I'm paying off crippling credit card debt, then I need to save to buy the first property.

    In essence, no capital.

    Side note, wife wants a home before starting investing, she is ok with a house hack. But she wants whatever she is living in to be her place.

    #compromise

  • Frank Patalano
  • User Stats

    3
    Posts
    4
    Votes
    Brandon Bridgewater
    • Columbus, OH
    4
    Votes |
    3
    Posts
    Brandon Bridgewater
    • Columbus, OH
    Replied

    I. Just. Can't. Find. A. deal!

    User Stats

    252
    Posts
    138
    Votes
    James Canoy
    • Kingston, Ny
    138
    Votes |
    252
    Posts
    James Canoy
    • Kingston, Ny
    Replied

    @Frank Patalano

    I have one flip which is about to finish. I am absolutely desperate for someone like a mentor to walk me through what everything should cost, time tables, how to approach things etc.

    User Stats

    5
    Posts
    3
    Votes
    Dylan Brown
    • Flipper/Rehabber
    • Saint Louis, MO
    3
    Votes |
    5
    Posts
    Dylan Brown
    • Flipper/Rehabber
    • Saint Louis, MO
    Replied

    @Frank i just bought my first investment property which was a tax foreclosure. I finally got the deed and accessed the house. There was nothing wrong with it but a good clean up. I looking into buying another but there’s a family still staying there. Any advice?

    Account Closed
    • New to Real Estate
    • Argyle, TX
    25
    Votes |
    28
    Posts
    Account Closed
    • New to Real Estate
    • Argyle, TX
    Replied

    @Frank Patalano

    I was able to get that home because I used a VA loan, and also because I have a 100% total and permanent disability rating with the VA. That meant a 300k home with no money down, no closing costs, no PMI, and no property taxes. I can probably use my va loan to do this every couple/few years for the rest of my life (I'm about to be 30) which would I imagine build great long term wealth pretty easily and passively. But ideally I would like to scale it a little faster and be more involved. My fiancé will be working in a couple years and that will all be extra income to invest, but I'd like to be more involved and active, doing more deals more often. The other route is great, but I would still have my biggest problem, boredom haha

    Thanks for the time Frank!

    User Stats

    4
    Posts
    2
    Votes
    Eugene Robinson
    • Rental Property Investor
    • Salem, OR (salem or)
    2
    Votes |
    4
    Posts
    Eugene Robinson
    • Rental Property Investor
    • Salem, OR (salem or)
    Replied

    @Frank Patalano credit score and funds

    User Stats

    36
    Posts
    12
    Votes
    Justin M.
    • Rental Property Investor
    • Denver, CO
    12
    Votes |
    36
    Posts
    Justin M.
    • Rental Property Investor
    • Denver, CO
    Replied

    Good topic! I see the hot markets are making it difficult for a lot of people, myself included. I wonder what these responses would look like in a cooler market with more reasonable prices?

    For me, I am being held by back by analysis paralysis, I guess you could say. Even though I just closed another property in January.

    Now, I am really trying to find markets where I can get the best return on my money and deploy that money to go to work!

    User Stats

    28
    Posts
    9
    Votes
    Eladio P.
    • Rental Property Investor
    • Providence, RI
    9
    Votes |
    28
    Posts
    Eladio P.
    • Rental Property Investor
    • Providence, RI
    Replied

    my personal situation is that im not making any income from my self employed business and therefore have no income to show for paystubs to get a mortgage. My credit is in the final phase of being "perfect". So my plan is to wait about 3 months to have my credit in the top 700s and paystubs from my own Llc to be able to qualify for a good mortgage. Im planning to go after a first home mortgage that covers 100% of the loan including down payment assistance for a triplex in providence or in the area close to it. Meanwhile just looking at deals and calculating the numbers to get good at it. I haven't been to the local reiag meeting due to working on my business but this coming month I'll be there for sure.

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    User Stats

    96
    Posts
    36
    Votes
    Troy Bailey
    Pro Member
    • clayton, NC
    36
    Votes |
    96
    Posts
    Troy Bailey
    Pro Member
    • clayton, NC
    Replied

    @Frank Patalano when I was starting out last year the fear was paying too much for the property. After 4 doors under my belt I’m comfortable making offers over asking to lock a cash flowing deal in.

    I would like to dive into off market deals but lack of knowledge on how to approach a deal without a realtor is holding me back on doing mailers.

  • Troy Bailey
  • User Stats

    7
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    6
    Votes
    James Coon
    • Lender
    • Gilbert, AZ
    6
    Votes |
    7
    Posts
    James Coon
    • Lender
    • Gilbert, AZ
    Replied

    Honestly, for me it took me a while to learn how to find the right deals and trust that what I had learned about investing in real estate was actually going to work.

    User Stats

    3
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    0
    Votes
    Replied

    Predatory Lending. That's what's holding me back.

    I have a few rentals on mortgage with decent cash flow. It seems that bridge loans are mostly shark loans forcing me to slow down and use my own cash to purchase.