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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
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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
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    Canesha Edwards
    • Developer
    • Atlanta, GA
    424
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    Canesha Edwards
    • Developer
    • Atlanta, GA
    Replied

    @Frank Patalano

    The thing that's holding me back is money and experience. I have dreams of being a developer, so instead of starting the traditional way with a flip or small MFR, I'm looking for value add apartment deals.

    I’ve spent a lot of time building my knowledge base trying to learn as much as possible for experienced developers. However, my limited personal funds and lack of development experience has been a bit of a hindrance to say the least. All in all, I’m learning a lot along the way and know I’m getting close to my first deal.

    User Stats

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    Corey Fernandez
    • Providence, RI
    4
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    Corey Fernandez
    • Providence, RI
    Replied

    @Frank Patalano Hey Frank. Thanks for posting this. For me, I own a multu right now that I live in. As a Newbie to the investing side, it's learning what I don't know. Currently, I have 3 properties that I believe would be strong wholesale opportunities, but not knowing the contract piece and the repair costs is a HUGE fear.

    What do you suggest?

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    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
    Hold out for something that meets your criteria. Also, Network, network, network.
    Looks under rocks if you have to.

    Originally posted by @Brandon Bridgewater:

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

  • 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
    Originally posted by @James Canoy:

    @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.

    You can find Mentors online but they will probably cost you money. Besides that you may have to try to network in the NYC or Albany markets. Sounds like you are building experience without a mentor. Few people will give away their knowledge for free. After a few deals you will easily be able to estimate the costs. Is there a REIA in Hudson? If not maybe you can set one up.

  • Frank Patalano
  • User Stats

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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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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Dylan Brown:

    @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?

     I've done it before myself. Offer to rent it to them for a slightly reduced price. If they don't pay you might have to evict. Before you do anything contact an attorney in your area an double check their ownership rights if they can redeem you.

  • 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
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Account Closed:

    @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!

     Become an expert in negotiation or reviewing deals. You can provide that service to others. I have a friend who has a massive hearing disability but is able to analyze big deals for others. Good Luck.

  • Frank Patalano
  • User Stats

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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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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Eugene Robinson:

    @Frank Patalano credit score and funds

     Eugene. Learn as much as you can. Become an expert. I have purchased properties no money down before. Or you can wholesale or partner on your next deal.

  • 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
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Justin M.:

    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!

     It really doesn't sound like you are having a problem. You are just being conservative in a tough market. Stick to your numbers!

  • 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
    Posts
    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Eladio P.:

    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.

     I hope to see you next month at the meeting. Go out and look at deals now. Learn about real estate whenever you have time. If you find a deal lock it up and others will pay you to pass it along to them because they have money but no time to look.

    Good Luck.

  • Frank Patalano
  • User Stats

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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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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @Troy Bailey:

    @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.

     Read up on it as much as you can. Most of the stuff that we buy is off market. That is where the real money is.

  • Frank Patalano
  • User Stats

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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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    Frank Patalano
    Pro Member
    • Rental Property Investor
    • East Providence, RI
    Replied
    Originally posted by @James Coon:

    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.

     Yeah, I understand. That is why I suggest that many people either partner or house hack their first deal. They will gain so much experience that way instead of doing nothing because of analysis paralysis.

  • Frank Patalano
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    Replied

    Hello, I am in my own mental game right now.  I have a decent amount of cash saved up. I have been reading all types of real estate and motivational books. I have a plan of action on paper. I just need to put the plan to action. My goal in 2019 is to get over that mental hump and purchase my first deal.  I run 3-5 property analysis a week. Still looking for that right deal.  I'm going to start with a duplex , would perfer more units,  but for the first purchase I am going to take it slow.  I also do not want to take on a home that needs a lot of work.  Although I am fairly handy there is going to be enough new things to learn about becoming a landlord without taking on major repairs.   

      Good luck to all investors, especially the new ones like me who need that push to get over the mental hump. 

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    User Stats

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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
    Originally posted by @Juanjo Cerezo:

    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.

     I've never done a bridge loan. Tell me more...

    We have used hard money before. Most people do want you to have some skin in the game.

  • 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
    Originally posted by @Canesha Edwards:

    @Frank Patalano

    The thing that's holding me back is money and experience. I have dreams of being a developer, so instead of starting the traditional way with a flip or small MFR, I'm looking for value add apartment deals.

    I’ve spent a lot of time building my knowledge base trying to learn as much as possible for experienced developers. However, my limited personal funds and lack of development experience has been a bit of a hindrance to say the least. All in all, I’m learning a lot along the way and know I’m getting close to my first deal.

     Nice. If you are really all in on doing real estate, offer to help someone (a bigger player). Work for free if you have to. You will get noticed. 

    Help be a small partner on a development so that you have some experience. I know people that are buying 1% into a property just to get involved and learn.

  • 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
    Originally posted by @Corey Fernandez:

    @Frank Patalano Hey Frank. Thanks for posting this. For me, I own a multu right now that I live in. As a Newbie to the investing side, it's learning what I don't know. Currently, I have 3 properties that I believe would be strong wholesale opportunities, but not knowing the contract piece and the repair costs is a HUGE fear.

    What do you suggest?

    Join your local REIA. Find a property that you think might be a good deal. Find a flipper who will partner with you and learn with them. Even if you make almost nothing think of the valuable experience that you will gain.

  • 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
    Originally posted by @Corey Fernandez:

    @Frank Patalano Hey Frank. Thanks for posting this. For me, I own a multu right now that I live in. As a Newbie to the investing side, it's learning what I don't know. Currently, I have 3 properties that I believe would be strong wholesale opportunities, but not knowing the contract piece and the repair costs is a HUGE fear.

    What do you suggest?

     Corey your from Providence. Keep coming to our meetings. :>

  • 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
    Originally posted by @Tim Hollingshead Jr:

    Hello, I am in my own mental game right now.  I have a decent amount of cash saved up. I have been reading all types of real estate and motivational books. I have a plan of action on paper. I just need to put the plan to action. My goal in 2019 is to get over that mental hump and purchase my first deal.  I run 3-5 property analysis a week. Still looking for that right deal.  I'm going to start with a duplex , would perfer more units,  but for the first purchase I am going to take it slow.  I also do not want to take on a home that needs a lot of work.  Although I am fairly handy there is going to be enough new things to learn about becoming a landlord without taking on major repairs.   

      Good luck to all investors, especially the new ones like me who need that push to get over the mental hump. 

    Yeah. You have to get over that yourself. You are doing great looking at deals every week.

    A duplex is good but I would look at anything 4 units or less. Especially if you are going to live there. Get out there and do it.  

  • Frank Patalano
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    Steven Terrell
    • Rental Property Investor
    • Bellmawr, NJ
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    Steven Terrell
    • Rental Property Investor
    • Bellmawr, NJ
    Replied

    @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.

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    Steven Terrell
    • Rental Property Investor
    • Bellmawr, NJ
    0
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    Steven Terrell
    • Rental Property Investor
    • Bellmawr, NJ
    Replied

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

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    Ty Ottaberry
    • Rental Property Investor
    • Gilmer tx
    21
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    Ty Ottaberry
    • Rental Property Investor
    • Gilmer tx
    Replied

    @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

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    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. 

    User Stats

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    @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.

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    Canesha Edwards
    • Developer
    • Atlanta, GA
    424
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    Canesha Edwards
    • Developer
    • Atlanta, GA
    Replied

    @Frank Patalano

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

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    @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. 

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    Corey Fernandez
    • Providence, RI
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    Corey Fernandez
    • Providence, RI
    Replied
    I certainly will! 

    Originally posted by @Frank Patalano:
    Originally posted by @Corey Fernandez:

    @Frank Patalano Hey Frank. Thanks for posting this. For me, I own a multu right now that I live in. As a Newbie to the investing side, it's learning what I don't know. Currently, I have 3 properties that I believe would be strong wholesale opportunities, but not knowing the contract piece and the repair costs is a HUGE fear.

    What do you suggest?

     Corey your from Providence. Keep coming to our meetings. :>