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?

[Frank Patalano]

No Problem. With my teacher background, used to read the kids version at school. Loved it.

Originally posted by @Keith Torsen:

@Frank Patalano

That's actually a book I've been wanting to pick up for some time now. Thanks for the recommendation!

[Travis Buchanan]

@Frank Patalano the fear of not knowing what I’m doing and possibly messing up contracts.

[Nathan Rea]

@Frank Patalano

Not really holding me back because I'm working through it all. But the underwriter for the loan is a real pain with, "we want this copy or that copy." Apparently that have issues with me having money and moving it between accounts. Just frustrating to deal with them. I will be looking for a different lender next time.

Over all my biggest issue has been all the hidden little things that keep popping up. Prepaying taxes, instead of escrow, and more little things here and there. If I can give advise from my experience keep your head up and your eye on the goal. You will get there, it just takes time.

[Frank Patalano]

@Travis Buchanan

That can be overcome through education. Learn as much as you can, join a local reia and partner up on your first deal if you have to. It's pretty hard to mess up a contract. You can do it.

[Frank Patalano]

@Nathan Rea Yes. Most lenders are tough to deal with. We often stick with the same ones so that they know us and might be slightly easier once they know that we pay consistently. Lenders are often super nervous. Are you using a traditional bank or more of a mortgage broker? I've heard that brokers are easier to deal with an usually only contact you when absolutely necessary. We may try one on the next deal.

Eye on the goal is a good one. That first deal will get you so much experience.

[Jesus Lora]

@Frank Patalano

What’s holding me back is my market and lack of knowledge. Been looking in the Boston market but there’s too much competition and overpriced houses. Started looking outside of Boston recently and that’s where the lack of knowledge comes in. So I started reading, listening to podcasts and lots of YouTube, now I just need some hands on experience.

[Joe Miller]

Funds/ Credit

[Frank Patalano]

@Jesus Lora You are doing the right thing. Educate yourself about neighboring markets and remember that Cashflow is more important than Appreciation. We are looking at Fall River, New Bedford, and Worcester right now. Join a real estate group. Sometimes they have property walkthrough, etc. And keep networking.

[Frank Patalano]

@Joe Miller I need a little more info. If you have no money go out there and be willing to work for others. This will build your knowledge and street cred. If you bring someone else a deal they will probably be willing to pay you something for bringing them that deal.

[Janice Johnson]

To answer the question "What's holding me back" For me it's "contracts" Say I'm doing a Wholesaling deal, How should the contract be worded? What type of contract can I legally use? In addition, how do I protect myself and how do I get out of the contract if a buyer is not found in time? How many days should you have the property under contract with the seller? How much earnest money is needed to secure the property legally?

[Michael Sjodin]

@Frank Patalano Dealing with an employment transition after being pre-approved up to 600k with 0% down in California. Been trying to find a cashflowing duplex in the greater San Diego area, but duplexes are often priced at a rate that doesn't cashflow in the area because the seller takes the duplex factor into account when pricing and often creates a 0 or low cashflow situation.

[Joshau Deleon]

@Frank Patalano I don’t feel confident enough, I have read 3-6 books but only know the bare minimum. I would like to get a mentor or find someone in my area who I can learn first hand from. I looked up one real estate group on Ike and email them but I never got a response.

What do you think I should do next?

[Chris Templer]

@Frank Patalano lack of knowledge is my biggest fear. I’m trying to educate myself as much as I can.

[KC T.]

@Frank Patalano

1. Where do I find them online in Atlanta?

2. How do I get in to them?

(I tried one and the seller's agent wouldn't even meet with me. Do I need to get some kind of credit pre-check done? Do I need to go through a buyer's agent?)

[Antonio J. Mendoza]

Being deployed.  Looking to hit the ground running after getting back to the States.

[Frank Patalano]

@Clayton Collins

Syndications is the current buzzword. Not saying that it isn't doable just be careful. If I were you I would try to pull down a 10-15 unit first.

Storage facilities are an interesting topic. I know nothing about them.

[Frank Patalano]

A lot of questions here.

Contracts? Join a local real estate group. Get a recommendation for a local attorney that the other wholesalers are using. He/she should have contracts on file. Or on the first one find a potential deal and bring it to another wholesaler. If it is a deal they might mentor you.

I expect every state to be a little different on the wording. 

Write in Subject to's... Subject to partner approval. Subject to attorney approval. etc.

Number of days is dependent on how fast the seller wants to close. Some need help but don't want to close quickly.

In our area MLS deals are often executed with $1,000-$3,000 dollars. A wholesale deal could be less.

Like I said, every area and every deal is different.

Sounds like you desperate need to be a part of your local reia. Work for others to learn the trade.

Originally posted by @Janice Johnson:

To answer the question "What's holding me back" For me it's "contracts" Say I'm doing a Wholesaling deal, How should the contract be worded? What type of contract can I legally use? In addition, how do I protect myself and how do I get out of the contract if a buyer is not found in time? How many days should you have the property under contract with the seller? How much earnest money is needed to secure the property legally?

[Michael Burrows]

I finally took action last week. I after listening to the podcast and reading several books I feel like I'm ready. 

I found a few vacant properties close to my house after driving for dollars. Tracked down the home owners through the tax info. Actually found one that is two years behind on his taxes. Found his info after digging through google and paying for a worthless skip trace (SuperMPower) . Waiting to hear back but mailing out letters tomorrow. Also was able to reach another lady and have exchanged texts. Said she would let me know in a week or so. Working on finding the owner of another property but haven't had much luck. What is the best skip trace site that everyone uses?

I'm still not sure how I will fund the deal but tired of waiting. We bought our last house in May off the market and have a good amount of equity in the home. So I thought of getting a HELOC or using family money. I'm handy and have remodel our last 2 houses as the general contractor so ready to try it as flip. We are in a good area that is 10 minutes from downtown so I feel confident if can get one of them.

[Frank Patalano]

@Michael Sjodin

I understand your situation completely. I don't have many answers for you but I have heard that your market wasn't as red hot as it was 6 months ago. Not saying that they prices are going down just that the increase has been slowing.

Perhaps you can partner with a friend and buy a duplex together. 

I assume that there are not many off market properties in the area.

Can you partner with a friend on a bigger multi? Like a 5 unit? Those are small enough that some of the big players won't touch them but big enough that people don't want to buy with a commercial mortgage.

Can you AirBnb to generate more income?

Just trying to be creative. I don't know much about San Diego.

[Frank Patalano]

@Joshau Deleon Where are you located? What Reia did you contact?

[Frank Patalano]

@Chris Templer Ya. Keep going with the education. Also force yourself to go to real estate networking events. There should be a whole bunch especially in the Nashville area. Not the sales pitch ones. The free or absolutely low cost REIA ones.

[Frank Patalano]

@KC T. Are you just trying to buy a regular house or are we talking a foreclosure? In a hot market, getting pre-qualified is a must. Sometimes an agent won't call you back if they are already in contract. Go to open houses. You will meet agents that way.

[Frank Patalano]

@Antonio J. Mendoza Learn as much as you can. If you can read while deployed, read. If you can listen to podcasts, do it.

You are welcome to contact me when you get back.

[Frank Patalano]

Ya it sounds awesome. Keep hustling.

How many letters did you mail out? If it was only a few don't expect a lot of responses. You might need to mail hundreds.
Get back to that woman in a week, no matter what. She'll forget you before you forget her. Add it to your calendar. We had to send a woman 10 letters before she sold us the house.


Originally posted by @Michael Burrows:

I finally took action last week. I after listening to the podcast and reading several books I feel like I'm ready. 

I found a few vacant properties close to my house after driving for dollars. Tracked down the home owners through the tax info. Actually found one that is two years behind on his taxes. Found his info after digging through google and paying for a worthless skip trace (SuperMPower) . Waiting to hear back but mailing out letters tomorrow. Also was able to reach another lady and have exchanged texts. Said she would let me know in a week or so. Working on finding the owner of another property but haven't had much luck. What is the best skip trace site that everyone uses?

I'm still not sure how I will fund the deal but tired of waiting. We bought our last house in May off the market and have a good amount of equity in the home. So I thought of getting a HELOC or using family money. I'm handy and have remodel our last 2 houses as the general contractor so ready to try it as flip. We are in a good area that is 10 minutes from downtown so I feel confident if can get one of them.

[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.