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?

[Rodney Robinson]

Originally posted by @Frank Patalano:

Build a system, yes. When a problem comes up, see what you can do to improve your system, and then go from there.

thanks, Frank.

[Deohn Lewis]

@Frank Patalano

For me it's money. I've been reading and listening to podcasts, but I'm just having a hard time understanding how to get started A.S.A.P without money or credit seems really difficult for me to get my head around.

[Frank Patalano]

Originally posted by @Dominic Battaglia:

@Frank Patalano well right now it's having enough for a down payment. I dont make the best wage currently, I've been spending a ton of time looking for a new job so I can save more to put a down payment since I need 20% here in Toronto. Also, I only qualify for a $100,000 mortgage on my own, so I need a cosigner. I went with my parents and they said they would help, but they're too slow on moving on things. We lost so many opportunities since they want to "think about it" even after showing them the analysis from bigger pockets and consistently talking about the deals. I'm looking to get a new job, save for a few more years and execute on my own now.

 Since you need 20% down how about partnering on a deal? Split the ownership which would reduce your down payment. 

[Frank Patalano]

Originally posted by @Camaya Miller:

Individually: I'm pretty sure I won't get lending approved to buy a multi family property to house hack because I have huge student loan debt. I'm hoping to buy a tax foreclosures property and expand using the BRRR method in a couple of years using cash. Partner wise: I dont have experience or skills to leverage with a partner so that they could provide the funding. Any tips? Im just continuing to absorb info like a sponge.

 I'm not sure how huge you are talking about for the debt but my partner Jimmy bought a 4 unit with $70K in student loans.

Good luck on tax deed properties. Too much competition where I have been. 

I build all of my Partnerships through networking in my local REIA.

[Frank Patalano]

Originally posted by @Charlene Stovin:

@Frank Patalano

The down payment; I can't live in it, I already own a small acreage; could take out a HELOC but not sure I could afford payments back on that and a mortgage....the 15-20 percent down payment

 Find a partner. Part of a deal is better than no deal.

[Frank Patalano]

Originally posted by @Chris Salerno:

Myself from growing. 

 Chris. You are doing just fine. At the same point, mindset goes a long way.

[Frank Patalano]

Originally posted by @Kristen Reyes:

@Frank Patalano I have not bought my first property yet. I have been reading as much as i can for about 3 weeks and have decided to go with the BRRRR strategy.

Now what is holding me back- the idea of rehabbing a house without knowing contractors ahead of time. It will be so hard for me to get an accurate idea of a full rehab costs which would translate into big losses for me. I just worried about getting ripped off by not knowing much about house repairs.

I guess my main fear is not knowing who to work with. The right realtors , contractors, management companies etc.

The only other thing is knowing that I am going to invest in the right market in my area. I am in NWI btw. I know crime rates should be low, but what else do you consider when investing? Do you look at overall percentage of renters in that city?

Thanks for taking the time to read all these and respond. You are beyond awesome!

 You are doing fine. 3 weeks is not a long time. Keep studying and educating. 

You can't be an expert on everything. Find one person on your team that you trust and build the rest of your team with referrals from him and her. I find most referrals from my local REIA.

I've never looked at the percentage of owner-occupied versus renters. Where is NWI?

[Frank Patalano]

Originally posted by @Kelly Delfino:

@Frank Patalano

Ok. I’m a realtor in a high end market that has come to a holt. I know there will be a huge demand for rentals. I’ve found an area that seems to be booming. Am doing the math or thinking about buying the land and building the duplexes.

What do you need from me to be a financial partner??

 Sometimes new construction can be a good opportunity.

you need to design the situation and get approval from the city or town. Once you have an approved plan you can start to shop the idea around to people in your network. 

You can probably bring it down as a joint venture if you find a couple of High net worth partners.

[Frank Patalano]

Originally posted by @Deohn Lewis:

@Frank Patalano

For me it's money. I've been reading and listening to podcasts, but I'm just having a hard time understanding how to get started A.S.A.P without money or credit seems really difficult for me to get my head around.

If you find a good deal , there are other investors that have money but can't find deals. They would love to put their money to work in an opportunity.

[Dominic Battaglia]

@Frank Patalano I have been looking into that, my friend group doesn't have the capital, or are extremely risk adverse (rather just have a 9-5) or they would rather buy themselves a personal property first. Finding responsible and trustworthy people is difficult too. I am looking for a partner, but not banking on it. I may need to acquire that better job, save for another year and then go ahead. It's not ideal, but it seems like what will most likely happen. That being said, I am trying to find a way.

[Terry Thomas]

@Frank Patalano

Hello Frank,

That’s a great question and a great way to expose any fears we may be hiding.

With me, it’s often analysis paralysis. Always “needing” to read just a couple more books, listen to a few more podcasts before I can make a move. I feel as though I’m finally ready to move past the excuses and get active.

My first step was to start this account. I’m currently seeking fellow, local investors, attorneys, and title agencies. Thanks for the post. Wish me luck. :)

[Ray J.]

@Frank Patalano NWI is Northwest Indiana.  Gary, IN and surrounding areas.

@Kristen Reyes Just like Frank said, keep studying.  Less than a month will most likely not make you an expert.  As soon as you think you know enough, you'll come across something totally new to you.  But at some point, you need to just try.  Your learning will accelerate when you have skin in the game.  But I feel your pain.  Rehab estimating and finding reliable contractors has been the toughest part for me, and still is.  I've been navigating it a couple of ways... 

1) Getting deals for SO CHEAP and in conditions that there's NO WAY I can lose. Example: buying a property for 10K that you KNOW will ARV/appraise for minimum 40K (based on surrounding comps), that OBVIOUSLY can be rental-grade-rehabbed for less than 20K (cosmetic, paint, kitchen, floors, etc) and that will easily rent to great tenants for $800 (again, based on surrounding comps). Those numbers can be scaled/changed depending on what parts of NWI you focus in. You can price materials online or by phone at big-box or local specialty stores if you don't have a special hook-up yet. Labor is the toughest part, but common sense

2) Asking people at REIA meetups. There are several here in NWI that I know about and I'm a member of one. PM me if you'd like some info about any of them.

[Joseph Larson]

@Frank Patalano overthinning. Thinking that is has to be more complicated then it is.

[Kenneth A. Hodges]

@Frank Patalano I have a severe case of analysis paralysis. I find that I overthink EVERYTHING and talk myself off of the ledge, instead of taking the leap. I begin to doubt myself and what I have read on this forum, and then I don’t think about it for a little. And now it seems to be an endless cycle.

[Frank Patalano]

Originally posted by @Dominic Battaglia:

@Frank Patalano I have been looking into that, my friend group doesn't have the capital, or are extremely risk adverse (rather just have a 9-5) or they would rather buy themselves a personal property first. Finding responsible and trustworthy people is difficult too. I am looking for a partner, but not banking on it. I may need to acquire that better job, save for another year and then go ahead. It's not ideal, but it seems like what will most likely happen. That being said, I am trying to find a way.

 Do you know wholesaling is legal in Ontario? You put a distressed property under contract for a lower price and sell the contract to someone else. A lot of investors do that in the US. I've bought many contracts over the years.

[Frank Patalano]

Originally posted by @Terry Thomas:

@Frank Patalano

Hello Frank,

That’s a great question and a great way to expose any fears we may be hiding.

With me, it’s often analysis paralysis. Always “needing” to read just a couple more books, listen to a few more podcasts before I can make a move. I feel as though I’m finally ready to move past the excuses and get active.

My first step was to start this account. I’m currently seeking fellow, local investors, attorneys, and title agencies. Thanks for the post. Wish me luck. :)

 Nice. I don't know the Chandler Arizona area but there has to be a local Meetup Group. I get most of my referrals through networking. If there is not a local group, start one. In a year or two you will be considered a local expert.

[Frank Patalano]

Originally posted by @Kenneth A. Hodges:

@Frank Patalano I have a severe case of analysis paralysis. I find that I overthink EVERYTHING and talk myself off of the ledge, instead of taking the leap. I begin to doubt myself and what I have read on this forum, and then I don’t think about it for a little. And now it seems to be an endless cycle.

 I know the Bronx is a tight market right now but eventually you will have to take the best deal that you think that you can get.

the learning process is so much different and better once you own a property. You really have to get out there.

it's kind of like before and after driving a car.

one possible strategy is to make an offer on every property that you look at no matter what. Figure out what you think it is worth and make that offer. Even if you're ashamed of it.

[Account Closed]

@Frank Patalano New regulations that are being passed. We wanted to start in Anaheim being so close to Disney and LA and Hollywood and all that but there's so many restrictions. We plan to buy our first investment property in July 2020 but have no clue where to start.

[Razak Amadu]

Originally posted by @Frank Patalano:

Originally posted by @Razak Amadu:

Cant find deals. I have made tons of offers and still nothing. What I’m I doing wrong?

 #1 we are in a super hot Market. Many closings are not making sense. Where are you getting your leads?

So those buying at these high prices how are they making these deals work?

[Frank Patalano]

Originally posted by @Razak Amadu:

Originally posted by @Frank Patalano:

Originally posted by @Razak Amadu:

Cant find deals. I have made tons of offers and still nothing. What I’m I doing wrong?

 #1 we are in a super hot Market. Many closings are not making sense. Where are you getting your leads?

So those buying at these high prices how are they making these deals work?

 Most are either being super creative or might be losing money.

if the market turns there will be pain.

[Jeremy Corporan]

@Frank Patalano

Hello BP community. This is a perfect question for new investors and seasoned ones as well. I found out the hard way that it's actually fear and comfort. I found a beautiful 2 family home in a A neighborhood with excellent school systems. Of course it was bank owned being sold as is. I saw this property late where it said all bids due by 5 pm today. It was priced below market value and needed work. I did comparable solds in that area with similar sqft,rooms, baths, year built. Some were off and others were 6-10 min drive from each other. However I still came away with my numbers (ARV) felt confident and put in an offer. My goal was to use the FHA 203k loan to force equity into the property (BRRRR method) and refinance out of it once it was re appraised to avoid the high PMI on the loan. From my understanding it needs to be 85% of your ARV value if not you are screwed with the PMI. Felt confident put in the offer then suddenly doubt started to kick in. Part of this was mainly because of ignorance. I felt like I knew what i was doing but deep down inside I did not know as much as I should with the 203k loan.

Started telling myself that I was fine where I was renting for dirt cheap and I could now be risking coming up with other people's half of rent if it doesnt get rented out the "comfortability part". What if the PMI stays on the life of the loan? I am sorry I rattled off and some might not read this far in but if you do your not alone we all have SOMETHING HOLDING us back!

[Frank Patalano]

Originally posted by @Account Closed:

@Frank Patalano New regulations that are being passed. We wanted to start in Anaheim being so close to Disney and LA and Hollywood and all that but there's so many restrictions. We plan to buy our first investment property in July 2020 but have no clue where to start.

 What are the new regulations?

[Frank Patalano]

Originally posted by @Jeremy Corporan:

@Frank Patalano

Hello BP community. This is a perfect question for new investors and seasoned ones as well. I found out the hard way that it's actually fear and comfort. I found a beautiful 2 family home in a A neighborhood with excellent school systems. Of course it was bank owned being sold as is. I saw this property late where it said all bids due by 5 pm today. It was priced below market value and needed work. I did comparable solds in that area with similar sqft,rooms, baths, year built. Some were off and others were 6-10 min drive from each other. However I still came away with my numbers (ARV) felt confident and put in an offer. My goal was to use the FHA 203k loan to force equity into the property (BRRRR method) and refinance out of it once it was re appraised to avoid the high PMI on the loan. From my understanding it needs to be 85% of your ARV value if not you are screwed with the PMI. Felt confident put in the offer then suddenly doubt started to kick in. Part of this was mainly because of ignorance. I felt like I knew what i was doing but deep down inside I did not know as much as I should with the 203k loan.

Started telling myself that I was fine where I was renting for dirt cheap and I could now be risking coming up with other people's half of rent if it doesnt get rented out the "comfortability part". What if the PMI stays on the life of the loan? I am sorry I rattled offer and some might not read this far in but if you do your not alone we all have SOMETHING HOLDING us back!

 Even Robert Kiyosaki said that he was nervous at every closing. You deserve success. Set goals to get there.

[Larry Smith]

@Frank Pw2atalano

For me, I'm in the military and do not know what my next move will be and I would like to be local to learn from my team as well as maintain some control. More than that, I have 10K+ saved and it seems like in Maryland and Virginia where I am now, I may need a little more little money to cover closing and or the down payment. I have a realtor and potential lender that I am in contact with, so I based the second hold-back off of conversations we have had pertaining to the local area. Hopefully these do not sound like a copout, but I want to ensure that when I make that move for the first time, that I'm all in and not putting my family in a bad situation at the same time.

[Account Closed]

They aren't accepting new STRs, they're limited to only a certain number of Short term Rentals in residential zones. Pretty much everything near Disney is a Residential zone. And the applications in other cities are expensive and need to be renewed and there's laws saying that you and the renters can be fined if there are noise complaints. Other cities limit the STRs to 5% of the communities and other cities and township just straight up prohibit them.

Today, The wife and I decided to just do our STRs throughout Europe. There's still cities with those regulations like Paris and Barcelona and a few others, but they aren't as strict.