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?

[Taylor L.]

Originally posted by @Frank Patalano:

Originally posted by @Taylor L.:

Originally posted by @Jorge Abreu:

I will speak to what was holding me back from making the jump from Single Family Investments to large Multifamily Investments. I know my biggest issue was time and focus. It wasn't till I started focusing more on Multifamily & slowly doing less single family and not getting distracted by other shinny objects that I was able to acquire my 1st large Multifamily property. It was a slow but consistent change of focus. 

I no longer say I don't have time to do something. That is not an accurate statement. You can always make time to accomplish certain things. It all depends on how focused you can stay and making the time to get it done. I hope that can relate to others. 

 This is such a good point. It all comes down to commitment. What are you willing to not do (to take out of your schedule) so you can dedicate more time and attention to your investments? My big commitment conflict is doing less jiu jitsu, and instead investing that time in my real estate business. It's a constant struggle!

 We all have the same 24 hours. Isn't it amazing how much some people accomplish compared to others?

 Absolutely. I get incredibly inspired by the folks who accomplish more than I do in a given day. Discipline, teams, systems, and commitment!

[Frank Patalano]

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

[Frank Patalano]

Originally posted by @Geoffrey M Hersch:

Looking to get started and overly researching the how to's and different strategies.  We live in Orange County, CA where homes are very expensive.  We are therefore looking to purchase out of state in Ohio, Colorado and may focus on areas near large universities.  We have also looked on Roofstock but either way, we would be purchasing a site unseen property.  Ugh... needless to say, I am paralyzed by fear of overpaying, remote management and of course, losing money.  

We have run numbers on inexpensive SFH properties under $100,000 in Ohio in addition to more expensive fully renovated duplexes for the mid $500,000 and every property we've looked at has positive cash flow BUT NOT MUCH. Is it worth the investment to purchase a property that cash flows $200 per month compared to those that cash flow for $1,000 per month? Depending on the downpayment/investment, the interest earned on the money in the market would be more than the property cash flow. Make sense??

 Higher cashflow? 

Most properties that are on market won't cashflow much. The market is hot. A higher demand for property means higher prices and lower returns.

#1 Concern.

You have to work hard to make sure that the numbers are accurate. Agents often conveniently leave put certain expenses such as property management, lawn care, etc.

Depending on different factors you may also consider investing with partners on a larger property.

[James Bradley]

[James Bradley]

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

[Geoffrey M Hersch]

@Frank Patalano I have not spoken to any of the realtors yet.  The calculators I am using on Bigger Pockets and other Excel spreadsheets that have been provided to me all show positive net cash flow but the question is, especially for the first investment, how much is too little to make it a "good investment"? Thanks again Frank. I am learning a lot here.  

[Frank Patalano]

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

Education involves paying for a class through a guru. There are many options out there. I am not going to recommend one. You really have to research quite a few yourself. I did not personally go this route. Instead my strategy was to focus on networking and reading. 

The best place to find a mentor would be at your local REIA. Every major city has at least one. Keep going and learn who the regulars are.

If you are handy perhaps you could start with a fix and flip.

[James Bradley]

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

Education involves paying for a class through a guru. There are many options out there. I am not going to recommend one. You really have to research quite a few yourself. I did not personally go this route. Instead my strategy was to focus on networking and reading. 

The best place to find a mentor would be at your local REIA. Every major city has at least one. Keep going and learn who the regulars are.

If you are handy perhaps you could start with a fix and flip.

Thank you kindly! 

I feel like I need a sheet of paper with options, like A) BRRR. B) fix and flip. C) buy empty lot throw prefab on it, sell.

D) but real estate notes. E) buy tax liens and be prepared to fix and flip it 

I feel like if i had a breakdown in front of me I could choose better but it's so vast and vague that I'm definitly intimidated now :/

[Frank Patalano]

Originally posted by @Geoffrey M Hersch:

@Frank Patalano I have not spoken to any of the realtors yet.  The calculators I am using on Bigger Pockets and other Excel spreadsheets that have been provided to me all show positive net cash flow but the question is, especially for the first investment, how much is too little to make it a "good investment"? Thanks again Frank. I am learning a lot here.  

 There are a lot of different formulas. 

One that many people use is the Cash on Cash return. Try to be 10% or better on the first year.

Other people use the Cap Rate.

If you are flipping you might want to have a certain profit number no matter what. Perhaps $30K. That doesn't mean that you will always hit $30K, it means that you will always pencil out a $30K profit before you buy a deal. It gives you a buffer in case you made a mistake.

As you educate yourself you will find other formulas that you might like.

[Frank Patalano]

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

Education involves paying for a class through a guru. There are many options out there. I am not going to recommend one. You really have to research quite a few yourself. I did not personally go this route. Instead my strategy was to focus on networking and reading. 

The best place to find a mentor would be at your local REIA. Every major city has at least one. Keep going and learn who the regulars are.

If you are handy perhaps you could start with a fix and flip.

Thank you kindly! 

I feel like I need a sheet of paper with options, like A) BRRR. B) fix and flip. C) buy empty lot throw prefab on it, sell.

D) but real estate notes. E) buy tax liens and be prepared to fix and flip it 

I feel like if i had a breakdown in front of me I could choose better but it's so vast and vague that I'm definitly intimidated now :/

 There are books out there that give an overview of multiple strategies.  BTW, we have done most of the things on your list. We haven't bought a note but we have done hard money lending.

[James Bradley]

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

Education involves paying for a class through a guru. There are many options out there. I am not going to recommend one. You really have to research quite a few yourself. I did not personally go this route. Instead my strategy was to focus on networking and reading. 

The best place to find a mentor would be at your local REIA. Every major city has at least one. Keep going and learn who the regulars are.

If you are handy perhaps you could start with a fix and flip.

Thank you kindly! 

I feel like I need a sheet of paper with options, like A) BRRR. B) fix and flip. C) buy empty lot throw prefab on it, sell.

D) but real estate notes. E) buy tax liens and be prepared to fix and flip it 

I feel like if i had a breakdown in front of me I could choose better but it's so vast and vague that I'm definitly intimidated now :/

 There are books out there that give an overview of multiple strategies. If you are on Instagram we post different strategies all of the time. BTW, we have done most of the things on your list. We haven't bought a note but we have done hard money lending.

 I can't thank you enough for responding, I just followed your instagram and will start listening to your podcast aswell. Maybe something will click for me, in this area there's atleast 100 properties up for sherrif sale every month. I guess I should try to use what I know of the area to my advantage aswell :/

[Frank Patalano]

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

Originally posted by @Frank Patalano:

Originally posted by @James Bradley:

I'm sitting here with ~100k cash, I dont have ANY idea where to pull the trigger. Do I look for multifamily homes, single family homes, (small) apartment building? Will I have better luck BRRR or trying to flip properties (buy + hold?)...I feel like I have enough information to know that I dont have enough information to make an informed decision...

I'm trying my best to move forward in realestate, I want to do whatever it is FULLTIME, meaning this will be my primary source of income. I already own (outright) the home i'm living in (albeit, I want an upgrade soon.) I'm still not sure which road to travel and could REALLY use guidance there, or alteast a place to start looking for the correct guidance!

 I would spend some money on education or a mentor.

I can't give you a lot if guidance because I still know enough about you skills and other income. 

I guess that another thing that I would do would be to start networking. 

You have to find a strategy that plays up to your strengths. You can be successful at any strategy.

What kind of education, or where to find a mentor in my area (philadelphia)?

truthfully, I trying to avoid needing income elsewhere. My other source of income isnt going to last much longer (age/injury).

This is me attempting to start gathering knowledge and networking, I'm looking local aswell. I understand you can he successful with each strategy, and my strengths as a person come from me being able to learn, adapt, and adjust quickly. As a mechanic, it's why I am one of the best at diagnosing. Once I know how things work, I can figure it out and apply it in multiple ways.

I rather delve and research a strategy that will allow me to create a solid foundation of passive income. My end goal, if I had to pick, would be a large apartment building that can bring in enough money to cover all expenses (management company, maintenance, taxes, etc) while putting a sizable amount into my pocket each month. (This early goal would be 10-20k a month, I dont really plan to be a millionaire, just comfortable)

Education involves paying for a class through a guru. There are many options out there. I am not going to recommend one. You really have to research quite a few yourself. I did not personally go this route. Instead my strategy was to focus on networking and reading. 

The best place to find a mentor would be at your local REIA. Every major city has at least one. Keep going and learn who the regulars are.

If you are handy perhaps you could start with a fix and flip.

Thank you kindly! 

I feel like I need a sheet of paper with options, like A) BRRR. B) fix and flip. C) buy empty lot throw prefab on it, sell.

D) but real estate notes. E) buy tax liens and be prepared to fix and flip it 

I feel like if i had a breakdown in front of me I could choose better but it's so vast and vague that I'm definitly intimidated now :/

 There are books out there that give an overview of multiple strategies. If you are on Instagram we post different strategies all of the time. BTW, we have done most of the things on your list. We haven't bought a note but we have done hard money lending.

 I can't thank you enough for responding, I just followed your instagram and will start listening to your podcast aswell. Maybe something will click for me, in this area there's atleast 100 properties up for sherrif sale every month. I guess I should try to use what I know of the area to my advantage aswell :/

 Happy to Help. 

[Ryan D.]

@Frank Patalano

For me the day job, & putting in time to finish this real estate course are what’s in the way. Plus, having no car right now.

[Frank Patalano]

Originally posted by @Ryan D.:

@Frank Patalano

For me the day job, & putting in time to finish this real estate course are what’s in the way. Plus, having no car right now.

 I agree that having no car sounds kind of tough. I don't know the Los Angeles Market. 

I worked a full-time job, 25 hours a week part time job, and had three kids while buying real estate.

Perhaps you can find a partner with wheels. You can look at and share opportunities.

I know people who are doing 100x more deals than me. They have quite a network and system.

[Remington Lyman]

@Steven Wahl 21 is when I started investing in Columbus, Ohio. I know people who have started earlier. The sooner you start the better off you will be

[Frank Patalano]

Originally posted by @Remington Lyman:

@Steven Wahl 21 is when I started investing in Columbus, Ohio. I know people who have started earlier. The sooner you start the better off you will be

 Do you think that Columbus is a little high right now? I had a partner fly out there to look at properties around OSU but he came back very disappointed because of how hot the market is. He is an alum of Ohio State.

[Remington Lyman]

@Frank Patalano Yes Columbus is hot right now because of the job and population growth. You can find better cap rates elsewhere. Cap rates are not everything though. People invest in Columbus for the long-term outlook of the area. I do not see our city going anywhere but up. The demographics are there and we have room to spread out instead of having to go up. Our flat land is a developer's dream.

Unfortunately, a lot of investors get scared off because our deals do not fit into their check boxes.

[Frank Patalano]

Originally posted by @Remington Lyman:

@Frank Patalano Yes Columbus is hot right now because of the job and population growth. You can find better cap rates elsewhere. Cap rates are not everything though. People invest in Columbus for the long-term outlook of the area. I do not see our city going anywhere but up. The demographics are there and we have room to spread out instead of having to go up. Our flat land is a developer's dream.

Unfortunately, a lot of investors get scared off because our deals do not fit into their check boxes.

What strategy are you focused on right now? Buy and hold, fix and flip? They do AirBnb in Columbus?

[Remington Lyman]

@Frank Patalano primarily buy and hold. My buddy does Airbnb but I have not started doing any of those yet. I probably should

[Carlos Heiny]

Any advice in getting started in vacation rental arbitrage? I’m in the Indianapolis area and am looking into Airbnb. Should I stay away? Any advice would be much appreciated!

[Cody Boatright]

@Frank Patalano nice question!

-Sept 10 came across bigger pockets podcast.

-ordered every book I could off the site.

-working on fourth book.

-went to get a loan. 0 credit score. Opened credit card and up over 720 now.

-pre approved now.

-in process to refinance current house/commercial property we live at.

-rented out parking lot to neighboring business. FIRST RENTAL I DIDN’T KNOW I HAD!!!

-I have little to no cash. hoping refi takes care of that.

-found a couple off market deals just holding for results of refi.

Biggest hurdle might be that for last 14 years I feel I have struggled financially owning a lawncare and landscaping business. Made some bad decisions. I DO NOT WANT TO PUT MY FAMILY IN A BIND AGAIN.

The good- I’ve learned some incredible lessons in business. Better and more relaxed under stress. Feel my drive to make this work is greater than it ever has been. My family is 100% on board. I’ve been looking for change out of lawn and landscape for over 8 years. This is the next step.

I’m making strides in a short time. Feeling good with the direction. Getting nervous because the purchase and management phase is around the corner!!!

[Gina Daggett]

@Frank Patalano just where to begin Frank. Good credit but my debt to ratio on the end is somewhat over the limit for the lender. Told I needs to put away 15,000.00 and then I can start my dream of investing. Then some mentors want money in order to even give advice. So I’ve just been studying and listening to podcast to keep my self positive but I want and need to make it happen. So a little discourage.

[Martin Vehlow]

What a helpful thread! So much good stuff!

[Frank Patalano]

Originally posted by @Carlos Heiny:

Any advice in getting started in vacation rental arbitrage? I’m in the Indianapolis area and am looking into Airbnb. Should I stay away? Any advice would be much appreciated!

 Sound like a great plan. Just be careful with future regulation. Buy with the concept of breaking even or cashflowing in a standard way in case they outlaw AirBnb.

[Frank Patalano]

Originally posted by @Cody Boatright:

@Frank Patalano nice question!

-Sept 10 came across bigger pockets podcast.

-ordered every book I could off the site.

-working on fourth book.

-went to get a loan. 0 credit score. Opened credit card and up over 720 now.

-pre approved now.

-in process to refinance current house/commercial property we live at.

-rented out parking lot to neighboring business. FIRST RENTAL I DIDN’T KNOW I HAD!!!

-I have little to no cash. hoping refi takes care of that.

-found a couple off market deals just holding for results of refi.

Biggest hurdle might be that for last 14 years I feel I have struggled financially owning a lawncare and landscaping business. Made some bad decisions. I DO NOT WANT TO PUT MY FAMILY IN A BIND AGAIN.

The good- I’ve learned some incredible lessons in business. Better and more relaxed under stress. Feel my drive to make this work is greater than it ever has been. My family is 100% on board. I’ve been looking for change out of lawn and landscape for over 8 years. This is the next step.

I’m making strides in a short time. Feeling good with the direction. Getting nervous because the purchase and management phase is around the corner!!!

 Nice Job. I love the parking lot story. Keep going.

Frank