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?

[Raja Mohan]

@Frank Patalano I was always brought up to believe that cash was king and I became very cautious about purchases and always afraid of buyers remorse. That's what's stopping me

[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?

[Frank Patalano]

Originally posted by @Willie R. Hill Jr:

@Frank Patalano after considering the question and looking at myself, what I see that has held me back is the fear of “what if” and that is extremely disappointing!

 Fear of the unknown is super important. Sometimes we assign a higher risk to things even if they are not likely to happen. For example. I've never received a phone call about a clogged toilet. But that is one of the main things that I always hear new investors worrying about. Even if it was going to happen you put systems in place to plan for that scenario.

[Frank Patalano]

Originally posted by @Clifton Morgan:

I have serious analysis paralysis. Literally at the brink of purchasing this property in Tx, but after doing the numbers I noticed the taxes are so high there. Also noticed the market is super neutral and afraid that if I ever wanted to cash out it would be extremely difficult. Luckily it already has a paying tenant but the cash flow would only be about 200-300/month. Really just interested in the property due to the high equity currently (buying under market) but overall the mtg is high and scared of potential long-term vacancies down the road with potential recession looming...mtg expenses too high for that. See what I mean about the paralysis lol.

 If it is a decent property, why would there be long-term vacancies? If you're buying the property was such a high equity, can't you flip it or wholesale it instead?

what do you mean when you say super neutral?

my suggestion is to take the best deal you can find. If something is Cash flowing positive a couple hundred dollars a month, go for it. You will learn so much more as an owner then as someone who plays with numbers.

[Frank Patalano]

Originally posted by @Valentina G.:

Good question...I live in Quincy,MA where the real estate is hot and the prices have gotten high. Everything is bought all cash!! Anyways, I am debating in buying a single family and renting out my townhouse since is ideal commute location. Or getting a duplex or triplex and staying where I am. It has been dream of mine to have the single family but I would like to have some other income besides my full time job.

Holding my dream of the single family or go with the logistics ;)

 I know people investing in Quincy. It's a tough area right now with a low cap rate. I own single families and multi families within an hour of Quincy. A single family would be a safer route but expect a lower return. Multis tend to generate more Cashflow but have more upkeep.

[AJ Santana]

@Frank Patalano I'm brand spanking new to REI and feel as if I figured out my niche to start in and that's wholesaling. I'm fee stuck looking for a mentor, a course, or a business partner to do a JV deal with. I believe that would be the best way to get started but I'm having trouble finding those resources.

[Frank Patalano]

Originally posted by @Alex Kukin:

@Frank Patalano

The uncertainty...

I keep listening to the webinars, learning various ways to invest in real estate, to produce cash flow and grow equity, but one major thing that’s holding me back is the uncertainty.

What if I get “screwed by the contractors”, “what if I don’t find tenants for too long and have to incur losses which won’t be possible to recuperate”, “what if the tenants don’t pay and trash the house”, “what other hidden icebergs that I don’t know about will surface once I start investing”?

Furthermore, do I start with a property that needs heavy fixing (but comes at a lower price) or do I try to buy the property with tenant contracts in place so I have some breathing room after close and start to get experience managing established tenants before I have to look for new ones?

Lastly, start with a partner (if so, how do I find them and vet them), or go solo?

Any feedback and thoughts are appreciated!!!

Btw this is my first post at BP!

 Hi Alex, I'm in Baltimore for a real estate event this weekend. Is there risk to investing in real estate? Yes. But risk factors just need to be figured in to the cost of doing business. What is the chance of there being an earthquake in Maryland? Super low, but it could happen. What's the chance of a tenant not paying? Still low-risk but it could happen. What is the chance of me being hit by a car crossing the street today? Low-risk. But it could happen. There is nothing wrong with educating yourself.

Did you ride a bike when you were a kid? Can you imagine if you thought of every possible thing that could happen when you were riding that bike? You would have never got on it. And when you fell off the first time. Did you get back up?

if you are handy or have connections with contractors, by the biggest disaster of a house that you can find in a decent neighborhood. If not, just fine 1 that you think has the best cash flow.

I have found all my partners through my local Real Estate Group. You should be networking at least once a week.

get out there and find the best deal you can. You will understand so much more once you own that first property. I don't know if I've ever heard a real estate investor say I wish I had got into investing later. Usually you hear oh, I wish I had started sooner.

[Frank Patalano]

Originally posted by @Justin Carter:

@Frank Patalano I just don’t know where to start!! Or what properties make the most sense.

 Figure out what your strengths are. If you have money there are certain strategies that are better. If you have time there other strategies. Keep reading books and listening to podcasts until you pick a strategy that you think might work for you. Don't forget networking.

[Frank Patalano]

Originally posted by @Scott Harper:

I need some opinions about the state of 🇺🇸Illinois🇺🇸

Pros: ?

Cons: ?

 Perhaps there is someone that will see this post and we'll know more about Illinois. I've never invested there. If you live in state, the best way is to go to local real estate meetings.

[Frank Patalano]

Originally posted by @Joseph T long:

@Frank Patalano a lot of debt and having savings for a down payment but in due time I will get there

 If real estate investing really is your dream, then you will find creative ways to get there faster. I sacrificed for years in order to generate cash. On the flip side there are plenty of people with no money who are still doing well with real estate. They just picked a strategy that involves little or no money.

[Rodney Robinson]

We finished our first rehab and rental a few months ago. It went very well. Will soon be collecting our second month of rent. For me, what is holding me back is confidence that we can continue with a proven system (finding and managing properties) that works for our family responsibilities (my wife and I have 4 children under the age of 6), which I believe is subject to a matter of time. I am sure that we will refine our system with more experience and I believe that the confidence that we will find a rhythm that works for us. Second to that, I resonate with the usual newbie concerns, funding and experience. All hurdles will be overcome!

[Frank Patalano]

Originally posted by @Raja Mohan:

@Frank Patalano I was always brought up to believe that cash was king and I became very cautious about purchases and always afraid of buyers remorse. That's what's stopping me

 Perhaps you can get together with one or two partners and share the risk which also lowers the amount of money that you have to put in. I'm not fully gung-ho that cash is King. I'm a bigger fan of Cashflow. What type of return are you getting now on that money?

[Frank Patalano]

Originally posted by @AJ Santana:

@Frank Patalano I'm brand spanking new to REI and feel as if I figured out my niche to start in and that's wholesaling. I'm fee stuck looking for a mentor, a course, or a business partner to do a JV deal with. I believe that would be the best way to get started but I'm having trouble finding those resources.

 I'm not sure what Market you're in. One thing that I would definitely do is start networking. Relationships are a main part of this business. I love the wholesalers that I use. It allows me to give them a small piece and I don't have to get out there hustling neighborhoods. Mentors are okay but you may have to pay a wholesaler from a different Market to train you because the locals don't want to train their competition. There are online courses I can't recommend a specific one. Keep educating yourself. With wholesaling the barrier to entry is low. You can get out there and start marketing. Mailers, bandit signs, Etc. Some people get out there and do it and learn as they go. If you're not at a local Meetup once a week then you are doing yourself a disservice. That is where you will find cash buyers, other wholesalers, and learn extra tips and tricks.

[Frank Patalano]

Originally posted by @Rodney Robinson:

We finished our first rehab and rental a few months ago. It went very well. Will soon be collecting our second month of rent. For me, what is holding me back is confidence that we can continue with a proven system (finding and managing properties) that works for our family responsibilities (my wife and I have 4 children under the age of 6), which I believe is subject to a matter of time. I am sure that we will refine our system with more experience and I believe that the confidence that we will find a rhythm that works for us. Second to that, I resonate with the usual newbie concerns, funding and experience. All hurdles will be overcome!

 Every deal is different and I have screwed up many times along the way as well. 

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

[Dwayne Saxton]

Hey Frank, I guess what’s holding me back is 3 things, Me, Myself and I. I’m currently living in New York City trying to get my first deal, and the prices of the homes here are a bit expensive. It’s quite intimidating, or at least I lead myself to believe that it is.

I see on average homes that cost anywhere from 400,000 & up. I tell myself that cash buyers aren’t looking to pay that much to invest in homes. It’s really all just a mind game for me, that’s what’s keeping me back!

[Stephen Kincaid]

@Frank Patalano

I am wanting to do a fix and flip, but it is my first one and I am having difficulty learning about how to finance it.

At he moment I am getting approved for an FHA loan but I'm not sure if that is the best route.

[Anthony Petrozzella]

@Frank Patalano

Lack of experience and uncertainty

[Jonathan Sitorus]

@Frank Patalano for me it's mostly uncertainty. And it's uncertainty in a couple of ways. I've been in construction for the last 12 years and i just graduated college with a bachelor's degree in facility management. But I always knew that real estate investing is the way to go. So right now I am at a point in my life where i am in the middle of a career change from the job site to the office. But I am uncertain to which one I should try to focus on. When I get home from work I look at jobs in the field of my degree but then I end up looking at more properties and trying to educate myself more on REI. So I don't know right now which direction I want to go. Also I am uncertain if I should concentrate on cash flow or appreciation. I live in NY and I have family who want to invest in real estate with me me. So right now I don't know if I should concentrate on investing out of state for cash flow or buy and hold in NY and have cash flow and have appreciation. What do you think I should try to do??

[Andrew Pensch]

@Frank Patalano

Being self employees and making the mistake of writing off too many expenses. Now I don’t qualify for anything decent!

[Gibran Del Giudice]

@Frank Patalano money for now. I’ve spent the last two years playing with the stock market wasting money. Now I’m having a baby so I had to let that go. Currently saving money to invest in my first rental home or house hack.

[Chris Perry]

@Frank Patalano understanding exactly how to go about "learning my market" and analyzing deals in my market is it for me.

[Lassy G.]

@Jacob Gelinas so what made you pull the trigger this time. What made you take action : buy. And do you still have the feeling that you over payed?

[Erik Eckmann]

@Frank Patalano

No money. Still trying to save...

would love to go in on something with what little money I do have tiger started.

Was going to invest in FUNDRISE and DiversyFund but unsure if that’s the proper beginning.

[Dave Tad]

Originally posted by @Frank Patalano:

Originally posted by @Dave Tad:

Money holds me back!

 Why?

You need to be strong with time, experience, OR money. If you have one of those you can succeed. Find partners to fill in for what you are lacking.

 I grew up doing construction and residential electrical with my father, and been in the trade business my whole life so I suppose that can be the 'experience' you mentioned? Going to a learning event tomorrow with a seasoned RE agent and broker. Considering getting an inspector or appraisal license

[Jay Schultz]

So, for me there was a lot holding me back with my first property.  Timing, wife not on board (so I got a divorce...lol), a bit of fear, other investment tools, etc.  Now that I have three doors, I have become way more aware of the "buying right" idea.  And I have a new hurdle that is holding me back: How to really buy right?  This is leading me down a number of rabbit holes.  And, is frustrating.