Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 4 months ago, 08/19/2024

User Stats

1,992
Posts
1,439
Votes
Frank Patalano
Pro Member
  • Rental Property Investor
  • East Providence, RI
1,439
Votes |
1,992
Posts

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
  • User Stats

    157
    Posts
    50
    Votes
    Courtney Rollins
    • Wholesaler
    • Durham, NC
    50
    Votes |
    157
    Posts
    Courtney Rollins
    • Wholesaler
    • Durham, NC
    Replied

    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 @Courtney Rollins:

     What persuaded you to take the risk in Real Estate investing?

  • Frank Patalano
  • NREIG  logo
    NREIG
    |
    Sponsored
    Customizable insurance coverage with a program that’s easy to use Add, edit, and remove properties from your account any time with no minimum-earned premiums.

    User Stats

    18
    Posts
    5
    Votes
    Dominic Battaglia
    • Toronto ON
    5
    Votes |
    18
    Posts
    Dominic Battaglia
    • Toronto ON
    Replied

    @Frank Patalano

    I have been reading up on wholesaling and private money recently. I am a bit worried on getting something too distressed since I don't know too much about renovations. I was looking for something with minimal work, paint, flooring etc. I can probably get a better deal with the BRRRR strategy, but if I was to go down that route I would want an experienced partner to work with so I can learn from them as well. Starting smaller with less risk will bring less return, but it will allow me to learn with less headaches I think

    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 @Dominic Battaglia:

    @Frank Patalano

    I have been reading up on wholesaling and private money recently. I am a bit worried on getting something too distressed since I don't know too much about renovations. I was looking for something with minimal work, paint, flooring etc. I can probably get a better deal with the BRRRR strategy, but if I was to go down that route I would want an experienced partner to work with so I can learn from them as well. Starting smaller with less risk will bring less return, but it will allow me to learn with less headaches I think

     That is a great strategy.  Find a partner who has some skills in construction. Even if he isn't doing the work he might have a better idea of what to do.

  • Frank Patalano
  • User Stats

    3
    Posts
    0
    Votes
    Thomas Colvin
    • Rental Property Investor
    • Ponca City, OK
    0
    Votes |
    3
    Posts
    Thomas Colvin
    • Rental Property Investor
    • Ponca City, OK
    Replied

    @Frank Patalano

    I’ve have only spoke with one hard money lender here in Oklahoma, and he was wanting no less than a 700 credit score.

    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 @Thomas Colvin:

    @Frank Patalano

    I’ve have only spoke with one hard money lender here in Oklahoma, and he was wanting no less than a 700 credit score.

     Speak to 50 more. I've never had a hard money lender ask for my credit score. Get referrals from your local Real Estate investment Association.

  • Frank Patalano
  • User Stats

    20
    Posts
    8
    Votes
    Tori Applegate
    • Realtor
    • Woodstock, GA
    8
    Votes |
    20
    Posts
    Tori Applegate
    • Realtor
    • Woodstock, GA
    Replied

    No money. I have more time off to learn, but I feel that not having money to put down and an ok but not great credit score will be in my way. 

    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 @Tori Applegate:

    No money. I have more time off to learn, but I feel that not having money to put down and an ok but not great credit score will be in my way. 

     What you believe, you will achieve. 

    If you find a great deal others will want to partner with you. They will bring the money you will bring the time. 

  • Frank Patalano
  • User Stats

    20
    Posts
    8
    Votes
    Tori Applegate
    • Realtor
    • Woodstock, GA
    8
    Votes |
    20
    Posts
    Tori Applegate
    • Realtor
    • Woodstock, GA
    Replied

    @Frank Patalano

    That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

    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 @Tori Applegate:

    That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

     You can do well in real estate if you have 1 of 3 major strengths. Money, Knowledge, or Time. A 4th one could be Networking skills.

    I always find good partners through my local REIA. Everyone brings something to the table. You can be a part owner if you find the deal and work on managing the property.

  • Frank Patalano
  • User Stats

    108
    Posts
    43
    Votes
    Rob Terpilowski
    • Investor
    • Seattle, WA
    43
    Votes |
    108
    Posts
    Rob Terpilowski
    • Investor
    • Seattle, WA
    Replied
    Originally posted by @Thomas Colvin:

    @Frank Patalano

    I’ve have only spoke with one hard money lender here in Oklahoma, and he was wanting no less than a 700 credit score.

    Hey @Thomas Colvin,  who have you spoken with?  I may be able to refer you to some other lenders in Oklahoma City.

    User Stats

    20
    Posts
    8
    Votes
    Tori Applegate
    • Realtor
    • Woodstock, GA
    8
    Votes |
    20
    Posts
    Tori Applegate
    • Realtor
    • Woodstock, GA
    Replied
    Originally posted by @Frank Patalano:
    Originally posted by @Tori Applegate:

    That sounds awesome, but that is one thing dynamic-wise I’m unsure of. How do you find good partners and what would they want from me that would be valuable? Also, detail-wise how does that work? Can you still be the owner? Then, you just do most of the work involved and they get a return. This is the stuff I’d love to understand more because I feel I could be an asset. I love being challenged and learning.

     You can do well in real estate if you have 1 of 3 major strengths. Money, Knowledge, or Time. A 4th one could be Networking skills.

    I always find good partners through my local REIA. Everyone brings something to the table. You can be a part owner if you find the deal and work on managing the property.

    Ok. That all makes sense. I’ll check out REIAs in Atlanta. 

    Baselane logo
    Baselane
    |
    Sponsored
    BiggerPockets prefers Baselane The #1 REI platform that integrates banking, rent collection and bookkeeping to save time and money.

    User Stats

    3
    Posts
    0
    Votes
    Thomas Colvin
    • Rental Property Investor
    • Ponca City, OK
    0
    Votes |
    3
    Posts
    Thomas Colvin
    • Rental Property Investor
    • Ponca City, OK
    Replied

    @Frank Patalano

    RMAC Oklahoma City

    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 @Thomas Colvin:

    @Frank Patalano

    RMAC Oklahoma City

     RMAC?

  • Frank Patalano
  • User Stats

    1,266
    Posts
    692
    Votes
    Alyssa Dyer
    • Rental Property Investor
    • Oklahoma City, OK
    692
    Votes |
    1,266
    Posts
    Alyssa Dyer
    • Rental Property Investor
    • Oklahoma City, OK
    Replied

    @Thomas Colvin since you're local you could go with commercial lending! Do you have some properties undervalue or is this what you're looking to do for a first move? 

    User Stats

    33
    Posts
    9
    Votes
    Preston Humbard
    • Toa Baja, Puerto Rico
    9
    Votes |
    33
    Posts
    Preston Humbard
    • Toa Baja, Puerto Rico
    Replied

    I'm sitting on what I feel like is a good amount of money to find a property that works in my favor. But I cant seem to figure out how to make it work with the deals I'm finding. What's frustrating is I know a seasoned investor could take this same amount and probably obtain 2 or 3 properties no problem. Feeling lost and like I will have to wait much longer to find our next property than I want to.

    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 @Preston Humbard:

    I'm sitting on what I feel like is a good amount of money to find a property that works in my favor. But I cant seem to figure out how to make it work with the deals I'm finding. What's frustrating is I know a seasoned investor could take this same amount and probably obtain 2 or 3 properties no problem. Feeling lost and like I will have to wait much longer to find our next property than I want to.

     I don't know much about real estate in Puerto Rico but I do know that great deals are found through relationship building and hustle. 

    The top 2 things that I would do...

    Send out letters to distressed property owners.

    Join a local real estate investment club.

  • Frank Patalano
  • User Stats

    33
    Posts
    9
    Votes
    Preston Humbard
    • Toa Baja, Puerto Rico
    9
    Votes |
    33
    Posts
    Preston Humbard
    • Toa Baja, Puerto Rico
    Replied

    @Frank Patalano..We currently have our first place back state side in MN. I'm only here for a couple years and real estate down here feels like a whole new ball game. We thought about it for a bit and decided maybe for now try and stay in MN where we know and already have contacts. I just recently heard/read about the distressed properties and will have to look into that more. Thanks for the response! I think I'm just having the newbie blues. I'll continue to read and learn and hope that will help me tons!

    User Stats

    5
    Posts
    3
    Votes
    Matt Miller
    • Flipper/Rehabber
    • West Palm Beach, FL
    3
    Votes |
    5
    Posts
    Matt Miller
    • Flipper/Rehabber
    • West Palm Beach, FL
    Replied

    @Frank Patalano mine would have to be lack of capital. I have the knowledge and great team around me but we just don’t have the money.

    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 @Matt Miller:

    @Frank Patalano mine would have to be lack of capital. I have the knowledge and great team around me but we just don’t have the money.

    Go to your local Real Estate Group .  There are plenty of people with money but little time to search for deals . Sounds like a partnership waiting to happen. 

    We've done that a couple times in our own Market .  

  • Frank Patalano
  • User Stats

    1,266
    Posts
    692
    Votes
    Alyssa Dyer
    • Rental Property Investor
    • Oklahoma City, OK
    692
    Votes |
    1,266
    Posts
    Alyssa Dyer
    • Rental Property Investor
    • Oklahoma City, OK
    Replied

    @Preston Humbard what strategy do you like? Do you like to play in more exciting markets where appreciation might allow you to cash out after some time or do you like slow steady markets where you cash flow each month, don't appreciate rapidly and hold your value through any downturns in the economy?  

    User Stats

    33
    Posts
    9
    Votes
    Preston Humbard
    • Toa Baja, Puerto Rico
    9
    Votes |
    33
    Posts
    Preston Humbard
    • Toa Baja, Puerto Rico
    Replied

    @Alyssa Dyer...For right now we are leaning more towards something that cash flows, appreciates over time and will make it through any downturns. In the future we are certainly up for other strategies and we continue to research these as well just to learn as much as possible.

    PropStream logo
    PropStream
    |
    Sponsored
    Nationwide property data Use our robust, multi-sourced data to find off-market properties and close your next deal.

    User Stats

    72
    Posts
    21
    Votes
    Jason Boritz
    • Developer
    • Los Angeles, CA
    21
    Votes |
    72
    Posts
    Jason Boritz
    • Developer
    • Los Angeles, CA
    Replied

    @Frank Patalano

    Nothing

    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 @Jason Boritz:

    @Frank Patalano

    Nothing

     Better than me my friend.

  • Frank Patalano
  • User Stats

    3
    Posts
    1
    Votes
    Austin Mielczarek
    • Real Estate Broker
    • Indianapolis, IN
    1
    Votes |
    3
    Posts
    Austin Mielczarek
    • Real Estate Broker
    • Indianapolis, IN
    Replied
    Originally posted by @Frank Patalano:
    Originally posted by @Austin Mielczarek:

    As Ben Franklin said, “by failing to prepare, you are preparing to fail.”

    I plan for my first property to be a house hack 3 or 4 unit near downtown in one of the up and coming B class neighborhoods, will live in 1 unit and the other 2 or 3 will pay all costs plus hopefully a small amount of cash flow.

    1. Currently own a SFR in the suburbs as my primary residence. Best school district in my area, waiting for April/May to sell and get the largest return.

    2. Renovating my current SFR to convert a room into a bedroom, to try to get the largest return.

    3. Stacking more cash. Saving 40% of my income so that I will be able to hopefully buy 2 properties next year. Once the house hack is in place, I’ll be able to save 65% of my income + any cash flow, so I can put that to work.

    4. I need more practice analyzing and learning neighborhoods. I’ve been driving neighborhoods every weekend.

    To make sure my foundation is solid, it will be the best choice to wait 6 months.

     Not sure if you are doing all of these things at once or if you are making a choice. If it is all of them that is quite a list in your first year. 

    I love the househack idea but I wouldn't wait until April to list. 

    Going with quotes. A bird in hand is better than 2 in the bush.

    I felt compelled to let you know that your response inspired me to go for it. Listed my house, accepted an offer in 2 days, and just put an offer on a duplex. Fingers crossed!