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]

Originally posted by @Austin Mielczarek:

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! 

 Awesome. Congratulations. The road to success by taking action.

[Jason James]

@Jacob Gelinas definitely analysis paralysis and trying to find the perfect deal for a house hack.

[Danielle Levins]

@Frank Patalano thank you for sharing, I will indeed try to implement this going forward.

[Kimberly Fisher]

@Frank Patalano

On March 21, 2019 you 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.”

I think that what’s holding me back is that I am hoping to find someone like you (I think), who helps new investors buy their first property. Is that a thing? Are there investment experts who will help a newbie go over numbers and work out pros and cons? Are there honest coaches out there to help train others?

[Frank Patalano]

Originally posted by @Kimberly Fisher:

@Frank Patalano

On March 21, 2019 you 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.”

I think that what’s holding me back is that I am hoping to find someone like you (I think), who helps new investors buy their first property. Is that a thing? Are there investment experts who will help a newbie go over numbers and work out pros and cons? Are there honest coaches out there to help train others?

 Are there coaches out there? Yes. Are there honest and quality coaches out there? Yes but they may not advertise as much. My best suggestion to you is that you go to your local reia meetings. After a couple of meetings you'll find out who some of the experienced people are. There is nothing wrong with paying for coaching. Just make sure that you are not over paying. A real Coach will charge something. Their time is valuable. Plus if you pay a little bit for it, you will take it more seriously. I actually have something free on how to find a mentor. DM me and I can send you the link.

[Nathan Oakes]

Frank..... I have been holding myself back from doing this because of old programming and conditioning. I take full responsibility and I am willing to do whatever it takes. I am back and I am ready to move forward..... 

[Frank Patalano]

Originally posted by @Nathan Oakes:

Frank..... I have been holding myself back from doing this because of old programming and conditioning. I take full responsibility and I am willing to do whatever it takes. I am back and I am ready to move forward..... 

 I understand. I was personally spoiled because of all of the low prices that I was buying at. Now those numbers are gone so even I freeze up once in a while.

[Spencer Herrick]

@Frank Patalano

Uncertainty finding the best formula to calculate ROI.

[Frank Patalano]

Originally posted by @Spencer Herrick:

@Frank Patalano

Uncertainty finding the best formula to calculate ROI.

 There are plenty of different formulas out there. Which ones are you using now?

Basically I would keep practicing until you get comfortable with one.

What type of investing are you focused on? That will affect the formula that you are choosing.

[Spencer Herrick]

@Frank patalano 
I have up until now been using the Bigger pockets "4 Square method" to determine ROI in rental income properties. However, I seem to question whether or not property taxes should be listed on the "Expense" quadrant in addition to the monthly mortgage if it is already being escrowed from the mortgage payment.

[Peter Grange]

@ Frank Patalano  My wife and I recently relocated to Pascoag from the Clearwater area. There we did a couple fix and flips, as well as a live in rehab that is now a rental. What's holding us back is being new to the area and understanding the uniqueness of this market in regards to prices, available properties, which properties make sense in this market, costs of rehab projects, good vs. questionable areas, etc; as well as where the local meetings are so we can meet local investors to possibly partner with for our 1st few deals here as we get aquainted to the area. Our focus is buy and hold and based on the area MF seems to make the most sense.

[Frank Patalano]

Originally posted by @Spencer Herrick:

@Frank patalano 
I have up until now been using the Bigger pockets "4 Square method" to determine ROI in rental income properties. However, I seem to question whether or not property taxes should be listed on the "Expense" quadrant in addition to the monthly mortgage if it is already being escrowed from the mortgage payment.

I have never used the 4 square method. I wouldn't put it into both.

We have an excel spread sheet that was made years ago.

[Frank Patalano]

Originally posted by @Peter Grange:

@ Frank Patalano  My wife and I recently relocated to Pascoag from the Clearwater area. There we did a couple fix and flips, as well as a live in rehab that is now a rental. What's holding us back is being new to the area and understanding the uniqueness of this market in regards to prices, available properties, which properties make sense in this market, costs of rehab projects, good vs. questionable areas, etc; as well as where the local meetings are so we can meet local investors to possibly partner with for our 1st few deals here as we get aquainted to the area. Our focus is buy and hold and based on the area MF seems to make the most sense.

 Hi. That's an easy one.

RI is my market. The best REIA around is the Rhode Island Real Estate Investor's Group. DM me for more groups and some agents.

[Account Closed]

Knowing which community to start investing in. I'm going to grow a portfolio of historic homes / commercial spaces and creative spaces where numbers still make sense. Since it's out of my budget to invest in California - it's research hell until I can pin point exactly the geographical location that matches those needs. 

[Frank Patalano]

Originally posted by @Account Closed:

Knowing which community to start investing in. I'm going to grow a portfolio of historic homes / commercial spaces and creative spaces where numbers still make sense. Since it's out of my budget to invest in California - it's research hell until I can pin point exactly the geographical location that matches those needs. 

 Based on what you're looking for I would consider doing a search on cities with the oldest housing stock. Off the top of my head I would consider some of the coastal cities in the Carolinas. I would consider Boston too but the numbers are probably not much better than Los Angeles.

[Frank Patalano]

@Emma Powell What is holding you back right now in Real Estate?

[Emma Powell]

Originally posted by @Frank Patalano:

@Emma Powell What is holding you back right now in Real Estate?

I have some challenges like anyone else, but as far as what's holding me back? Nothing. I bought 5 properties with 8 units in my first year and have a 50-plex in SE Idaho set to close in a couple of weeks. Got some great mentors and partners, taking the bull by the horns full time.

The biggest difficulty for me to deal with is raising enough capital to do the deals I want: people talk about how deals are hard to find right now, but I've seen roughly 1 every month or two, at least small ones, that I would buy if I had the capital/partner network to take it down. I've found 2 big ones worth doing this past year, and was able to get 1; lost the other due to not enough ability to bring in the capital required.

[Frank Patalano]

Originally posted by @Emma Powell:

Originally posted by @Frank Patalano:

@Emma Powell What is holding you back right now in Real Estate?

I have some challenges like anyone else, but as far as what's holding me back? Nothing. I bought 5 properties with 8 units in my first year and have a 50-plex in SE Idaho set to close in a couple of weeks. Got some great mentors and partners, taking the bull by the horns full time.

The biggest difficulty for me to deal with is raising enough capital to do the deals I want: people talk about how deals are hard to find right now, but I've seen roughly 1 every month or two, at least small ones, that I would buy if I had the capital/partner network to take it down. I've found 2 big ones worth doing this past year, and was able to get 1; lost the other due to not enough ability to bring in the capital required.

 Emma, I unfortunately do not know the Utah Market at all. I have heard that it is hot. One of the things that I like to teach is the three-legged stool approach to investing. You need to be strong in one of the following to be successful at real estate. Strength number 1 is experience, strength number 2 is money, strength number 3 is time. If you can get strong in one of those areas then you can become successful at real estate. But wait there's more. We forgot the seat on the three-legged stool. The seat is networking. Successful networking in order to build a team of the other strengths is a key component. 

In regards to the Pocatello Idaho deal, I am sure that you will be able to pull it off. It is a 506c syndication so you just need to keep banging on the doors of high net worth individuals.

You have a decent three-person team. 

Person 1 has underwritten the deal and brings money but since he doesn't have a lot of proven experience in that type of property, some of his connections are overly cautious. 

Person 2 has also underwritten the opportunity. Even though her network is smaller, she has the time to manage the asset. She also knows the market the best. 

Person 3 has a good amount of experience but doesn't know the market or asset that well. Still, he brings a brand new network into the equation and new life into the deal.

As you can see the partnership has the right skills. I just think that you have caught some unlucky breaks. I am sure that you will pull through. It sounds like a great opportunity.

[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. 

[Frank Patalano]

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. 

 Yes you do have focus. I'm not sure how you are pulling so much off. You must have a strong team in place. I hope to be involved in one of your future deals. You are killing it in syndications, especially in Houston and Dallas.

[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!

[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!

[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?

[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??

[Steven Wahl]

@Frank Patalano I’m only 21 years old , feel like I’m to young to do it , I am going to continue my research and keep working though