Discouraged

[Jennifer S.]

Hello,

Within the last few weeks, I've found the drive to put my desire to create passive income in front of my fear of moving forward to become a real estate investor. I've gotten LOADS of great advice and suggestions from members here, as well as podcasts and real estate investment meetings I've attended. 

Earlier this month, I received a call from the benefits center of a former employer which houses a deferred vested pension I have. I was advised I'd be given an opportunity to withdraw a lump sum distribution from my pension, with which I immediately began to draw up various scenarios as to how I could use this money as a down payment to purchase my first rental property. I've also started working with a few realtors to look at a few properties, and even started looking into different business entities to hold my investment(s).

Well low and behold, I was just notified there was a mistake, and I not eligible to make this distribution. Aside from being obviously upset about the time I've wasted looking into properties, I'm much more aggravated and feeling discouraged because I have no other financial means of obtaining financing in order to move forward with the process. 

I'm not even sure what my next step should be. I've tried to obtain funding through hard money, but have been unsuccessful, and I'm next to certain that I wouldn't qualify for traditional funding. At this point, I'm not sure if this is just a road block which is supposed to divert me into another direction, or if this is a sign that I don't need to move forward at all. I'm confused.

[John Thedford]

Hello Jennifer: relax, sit back, and start looking at alternatives. Just because one door is closed only means you have to open a different one:) There is more than one way to invest. Owner financed houses. Lease with option to purchase (this gives you time to arrange financing). Private money from a family member. Win the lottery---NOT! Read Gallinelli's book on financial metrics...and he points that out:) Anyways, don't give up! You don't have to buy one today.....so set yourself up to accomplish this goal with a slightly different time horizon. You CAN make it happen if you don't give up....so keep your hopes high and keep working until you reach your goal. Best of luck!