Would like to get out of analysis-paralysis & START

Question

I am fairly new to the Real Estate Investing business. I say this because about 10 years ago I purchased a single family property with a 80,80,70 finance deal (not sure that even makes sense anymore) and the rest was from a private investor. I rehabbed the property and sold it about 3 months making a nice little profit of about $3k after paying off all debt including the investor. However after that the market was really tough and I could not find any properties and therefore my situation forced me to move away from Real Estate. However I am now in North Carolina, just north of Charlotte and am very motivated to get back (and stay) in Real Estate. My goal is to buy single family properties, rehab them and then rent them. My interest is in building a portfolio of properties for cash flow. That being said, I am really having a struggle in figuring out where to start. Do I look for properties 1st, obtain financing 1st, network or work all at once. I am not afraid to work, and I am real good with numbers but just seem to be stuck perhaps in analysis-paralysis. Any thoughts or comments would be much appreciated.

Gino Barbaro · Answer

@Ronald Logan

Hi Ronald

Find a mentor who has done what you are attempting to do and ask him/her how they started.  You have a great idea on buying and holding for cash flow.  Just research the area to see if it is feasible.  I know in NY where I live, I can't buy SFH and cash flow.

Look into multi family properties also.  Don't have the limiting belief that they are too big and you can't do it.  You an always start out with duplexes, ti plexes or quads.

The real way to get out of being stuck is to identify "WHY" you want to get back into real estate.  If your "WHY" is strong enough, I know you will figure out your "HOW".

I just recorded a podcast on this very topic.  I was stuck about 4 years ago, and did not know where to start.  I finally realized I needed to create passive income, and that my current business was only a "job".  I am posting it on my site this Friday.  I think it would really help you.

I was able to jump in 3 years ago, and now with my partners we own 675 units.  I needed a reason to jump in and I was fortunate to partner with 2 other guys who are terrific.  Maybe seeking a partner is a good way to jump in.  It will hold you accountable to someone else.

As far as where to begin, you need to be able to analyze a property quickly, accurately and based on actual numbers.  I shoot for 10% cash on cash, and 8 caps for larger multis (In my market).

Secondly, get out there and start networking with banks, real estate agents and other professionals.  Let them know you are in the market and ready to buy.  That first deal will create the momentum and will give you the credibility.

Hope that helps

Gino

Account Closed · Answer

You seem to have a base knowledge that is necessary to get started, having done it before.

My recommendation is to get out of your own way. Spend your time doing things that will be profitable in the long run. My recommendation, since you asked, is to get out and start looking at properties immediately. Make it your goal to put out at least three purchase offers in the next week. If you don't have a real estate agent that you're working with, start calling today. That is something very simple that you can do immediately. Let them know what it is that you're looking for. Then, get in your car and start looking.

Yes, it will probably be scary. But, making offers, and ultimately getting one or two accepted, is the way to freedom.

Account Closed · Answer

Well definitely search for properties.  If you don't do that, then nothing else really matters.  How can you finance a property in your current situation?  What kind of properties are you looking for specifically?  What are your skills in regards to homes?  How much do you have to cash flow per month per property?

It is my opinion that you have to have faith that things will fall into place if you do the work.  Do the first thing and the next action will be revealed.  If you wait until you are prepared, you will never start.

Ronald Logan · Answer

Hi Folks- Thank you so much for your responses. I really appreciate your comments/advice. As I indicated and now realize, I am going to look for properties asap as well as begin to Network. In addition I am going to seek a mentor and perhaps a partner.

Thank you all. I hope we cross paths again real soon.

Ronald

Don Harris · Answer

@Ronald Loganif you  want accountability for action then I recommend you attend the "hobby millionaire " meetup on the north side every Tuesday evening at Mimi's Cafe. Find it on meetup.com.

Alex Franks · Answer

Ronald that would have been about the time everything crashed. 2006 was still good . 2007 Sh#%t hit the fan. Don't worry about yesterday , worry about today. Get to as many local meetings as  possible. Listen to the folks who are doing the deals.  If your stuck on numbers, send me what have. I don't mind looking at them. Giving you a  honest opinion, along with feed back.This sat get out their and go look at houses.

Still some thing, I enjoy is driving and looking at properties. Right not my focus is apartment building so I try to pick out a few to just visit on the weekends.

Hope this Helps

Alex

Would like to get out of analysis-paralysis & START

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