All Forum Posts by: Allan Tualla

I totally get it. A couple of things that helped me get "over the hump."

1. I house hacked my first two properties. This allowed me to have a roof over my head while bringing in income. It reduces the risk.

2. I partnered up with someone who had more experience. We discussed our goals, our business philosophy, and we split the risk.

3. Look in markets that might be in a lower price point. For example, being in Los Angeles, I did my first BRRRR in Birmingham, AL. I could handle the risk of carrying costs, and made sure the numbers made sense.

4. Understand that real estate is a long term gain. One of my favorite phrases is "it is okay to stumble, as long as you stumble forward." You are going to make mistakes, and that's okay. It is the education that helps you along the way, as well as having a great team backing you up.

Quote from @Allan Tualla:

@Scott Scoville

This helps a lot! thank you so much for the information! ill definitely keep this in mind when looking around. would you say that if i were to look around the Lodi area (10 mins outside of north stockton) that i should go for class A neighborhoods as well? Looking at multifamily houses around stockton in class A neighborhoods are few and far between.

No, Lodi is a totally different market. Class B & C multis are solid in Lodi. Unfortunately there is not a lot of them available. Best of luck.

@Allan Tualla

First, I became determined. I made up my mind that I was going to buy a cash flowing property.  I focused on a duplex or house hacking. I then evaluated deals daily, using the BiggerPockets rental calculator. I became very knowledge about the area I wanted to buy in. I knew off the top my mind what individual room rented for, how much water/trash cost and taxes. I got my lending and down payment lined up. I did all this so that the day a deal came up I would be ready to place an offer. My final push was that I became determined. 

I'm right there with you! we'll get there buddy I know we will. 

@Allan Tualla

That first real estate investment is without a doubt, the hardest one since it requires a leap of faith. If you feel like you are at the education level required to take that plunge, then sooner or later you will simply need to jump in. One strategy I used that helped ease some of the stress for me on my first property was selecting a property where I knew I would be able to pay the mortgage costs even if we were not getting rented. By ensuring I had the financial means to pay this expense in a worst case scenario, it allowed me to dip into real estate investing while limiting the stress I would be placing on myself if things did not go smoothly. Once I took this first step, I became far more comfortable with the process and was able to apply everything I had been reading and researching prior while at the same time, learned far more from actually taking that plunge. 

If you have cash for the DP, and/or money for a rehab, financial stability, and a strategy you already have 75% of the pieces. What you need a network of professionals and an agent to show you properties. 

Start walking properties that fit you're [buy box].

Don't waste your time on duds. If the numbers are way off don't waste an agents time. 

If you buy a property at (x) price maximize the outcome. Having some flexibility is huge. Maybe a cash-flow rental isn't going to plan. Buy it correctly so you can flip instead. 

Stick to your numbers and investing goals. Every property has a purpose. Every property needs an exit strategy. You can't predict the future but you can make educated assumptions about the market, neighborhood, and street. 

do you have cash for a down payment and reserves?

If I were to start over again, I would wholesale starting out. When you think you have a deal and you try to sell it to a season investor in the area who knows what they are doing, they will let you know if the property you are looking at is a real deal or not. Do a few of those, and you'll be confident when you find the right deal to pull the trigger on for yourself! 

Quote from @Allan Tualla:

@Joe Villeneuve

ahh ok, so thats new to me as Ive generally just focused on property. ill look more into that to get a greater understanding on how the market is. Any tips you could provide, it would be much appreciated!

-Allan

Remember.  Every property in a market is based on the market.  Analyze markets based on numbers with $$$ in front, not %%% behind.  The $$$$ is what defines the quality and usability of every market.
Also, always let the markets dictate the limits of your offers.  Never make offers based on what number would be required to get a property.  The numbers with dollar signs that set the maximum number of your offer comes from your plan...not the seller.  If someone else bids higher than your predetermined maximum offer, let the property go.  That same property will show up again right around the corner.  It will just have a different address, but it will be the same property.  Keep in mind you are an investor, not a collector of properties.