All Forum Posts by: Michael Carbonare

You described a classic case of Paralysis of Analysis.  Book smarts make dinner conversation, street smarts make money.  You're going to need to change your approach or you'll find yourself standing in the same place a year from now.  You know more than you think you do.  Now, lose the fear, loosen the shackles, and turn off the machines.  Call some homeowners, look at a few properties, make an offer.

I've been investing for 28 years.  It should be 31 years.  Why?  Because I wasted 3 years studying, talking, Bee-Essing about real estate.  Paralysis of Analysis.  It's a nasty virus and you've been infected.
Here's a quote from one of my favorite authors, Seth Godin:  The best way to get unstuck? Don't wait for the right answer and the golden path to present themselves. This is precisely why you're stuck. Starting without seeing the end is difficult, so we often wait until we see the end, scanning relentlessly for the right way, the best way and the perfect way. The way to get unstuck is to start down the wrong path, right now. Step by step, page by page, interaction by interaction. As you start moving, you can't help but improve, can't help but incrementally find yourself getting back toward your north star. You might not end up with perfect, but it's significantly more valuable than being stuck.

In other words, don’t let your fear of what could happen make nothing happen.

Hi, Martin.  There are many variables involved that will determine your best path to getting started.  Can you fill in some blanks?  What are your goals?  What are you thinking might be your starting strategy?  What about your current financial situation?  Do you have cash on hand?  Can you obtain financing?  The answer to these and likely a few other questions will help both yourself and anyone replying to your post.
For what it's worth, many new investors are drawn to wholesaling as their starting strategy.  It seems to be pushed as the best strategy for the new kid on the block.  I don't agree, unless you're good at consistently negotiating deals with sellers for .40 on the dollar.  If you're starting out with limited cash and experience, I would suggest taking a look at lease options.  Worked for me back when I was getting started in this business.

Hello, Andrea. Having dual citizenship has its advantages, so you are fortunate in this regard.  I also have dual citizenship, USA and Italy.  I was born in NYC.  My grandparents were from Naples and Ischia.  My wife and I get to Italy every chance we get, although this past year it hasn't been possible with this WuFlu BS.  We've discussed buying a property in Italy and living there part time and here in Florida.  Where have you settled in the US?

PS:  that pizza in my profile pic isn't up to Naples standards, but it was still pretty damn good.  Working on my pizzaiolo skills frequently.  Oh, and my wife speaks Italian and is always looking to work on her language skills.  Don't be surprised if she jumps in here wanting to talk, talk, talk. . .

Why would you assign the deal back to the homeowner?  You should be assigning the deal to a tenant/buyer.

@Corey Frank  I was backed into a corner.  I was recently married.  My wife came with a 5 year old. So now I'm a husband and, gasp, a father.  Goodbye swingin' single, tequila nights.  Adding to that was my decision to move.  Packed our stuff and across country we drove, from NY to NM.  Now I find myself breaking bad in good ol' Albuquerque.  Didn't know the city, didn't know the real estate market, didn't know a soul or a damn thing.  Sitting in our rented house, a 5 year old at my feet, my panic was real. The luxury of studying, thinking, and dreaming about investing in houses was no longer.  That was a three year sabbatical I could no longer afford.  Forced to take action and break out of my comfort zone I stumbled into an article in a now defunct real estate magazine about something called Rent-To-Own.  I'd never heard of it but the author, (who became my mentor), pushed all my buttons.  Long story short, I blocked out all the noise and fog and settled in on this one strategy.  Stumbled a bit, but ultimately learned what the hell I needed to do.  That was 28 years and about 700 deals ago.
PS:  that 5 year old brat is now a reporter for ABC News.  I must have done something right. . .although my wife will argue otherwise.  LOL
Bottom line:  don't be like, Mike.  Get off the machines and get into the mix.  You know more than you realize.

What stops people from starting?  This place, along with YouTube videos, various podcasts, Facebook groups, etc.  It's called Paralysis of Analysis.

All of that listening, reading, analyzing, lunch dates, etc takes you down the path to Paralysis of Analysis, a virus worse than this WuFlu scamdemic. Book smarts make interesting conversations; street smarts make money.  Market, talk to homeowners, break out of your comfort zone.  You'll find yourself infinitely further ahead than the "I've watched 310 podcasts so far. . ." crowd.  

The typical setup with a Rent To Own requires a lease agreement between you as the homeowner and the tenant/buyer, and a separate option to purchase agreement.  The terms are spelled out, of course, specifying the length of the lease option, the monthly rent, the option price, and the nonrefundable option money you receive upfront.  It's more involved than that, of course, but that is a simplified explanation.  You can also set the deal up as a sandwich lease wherein you lease the property initially rather than purchasing it, and you then sublet it to a tenant/buyer.  Your meat in the deal comes from the spread between the terms you negotiated with the homeowner and the terms you negotiated with the tenant/buyer.

@Ryan A Rodriguez-Wiggins  I've done hundreds of lease options over my 28 years in real estate.  Done correctly they can be a safe strategy with minimal cash requirements.  But the bigger issue in this deal, at least for me, is that you are involving business and family, often a recipe for disaster.  Should an unexpected financial issue arise, guess who will be at the bottom of the list to pay that month. . .good ol' cousin Ryan.