Finally Closed our First Deal!

Finally Closed our First Deal!

Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes

Finally Closed our First Deal!

It has been a little over two years since I stumbled across the BP Podcast and began the journey to purchase my first rental property, and while it took significantly longer than I originally expected it would, I am excited to say my three business partners and I officially closed on our first property today in Minneapolis, Minnesota!

So why did it take more than two years to close my first deal?

As I look back at the last two years there is no shortage of reasons or excuses I could come up with as to why it took this long for me to get my first deal done.  Everything from your classic case of analysis paralysis to fear of the unknown.  I consider myself to be analytical, something that I thought would be to my advantage as I looked to purchase my first rental property. I can build a spreadsheet with the best of them but like many people, I can also spend hours tweaking every line item, from rental income to vacancy rates, only to come to the same conclusion in the end…it might work.  I would worry that I might be missing some hidden costs or that I would not be able to get the desired rental rate.  Looking back on it now there were definitely a few deals that came across the table that I wish I would have jumped on but sometimes you need to learn the hard way.

So why did I finally close my first deal?

First and foremost, I found the right team of guys to work with.  We have a wide variety of backgrounds, everything from commercial lending, to working in the capital markets, to a having a real estate agent on the team.  However, and more importantly, we are all in alignment with what our end goal is and have a willingness and desire to work towards that goal together.  I could not be prouder of our execution once we found this property and I can’t wait to get our next.Secondly, I have to give credit to the BP Podcast for continuing to reinforce in me that real estate investing is truly something I want to do.

My advice to anyone sitting on the fence is to just go for it!You will never feel 100% comfortable going into your first deal, but trust yourself, trust your numbers, and treat it like one great learning experience.

One deal down, many more to come!

Always looking to connect with others in the MSP area to talk real estate!

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Investor · Minneapolis, MN · Member since 2014 · 743 posts · 927 votes
8y

There are deals, you just have to be diligent and move quickly. Just closed on a SFH in South Minneapolis in the Kingfield neighborhood that is 3 bed/2 baths. l bought it for $165,000 putting in a $35,000 renovation (new roof, new kitchen, refinish flooring, paint, several new doors, upgrade heating system) so I'll be all in at $200,000. It's already rented for $1800/month starting Sept 1st so I'll cash flow while waiting to sell after a year and a day to get long term capital gain status. ARV is $260-$275,000.

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  • Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    8y

    Congratulations @Account Closed!! The first one is always the toughest. Keep going! 

  • Houston · Member since 2018 · 21 posts · 39 votes
    8y

    My home city! Wonderful place and is only growing. I've been thinking of investing there as well even though I'm in Houston . It's continuing to grow and I wish you the best of luck!

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y

    @Dan Barli Thank you!  Yes, the first one is certainly the most difficult.  Hoping to get another one here now before year end.

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y

    @Jennifer Bailey I think the MSP area is one of the most underrated places in the United States.  One of the largest universities in the country, incredible healthcare and education system, and the second most fortune 500 companies headquartered in a metropolitan, second only to New York City, and a great standard of living.  If you can get over the cold it's a hard place to beat.

    Might be worth some more serious thought about investing back here.  Thanks for the kind wishes!

  • Houston · Member since 2018 · 21 posts · 39 votes
    8y

    Very true and on point! I miss it.. minus the winters. Definitely taking it into consideration as I continue to save for my 1st investment.

  • Investor · Northern Virginia · Member since 2017 · 159 posts · 59 votes
    8y

    Congrats!

  • Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
    8y

    👍👍👍

  • Investor · Milwaukee, WI · Member since 2015 · 130 posts · 60 votes
    8y

    Brenton, congrats! That's really awesome!

  • Rental Property Investor · Mc Kinney, TX · Member since 2016 · 45 posts · 22 votes
    8y
    @Brenton Braddock Congratulations!
  • Rental Property Investor · Buena Park, CA · Member since 2018 · 12 posts · 4 votes
    8y

    Brenton! 

    Congrats! 

    I’ve been hanging on that fence for the last three months and itching so badly for the first deal. Just how you mentioned, “it might work” mindset is very hard to break through. I already passed on few potentially a good dea, too. 

    Hopefully I can close one soon too! 

    Congrats to you! 

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 137 posts · 80 votes
    8y
    @Brenton Braddock congrats! Now that you have one under your belt. Is the next one in the same market? What did you buy? A SFH or MFH?
  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    Congratulations to you and your team! Love Minneapolis area. Lived there for 8 years. So many people talk about investing in real estate and never do it. You're there! Tell us about your deal. Always love hearing about the deals people make. 

  • Jason JamesPro Member
    Rental Property Investor · Hillsboro, OR · Member since 2018 · 117 posts · 64 votes
    8y
    @Brenton Braddock congratulations man!! Looking forward to seeing your continued success on BP.
  • Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Account Closed:

    Finally Closed our First Deal!

    It has been a little over two years since I stumbled across the BP Podcast and began the journey to purchase my first rental property, and while it took significantly longer than I originally expected it would, I am excited to say my three business partners and I officially closed on our first property today in Minneapolis, Minnesota!

    So why did it take more than two years to close my first deal?

    As I look back at the last two years there is no shortage of reasons or excuses I could come up with as to why it took this long for me to get my first deal done.  Everything from your classic case of analysis paralysis to fear of the unknown.  I consider myself to be analytical, something that I thought would be to my advantage as I looked to purchase my first rental property. I can build a spreadsheet with the best of them but like many people, I can also spend hours tweaking every line item, from rental income to vacancy rates, only to come to the same conclusion in the end…it might work.  I would worry that I might be missing some hidden costs or that I would not be able to get the desired rental rate.  Looking back on it now there were definitely a few deals that came across the table that I wish I would have jumped on but sometimes you need to learn the hard way.

    So why did I finally close my first deal?

    First and foremost, I found the right team of guys to work with.  We have a wide variety of backgrounds, everything from commercial lending, to working in the capital markets, to a having a real estate agent on the team.  However, and more importantly, we are all in alignment with what our end goal is and have a willingness and desire to work towards that goal together.  I could not be prouder of our execution once we found this property and I can’t wait to get our next.Secondly, I have to give credit to the BP Podcast for continuing to reinforce in me that real estate investing is truly something I want to do.

    My advice to anyone sitting on the fence is to just go for it!You will never feel 100% comfortable going into your first deal, but trust yourself, trust your numbers, and treat it like one great learning experience.

    One deal down, many more to come!

    Always looking to connect with others in the MSP area to talk real estate!

    Congrats! The first deal is always the hardest. 

    It is commendable that you took action and you acknowledged what held you back. You're going to crush it in the next few years. 

    Looking forward to hearing more about your success. 

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Brenton Braddock What type of deal was it? How did you get the lending to work with 4 people? Was it commercial lending?
  • Investor · Atlanta, GA · Member since 2015 · 139 posts · 98 votes
    8y

    Great job. Congrats!

  • Investor · Excelsior, MN · Member since 2017 · 85 posts · 37 votes
    8y

    Congrats!!  I know the MSP market has been very competitive and has scared quite a few people away/put them in a holding pattern.  There are still deals to be had but it takes some homework and persistence. 

    Let the snowball effect begin haha

  • Specialist · Akron, OH · Member since 2018 · 11 posts · 6 votes
    8y

    Congratulations !!

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y
    Originally posted by @Tony Mai:
    @Brenton Braddock congrats! Now that you have one under your belt. Is the next one in the same market? What did you buy? A SFH or MFH?

     Thanks @Tony Mai!  Ideally, the next one will be in the MSP market.  We actually ended up buying a condo just a few minutes outside of downtown Minneapolis.  It struck the perfect balance of being affordable yet generates great cash flow.  Ideally we will transition of MFH as soon as possible but there is what we believe to be a good niche in the condo/townhome market here.  At the end of the day though it comes down to finding the right deal.

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y
    Originally posted by @Account Closed:

    Congrats!!  I know the MSP market has been very competitive and has scared quite a few people away/put them in a holding pattern.  There are still deals to be had but it takes some homework and persistence. 

    Let the snowball effect begin haha

    Thanks Account Closed! Yes, with all the apartments going up around here it has definitely made people in the market here nervous.  Just need to really do your homework and understand the various sub-markets.

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y

    Thank @Omar Khan for the words on encouragement!

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y
    Originally posted by @Caleb Heimsoth:
    @Brenton Braddock

    What type of deal was it? How did you get the lending to work with 4 people? Was it commercial lending?

     It was a condo just outside of Minneapolis.  We utilized a commercial loan and put 20% down.  25 year amort, 10 year fixed rate.

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 37 posts · 35 votes
    8y

    Thank you @Stacey Paulin and @Trina Butler!!!

  • Jensen Beach, FL · Member since 2018 · 5 posts · 1 vote
    8y

     Nice to see you made good on your first deal.

     My wife and I are looking to learn as we look for our first deal. 

  • Specialist · Louisville, KY · Member since 2017 · 166 posts · 154 votes
    8y
    @Brenton Braddock. Congrats! Please share updates with how everything goes.
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