How long did it take you to get to your second deal?

6 Replies

Hi Guys,

Just wanted to ask if members would share how long it took to get to the second deal and what vehicle they used to make it happen?

I'm closing on my first deal on Monday and I'm already thinking about the next and wanted to get some ideas.

Has anyone closed on more than one deal in their first year of investing?

I want the success as well as horror stories on the topic.

Thanks BP!

Not sure specifically what kind of deals you're doing, but we do turn-key buy-and-holds and closed on our first two in the same month, actually. We just happened to have a windfall and were able to sign a second purchase agreement shortly after the first. I will say it was confusing trying to keep the properties straight--what was going on with the appraisals, rehabs, inspections, but it all worked out in the end. We used conventional mortgages which was super easy because our lender already had all our info so that part was really streamlined.

Good luck! :-)

@Walmsley Gedeon Yes, and they were both multi-family properties. I think the biggest thing I would emphasize is that it's good to get a relationship with a property manager going when there's only one property. See how responsive they are, if they address turnover quickly, if repairs look "expensive", etc. If you have a great working relationship it will make it that much easier to add subsequent properties while still remaining (largely) hands-off. The PM topics comes up a lot but it's something that can make or break a property. Well, maybe not "break", but it can turn what should/could be a semi-passive investment into something that's extremely active.

About twelve hours ... We closed our first two deals in the same week ... one by cash, the other with conventional financing.

I closed on my second deal less than two months after I bought my first property. My first was a four-unit purchased with FHA financing, which left me with enough cash to buy my second property from a distressed seller for all-cash and a quick closing. Good luck.

@Walmsley Gedeon - My plan is to close on a 2nd property within one year of purchasing my first (December 2016). My first property is fully renovated and I just got a 12-month lease signed. I want to feel out the next 6 months of (hopefully!) steady cashflow and then go in on another investment (with financing).

I'm being rather conservative, but being new to this investment vehicle I don't want to burn my lifes savings.

Good Luck!

-Tyler

Thanks guys! My first deal is a 4fam in NJ. I used FHA 203k. I have some cash but not enough for me to jump on another property to quickly. I guess I really should focus on the renovations and getting it rented before another deal.

For this of you who didn't have the cash what vehicles did you use to leverage your new found situation?

Thanks again guys!