The First Deal Mistake That Slows People Down

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The First Deal Mistake That Slows People Down

Frankie VozziBusiness Member
Member since 2025 · 346 posts · 86 votes

A lot of new investors spend months trying to find the “perfect” deal.

What I see:

  • Analysis paralysis
  • Waiting for perfect conditions
  • Missing good opportunities

The first deal usually isn’t perfect it just needs to work.

Did you wait too long on your first deal, or move quickly?

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  • Kamil Lysik
    Property Manager · Warsaw · Member since 2026 · 107 posts · 38 votes
    5mo

    This hits on something I see constantly — and I think the root cause is that most new investors don't have a clear filter for 'good enough.'

    Without a system, everything feels like it needs more analysis. So they keep analyzing — not because the deal is complex, but because they don't know when to stop.

    The investors I've seen move quickly on first deals weren't less careful. They just had a simple set of criteria that told them 'this passes, move forward' — and they trusted it.

    For me the turning point was flipping the question. Instead of asking 'is this a good deal?' I started asking 'is there a reason to reject this?' Much faster to answer.

    Did you find that having a clear set of go/no-go criteria helped you pull the trigger faster — or was it more about mindset than process?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5mo
    Quote from @Frankie Vozzi:

    A lot of new investors spend months trying to find the “perfect” deal.

    What I see:

    • Analysis paralysis
    • Waiting for perfect conditions
    • Missing good opportunities

    The first deal usually isn’t perfect it just needs to work.

    Did you wait too long on your first deal, or move quickly?

    As a note investor, I see a lot of new note investors never buy their first deal. Not because deals do not exist, but because they are chasing something that does not.

    Here is the pattern I see constantly. An investor finds a non-performing note with some hair on it. Maybe the borrower has been unresponsive, the property needs work, or the legal timeline is uncertain. They want a 50%+ return to compensate for that risk, which is unrealistic when the returns are typically 20%+. But then they apply that same return expectation to every deal, including the ones where the risk is actually quite manageable including performing loans where they want 15%....

    The result is they lowball everything, get rejected, and then tell me they cannot find a deal. The deals are there. Plenty of them. They just refuse to price risk accurately.

    Note investing is not the stock market. You are not picking between a treasury bill and a penny stock. Every deal sits somewhere on a spectrum, and your job is to match your return expectations to where that deal actually falls, not where your wishful thinking puts it.

    The investors who buy consistently are not the ones who found perfect deals. They are the ones who got comfortable underwriting real risk and pricing it honestly.

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  • Joel Miller
    Member since 2011 · 152 posts · 113 votes
    5mo

    I address this issue in my book at the beginning where I discuss the mindset for investing. My main point is that you don't need to know everything before you invest. You need to know enough to avoid a big mistake, but you will learn the intricacies (which new investors sometimes get hung up on in their analysis) as you go. You just need to take action and follow through.

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