How soon did you close your FIRST deal?

Question

Hello everyone and happy new year!

I've been in real estate for 2 years now and I still haven't closed on a deal.

I think its mostly because I'm doing it part-time and procrastination has been a big factor even though I recognize it :(

So I was curious to know, how long did it take you to close on your FIRST deal (wholesale or rehab).

Account Closed · Answer

Your mileage will be different. But it takes as long as you want it to take.

Dip your toe in, read everything, listen to podcasts....

Or just do it and learn by trail and error.

Pick one and do it.  Regardless of how much you read and research it ends up being trail and error....

So in my opinion just jump into the deep end, I’d rather be swimming and struggling then watching on the sidelines wishing I was swimming.

For me it took over 3 years from the first time I decided to do it until I closed on my first deal.  However, I know I missed out on tons of things I should of bought because of fear.

MC Crosby · Answer

Ah, two months after the auction bid. Thought it was 8 months after the winning bid.

Thanks for getting back to me and appreciate your additional insights!

Caleb Heimsoth · Answer

@Daniel Hurtado joined BP in October.  Closed first deal followed August, so 10 months

Ned Carey · Answer

Yes the total time was 8 months.  Six months until the auction and two months waiting for closing = 8 months total. Keep in mind it was relatively easy for me I had the money and was just the highest bidder. It was a full year before I did any kind of creative deal.

My theory is; generally two things hold new investors back. First is finances.. I can't help you there. The next is being afraid to pull the trigger because they don't know the market well enough. Most people can learn the strategies and how to evaluate a deal here and other places.

To really have confidence to move forward you need to know the market. This is a step most new investors skip. You can know all the formulas in the world but if you don't know what numbers to plug into those formulas, you will be stuck. You need to know not only what things are worth in good condition (ARV or Market Value) but what level of finishes the market expects to get those prices. That is true for both rentals and flips.

The fix is go out and look at and evaluate a hundred houses.

MC Crosby · Answer

@Ned Carey Do you mean to say that it took roughly 8 months after winning the auction?

Have only bought traditionally and found a property for auction that I'm quite interested in. Though apprehensive about the uncertainty/timing of purchasing at auction...

Ned Carey · Answer

@Daniel Hurtado my first deal I bought at auction after about 6 months and I didn't close it for another two months.