What did you learn from your first deal?

Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes

Good evening BP, hope everyone had a productive day today.

As a newbie real estate agent in the investment field, looking to do my first flip in the next year. The thought of flipping a home is scary, many things can happen you are not prepared for. A house that looks like it would be a cosmetic flip might have serious underlying issues or you might luck up and have it be close to prefect! How did you go about your first deal? Were you nervous or scared?

What did you learn from your first deal? What was your biggest lesson that you learned that changed how you went about your second deal? Would you change how you did anything?

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Eliott Elias

Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes

If you are new hire an inspector and contractor to come out and take a look at the property. There is not much the inspector will miss, you should pretty much have a dollar amount for everything that could possibly go wrong. Make sure you add a cushion in your construction rehab.

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Chris Webb
Investor · Central Virginia · Member since 2020 · 393 posts · 253 votes
3y
Quote from @Waylon Smith:

Quote from @Chris Webb:

Hi @Katlynn Teague, I will take a different approach. You asked what I learned and I have to say the power to live the life you want... in time. Time is the component that many forget. My first rental is about to turn 5 years old and the rent is twice the cost. Having cash-flowing properties is like having an annuity where you only pay for a small % of it. As equity grows, so does your investment and in my case, we put in less than $5k ( VA Loan house hack). Good luck on your journey and please keep us updated! Also, I see that you are an agent. Take a look at @Beth Traverso's playlist on One Rental at a Time for her story. She is a top agent and investor and she is very open as to how she did it. I think it would be a benefit to learn from her if you can.

Hey Chris! I am brand new to BP and learning the platform. I checked out Beth's profile. What do you mean by her playlist? Where can I find that? Her investments were awesome to read and review btw! Thank you!

She is a guest on the YouTube channel One Rental at a Time. The guy who runs the channel Mike has Playlist of his recurring guests. He has a few mortgage guys, Beth, the 3 amigos starring @Dion McNeeley, and many others. He provides content all week. I usually listen while at work. Take care!
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Olivia Grabka
Property Manager · Leominster, MA · Member since 2022 · 103 posts · 50 votes
3y
@Katlynn Teague. My first deal was a triple decker that I bought as a short sale, I found it by looking at a competitor's profile on the MLS. I wasn't nervous because I was really familiar with the street; I had sold a triple decker on the street, so I had a really good feel for the value. I am fortunate that the Agent was an excellent practitioner for two reasons (1) it was a complicated transaction, but he had a great system and (2) I took his advice on my offer amount.
The transaction was a home run, I resold the house for a $50k profit without doing any work... The biggest thing I learned was that schmucks are schmucks, I initially hired an agent to resell the house & when I got the offers I felt like they were crap offers but I went along. Fast forward 4 months and that offer fell apart, I took the listing over and sold it myself in 5 days for an extra $10k in an all cash deal.
In sum, put in good analysis, be patient and trust your work.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Katlynn Teague
The first, best piece of advice is to limit your financial risk and maximize your return potential. Put simply, don’t pay too much for a home (by knowing what it’s worth), and make sure you also know how much the necessary repairs or upgrades will cost before you buy. Having that information, you can then figure an ideal purchase price.
Read this article for more information https://www.investopedia.com/a...
All the best!
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