Your First Deal: Profit or Breakeven

Member since 2020 · 11 posts · 2 votes

Hi guys, curious if any of you are like me when they first started. I think we are just going to break even on this deal because of the foundation and termite damage issues we discovered later. My bad, I didn't get an inspection because this was an off-market deal. I made a few mistakes on this deal and the experience is an enrollment to real estate investing.

What's your top 3 things that you look out for now? What's your biggest takeaway from your first deal.

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Michael Hernandez
Real Estate Broker · Antioch, Ca. 94509 · Member since 2025 · 149 posts · 21 votes
11mo
Hey Bernz,

You are definitely not alone, most investors take a few hits on their first deal. The good thing is that you are getting real experience, which is more valuable than any book or video. From here, focus on getting thorough inspections, building a reliable contractor team, and always keeping a repair buffer in your numbers. What is in it for you is that by applying these lessons now, your next deal will run smoother and your profits will be more predictable. Every investor has one deal that teaches them the hard way, but that deal usually shapes how they win on the next one.
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- Bernz Bayabo
  OP
  Member since 2020 · 11 posts · 2 votes
  10mo
  Quote from @Michael Hernandez:
  
  Hey Bernz,
  
  You are definitely not alone, most investors take a few hits on their first deal. The good thing is that you are getting real experience, which is more valuable than any book or video. From here, focus on getting thorough inspections, building a reliable contractor team, and always keeping a repair buffer in your numbers. What is in it for you is that by applying these lessons now, your next deal will run smoother and your profits will be more predictable. Every investor has one deal that teaches them the hard way, but that deal usually shapes how they win on the next one.
  
  Thank you so much, i needed that.
  0 Reply
Account Closed
Real Estate Agent · Columbia, SC · Member since 2022 · 41 posts · 14 votes
11mo
Hi @Bernz Bayabo,
Flipping is definitely a continual game of learning. Your first project usually serves as the foundation for figuring out what works best for you since every property comes with its own set of lessons, challenges, and wins.

Moving forward, I’d highly recommend getting an inspection, even on off-market deals. It can save you from unexpected costs and help you decide if the property is really worth pursuing. There’s nothing worse than hidden issues cutting into your profits.

The top three things I look out for are resale value, major expenses, and profit. My biggest takeaway from flipping in general is to stick with the numbers and never try to force a deal.
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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
11mo
You are in good company.. If someone tells you they never lost money on a deal you know they have never done a deal.. You Have some wins and you have some losses.
One thing I would do is the foundation and the termite, check to see if you list it at market value if you can get someone to buy the place and disclose the issues and give them a credit or meet them in the middle or even 2/3s of the cost and you can save some money and maybe even get the deal to make some money.
You don't always have to do the stuff (might be a deal you have to do it, buyer requiring it etc.), but if you can split the costs with the buyer you might save some money and be in the black on the numbers.
Top 5 things to look for...
1. Roof
2. Foundation
3. HVAC
4. Plumbing
5. Electrical
The McKernan Group4.954 Reviews
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- Bernz Bayabo
  OP
  Member since 2020 · 11 posts · 2 votes
  10mo
  Quote from @Peter Mckernan:
  
  You are in good company.. If someone tells you they never lost money on a deal you know they have never done a deal.. You Have some wins and you have some losses.
  One thing I would do is the foundation and the termite, check to see if you list it at market value if you can get someone to buy the place and disclose the issues and give them a credit or meet them in the middle or even 2/3s of the cost and you can save some money and maybe even get the deal to make some money.
  You don't always have to do the stuff (might be a deal you have to do it, buyer requiring it etc.), but if you can split the costs with the buyer you might save some money and be in the black on the numbers.
  Top 5 things to look for...
  1. Roof
  2. Foundation
  3. HVAC
  4. Plumbing
  5. Electrical
  
  will definitely be looking more closely for this
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