Rental Property Investor · Stamford, CT · Member since 2018 · 47 posts · 17 votes
I am in the middle of my first true rental property rehab and I have to admit I am a bit nervous. The property is in a C/B neighborhoood in CT. I wanted to hear from others and see if they were nervous or got cold feet during their first property. Thanks everyone.
Chandler, AZ · Member since 2017 · 174 posts · 269 votes
7y
I have second thoughts on my 20th deal! My first thing I remind myself when I begin to doubt is repeat a mantra: "Do the math and the math will tell you what to do." If the deal makes sense (mathematically) then I should do it. In fact, it would horrible for me NOT to do the deal. I imagine myself 10 years in the future lamenting the fact that I was too chicken to pull the trigger and make the deal.
Yes, there are a lot of unknowns in any deal so "doing the math" is of questionable use. But, as we do more and more deals, the "variance" of those unknowns begins to decline. And even if you haven't done a lot of deals, many others have done those deals and can give advice to help you decrease the unknowns.
Finally, I was at an investment seminar a couple of months ago. Many of us had gathered for drinks and conversation afterwards. We noticed that all of us had stories about real estate investments that did not work out the way we expected. But, importantly, all of these deals did work out, just not the way we expected. For example my story was about a cash flow investment I made that never actually cash flowed. But I sold it after 7 years for twice what I bought it for (+$150k). There are many ways we can make money with real estate, usually if one way isn't working, another way does. I guess what I'm trying to say is that real estate is actually pretty forgiving so relax and know that it's going to work out.
Real Estate Agent · San DIego · Member since 2019 · 177 posts · 185 votes
7y
Definitely. I wobbled on nearly all of my first deals. Sometimes it just seems too stressful... all those variables looming in the unknown future. Yet, forge ahead. Not all deals will be home runs, but nothing ventured, nothing gained. Your comfort level will grow with experience. The more you learn, the easier you will be able to assess the variables.
Now my hubs and I will put houses under contract without the other one even seeing them.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
7y
I'm getting cold feet on my second deal. The seller is motivated but there number is way too high. I'm continuing with the due diligence, contractor bids, and budget for a rehab. My plan is to show these numbers to the seller and see if reality kicks in. If not I'll walk away with more knowledge forrehab costs!
Rule #1 - location, Rule #2 - never over pay for property, Rule #3 - Factor in unknown expenses
Chandler, AZ · Member since 2017 · 174 posts · 269 votes
7y
I have second thoughts on my 20th deal! My first thing I remind myself when I begin to doubt is repeat a mantra: "Do the math and the math will tell you what to do." If the deal makes sense (mathematically) then I should do it. In fact, it would horrible for me NOT to do the deal. I imagine myself 10 years in the future lamenting the fact that I was too chicken to pull the trigger and make the deal.
Yes, there are a lot of unknowns in any deal so "doing the math" is of questionable use. But, as we do more and more deals, the "variance" of those unknowns begins to decline. And even if you haven't done a lot of deals, many others have done those deals and can give advice to help you decrease the unknowns.
Finally, I was at an investment seminar a couple of months ago. Many of us had gathered for drinks and conversation afterwards. We noticed that all of us had stories about real estate investments that did not work out the way we expected. But, importantly, all of these deals did work out, just not the way we expected. For example my story was about a cash flow investment I made that never actually cash flowed. But I sold it after 7 years for twice what I bought it for (+$150k). There are many ways we can make money with real estate, usually if one way isn't working, another way does. I guess what I'm trying to say is that real estate is actually pretty forgiving so relax and know that it's going to work out.
Rental Property Investor · Stamford, CT · Member since 2018 · 47 posts · 17 votes
7y
@George Pauley thank you for the feedback. It is good to hear I’m not the only one to have experienced these feelings. I guess the nervousness keeps me on my toes throughout the entire project.