How to Beat 5 Common Excuses That Keep You From Your First Deal

by | BiggerPockets.com

I don’t want to keep you in suspense. The answer is yes, you’re ready!

So why haven’t you done it yet? Say the reason out loud right now. What did you say?

Not enough money?

Not enough time?

No experience?

Bad market?

Consumer debt?

The reasons (or excuses) can go on forever.

I’m still in the middle of my real estate journey. I have in no way “made it.” I’m still stressed, concerned about growth, and making decisions that keep me up at night and make my stomach turn. I still want more mentors, more knowledge, more money to invest, more success.

But I’ve taken the first step. The journey has begun.

OK, I took the first step several years ago and have done dozens of deals at this point, but I hope you get the point I’m trying to make. The only reason I’ve made any headway, developed any traction, had any success is because I started.

There’s a lot about real estate I don’t feel qualified to teach or talk about. But I can for damn sure talk about pushing past the fear and doing your first deal. Let’s walk through the above reasons together and let me help push you over the edge.

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5 Common Excuses That Keep You From Your First Deal

1. Not Enough Money

There are several ways to solve this one, and they all start with finding a really good deal. If you find a kickass deal, the money will find you. Hard money lenders are all over the country. Overall, they aren’t looking at your qualifications as a buyer. Their main concern is whether they will lose money if they have to take the deal back, finish the rehab, or sell to another investor mid-rehab. Finding deals with wide margins will find you money.

You must also be networking, both online but especially offline. Get out from behind the protection of your computer and go meet people. Find a local real estate meet up. The BiggerPockets forums are full of great options.

Related: 4 Self-Sabotaging Excuses Holding You Back From Investing Success

Another way to find money is find someone to partner with. Take a tiny percentage of the deal if need be and do a ton of extra work. Remember, the goal here is to complete your first deal, not become a millionaire overnight.

2. Not Enough Time

I’m sorry, but I have to call BS on this. If you’ve watched one second of Netflix, browsed Instagram or Facebook in the last week, or gone out with your friends, the problem is time allocation, not an actual need for more time.

I know we all need breaks, but remember that life has many seasons. Maybe this isn’t the “break” season. Maybe this is the 18-hour days grind season.

Account for time in the car, time waiting in lines, and time spent getting ready in the morning or prepping for bed. All these moments can be used to learn about real estate, make phone calls with local real estate agents or contractors, and push you forward toward your first deal.

3. No Experience

We all started with no experience. Everyone at one point hadn’t done their first deal. The answer to this is form as good a team as you possibly can.

Again, get out and network. The resources are out there; go track down your initial team and get a property under contract. You can improve on it later down the road once you start to know more about what your personal strengths and weaknesses are.

4. Bad Market

Get creative or move somewhere better. We live in the most connected day and age ever! Physical distance has massively shrunk. Starting to invest in a market you don’t live in is definitely scary, but it’s done by investors all over the world.

Again, go back and build your team. Find investors nearby who are succeeding. Or take massive action and just move. If it doesn’t work, you can always come back to where you are now.

Is financial freedom and independence worth a little risk and discomfort?

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5. Consumer Debt

The answers to this are very personal and take some soul searching. What is the debt and why do you have it? No self control, lifestyle creep, something else?

I’ve lived (and continue to live) very small. Right now, building a business is way more fun and important to me than having ANY consumer item.

Nothing brings me more fulfillment and happiness than seeing progress. If material possessions are holding you back from this goal, take massive action and have a garage sale, downside your apartment, or move home with your parents for a season. The answers are endless.

Related: 5 All-Too-Common Excuses That Keep Investors From Succeeding

How much does real estate investing and success really mean to you?

Please don’t have read this far and think I say any of this flippantly. I’m dead serious—and I know it isn’t easy. Change is hard and scary. Humans are hardwired to avoid change and the unknown.

But the only thing I can attribute any of the success I’ve had so far to is the fact that I started. I made mistakes, I keep making mistakes, and I keep going. Rome wasn’t built in a day, and financial freedom won’t be achieved in a month (or year).

Write down your action plan. Tell other people what you are going to do, and ask them keep you accountable.

Do your first deal and start the process. Build momentum.

If you aren’t sure who else to talk to, email me! I’m cheering for you, and I hope you’re cheering for me. We are all on this together. Here’s to making our lives better and then passing on that blessing to others.

We’re republishing this article to help out our newer readers.

What are you doing now to make headway towards your first deal?

Share below!

About Author

Christopher Gill

Christopher Gill is a real estate investor and serial entrepreneur based out of San Antonio, TX. Starting with just $15,000 in working capitol in the past 5 years he’s owned millions of dollars worth of residential and commercial real estate.

Come hang out and let’s talk real estate!

17 Comments

    • Sariya Saabye

      Hey Christopher! I’m new to investing as well. I’m currently wholesaling, have no interest in rentals, and am looking for that home run rehab. I love reading these kinds of posts because as a mother of 2 little ones with a part time day job I have all kinds of excuses! But I love real estate and see it as an avenue to better my life and that of my family. Thanks for the post!

      Hey Andrew! I would love to connect with you as I’m in the St. Louis area where things tend to be very affordable. Let me know if you’re interested in investing in the midwest!

  1. Shane Seeley

    Thanks for the encouragement Christopher. I’m new to RE investing and know first hand how easy it is to let “circumstances” hold you back. One of the ways I’m trying to build my investment funds is by using my skills and experience in construction to help rehab properties for an investor group in my area. I’m also getting good networking opportunities through this group and others in the area. Thanks again for sharing.

  2. Clay Haney

    It says you started with $15,000. Im trying to start on a smaller scale, buy some acres in my urban town, and build from there. I have alot of hospital bills on my credit, so its not the best in the world. Im waiting until I get $5,000 as a down payment and go for a $15,000 loan on some undeveloped property. Do you have any suggestions? Should I pay off some of these bills, or will that even help my loan status? Should I start with a bank or credit union, or an independent finance company? And how much capital would I need to get power and water ran to the property?

    • Christopher Gill

      I’ve talked about this on my personal real estate website, but yes “get yourself ready to invest”. Clear up the debt so you can focus on the real estate thing. Once you have some momentum behind you it’s much easier to keep the investing train rolling.

      Rates on the “pre-development” vary dramatically by what part of the country you’re working in and whether you can tap into municipal utilities companies. Land development can be an awesome way to make quicker cash than doing the entire development process.

      Keep me posted as you get stuff going!

  3. Heather M Long

    Thanks Christopher!

    I’m a newbie to the RE industry, looking to wholesale properties and build capital then acquire several rental properties in and out of state.
    I want to learn as much as possible about real estate so I decided to invest in a local real estate course, I’ve completed the course and I’m now preparing to take my real estate license exam.
    Categories #1 and # 3, are my biggest concerns but I find your post inspiring and I look forward to learing more and creating a successful RE business.

    • Christopher Gill

      Welcome to the community!

      My intro to real estate was by being an agent for a year and a half. I recently got my brokers license just to have. The knowledge you gain can be immense.

      Wholesaling is good, but push for that first flip or rental. Everything gets so much more real when you’re signing on that first deal.

      Keep me posted as your stuff gets going!

      All the best,

      CG

  4. Laura Yates

    Hi Christopher!

    Thanks for the encouraging kick in the pants! Currently, I have consumer debt (which makes me hesitate) and I also hate my current job. I start with local real estate classes and will hopefully be fully licensed broker by May. I figured it would kill 2 birds with one stone…new job in a field that I love and boost my knowledge in the area. Rental property is the direction I want to go in. It just makes so much sense to me! I love what you said about having an action plan, telling people about it and then asking them to keep you accountable. That keeps you honest with yourself and sticking to your goals. No room for excuses! Thanks again for the inspiration!

  5. Juan Ruiz

    This is definitely inspiring for new people!! I am currently buying my first home which will be a live in flip. I hope to have this help me gain some experience as I really want to get into fix and flip as well as wholesaling properties. Thanks again for the inspiration!

  6. Michael Coiffman

    This is great, I feel the same you felt many years ago. I have a full time job and fully support a family of 4 including myself. Many years ago I was an appraiser and I have tons of experience regarding property values and the rental market. I live in Wesley chapel, FL. The main thing I need to overcome are the funds needed to start. right now I’m paying off debt and working on my credit. I really want to break the barrier and start with my first rental to hold and make passive income. I have been told that I can get a loan for investment property as if it was for primary residence… This sound a little weird. In other words how much would i need in cash to get a loan for a rental property in the 70k to 80k ? I will keep motivated and start moving forward. Thank you all for your posts. 🙂

  7. Stephen Shelton

    I think the suggestion here that intimidates me is the one about investing where you do not live. I know that’s what property managers are for but after 4 years I finally had the “leaky toilet” call. It cost me about $15 to fix because I did it myself, but a plumber would have cost at least $125. It would be difficult finding, trusting, and most importantly VERIFYING a property manager.

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