The real estate investing game has been around for a long, long time. If you’re a new player to the game, however, you may be feeling a bit overwhelmed at the thought of closing your first deal. Rest assured that this is normal and so are a host of other emotions like nervousness, excitement, and fear. While every deal is unique, we’ll try to put your mind at ease by letting you know what you can expect, in general, when you close your first deal.
Your First Deal Can Go Smoothly
Many new investors expect their first deals will have a few hitches. Some even fear the deals will be nightmares full of learning experiences. The good news is, your first deal CAN go smoothly – if you take the time to educate yourself, starting with these key points.
- Find someone who’s been there, done that who will give you advice and guide you in the right direction.
- Learn how to evaluate a home’s current worth.
- Learn what expenses/damages to look for.
- Learn what the current housing market is in your area.
- Learn how to listen to and talk with clients.
You CAN Make a Profit on Your First Deal
Due to inexperience and lack of education, many first-time investors fail to make a profit with their first deals. This doesn’t have to be the case, however.
First, take care not to buy too high. Pay close attention during the walk-through to be sure you catch every potential issue and try hard to estimate your rehab costs as closely as possible. Missing potential problems or estimating too low can cut into your profits in the end.
Besides Education, You’ll Need Hands-On Experience
There will come a time when you’ll need to trust the education you’ve gained and make an offer. When that time comes, you’ll gain hands-on experience and learn as you live the process.
It’s during this time that it’s very helpful to have an experienced investor on your team to help you make decisions and offer advice – someone who has your best interests at heart.
Remember, reaping a profit is never guaranteed, but learning by doing and having a trustworthy mentor and plenty of knowledge will help ensure a successful first deal.
It’s Exciting to Know You’re Helping the Homeowner
While the prospect of making a profit is exciting, that’s not the only thing to be excited about when closing your first deal.
It’s nice knowing you’re helping out the seller, too. Selling a home can be just as stressful for the homeowner as it is for you as the investor. Caring for and treating the seller as a person rather than the means to an end is a sure-fire way to get referrals and build a positive reputation in the industry. Be kind, be considerate, and above all else, be compassionate – you never know when you’re dealing with someone who’s potentially going through the hardest experience of their life.