A lot of aspiring real estate investors struggle to do their first deal. (Check out this way to "trick yourself" into doing your first deal). To an "outsider" who is looking at the opportunity, it can sometimes seem complex or confusing. (Once you're inside, you'll discover that it is really quite simple and straightforward).
Here's The DM's advice to eliminate the confusion
So I frequently tell people to take massive action toward doing your first deal. Just get that first deal out of the way. When I first started wholesaling, I decided that on my first deal, it wasn't important for me to make any financial profit. (Sounds weird, right? Keep reading to find out why...)
I wanted to know the process thoroughly. I wanted knowledge as my profit on the first deal. (I knew that I could make some money on future deals but I first needed to understand how real estate wholesaling was done).
So just get through your first deal. You'll be nervous. You'll make mistakes. You'll fumble the ball.
Here's why it's okay to fumble the ball (read this because your real estate investing business will thank you!)
Have you ever faced these situations?
- Remember the first time you drove a car? You were probably nervous and made a lot of mistakes. But you drive just fine now and can confidently handle most of the craziness you face on the roads every day.
- Remember when you went on your very first date with a guy or girl? You were probably nervous. Maybe you said or did something embarrassing. But after a couple of dates, you were much more confident.
- Remember your first day on the job? You were probably nervous. Maybe even a little shy. You shook hands and forgot people's names and just tried to remember where the washrooms and the elevators were. But now, you are way more confident, right?
- Remember the first house you bought? You were probably nervous. Maybe it felt overwhelming. You might have had a ton of questions for your real estate agent or for a friend who had recently been through the same process. When it was time to move and upgrade from your first home to your next home, you were a little more confident going through the process.
I could go on and on; our lives are full of firsts. My point is: We face those first-time situations nervously and we make mistakes. But to be successful you must overcome them and soon become familiar and confident with them.
So just get through your first deal!
But once you've got through your first deal, then what?
To dominate in real estate investing, do these 4 steps immediately after doing your first deal (or else!)
1. Evaluate the deal. Did it go the way you expected? What surprises and obstacles did you discover? Write them down and talk to your mentor about them. Find ways to overcome them for the next time. Some struggles you faced can be completely eliminated with a little more knowledge; other struggles you faced can be eliminated by delegating the work to someone on your team who is more skilled to handle that aspect of the deal.
2. Look for opportunities to become more virtual. I'm always promoting a virtual business so you have the freedom to do what you want to do. But on your very first deal, it's cool if you didn't go completely virtual. I'd rather see people taking action and getting stuff done. That's the most important thing. Besides, doing your first deal "hands-on" (not virtual) helps you to delegate to your team more effectively. But now that you have gone through the steps, you can find new ways to become more virtual.
3. Invest in yourself. Now that you have done your first deal, think about how you can become better at doing the next deal. What areas would you like to improve? Perhaps investing in developing your negotiation skills will help you get a property under contract for a lower price or perhaps developing your copywriting skills will help you wholesale the property to an investor-buyer even faster. If you made money on your first deal, put aside some of that money to invest in yourself.
4. Start on your next deal right away. Don't wait a long time to "catch your breath". Do the above steps but also start looking for your next deal. By following up your first deal with another deal almost right away, you'll solidify the steps you need to take. (Compare that to someone who does their first deal then waits several months or even years to do their next deal... that person basically has to start over from scratch if they wait too long).
There are other things you can do, too, which could be more advanced: You might eventually consider starting an LLC or getting an accountant, but these are advanced and don't have to be done right away.
Life is full of firsts. Some of them are inevitable (like driving a car or going on a date) and we do them even though our fears could hold us back. If you're aspiring to be a real estate investor, your fears might be holding you back from doing your first deal. But once you get that first deal out of the way, you can approach real estate investing with more confidence… and that can lead to more deals and greater success (however you define success!)
Your friend and mentor,
Mark Evans DM,DN
PS, If you haven't done any deals yet, and you're wondering what steps to take to get your first deal done, my book Virtual Real Estate Investing Made Easy will lead you step-by-step through the simple process.
Click here to learn more about Virtual Real Estate Investing Made Easy