Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
So how long did it take to find that first great deal that you were willing to risk your time, effort and money working on?
It took me around 4 months to find my first deal. It was hard to keep the doubt out of my mind. But when that first deal made its presence known, everything changed. All of a sudden I had full confidence that this stuff works (even though I already knew investors that were doing deals, I wondered if I could ever really find the deals myself). Once the marketing efforts start building and compounding over time, the deals start coming a lot more frequently (as long as you keep your marketing going). Sort of a snowball effect.
If people just stick with it and get that first deal under their belt, they set themselves up to really make a go of investing.
So how long did it take you to find your first deal? It would also be interesting to see how long it took to find the second. I would bet that 95% of the time it was shorter.
My second took about another month and the third was the same week as the second.
Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
15y
Once I stopped trying to get book knowledge and I actually started looking, it didn't take me long to find my first property. It was a monster rehab in which I got a real, hands on education. It actually went very smoothly, other than breaking even at then end of it.
2nd and 3rd came together immediately after selling the first one.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
I spent about 6 months looking for the first deal, and had the second and third deals within a month after that...so yes, for me at least (and I'm guessing most people), the first is by-far the hardest!
Homeowner · phoenix, AZ · Member since 2010 · 2 posts · 0 votes
15y
Originally posted by Danny Johnson:
So how long did it take to find that first great deal that you were willing to risk your time, effort and money working on?
It took me around 4 months to find my first deal. It was hard to keep the doubt out of my mind. But when that first deal made its presence known, everything changed. All of a sudden I had full confidence that this stuff works (even though I already knew investors that were doing deals, I wondered if I could ever really find the deals myself). Once the marketing efforts start building and compounding over time, the deals start coming a lot more frequently (as long as you keep your marketing going). Sort of a snowball effect.
If people just stick with it and get that first deal under their belt, they set themselves up to really make a go of investing.
So how long did it take you to find your first deal? It would also be interesting to see how long it took to find the second. I would bet that 95% of the time it was shorter.
My second took about another month and the third was the same week as the second.
Hi Danny:
I have done on deal, which took me forever. I am trying to get another deal, which seems to be taking ma a while as well.
If you do not mind me asking, a few questions- do you use a realator to find homes? And, do you use a private investor?
Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
15y
Surrie,
I do work with Realtors, but do not get the majority of my deals from them. The majority come from my 'We Buy Houses' marketing directly to home owners.
I use private lenders (not sure if that was what you meant by the second question).
How did you find the first deal? If that is no longer working, you should try marketing directly to home owners.
You can search the forums for marketing ideas. I just posted 5 ways the other day:
http://www.biggerpockets.com/forums/87/topics/61080-5-great-inexpensive-ways-to-get-deals
Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
15y
Once I stopped trying to get book knowledge and I actually started looking, it didn't take me long to find my first property. It was a monster rehab in which I got a real, hands on education. It actually went very smoothly, other than breaking even at then end of it.
2nd and 3rd came together immediately after selling the first one.
Flipper/Rehabber · Seminole, FL · Member since 2010 · 859 posts · 316 votes
15y
Ours wasn't that long. Of course I was doing direct mail and telemarketing to pre-foreclosures on a full time schedule. That being said, I didnt see any profits for nearly 3 months.
Real Estate Investor · Houston, TX · Member since 2009 · 71 posts · 38 votes
15y
About eight months and $5,500 in marketing expenses for my first deal. Got my second deal about two weeks later ... and then four more deals within the next three months. So yes, the first deal is by far the hardest. It seems to be because of fear and/or lack of knowledge on how to spot a good deal and act quickly.
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
15y
My first deal took about 3 months after a couple of years reading and learning. I paid too much by about $15 grand for it. I lost $7 grand which almost cost me an additional $300k (some wheres abouts) when the Wife wanted to toss me out over the $7k; I have about $One Million$ invested in her. So, I cooled it for a couple of years.
We are on our second flip together after about a 5 month search. I don't think it is the time involved. I think it should be measured in the number of offers. My magic number this time was 19.
Don
Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
15y
You are right about the number of offers being very important. If you don't make offers, you won't buy houses.
It's so important to keep track of number of leads, where they are coming from, the number of offers made per marketing source and the number of deals closed per source. Focus on what works.
It's amazing how many people don't really keep track of these things.
Investor · Virginia Beach, VA · Member since 2011 · 68 posts · 12 votes
14y
This was true for me. I spent about 3 months actually going out and seeing properties before purchase of my first rental. And that's not counting the months I spent doing online research. And, yes, I put in many offers on places without hearing back.
The next year, I had enough saved up again to do it again. But by this time, the condo market had tanked compared to SFH, so the numbers on them were much better. After seeing only a few, I felt like I could mentally sort out the wheat from the chaff and had an offer accepted within one month I think. Also, because of the low prices, I had enough in the piggy-bank to pick up a second in the same complex, which was done in the next month.
What I don't get, though, is this. There seems to be a lot of purchase activity here for some people - where does the capital come from to close on a house a month? (I can't even manage one property a year) Is everyone here a buyer for a big REIT or something?