How long did it take to make your first deal?

Question

I am a new investor in a new market (I moved the Phoenix metroplex a year ago) and have been thinking about real estate for some time.  I have recently gotten very focused on making my first investment, so I have been analyzing deals, I joined the local REIA chapter, met with a local real estate agent, met with a local wholesaler, and so forth to build a network.  All of this has occurred in approximately the last three weeks.

I know three weeks isn't long compared to my long-term financial goals, but I have to admit I am getting a bit antsy wanting to pull a trigger on a first investment property.  I was listening to Gary Keller's "The Millionaire Real Estate Investor" on audiobook, and he mentioned that buying a property doesn't make you an investor, buying the right property makes you investor.  That was definitely something I needed to hear to build patience until I find the right deal.  I have put off beginning investing for a few years as I developed in other professional areas (which has paid off in higher income), but I can't help but feel the time-value of money slip month by month.

How long was it between when you got serious about purchasing a property and when you closed your first deal?  Did you rigidly stick to your criteria to make sure it was a good deal?  How did it turn out?  Thanks for sharing!

Account Closed · Answer

This is so relatable. I read Gary Keller's book back in March, and since then, I've analyzed dozens of properties, met and spoke with multiple realtors/lenders, gotten pre-approved for a mortgage, spoken with a few wholesalers, etc. I found a duplex that meets my criteria, and cash flows between $350-550/monthly. We're about to make an offer.

It's scary to think that four months ago, I thought real estate investing was an unrealistic dream. To ensure I'm not making a rash decision, I've run all my numbers & property analysis through 10 personal friends and family members. I'm gathering as much feedback and opinions as I can. I'm listening, consuming, reading, planning for worst-case-scenario, and biting the bullet. Good luck to you!!

Aaron Beavers · Answer

@Anthony Gayden  That is comforting to hear that I am not the only one!

@Grant GreeneI have an angel investor that will cover my first 1-3 deals, and he is quite risk averse, so any deal I bring to him will be well analyzed and scrutinized first.  I appreciate the insight.

Account Closed Thanks for sharing!

Grant Greene · Answer

Good morning, @Aaron Beavers, and welcome to the world of REI! Full disclosure: I work for a lender, so that obviously informs what I'm about to say.  We've found that when new investors (or those who are new to the business and are preparing to make their first investment) meet with a lender who works with investors on a regular basis, they're far more successful more quickly than if they just jump in with both feet without that consultation.  That last sentence is not meant to demean or devalue the advice you'll find here on BP or the myriad books that have been published to give someone like yourself well-honed advice.  A GREAT lender, when you meet with him/her, is going to ask you two fundamental questions. The first one is obvious: what are your goals/what is your plan?  The second one is really the one that sets the greats apart from the good ones: what is your exit strategy?  If the lender doesn't ask you that question (and subsequently help you fine-tune that strategy), it's a good guess that he/she is not going to give you good, long-term guidance.

Anthony Gayden · Answer

@Aaron Beavers

About 3 months of me being indecisive and scared before I finally made an offer.

How long did it take to make your first deal?

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