It gets eisier after the first deal?

Question

I have heard so many investors tell people that "It gets eisier after the first deal", I hate to ruin the party but it gets NO easier.  I have bought and sold $10,000,000+ in property, and it never gets eisier.

I will agree that it does "Seem" to get eisier.  The main thing to keep in mind is that the deals don't ever get eisier.  Your reaction to doing deals becomes far less negative and worrysome, but the deals never change.

Keep in mind that the same deal that seems "Stressful" to a newbie is a walk in the park for a seasoned investor. This shows that a deal is always just a deal, it is what you do inside your head that makes things seem difficult.

If you havent got past your "What if" voices, and onto making money, then  go to work on your head,  not to work on more investing books.  I bet there are many newbies in the forums that are more knowledgable than many of the investors that I know. The difference is that too many Newbies "know what to do", but they don't "Do what they know".

N/A N/A · Answer

I'm certainly not a "pro", but the 5th deal I did was easier for me than my 1st. Difficulties cames as I experienced new lessons and continue as I stay out of my comfort zone. So for me, I'd have to say that the same things do get easier over time and experience. New things are always new.

Calixto Urdiales · Answer

Hey there esnuts,

that a very firm way to put things but in the long run i would have to agree with you! and my favorite saying is "Nothing is ever easy" and i hold that to the heart with everything! Thanks and maybe one day things will get easy for us all, right fellas? Business is business there is all ways going to be a bump in the road that blocks a straight path, what ever you decide to do about that bump determines the outcome! So if there was a bump in the road of one of your deals what would you do about it?

Thnx and have a wonderful biggerpockets day!!

Account Closed · Answer

I have found that dealing with some of the surprises that come up while doing deals gets a "little" easier, but all in all I still feel pressure and frustration at times.  I think that when you are knew to this so much is riding on your deals getting done.  After a while you have that cushion and things aren't quite as nerve racking, but still are, at least for me.  That's all part of the risk isn't it?   :D

Eric Medemar · Answer

Knowing your real estate market allows you to know prices, the true logistics of the deal that newbies get stuck by are between their ears, not in knowing the market. I know alot of people that know about my real estate market, but don't make a penny.

Knowing your market is important, as is my real estate network. Yes deals come to me more readily, yes knowing my market does help, but a deal is still just a deal whether it comes easy, hard, or not at all.

But your right, I am probably missing something? Could you or mike OH email me some helpful tips.  I would appreciate that.  I am always up for learning something from the old pros.

Account Closed · Answer

You wrote:

You have done enough deals to know what we are talking about.

You want to push the idea that it is all mental and the deals do not get easier. Lets take your view. It is what you believe that matters. Hence your deals will never get easier.

It is a mental game and those who get into a rut will stay there.

With any proof all it takes is one false example to disprove the theory. Investing for me did get easier after the 1st deal so we know it can happen.

QED

John Corey

Jimmy NA · Answer

I am one of these newbies. I hope I am doing "what I know."  I ran the numbers backward and forward and every which way.  It screams buy. I can flip them or sit on them and still cash flow nearly $85-95 per unit. My intention is to sell them ASAP. Because of the large margin, I think I can work a flip on these even in this market.  But if I can not, I will hold them. Is this a bad idea? Am I kidding myself?  1.) PP=75K, repairs 20k,Projected Sale Price=  135K ; 2.) PP=55k, repairs 20K, Projected Sale Price=110k.
At the projected sale prices, these would be the cheapest 2, 3 family props. to sell in 2 years in my market. I would be bringing a very cheap product to market, even in light of this downturn. Thoughts?

Account Closed · Answer

It has gotten easier for me. Maybe you are not doing something correct if you find it is still as hard now as it was when you did your first deal.

The biggest reason it is easier is something MikeOH talks about. You know your market. I would also say that it is easier because you have a track records plus a network. More people bring you deals, more lenders will approve your projects, etc.

Scale does matter.

John Corey