Analysis Paralysis - Help Needed to Make My First Deal

[Anne Christensen]

Hi all,

I've been listening to the podcasts, engaing on forums and analyzing deals for about 3 months.  I've got my long term goal....retirment income in 10-15 years figured out, identified and traveled to a few markets I think could work.  I'm stuck probably becuase I'm scared of making a wrong move.  Can anyone give me some advice, steps I may be missing to make a confident decision on making my first deal? 

[Austin Hegele]

Hey Anne--

It certainly can be difficult navigating the real estate investment market alone for your first time.  If you fear making a wrong move, I'd look into your network & see if there are any mentors or investors that you could potentially partner up with on your first deal!  Not only would you benefit from having a partner's input on the deal, but you would also have an experienced individual to work alongside with as you navigate the project.

It's also important to make sure you have identified your "team" ie; contractors / realtors / lenders / insurance agents / title company / etc.  By doing so, you'll be able to use accurate assumptions when underwriting deals with strong levels of confidence!

[Jaycee Greene]

Hi Anne. Everyone makes some wrong moves at various times of their lives so I wouldn't worry about that. What type of properties are you looking for? How are you analyzing them?

[George Peng]

Hey Anne! 

Out of curiosity, which markets have you identified? 

Also, do you have any idea what you'd like to do in terms of the method of investing? The two big ones are:

-Buy-And-Hold: makes money by renting out the property. Passive income, but much slower to see returns. Property should (hopefully) appreciate over the time you own it. 

or 

-Buy-And-Flip: makes money by selling the property. It's a faster way to build up capital. 

Both methods require finding a property that makes sense for your risk tolerance, purchase ability, etc. Working with someone with proper knowledge about the market you're looking in is imperative for this. Wishing you best of luck on your journey and please reach out with any questions! 

[Johnny Lynum]

Hey @Anne Christensen! That’s solid prep! 🎯 I get it, though—pulling the trigger on the first deal feels like stepping off the ledge. Here’s the deal (pun intended):

1. Run the Numbers: If the deal makes sense on paper—cash flow, ROI, and all—trust the math, not just your gut. Use tools like a deal analyzer to double-check.
2. Start Small: It doesn’t have to be a grand slam. A solid single will build your confidence and teach you a ton.
3. Know Your Exit Plan: Have a backup—rental, flip, or sell later. That safety net can ease the fear.
4. Tap Your Network: Got a mentor or someone in your circle who's done this before? Run it by them. Fresh eyes help.
5. Mindset Check: You're never going to know everything before you start. Make a move, learn, and pivot as needed. Worst case? You gain experience for the next one.

Fear’s just a sign you’re growing. Make that call—future-you will thank you! 💪

You’ve got this! Let us know when you close your first deal! What markets/strategies have you been considering?