I've had a few interactions recently that I think are typical of any industry but add to the argument for getting started with your first equity deal ASAP.
We have all heard people gripe about the amount of effort and brain power they put in at work without any credit. In some cases their manager or business takes all the credit leaving them with little recognition. I call this "trading time for money."
I see the same thing from time to time in real estate. Real estate agents, property managers, contractors, etc. that are frustrated by the lack of money they are making on each project or that are tired of being pushed around by equity partners. The conversation I had this week was with a frustrated individual who has a development deal that is ready to go, has no cash to invest, and is annoyed that he hasn't been able to get it financed yet. He acted like the world has conspired to keep in the consultant position!
I don't point this out as a rant, or to poke fun. I only throw it out there as an extra push to get your first or subsequent deal done. Get started. Be patient. Save and invest! If you don't get that nest egg started, it can never help itself accumulate and grow over time.
I broke even on cash in the first flip I ever attempted. However, I gained experience negotiating a deal, getting a loan, going through a closing, understanding titlework and fees, hiring contractors, weighing D.I.Y., marketing and selling the property, etc. I also enjoyed the thrill and mantle of being an owner. The next property worked out much better.
Don't swing for the fence. Looks for single base hits. You can do it!
