When you’re looking to land that first deal in real estate, everything can seem either like an obstacle or an exciting new adventure. The real challenge lies in keeping things simple and streamlined. Here, we’ll cover “Prepare, Persist, and Partner,” the key steps to making that first deal happen in your real estate journey.
Landing your first real estate deal can be both thrilling and overwhelming. The landscape is filled with opportunities and challenges that can make anyone feel a bit lost. But don’t worry; we’ve got you covered. Our three steps—Prepare, Persist, and Partner—will help you navigate the complexities and reach that all-important first deal.
Prepare
Mind
Understanding Failures and Setting Expectations: Real estate is not an overnight success story. Proper expectations need to be set right from the get-go. Understand that you may not close your first deal for at least 6-9 months. Consistent deals usually start rolling in around the 12-15 month mark. This timeline helps you stay motivated and keeps you from quitting early on.
Finding Your Motivation: Everyone needs a reason to keep pushing when times get tough. Maybe it’s a vision board, daily goals, or a motivational playlist. Find out what gets you out of bed and stick to it. Those small victories—like getting up early and hitting the gym—build momentum for tackling larger challenges.
Body
Daily Routines: Your body needs as much preparation as your mind. Developing healthy habits can make a significant difference. Start your day with a workout or a motivational playlist to set a positive tone for the rest of your day. These routines will keep you focused and energized.
Corporate Structure
Getting Your LLC: One of the first steps in your journey should be setting up a corporate structure. This is somewhat controversial because some people prefer diving straight into deals without this step. However, having an LLC can protect you from personal liability and make partnering with others easier. This includes getting associated documents like the operating agreement and EIN.
Benefits of Corporate Structure: Creating an LLC is an investment in security. It limits your liabilities, letting you contract houses more confidently. Also, it makes you a more appealing partner, as many deals require a solid corporate structure.
Persist
Marketing
Consistent Marketing Efforts: Consistency is the name of the game when it comes to marketing. Spend at least three months on consistent efforts before expecting any returns. Use direct mail, bandit signs, and cold calling as part of your strategy. Remember, it’s a numbers game, and the more you persist, the better your chances.
Examples:
- Direct Mail: Expect results after three months.
- Bandit Signs: Place them consistently in high-traffic areas.
- Cold Calling: Overcome the fear by focusing on high-volume calling. Call For Sale By Owners (FSBOs) listed on Zillow to get used to rejections and potentially find leads.
Follow-Up
Systematic Follow-Up Routine: Follow-up is crucial yet often neglected. Make sure you have a systemized follow-up routine. Statistics show that 75% of deals are closed from follow-ups after 30 days, compared to just 7% without any follow-up. This follow-up could be as simple as a phone call or an email, but it needs to be consistent.
Mentally
Understand that there will be losses and moments of self-doubt. Push through these failures and take them as learning experiences. Separate your milestones from wins. A closed deal is a win; getting your LLC is just a milestone. Keep pushing until you lock in that contract and get it to closing.
Partner
Overcoming Impostor Syndrome
It’s common to feel like an impostor, even for experienced investors. Understand that everyone feels this way at some point. Your fears and self-doubts are normal, but they shouldn’t stop you from moving forward.
Leveraging Strengths
Time, Money, Knowledge: Every deal needs time, money, and knowledge. You may not have all three, but you can find partners who do. Offer what you have in abundance—be it time for door knocking, leads, or a willingness to learn—and find a partner who can complement your skills.
Contract Expertise: If you’re uncertain about contracts, partner with someone who has the know-how. Offer them a percentage of the deal for their expertise. This way, you both win.
Importance of Giving Value
Don’t expect others to help you for free. Always have an offer ready when you ask for assistance. Be upfront about what’s in it for them, whether it’s a percentage of the deal or future partnership opportunities. Value the people who help you, and they will be more willing to offer their expertise.
Types of Partnerships
JV Deals vs. Long-Term Partnerships: Joint Ventures (JV) are perfect for one-off deals and learning experiences. Long-term partnerships or forming a company together is the next step once you find someone you work well with. Both have their benefits and can provide access to knowledge and skills you may lack.
Benefits of Partnering: Partnerships provide access to expertise you don’t have and can lead to mentorship opportunities. They also allow you to take on deals you might not be able to handle on your own. This collaborative approach ensures you can tackle bigger and more complex projects more confidently.
Key Takeaways
Landing your first deal in real estate involves preparation, persistence, and partnerships. Prepare by setting proper expectations, building daily routines, and setting up a corporate structure. Persist in your marketing efforts, follow-up, and mental resilience. Finally, don’t hesitate to partner with others who can offer what you lack.
Follow these steps, and you’ll be well on your way to closing your first deal. Stay motivated, keep pushing, and most importantly, never give up. The real estate journey is a marathon, not a sprint—stay the course, and success will follow.
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