How 28 Real Estate Investors Completed Their First Deal
Each week, we post a new question to the Best Ever Show Community on Facebook. The Best Ever Show Community is a place where real estate entrepreneurs of all stripes and sizes can come together to interact with each other, me, and the guests featured on my podcast with the purpose of everyone helping each other reach the next level in their businesses and their lives.
What better way to add value than to ask you, the community, for your Best Ever advice on a variety of different real estate topics. This week, the question was “after you first became interested in real estate, how long until you had your first deal under contract?”
Of course, being the Best Ever Community, the majority of the members are active real estate investors. However, if I had to guess, only 1 out of every 10 people who become interested in real estate actually pull the trigger. And an even smaller number of people pull the trigger within a year! That being said, if you are interested in real estate but haven’t completed your first deal, let this blog post be a motivator. Because, of the 28 responses, 24 investors acquired their first deal within 1 year. That is over 85%! And if they can do it, so can you.
That being said, thank you to everyone who responded. The poll is closed, the responses are in and here are the answers:
Less Than a Week
Two investors had their first deal under contract within a week of becoming interested in real estate. When Shannon Feick was browsing the local newspaper looking for a place to rent, he came across a potential candidate. Within 3 days, rather than renting, he purchased the property using a lease-option.
Theo Hicks had his first property under contract within 48 hours of learning the power of real estate from a friend. He learned about real estate investing on a Tuesday; he had a meeting with a real estate agent on Wednesday, setting up an MLS automated email; he received an email with a listing that met his investment criteria that same Wednesday; he toured the property the next day and had a signed contract by Thursday night, utilizing the house-hacking strategy.
While closing a deal within a week of becoming interested in real estate is a possibility, especially with the use of creative financing, it is not without its risks. Shannon said that she ended up losing the property after two years. And, due to a lack of experience and education, Theo had a nightmarish experience on his first deal. Fortunately, that didn’t stop them from as they are both still active investors to this day.
1 Week to 1 Month
Two more investors had their first deal under contract between 1 week and 1 month of becoming interested in real estate. Dan MacDuffie bought his first fix-and-flip project within 14 days, and Adam Adams acquired his first deal for only $100 within three weeks. Reach out to Adam on the Best Ever Community to learn how he was able to accomplish such a feat!
1 to 6 Months
The most common timeline between becoming interested in real estate and putting a deal under contract is 1 to 6 months, with half of the responses falling within that time range.
Whitney Sewell has a very inspiring entrance into the real estate industry. While working every night of the week, as well as weekends, as a police officer, he came across “Rich Dad, Poor Dad,” and knew he needed to make a career change. Within 3 months, he purchased two 3plexes, using private money for the down payment, which meant that he had none of his own money in the deal. He eventually sold the properties without making a profit, but he gained a lot of knowledge and experience that he still applies to this day.
Matt Skog spotted a seemingly vacant house but one month later, he discovered that the owners were actually just out-of-state for the winter. However, the owners were downsizing into a smaller home, which allowed Matt to acquire the property with a 0% interest seller financing loan. A few years later, he sold the contract and has tripled that profit in just over 7 years.
Two investors become interested in real estate and made the smart move to educate themselves prior to purchasing a deal. Brandon Abbott acquired his first deal after spending 45 days reading 6 real estate books and listening to countless podcasts. And Michael Rafales read “Rich Dad Poor Dad” and “How to Invest in Real Estate With No and Low Money Down” in February and bought his first investment in June.
Other investors who fall within the 1 to 6-month time range were Peter Eiseman (1 month), Brian Trippe (45 days), Devin Elder and Cody Dover (2 months), Julia Bykhovskaia, Davi Brown, Hai Loc and JP Sayers (3 months).
6 Months to 1 Year
The next most common timeline between becoming interested in real estate and putting a deal under contract is 6 months to a year. In fact, this is where I fall – I had my first deal under contract (a single family residence) within 10 months.
Similarly, it took Garrett White 9 months before purchasing his first investment – a single family residence. Tom Lipps was in the research phase for 6 months (reading blogs and books and listening to podcasts) before finding the right property 3 months later, for a total of 9 months. Kris Bennett had two apartment deals fall through, continued on his search and eventually succeeded in closing on a self-storage deal 12 months after starting his search.
Other investors who fall within the 6 months to 1-year time range were Sean Morrissey (9 months), John Jacobus and Kurt Schuepfer (11 months) and Justin Silverio (12 months).
1 to 5 Years
Two investors had their first deal under contract 1 to 5 years after becoming interested in real estate investing.
Chad Althaus became interested in real estate investing while he was still in college. After saving up the money for a down payment during his remaining two years until graduation, he purchased a property within a year of commencement.
It took Lucas Miller a couple of years before acquiring his first property for reasons to which I am sure everyone can relate: he was confused about which investment strategy to implement, so he went through a multi-year trial-and-error phase.
5 or More Years
The last two investors are a case study in patience and long-term determination, because they purchased their first investment after being interested in real estate for over 5 years!
Darrin Carey had a casual interest in real estate for 15 years, at which point he made the decision to become a serious investor. Two years later, he closed on not one, not two, but four deals in quick succession.
It also took Greg Gaudet 15 years to invest. He fell in love with real estate and decided to become an investor in 2003 while working as an appraiser. However, he said he made up for his procrastination by purchasing two properties in Maui over a three-month period and is currently on the hunt for his next deal.
At the end of the day, whether it takes less than a week or 15 years to acquire your first deal, what matters most is entering the game! My recommendation for those who are in the process of purchasing their first deal: reach out to one of the investors in this blog post on the Best Ever Community on Facebook. They’ve all completed at least one deal, and maybe they can offer you the advice you need finally pull the trigger.
What about you? Comment below: How long did it take you to acquire your first property after initially becoming interested in real estate?
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