What to Expect When Closing Your First Real Estate Investment DealApr 25, 2022
Whether it's your first time closing an investment deal or probably trained so hard to get that deal done, closing your first real estate investment deal can be a daunting task. But it doesn't have to be. With a little preparation and know-how, you can successfully close your deal and move on to the next one.
Here's what you can expect when you’ve closed that first real estate investment deal you’ve been eyeing:
The unwavering feeling of mixed emotions.
As with any new success (especially if it is a new one), the feeling of fun, bliss, excitement and stress are just all in one place and you even can’t fathom where they are streaming from. This is the time when you tell yourself “wow, this works” or “hell, yeah, I can do it again” This feeling pushes you to do more and gives you that sense of pride.
It is profitable.
Well obviously, it is profitable otherwise you won’t venture into this industry, right? However, keep in mind that while real estate investing may be a lucrative endeavor, it is not necessarily simple. Your first deal may be successful, but there are many things that may go wrong. Many investors overpay for properties; make inaccurate renovation estimates; overlook anything during the walk-through that will cost them later; or any of a number of other factors that might stymie earnings. As a result, making money on your first trade is far from certain. Your first close, on the other hand, has the potential to make you money.
It will be perfect.
I know that feeling of closing your first deal and just thinking that it can go all over the place. But you have to trust me that your best is more than enough otherwise you won’t close that deal.
On the other hand, if it didn’t go the way you wanted. You have to remember that real estate investing has a lot of challenges. If you're not careful, you can easily find yourself in over your head. That's why it's so important to take the time to learn from those who have gone before you. By learning how to properly evaluate a home's current worth, identify potential damages or expenses, and understand the current housing market, you can minimize your risk and maximize your profits. And, when it comes time to talk to clients, remember that effective communication is essential to solving their problem and closing that sale.
For most people, closing their first real estate investment deal is a huge milestone. It's a process that takes a lot of hard work, dedication, and tenacity. However, once you've finally reached the finish line, it can be an overwhelming feeling. A mix of emotions ranging from happiness to Relief to pride will likely wash over you. And while it's natural to want to celebrate your success, don't forget that there's always more you can do. Real estate investing is a marathon, not a sprint, so take a moment to enjoy your achievement before getting back to work on your next deal.
The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. M1 Real Capital Inc, Marcin Drozdz is not a financial, legal or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold M1 Real Capital Inc, Marcin Drozdz or any of his affiliates harmless in any event or claim.