First time investor advice isn’t something to take lightly; often times, it serves as the foundation of one’s entire career. In fact, you could argue that the advice new investors take to heart is, in a lot of ways, telling of how things will play out in their future. Those that found their career on sound advice, for example, are more likely to scale efficiently and successfully. On the other hand, those that don’t will most likely run into problems down the road that can be traced back to their beginnings, or perhaps even poor advice.
In my opinion, there’s no doubt about it: the advice you choose to adhere to, and not adhere to, will have an unequivocal impact on the rest of your career. That is why I want to offer you some first time investor advice I wish someone told me when I first broke into the industry: your first deal means a lot more than you realize.
Whether you realize it or not, your first deal will shape your perception of the real estate industry in many important ways. As a result, I maintain that new investors should focus solely on their first deal, and nothing more.
In my professional opinion, the best first time investor advice anyone should take to heart is this: focus on getting your first deal under your belt and seeing it through to the end.
Could you argue that my advice is it too simple? Yes. Is it something you probably already know? Most likely, but that’s the point. Advice, particularly for new investors, can’t be too complicated; it needs to be something they can comprehend right out of the gates. That way, it’s easier to follow and build off of.
It is worth pointing out, however, that far too many new investors get lost on the way to their first deal. Whether they procrastinate out of fear of the unknown or they suffer from what industry professionals have dubbed “analysis paralysis,” there are far too many excuses made accessible to the inexperienced investors trying to make a name for themselves. Consequently, it’s those that don’t focus on completing their first deal that are more likely to fail as a real estate investor. What’s more, it’s those that do place an emphasis on landing their first deal that will go on to realize more success.
Again, the foundation of one’s career is of the utmost importance. If you can set a great tone at the genesis of your investing career, it stands to reason that you’ll carry it with you the rest of your days. Not only that, but those who pour their heart and soul into completing their first deal will notice that such an accomplishment isn’t without several advantageous results.
On the surface, completing your first deal will net you your first professional profits as a real estate investor, but I can assure you that money is the least valuable thing you will gain from your first deal. In addition to money, you will also get:
Confidence serves as a staple characteristic for today’s most prolific investors, and you’ll build your very on confidence by completing your first deal. Perhaps even more importantly, however, is the truth said confidence will coincide with: the proof that you actually can invest in real estate successfully — that’s a powerful realization. When the moment comes that you can tell yourself that you have already invested in real estate, moving forward won’t seem like the monumental obstacle it once was. With a single deal under your belt, it’s entirely possible for your new mindset to become your most valuable asset. With confidence — and the right amount of due diligence — there’s no reason you can’t (at the very least) replicate the results of your first deal. Of course, there’s a good chance you’ll improve on your second deal because of everything you learned the first time around.
You will learn — rather quickly, might I add — that real estate is a people business. On your first deal you will have most likely worked with a number of different professionals, not the least of which included contractors, lawyers, homeowners, buyers, escrow agents and a number of other individuals. What you may not have realized, however, is that each person you worked with on your first deal is a valuable contact, or — at the very least — someone you could potentially work with again. If you liked the results of the first time around, there’s no reason you shouldn’t add them to your own network. If you haven’t realized it yet, you soon will: the people you work with will surely become your most valuable asset as an investor. That said, working well with others on your first deal will most likely result in valuable relationships; ones you can take with you to the next investment.
In the event you are happy with your results, there’s a good chance you will want to repeat some of the systems you used to complete your first deal. Why wouldn’t you? If you took this article to heart, and actually focused all of your effort on completing your first deal, there’s a good chance the systems you had in place worked for a reason: they were well-devised and thought out. What’s more, there’s no reason your most successful systems can’t be implemented in your next deal. Take that marketing strategy that worked so well the first time around and use it again. Of course, feel free to make any necessary adjustments you noticed from the first time around, but recognizing you already have systems in place will save you a lot of time and money. And what are the two most valuable things to today’s investors if not for the time they spend on a project and how much they make? At the very least, even taking just a few systems from your first deal is a significant advantage.
First time investors should know the weight their first deal carries, as there’s no doubt of the ramifications it will have on the rest of their career. It is entirely possible for the wake left behind your first investment property to influence your most important decisions moving forward. As such, it is of the utmost importance that you treat your first deal like it deserves to be treated: the most important thing in your business.
Those that dedicate themselves to their first deal, and give it the attention it deserves, will quickly learn that there isn’t a better return on investment (ROI). Of course, there’s money to be made, but I am convinced that first deals offer so much more than monetary value; they offer experience — and everything else that comes with it. If for nothing else, it’s the things I hit on above that will prove to be more valuable than money over the course of an investor’s career.
All things considered, I am convinced that the best first time investor advice should acknowledge the importance of the first deal. It is the first deal, after all, that will set the tone for the rest of your career.