Get Your First Deal Done

Bonus Module

Getting Your First Deal Done

You've made the decision to dive into real estate investing, and now you're facing the question: Where do you start?

This is designed to give you a complete, big-picture overview of what it takes to get your first deal done.

I’ve taught hundreds of classes over the years, and here, I’ve pulled together what you need to know to take that first step. We'll cover the essential process and key decisions you'll face along the way.

Fear

Fear stops more people from investing in real estate than anything else.

It’s not that real estate is too difficult—there’s nothing here that someone can’t figure out or do. If you ever come across something you believe is truly impossible, let me know. I haven’t seen it yet.

More often than not, fear is the real obstacle. It can show up in different ways:

• Fear of Not Knowing – Worrying that you don’t know enough to get started. You do know enough to get started, and you’ll learn what you need to as you take action.

• Fear of Looking Foolish – Concerned about making mistakes in front of others. Everyone makes mistakes, but each one is an opportunity to grow. No one is watching as closely as you think.

• Fear of Making a Mistake – Afraid of choosing the wrong property or strategy. Mistakes happen, but they’re rarely as costly as you imagine, and you can always adjust along the way.

• Fear of Risking Time, Money, or Reputation – Hesitant to invest your resources or take a hit to your reputation. Smart investing minimizes risk, and you’ll find ways to protect your time, money, and reputation as you go.

If you find yourself stuck, ask yourself: What’s holding you back from moving forward?

Taking a moment to identify that fear is the first step to overcoming it and taking the next step.

Finish Reading and Keep Learning

Finishing this material is a great step toward mastering real estate investing, but it’s just the beginning.

Real estate is an ever-evolving field, and the most successful investors make a habit of continuous learning.

Even though I’m living off the passive income from my real estate and other investments, I still read broadly and stay curious about real estate investing.

After being involved in the industry and investing for close to 25 years, I know a few ways to get to the top of the mountain—and I’ve summited the mountain myself and helped others do it too—but there are many other ways to get there. I’m constantly discovering new ones as I continue to learn.

Even though I’ve taught hundreds of real estate investing classes, I still read books, listen to audiobooks and podcasts, watch videos, buy courses, and talk to other investors.

You’ll find that different perspectives and strategies can open new doors for you. Some approaches work better in certain markets or for specific goals, so keep expanding your toolkit.

The more you learn, the better equipped you’ll be to navigate challenges and seize opportunities. Investing in your education is as important as investing in properties.

Begin with the End in Mind: Define Your Goals

The first real step to getting your first real estate deal done is defining your goals.

This is crucial because without knowing exactly where you want to go, it’s easy to get off track or buy a property that doesn’t help you reach your destination.

Stephen Covey put it well when he said, “Begin with the end in mind.”

For real estate investing, this means identifying your path to financial independence and figuring out how real estate fits into that picture.

Identify How Much You’ll Need Each Month

Start by determining how much income you’ll need each month to cover your living expenses.

This is your target monthly income in retirement.

Consider everything, including:

• Living Expenses – What will it cost to cover your basic needs and lifestyle in retirement? Is this your bare minimum lifestyle or your ideal lifestyle? I suggest figuring out both.

• Mortgage-Free or Not? – Will your home be paid off, or will you need passive income to cover a mortgage? Will your rentals be mortgage-free or will they have mortgages?

Once you know the number, it’s time to figure out where that money will come from.

Sources of Income

When planning for financial independence, think through all possible sources of income:

• Rental Property Cash Flow – How many properties will you own? How much cash flow do you expect from each property after expenses like mortgage payments (if you opt to have them), taxes, insurance, maintenance, capital expenses, management, and vacancies?

• Investments in Stocks, Bonds, etc. – How much do you have invested outside of real estate? What’s your safe withdrawal rate (SWR) for these investments? Many people use the 4% rule as a guideline, but you may adjust this based on your risk tolerance.

• Annuities – Will you have income from annuities? How much will they produce, and when will they start?

• Social Security – What can you expect from Social Security? How much, and when will it start contributing to your monthly income?

• Pensions – Will you receive a pension? If so, how much and when?

• Other Businesses – If you own businesses, how much income will they produce? Will you still be actively involved, or will they run passively?

Decide on How You’ll Handle Your Properties

Before you dive into real estate investing strategies, you should also know how you’ll handle the properties you acquire.

This is different from the strategy you’ll select next, which will focus on the types of properties and how you make income from them.

Instead, this is about how you plan to manage your assets in the long run:

• Hold for Cash Flow – Are you buying properties now with the intent to hold onto them for rental income when you’re financially independent?

• Sell to Pay Off Other Properties – Are you planning to buy more properties than you need, then sell some later to pay off the mortgages on others?

• Sell and Reinvest – Do you plan to sell your real estate later and reinvest the proceeds into other assets like stocks, bonds, or annuities to generate income?

Each of these paths has different implications for how many properties you’ll need and what types of properties you should pursue.

For example, if your goal is to hold properties for long-term cash flow, you’ll focus on rentals with strong, stable income potential. If your plan is to sell later and shift into different asset classes, you might look for properties that will appreciate well over time for capital gains.

What’s the Plan?

Once you’ve thought through your income sources and how you’ll handle your properties, it’s time to lay out a clear plan for getting there.

Ask yourself:

• How Many Properties Do I Need? – Based on the cash flow each property will produce, how many rentals will you need to cover your monthly income target? You’ll get better at estimating these numbers as you start analyzing deals and even better as you start owning properties. But start where you are with a best guess and tweak it over time.

• What Type of Properties Should I Buy? – Single-family homes, multi-family properties, or commercial real estate? Different property types offer different opportunities for cash flow, appreciation, and risk.

• When Do I Want to Be Financially Independent? – Do you have a timeline for reaching your goals? Setting milestones along the way will help keep you focused. Right now, we’re going to be focusing on getting your first deal done. But there’s always the next deal and the next stage in your journey.

By defining your goals and creating a plan, you’ll be able to make smarter decisions about which properties to buy.

You’ll know if a property moves you closer to financial independence or if it’s just a distraction.

Before you buy your first property, take the time to plan out your financial future. With a clear goal in mind, every deal you make will bring you closer to financial independence.

Choose Real Estate Investing Strategy

When choosing your real estate investing strategy, remember that you’re going to create a plan. That plan is just a guide. It’s not a set of unchangeable rules. Over time, as you gain experience and as the market evolves, you’ll adapt your strategy as needed.

There are several major groups of strategies in real estate investing. Each one offers different benefits and risks, so it’s important to understand them before deciding which path to take. Here’s a quick overview of each:

• Buy and Hold – A long-term strategy where you purchase properties to rent out and generate steady cash flow and appreciation over time. This is a popular strategy for those looking for passive income and long-term wealth building.

• Nomad™ – A strategy where you buy a property as an owner-occupant, live in it for at least a year, then move out and turn it into a rental. This allows you to build a rental portfolio with lower down payments through owner-occupant financing.

• House Hacking – You buy a multi-unit property (like a duplex or triplex) or a home with extra rooms, live in one part, and rent out the other. The rental income can cover some or all of your mortgage, helping you build equity and cash flow.

• Short-Term Rentals – This strategy involves renting out properties on a short-term basis, often to vacationers or business travelers. Platforms like Airbnb make this easier, but it does require active management and higher turnover.

• Quick/Turn Flip – You buy properties, typically those that need repairs, fix them up, and then sell them for a profit. The key here is speed. The quicker you can sell, the less you pay in holding costs like mortgage payments and taxes.

• BRRRR – Stands for Buy, Rehab, Rent, Refinance, Repeat. You purchase a distressed property, fix it up, rent it out, then refinance to pull out your initial investment and use those funds to buy the next property. This strategy helps you build a portfolio without tying up all your capital.

• Real Estate Entrepreneurship (Creative Financing) – Involves using non-traditional financing methods like seller financing, lease-options, or subject-to deals. It’s a more creative way to invest without needing a lot of upfront cash.

Each of these strategies offers different ways to build wealth through real estate. Some focus on long-term cash flow, while others emphasize short-term profits. You’ll also find that some strategies require more hands-on management than others.

Let’s look at some of the more common variations on each strategy and how they might fit into your real estate investing plan.

Buy and Hold

Buy and hold investing comes in several variations, each offering unique opportunities for cash flow and appreciation.

• Traditional Rentals – A long-term strategy where investors rent out properties to generate steady cash flow and appreciation over time.

• Short-Term Rentals – Renting properties on a short-term basis, like vacation rentals, often yielding higher returns but requiring active management.

• Medium-Term Rentals – Targeting tenants who need housing for one to six months, offering a balance between stability and higher returns.

• Student Rentals – Renting to college students, often per-room, offering higher returns but with increased turnover and property wear.

• Storage Units – Investing in storage facilities, providing stable income with lower maintenance costs compared to residential properties.

• Assisted Living – Investing in properties for elderly care, offering housing and services with potential for higher returns, but requiring specialized management.

• Mixed-Use Properties – Combining residential, commercial, and/or industrial spaces in one building, allowing for diversified income streams and risk mitigation.

Nomad™

Nomad™ is a flexible strategy that allows you to build a rental portfolio by purchasing properties as an owner-occupant and converting them into rentals over time.

• Nomad™ by Proxy – A variation where someone else moves into the property on your behalf, allowing you to follow the Nomad™ strategy without having to personally move into each property.

• Nomad™ with House Hacking – Reside in one part of the property while renting out the rest, helping cover your mortgage and build equity faster.

• Nomad™ to Short-Term Rental – Convert your Nomad™ property into a short-term rental after moving out, maximizing income potential.

• Nomad™ with Lease-Option Exits – Provide your property as a rent-to-own option, allowing tenants to buy while you continue to grow your investment. This is especially powerful for those with limited down payments, as it can provide unlimited down payments after the first property.

• The Ultimate Real Estate Agent Retirement Plan™ – Tailor the Nomad™ strategy specifically for real estate agents to create a steady income stream for retirement.

House Hacking

House hacking is a versatile strategy that allows you to live in a property while generating rental income to offset your living expenses.

There are several ways to approach house hacking, depending on your goals and the type of property you choose:

• Traditional House Hacking – Traditional house hacking involves buying a multi-unit property, such as a duplex, triplex, or fourplex, and living in one of the units while renting out the others. The rental income can cover a portion—or even all—of your mortgage, making it an excellent way to get started in real estate investing. This approach allows you to manage your property while also gaining valuable experience as a landlord.

• Nomad™ with House Hacking – This variation of house hacking combines the Nomad™ strategy with the traditional house hacking approach. You start by buying a property as an owner-occupant, typically with favorable owner-occupant financing. You live in the property for at least a year while renting out additional units or rooms. After meeting the lender’s requirements, you move to a new property and repeat the process, turning the original property into a rental. This strategy lets you build a portfolio of rental properties with minimal down payments, all while gaining firsthand experience.

• House Hacking with Traditional Buy & Hold – In this approach, you combine house hacking with independently investing in buy-and-hold properties. You manage your house hacking property while simultaneously acquiring and managing additional rental properties using a traditional buy-and-hold strategy. These two approaches run in parallel, allowing you to build a diverse portfolio.

• House Hacking with Short-Term Rentals – For those in areas with high tourist traffic or strong demand for short-term accommodations, this variation involves renting out parts of your home on platforms like Airbnb. You might rent out a spare room, a guest house, or even the entire property while you’re away. This strategy can provide higher income than traditional rentals, but it also comes with more turnover and management responsibilities. However, it can be an excellent way to maximize your rental income while still living on the property.

Short-Term Rentals

Short-term rentals offer a variety of ways to generate higher rental income by catering to travelers and short-stay tenants.

Here are a few different approaches you can take:

• Traditional Short-Term Rentals – Maximize your rental income by renting out your entire property for short stays. Attract vacationers and business travelers who are willing to pay premium nightly rates.

• Part-Time Short-Term Rentals – Earn extra income from your primary residence whenever you’re away. Whether you’re on vacation or during local events, this approach allows you to monetize your home without fully committing to the rental market.

• House Hacking with Short-Term Rentals – Live in one part of your property while renting out another as a short-term rental. Whether it’s a spare room, basement, or guesthouse, this strategy helps you offset your living expenses with rental income while still enjoying your own space.

• Nomad™ to Short-Term Rentals – Start by living in a property as your primary residence, then transition it into a short-term rental when you move on to your next home. This approach lets you leverage owner-occupant financing while gradually building a portfolio of high-yielding short-term rentals.

• BRRRR to Short-Term Rentals – Combine the powerful BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) with short-term rentals to amplify your returns. Buy a property at a discount, renovate it, and rent it out as a short-term rental to maximize cash flow. Refinance to pull out your investment, and repeat to quickly build a portfolio of profitable properties.

• Medium-Term Rentals – Offer weekly or monthly stays to cater to traveling professionals, students, or those in transition. This approach provides flexibility and potentially higher returns than traditional long-term leases, without the need for constant tenant turnover.

Quick Turn/Flip

Quick turn or flipping strategies are all about buying a property, adding value, and selling it for a profit in a relatively short time.

Each variation comes with its own approach to how you buy, improve, and sell the property:

• Traditional Flipping – This is the most common form of flipping. You buy a property, usually one that needs significant repairs or updates, fix it up, and then sell it as quickly as possible for a profit. The key here is speed; the faster you can sell, the less you’ll pay in holding costs like mortgage payments and taxes.

• Live-in Flips – With this strategy, you buy a fixer-upper, live in it while making improvements, and then sell it. This can be a great way to turn your primary residence into a profitable investment without needing to rush the renovations. Plus, you get to enjoy the upgrades yourself while you live there, usually after a rougher period in a property that needs repairs.

• 2-Year Tax Advantaged Live-In Flips – This approach is a twist on the live-in flip, but with a tax advantage. If you live in the property for at least two years, you can potentially avoid paying capital gains taxes on the profit when you sell, thanks to the IRS’s primary residence exclusion. This makes it a smart long-term strategy if you’re looking to minimize tax liability.

• Seller Partnership Flips – Here, you partner with the seller, often someone who can’t afford to fix up the property themselves. You provide the funds and expertise to renovate the property, and then split the profits with the seller once the property is sold. This can be a win-win, giving you access to properties you might not otherwise find while helping the seller get more out of their property.

BRRRR

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) can be adapted to different property types and rental approaches, offering flexibility depending on your goals and location. Here are a few variations to consider:

• Traditional BRRRR – This is the classic approach where you buy a property, renovate it, rent it out for long-term tenants, refinance, and then repeat the process. It's a great way to build a portfolio of cash-flowing properties.

• BRRRR to Short-Term Rentals – Instead of long-term tenants, you convert your BRRRR property into a short-term rental. This can potentially yield higher returns, especially in tourist-heavy areas or cities with frequent business travelers.

• Property Type Variations – BRRRR isn't limited to single-family homes. You can apply this strategy to duplexes, triplexes, fourplexes, and even small apartment buildings. Each property type offers unique advantages and challenges.

• Local vs. Remote BRRRR – You're not limited to your local market because you’re not typically moving into the properties like you would with house hacking or the Nomad™ real estate investing strategies. BRRRR allows you to invest in properties across the country, opening up opportunities in markets with better deals, more plentiful deals, and/or higher potential returns.

• BRRRR for Other Property Types – While less common, you can apply the BRRRR strategy to commercial, industrial, or retail properties. This variation requires more specialized knowledge but can lead to significant returns.

Real Estate Entrepreneurship (Creative Financing)

Creative financing allows you to think outside the box when acquiring real estate, giving you options beyond traditional bank loans. These strategies can help you buy properties with less money down or under more flexible terms.

Here are a few common variations:

• Owner Financing – The seller acts as the lender, allowing the buyer to make payments directly to them, often with flexible terms.

• Wrap Financing – A type of seller financing where the new loan “wraps” around an existing one, often used in pre-foreclosure scenarios.

• Loan Assumption – The buyer takes over the seller’s existing mortgage, usually at a lower interest rate than current market rates.

• Rent-To-Own/Lease-Option – The buyer rents the property with the option to purchase it later, often with a portion of rent applied to the purchase price.

• Agreement-For-Deed Family – A legal agreement where the buyer makes payments to the seller and receives the deed only after full payment.

• Subject To – The buyer acquires a property subject to the existing mortgage, keeping the original loan in place.

Each of these creative financing strategies offers unique ways to structure a deal, making it possible to invest even when conventional financing isn't available.

Find a Real Estate Agent

You’ll want to start by finding the right real estate agent or broker, especially if you’re not buying off-market.

Your agent will likely be your first and most important Real Estate Investing Dream Team member, connecting you to other key professionals like mortgage brokers and inspectors.

Choose an agent who understands real estate investing and your strategy to help you find deals that align with your goals.

What to Look for in an Agent

Not all real estate agents are experienced in working with investors. You’ll want to find someone who knows the local market well and has experience working with real estate investors.

Here’s what you should look for in an agent:

• Experience with Real Estate Investors – Make sure the agent you select understands real estate investing. They should have experience working with investors like you, whether you’re focused on buy-and-hold, house hacking, or flipping. They’ll know how to spot good deals and help you navigate the complexities of real estate investing.

• Understanding Your Strategy – Your agent should understand your specific investment strategy. Whether it’s buy-and-hold rentals, Nomad™, or short-term rentals, they should be able to help you find properties that align with your strategy and financial goals.

• Knowledge of Local Markets – A good agent knows the local market well, including the neighborhoods and trends. They’ll have insight into which areas are growing, what kinds of properties are in demand, and what rents or appreciation you can expect.

• Strong Negotiation Skills – Real estate investing often involves negotiation, and your agent should be a skilled negotiator. They’ll help you get the best possible deal on the property and guide you through the offer process.

• A Network of Key Contacts – Your real estate agent should have a strong network of other professionals like mortgage brokers, inspectors, contractors, and property managers. This network can help you move quickly on a deal and get the support you need at different stages of the process.