The First Deal
Any GP's here who broke off from the corporate world and went off on their own have any insight on how they did it and what it took?
Struggling a bit internally with this topic because I have committed capital to go off on my own but am very comfortable in my current role.
also interested
Bump
I did my first deal in 2017 and to date I have done 6 deals total. I still have my corporate job and so far have been able to manage things fairly successfully. If you are asking for advice I would suggest you just start hanging some skins on the wall and not worry about master planning your real estate goals. I spent way too long doing that. I eventually took inventory of how much equity I could bring to a deal via friends/family & whatever cash I had saved at the time. Then I tried to buy the best possible asset in my market that I could afford and have been doing that for the past several years. My plan is to keep playing small ball until I feel like I’m ready to move into larger assets with a larger equity raise. I think I could quit my job now and be ok but there is a certain level of confidence that translates into the workplace when you have a legitimate business being built in your spare time. I will probably move over full time within the next few years if things continue to build.
Nice. What type and size of deals do you focus on? Also, how long did it take you to feel confident enough to do your own deals?
Deal #1 - Duplex $375k
Deal #2 - 6-Unit building $630K
Deal #3 - Small mixed use building (1,800 sf bottom floor retail with two 2bd/2ba apartments on second floor) $920K
Deal #4 - 10 Unit building $1.2M
Deal #5 - Bought a parcel from a friends grandfather and did a ground lease with Urgent Care $500k (Land + Improvements)
Deal #6 - Actually still in due diligence but closing early January on RV park $650K
Working on it currently but the challenge in my market is simply that prices have increased 3 to 5x in the past 10 years.
The risk with going too far out of my market is just the challenge of managing something that isn't close by
Expedita et officia iure qui quos hic est. Tenetur aperiam consequatur iure dolorum. Voluptas occaecati delectus animi sint.
Explicabo quo ipsa ullam ut porro odit. Dolorem expedita facere nisi optio excepturi eius tempore voluptatem. Quo enim consequatur aperiam itaque facere ipsum eligendi. Repellendus recusandae autem rerum.
Exercitationem maxime minima dolorem nobis ut. Blanditiis vel dolores debitis sint inventore ducimus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...