The first deal is the toughest. Nobody wants to do your first deal.
Do you know what you are doing? Nobody including you know, and nobody wants to find out.
So what if you don’t have experience in Real Estate, have no deals under your belt, and still want to get in what do you do? If nobody will give you a chance, how do you get the first deal done?
Everyone knows someone in Real Estate and has heard the success stories, and thought, “I need to do that”. But who knows the hard work it takes to get in, find capital, find a deal and make it happen? How many have done their first deal?
To hear how Jonathan Twombly made it from an unhappy New York Lawyer through his first deal and now a successful Real Estate Asset Manager, check out my interview with Jonathan Twombly of Two Bridges Asset Management.
Jonathan’s story is full of all the behind the scene noise and hurdles that new investors face and why so many are unable to get in.
Who to work with:
Jonathan’s relationships lead him to multiple partnerships enabling him raise capital, find the professionals that lead to the off market opportunities that are saved for proven investors.
Jonathan continues to find that relations with professionals are key to success in real estate.
Where to invest:
Knowing the data can go a long way to minimizing the risk involved. Is the area population growing?
What is the local industry?
What is the Unemployment rate for the area?
Are local employers looking for employees?
What is the demand for housing?
What is being built in the area?
Are there multiple opportunities that you can invest in to take advantage of economies of scale?
What to invest in:
A, B, C, D class real estate?
The news is full of stories about how new class A lifestyle towers are being constructed all over. What are the new projects for working class housing, class B & C?
By looking at the data, Jonathan was able to identify an area with strong population growth, good employment opportunities and no new multifamily construction projects in the plans.
Knowing the area, and having the first deal under his belt, Jonathan is now receiving calls from local brokers looking for buyer of off market deals, and providing the needed information in order to grow the portfolio. The ability to add units in proximity to the first property have provided the opportunity for additional savings and economies of scale.
Jonathan’s experience has been instrumental to setting his course for success. Be sure to check out his blog: http://www.themortarblog.com/