How One Investor Made $190,000 Equity on a Single Real Estate Project (And Four Tips for New Investors)

New investors can easily be overcome with fear when faced with challenges, preventing them from going all-in in property investing. Learn what it takes to be a successful and fearless investor.

With the right investing strategy, just one investment property can generate a significant amount of equity. And one shining example of that is the experience of one of the investors who worked with us.

This investor now expects to see $190,000 in equity from a single property once the project reaches completion. But prior to that, she had done another deal wherein the results were a far cry from those figures - it was nowhere near that amount of equity.

Such a result can easily deter a new investor from moving forward in their property investing journey.

But where some people would have given up, she pressed on. She created a game plan and stuck with it. And soon, she’ll reap the rewards of doing so.

This investor is proof positive that even if you start small, it’s absolutely possible to earn big through property. Perseverance is key to success in this industry. Couple that with the right strategy and you can generate a lot of equity even from modest investments.

Are you ready to set yourself up for successful real estate deals? The following four tips will serve new investors just as well as the seasoned ones.

The Four Important Tips

Tip #1. Don’t Expect Your First Deal To Make You An Instant Millionaire 

One mistake that’s common to real estate investors is that they look for the big wins, especially in the beginning. The common belief is that landing the biggest deal on your first try is what will put you on the path to success.

To some extent, there’s truth in that.

Your first deal is your most important one because it’s the one that gets you established. It’s also the one that gets you in the game. You can even consider it as the cornerstone of your portfolio.

But, it’s not the one that’s going to turn you into an instant millionaire. 

It’s the one that’s going to start you off on your journey to becoming a millionaire. And that’s why it’s so important.

And as you start building up your portfolio, that’s when you start getting big results. But you have to make a start sometime, or it’ll never happen, and that’s why the first one is the most important.

It’s not important that your first deal is one that immediately generates hundreds of thousands of dollars each month. What’s vital is that it’s a very solid one that doesn’t go backward - safety first. 

But just because your first deal isn’t perfect doesn’t mean it’s a bad one. 

Your first deal can still build equity and act as a teachable moment in time. You’ll discover what to look for in terms of scalability and help you understand the numbers better.

Even if you don’t find something perfect, you can still gain experience and momentum. Investing in real estate means accumulating equity in more than one property, after all. So not having that perfect first deal is fine. 

What’s more important is to get through that first deal to get your portfolio started. There’s time to score much better deals further down the line.

Tip #2. Don’t Give Up When the Going Gets Tough

Investing in real estate is, in a way, similar to running any other business. Some assets will make more than others, while some could also lead to a loss. 

However, it will all balance out in the end if you stick with the right strategy. 

It’s not uncommon for one investment property to end up generating minimal equity. But if you have a sound strategy, some other properties in your portfolio will generate a lot more and make the overall return worthwhile.

The biggest advantage of our BRRRR real estate strategy is this: 

You can own an investment property with minimal money invested.

As long as you own something, you can get a cash flow going monthly. 

But here’s the thing, it can take a little time for the cash flow to build up. That’s why giving up too soon is a mistake that can prevent you from getting your portfolio off the ground.

Tip #3. Pick a Single Strategy

Here’s another piece of advice that will help you succeed where others fail:

Put your blinders on and stay on track.

The reality is that there isn’t one way to invest in real estate - you have quite a few methods and strategies at your disposal. However, building a profitable portfolio and employing several investment strategies to do so are two different things.

What you want to do is to figure out the best strategy for your unique situation and goals. Choose one path to go on and then put your blinders on to see it through.

When you’ve worked out what your goal is and what your strategy is, you stick to that strategy. Even if a deal looks good to you at first glance, you must ignore it if it doesn’t align with your goals and strategy. 

This is where people tend to make mistakes. 

They do things in a hurry because, suddenly, they think they’ve found an amazing deal. So, they skip their due diligence and get excited by the new shiny thing, instead of sticking with the strategy.

Stick with your strategy and you’ll get there. Jump around, and you drastically increase the chances that you make a mistake and sabotage your plan. 

I’ve seen plenty of investors lay out an excellent strategy, only to ruin it all by adding in a deal that isn’t in alignment. 

Suddenly, their finances are tied up and they get bogged down doing a renovation. And they end up with not enough excess capital to get into their next proper deal on schedule. 

Find other ways to deal with distractions, rather than altering your strategy to overcome every little bump in the road.

Tip #4. Find a Mentor Who Believes in You

New real estate investors often struggle to find the right advice. 

As you know, there’s an oversaturation of investment gurus on social media. Some of them are good, but some aren’t. And just because a guru knows the industry inside out doesn’t make them a great fit for you.

When looking for someone to mentor you and help you build wealth, it’s important to find someone you can believe in as much as that person can relate to your situation. Of course, they have to believe in you as well.

Finding the right mentor will be one of your biggest challenges when starting out. But in the grand scheme of things, it’s probably the most crucial decision you can make. Maybe even bigger than your first investment property.

Getting a mentor who believes in you and wants to see you succeed can give you the foundation you need to become a successful real estate investor.

Make the Right Decisions Early On

You can’t go through anything in life without meeting some challenges along the way. 

Real estate investing is no exception. But the way you approach and deal with the hurdles sets the tone early on for the type of investor you will become.

If you adopt the right mindset from the jump, you’ll eventually get to where you want to go. That’s why it’s important for you to find the right mentor before you start developing a strategy.

You can expect some of your deals to be less than perfect, especially your first one. But remember that perseverance is the main ingredient of building wealth, not getting the perfect deal immediately.

Stick with your gameplan and your portfolio will thank you for it.

If you need more help, don’t hesitate to reach out.

Set up a strategy session for our coaching program: The Portfolio Program – https://www.openspaceswomen.com/bookcall