The First Deal is the Hardest
At The Hard Money Co., we prefer to work with experienced investors. It makes the deal cleaner, the execution smoother, and the outcome more predictable. But we also know that everyone has to start somewhere.
No one wakes up with a real estate portfolio. You have to earn it, one deal at a time. The first one is usually the hardest. It’s where everything is new, where the pressure is high, and where the mistakes hit the hardest. But it’s also where you prove your worth. If you want to build wealth through real estate, there’s no way around it. You have to do that first deal.
So what makes that first one so tough? And how do you overcome it?
Facing Stricter Terms on Your First Deal
When you’re a first-time investor, everything is uphill. The terms are tighter. The down payment is larger. The lender is asking for more documentation and more reassurance. You don’t have a track record yet, which means you haven’t earned trust. So yes, you’re going to need more skin in the game.
That might mean saving up for longer than you’d like. It might mean taking on a partner who brings the experience to get the deal over the line. Or it might mean bringing in third-party passive investors in the form of friends, family, or others who want exposure to real estate without doing the work.
Whatever the approach, the solution is the same. Come to the table with more. More capital. More preparation. More clarity about your plan.
You Don’t Have a Proven Team Yet
This is one of the biggest blind spots for new investors. You think you’ve got a good contractor. You’ve seen their work, maybe even gotten a solid quote. But you haven’t worked with them under pressure. You don’t know if they’ll show up when they say they will. You don’t know how they’ll handle surprises, or whether they’ll hit your deadlines without sacrificing quality.
The reality is that even good contractors can burn you. It’s not always intentional. Sometimes they get pulled to another job. Sometimes they underbid and try to make it up later. Either way, first-time investors often don’t have the relationships or experience to spot red flags early or fix things mid-project.
You need to build in contingency both in time and money. Expect the project to take longer. Budget for overages. Most importantly, don’t just build the relationship during the project. Get to know them ahead of time. Ask around. See what they’re working on. Get a feel for how they operate before you stake your deal on their performance.
You Don’t Know What You Don’t Know
This is the part no one warns you about. When you’re new, the biggest issues are the ones you can’t see. You might underestimate holding costs. You might miss a permit requirement. You might assume your ARV is right because a realtor said so, but comps tell a different story. These aren’t hypothetical mistakes. They’re real, and they cost real money.
The only way around this is to ask questions constantly. Rely on your lender, your title company, your agent or anyone who has done this before. Walk deals with more experienced investors. Pick their brains. Take notes. Build a checklist. Turn every mistake into a lesson and every lesson into a system.
You don’t need to be perfect. You need to be coachable. That’s what gets you to deal number two.
Close One. Then Keep Going.
The first deal won’t make you rich. It will probably be the most stressful deal of your career. But it’s the one that gets everything moving.
This is where you prove you can show up, make hard decisions, and finish what you start. Once you do that, everything gets easier. Lenders trust you more. Contractors call you back. Partners want in. Momentum kicks in.
You just have to get that first one done. So submit your application today to The Hard Money Co. and let’s get started.
