‘It is in your moments of decision that your destiny is shaped.’
–Tony Robbins
In my experience, once you truly decide to pursue multifamily investing, it will take 3 to 18 months to do your first deal. In 3 to 5 years, you will have replaced your income and quit your job. And the entire process is set in motion via the Law of the First Deal.
Today, I’m unpacking the powerful Law of the First Deal. I start with its basic principles, offering case studies of podcast guests who were able to replace their income within 3 years and quit their jobs via multifamily investing. I explain why the Law of the First Deal works, describing how investors become deal (and money!) magnets soon after their first closing.
Finally, I walk you through the steps necessary to develop a concrete plan, calculating how long it will take to quit your job—based on your individual Rat Race Number. Listen in for insight on how to leverage the Law of the First Deal to replace your income with multifamily!
Key Takeaways
The principles of the Law of the First Deal
- First deal is smallest, most difficult
- Second and third follow in rapid succession
- Replace income within 2 to 3 years
Case studies of the Law of the First Deal
- Drew Kniffin: 12 months to replace income
- Brad Tacia: 2 years to replace income
- Tyler Sheff: 12 months to replace income
- Joseph Gozlan: 2½ years to replace income
Why the Law of the First Deal works
- Magnet for deals, brokers approach with pocket listings
- Magnet for money, investors who missed out want in
- Deals get bigger as comfort zone expands
How long it takes to quit your job
- Determine average income per unit
- Establish how many units you need to cover living expenses
- Determine how long it will take
- Determine size of first deal
The typical Law of the First Deal timeline
- First deal in 3 to 18 months
- Second deal within 6 months
- Third deal within 6 months
- Total of 1 to 3 years
The value of establishing a concrete plan
- Focus on first deal, avoid overwhelm
Resources
ABI EP027 Drew Kniffin
ABI EP 073 Brad Tacia
ABI EP072 Tyler Sheff
ABI EP078 Joseph Gozlan
Financial Freedom Summit
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
