If you’ve been stuck in single-family investing and feel like you’re hitting a ceiling, you’re not alone. I’ve seen countless investors struggle with the transition to multifamily, feeling unsure about what to say to brokers, how to find deals, and whether investors will take them seriously.
But here’s something I’ve noticed in my students doing multifamily: once you close your first deal, the next ones come much easier.
This is what I call The Law of the First Deal. It’s the hardest one to get, but once you do, momentum builds, brokers take you seriously, investors start to trust you, and the next deals come faster and bigger.
You Feel Stuck Because You Don’t Have Any Experience
So many investors I talk to feel stuck at the starting line. You might be asking yourself:
- How do I talk to brokers confidently?
- How do I convince investors to trust me if I haven’t closed a deal yet?
- How do I even get my first deal under contract?
Six months ago, one of my students, Eli Grunberger, had the same questions. He worried about knowing what to say, how to show confidence, and whether he could really pull it off. Fast forward six months, and he was invited by a broker to submit an offer—proof that all his groundwork was paying off.
What It Takes to Get That First Deal
There are key steps every investor must take to break through and land their first deal:
1. Build Your Team Early
Before you even start making offers, you need a solid team in place. This includes:
- A property manager who knows the market
- A real estate broker who takes you seriously
- A lender who is ready to finance your deal
Brokers don’t take you seriously unless they see you have a team behind you. When my student got invited to submit an offer, it was because he had already built relationships and assembled his team.
2. Talk to Brokers with Confidence
Many new investors worry about how to talk to brokers. But the key is positioning yourself correctly. You don’t need to have a track record; you need a team with a track record.
Instead of talking about yourself, talk about the experience of your property manager, lender, and anyone else on your team. Now it’s not about what you haven’t done, but the focus is on your team. The broker will be thinking, “If this guy is working with all these professionals, he must be serious.”
3. Overcome Investor Objections
One of the biggest fears new investors have is how to convince investors to trust them. If that’s you, you’re not alone! Many potential investors don’t understand how multifamily syndications work. It’s your job to educate them.
One of my students was on a plane talking to a successful entrepreneur. She had never considered real estate investing and thought it was risky. Instead of convincing her, he simply explained the benefits—cash flow, tax advantages, and appreciation. By the end of the flight, she was open to learning more.
That’s how you start building relationships with investors: Educate them.
Over the long term, real estate beats stocks. If you compare 20- or 30-year returns, the stock market averages about 8%, but that doesn’t account for fees, taxes, and inflation. Real estate, on the other hand, offers steady cash flow, appreciation, and tax benefits that significantly boost returns.
Why Your First Deal is Inevitable
The Law of the First Deal states that once you close your first deal, everything changes. Brokers take you seriously. Investors see you as experienced. And most importantly, your confidence skyrockets.
Eli, the student I was talking about at the beginning of this blog, was worried that he wasn’t making progress, but after six months of effort, he was submitting offers and talking to investors.
That’s the reality—every step, even the small ones, bring you closer to your first deal.
The biggest mistake you can make? Doing nothing. The first deal is always the hardest, but once you get it done, everything changes.
If you’re ready to break through and make your first deal happen, check out my free training here:
To your success,
Michael Blank