From Demo Day to Payday: The Playbook We Wish We Had
By Chase Calhoun
If you caught our latest Relentless Growth episode—“Our First Real Estate Deals: Profits, Pitfalls & What We’d Do Differently”—you already watched Jack Maher and me drag our very first projects out of the archives (numbers, cringe-worthy missteps, possum-sized surprises and all). Below is the expanded playbook I wish someone had handed me before I swung a single demo hammer.
1. Know Your Exit Before You Enter
Every line item flows from the finish line. On Day 1, ask yourself: “How will we refinance or dispose of this—and at what cap rate?” A ½-point exit swing can vaporize thin spreads, so run a quick sensitivity grid before you ever draft the offer.
2. Five Mistakes We Paid to Learn
- Financing first, math second. Low down-payments looked sexy—total cost of capital didn’t.
- DIY overload. Swinging every hammer saved pennies, cost months.
- Under-scoping renos. We budgeted like HGTV, not like GC bids.
- Rent comps on wishful thinking. Granite ≠ $200 premium in a C-class ZIP.
- No written systems. Every decision lived in our heads; scaling was brutal.
3. Five Plays That Still Print Money
- Buy near job anchors. Hospitals & universities shield vacancy.
- House-hack the project. Living in it cut living costs by ~30 %.
- Early construction vocabulary. Knowing “lag bolt” from “Tapcon” keeps bids honest.
- Local-bank relationships. Community lenders now fund eight-figure lines.
- Document everything. Photos & spreadsheets from Deal #1 still fuel our content engine.
4. Redoing the Deal in 2025? Adjust Here
- Stress-test 0.75 % higher exit cap rates than today’s broker whisper.
- Rate caps on bridge debt—volatility’s not done.
- Material quotes in writing (30-day lock). Lumber bids swing like crypto.
- 10–15 % contingency. Industry averages run $95–$220 / sq ft for duplexes (national mean ≈ $130 / sq ft).
5. Bottom Line
Your first deal will never be perfect—but if you debrief it ruthlessly, it can bankroll a lifetime of better ones. Nail your exit strategy, over-communicate with lenders and subs, and document every lesson for the next property.
6. Dig Deeper
➔ Watch the full episode on YouTube
➔ Join the Relentless Growth Insider list for subscriber-only case studies and early access to new BTR projects hitting the pipeline this summer: Join Our Mailing List
See you out there—keep grinding, keep learning, and as always… stay relentless.
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