How I Got Played on My First Real Estate Deal
Buying a $900K property with only 5% down? That’s financial leverage. But in the closing process? I had none.
I was a twenty-something, first-time buyer, scraping together just enough for a down payment. No connections, no industry know-how, no extra cash to fix mistakes. In this game, I was at the bottom of the food chain.
The grueling, three-month closing process on my first property was a crash course in weaponized incompetence, material non-disclosure, and outright legal negligence—a painful reminder that real estate isn’t built to protect buyers like me.
Here’s how I learned the hard way that in real estate, leverage isn’t just about money—it’s about power.
Rule #1: Don’t Get So Focused on Closing That You Miss the Red Flags
By the time I got my first offer accepted, I had already lost out on dozens of deals—beaten by all-cash buyers, investors waiving contingencies, and people who submitted offers before I could even book a showing.
So when my offer finally stuck, I desperately wanted to keep it.
I ignored every red flag. The sellers were slow to respond, conveniently “forgetting” key details and misquoting past agreements. Weeks went by with missing documents, vague explanations, and delay after delay.
I chalked it up to disorganization. It wasn’t. It was weaponized incompetence.
They weren’t unorganized; they were stalling. And time was on their side. The market was shifting, interest rates were climbing, and every delay made the deal worse for me, not them. They fed me just enough progress to keep me from walking away, all while my leverage slipped away—like sand through an hourglass.
Rule #2: Don’t Give Up Your Leverage Until They Deliver
Lawyer review is the last time you have real leverage. After that, backing out usually means forfeiting your earnest money. In my case, that was $15K on the line.
After the inspection, I sent over a reasonable list of fixes—mostly compliance issues:
☑ Replace a missing fire alarm.
☑ Repair a wobbly railing.
☑ Fix a broken step.
Basic safety stuff. The sellers agreed, signed off, and we officially ended lawyer review.
I thought a signed concession was airtight.
Big mistake.
They had no intention of following through. They just needed me to give up my leverage.
Fast forward to the closing table. I asked about the repairs. Their response?
"Oh yeah, we didn’t do any of that."
They knew I wouldn’t walk away. Not after months of waiting. Not with $15K on the line. It would cost me more to back out than to move forward, and they played that leverage against me perfectly.
Rule #3: Don’t Mistake Strategy for Stupidity
I kept making excuses for them—until I couldn't anymore.
At first, I chalked their delays up to bad communication, not bad faith. Numbers weren’t adding up, but I assumed it was incompetence, not intent.
Every time they “forgot” a detail or “misquoted” a number, it somehow always worked in their favor. When I pressed for clarity? Left on read.
Then came the biggest oversight.
The seller had quoted a certain rent roll—the total revenue from all tenants. It was a key number in my pro forma. Everything depended on that being accurate.
Everything depended on that being accurate.
But when I asked for the actual leases?
They “couldn’t find them.”
I was running out of time. Interest rates were rising. I wanted this deal to work so badly that I continued to ignore the warning signs.
Rule #4: If Someone Has Leverage Over You, They Will Use It
There’s no goodwill in high-stakes deals. If they can squeeze more out of you, they will.
Days before closing, I asked my lawyer again:
"Hey, did we ever get those leases?"
Nope. Still “missing.”
At this point, I’d had enough. We told the seller we wouldn’t close until we had signed, verified leases.
And just like that—they magically appeared.
Only now, the rent was $500 per month lower than what they originally quoted.
That’s $6,000 per year gone.
When I called them out, their lawyer didn’t even blink.
"You were going to raise rents anyway. What’s the problem?"
I was pissed. But they had delayed closing long enough that my rate lock was about to expire. If I pushed back again, my 6.6% interest rate would jump to 7.5%, adding another $1,000/month to my mortgage.
They knew exactly what they were doing.
They had me cornered. Take the hit, or watch the deal fall apart.
Rule #5: Know when to walk away
I should have walked away.
But I didn’t. I wouldn’t. I was too deep, too committed, too scared of “losing” the deal I had fought so hard to land. I felt that if I backed out now, I might never find another deal.
So I took it.
I swallowed the $500 rent loss.
I locked in my 6.6% rate.
I told my lawyer: We’re closing tomorrow.
Then came the final insult.
We signed the papers. The deal was done. The lawyers packed up and left.
I called him. No answer.
Called again. Straight to voicemail.
His secretary?
"He’s golfing."
So there I was—out a million dollars, and I couldn’t even open the front door.
Final Takeaway: No Deal is Better Than a Bad Deal
Take the hit. Play the long game.
Real estate isn’t about rules—it’s about leverage. And at the small-scale level, leverage isn’t about what’s on paper. It’s about who actually has the power to enforce it.
What about the contract? Sure, it said they had to make repairs. It said the rent was supposed to be higher. But enforcing that? That takes time, money, and a legal battle that, in most cases, isn’t worth the fight.
I learned quickly that you aren’t just buying a house—you’re negotiating against someone who wants the exact opposite of what you do. The bigger you get, the more weight you’ll be able to throw around. But right now? You’re not Mark Cuban, this isn’t Shark Tank.
Bid your time. Play tight. And don’t let your first few hands wipe you out of the game.
I let my sunk costs, my ego, and my fear of losing push me into closing on a deal I should have walked away from. But real estate isn’t about effort—it’s about the deal making sense. If the numbers don’t work, walk away. No deal is always better than a bad one.
There will always be another deal. Just make sure you’re still in the game when it comes.
What Comes Next
Next week, I’ll break down how I turned a bad deal into a cash-flowing property in under 18 months. The catch?
I had to invest another $60K just to make it work.
Follow along. This is just getting started.
