The truth is that everyone doing real estate deals will sometimes fail. How to deal with real estate deal failure?
It has happened to Donald Trump and Robert Kiyosaki have failed a number of times as well. So have I. Have you? Become vulnerable and learn to admit it, suck it up and move forward :). Leave me your comments below.
Why do deals fail?
Sometimes it can be lack of due diligence, a changing market or economy, maybe a black swan type event or working with someone who has zero integrity.
But everyone does fail at some point. If they tell you differently then they either have not done a lot of deals or they are not being honest.
What happens when failure hits?
How do you feel?
What do you do about it?
Fear and Failure are powerful but they don’t have to own you or keep you from your goals!
Our very first duplex that we bought in the early 1990s did not go well. It looked so good on paper but we had no clue what we were doing, how to rehab, how to finance, how to manage tenants that it cost me about 10 years of active investing in more deals.
\We let failure dictate 10 years of our lives and I don’t want that to happen to you. Watch my short video below to see what happened to me.
You failed, so what!
Get over it and move forward. How fast you recover is the key, not the actual failure!
Figure out what went wrong and how you can avoid it in the next deal.
Did you not properly analyze the deal?
Did you not have the right financing?
Was your team no good?
Did the house have more wrong with it then you thought?
Did you work with someone you could not trust?
Move past excuses and move onto your next deal.
Failure is a GREAT teacher! It is also a powerful emotion that creates FEAR and prevents investors from reaching their goals!
Watch this video for some inspiration:
I know lots of incredibly talented and successful investors who have failed on 1 deal, 5 deals and more!
The key was figuring out what went wrong (learning from failing) and quickly moving forward to get back on track.
Have you ever had a deal fail? Leave me your comments and thoughts below!
Thanks for your shares to social media connections and sending this to an investor who may feel they have lost out due to a deal failure!
Well said! Fail forward!
No FEAR Lori! Congrats on quitting your job and making it happen this year!
Jim
So, Jim, you are familiar with this story, and thanks for advice and friendship along the way. One of my properties which was a duplex had 2 tenants. Tenant A. was playing the system & me over a period of time when my property manager and I finally decided this tenant had to go…eviction, which then tenant A. called in city inspector (I had not previously dealt with this kind of pain.) – brought in a large learning experience 🙁
At the same time tenant B, who bless their hearts paid on time but kept a less than clean place and brought in bed bugs :–(
By George, this all costs money (which BTW wasn’t sitting in the reserve money jar – like it should have been :-()
At the same time I had been lending $ to a friend for a project where I had to play hardball to retrieve – not pleasant. These stressors all came together at the same time making me feel like the runner on the ground; I confess I didn’t get up as quickly as she did.
Lessons: 1. At some point you will have bedbugs; suck it up. Get better tenants. You may still have bedbugs 🙂 2. Keep extra $ in the $ jar for just this sort of thing. 3. When lending $, do as Quincy Long would do, be willing to foreclose on your mother when payments stop coming, without getting too upset about it 😉
And ~ Proverbs 3: 5,6
Al I have been thinking of you recently and appreciate your vulnerability. Great points you share on the “lessons.”
Going through hard times is not fun, but if you learn and move forward it will usually work out fine in the long run.
Tell Alice hello for us!
Jim
Failure has taught me how to succeed. Through each failure I have been able to find success, and after dealing with failure I’ve developed a tougher skin to deal with it accordingly. Failure has taught me that I’m much closer to success then I realized and after every failure I’ve encountered success was right around the corner! I embrace failure, it’s part of the game!!
Darius – thank you! Great mindset on failure. It will never hold you back from success!
Jim