Let’s Talk About Harsh Reality For a Minute
There are so many great articles about how to be successful here on BiggerPockets, and all the gurus say it’s easy to make millions! I am a very positive thinker, but I also like to know about the harsh realities of anything in life. If there is a tremendous upside, there is always a risk that must be taken. If there was no risk, it would be “too good to be true,” and everybody would be doing it! It is the risk-taking, and our individual risk tolerance, that sets us apart from each other in business. What if that risk does not work out in your favor? What is the reality of that, and what do you do? If you invest in RE long enough, eventually you will make a misstep that costs you money.
When that happens, what do you do?
We Couldn’t Fail, or Could We?
In 2009, we had been investing for about a year. We had 3 successful deals under our belt -the first netted us around $17K, the next was $33K, and the next about $70K. Wow, we were on a roll, or so we thought. An agent presented a property to us in an unfamiliar area that was about an hour away. It was in a great neighborhood consisting of newer houses less than 20 years old but, to be blunt, the owner of this home was a slob. Dirt and crap from one side of the house to the other.
She was a hoarder in a nice neighborhood.
The agent told us we could buy, clean out, do minimal work, and get out for a clean $25K profit. Sounds good right? After all, it was going to be an easy, quick flip! HA! BTW, when someone tell …read more