With the 2024 Paris Olympic Games underway, we’re enamored with the Olympian spirit. Truly, fewer people are more resilient and dedicated on the planet! But as hard as these athletes train with blood, sweat, and tears, not everyone will win the gold. There will be failure and heartbreak.

But still, there may be glorious comebacks in the future.

Real estate investors could all learn a little something from our Olympians. Resilience in the face of setbacks, disappointments, and failure is necessary for flourishing in any pursuit. Failure may be painful, but it’s often required for true, lasting growth.

Let’s talk about why failing as a real estate investor is so valuable.

Remember: We Already Failed FOR You.

For over twenty years, we’ve taken our fair share of lumps as a turnkey company. There was a learning curve. It took time to refine our systems and solidify our vision. Success didn’t happen overnight! There was trial and error, triumphs and failures, mistakes and happy accidents. Our past struggles are for your benefit.

Passive real estate investors leverage their turnkey partner’s experience – the good, the bad, and the ugly. That means even new, inexperienced investors can avoid costly mistakes. Failure can be beneficial…but if you can learn those lessons without the pain, you should!

Further Reading: What Exactly Do Turnkey Real Estate Companies Do (And Not Do)?

10 Reasons Failure Can Be a Good Thing

Reason #1 – Learning Opportunities

Failure is all about mindset. If you see it as an end or a defining part of who you are, you won’t be able to move forward. But, mistakes and setbacks can teach investors what to avoid and how to improve their strategies. It’s about maintaining a growth mindset. For example, a failed investment can highlight the importance of thorough due diligence or the need for better market research. You can identify and address weak points by exposing what didn’t work.

Reason #2 – Resilience Building

Perfectionists are often paralyzed by the need to get everything right the first time. Not only is this unrealistic, but it can prevent them from taking chances. Investing is never a sure thing. If you only do what you know you’ll succeed at, how will you ever reach your full potential? Suffering through failure helps build resilience. Real estate markets can be volatile, and setbacks are inevitable. Learning to recover from failures helps investors develop the mental toughness to navigate challenges. After all, fair-weather investors don’t make it very far. Resilience prepares you to push through adversity.

Reason #3 – Risk Management

Failures can expose flaws in your risk management strategies. By analyzing what went wrong, we can identify potential risks we haven’t considered and implement measures to mitigate them from now on.

Reason #4 – Innovation and Adaptation

Failure often forces investors to think creatively and adapt their approaches. This can lead to innovative solutions and strategies they might not have considered if everything had gone smoothly. They say creativity thrives in adversity. Challenges force us to think beyond what we already think we know. Adaptability will help you flourish across markets and investment assets while overcoming roadblocks with agility and confidence.

Reason #5 – Realistic Expectations

Success in real estate is not guaranteed. The path to financial freedom can be complex and fraught with challenges. The investors that fall the hardest are the ones that go in with utterly unrealistic expectations. Failure teaches us to ditch the rose-tinted glasses and to better contend with the harsh realities of the business.

Reason #6 – Networking and Collaboration

We all vent when things go wrong. Use that impulse to network and glean wisdom from more experienced investors! You may find valuable mentorship and collaborative opportunities.

Reason #7 – Humility and Patience

Failure fosters humility and patience. It’s a reminder that we don’t have it all figured out. We’re not perfect. These lessons transform us into life-long learners willing to give our investments the necessary time.

Reason #8 – Better Decision-Making

Learning from past failures can improve decision-making skills. Investors become more cautious, analytical, and strategic, leading to more informed and effective decisions.

Reason #9 – Identifying Strengths and Weaknesses

Self-awareness is crucial for personal and professional growth. Too many times, we’re blind to our flaws and weak points until they come with consequences. Don’t waste that clarity! Take the time to introspect, develop your strengths, and mitigate your weaknesses.

Reason #10 – Long-Term Success

Finally, overcoming failure paves the pathway for lasting, long-term success. It may not seem that way at the moment. It will hurt. However, how we react to failures determines how we approach investing from here on out. Don’t waste any opportunity to fortify yourself and your portfolio!

Our markets are vetted for passive, buy-and-hold investing.
Ask us about available properties now!