As much as we all want our real estate investments to go smoothly all the time, reality is full of setbacks, missteps, pitfalls and even disasters. Real estate investors won’t experience success all the time. In seasons of troublesome tenants, complications and the losing of bidding wars, even profitable investments might seem like they’re not worth the headache.
If you’re one of many real estate investors experiencing a low right now, there are practical things that you can do to get things back on track.
How Real Estate Investors Should Handle Lows
Remember the big picture.
Sometimes real estate investors can get so lost in the weeds of real estate investing that they lose sight of their original vision for their investments. When you feel low, take time to remember the big picture. If things overall are going well and still headed in the right direction, great. Focus on that fact. Celebrate it!
If your portfolio is not moving in the right direction or not performing as well as you expected, use it as a chance to get back on track and motivation to get back on track. Review your plan and your portfolio, but don’t lose sight of the bigger picture. It will help you keep your investments in perspective and your eye on the prize. This is not a get-rich-quick endeavor, and your investment portfolio can go up and down. The key is to have a long-term vision and plan and also be prepared to make short-term changes if they are needed.
Here is how you stay on track.
Refocus on immediate goals.
While the big picture is important, it’s not always practical for making immediate change. Lows come and go, economically and emotionally, but real estate investors aren’t powerless to break free from them. Write down your immediate goals — things you can do today for your investments, and get them done. The feeling of accomplishment alone can go a long way to pulling you out of a slump.
Do the most you can with what you have, right now.
At times, real estate investors become tempted to compare themselves to one another. It can lead to feelings of inadequacy — even jealousy — when other investors have more money, nicer properties, a bigger team…the list goes on.
Comparison to others will sap your joy and diminish your accomplishments. There will always be an investor “better” than you. Stop yourself from making comparisons and focus on doing what you can. Do what you do well, no matter how much money you have, don’t have or hope to have down the line.
Investing is all about right now. I often tell investors that I let my own visions of fame cloud my early investing and it really set me back. As a new investor, I was more concerned with getting to the finish and I forgot to learn any lessons along the way. I had to look back to find those lessons and they literally drained my accounts in the process. So do not be focused on the finish or on how far ahead or better off any other investors may look to be. Focus on you and make the most of what you have.
Re-examine your strategy.
If you’re unhappy with the state of your investments, maybe it’s time for a fresh strategy. Take the time to sit down and identify what’s working and what isn’t. If it isn’t working, change it. There may be some trial and error involved, but you’ll learn from the experience. It’s far better to experiment than to continue using a strategy that doesn’t work for your investments. It may have served you well in the past, but that doesn’t mean it always will. Let go of things that aren’t working for you in the present.
Like the real estate market, real estate investment moves in cycles. Every real estate investor will experience highs and lows. Don’t let the lows discourage you from your investments. You don’t have to be stuck — you can take practical steps to get back on track.
How do you deal with lows in real estate investment? Share your strategies in the comments.