Staying Level-Headed on the Real Estate Rollercoaster

Real estate has a ton of ups and downs. There aren't  a lot of other businesses that can have higher highs and lower lows. If you flip a house and make $50,000, it's a high unlike any other. On the other hand, if you put months into a flip and then lose $10,000, it's hard to get much lower. And the worrying that precedes that loss (or even gain) can be emotionally devastating.

Such rollers coasters can lead one to burn out. That's why, if you're in real estate for the long haul, a critical skill to work on is level-headedness; don't get too high in the good times, or too low in the bad times.

My brother is a former poker player and he likes to bring up variance. Namely, no matter how well you play a hand, sometimes the cards won't fall and you'll lose. Statistically, you'll win more often than not when you play right, but not always. You have to be prepared for that.

You also have to be prepared to make mistakes. They happen. Don't fear them, expect them. Then learn from them and move on.

The important thing is to understand that mistakes and variance happen. Don't just go with the ebb and flow of the tides. Be prepared for the bad times and while I'm not saying don't celebrate the good times, always keep things in perspective.