Real Estate Success and Failure: Determination

While many people have developed wealth using real estate, there are factors that separate those who succeed from others who wish they had. 

When considering real estate as a tool for financial success, the unwavering resolve to bring an activity to its best outcome is essential. This is especially true when things go wrong. Those who are determined to succeed will not quit when the inevitable disastrous project(s) finish poorly.

Jim is an investor who decided to flip houses for profit. Jim had some experience around the house and also helping others. So he jumped in feet-first and bought a little house in a rough part of town. Using hard money, he was able to turn that project into a profitable resale making a total of 300% ROI!

Encouraged by his success, Jim ventured further into flipping houses. A year later, a customer, who was aggressively investing in the area, asked Jim if he would be their general contractor to run remodeling projects. This sounded like a perfect marriage of Jim’s abilities and the customer’s needs. Unfortunately, this story did not end well. While we often hear stories about contractors who bilk customers, this time the customer bilked Jim out of tens of thousands of dollars, leaving him with a very tough situation: owing subcontractors with no ability to pay them.

Jim could have quit, shut down his company and file bankruptcy. Instead, Jim went to his subs, explained the circumstances: most understood. Jim worked out payment arrangements with these people and continued work. It would be a long haul.

Two years later, Jim is about to fulfill his obligations to his subcontractors. He has multiple partners with whom he is financing multiple remodel and new construction investment projects. His cash flow is more stable and prospects for future business continue to grow.

Had Jim quit when the circumstances were bleak, he and several others would have lost. However, his determination to succeed has created a business that is growing in size and profits.

When faced with difficult circumstances, determination to succeed will often mean the difference between success and failure. Grow your knowledge base, develop the necessary competencies, find the right people with the specialty skills needed to get things done the right way and you too will succeed!