7 Steps for Rebounding from Major Real Estate FailuresWelcome to real estate investing, the industry where things will inevitably go wrong.

There’s no way around it. If you are a real estate investor and currently investing, and nothing has ever gone wrong for you, you aren’t that good of an investor. Failures are part of the game. We can try to educate and practice as best we can to avoid them, but it is part of the experience. It’s the only way to truly learn! No hotshot, big rig investor out there has ever not failed.

So things will go wrong. What do you do or how do you handle the situation when it does go down?

Here Are 7 Easy Steps for Handling the Worst of Situations


Seriously, calm down! I know it is easy to get worked up immediately and get pissed off and start assuming or believing the worst. I know because I’ve done it. Our first reactions are to think someone has screwed us or we got duped or we are going to lose all our money or [insert the most creative worst-case scenario you can think of here].

So often, though, situations turn out not to be as bad as we assume them to be. Sure, it may still be an unfortunate situation, but there are usually explanations or workarounds or resolutions that will ease our freak out, so give those a chance before you flip your lid. Of course if no good explanation or resolution comes of it, flip your lid all you want, but don’t assume worst-case right off. That’s just unnecessary stress that will lead you to a shorter lifespan or cause you to drink more.

2. Reach Out to the Best Contact Who Can Explain the Problem

This might be an agent, the seller, a contractor, whoever. Whatever the source of the problem, reach out to the applicable contact behind whatever that problem is. Let’s say you just bought a property and only a couple weeks into owning the property you receive a very substantial tax bill that says you owe about 10% of the purchase price in back taxes. Whoa!

First refer to the previous step, but then immediately reach out to the person who sold you the property and ask what it is about. This happened recently to someone I know, and it turned out that the seller had in fact sent in the payment but due to a delay in processing of the check, the county resent the bill thinking it hadn’t been paid, but in fact the payment was in and there was no outstanding balance to the new owner. Whew!

As soon as the buyer asked the seller about this, it was explained and end of story. See how easy that was? Always reach out to the best person to ask who is at the source of the problem and find out what is going on. So often it will turn out just fine if you go right to the source.

3. In Case the Source Isn’t Responsive, Reach Out to the Best Person Who Can Get to the Source

Oftentimes you’ll have been referred to the source by someone else. Reach out to that someone else and let them know what is going on. You’ll be surprised at how much that person cares about your experience (especially since they referred you), and it is likely that, since they know the source, they can drill for information for you. Sometimes people don’t respond because they miss an email or maybe they really do suck, so sometimes someone else helping you out can have a positive effect.

If the problem is now resolved, stop here. If your problem is not yet resolved, continue reading…


At this point, the problem is probably for real. Otherwise it would have been taken care of after talking to everyone. Now that it’s a real problem, all those emotions are going to boil back up. I get it. But as best you can, stay calm.

5. Realize Every Successful Investor Goes Through Problems

Welcome to the club of real estate investors! We’ve all had problems. You’d really just be a boring addition to the dinner table if you didn’t have your own battle wounds to share and laugh about (later of course, because you’re still pissed right now).

What else would we all talk about at a dinner table if we didn’t have any “OMG, this one time, this thing happened, and you’ll never believe it, and can you believe it??” stories. Consider it a success to have a failure. Once you’re in that mindset, things will be easier.

Read The Rest On Bigger Pockets.

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