The Dark Side of Entrepreneurship: 3 Harsh Realities Business Owners Face in Wholesale Real Estate
Being an entrepreneur is fantastic. The reason so many people decide to start and run their own businesses is to control their financial futures.
While the victories are always great and the hallmark of successful business owners, there are challenges, too. These challenges are often overlooked and when encountered, entrepreneurs are often unprepared.
The reality of being a business owner, and of being an entrepreneur, lies in understanding the challenges that come from and how to overcome them. Here are 3 harsh realities that we, as business owners, need to face.
#1 The Hamster Wheel of Finding Deals and Maintaining a Pipeline
To be truly successful as a real estate investor, especially as a wholesaler, you must be able to find and close deals. Being able to maintain a steady pipeline, consistently, is key.
If you don’t have that consistency, then it can feel like you’re on a hamster wheel, just running after deal, after deal, after deal.
That’s draining and unfortunately, that’s the business that we have signed up for.
However, the idea of the hamster wheel most likely isn’t about trying to find deals – it’s about some part of the business that you should delegate to someone else.
This was something I spoke to my AstroFlipping member, Matt, in one of our coaching calls:
Matt was struggling with being in the hamster wheel, despite loving what he’s doing and being able to pay his bills without worry. But the worry is there because he’s just now starting to get into a place of consistency.
And as we discussed, the issue may not be about him chasing deals, but about him doing portions of his business that he doesn’t enjoy doing.
The business can be miserable if you don’t enjoy it.
#2 Trusting the Right Professionals
No one can go about business alone.
Yes, you can start a business by yourself at the beginning, but ultimately you’ll come to the realization that you need help to cover some aspects of your business.
That’s okay; in fact, it should be encouraged. You should do what you’re good at and let someone else handle the areas you’re weak in. I’ve mentioned that, while I co-founded and funded KeyGlee and most people recognize me as part of that company, I’m not the CEO.
I’m not the CEO because that was not my strong point; I’m not a techie guy, so being able to understand the inner workings of the databases we use and the systems we’re using is way over my head.
But here’s the thing – I was confident in the people I was working with to start a business together. I trusted Josiah and Hunter to build up this idea we had and they’ve taken it to heights that even I hadn’t imagined.
I was lucky in that regard, but I’ve also experienced the pitfalls of partnering with the wrong people.
On a recent Title Talk I did with Dena, she shared a story where a title company officer made a call to the entrepreneur and told them they were selling their contracted home too low.
The problem with this is the title company is a third party and shouldn’t be getting involved in the aspects of the deal that don’t cater to them.
This officer had no idea of the idea behind what the buyer was going to do with the home, didn’t know the situation of the seller, and didn’t know what the condition of the house was.
Because of these unknowns, the title officer started a fire that didn’t need to be there in the first place.
This is just one example of why, as a business owner, you need to make sure that you’re dealing with trusted professionals. And don’t get into the weeds of thinking that this only happens to novices or new owners –
I lost $300k to people I thought were trusted professionals.
Now, I’m not saying not to trust anyone, but you have to be careful about who you get into business with and be aware and cognizant of your own feelings and red flag indicators if they start to warn you.
#3 From Breakdown to Breakthrough
Just reading that made you shudder, didn’t it?
No one likes obstacles – they prevent us from getting things done and they come in shapes and sizes. They’re the distractions that pop up, some of which we can’t avoid or stop.
But what if instead of looking at obstacles as this negative force that’s out to get you, we look at them as positive opportunities for growth?
Instead of you asking, “why is this happening to me?” ask, “how can I benefit from this?”
The great Matthew Ferry stated the above, with the idea that we’re not victims of circumstances unless we choose to be and what we should be doing is taking the stance of enlightened perspective.
The idea is to shift your perspective – think of these obstacles as opportunities for growth and success.
You’re transforming these minor breakdowns into major breakthroughs.
A good example is the story above about trusting people in business. The loss of $300k was devastating to my family and me at the time and believe me, I saw that as a major breakdown.
But here’s the breakthrough – if not for that event, I wouldn’t have moved to LA and started buying properties in Phoenix. If I hadn’t bought properties in Phoenix, I never would’ve met Hunter and Josiah and started KeyGlee.
If I had never started KeyGlee, I never would have started AstroFlipping. If I hadn’t started AstroFlipping, I wouldn’t be in the place I am now.
That’s a way to look at the breakdown that’s happening and put a positive spin on it. I know when all of these distractions are going on, you aren’t thinking about them positively, but doing so will help your growth and the growth of your business.
These 3 points are just to remind you that being a business owner is going to have challenges; it’s not going to be about wins all the time and that’s okay. It’s how we tackle those challenges that make us learn and grow.
Our members in AstroFlipping face these challenges and we’re there to help support and guide one another. So if you’re seeking a community, stop struggling on your own. Become part of a network of other investors who understand your journey and join us today.