Building a real estate business is exciting, but it’s also easy to stumble along the way. When I first started, I made a lot of mistakes that cost me time, money, and opportunities. Looking back, I realize that these missteps were invaluable lessons—but I’d rather you not learn them the hard way like I did.
In this post, I’ll walk you through 10 mistakes I made early in my career and how you can avoid them. Whether you’re just getting started or already growing your portfolio, these insights will help you build a more successful and sustainable business.
10 Mistakes I Made Starting My Real Estate Business (and How You Can Avoid Them)
1. Not Keeping Good Books from the Beginning
Proper bookkeeping is essential. Early on, I thought I could clean up my financials later, but that cost me thousands of dollars. Accurate records help you track every cent flowing in and out of your business. I recommend starting with a reliable system—whether that means using accounting software or hiring a CPA. Don’t leave it for “later.”
Pro tip: Learn from other investors—both new and experienced—about their bookkeeping practices and find what works for you.
2. Not Taking a Profit Early
I reinvested everything into the business at first, thinking it would lead to faster growth. But without setting aside a profit, I didn’t see the fruits of my labor. That changed when I read Profit First by Mike Michalowicz. Taking a profit—even $100 or $200 each month—builds personal wealth and provides a financial cushion for tough times.
3. Trying to Handle Everything Myself
Like many entrepreneurs, I thought I could do it all—fixing electrical outlets, laying flooring, and even managing the finances. However, this approach is exhausting and inefficient. Delegating tasks to experts will save you time and improve the quality of your work.
4. Ruining Friendships Over Money
Unfortunately, I lost a couple of friendships by prioritizing business deals over relationships. In hindsight, I realized that no deal is worth sacrificing meaningful connections. Think long-term and avoid letting money come between you and the people you care about.
5. Hiring Contractors Without References
In the early days, I hired contractors based on convenience—whether from Craigslist, Facebook, or even someone I met at Lowe’s. The result? I wasted time and money fixing their poor work. Always ask for references and check their track records before hiring anyone.
6. Cutting Corners to Save Money
While it’s tempting to save money by choosing the cheapest options, you often get what you pay for. When I tried to cut corners, I ended up paying more to redo subpar work. Find contractors with good references, and pay them fairly for quality results.
7. Not Sharing What I Was Doing
Initially, I thought being discreet about my business was smart, but it only slowed my growth. Now, I actively promote what I do—whether on social media, podcasts, or through my website. This transparency has helped people bring deals to me, and many of those leads have become valuable business opportunities.
8. Ignoring My Credit Score
At first, I didn’t think credit mattered. I was wrong. A good credit score is critical for securing loans and seller-financed deals. Sellers and lenders often ask to see credit scores to gauge credibility. Start improving your credit now—pay bills on time, learn what factors affect your score, and track it regularly.
9. Partnering with the Wrong Person
One of my biggest mistakes was partnering with someone whose mindset and goals didn’t align with mine. Partnerships can be powerful when done right, but they require clear expectations and synergy. Make sure any potential partner shares your values and is committed to fulfilling their responsibilities.
10. Not Focusing on Over-Delivering
Early on, I underestimated the importance of exceeding customer expectations. I’ve since learned that over-delivering creates repeat business and builds trust. Now, I strive to do more than I promise. As Grant Cardone says, “Over-promise and over-deliver.”
Closing Thoughts:
These are the ten biggest mistakes I made when starting my real estate business. I hope my story helps you avoid similar pitfalls and fast-tracks your success. Remember, building a business is about constant learning and improvement. If you want to connect with others actively buying, fixing, and selling properties, visit our community at Grab the Map LLC.
And as always—don’t just look at the map; grab it and make things happen!