Bonus – Learning Curve Crusher

Learning Curve Crusher: Real Life Lessons Learned From the REI Trenches

Learning Curve Crusher

You’re about to hear an open confession of the biggest, most painful mistakes I’ve made in my real estate investing biz over the years up to now — and boy, have I made some doozies.

Why spill it all out in the open like this for you?  It’s simple: So you can learn from them. To help you avoid experiencing the same scrapes, bruises and gut-punches I got.

I remember when my mentor first told me that, when you’re actively investing in real estate over time, it’s not a matter of “if” someone will file a lawsuit against you (whether a tenant, contractor, seller, lender, etc),  it’s a matter of “when”.

I read about a poll from the end of the nineteenth century in which people were asked, “If you were to get rich, become wealthy, how would you do it?”  The most popular answer… “build a business”.

The same poll was conducted a hundred years later, but sadly the winning answer had changed… to “sue someone“.

Just goes to show how the mindset of the masses has shifted, eh?

When things go south in real estate investing (and they will), unfortunately it can mean broken agreements, payments falling behind, liens, judgments, foreclosure, bankruptcy.

You’ve undoubtedly heard many stories of hardship over the last few years… from big-time investors, huge mul-timillion and billion dollar real estate investment companies, developers, banks, mortgage companies…

… but regardless of the adversity faced, there are key lessons to be learned and leveraged into your next deal, your business, your personal life.

Now keep in mind… everyone makes mistakes, period. Whether you’re brand new to the real estate game or a seasoned veteran, no one’s perfect and no one’s immune to your fair share of mistakes. It will happen.

But it’s how you choose to respond, how you react, and what you learn along the way… that makes the difference. Oh, and not necessarily making the exact same mistakes other have already made before you, and are willing to openly share — like me!

So in the video below, I get very raw, real and personal in laying out the biggest mistakes I’ve made for you — including how I’ve responded and how I’ve weathered the storms over the years. My sincere hope is that as you experience these mistakes vicariously through me, you’ll learn from them, and avoid duplicating them in your own business and life.

Watch and Enjoy…

You know, whether you’re just getting started or whether you’re doing a huge volume of deals, you’re gonna make mistakes. Everyone does, and that’s OK.

If you’ve had a deal go south or if you do in the future, don’t be surprised if someone yells “scam” or “lawsuit” your way! Unfortunately it seems hardwired into the minds of the masses these days.

But hang in there. Take the lessons I shared with you in this video, learn from them and apply them in your business and your life. And realize that, sure, there’s a fair amount of risk investing in real estate. But there’s also a lot of risk driving your car everyday, right?

When investing in real estate, do your best to take calculated risks, but understand that bumps and scrapes along the way are just par for the course.

Educate yourself. Surround yourself with a team of experts. Do your due diligence. Learn from other investors. Do the best you can with what you’ve got, and treat every mistake you make as an opportunity to learn something new, and become an even better version of yourself.

As for me, I’m just gonna keep moving forward. No matter how long, how hard, I will persist until…

Thoughts? Questions? Leave ’em below in the comment area…

57 Responses to “Bonus – Learning Curve Crusher”

  1. Steven Langham Reply

    Wonderful video, It has me very interested

  2. Michael Thyfault Reply

    My cousin got burned big time in 2008. After he resolved and ready to move on, he got arrested in 2010 and charged with felonies. I was more of a witch-hunt in blame than anything else and he plea bargained it away.

    He is still not recovered from that. Being the son of a police officer, the arrest and felony charges were devastating on many levels, especially performance and finance, which feed each other.

    He felt like the worst adviser anywhere telling me all this as I am about to launch My Rocket Into Outer-Space.

    However, the fact that he felt he had to share it with me and the fact that he learned so much, makes him the best adviser I have. So I will be showing him all of my deals and when they bring me abundance as they will, his two sons will get $500 to equally put into their education IRA accounts for every deal he reviews until he starts to deals again for himself. I love the guy as not just a cousin, more of a friend and brother.

    • Justin Wilmot Reply

      Interesting perspective Michael. If that helps you get motivated than thats great.

    • Robert Rodriguez Reply

      Thanks a great deal for sharing your experiences. I find it very sensible and true. Cash flow over equity is more important! I had a small business in trucking transportation 2 years ago that I eventually had to shut down and take the loss on my investment for the equipment used. I did not maintain adequate cash flow to keep the business strong when major expenses came up.

  3. Michael Guzman Reply

    Patrick,
    Thanks, great video. It’s easy to get sucked into the more education mode, but you definitely need the education.
    What is working for me is taking a very methodical approach this time. I did some deals in 2005 but I was very lucky they worked out. I had no plan, I had the just do it now mentality. That was short lived and I learned from my mistakes.
    Like I said, I’ve proven it works. Now, I have a plan that I’m sticking to. Very slow initially but once I have all systems in place it will pretty much run on it’s own.
    Thanks again.
    Mike
    (619)646-0394
    http://www.sandiegoinvestorsource.com

    • Patrick Riddle Reply

      Hey Michael, glad you enjoyed the video. That’s great you have a plan now that you’re sticking to. Good stuff!

      – Patrick

  4. Jamil AITKHALED Reply

    where is the video??

    • Justin Wilmot Reply

      We fixed the playback issue Jamil. Try again and sorry for the interruption. Make it happen

  5. Michele Brown Reply

    Wow!
    Thank you, Patrick, for your insight and inspiration. That took a lot of guts, I know. I have made mistakes, as well. I am glad and grateful for having found your website. I also believe in moving forward no matter what! It is tough, especially when there is negativity all around. For me, it is my family at times, but that’s ok!
    Btw, my husband is also a Patrick. Great guy, such as yourself! He’s been one of my, if not my, biggest supporters! :o)

    God Bless,
    Michele

  6. Joshua Fridley Reply

    I feel ya man I feel ya. Im still pedaling though lol wont and cant stop!!

  7. Devin Carson Reply

    Hey Patrick,
    Loved the video. Im new to investing this year and my biggest struggle is getting over the hump of doing my first deal. Ive learned a lot but I get discouraged from time to time because I haven’t done a deal yet. Is there any advice you can give me to help me get over this hump and break the ice of getting my first deal done?

    Thanks for your time
    Devin

    • Patrick Riddle Reply

      To get that first deal done, you’ve gotta be taking massive action. Start taking to buyers, sellers, get some marketing out there driving leads your way, network your butt off.

      One thing that helps me from getting discouraged in biz and life when things don’t go the way you want… is reading good books and listening to inspirational stuff. Keep filling your mind with what’s possible and go after it with all your heart.

      – Patrick

  8. Donna Timberlake Reply

    Thanks for your story. Inspiring and honest.

  9. Cristian De La Rosa Reply

    Patrick you and your team are awesome, you have given us so much value 🙂

    • Justin Wilmot Reply

      We are so glad you appreciate the time and commitment we put in to serving you. Make it happen!

  10. Larry Ross Reply

    Good stuff!! Thanks for the info Patrick!

    • Patrick Riddle Reply

      Hey Larry, glad you enjoyed it.

      – Patrick

      • Jan Forysiak Reply

        Hi, I didn’t get video only text. Thank you, Jan

        • Justin Wilmot Reply

          The video is up and running on our server Jan so please refresh and try again. Lets us know if you still have problems after doing so.

  11. Susan Bridges Reply

    Patrick,

    Your video really resonated me. It took me a long to admit publicly to my failures in real estate investing and finance. I too leaned on my parents for those words of encouragement that have kept me going today.

    Be able to talk about it has been great therapy. And, I know recording this video must have been some great therapy for you as well.

    Bravo for such great communication and life learning lessons. And, for helping all of us in the community to learn and prosper in the future.

    Sincerely,
    Susan

    • Patrick Riddle Reply

      Yes, it was great therapy Susan. Hard to get myself to do it… but soooo worth it.

      – Patrick

  12. Paul Brauning Reply

    I have made plenty of mistakes myself and continue to do so. Patrick After all of this how do you determine cash flow over the cost of the property? Do you now have a percentage that must work or you won’t do the deal? I currently have a loan on a property that is a rent to own that is worth less than the contract price. NO way is the bank going to approve a loan for what I am asking. It will probably be one of those sell and maybe break even deals.
    Thanks,Paul

    • Patrick Riddle Reply

      Hey Paul, we all make mistakes. What’s important is that we learn from ’em so that we NEVER make the same mistakes again.

      When analyzing a deal now, I look at the worst case scenario. If I buy a property and can’t sell it, does the cash flow (or potential cash flow) conservatively cover all the costs of servicing the deal? If not, I pass (or wholesale the deal to another investor)… even IF, there’s lot’s of equity or potential profit.

      With that deal you mentioned, may be best just to break even if you can and move on to the next deal.

      – Patrick

  13. Olivia Smithson Reply

    Thank you for your honesty.

    • Patrick Riddle Reply

      Hey Olivia, you’re welcome. Glad you enjoyed the video.

      – Patrick

  14. Tim Walker Reply

    Hey Patrick,
    Good video man. I got pinched when the market shifted as well. I’m getting into 10 hour wholesaling. Goodbye rehab!

    • Patrick Riddle Reply

      Thanks Tim.

      I think you’ll love 10HW. Love the biz model 🙂

      – P

  15. Matthew Beavers Reply

    Great video Patrick. Thanks for sharing your experiences.

    • Patrick Riddle Reply

      Thanks Matthew. Glad you enjoyed.

      – Patrick

  16. Sidney Phillips Reply

    Patrick:
    You are ever the “Greatest” to me. I’m still on a climbing phase towards making that first contract commitment with Sellers.

    Thank you (again) for making it doable to your students including myself.

    Please if you could, connect me to another student who may be willing to share pointers on Excel. I have properties to present to Sellers via Real Estate Agents and they want the data on Excel Spreadsheets. I still did not find that one in the membership area that you mentioned.
    Sincerely,
    Sid

    • Patrick Riddle Reply

      Hey Sidney, I appreciate the kind words. 🙂

      It will probably be easiest to connect with someone locally who can help you with excel. If you’ve been networking with other investors in your area, ask one of them who you have become friends with for some help.

      – Patrick

  17. David Hobbs Reply

    Hello Patrick, Great to hear you talk about your trials and tribulations, and especially your perseverance. Very inspiring and encouraging. Thanks so much! Best, Dave Hobbs

    • Patrick Riddle Reply

      Glad you enjoyed the video David. You’re welcome!

      – Patrick

  18. Josefina Santiago Reply

    Patrick,

    Thanks a lot for sharing your real story and tips in the video. I appreciate.

    Josefina

    • Patrick Riddle Reply

      You’re welcome Josefina. Glad you enjoyed.

      – Patrick

  19. Mark Everitt Reply

    Hi Patrick,
    The video is missing for me as well. Thanks for doing what you can to bring it back.

    • Patrick Riddle Reply

      Huh, sorry about that Mark. Thanks for the heads up. We’ll see what we can do.

      – Patrick

  20. Tony Miano Reply

    Hi Patrick, I like your comments, but unfortunately I’m not able to watch the video because it is missing.
    Can you do something about that?
    Thanks

    • Patrick Riddle Reply

      Hey Tony, not sure why the video isn’t showing up. It shows up fine on my end.

      Our Chief Member Experience Gal, Charity, sent you an email this morning to help you out.

      – Patrick

  21. Mike Johnson Reply

    Patrick,
    Thank you for this video and your honesty. I have been in this business for 43 yrs. now and it is so refreshing to hear from a real Man and professional in our business.

    While I have been in this business for quite some time I understand that you must be learning all of the time to stay in front of the curve.

    I am in the process of putting together my new team. Like you, 2007 hit quite hard. But I believe that one never loses until they quit. I have most of the players in place and I believe that I have just found my mentor. I have gone through many a courses and while yours is not the most polished it is by far the most honest and informational.

    I want to thank you again for being who you are and look forward to doing business with you in the future.

    Thanks for your time.
    Mike

    • Patrick Riddle Reply

      Hey Mike, you’re welcome man. Thank you so much for the kind words. Glad to hear you’re putting a new team together. Real estate investing is a team sport! Let us know if we can help you with anything.

      – Patrick

  22. Noah Miller Reply

    I appreciate the video and your honesty. You have obviously done a great deal of personal and professional development, had some strong mentors, and learned at a young age to take responsibility vs assigning blame. You and Justin both look very young but have excelled in your chosen pursuits despite some pretty significant challenges. I am excited to continue learning about real estate investing with 10HW. Thanks, Noah

    • Patrick Riddle Reply

      Hey Noah, glad you enjoyed the video. Let us know if we can help you with anything.

      – Patrick

  23. Don Hill Reply

    Hey Patrick,

    Great video….

    I have a few cousins that live in Anderson SC and they are huge Clemson fans! I go their a few times a year and I was thinking of making that area one of my 10 HR Wholesale markets? Do you live around there? Do you have any insight on that market? Thanks man

    • Patrick Riddle Reply

      Hey Don, I lived near Anderson a few years while I went to Clemson. I’ve been in the Charleston area for a little over 10 years now (about 4 hours away)… and don’t have any current insight into the market there. But, I think Anderson could be a solid market.

      – Patrick

  24. Anthony Saporito Reply

    Hello Patrick,
    What a great video! It takes EXTREME COURAGE to do what you did. I hope everyone takes the time to watch this video a few times (as I did). After watching this video one can’t help but to feel a tremendous burden being taken off of they’re shoulders. Your level of integrity and humility reminds me of Joel Osteen. It just doesn’t get any better than that! Thank you for your honesty.

    • Patrick Riddle Reply

      Hey Anthony, glad to hear that the video really resonates with you. Thanks so much for joining the conversation here and being part of our little community.

      Let me know if we can help you with anything.

      – Patrick

  25. Paula Henderson Reply

    Patrick,

    Thank you for sharing your past mistakes. Mistakes are a natural part of life; they’re to be expected.

    Not admitting responsibility for mistakes is an acknowledgment that one values “image” more than the welfare of the company.

    It seems most create fictions to absolve themselves of responsibility, thereby enforcing the belief that they are smart, moral, and right. However, that keeps them on a course that is dumb, immoral, and wrong.

    Bravo for your courage!

    • Patrick Riddle Reply

      You’re welcome Paula 🙂

      Very true.

  26. Victor Galeano Reply

    Thanks for the honest feedback, I’m a new investor
    did take notes, heard not to long ago about being in
    a position of liquidity, so you were spot on. Thanks
    again

  27. David Gwinn Reply

    Its not a matter of “if” its “when” is so true and then how you deal with it really defines someone. It’s another great reminder when you mention how we have to hit things head on in those times and not play the blame game. It is critical no matter how much you want to stick your head in the sand and disappear.
    I hope I can help others in my journey as you have done. Thanks!

  28. David Doyle Reply

    We love you Patrick
    Dont ever change,,,,
    Dave Doyle
    Los Angeles

    • Patrick Riddle Reply

      Thanks David 🙂

  29. Adam Negri Reply

    A lot of emotion in your body language. I’m sure this has to be one of the hardest video’s you have ever done. Great job. Everyone paints the perfect picture of real estate and how much money your going to make. Its refreshing that you have the nerve to say what is on the other side of ever peak. The valley. And as we all know when poop picks up speed it has one hell of and impact at the bottom.

    My mom had a great saying.
    Its easy to do well in life. It takes no effort. Our true measurement come when thing go wrong. How you handle your problems in life are the true legacies we leave behind for your children.

    Great job
    Adam Negri

    • Patrick Riddle Reply

      Adam, it was the hardest video that I’ve ever done… but, I’m so glad that I put it out there.

      Your Mom’s saying is so true. Thanks for sharing!!

  30. ROLAND LANDIS Reply

    Excellent!
    Pure honesty and no bull about it’s all roses.

    • Patrick Riddle Reply

      Hey Roland, glad you enjoyed the video.

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