Who can forget the dot com bust of the new millenium? Apparently, millions of real estate professionals that's who! How is it that every time a new bubble appears on the horizon everyone and their brother forgets about the last bubble that busted or even worse, tells themselves that they are not in a bubble or that their industry is safe from bubbles...
Unbelievable...but it happened so there is no use fretting about it now. In my opinion, we need to buckle down and understand how each of us contributed in some way and how we can avoid this again. How do we do that? Personal accountability for starters. We can't control the whole industry, so we might as well control our own deals and actions.
Take the time to re-evaluate your business plan, if you have one. If you don't have one, create one. There is nothing complicated about it...keep it simple and realistic. I love to see a business plan that can be articulated in the form of a spreadsheet...words are nice, but numbers tell the real story. Make sure that your plan is sustainable. Sure, you might be able to make a killing on a particular deals, but how many times can you do that and furthermore, can you do that forever? The answer is probably not...so find a business or aspect of the business that you can maintain for an indefinite period.
Modest margins over the long-haul add up to more than you think. Just take the time and stay the course. The good news is that if you are still standing in the real estate industry today, you are doing something right. Keep up the great work and hang in there!
http://www.LocalRealEstateDeals.com
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