What A 100K Loss Taught Me

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I take pride in generally making sound decisions in business and investing, but this particular investment caught me by surprise.

I share this to convey that my path to success wasn’t without its share of failures and losses.

During that period, my primary focus was on expanding my business, which, in turn, funded my real estate ventures, resulting in a portfolio of 13 properties that grew into a multi-million-dollar asset.

I felt a great sense of accomplishment as all but one of these investments proved to be highly profitable, contributing to a growing confidence in my ventures.

Given my commitment to due diligence, especially in real estate, I had undergone various courses and followed the guidance of mentors in this investment strategy.

However, as is often the case, even meticulous preparation couldn’t shield me from unexpected turns in partnerships.

So, having initially invested solely on my own for about 7 years, I made the decision to embark on a partnership with a 100K investment.

Holding this investment for at least a 5 year term, it showed promising returns.  Regrettably, after a couple of years, it left both myself and fellow investors in disbelief.

The company involved had a stellar reputation, and we had engaged third-party legal counsel to ensure we were well-informed about all aspects of the partnership and our return on investment.

From this significant loss, I gained valuable insights that I wish to share, hoping they serve as awareness for those venturing into asset investments like real estate (or any other, for that matter):

1. Despite thorough due diligence, partnering with others may lead to unforeseen bankruptcies.
2. Anticipate losses along the way as a part of the investment journey.
3. Refrain from self-blame when you’ve diligently performed your due diligence.
4. Stick to the strategy of buying low and selling high—it remains a reliable approach.
5. The best investments often arise during a recession, so don’t succumb to prevailing pessimism.
6. Keep educating yourself on how to navigate economic fluctuations and market dynamics.
7. Embrace the possibility of failure; it’s an integral part of the learning process.

This experience, though challenging, contributed to my resilience and reshaped my perspective on success.

Now, as someone who has built a multi-million dollar portfolio, I have the privilege to mentor others aspiring to invest in business and assets, emphasizing the importance of investing in oneself.

The investor mindset is pivotal, and I encourage you to connect with me for a call to explore if this journey aligns with your goals.

About the author 

Deborah MacDonald

After almost 25 years as an entrepreneur, I continue to grow my business, my passive income streams and my wealth. And now I mentor others on their wealth journeys by teaching them how to fund their own freedom lifestyle.

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