Investors: Reasons Why You’ll Go Out of Business (or How to Avoid It)
I was recently invited to speak at a local title company about how to thrive when the real estate market dives. It was a great session, one that reminded me how easily investors can lose focus when the market starts to shift.
Later that day, as I was out on one of my regular jogs (well, more like a jog-walk these days), a thought hit me:
This is exactly why so many investors go out of business.
Now, this doesn’t mean you will go out of business. But if you’re not intentional, the reasons I’m about to share could easily become the reasons you do.
I’ve been in this business long enough to see friends , smart, talented, driven investors, leave the game and go back to getting jobs. Not because they weren’t capable, but because they ignored a few fundamentals that would have kept them in the game.
So let’s deep dive.
1. You Stop Moving When the Market Slows
When the market dips, the average investor freezes. They stop marketing, stop calling leads, stop networking, waiting for “things to get better.”
But here’s the truth: the market doesn’t make you successful; your actions do.
If you only know how to make money when things are easy, you’ll disappear when things get hard.
👉 The Catch: The investors who survive downturns are the ones who double down on their fundamentals marketing, relationships, and consistency, even when others pull back.
2. You Forget It’s a Business, Not a Hobby
Many people enter real estate investing excited by the dream, freedom, money, control of their time. But excitement alone doesn’t sustain a business.
You can’t just “wing it.” You need systems, processes, and financial awareness. You need to know your numbers, track your marketing, and treat every property like a business asset, not a passion project.
👉 The Lesson: If you don’t respect your investing as a real business, it will collapse like a hobby, unpredictable, emotional, and unsustainable.
3. You Don’t Adapt to Change
Markets evolve. What worked five years ago won’t necessarily work today.
I’ve seen investors refuse to shift strategies, sticking to old formulas, ignoring data, or refusing to learn new skills.
The market doesn’t reward stubbornness; it rewards adaptability.
👉 The Catch: The investors who last are learners. They stay curious, ask better questions, and pivot before it’s too late.
4. You Don’t Have a Strong “Why”
When challenges hit and “they will ” your motivation will be tested. If your only “why” is money, it won’t carry you through the long nights, the failed deals, or the months when nothing closes.
👉 The Catch: The investors who thrive have a purpose bigger than profit, freedom for their family, legacy, impact, community. That deeper reason keeps them going when others quit.
The Full Lesson
If you ever find yourself losing momentum, remember this:
You won’t go out of business because of the economy.
You’ll go out of business because you stopped showing up when it got hard.
You’ll go out of business because you didn’t adapt, didn’t systemize, or didn’t keep your hunger alive.
But if you focus on the fundamentals consistency, learning, adaptability, and a strong sense of purpose , you’ll not only survive any market, you’ll thrive in it.
Final Thought
If you’re serious about building longevity in this business, take a deep breath and ask yourself:
“Am I treating my investing like a business, or like a phase?”
Because if it’s the former, then no matter what the market does — you’ll still be standing when others fold.