5 Hard Lessons I Learned in Real Estate Investing (And How to Avoid Them)

Real estate investing wasn’t easy for me at first. I made mistakes—costly ones. But every misstep taught me something valuable. If you’re just starting or want to sharpen your approach, here are five lessons I learned the hard way and how they’ve shaped my strategy. These lessons don’t just help you avoid trouble; they’ll also teach you how to attract new investors by proving you’re prepared and reliable.

1. Skipping Due Diligence Is a Costly Gamble

Early on, I ignored gut feelings and skipped research to save time. Big mistake. One bad deal later, I realized due diligence isn’t optional—it’s your safety net.

What I Do Now: I dig into every detail before committing—property history, zoning laws, financials, the works. Investors value thoroughness, and trust me, showing them your diligence will help make sure that you are someone they can trust in the deal. 

I recently posted in my YouTube channel a recent property we purchased where we scored over $5 Million in purchase price just by doing the right due diligence.

2. Cash Flow Beats Wishful Thinking

I chased properties for potential appreciation and learned the hard way that cash flow is king. When markets dip, it’s the steady income that keeps you afloat.
What I Do Now: If it doesn’t cash flow from day one, I walk away. Properties in areas with high rental demand, like New York or Illinois, have been my go-to for stability.

3. Leverage Is a Double-Edged Sword

Using leverage can amplify your gains—or your losses. In the early days, I over-leveraged deals, and when the market shifted, it hurt.
What I Do Now: I keep my loan-to-value ratios conservative and always have a backup plan. This not only protects my investments but also reassures that I’m managing risks responsibly.

4. Your Network Fuels Your Growth

I used to think I could do everything alone. Wrong. Real estate is all about people—partners, mentors, and investors who help open doors.
What I Do Now: I attend industry events, stay active on LinkedIn, and connect with others regularly. Building strong relationships has made it easier to find deals and attract investors who share my vision.

Want to grow your network and unlock high-value connections? Download the Unlimited Investor Leads Book below  to learn proven strategies for connecting with investors who can take your real estate ventures to the next level.

5. Flexibility Keeps You in the Game

I’ve been stubborn in the past, clinging to one strategy even as the market changed. It cost me deals and opportunities.
What I Do Now: I adapt to trends, whether it’s new technology or shifts in market demand. Flexibility shows investors that I’m ready for challenges and prepared to pivot.

Conclusion

These lessons weren’t easy, but they’ve shaped how I invest and approach opportunities today. If you want to avoid the same mistakes, focus on preparation, cash flow, and adaptability. Proving that you’ve learned these lessons will also make it easier to figure out how to attract new investors who value a well-rounded, dependable partner.

Follow me on: 

• LinkedIn: @MarcinDrozdz
• YouTube:  @MarcinDrozdz
• Instagram: @MarcinDrozdz
• Facebook:  @MarcinDrozdz
  
  

The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.