Speaker (Danielle Robison) explains that real estate investing commonly incurs losses even for experienced teams; they intentionally do volume (example: 10 deals) to mitigate risk, accepting that a minority of deals may lose money while the majority succeed. The talk emphasizes realistic expectations, learning from mistakes, and building processes to reduce repeat errors.
Investing in real estate is not easy. You will lose money. And even as much experience that Flip and I have and the team that we have and all the safeguards that we've put in place because of the mistakes that we've made and the lessons that we've learned and the processes we put so that we don't make those mistakes again, we still lose money on deals. It's just reality. We tell our investors this is reality. It's why we do volume, because we are mitigating our risk by doing 10 deals knowing that maybe two of them are going to lose money and the other eight are going to be fantastic. So if eight are fantastic and only two lose money, we're good. We're in the plus side of things. If you're not mitigating risk in that way, you have to go into this knowing, hey, I'm going to lose some money at some point in time. It's just where is it.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
