How I Lost $40k on My First Solo Venture

I want to share a quick story with you.

A tough lesson I learned the hard way, so you don't have to make the same mistakes I did.

A few years back, I decided it was time to strike out on my own. After a few years of working with an investor partner, I wanted to prove that I could make it solo. I found two townhome lots that seemed promising and decided to build four units. I was excited, motivated, and ready to take on the world.

But here's where things went sideways…

I didn't really know the area. It was unfamiliar territory, but I brushed off any of the doubts I had. I thought my experience was enough to carry me through. I jumped in without doing my homework. No thorough market research. No deep dive into the neighborhood dynamics – NOTHING.

As the construction wrapped up, reality hit me like a cement truck… 

The area wasn't attracting buyers willing to pay the prices I needed to make a profit. Demand was low, and interest was even lower.

Panic started to set in. 

Holding onto these unsold units was bleeding me dry. Every day meant more money down the drain in holding costs, taxes, and maintenance. I had to make a tough call…

In the end, I sold the townhomes back to the developer. And took a $40,000 cash loss on the chin!

It was a bitter pill to swallow. My first solo venture ended not with a win, but with a hefty financial setback.

I felt like I had let myself down. I felt like I had lost any hope I had in myself. And I felt like I had overestimated my capabilities BIG TIME.

And I realized right then that I can’t do everything on my own (maybe my ego got in the way!).

That experience was a BIG wake-up call.

I realized that buying the right lot ISN’T just about the land… 

It's about understanding the market, the neighborhood, and the demand. 

I realized I needed a better system. A foolproof method to evaluate potential investments so I wouldn't end up in that position again.

So, I went back to the drawing board. 

I developed a comprehensive process to assess every aspect of a potential lot — from zoning laws and local development plans to market trends and buyer demographics.

And that’s EXACTLY when everything changed.

I applied this new approach to every project, and over time, I built my business back up and stronger than ever. 

In '22, I scaled my home-building business to $12M in annual revenue.

No more costly mistakes. No more flying blind. Just solid, informed decisions that led to successful projects and a thriving business.

But I couldn’t have done this if I hadn’t gone through all the pain and a $40k loss.

One thing you can learn from me?

Don't let ignorance cost you like it cost me.

Buying the wrong lot can sink your project before it even starts. But with the right knowledge and tools? You know exactly how to buy a profitable lot, and this will set you up for success (guaranteed).