There are numerous reasons out there that make real estate investing seem daunting and intimidating. A lot of inaccurate portrayals about real estate investors are circulating in media such as books, infomercial TV shows and even social media. My goal is to guide you through all the misinformation circulating out there and give you the tools so that you can with peace of mind embark on your journey in finding your financial freedom through real estate investing. I am providing you with a short list of facts that you can use to make up your mind on the truth and point you in the right direction. My personal wish is to help propel you toward success and allay any fears you might have in your investing endeavors.
MYTH #1: You Have To Be An Expert in Real Estate Investing
In actuality, numerous real estate investors are amateurs who are investing in single family homes and duplexes. Many of them have created niches for themselves while doing it as a retirement plan and garnering supplemental income to their day jobs. One does not need to be certified or a licensed professional in real estate to invest.
MYTH #2: You Need Tons of Money
A majority of the investors make money by utilizing none of their own money. I can personally attest to this scenario. Money is a key component in nearly every transaction, but the simple fact is that it does not require you to put down any of your own money. The key is to find a great deal on a property which does take time, research and diligent effort on your part – that is the work you have to put into it. The beauty of it is that even if you have no money, all it will take from you is to bring value to a property transaction, structure it properly and then, you can trade that for the money you will need to make this deal a success. The most important part to remember is the creation or discovery of great property deal. From there, you are ready to attract the appropriate money partner to align yourself with. Now, you are setup for a win-win scenario.
MYTH #3: Real Estate Investors Are Not To be Trusted
My motto in the years I have spent in real estate investing is to treat others as I would wish to be treated which is with integrity, trustworthiness and courtesy. When one operates on this type of business model, then all parties benefit. Many a times I have been thanked by sellers who were stuck between a rock and a hard place. For many, selling to investors this is a life saving solution. Circumstances arise in peopleʼs lives where they do not have any money to repair their home and list it on the market. Others cannot afford to pay an agent commission to sell their property. Another issue is the lack of time to patiently wait until a qualified buyer appears. These are opportunities for investors to not only provide a service to others while at the same time making an income.
Myth #4: Great Deals Are Hard To Find
There are a few ways that real estate investors can tap into good deals:
- County auctions or at an online auction site such as Auction.com.
- Scouting road signs or postcard marketing – this type of investor usually purchases homes that are in a distressed state such as when the owner has died or there is equity in the home but the owner can no longer manage their loan payment.
- Check out the local Multiple Listing Service (MLS) – these homes are a bit more pricey than an auction but less repairs are needed. My advice is to research the bank foreclosures or short sales which are better options.
Myth #5: Real Estate Investing is a High Risk Venture
I am not here to sugar coat it for you and will admit that there are times you may encounter highs and lows on your quest to success in the field of real estate investing. However, if you have a burning desire to succeed and can put in the hard work while being disciplined, patient and driven, then know with time you will attain all your financial goals and highest aspirations. It is certainly not a cake walk and there is no overnight guarantee. What it does require is a solid plan of action and in time you can reap the rewards of monetary freedom.
In life, there are many risks and investing in real estate does involve some risk. 401K plans and mutual funds follow the direction of the stock market which has been flat for over a decade now and at one time experienced volatility especially due to the housing crash – another proven point that there is no such thing as completely risk-free. The beauty is even if you have a few negative outcomes, the upside and possibilities are much higher which can far outweigh a few such not so great moves. Most importantly, keep educating yourself on finance and investing on a continuous basis and never give up!
My parting advice to you: it is never too late to start. Live a life you love and are passionate about!