Investing in real estate is a great way to
build wealth, but are you too afraid to get in the game because of that pesky negativity getting in your way?
Here are some debunked myths about real estate investing,
you can get out there and start building wealth!
1. Stay away from the holidays
You might think that nobody is putting their home up for sale around the holidays, and you’re probably also thinking that nobody is looking to buy, either. Though it may not be the most popular time of year, there are many circumstances in which you can find an amazing deal around the holidays.
One reason is that some people don’t always have the choice as to when they put their home on the market — leading them to price it a bit lower. You also don’t have as much competition. Because it is the holidays, a lot of people assume they can just wait and find a deal until the festivities of the season have slowed down. But, while everyone else is stuck in the malls, you can find a great deal on a home to invest in!
2. I don’t have enough time
You’d be surprised how many real estate investors have full time jobs. Investing is just their side gig, and a profitable one at that. Real estate is the best start to create passive income — income that you don’t technically have to “work” for.
If you think about the amount of time you probably spend doing something that’s not making you any money, you could definitely find some time out of your day or your week to spend it on looking for the perfect investment.
3. I don’t have the money
So, you want to get into real estate but the only thing stopping you is your bank account. Obviously, your very first purchase isn’t going to be that mansion at the top of the hill. With very little money, you can purchase a small condo and move up from there. As you go, you’ll acquire more and more wealth to invest into something bigger. Soon, you’ll be hiring someone else to invest your money for you and you won’t even have to leave the house.
4. Real estate is too risky
Riskier than laying in bed all day? Probably. Riskier than the stock market? Definitely not. If you want to build wealth, there is always a bit of risk involved, but the way the real estate market is structured, especially after the crash of 2008, you can still make a profit, even in an average market.
It’s always going to be feel a bit scary at first to put your money into something with absolutely no guarantee what will happen. But, if you educate yourself enough and you keep your eyes open for a smart option, the “risk” is always worth it.
5. I need perfect credit
Do you have poor credit? There are a variety of ways to improve your credit before jumping in and purchasing a home. It will also help to break any bad financial habits so that your real estate investing career starts fresh.
However, you don’t need perfect credit to invest. It helps, but if you have less than perfect credit, there are still options out there for you. Other lenders outside of traditional banks are willing to look at your situation — which leads us to our next myth.
6. You can only get money from banks
There are plenty of other types of lenders out there willing to work with you. Traditional banks have a strict set of qualifications they abide by, and if you don’t perfectly qualify for those, you could be denied a loan.
The good news is there are other people out there ready and willing to loan money for investing in real estate. There are private money lenders, who loan money over a long period of time; hard money lenders who loan money with high interest rates over a short period of time; or you could find a partner to invest with you. The possibilities are out there.
7. I don’t know how to fix up and flip a house
Real estate investing will not make you an overnight sensation in the industry. It takes time. Also, not every single home you invest in will need top to bottom renovations. But, if you do come across a deal you can’t refuse and some work needs to be done - you don’t need to be an award winning interior designer. Talk to some experts, do a little research, and you’ll have a home the majority of the population looking to buy would be interested in.
8. I don’t know anything about the market
If there’s one lesson in life that you shouldn’t forget while trying to build wealth, it’s to never stop learning. Even the most experienced real estate agents who are experts in their market are constantly keeping themselves up to date on the trends. Investing isn’t just throwing your money at something and waiting for a larger bank account. It’s using intelligent options and cultivating a process in which your wealth can constantly grow.
So, if you feel like you have no idea what you’re getting into, do a little learning and you’ll realize all that knowledge could make you so much more money.