Real Estate investing is a game in which fortunes are made and lost, it is also a fertile ground for myths. Here are 10 common real estate myths and the realities of the modern market.
Excuse #1: I don’t any capital
The Reality: Remember the old adage build it and they will come. Well that applies to real estate too. Find a good deal and the money will follow. If it doesn’t you aren’t looking hard enough. You may have to beat the street looking for partners but the truth is that there are always people looking for good deals, if you do the hard work people will rush to give you money. The deal may not look like you had originally envisioned but that fine, be creative.
Excuse #2: I’m too busy
The Reality: Everyone has the same amount of time yet some people manage to paint the ceiling of the Sistine Chapel while others just squander valuable time. Turn off your television, wake up early, give up video games, stop spending 2 hours per day on Facebook. If you don’t have the time you simply don’t want it bad enough.
Take your kids with you on a house hunting tour and stop to look at cool open houses. Kids love this and it will help you build up goals for the future. Let your children know that every ugly house you look at gets you one step closer to living in a really cool model home.
Excuse #3: People say that Real Estate doesn’t work anymore
The Reality: For some people real estate doesn’t work precisely for the reason just mentioned, if you don’t think it will work it won’t. Be too busy to worry about what other people think.
You will run into dream killers your whole life. If you listen to them too much you will become one of them and ruin the future for other people. Don’t be a dream killer. The truth is that real estate is a tough game and it comes with inherent risk but it is calculated risk and the odds are a lot better than Vegas.
Real estate has been a fabulous vehicle for wealth since wealthy monarchs collected empires. It worked then and it will work for many many generations to come. People will always need a place to live.
Excuse #4: There’s too much competition
The Reality: As a whole people are lazy, why do you think that TV is so successful?For every one person out there beating the street there are two dozen if not more stuck on the couch. Lots of people talk few people take action.
For those that take action and actively seek out opportunities they often have more opportunities than they can handle. Those that sit on the sidelines waiting for something to happen will most likely still be sitting there in 10 years waiting for a bone.
Excuse #5: I don’t live in a good area
The Reality: There are opportunities and strategies in every market. Part of learning the business is figuring out which market cycle presents which opportunities. Real Estate has a relatively low barrier to entry and for this reason when the going is easy many people flow into the market. When the going gets tough many of these people jump ship. If the number of deals falls by 50% but 80% of the investors have abandon ship there are more opportunities per capita in the bad market.
Excuse #6: There is a recession
The Reality: Keep your eyes open in the next couple of years for the real estate monarchs that made their fortune durning the recession. Fortunes are always made during recessions for those that are nimble enough to find the opportunities and savvy enough to figure out how to take advantage of them.
Recessions mean that you may need to get more creative. They also mean that the companies that emerge from the other side will be much more dynamic, flexible, and proficient. Some industries do dry up but people will always need places to live and work.
Excuse #7: I can’t find a realtor to work with
The Reality: Not all real estate agents will work with investors because they don’t understand the market. The truth is that most agents are in the game for the easy retail sale. They make more money and have to do less work. Like I said earlier, the barriers to entry into the real estate market are low, they are even lower in the sales market. Many real estate agents don’t have a clue.
The truth is that a good agent can be a god send. An agent that is actually in the business because they like the business will be much more effective than one that is in it for quick buck. Good agents can take time to find but when you do find them they are worth their weight in gold.
Excuse #8: My credit is shot
The Reality: Good credit makes things easier but many a real estate tycoon has made their fortune after learning some hard lessons that cost them their credit. Credit is a measure of your worthiness if you plan to subscribe to the culture of indoctrination. If you want to color outside of the lines there are plenty of ways to do it.
There are numerous no credit required techniques like flipping, owner financing, lease options or simply finding a partner. Having bad credit could actually force you to have to use your head a little more and prevent you from putting too much of your own money on the line.
Excuse #9: I don’t want to put my savings at risk
The Reality: Everything is risky. If you are invested in real estate you actually own something material. Talk to stock market investors that saw their fortunes dry up over night. Investment is risky but you are taking a calculated risk. Those that are willing to risk will be rewarded.
Excuse #10: I don’t know how
The Reality: On the job training is the best way to learn. Get your hands dirty and start actually looking for a deal you will be amazed by what you learn. Books can only teach you so much. At some point you must take the plunge.
After you have learned a few real life lessons come back to your books and you will be able to read between the lines. You will learn something that you missed before and be able to use your new knowledge to be more successful.
This is also where a team of intelligent people come into play. You can’t know everything but having a team of experts in your court that are a phone call away will allow you to take fast action on potential deals.
Take action on your real estate investing career, don’t let people stand in your way or tell you how things are when they themselves observe life from an armchair. As long as people walk the earth real estate will be a fabulous tool for wealth