Myths and beliefs are sometimes the main reason that holds us back on something that we wanted to do in our life. Beliefs and hearsays, most of the time, don’t have the basis, or it’s only a coincidence speaking from experience.
This is something that is not new to investors any more. Sometimes they depend on these opinions and theories from other people before they make an investment decision. I’m here to share with you my experience in my real estate journey so that you can avoid pitfalls that I have experience and replicate the successes that I have done as well. Today, I am going to discuss the top 7 real estate myths that usually hold investors back.
1. Investing is Just like TV
It’s not whatsoever, a lot of what’s going on TV doesn’t really go behind the scenes necessarily of all that goes into putting the deal together such as getting the real profit made, partnering with the contractors depending on what show that allow you to show the high level and not really give the actual work.
Getting to the industry thinking that it’s going to be easy and simple is not the case with these reality TV shows. There are several things that an investor needs to get to know. I actually turned down the chance to be in HGTV due to those various reasons, and one of these is I don’t want to give a misconception as it’s not really what is going on. As much as possible, I want to be transparent.
2. It’s a Get Rich Quick Scheme
Entering the world of real estate doesn’t guarantee a quick return on investment. Some may get their revenue fast, and some may get them longer than they expected. It is not for people who are impatient in getting the ROI after you have invested enough. From my personal experience is long term play in this industry and I am more on buy and hold.
3. Need a Lot of Money
You don’t need a lot of money when getting started. I definitely attest to that, on my very first deal I had negative funds in my bank account I found a partner who funded that in exchange of the help that I am going to provide to him. Needing a lot of money when starting is not true. After all, you just have to find ways on how you can get the funding that you want.
4 Investing Will Be Completely Passive
One important thing that you have to instill in mind if you are interested in real estate investing is it is not passive all the time. Yes, it is a passive source of income, but to get the ball rolling you have to do your part, especially during the early phase of the investment unless you plan to invest in a REIT. You cannot expect that checks will arrive at your doorstep, even if you are not doing anything. You have to oversee how things are going so that you are aware of the process.
5. Market Will Always Go Up
Another real estate investing myths that hold investors back is the belief that the market will always go up. In the real estate industry, expect that the market will go up or will go down. It basically depends on several factors like the city that you are in.
6. Have to Fix Toilets
One factor that holds investors to start in real estate is the belief that they have to fix or maintain toilets. While it is something that most landlords are doing, not all investors need to do this. There are ways on how you can do this without your hands getting dirty, like hiring a property management team or maintenance instead of doing them by yourself.
7. It’s Only for the Wealthy
It is wrong to think that real estate investing is only for the wealthy ones. This should not be your thinking if you want to succeed in this industry. Anyone can invest in real estate as long as they have the right knowledge, tools, and resources.
In conclusion, debunking the myths of real estate investment is important as this can help new investors understand that to succeed in the industry is you have to equip yourself with the right information.
P.S.
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