Real Estate Investing Myths That People Think Are Facts
TL;DR - There are a ton of investing myths in the real estate industry. That’s why we’re clearing the air to give you the proper info.
You enter the real estate game and you’re feeling mighty.
You’ve put in the hours — on YouTube, Twitter, and Reddit.
No one can stop you because…
you’ve learned EVERY piece of investing wisdom from the top gurus.
But the interesting thing about that wisdom?
It’s 90% wrong.
Okay, don’t quote that percentage. But a lot of info out there is just plain myth.
This happens because people without actual experience go speaking half-truths and poor ideas.
Then others catch on, so on and so forth.
Today, we’re going to dispel the rumors and give you the real game you need to succeed.
Real Estate Investing Myths That People Think Are Facts
Most of It Is Wrong
The real estate industry is full of myths and half-truths (at least online).
From social media to water cooler talk, it's easy to get caught up in lies. But the truth is, most of what people think they know about real estate investing is wrong.
In this article, we're going to dispel some of the most common myths about real estate investing.
Debunking the Myths
Let’s go over some of the top myths in the real estate industry.
They’ll help you get a clearer picture of investing…
no B.S. involved.
Myth #1: You Need a Lot of Money To Get Started
This is probably the most common myth about real estate investing.
People think that you need to have a ton of money saved up before you can even think about getting started.
The truth is, you don't need nearly as much money as you think to get started in real estate investing. There are a number of strategies that allow you to get started with very little money out of pocket.
Perhaps the most important one is leverage.
Myth #2: You Need Amazing Credit To Invest
Another common myth is that you need good credit to get started in real estate investing.
This simply isn't true. There are a number of financing options available for investors with less-than-perfect credit.
Myth #3: You Need To Be an Expert To Succeed
This is a myth that keeps a lot of people from getting started in real estate investing.
You might think that you need to be an expert in a number of different areas to be successful.
But you don't need to be an expert in everything to succeed in real estate investing.
There are a number of people you can hire that can help you with the different aspects of your investment.
All you need to do is focus on finding the right property and making sure it meets your investment criteria.
Myth #4: Real Estate Investing Is Risky
People think that because you're investing in something physical, it must be risky. But all investments come with some degree of risk.
There are a number of ways to mitigate your risk as a real estate investor.
By diversifying your portfolio and investing in quality properties, you can minimize your risk and maximize your potential for success.
Myth #5: You Need To Invest in Expensive Properties To Make Money
Many people think that the only way to make money through real estate investing is to buy expensive properties in great locations.
Actually, you can make money with all types of properties that are in unique places!
It doesn't matter if you're investing in a fixer-upper in a small town or a luxury condo in downtown Chicago.
The key is to find properties that meet your investment criteria that you can buy at a price below market value.
More importantly, just start!
You’ll learn the most by diving in. Which brings us to our next myth.
Myth #6: You Can Time the Real Estate Market
Similar to stock investing, people jump on the idea of timing the market.
They’ll say to “buy low and sell high.”
Well, DUH.
But if you’re waiting around all the time to get started…
you’re never going to start!
The best you can do?
Pay attention to trends in your desired market. Buy property when it's undervalued and hold onto it for the long term.
Instead of waiting for the perfect time to start, just get started.
You’ll lose more money than you’d save by not having any cash flow coming if you try to get the “perfect” deal.
Myth #7: All Contractors Are Worth the Money
This is another myth that can lead to big problems for investors.
Just because someone is a contractor, doesn’t mean they are automatically good at their job or worth the money you are paying them.
You need to do your due diligence and make sure you are hiring quality contractors who will do a good job and not overcharge you.
Myth #8: Section 8 Tenants Are Always Bad
Just because a tenant is on Section 8 doesn’t mean they’ll be a poor tenant.
There are plenty of good, responsible tenants who are on Section 8.
Of course, there are bad apples. But they’re in every property class.
The key is to screen your tenants carefully regardless of whether they are on Section 8 or not.
Myth #9: Real Estate Always Appreciates
While, yes, real estate normally brings in a good return on investment — there are low points in the market.
During these dips, your property may take a bit of a loss in value.
And because of that, you may lose money.
It’s good to know this so that you’re aware of how the market works. More importantly, that you don’t sell a good investment too early.
Myth #10: An LLC Protects You From Everything
You might think that setting up an LLC protects you from everything.
But it doesn’t.
An LLC offers certain protections, but it’s not the end-all-be-all.
You still need to be careful and do your due diligence with any investment you make.
Accurate Info = Good Investments
We hope you learned a thing or two by debunking these real estate myths!
They’re popular and get recycled by investors without the time put in.
But with the proper knowledge and wisdom, you can navigate your way through the muck.
The only thing left is for you to find some deals…
Happy Hunting!
How We Can Help You
Does investing in real estate sound intriguing to you? Would you like to learn more? We’d love to be of value!
At Undoor, we pride ourselves on teaching new and experienced investors how to maximize their gains with minimal stress. Our goal is to help you fall in love with real estate and real estate investing. What we’re most passionate about is maximizing investment gains for people like you.
Do you want to get key insights and advice that’ll help you get ahead of the game? Don’t hesitate to contact us for any and all real estate wants or needs.
