There are several myths about real estate investment and real estate investors.
For one, there is a big difference between someone who works in real estate vs. someone who makes their money investing in real estate.
Luckily for you, this blog article will debunk some of the most popular industry myths!
1. Real estate professionals make excellent real estate investors.
That could be the case with some. But, it's often the exception in my experience.
That's like saying that all personal trainers are in great shape or that all bank employees know how to manage their money.
Because someone works in a business or industry doesn't mean they know how to do it themselves!
2. You can only become a real estate investor once you've worked in the real estate industry.
False. Many people start investing in real estate part-time while they work their regular job.
But, some of those individuals do switch to full-time real estate investment after.
Those that work in real estate could find it easier to shift to full-time real estate investors.
But, I've met many people who found real estate while managing another business or working in their present job.
3. I need to have ALL the capital before I start looking for deals.
Access to capital is vital to be able to do deals - no doubt.
It's that it doesn't always have to be your capital. Lines of credit, mortgages, and money partners are a few examples of sources of capital.
The key is to have credibility, a track record, and the right people on your team to make the most of an opportunity.
If you don't find a great deal, you'll never know how much cash is available in vacant multifamily buildings at reasonable prices for you.
4. The money will come rolling in on Day 1.
Don't expect to make a ton of money overnight as a real estate investor.
It takes time and patience to build wealth through real estate investing.
That being said, there are always opportunities out there for those who know how and where to look!
It's about having the proper knowledge and developing the skills, relationships & business strategies that lead to success.
5. I need a lot of money to get into real estate investing.
Buying property can indeed be expensive, but it doesn't have to break the bank!
Many options exist for investors with different budgets and experience levels, from small single-family flips or householders to large multi-million dollar apartment blocks.
6. The real estate market is overvalued right now, so it's not a good time to invest.
This is interesting because you hear this all the time whether the market is going up or down.
The fact is, if you know what you're looking for and have the discipline to see it through; there will always be deals out there.
But, if you're not finding deals in your market when prices are low, it's time to take a step back and re-assess what you expect from real estate investing.
7. I can't find any good mentors or people who want to teach me everything I need to know about real estate.
This is definitely one of the biggest hurdles for people who are considering real estate investing.
The good news is that you don't need to know everything before getting started!
Real-life experience and learning on your own time will be part of the equation. But, it's also important to surround yourself with like-minded people (both online & offline) who can help support you in whatever way they can.
The most crucial part of all this is to:
Keep an open mind and be conscious of your thoughts and those of the people around you.
There are alot of people out there that will tell you that you can't do something and give you plenty of reasons on "why not."
But, the real skill here is to question things and understand "how" something can work.