Typically, these myths are the standpoint why there are those who fail in real estate investing. These myths are often heard from those who never really made it to first base. This is not meant to offend those who are to be offended but an eye-opener.
Myth 1: No cash, no venture
Truth: Some might say that you would need money in order to make one. But in the case of investing in real estate, it is not wholly true. Once you have found a real estate deal posing a good offer, the money will eventually find you. If you ask an investor who has reached the peak of investing, he or she will inform you that lack of money is not the real issue; it is the lack of the best deals that is the problem. Think, if you have found a property offering a very good price, you will soon find a lot of partners willing to bring the money at your doorstep or creative ways to acquire the property with low or no upfront cash commitment.
Myth 2: It won’t work for me
Truth: If it just does not work for you, then the problem would probably be on your part. Being pessimistic does not bring anyone anyplace. You can forever convince yourself that this investment stuff will not work and be just like that for the rest of your life. Unless you try on something and give it your best shot, it will always be a mystery to you. Yes, there are risks in investing on real estate but that does not necessarily mean that the risks could outrun the benefits. Risks can be remote and sometimes realistic. If you will keep on basing your decision regarding real estate a total mess, something that can only happen for those who are gifted in the investment scene, then it will forever be like that “it won’t work”.
Myth 3: Real estate agents do not want to cooperate
Truth: Good and professional real estate agents are your best friends and are the ones who can pull you up once you have established yourself a good deal. There are agents who call up to you when a good deal has come up. Some agents will give you deals that are unimaginable and you can bet your bottom dollar on it. One of the reasons why you cannot seem to get along well with your agent is because you both misunderstood the likes of one another. It is best that you inform your agent about the deals that you want and your specific requirements.
Myth 4: This investment stuff is risky
Truth: In reality, even if you ask the prominent investors, real estate is the safest investment that anyone can venture in. This is because you own it and have certain control to manage it. But the thing is, you have to take a step and must be willing to take a risk in order to make money. Without calculating the risks, you will not be able to appreciate how things would eventually come out.
You must have sufficient knowledge about the entire real estate investment and business so that you will not get lost with how the system works, thus, decreasing the risk. However, knowing everything is not a prerequisite before verging into the deal.
Myth 5: Wait for the best timing to buy and invest in real estate market
Truth: There is no specific best and right timing in real estate investing. Both sellers and buyers have different timing to achieve their goals and objectives in real estate investment. When the real estate market is sluggish, many of us may think it is good timing in real estate investing. However, access to loan and financing may pose a challenge to many buyers. Cash flow from the real estate investment may be low or none due to oversupply situation and weak market sentiment.
When the real estate market is booming, many buyers may have concern of overpaying the property price and potential risk of property bubble burst. Thus, the best timing to buy and invest in real estate market is when you are ready to do it based on your need, holding power and investment objectives. Real estate investing needs to be viewed as medium to long-term investment. Short-term investment objective is to ensure there is cash flow generated from your real estate investment. There is common saying, “Don’t wait to buy real estate. Buy real estate and wait”.