Real estate investing has been a steady growth market for the past 10 years. With any great venture comes criticism and a host of naysayers due to jealousy or a lack of understanding. Stay educated and watch out for the common myths that people hear once they get started in real estate investing. Today we investigate 3 common myths when it comes to real estate investing.
Investing in real estate is too risky
It’s true that investing in real estate has some risk, however, where would your money go instead? There really aren’t any risk free investments out there; even sitting in cash or having your money in a savings account will cause inflation to erode your savings over time. Your 401k and mutual funds follow the stock market, which has been cumulatively flat for almost 15 years. The market obviously didn’t take too well to the housing crash, so that wouldn’t have saved you either!
So, you will have a few bad moves, missteps, foibles, and faux pas, but remember that real estate investing is a learning process with amazing upside potential. What is truly risky? Neglecting to educate yourself on real estate finance and investing.
You should only invest locally.
There are definite benefits to investing in local markets. After all, you know it. You know the local economy, the people, the neighborhoods and the other real estate professionals in the area. By not branching out into other markets, however, you’re missing out on some great opportunities. Plenty of investors purchase properties in other up-and-coming markets and find great success, thanks to good turnkey real estate companies and careful research. Still others build their own teams in other markets without going the turnkey route, and they find great success. How you invest remotely is going to come down to personal preference.
While we don’t recommend buying in an unknown market without careful consideration, remote investing is a perfectly valid and profitable path to take. Don’t miss out on a hot market just because you aren’t right in the middle of it. However, investors who say that everyone should invest locally and that locally is the only way to be profitable — regardless of why they are giving that advice — that is a myth that needs to be busted. Many, many investors are simply built and prefer to be passive, and their minds are open to investing in other markets. Those investors should ignore this myth and explore the best markets for them personally to find success.
Only companies or full-time pros make it in real estate
Quite the contrary–most residential real estate investors are amateurs investing in single family homes, duplexes, and other small and accessible properties. They do this as a retirement plan and supplemental income to their day jobs. They might even fall into the responsibility due to relocating, getting married, or dealing with a loved one’s estate. You don’t have to be a licensed real estate professional or “certified” to invest in real estate. Great deals are all around you and don’t require a “great deal” of money to get started. For more information on how to get started, call us at 9014178427 or email us at email@example.com