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Is it true real estate investing is only for the wealthy? Can you buy with zero down? Do you need to know the "right" people? Let's take a look at some of the myths of real estate.
1. Real estate is for the wealthy. Of course money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Doing small deals, using partners, finding low-down deals, or just putting aside ten dollars every day for a couple years until you have enough down payment money - these are some of the ways to start with a little and invest in real estate.
2. "Zero down" is near impossible. I sold a rental property for $1,000 down. I trusted the buyer, and I wanted the 9% interest and higher price. He could have gotten a credit card cash-advance for another $30 per month and made it a "Zero-down" deal. "Zero down" simply means none of your money down, and yes, it happens often.
3. "Zero down" is the best way to buy. If you can't invest some of your own money, you'll have higher payments, spend more time finding suitable properties, and often pay more for them (generally cooperative sellers want more for their cooperation - I know I do). Zero-down deals are out there - they just aren't always the best deals going.
3. Experience is required. Sort of, but you get experience by investing. Use common sense, ask yourself how you can lose money on each deal, be willing to learn how to run the numbers, and you can start where you are.
4. Certain investors have a "knack" for making money. Maybe, or some just took the time and risk to learn the market and continue their education. "Knacks" can be learned.
5. You have to know the "right" people. Not necessarily. Of course it helps, so start the process by talking to investors, real estate agents, landlords, etc.
6. You need to be great negotiator. Run the numbers and make the offers based on them, and you can be the worst negotiator and still do okay.
8. You need "insider knowledge." You're on your way as soon as you understand one deal. Read and read some more, but the best "insider" knowledge comes from experience.
9. Fixer-uppers are safer investments. People have the idea that doing work themselves is the safest way to assure a profit, but poorly-planned "fix and flips" have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month, not bankrupt you.
Real estate myths are a mix of half-truth and misunderstanding. They are often pulled out to excuse mistakes due to a lack of research, or worse, to excuse never getting started. Real estate is still a great investment - just learn what you need to know.
This was an excerpt from "22
Real Estate Investing Lessons," which is a bonus when you
buy "69 Ways To Make Money With Real Estate." For more
infomation, visit:
http://www.99reports.com/make-money-in-real-estate.html