What’s holding you back from making the move on your first investment property? Afraid it’s going to be too much work? Take too much of your time? Require more money than you have or that you’ll have to buy property in a neighborhood you wouldn’t visit after dark?
There are myths surrounding real estate investing that could be holding you back from making your first purchase. But these are just myths—don’t let them keep you from building longtterm wealth in real estate.
Here are 5 of the most common misconceptions that could keep you stuck.
1. To collect passive income, you need to become a landlord. You have a job, a family, season tickets and date nights – which means you don’t exactly have time to be shaking down tenants for rent checks or patching up busted pipes. So there’s no way someone like you could collect passive income through real estate investing, right? Wrong. With the help of a wholesale broker and management team, you play the role of the investor, not the landlord. While your role will require some oversight and decision-making, it’ll by no means become a second job.
2. You’ll get rich quick. Thanks to the recent popularity of house flipping reality shows, even first-time buyers think they have what it takes to make a fortune in a snap. Unfortunately, real estate investing takes time, even when it comes to flipping. In fact, a buy and hold strategy, one of the most profitable forms of real estate investing, requires that you hold on to your property for years or even decades in order to maximize your profits. It’s certainly possible to build a fortune with your investments, but will it happen overnight? Sadly, no.
3. You need to purchase tools to become a real estate investing expert. Have you ever watched an infomercial, browsed a website or even sat in on a lecture that promised to deliver the secrets to earning passive income? Were you told you’d need to purchase a DVD, a book or a ticket to a convention to learn these secrets? The idea that you have to buy information before you can succeed in real estate investing is more than just a myth – it’s a scheme. The “experts” that promise to share their investing secrets don’t even earn their income through investing. They earn it by hocking tapes and DVDs to naïve investors. This may be the granddaddy of all real estate investing myths. To protect yourself, follow one simple rule: don’t do business with anyone who tries to sell you information.
4. Most cheap properties are just money pits in bad areas.If you network and meet real estate professionals who know how to locate discounted propeorties, you will find opportunities everywhere! And it’s not just foreclosures—motivated sellers all over the country are waiting to sell at a discount for a quick sale. Companies like Big State Home Buyers work tirelessly to locate these sellers and can help match you up with high quality properties at substantially discounted prices. You can find these deals in every neighborhood, and some may be in great condition. Cheap properties aren’t necessarily damaged goods. In fact, when you work with a wholesale firm, finding high-quality homes for low prices is even easier. These experts have access to networks all over the country, offering the best value for your investment dollar.
5. It’s a bad time to buy. No matter what the current economy looks like, or where you’re searching for real estate investing properties, there will always be naysayers who tell you it’s a bad time to buy. This myth has never been less true than it is today – especially when it comes to buy and hold investing. Right now, more families are renting than ever before. Demand is high, and vacancies are low. Owners are able to fill properties faster and charge more in rent every month, resulting in more passive income and a larger profit year after year. Of all things, don’t let this myth stop you from investing.
For information on the best real estate investment opportunities available, contact Big State Home Buyers today at (713) 263-7466. Also, you can visit us at www.BigStateHouseDeals.com to find discounted properties available today! Our agents are excited to answer any and all of your real estate questions today.