7 Myths About Real Estate Investing That Are Costing You Tens Of Thousands Of Dollars
- Author Alex Nghiem
- Published October 22, 2005
- Word count 664
Did you know that real estate investing has created more
millionaires that ALL other industries combined? The question,
then, is why are more people not invested in real estate? Even
with the increased awareness in real estate investing, more
people are still familiar with other forms of investing such as
stocks and mutual funds.
In this article, I will discuss 7 myths that about real estate
investing that are costing you tens of thousands (maybe
hundreds of thousands of dollars). These myths persist because
most people invest in real estate using conventional financing,
which often requires 5% or more as a down payment. Assuming that
$150,000 is average price of a house in your area (in most
cities, it's significantly more than that), you would need
$7,500 as a down payment (and this doesn't even include other
fees such closing costs). The purpose of this article is to
share techniques of creative real estate investing that debunk
these common myths about real estate investing.
- Myth #1: To create wealth, you have to invest stocks and
mutual funds.
Fact: Real estate investing has created more millionaires that
ALL other industries combined incluing Internet marketing,
stock investing and mutual fund investing. In fact, according
to the CEO of FNMA, in the hottest bull market in history, more
people ended up creating wealth through home ownership than
through stock ownership.
- Myth #2: Real estate investing requires a lot of money.
Fact: Once you learn how to buy undervalued properties, you can
find all types of people who will lend you their cash. You can
find these people at your local real estate investor
association or by contacting us. Additionally, you can use an
option (typically $10 to $100 for the option fee) to control
the property and not even need to raise any capital.
- Myth #3: Real estate investing requires good credit.
Fact: This is related to Myth #1. Again, once you learn how to
find undervalued properties, you can find all types of people
who will lend you their credit, especially if the property has
significant equity. Additionally, you can also use an option to
control the property and this technique doesn't require that you
have good credit.
- Myth #4: Real estate investing requires you to do major
rehabs in dangerous neighborhoods.
Fact: While you can indeed make good money doing rehabbing, you
can make even more money working with "pretty houses", houses in
suburban areas that need little renovation. In actuality, you
can make $20,000 or more per $100,000 of property (thus, in a
high priced market such as Florida, the average profit would be
$40,000 or more per property).
- Myth #4: Real estate investing requires dealing with
tenants, repairs or house payments.
Fact: Again, while you can do that, you can also make money in
real estate investing without ever having to deal with tenants,
repairs or house payments through the use of options. One of our
clients recently made $9,800 in 4 days on his last option deal.
- Myth #5: You can only make money in hot markets.
Fact: You may believe that you can only make money by investing
in hot markets such as Las Vegas and Florida. The reality is
that once you learn how to buy undervalued properties, you can
make money regardless of what the local or national market is
doing.
- Myth #6: You have to take huge risks when investing in real
estate investing.
Fact: You actualy have more control when buying real estate
than when you buy stocks and bonds. You can determine the value
of the house by using the multiple listing service (MLS) and
commercial databases and as long you can the properties under
value, you have a significant safety margin.
These myths about real estate investing are probably preventing
you from real estate investing and therefore costing you tens of
thousands of dollars. By using options and other forms of
creative real estate investing, you can overcome these myths
and make money in real estate investing without dealing with
tenants, repairs and holding costs or needing a lot of cash or
good credit.
To get a free real estate course on how you
can make $10,000 in 90 days...without dealing with tenants,
repairs and holding costs, visit
http://www.wealthautopilot.com/course
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