7 Myths About Real Estate Investing That Are Costing You Tens Of Thousands Of Dollars

HomeReal Estate

  • 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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).

  1. 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.

  1. 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.

  1. 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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