Even with all of the books and other materials on the market today that detail exactly how one goes about investing in real estate, there is still a great deal of mystique around the whole business. Mystique breeds fear. When people don’t understand a thing, whether that thing is a society from halfway around a planet, a species that doesn’t really resemble people or dogs or other animals they are accustomed to, or buying real estate, they become afraid. Sometimes they want to destroy a thing that frightens them. Sometimes they simply want to avoid it. Nine times out of 10, though, they will make up something about it. That’s why there are so many myths about real estate investing. Even intelligent, educated people believe these myths without so much as a second thought.
Let’s look at a few of those myths surrounding investment property, see if you have any swimming around in your head, and fish them out, shall we?
Myth No. 1: Only the disgustingly rich can get into real estate investing. Very popular assumption, but not true. In fact, a lot of disgustingly rich people got that way by investing in real estate. Rich Dad, Poor Dad guy Robert Kiyosaki said he was dirt poor when he started looking at investment property. There are things like bank loans and investors that can get you over the rough parts of buying real estate.
Myth No. 2: You have to be born into a family of real estate moguls to understand investing in real estate. Another falsehood. That’s like saying you have to be born into a family of brain surgeons to understand brain surgery. What you do have to do, in order to understand real estate investing, is study real estate. There are plenty of books and experts out there to help you along your way in buying real estate. Learn something about the business and then buy some investment property.
Myth No. 3: If you’re not extremely confident and smooth while buying real estate, people will see through you and you will fail. That may be true if you’re trying to manipulate them into believing something that isn’t true. But when investing in real estate, you are simply trying to look for a good deal. In real estate investing, you always have the power to walk away from a piece of investment property that doesn’t suit you. You can even stutter you way through the whole thing if you like.
Myth No. 4: In real estate investing, you have to know somebody to get your foot in the door. Not really. Of course, the more people you know, the more information about hot investment property will naturally come your way. It’s called networking. You can always meet people, just like you can always learn things.
Myth No. 5: You have to be a seasoned negotiator and a smooth operator to be successful investing in real estate. Seasoned negotiators are those who have been buying real estate for a long time. In order to have done something for 10 years, you have to first actually do something for 10 years. Which means that, for a while, you are a newbie at handling investment property. That is unavoidable. Everyone has to start somewhere. Practice real estate investing long enough and you will be a seasoned negotiator. You may even become a smooth operator.
Myth No. 6: You have to be a real estate investing expert. There is no way you are going to become an expert without first investing in real estate. You’ve heard of getting your feet wet? You have to just get in there and start buying real estate. It’s good to read a few books before starting, but there is no way you are going to be able to learn everything about investment property from books. Experience is the best teacher.
Myth No. 7: Investing in real estate is a big gamble. Sadly, people do approach real estate investing as though they were playing at the Roulette wheel in Vegas. These are the people who lose. When you start buying real estate, you need to learn as much as possible and plan your purchases to give yourself the best opportunity to succeed. Sure, some people will be better than others at finding great investment property. Those people will probably make more money. But they aren’t simply guessing. They are getting to know the markets and purchasing accordingly.
Myth No. 8: You can’t afford to make mistakes in real estate investing. Anyone who tells you that you can’t make a mistake isn’t being very realistic. It is human nature to make mistakes. It is inevitable. Try to minimize your mistakes when buying real estate, sure, but then use them to teach yourself how to approach investment property. Mistakes are your best teachers, and your most valuable assets.
Myth No. 9: One bad deal will sink you financially. If the deal is bad enough, sure. It could. But in learning how to approach investing in real estate, you should have learned not to sink everything you have into one deal when buying real estate. You should also learn that even a bad deal can make you some money. Aside from that, spend the money that you can actually afford to lose.
Myth No. 10: Real estate investing is just the latest get-rich-quick fad. If approached properly, investing in real estate isn’t a get-rich-quick anything. It is a methodical process of building your wealth. Ask Donald Trump.
Don’t let anyone feed you these myths. There is nothing mystical about investing in real estate. Buying real estate is simply a process, just like anything else. Investment property is big business, and it wouldn’t be if it were all a gamble.