In real estate investment, we can hear a lot of mixed messages. When a business has been around as long as this one, there’s bound to be a few misconceptions, myths, and rumors that gets started. For new investors especially, it’s easy to fall into the trap of believing them!
A lot of these myths are no more than excuses—covering up our fears of taking a risk and trying something new. These myths, no matter how “innocent,” can actually do a lot of harm! They’re big time wasters—preventing you from pursuing the opportunities you could be capitalizing on right now.
What investment myths are you holding onto that are holding you back from your potential as a real estate investor? Let’s break down the big ones!
Myth #1) I have to be rich to invest in real estate.
Many people disqualify themselves from real estate investment simply because they think they don’t have enough money for it. They have this picture in their head of high rise condos in New York City or villas in San Francisco...but that’s not really what practical, everyday real estate investment looks like, and it’s certainly not where everyone starts!
Not only that, but the beauty of real estate investment comes in the form of leverage. So much of this business can be done without your own money. You can rely on bank loans or even private money lenders to make your investments happen. Sure, you need money to get started, but you certainly don’t need to be rich.
Myth #2) There’s no way I have the time for real estate investment.
Some people are under the impression that investing in real estate is, no matter what, a full time commitment. They think that having kids, or a career, or whatever other responsibilities, disqualifies them from investing in real estate. Real estate investment will take some of your time.
Even passive investors have to do their due diligence in research and continuing education, plus just keeping up with directing their investments as a responsible owner and investor. But to think that real estate investment has to be a full time job all the time right off of the bat is just crazy talk!
It can be a full-time commitment, but only if that’s what you want it to be. Most investors start off doing it on the side. Will your time management skills be put to the test? Absolutely. But you’re not about to have to pick between your day job and your investment career.
Myth #3) My area isn’t good for real estate, so I can’t invest right now.
Waiting for your local real estate market or economy to turn around before you invest? Many investors feel like they’re locked into their local markets. They feel like investing out-of-state is too risky, so they limit their options. And yes, investing out-of-state can be risky—if you don’t do your due diligence or tackle it with the right support.
Here’s the thing: you don’t need to let your geographical location define where and what you can invest in. With help from a turnkey investment company, you can gain access to markets nationwide: markets with thriving economies and real estate markets! They may even have price points that tip in your favor.
Sure, there are challenges that come with remote investing, but it opens up a whole new world of opportunity: and you don’t have an excuse to wait!
Myth #4) I need more education before I invest in real estate.
This one is tricky. If we’re honest, we could all stand to know more about this business! In real estate investment, we never really stop learning. But if you’re letting a lack of knowledge stop you from pursuing the opportunity—saying you need this degree, or that certificate, or you want to go to all of these seminars first...maybe you’re just making excuses.
Every real estate investor should do plenty of research before they get started. Not knowing what you’re doing does create great risk. But you don’t need fancy degrees! There’s a wealth of information readily available for you—often for free. It doesn’t take years of study, and oftentimes, experience is the best teacher.