Whenever you want to invest in real estate, you might hear sentiments on why you shouldn’t be involved from other people. Some view real estate investment as a viable means to garner a stable amount of wealth while others think otherwise. Hearing about the common misconceptions will definitely cloud a fresh investor’s judgement and might even prevent them from pursuing investing. Lo and behold, we’re met with a plethora of “why you shouldn’t invest in real estate” statements. With that said, Unique Wealth Education is here to prove otherwise and will be your guide to knowing the truth of why real estate is the best form of investment. We’ll start by debunking the common myths starting with:
“You need a lot of money to invest”
To be fair, this depends on your definition of what “a lot” of money really is. If you’re thinking about needing a million-dollar capital to start with, then you’re absolutely wrong. The straight answer to this myth is that you don’t need to have a lot to invest. What matters is that you have a good understanding of the different real estate strategies and how you can manage the risks associated with them.
There are several niches that you can try out when you want to test the waters. It may be true that there are traditional methods, such as buying residential or commercial real estate, that ask for a much higher capital than the average requirement, but you need to remember that there are also ways to invest with zero to minimal down payment in the real estate industry. Wholesaling is a great way to invest using building a buyers list and going out and hunting properties to wholesale by assigning the contract.
“You need to invest close to where you live”
Completely untrue, there are ways to invest in properties outside your local city or state. If your goal is to eventually build wealth through your investment properties and you live in an area where real estate takes too much out of your pocket, you might want to expand your horizons if you want to have a good enough cash flow.
Technology has altered the way real estate business used to be conducted. This allows you to not be physically close to the properties you’re investing to ensure its success. Live where you want and invest where it makes sense.
“You need a full-time commitment in real estate investing”
It’s applaudable if you do though, committing yourself full-time probably means that you understand that your investments can reap you a hefty reward. However, this is one of the many reasons why people avoid real estate.
If you were planning on taking on rental properties, you would agree that collecting rent, property maintenance, and tenant screening would take most of your time. If you plan to take it on all by yourself in a traditional sense, then you better take this on as your full-time job. With the advancement and growth of property management strategies, your landlord priorities can be handled in your spare time allowing you to handle your full-time job. Also, there are other strategies to be a passive investor, such as being a private lender, or investing in syndications, funds or REITS.
“You need a license before you start investing”
Sure, there are benefits but this doesn’t entirely mean that you’re left with nothing to start with. Wholesaling is one strategy you can use without even procuring a license. You are basically contracting an investment property from a seller, then finding a buyer and assigning the contract to them at a higher price for profit.
Another niche you can use could be the infamous buy and hold strategy. This is a major attraction for beginners as the risks tends to be more manageable compared to other strategies. The entire concept behind this is that you buy a certain property and rent it out for monthly income.
“Real estate poses a lot of risks compared to stock market investing”
You might’ve heard this from someone investing in the stock market. Both are often compared to one another which sparks a debate about which one is better. To start with, investing in the stock market commonly ends up in you investing your money in companies that you don’t even work for, have no control over and is not tangible.
Risk mitigation and manageability over your assets makes real estate investment have the upper hand. If you really think this through, real estate is a physical and tangible asset. This means that it can’t disappear into thin air like a company could. Proper due diligence and qualified management ensures a higher percentage of success in real estate investing.
With the right knowledge from professionals who have been successful in real estate investing, you too can learn how to be successful in various areas or real estate.
Unique Wealth Education offers hands on training and coaching in various areas of real estate investing, where you can joint venture in flipping from A-Z as well get training on different methods of real estate investing.
Email us at email@example.com or call us at (734) 224-5454 to learn more!