Fatal Real Estate Investing Illusions

Fatal Real Estate Investing Illusions

You might have met someone who wanted to make money but did not want to try real estate investing. There are a lot of people who fear this business because of misconceptions about it. Even you probably are hesitating to venture into real estate because of these "fatal illusions" about the market. Here's a short list of things about real estate investing that are merely illusions:


* Formal education is the key to success in this business. That is not correct. There are a lot of successful real estate investors who did not even finish high school. Having a college diploma is not a guarantee that you will make a fortune in real estate. What you need to do is help yourself to learn about the ins and outs of the industry. Hire a mentor. That will significantly cut your learning curve. A mentor is someone who not only knows what you should do, but also wants to see you succeed. You must read books and other educational materials. If you want to learn online, you can visit websites likes REIwired.com and watch informative videos.

* This business will die in the event of a recession. That is not accurate. In fact, there are methods of real estate investing that are going against the trend. Instead of slowing down, they are rising fast amid the economic slump. Rehabbing houses, for example, is a thriving scheme. This is basically selling a property after you raised its value through repairs and improvements. Rehabbing is flourishing because of the affordability of properties today. Rehabbers are able to buy cheap properties that they repair and later sell for a much higher amount.

* Real estate investing requires a very deep pocket. That is not true. You need a lot of money to buy real estate but the money doesn't have to come from your personal bank account. Lenders have realized the potential of real estate investing to thrive amid economic uncertainty and they are cashing in on this trend. Banks, credit unions, and other traditional lenders are still releasing loans. You can also get financing through hard money lenders. Also known as private lenders, these are people who have ready money and are also looking for opportunities to profit.