Calling all Mythbusters!
The spread of misinformation is a real problem across all industries. Real estate, unfortunately, is no exception.
Before you start putting money into real estate, you need to tell myth from fact to avoid making costly mistakes.
Learn the common myths about real estate investing here!
Real Estate Myth 1: You Need a Boatload of Money
This is a common misconception when you first start your investment journey and keeps many beginners from taking the first step.
While having a little (or a lot) pocket money definitely makes things easier, you still can make a decent investment if you feel like your hands are tied.
Debunking Myth 1
For example, when shopping around for your own home, buy a building that has room for expansion. You can rent out your basement, build an on-suite, or build a tiny home in the back.
Make sure you check with your local laws about the permits required to make this work.
Some other options are:
- Real Estate Investment Trust
- Partnering for a purchase
- Buy a multi-unit home
Real Estate Myth 2: You Need a Ton of Experience
While starting as an investor certainly has its struggles, there are ways that you can prove your worth.
Banks and other loan options may feel hesitant in lending money. Additionally, you might feel unqualified about leaping into the world of real estate investing.
Debunking Myth 2
So how do you prove your worth? Research! If you are reading this, you are making a great first step. However, it shouldn't stop here.
Conducting proper research of your local market, laws and regulations, and the risks and rewards is a great first step.
However, we should never stop learning. Even veterans need to brush up on their skills and knowledge from time to time.
Real Estate Myth 3: Real Estate Investing Is Easy Money
Building a real estate investment portfolio takes time and effort. While you will likely receive passive income, it isn't as easy as 1, 2, 3.
But we should also look at the flip side. Many aspiring investors believe that they need to put in a lot of manual labor to make ends meet. Thankfully, this is also a misconception.
Debunking Myth 3
The key is balance. Hard work is necessary, but you don't need to make it a full-time job.
Especially since there are options for those who have a busy life and schedule, you can hire contractors, cleaners, or property managers to take care of maintenance and other items.
Real Estate Investing Myths: What's Next?
Real estate investing myths can dampen your motivation to look for sound opportunities. However, you can start your journey the right way with proper research and some hard work.
Just remember to fact-check the advice you are given, look for second opinions, and only trust credible sources.
If you are looking for some real estate investing tips, browse our blog! Or check out our property management services!
