Top Ten Myths
Preventing People from Investing In Real Estate
By Lloyd Segal , President of LACREIA
Myth 1 : No Cash
The Myth : “ You need money to invest in real estate .”
The Truth : Find a good real estate deal , and the money will find you . Ask any experienced investor and they will tell you that a lack of funds is never an issue lack of good deals is ! If you can negotiate a good price on a house , you will find plenty of partners or lenders willing to put up the money .
Myth 2 : No Time
The Myth : “ I ’ ve got a job , a spouse , kids , and little spare time to invest .”
The Truth : Turn off your television and you ’ ll have all the time you need ! People spend an average three hours per day in front of the tube . They spend even more time on weekends . Want to do something fun this Saturday ? Load the kids in the minivan and drive around looking for ugly houses . Make a game out of it giving a dollar to each of your kids that spots an ugly house . Tell them that each ugly house you buy means enough money to take them all to Disneyland .
Myth 3 : Everyone Says This Stuff Doesn ’ t Work
The Myth : “ Those late night infomercials and reality shows don ’ t work ”
The Truth : You can convince yourself that anything won ’ t work . Henry Ford once said , “ Whether you think you can or think you can ’ t , you are always right .” If you listen to the critics , the naysayers , and other pessimists , you ’ ll convince yourself it doesn ’ t work . Most people that criticize moneymaking ideas need to do so for their own ego . After all , if it were true , what ’ s their excuse for not being successful ? Make a point of not taking financial advice from anyone who makes less than you do .
Myth 4 : Too Much Competition
The Myth : “ There ’ s too many people trying to buy houses to find a deal .”
The Truth : There are more than enough deals to make everyone successful . At any given time there are hundreds of distressed properties for sale in your market for each investor looking for them . Besides , a majority of people who say they are investors are just sitting on the sidelines waiting for something to fall in their lap . Don ’ t be one of them . Go out and make deals happen ! You will be successful if you spend your time finding deals and not worrying about other people .
Myth 5 : It Doesn ’ t Work in My Market
The Myth : “ It doesn ’ t work in my city .”
The Truth : It works in EVERY market . True , it may work differently in some markets than others , but there are investors making money in every city , every day of the week . You have to learn your market – the rents , the trends , the local customs , the lenders , the title companies , etc . Then , learn the techniques and adapt them to your market . If you are in a hot market , you can buy and sell properties faster and ride inflation . If you are in a down market , you can find lots of bargains . Regardless , in every market , there are people with financial problems that are forced to sell their homes .
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