Myth 6 : The Recession is Coming
The Myth : “ Although the market is good right now , I hear that we are heading for another recession .”
The Truth : There are always naysayers predicting market crashes . You need to ignore these pundits . Besides , there are always deals regardless which way the market is heading . If the market changes , change your strategy . For example , if the market falls , sell cheaper or with attractive terms . When Dell wants to move more computers , they drop the price . When GM wants to move cars , they offer nointerest financing . Be creative and do things that make your houses sell or rent faster . If prices are falling , buy way below market and sell just below market . If rental vacancies go up , offer free cable or WiFi . After all , when everyone else is “ dooming and glooming ,” it only clears out the competition .
Myth 7 : REALTORS ® Won ’ t Cooperate With Me
The Myth : “ Real estate agents don ’ t cooperate with investors .”
The Truth : The right agent can be your best friend and # 1 source of business . I have one agent that brought me six deals in the past year . She knows exactly what I want and only calls me when there ’ s a deal . You need to educate a few agents and let them know exactly what you want . Few agents have repeat customers . In contrast , you have to make them understand that you will be giving them business over and over again .
Myth 8 : I Have Bad Credit
The Myth : “ I need good credit to buy houses .”
The Truth : Good credit helps , but you don ’ t need it to make money in real estate . Lease / options , ownerfinancing , flipping properties , assignments , and other creative techniques will allow you to buy real estate without credit . Besides , you can always use a partner who has good credit . You can also borrow “ hard money ” without having good credit . In the interim , you can work on fixing your bad credit so you can use it as an asset in the future .
Myth 9 : I Might Lose Money
The Myth : “ Real estate is risky . I could lose everything .”
The Truth : Real estate is one of the safest investments you can make ! The stock market is beyond your control . Savings , CDs , money market funds won ’ t earn you enough money to make it worthwhile . You have to be willing to take a calculated risk to make money . The more you educate yourself , the less risky real estate becomes . However , don ’ t think you need to know everything before taking action .
Myth 10 : I Don ’ t Know What To Do First
The Myth : “ I need to learn more before I start .”
The Truth : If you ’ re reading this , you probably know more than enough to get started in real estate . After all , you ’ ll never learn everything . Knowledge is an ongoing learning process , not a result . Read books , attend seminars , and take action . Then , learn some more and take a lot more action . If you are really impatient , enlist the help of others .
Henry Ford said , “ Why should I clutter my mind with general information when I have men around me who can supply any knowledge I need ?” Henry Ford was a smart man because he realized that he didn ’ t need to know it all if he could consult with others that did . And this was before Google !
Now go out there and start submitting offers . Remember , you won ’ t catch any fish if you don ’ t put your hook in the water .
MEET LLOYD SEGAL
After practicing law for over 30 years ( specializing in real estate litigation ), Lloyd Segal assumed the leadership of the Los Angeles County Real Estate Investors Association in 2017 from the late Phyllis Rockower . Lloyd is an author , real estate investor , mentor , public speaker , and landlord . He is the also the author of four real estate reference books , including “ Stop Foreclosure in California ” ( Nolo Press ), “ Stop Foreclosure Now ” ( American Management Association ), “ Foreclosure Investing ” ( Regency Books ), and “ Flipping Houses ” ( Regency Books ). The Los Angeles County Real Estate Investors Association is the oldest ( 1996 ) and largest investor group in California . In his role as President , Lloyd is busy expanding LACREIA ’ s events and programs for members and real estate investors . For more information , visit www . LARealEstateInvestors . com .
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