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 .
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