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5 Real Estate Investing Myths

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Find out what are the myths that holds investors back from investing – PowerPoint PPT presentation

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Title: 5 Real Estate Investing Myths


1
5 Real Estate Investing Myths That Hold
Investors Back
2
Myth 1 Its quick and easy.
  • One of the biggest attractions to real
    estateand one of the biggest mythsis the lure
    of making fast and easy money. It is true that
    real estate investing can generate more money
    faster than just about anything else. Some jump
    in and see great success quickly. Not all sustain
    that, unless they have a smart business model.
    For others, it is a slower road. There is nothing
    wrong with that. What is important is having
    realistic expectations and building in
    sustainability, so that you keep what you make.

3
Myth 2 Its just like TV.
Reality TV shows have been good and bad for real
estate. On one hand, it has raised the visibility
of investing and has inspired many to get
involved and enjoy the rewards. Still, while
shows like those on HGTV display some of what
goes on behind the scenes, they dont show
everything. They do not show you how to set up
LLCs, find contractors, etc. They often make it
seem too easy. There are important steps in the
setup, and there is often more to the net
numbers. These things are vital for investors to
be aware of.
4
Myth 3 You need a lot of money to get started.
  • Some real estate investment strategies and
    opportunities do require a lot of money to get
    into. Some promote no money down tactics, which
    can often be tougher than theyre made out to be.
    However, there are viable opportunities that
    require a little money and that can be accessible
    to just about anyone. Dont let assumptions that
    you need a lot of money prevent you from getting
    started. Research your options.

5
Myth 4 Raising rents will force tenants out.
  • One of the financially crippling myths is if
    I raise my rents, my tenants will leave. This is
    not the case. This is a scared investor talking.
    I once purchased a house with an inherited tenant
    who had been paying 300 a month for 20 years.
    The fair market rent was 900 per month. Talk
    about a scared landlord! If you properly train
    your tenants and increase in increments every
    year instead of making huge jumps, then it should
    not be an issue. Know your local landlord-tenant
    laws and how much you are able to raise the rent
    each year. Then plan on consistently lifting
    those rents to maintain your profit margin as
    inflation increases your expenses.

6
Myth 5 The market will always go up.
  • Over time and in the long run, real estate
    generally does increase in value. It is also
    cyclical and can be a rollercoaster ride at
    times. In the run up to the crash, most people
    bought properties because they just assumed it
    was a sure bet that they were always going to go
    up. Unfortunately, that did not turn out so well
    for most people. There are always smart
    opportunities to invest, but choose wisely.

7
Summary
  • There are many myths and misconceptions about
    investing in real estate. This can be really
    harmful for those who arent alert. Real estate
    is one of the bestif not the bestway for many
    to get and stay ahead financially. Profitability
    will rely on you busting through these myths and
    taking smart actions.
  • Investors Which of these have you encountered?
    What would you add to this list?
  • Still Got Query? Get in touch with Real Estate
    Experts

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