5 Modern Real Estate Investment Myths Busted
The world of real estate investment can be very exciting and quite lucrative for people who know what they are doing. That being said, there are several real estate investing myths that could get newcomers pointed in the wrong direction. The investment market has turned around here in Orlando over the last year, and we’d love to see you starting off on a solid foundation.
Today, we are going to dispel 5 common misconceptions that could be holding you back from realizing your full potential.
1) You Need to be a Landlord to Collect Passive Income
What many people don’t realize is just how big of a commitment being a landlord is. If you’re a busy person, then you might not have time to do this right. But this isn’t the only way you could collect passive income through real estate investment. You should consider hiring on a management team that can handle the direct dealings with tenants. This way you can still benefit from this secondary source of income without it becoming a major pull on your time.
(Quick Note: You’ll still need to provide some routine oversight on your properties with a management team in place.)
2) Real Estate Investment is a Fast Way to Get Rich
Popular house flipping “reality” shows portray a world where investors can make lots of money in a very short amount of time. The real reality is that success in this industry takes some serious hustle and it takes time. Take for example one of the more profitable investment strategies out there: the buy and hold strategy. Investors may have to hold on to these properties for years at a time before they can turn a profit.
Flipping homes can make you quite wealthy if you are willing to put in the effort, but this is not something that happens rapidly.
3) Experts Need Tools
Plenty of popular real estate seminars, lectures and websites offer advice on how you can make really great money via passive income earnings. Many of these also strongly recommend that you purchase some extra tool, such as:
- Educational DVDs
- Convention tickets
The unfortunate truth is that these are likely schemes to rid you of more of your money. These “tools” are likely not going to hold some mystical wisdom that will turn you into an house flipping genius. The people promoting these investment tools earn their living by getting people to buy their DVDs, not by actual real estate investment. The real professionals have adopted one simple rule for protecting themselves from this: don’t do business with someone who attempts to sell you information.
4) Foreclosed Properties are Money Pits
The last seven years have been rough for the housing market here in Florida. Several Orlando families are still trying to get their heads above water. This also means that there are a lot of foreclosures on the real estate market. Many of these properties are in great shape and would make for excellent investments. Working with a wholesale broker may also significantly improve your ability to identify high-quality homes for cheap prices. They have access to nationwide networks which means your next investment opportunity could be anywhere.
5) Now is not the Time to Buy
In order to be successful in real estate investment, you’re going to have to take some risks. There are always going to be some people who’ll tell you it’s not a good time to buy. Currently, the rate of homeownership is down and renting is way up. Property owners can find tenants with relative ease and at a higher rent month over month– providing them with a greater income year after year. Don’t let naysayers stop you from investing if you are serious.
Misconceptions can dilute our decision making ability and lead to crises down the road. Hopefully this post has helped clear up some confusion for any newcomers to the world of Florida real estate investment. There is a lot of opportunity out there for those who are bold enough to take advantage of it.