The real estate investing market is a complex and ever changing business community; this has made it a highly progressive industry where adaptability and up-to-date knowledge are musts for success. Unfortunately, these characteristics have also given way to a variety of industry myths pertaining to countless parts of the investing process. While it is almost impossible to pinpoint the exact origin of these assertions, one thing is for sure: they are both unfounded and detrimental to the industry at large.
I already covered a few common real estate investment myths — along with answers as to why they are not true. I will now explore several more myths plaguing investors across the country.
“You must have a lot of money to get into real estate investing”
Real estate investing — and, to an extent, any type of investing — can sometimes involve considerable sums of money. This fact has given way to the misconception that one must be rich to break into the market from the get-go, but in reality initial funds are rarely an issue amongst investors — regardless of experience level. The key to most successful real estate investments is
“You should only invest in local markets”
Local markets can serve as a great proving ground for new investors, and it be comforting to confine your initial efforts in what you know, but there is no reason why you cannot broaden your horizons in time. Limiting your reach will only cause you to miss out on promising new opportunities, so once you have found your feet, get into a habit of slowly branching out.
“Real estate agents and investors don’t mix”
Real estate agents are regularly typecast as a potential hindrances to the real estate investment process — mainly because of a perceived lack of willingness to cooperate. Fortunately, in most cases, these individuals can actually “be your best friend and a #1 source of business,” assuming that you have taken time to educate them on your specific investing goals. If you are able to develop a consistent working relationship with a real estate agent, you may find yourself garnering more promising deals throughout the year.