Investing in real estate is something that is more accessible than people think. There are certainly a number of things to consider when deciding whether investing in real estate is for you, but there are also some myths that might discourage you from even exploring the possibility. Debunking these myths in your own mind could put you on the road towards real estate investment opportunities that before you simply assumed were not within reach.
Myth: You Simply Don't Have The Cash
While real estate investment certainly has cash requirements to it, it is not exclusive to only the extremely wealthy. There are a number of tricks and tips that you can use to get into real estate investing with little cash spent upfront. Perhaps the most common trick is to get partners involved in your investment deal, spreading around the cash requirements while spreading around the profit in the case of a good investment.
While it can be hard to give up profit on a deal that you feel you've done the most work to locate, that can sometimes be a small price to pay for getting involved on the ground floor of real estate investing. Many investors have taken small profits from initial real estate deals and parlayed those efforts into bigger and bigger deals. This is certainly a possible path for potential real estate investors.
Myth: You Need Special Inside Information
Many people think that successful real estate investors have some sort of special access to information that puts them in the know about the best real estate investment opportunities. Experience is the best way to gain the information you need to be successful in subsequent deals, but to get your foot in the door with a first deal, there is no magic information.
Do your homework on potential opportunities, factoring in the various traits of the property that could lend to or harm the potential profitability of your investment. These steps will build your comfort level with investment properties and after your first deal, will pay dividends as you evaluate future opportunities. Remember what you've learned and you will have a better knowledge base for the future.
Myth: You Must Negotiate Down Price
Yes, the price you pay for an investment property is an important part of the potential profitability of an investment, but it is not the only determining factor. Some people think that only low offers on properties are the ones that yield profitable results in the long run. This is simply not true as any investor that has done homework on a potential opportunity and evaluated the factors that contribute to profitability will find favorable situations that don't require below-market offers.
There is no requirement in real estate investing that says you need to be some kind of expert negotiator to make sure you get a good deal on your potential investment opportunity. Good opportunities are out there and the investor that puts research over negotiating skill will be better suited to capture those opportunities. A piece of information like knowing why a seller is selling the property in question in infinitely more valuable than expending time and energy spreading lowball offers around town.
A number of other myths exist about the hurdles to real estate investment, but the overall advice to be taken away is that real estate investment opportunities are more available than most people assume.
While it may seem like a select few have the touch for finding strong investment opportunities that mature in value, know that they all started as first-time investors making deals with partners just to get involved in the real estate investment industry. You too can be one of those first-time investors later telling stories of your first deal that while you never thought it possible, propelled you towards bigger and better investment opportunities.
This is another original article by Joe Lane, co-owner of The Lane Real Estate Team at http://www.joelane.com/. Are you looking for an experienced Tri City WA Real Estate agency? With 20 years of service based, business experience, Joe and Colleen Lane work hard to serve home buyers and sellers for the Tri Cities of Washington's Kennewick, Richland, Pasco, and surrounding areas.
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