Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the "right" people? Let's answer by looking at some of the myths of real estate.
1. Real estate investing is for the wealthy. Money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Small deals, partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.
2. "0 down" isn't possible. I sold a rental property for $1,000 down because I trusted the buyer to make the payments, and I wanted the 9% interest and higher price. He could have gotten a cash-advance on a credit card for another $30 per month and made it a "0-down" deal. "No money down" means none of YOUR money down, and yes, it happens.
3. "0 down" is the best way. If you don't invest some of your own money, you'll have higher payments. You'll also spend more time finding suitable properties, and pay more for them (generally cooperative sellers want more for their cooperation - I do). There are 0-down deals out there - they just aren't always worth doing.
3. You need experience. Experience helps, but you get it by investing. Start with common sense, ask how you can lose money, be willing to learn the numbers, and you can start where you are.
4. Some investors have a "knack" for making money. Sort of. More accurately, some just took the time and risk to learn the market and continue their education.
5. You need to know the "right" people. It helps, so start the process. Talk to investors, real estate agents, landlords, etc.
6. You have to be great negotiator. If you learn to run the numbers and make the offers based on them, you can be the worst negotiator and still do okay.
8. You need insider knowledge. Understand one deal, and you are on your way. Read and read more, but the best "insider" knowledge comes from experience.
9. Fixer-uppers are safe. People have the idea that doing the work themselves is the safest way to assure a profit. Not true. Mis-planned "fix and flips" have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month.
10. The key is lowball offers. The numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate, if you understand creative financing - and how to do the math.
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
In investment real estate the quickest way to wealth is... Read More
One of your first steps, when you're getting ready to... Read More
Buying a house is the best way you can create... Read More
Choosing a first home can be a daunting task, but... Read More
Did you know that you can save tens of thousands... Read More
As soon as you decide to put your home on... Read More
Here are some Handy wee Tips to help you Sell... Read More
What is a 'Home Warranty?'A home warranty is like an... Read More
In today's tight housing market, many buyers are looking for... Read More
Real estate investing has become popularized today because of real... Read More
Bulgaria is a truly magnificent country, located in Eastern Europe... Read More
Of course you're curious, and you'd like to see what... Read More
Successful real estate investing depends largely on a correct assessment... Read More
Q: Hi Lou, I have a property under contract that... Read More
Are we in a housing bubble? To answer that question... Read More
Let's say you've had your home on the market for... Read More
In recent years buy to let has been a popular... Read More
Real estate agents are gearing up to face the biggest... Read More
So you are looking for an apartment to rent or... Read More
Leverage: With real estate, people and companies will lend you... Read More
Choosing the wrong Home Inspector can cost you a lot... Read More
When painting your home for resale, choosing the right colors... Read More
Are you using the equity from your home to purchase... Read More
A Single's Game of Real Estate (Getting started in your... Read More
We Sussex Countians are fortunate in many ways as we... Read More
In our fast paced and frantic real estate market, buying... Read More
I'm going to focus... Read More
Home Buying Don'tsYour home buying process is well underway. The... Read More
When real estate note brokers purchase partially paid notes, they... Read More
You're driving along the road when you spot it. There... Read More
As the second largest city geographically in Florida, this beautiful... Read More
According to the Federal Housing Finance Board:... "As of October... Read More
A typical real estate commission on a $234,000 home (national... Read More
Horses In My Back Yard by Jody Hudson, with Extensive... Read More
Fractional shares ("fractionals") are sometimes confused with other vacation property... Read More
So you've picked up your first (or third, or tenth)... Read More
Lots of folks think it can't be done.How in the... Read More
The Region has four distinct seasons but in general possesses... Read More
Getting your real estate website more traffic is easy if... Read More
Before you list you home for sale, determine what you... Read More
Central Illinois is an area rich in cultural activities and... Read More
For the first time "want-to-be" homeowner, purchasing an unfinished new... Read More
If you want to buy a house but don't think... Read More
If you're thinking about selling your home perhaps the 'for... Read More
Property Investing Secrets:How You Can Turn A Below Average Deal... Read More
The typical landlord starts off life as a light hearted... Read More
When it comes to real estate investing, most beginners find... Read More
When is the best time to buy? When is the... Read More
With new destinations such as Bulgaria, Slovenia and Croatia offering... Read More
So you've decided to take advantage of the booming real... Read More
When investing in real estate, it is highly desirable to... Read More
Financial ConcernsOf the three types of income property, industrial property... Read More
Purchasing a home is a major emotional and financial decision.... Read More
Over the last two years there has been so much... Read More
The Economist magazine published a special report in this months... Read More
Title to a property is a record detailing the owners... Read More
You could be forgiven for thinking that property is the... Read More
There is a relatively new and not always well understood... Read More
With the recent release from the UK's biggest mortgage lender,... Read More
Real estate investing usually begins with the purchase of a... Read More
There are several small businesses that retain hundred year old... Read More
Turkey is a paradise of sun, sea, mountains, and lakes... Read More
Real estate is one of the best vehicles of building... Read More
So you are looking for an apartment to rent or... Read More
Sue and Chuck DeFiore have the perfect solution for you... Read More
Perhaps you'd like to take advantage of today's great buyer's... Read More
Real Estate |