Myths and facts about real estate investing

Looking to invest your extra cash in the hopes of turning a profit? Curious about whether or not stocks, bonds, or real estate opportunities might be good options for you to explore as a means of making a little money?

The first step is to gather information and know the facts when it comes to investing. Whether you’re looking to win big on Wall Street or just make a dollar or two and buy of bonds, information is key.

Lately, real estate has been growing in popularity as a promising investment avenue for potential investors. More and more Americans are taking their chances in the real estate market with hopes that buying now will make for big returns later on down the line.

Before you go spending your entire life savings on some steal in South Carolina, first consider the myths and realities of real estate investing. Here are just five of the many real estate myths out there and the facts that counter them.

Myth #1: You Need A Lot of Extra Money

Yes, it is true that every investment opportunity requires a little start-up capital.  However, it’s largely a falsehood to believe you need an extra million dollars lying around to buy and sell properties for profit.

What’s more, many real estate entrepreneurs turn a pretty penny on someone else’s dime. That is, they find promising opportunities in the form of land acquisitions, present these opportunities to potential buyers with available capital, and work with others to make these large-scale purchases affordable.

Myth #2: Only the Rich can Become Successful Real Estate Investors

Your bank statement does not necessarily dictate or predict how likely you are to succeed at real estate investing.  You can find wealthy buyers to contribute to your investments or you can become a pro at turning fixer-uppers into gold mines,

Knowing when and how to buy are the most important factors to succeed in real estate investing. Whether you’re buying a home with bad credit or just recently finished negotiations with hard money lenders in California, property investments come in all shapes, sizes, and prices.

Myth #3: You Need a License and Specific Certifications

Another myth out there is that only real estate professionals have the qualifications to invest in homes and properties. This cannot be further from the truth.  Many individuals pursue wholesaling – buying discounted properties from sellers in trouble – and do so legally without license. You can also opt to work alongside a real estate professional and still invest sans certification.

Myth #4: Experience is Required

Again, there is some truth to the idea that experience improves one’s chances for success in the real estate market.  However, it’s largely a myth to believe it’s a requirement. Consider the fact that today’s top investors had to start somewhere to get where they are today.

Don’t let a fear of failure stop you from trying real estate investing the first place. You can only acquire experience with practice and you can’t practice if you never play the game.

Myth #5: You Need A Lot of Extra Time

The average American spends three hours per day in front of the television. Trade in that tube time for a little real estate research. You’ll soon have more than enough time to acquire all you need to know to make a sound investment. Turn house-hunting into a family outing and you can have a little family fun locating potential properties to buy.

There are thousands of myths out there when it comes to investing, whether it’s stocks or securities or property buys. Separate fact from fiction and learn how to get a mortgage with bad credit by talking with professionals.