Time and time again, due to the age-old troublemaker known as word-of-mouth communication, these highly common misconceptions regarding real estate investing cause some serious financial heartache. So, even if you aren’t a beginner, I think that you should definitely take a look through this article to avoid having to be tricked by these sneaky misconceptions ever again.
The 20 Best Books for Aspiring Real Estate Investors!
Here at BiggerPockets, we believe that self-education is one of the most critical parts of long-term success, in business and in life, of course. This list, compiled by the real estate experts at BiggerPockets, contains 20 of the best books to help you jumpstart your real estate career.
3 Common Misconceptions About Real Estate Investing Newbies Believe
Wholesaling is Where Newbies Should Start
It has been said so many times over the years that many of us probably think that it is true now. However, wholesaling is not all that it seems. Everyone gets told how simple wholesaling is and how profitable it can be. While it is true that you can make a good living with wholesaling, I must repeat that it is not easy. It requires a truck load of hard work, effort and organization. Not to mention, technically, wholesaling doesn’t really fall under the real estate investing umbrella.
So unless you really enjoy it, are extremely good at it, or are getting a nifty return on your time and effort (not the money spent investing), don’t simply jump on the bandwagon just because everyone else around you is doing it or because it sounds fancy and you are hoping that it will make you a millionaire overnight. Stay true to yourself and what you have a deep passion for.
Being a Good Landlord is Necessary to Being a Good Real Estate Investor
Being a landlord does not automatically make you a great real estate investor. I strongly believe that you should only be a landlord if you truly enjoy the handy work and definitely not because you want to save that extra $100 a month. This is simply because your time is precious — any good investor knows that.
After all, if you don’t plan on becoming a full-time property manager or a handyman in the future, why put yourself through all this trouble when you should be focusing on how to increase your passive income? In my previous article here, I talk about how I made the mistake of managing my own properties when first starting out. Now that I have a PM company, it allows me to focus my time on higher value activities.
Related: What All Newbies Should Consider BEFORE Choosing a Real Estate Niche
You Need to Be Wealthy to Begin
People often believe that in order to begin property investment, you have to have a load of cash in your bank account before you begin. However, I am here to tell you that it is simply not the case. Real estate is extremely lucrative, and many of the top industry leaders are good at using other people’s money to operate their businesses.
Most successful real estate owners start off small, then slowly work their way up into bigger and bigger investments. So don’t freak out and think that you should avoid real estate investing if you don’t have millions. After all, many great investors start off small and carve out their own path to success from there. As you are aware, success in this industry doesn’t happen overnight, so be patient and be ready to make the slow climb one step at a time.
What other misconceptions are out there? Newbies, have you found the above to be untrue?
Leave a comment below!