We always wish to accumulate wealth and when it comes to the most desirable form of wealth, real estate undoubtedly tops the chart. We dream of owning luxury properties, but many of us never take pains to realize this dream. Do you know why? Well, we have grown up believing we need to have extraordinary luck and a destiny better than the average person to possess this form of wealth. We see real estate tycoons all around us every day and think of them as some kind of blessed human beings who own all the earth while most people struggle to afford a condo.
We are no fortune teller here at White Sands Property Solutions, but let us tell you one thing: your belief that you need to be lucky to own real estate is a myth, plain and simple. These real estate tycoons have achieved success because of their hard work and smart management of their time and efforts. So if you are going to buy income generating real estate, you need to get rid of the following myths:
Myth#1: You must be born wealthy
You must have come across lots of people who struggle their entire life to afford just one home. You see people struggling to arrange down payments for a single family home. It may have led you to believe that you need tons of money to build your real estate portfolio. It’s possibly the biggest myth that a person looking to own income generating real estate can possess. Go to the websites of real estate tycoons and you will realize even they – many of them, if not all – don’t invest their own money in acquiring income properties.
On their websites, you will see links like ‘investors corner’ asking people to invest in their projects in exchange for good returns. What you need to understand, and make your clients understand, is the fact that the whole idea of success in real estate investment revolves around how skilled you or your clients are at spotting income property opportunities and take maximum advantage of them. All you need to have is a property promising to generate good cash flow and a solid investment with a property management plan. You will see people knocking at your door asking you to invest their money in your project. It will take some time, but there is no doubt the fact that it is possible.
Myth#2: Real estate investment is too risky
No doubt your money lying in a savings account or in the form of bonds is safer compared to many other types of investments including real estate. We have seen property markets doomed during the 2007-08 global financial crises, haven’t we? That said, it is equally true that real estate investment, if planned properly and systematically, can be highly rewarding. What you need to understand is that if you own a property, no matter what happens you will still own an asset. Keep in mind, without risk, there’s no reward. We have to be willing to weigh the pros and cons of any endeavor and be willing to accept and embrace risk if we are to find great success investing in real estate.
Myth#3: Once a failure, always a failure
Many people invest in real estate, meet with some failure and give up. Almost every successful real estate tycoon has tasted failure, particularly at the start of their investment career. But what they did differently is that they didn’t give up, instead they learned from their mistakes and moved on to the next deal with more planning and expertise. We are not saying you can mindlessly buy properties and hope to be a successful investor. You have to make sure that whenever you make one mistake, you learn from it enough to get ten times stronger.
Myth#4: You have to be extraordinary
People think that they need to be extraordinary in every sense – great negotiation skills, a supreme level of confidence and a great personality – to be successful as real estate investors. There is no doubt, that all these skills may help you in your journey to become a successful investor, but the lack of them should not stop you from taking advantage of the opportunities that income properties can throw their way.