Most of us would love to be able to say that we’re heavily invested in real estate. After all, it seems like one of the most lucrative ways to turn a bit of money into a small fortune. With all of the news stories about entrepreneurs who made their money in the real estate market, it’s no surprise that so many people aspire to be real estate investors.
Despite the huge amount of people who aspire to invest in real estate, there are still a lot of myths out there about how it all works. To help you learn the truth about investing in real estate and perhaps get a little closer to your goal of investing yourself, here are the top myths about investing in real estate, debunked.
“You have to have millions of dollars to get started.”
If this were the truth, then only a very small amount of people would be able to invest in real estate. You don’t have to begin with a small fortune to become a real estate investor. In fact, there are platforms like Fundrise that allow people with a relatively small amount of money to become real estate investors. If you read Fundrise reviews, you’ll see that not everyone on the platform is a millionaire.
Furthermore, purchasing a rental property doesn’t require one to be wealthy. There are many areas throughout the country where you can purchase a duplex or a small apartment building with a very small initial investment. It’s true that you probably can’t buy a Manhattan skyscraper with only a few thousand dollars in the bank. However, that doesn’t mean that you can’t become an investor.
“The business is too risky and you’re more likely to fail than you are to succeed.”
It’s true that the real estate market can be volatile and at times even dangerous for investors. However, that’s not to say that no one ever succeeds and everyone goes home poorer than when they started. The real estate market is like any other market; you might win, you might lose or you might just break even. If it’s your dream to invest in real estate, don’t let market volatility stop you. Life’s too short not to pursue the things you want.
“Being a landlord is easy. The money just rolls in and your investments pay for themselves.”
Sadly, this isn’t true. It’s somewhat true that your rental properties could potentially pay for themselves; as in, the rent that your tenants pay is equal to your mortgage. However, don’t think that you can just kick back and relax while your property pays its own bills. Being a landlord involves a lot of hands-on work. If something goes wrong in one of your properties, it’s your responsibility to take care of the problem.
Investing in real estate isn’t all sunshine and roses, but it also isn’t all doom and gloom. If it’s your goal to invest in real estate, then you should pursue your goal. Just know that managing a property is a full-time job in and of itself and that you might not always get a good return on your investments. However, should things go according to plan, you have the potential to make a great deal of money.