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  • The Biggest Real Estate Investing Myths – Busted!

    Posted by Lisa on May 11, 2024 at 9:45 pm

    There’s a ton of misinformation and straight-up myths surrounding real estate investing that keep people stuck on the sidelines. I can’t tell you how many times I’ve heard:

    “You need $100,000 to invest in real estate.” “It’s just way too risky, especially for beginners.” “Being a landlord is like having a second full-time job.”

    “Yeah, real estate is great if you’re already rich. But not for normal people like me.”

    These myths get regurgitated so frequently, many take them as gospel truth. And that’s a shame, because they stop a lot of people from ever exploring one of the most powerful wealth-building assets.

    Well, I’m here to bust those myths once and for all! I want to dispel the real estate investing boogeyman stories that keep people paralyzed.

    Because you know what? When I finally stopped listening to the naysayers, did my research, and took action, it turned out a lot of the “conventional wisdom” was completely wrong.

    So let’s start with the biggie: You DON’T need $100,000 to get started investing in real estate! That’s a total myth designed to keep you feeling stuck forever.

    I bought my first investment property, a multi-unit rental, with just $25,000 out of pocket. Yep, read that again – $25K! Pretty obtainable for a motivated person, right?

    My secret? I used an FHA loan, which lets you buy 2-4 unit properties with only 3.5% down. That’s not $100K, not even close!

    Of course, there are steps to get there like saving aggressively and getting pre-approved. But the barrier to entry is SO much lower than many people believe.

    Another myth I’ve heard too often? “Owning rentals is just as hard as a having full-time job.” HA! Not unless you’re trying to self-manage a 200-unit behemoth.

    These days, it’s crazy easy to pay an affordable property manager to handle 90% of landlording duties. I spend maybe an hour per month on my properties at most. Heck, even self-managing 1-2 small units isn’t that tough if you’re organized.

    People just love to amplify the horror stories. But realistically, the “time suck” myth is overblown for smart, systems-minded investors.

    The risk myth also gets overplayed: “Real estate investing is SOOO risky, you’ll probably lose it all!”

    Really? Because by my analysis, real estate has awfully low risk compared to many other investments. Grab properties with a smart mortgage and good tenants, and you’ve got:

    ✅ Forced equity pay-down

    ✅ Values hedged against inflation

    ✅ Leverage for higher returns

    ✅ Predictable revenue streams

    Diversify across a few well-chosen markets and rentals, and the risks plummet further. Tell me how that’s riskier than going all-in on a handful of stocks?

    I could keep going, but you get the picture. Real estate investing is WAY more achievable – and frankly, less risky – than most people think. The biggest roadblocks are often mental barriers and false beliefs.

    So let’s discuss: What are the other big real estate investing myths and limiting beliefs that need to be BUSTED? Has misinformation kept you from getting started?

    Drop a comment with the myths or doubts that have been holding you back. Then I’ll go through and provide DATA to disprove them! One by one, we’re going to shine daylight on those shadowy excuses.

    Because the honest truth? Most people can get started investing in real estate in their 20s or 30s. You just need the right mindset, some hustle, and an action plan.

    Once you shed the false preconceptions, you’ll realize how surprisingly achievable it is. So let’s clear the smoke and address your doubts! Who wants to shatter some real estate myths today?

    Lisa replied 1 week ago 1 Member · 0 Replies
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