|
The Laurex Process:
Client Consultation
Ten Myths Preventing People from Succeeding in Real Estate Investing
By Bill Bronchick
The following are the top 10 reasons people use for not
succeeding in real estate investing. If I offend anyone with this list, it
probably means I'm right on track!
Reason #1: No Cash
The Myth: "You need money to make money."
The Truth: Find a good real estate deal, and the money will find you. Ask
any seasoned investor and they will tell you that lack of funds is never an
issue; lack of good deals is! If you can negotiate a good price on a house,
you will find plenty of partners willing to put up the money.
Reason #2: No Time
The Myth: "I've got a job, a spouse, kids and little time on my hands."
The Truth: Throw out your television and you'll have all the time you need.
People spend an average 3 hours per day in front of the tube. They spend
even more time on weekends. Want to do something fun this Saturday? Load the
kids in the mini van and go driving around looking for ugly houses. Make a
game out of it giving a dollar to each of your kids that spots an ugly
house. Tell them that each ugly house your buy means enough money to take
them all to Disney World.
Reason #3: Everyone Says This
Stuff Doesn't Work
The Myth: "That late night TV stuff doesn't work."
The Truth: You can convince yourself that anything won't work. Henry Ford
once said, "Whether you think you can or think you can't, you are right."
Every real estate transaction has risks; some risks are realistic, while
others are remote. If you listen to the critics, the naysayers and other
pessimists, you'll convince yourself it doesn't work. Most people that
criticize money-making ideas need to do so for their own ego. After all, if
it were true, what's their excuse for not being successful? Make it a point
of not taking financial advice from anyone who makes less than you do.
Reason #4: Too Much Competition
The Myth: "There's too many people buying houses to find a deal."
The Truth: There are more than enough deals to make everyone rich. At any
given time there are hundreds of properties for sale in your market for each
investor looking for them. In addition, a majority of people who say they
are investors are just sitting on the sidelines waiting for someone to fall
in their lap. Don't be one of them - go out and make deals happen.
Reason #5: It Doesn't Work in My
Market
The Myth: "It doesn't work in my market."
The Truth: It works in EVERY market. True, it may work differently in some
markets than in others, but there are investors making money in every city,
every day of the week. You have to learn your market - the rents, the
trends, the local customs, the bankers, the title companies, etc. Then,
learn the techniques and adapt them for your market. If you are in a hot
market, you can sell properties faster and ride inflation. If you are in a
down market, you can find lots of bargains. And, in any market, there are
people with financial problems that translate into bargain properties.
Reason #6: The Recession is Coming
The Myth: "Certainly, the September 11th tragedy, the huge number of layoffs
and the decline of the stock market will kills the economy, so anything I
buy will go down in value."
The Truth: Sell cheaper or with attractive terms. When Dell wants to move
computers, they drop the price. When GM wants to move cars they offer no
interest financing. Be creative and go things they make your houses sell and
rent faster. If the prices are falling, buy way below market and sell just
below market. If rental vacancies go up, offer free satellite TV (heck, it's
$25/month). When everyone else is "dooming and glooming", it only clears out
the competition.
Reason #7: Realtors Won't
Cooperate With Me
The Myth: "Real estate agents don't want to cooperate with investors."
The Truth: The right agent can be your best friend and #1 source of
business. I have a one agent that brought me six deals in the past year. He
knows exactly what I want and only calls me when there's a deal. You need to
educate a few agents and let them know exactly what you want. Few agents
have repeat customers - you have to make them understand that you will be
giving them business over and over again.
Reason #8: I Have Bad Credit
The Myth: "I need good credit to buy houses."
The Truth: Good credit helps, but you don't need it to make money in real
estate. Lease/options, owner-financing, flipping properties and other
creative techniques will allow you to buy real estate without credit. You
can always use a partner who has good credit. You can also borrow "hard
money" without having good credit. In the meantime, you can work on fixing
your bad credit so you can use it as an asset in the future.
Reason #9: I Might Lose Money
The Myth: "Real estate is very risky."
The Truth: Real estate is one of the safest investments you can buy. The
stock market is beyond your control. Savings, CDs and money market funds
won't give your enough return to make money. You have to be willing to take
a calculated risk to make money. The more you educate yourself, the less
risky real estate becomes. However, don't think you need to know EVERYTHING
before taking action.
Reason #10: I Don't Know What To
Do
The Myth: "I need to learn more before I start."
The Truth: You probably know more than enough to get started in real estate.
It takes years to learn a lot. You never learn everything. Success is an
ongoing learning process. Read some books, take some seminars and go take
MASSIVE action. Then, learn some more and take a lot more action. If you are
really impatient, enlist the help of others.
Henry Ford said, "Why should I clutter my mind with general information when
I have men around me who can supply any knowledge I need?" Henry Ford was a
smart man because he realized that he didn't need to know it all if he could
consult with others that did. Ronald Reagan's cabinet was said to be the
team of the brightest people in politics.
Article Provided by:
Bill Bronchick
Legalwiz Publications
|
