Real estate has been a profitable source of income and investment strategy since the dawn of civilization. While most businesses and the stock market provide only meager returns of between 5 and 15%, flipping a house can give you a 31% return on investment in 2022. Additionally, many speculate an oncoming property price dip will make buying a rental property much more accessible.
Real estate investing can make you money in almost any market. In today's article, we're going to dispel the top 4 myths that act as mental roadblocks for potential investors. Keep reading to find out more!
1. You Need To Be Rich To Start
If you're looking to invest but don't have huge piles of cash handy, you have more options than you think. For starters, if you have a steady cash flow, you only need to save for the downpayment, and then you can finance the rest through debt. In 2021, only 30% of all houses bought were fully paid for in cash.
You can also club finances together and pay cash (or take out a loan) with one or more partners. This way, you split the rewards but also the risk. You also have the added safety of giving and receiving help within the partnership if someone has a temporary struggle.
2. Real Estate Investing Is Too Risky
This is one of the real estate investing myths that came from the 2008 crisis, but the fact is that the stock and futures markets are actually far riskier than real estate. The 2008 crash was actually counterproductive banking policies that got passed off as real estate investing mistakes by many in the global media complex.
In stocks, bonds, and futures, your investment's value is completely in the hands of other individuals who may be hiding incompetence or corruption. In real estate, you have complete control over your investment's management.
3. You Need To Own Your Own Home First
This seems like sound financial advice, but when you break it down, it doesn't stand to reason. Firstly, there's no law anywhere that says you must be a homeowner before you can start flipping or being a landlord.
You can finance a rental property while still renting your own domicile. Then you can use the rent income to pay off the rest of the loan.
4. Being a Landlord Is Difficult and Risky
With enough rental properties, you can make being a landlord your full-time job giving you enough time to run your properties as a business. However, if you have a great career, you can still be an "executive landlord" on the side. One of the best real estate investing tips for management would be to hire a professional property management agency to do the daily work for you.
Make the Right Decision For Your Wealth Today
Real estate is an investment type that will never be worth zero and will always be able to give you returns no matter what the broader market does. If our real estate investing advice has made you reconsider your investment hesitancy, then start planning today.
Save for a deposit, manage your credit score, and if you qualify for a loan, then you can invest in real estate today. If you want support and to share the risks with others, then you can even partner up.
Real estate investing doesn't only mean acquiring properties; it includes managing them well. If you're looking for help with property management in Jacksonville Florida, then contact us for the most professional service.