People are always looking for ways to improve their financial situation, and one of the most thought of methods is to start your own business. And many people who decide to open their own business consider real estate investing. After all, we've all seen the late night infomercials that show rich investors driving their big fancy cars and sipping fruit drinks by the poolside of their huge ocean view home, right? It can't be that difficult to spot good properties and resell them, huh? And renting out a property must be a breeze!
WHOA! The truth is, real estate investing is a tough business, and even tougher if you're not fully aware of the time and commitment that you'll have to put into it in order to make it a success.
Before you put all of your hard-earned savings in this potentially lucrative business, you should know the facts. After all, as in any investment, it will only be as good as your research and knowledge of the facts.
If you are considering real estate investment as your new business venture, you should first read the most common myths associated with it.
Real Estate Investing Will Make You Rich Fast!
The hard reality is that most real estate investors spend an average of five years running their business before they ever see a good income. What's more, a full 95 percent of people who take those get-rich quick programs quit the business after just three months. Why? Because they'd fallen victim to the dream, and when it didn't play out, they became disillusioned. Think about any other business that you can invest in, would it be feasible to turn a profit instantly? Of course not! And it isn't possible with real estate investing either!
I Only Work Part Time A Few Hours A Week!
That's true, but your income will be limited--just as it would in any other part time business. The business of investing in real estate takes a lot of hours. You have to search for properties, negotiate a deal that will work with your numbers, do any repairs required on the property, and then either sell it, or rent it. That's not something you can do on Saturday afternoons! The more time you invest into your new business, the faster you will see the desired results you are after.
It's Not A Real Business, It's Just My Hobby!
Sure, if you want to earn about as much as a hobby would pay you. In fact, if you are going to invest your money in a real estate business, you must treat it like a business. You'll have to print professional business cards, make contacts in the industry and overall conduct yourself as a professional. When's the last time you heard a hobbyist closing $150,000 deals? Can real estate investing turn a good profit? Absolutely! Can it be done in fifteen minutes a day? Don't hold your breath!
No comments:
Post a Comment