Misinformation is the greatest hindrance for both buyers and sellers of residential and commercial real estate, especially when engaging the industry for the very first time. There is so much misinformation revolving around out there that first time buyers and sellers have a difficult time navigating truth from fiction. Here are some myths debunked by industry experts Dave Kruse and Steve Knapp of Lockardrealty.com
Myth #1: The gift of foresight
“My experience in the market and gut tell me that XYZ opportunity is the way to go,” sasy a bad realtor, frequently. Certainly, successful residential and commercial real estate professionals do have an industry knowledge that would help them predict future market conditions. But that alone won’t get you very far. A true real estate professional takes his market experience and combines that with data points and industry specific information using the tools at his disposal to make fact based decisions in a market that often lacks certainty.
Myth #2: Only the wealthy can invest
Many back off from investing in real estate projects thinking that you must be wealthy in order to do so. But real estate investments are not about investing expensive commercial or residential real estate. Many investors start with small, affordable, and highly desirable real estate properties under 1500 square feet. These “entry level” investments are a great way to minimize your financial exposure while working your way to real estate investment independence.
Myth #3: Real estate investments are too risky
When you hear people saying that investing in real estate is too risky, you must know that it is a result of fear and ignorance. Income generating prospects in industries such as the commercial and residential real estate can get risky if you lack knowledge in the field. Educating yourself about the opportunity and doing your homework reduce the unseen risks that keep many armchair investors out of the market.
Myth #4: Don’t Invest Until You Know Everything
Well, define everything? While being prudent and understanding the real estate investment opportunity, you truly will not learn it all through books. Accumulating knowledge will only take you so far, eventually you have to roll up your sleeves and get your hands dirty. There will be times when deals throw you a curve ball and you will most likely strike out. But when you see that curve ball coming the next time, you will be prepared to hit it.
Myth #5: I Don’t Have Time Syndrome
If you want to be a successful real estate investor, you will have to set aside time to make it happen. Just as with anything, if you want to be successful at something, you just have to start doing it. Simply dreaming about being a residential or commercial real estate investor will not make you the next big player in the industry. You have to set aside the time to give yourself the opportunity to do it. What’s more important, bingeing on the latest streaming show or learning a new talent that has the potential to give your family financial freedom?
Top industry professionals with years of experience like Dave and Steve have debunked these common myths of several clients. If you truly want to become a real estate investor, then clear these doubts and fears. To consult the experts that have been there and done that, visit lockardrealty.com/