You need money to make money.
The truth is, it sounds like is common sense that buying a property will require cash on hand or perfect credit to get a bank loan, and it’s true to a certain degree, after all, bank mortgages require us to have both before getting approved.
So let me tell you how I got interested in investing, my land lord at that time was an older gentleman from Canada he and his wife would spend the winters in sunny Arizona and return to Canada in late spring one day I asked him how he could afford it he smiled and said you make it possible,I said I what, he said you and 17 others send me a check every first of the month,that ,really peaked my interest, at least with me he was always at the top of my list of must pay the first of each month. I decided to since I already Had a relationship with him I found ways to spend time and pick his brain it did not take long for him to figure out what I was after , his knowledge about real estate, But back to the you need money myth.
Lack of funds is never an issue to an educated investor , find a good real estate deal and the money will follow . partnerships in a local community of investors is commonplace.
There is private money ,hard money ,retirement accounts can be converted for real estate investments you would ask why would anyone give me money to invest on my deals and trust me that their money will be safe?
The answer is on myth 2
Real estate is a risky investment/you may lose money.
I’m not a math person but I like statistics and comparisons graphs and charts fascinate me, I look at what cost of goods were years past compared with today , the stock market? well I won’t go there today, I like easy to understand statistics and market trends. Here is what I mean in 1975 my parents bought their first and only home for twenty thousand dollars today they still live in that home debt free mortgage free and its valued at one hundred fifty thousand,not bad return even with amortization.
On every investment there is always a risk factor, stock brokers will ask you what your risk tolerance is before they decide which stocks are suitable for your portfolio , once you aquire them you have no control on maximizing your returns, it is always a good idea to get educated to minimize the risk on any investing
In real estate investing educating yourself can give you an edge more control and minimize your risk hence investors know they can trust their money with you for two reasons, the numbers you put together will spell out what their return on investment will be and a time line of expectation , two, their money is secured by the property itself what better guaranty than the asset itself.
I DON’T KNOW HOW.
I need to learn more before I can start.
Every investment vehicle has highs and lows the difference in achieving success is very basic know your market, get educated, master what you do or partner with those who do.
Success is an ongoing process taking that first step is always required to start any journey then the next step becomes easier and gets you closer to your target, back when I wanted to learn real estate the only options were the late night gurus that promised to make you a millionaire in 90 days somehow that never appealed to me, so I had to find other avenues.hence my Canadian landlord mentoring me. Today we have the internet , anyone serious about learning can start by finding local groups or communities that teach and mentor individuals at any level of experience .We don’t have to know everything to begin , but knowing the right people will help you get there quicker and more efficient.
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