What is Real Estate Investing Truth and what is myths? Here is what I have found out so far:
I know the title “Real Estate Investing Truth” isn’t perfect as I think this post is more about myths, which is the opposite of truth. I have received tons of e-mails with similar questions so I figured I’d try to clear a few things up.
First off. You don’t have to be wealthy to start. If you find a good investment with a good return, there will always be money for it. Banks, friends and family, wealthy people in your community, sellers, you name it. Know that it’s EASY to buy a property without putting any money down! If you want to know more: READ MY DOCUMENT ABOUT FINANCING (in swedish)
Secondly. Listen to everyone, but don’t trust anyone. I know that more than a few of you have been treated pretty poorly by banks, sellers, realtors etc. And it’s what to expect. Someone trying to sell you something will be nice, kind and friendly. But rarely honest. Bankers follow rules and orders from above. No matter how good you think your relationship is specific to any person in the business, know that they might turn against you at any time if their orders change.
The third. Don’t think you will save a ton of money by doing everything yourself. I learned a valuable lesson my first year in business. At the end of that year I did all my own bookkeeping and was going to hand it in to the Swedish IRS. Before doing, so I figured I should have a professional accountant to look at it to see if it could be done any better. That turned out to be a wise decision. He ended up saving me $2000 after deducting his salary. The same thing applies to contractors. If you know what you are doing, knock it out. If you are insecure, the hours spent failing your way to complete often end up costing more than bringing in a professional to do it.
Fourth. Something else. I realized this list could go on for ever. Have I been writing too long blog posts lately? What do you think? This covered the three most common myths about getting into real estate investing. If you want more information, let me know by e-mail or in the comment section :)