6 minute read
Debunking real estate investment
By Cornelius Jackson
dEbunkIng REAL EstAtE InvEstmEnt mytH In IRvInE: IRvInE Is tOO ExPEnsIvE fOR mE
We’ve all heard some very common investment stories from family, friends, and even celebrities that say real estate investments are easy to make. But what if you’re not an expert? What if you don’t have a lot of extra money to throw around? What if the person telling the story has no evidence and doesn’t really know what they’re talking about? It might be time for us all to let go of this idea that real estate is an easy get-rich-quick scheme. Not only is it bad advice, but it can also be really dangerous. So, let’s look at the top five myths about real estate for the people who are not real estate experts.
1. IT’S A MAGIC BULLET
When people start talking about making money in real estate, they almost always say something like, “I bought for $50,000 and flipped it for $100,000.” What they’re not telling you is that there were a lot of expenses involved in this deal too. The person might have put in $10,000 or even $20,000 of their own money just to pay the expenses on the deal. Most people don’t want to share that part of the story because they’re trying to make you think real estate is some sort of get-rich-quick scheme that gives you instant wealth.
2. IT’S ALL ABOUT LOCATION
Another common myth is that if you find a “hot” market with lots of demand and good appreciation rates, you’ll be able to make a bundle off your real estate investment. But what they don’t tell you is that there are a lot of things that can make the process more expensive. Demands for housing can be high in some markets and low in others. You may need to pay a little extra to find a good flipping location (see point above). Not every market is stable enough to let you make consistent money over time.
3. IT IS PASSIvE INCOME
Making money in real estate is a pain. It’s not quite as passive as people often believe. You’ll need to make decisions on how to better the property and actively manage it if you want your business to succeed.
4. IT IS EASY
There’s a lot more to real estate investing than simply buying and selling properties or paying the rent every month. There are terms you need to know, taxes that have to be calculated, different strategies you can use, and more.
5. YOU NEED LOTS OF MONEY
This isn’t totally true. When it comes to real estate investing, you can find properties that are quite cheap and some that are quite expensive. Even if you are interested in a property that’s out of your budget, you can find a partner with who you’ll share the cost of the property. Besides, you can also have a wholesaler for who you can sell a house and get a commission without any investment from your end. All you need to do is just looking for someone that’ll be interested in the property.
CONCLUSION
Investing in a home is a process that takes time and requires a lot of work. There’s a high tendency of you falling for any of these myths, especially if you do not have experience. Once you have experience, you will be able to see through the hype. You can then determine if a particular myth is true or not. Keep on learning and growing, and your dream of becoming a real estate investor will become a reality.
You can also watch the series on Facebook Live or our
YouTube channel. Tune in today!
References
https://cplinvestments.com/the-5-biggest-myths-of-real-estateinvesting-debunked/ https://www.fool.com/millionacres/real-estate-investing/ articles/5-real-estate-investing-myths-debunked/ https://www.gobankingrates.com/investing/real-estate/ common-real-estate-myths/
2021
By Jenny Gonzalez
We are in the pandemic as a result of the coronavirus outbreak. Since the outbreak, the real estate industry has evolved, and investing in real estate now requires more. If you want to invest in real estate during the pandemic, where are the best neighborhoods to do so? Here is what Jenny Gonzalez has for you that will help you in your quest.
WHY INvEST IN REAL ESTATE?
Real estate investment can provide long-term wealth. Many brokers and financial advisors believe that investing in real estate can provide wealth that is permanent. Real estate investing has transformed into so many different kinds of ways. Some people invest in real estate as a source of income to renovate it and rent it out. Others choose to use real estate as a way to resell it. The recent ‘quarantine’ was a wake-up call. It is a wake-up call to the investors.
Now let’s head over to the list of top 10 neighborhoods for real estate investment right now.
TOP 10 NEIGHBOURHOODS FOR INvESTING IN REAL ESTATE IN 2021
1. LAS vEGAS, NEvADA: Being the most populous city in its state, Las Vegas boasts of ever-increasing rent. The “no tax” law is a factor in the development of the economic growth of the state. The economy is diverse as there are multiple commercial interests such as tourism, gaming, etc.
2. DALLAS, TExAS: The cost of living in Dallas is one of the most affordable in the country which has increased the job growth as taxes for businesses and employees are lower. This continuously attracts more companies and individuals to the city.
3. CINCINNATI, OHIO: Several Fortune 500 and Fortune 1000 companies are resident in the state. This led to an increase in the employment rate of the state, and constantly enticing people to relocate there.
4. TAMPA BAY, FLORIDA: Another location of Fortune 500 companies, Tampa Bay is one of the places with incredible potential. The real estate market would skyrocket in the coming years.
5. SEATTLE, WASHINGTON: Research shows that Seattle is among the best places to invest in real estate because a good number of people move to the city every year. It has some of the best public school systems in the country.
6. DENvER, COLORADO: Always receiving a high ranking as one of the most comfortable places to live, Denver entices more people each year as it possesses some of the lowest mortgage rates. 7. OCALA, FLORIDA: For the past years, the real estate market in this city has appreciated inviting more investors yearly with the increase in economic and population growth.
8. BIRMINGHAM, ALABAMA: This city is an untapped market. The economic diversity is not just winning over investors, the affordability of real estate also is. More students move there every year because of the universities and colleges situated there.
9. COLORADO SPRINGS, COLORADO:
This is also a constantly appreciating location. Tanked as a top city to move to, the returns in investments are tantalizing.
10. CHICAGO, ILLINOIS: Chicago is one of the best cities to move to in the United States. The increasing rents are caused by the number of companies based there.
Real estate is always a good choice to invest in because there is always demand for houses to live in. It is also a great income stream as the returns are more constant than other investments. In these areas, it is even better because these are hot locations with amazing standards of living and jobs.
You can also watch the series on Facebook Live or our YouTube channel. Tune in today!
https://www.fortunebuilders.com/best-rentalproperty-markets/ https://www.noradarealestate.com/blog/bestplaces-to-invest-in-real-estate/ https://learn.roofstock.com/blog/best-cities-toinvest-in-real-estate
