Most Common Myths About Investing in Real Estate
The more people we talk with, the more we realize that there are some harmful myths about investing in real estate. They’re harmful because they hinder people from taking that important step and investing in their first real estate property. At MartelTurnkey, we want to help as many people as possible learn how simple it is to own cash flowing real estate. Here are the most common myths about investing in real estate and why they’re so, so wrong.
It Takes a Lot of Time
Everybody’s busy. We’re busy with our jobs, our families, our hobbies and all the other run of the mill tasks that eat up our day. Yet somehow a lot of people with regular jobs just like yours are able to make a lot of money on the side by investing in real estate. Why is that?
Because it’s a myth that real estate investing has to take up a lot of your time. You can get started in real estate investing while you keep your full-time job (in fact, we recommend it!). You can invest in real estate without sacrificing time from the other areas of your life, like time spent with your spouse or your kids or your friends. There are lots of ways to invest in real estate that don’t take a lot of time. Our recommendation is to start with turnkey rentals, which take up virtually zero percent of your time. You just buy the turnkey property and let your property manager handle the rest.
You Have to Already Be Rich to Make a Lot of Money in Real Estate
The most well-known real estate investors are millionaires many times over. But more people are realizing wealth in real estate everyday. Were they all rich to begin with? It’s possible that some were, but that’s definitely not a criteria for being successful in real estate investing. You don’t need hundreds of thousands of dollars to buy your first property. In some cases, you may only need several hundred dollars to get started in the real estate industry. And, you can start earning money every month from a cash flowing real estate property with only $20,000 or even less. Real estate investment is within almost everybody’s reach, including yours.
It’s Best to Buy Your Own House First, Then Invest in Real Estate
Are you saving up for a down payment on your first home? It’s an exciting proposition, the thought of finally owning your own home. Unfortunately, the reality is often different than what you anticipated. First homes tend to eat up a lot of your money and time. First there’s the decorating, then there are the repairs. You want to personalize your home, so you’re willing to spend a little more so you can have the nice things in life, right? And the previous owners didn’t take great care of the flooring, so the hardwood floors need to be refinished. New first homes are like a painting; they’re never really finished. By the time you know what’s happened, your credit cards are maxed out, the Home Depot staff knows you by name and there’s nothing left over to invest for your future. That can leave you in a dangerous financial hole that it’s hard to dig out of.
This is one myth about investing in real estate that can really sabotage your future. A better idea is to invest in a turnkey rental first, then save up for your down payment on your first home. Why? Because a turnkey rental:
– pays you cash each month that you can use toward your home purchase
– provides tax deductions so you can pay less tax on earnings and put that savings toward your home purchase
– offers you financial security that can last a lifetime
Remember, buy your investment property first, then decide if you want to buy a home for yourself or continue renting. This strategy will pay off in more ways than one. A personal home is not an asset. An asset is something that makes you money, like a turnkey rental. A personal home costs you money. It’s not an asset.
Being a Landlord is a Nightmare
You’ve probably heard a lot of horror stories about being a landlord. Some of them may be true. However, many of the landlord horror stories you hear could have been prevented with a few protective measures. The first thing is to make sure you invest in a landlord-friendly state versus a tenant-friendly state. The second thing is to carefully vet your tenants. This isn’t foolproof, but it heavily weights things in your favor as a landlord.
But the number one thing you can do to ensure your landlord experience is more like a nice dream is to have a property manager in place. A property manager acts as a buffer between the tenant and you, the landlord. The property manager takes care of a lot of other responsibilities, too. And just so you know, all of the turnkey rental properties at MartelTurnkey are in landlord-friendly states, have a trusted property manager already in place and have paying tenants who have been carefully screened.
By the Time You Pay For Everything There’s Nothing Left Over
This is a common reason that people state for not investing in real estate. They mistakenly believe that real estate costs money out of pocket every month. This is a myth that stems from not fully understanding what the term “cash-flowing” really means.
When investors talk about cash flow, they’re referring to the money that’s left over after everything has been paid for. That’s after the utilities are paid, the grass is cut and the property manager’s been paid. Cash flow is net profit. If you take a look at some of the turnkey rentals for sale on our site, you’ll see exactly what comes out of the rent payment each month, who’s paying for the utilities, how much the property manager gets and what your cash return would be each month. All of our turnkey rentals are cash flowing real estate that can make you money every month. Remember, cash flow is money in your pocket.
Isn’t it time you dispel these myths from the way you think about real estate investing? Don’t let hearsay and myths stop you from dramatically improving your financial future and the future of your family. If you’re ready to invest in a turnkey rental, please take a look at our available inventory and get in contact with us. If you still have some questions, we’d still like to hear from you. Drop us a line or leave a comment below.