Oleg
Potemkin (RA), Partner Hawaii Realty International, LLC
Honolulu Oahu Hawaii
Tel:
(808) 398-9987 Fax: (808) 356-1737 Email:
oleg@hawaii-realty.com
10
Real Estate Investing Myths You Must Vanquish
These
are the Top 10 reasons people use for not succeeding in real
estate investing.
OK, maybe this list is a bit obnoxious, but I'm trying to make a
point. If I offend anyone with this list, it probably means I'm
right on track!
REASON
#1: I HAVE NO CASH
The Myth: "You need money to make money"
The Truth: Find a good real estate deal, and the money will
find you. Ask any seasoned investor and they will tell you that
lack of funds is never an issue; lack of good deals is! If you can
negotiate a good price on a house, you will find plenty of
partners willing to put up the money.
REASON
#2: I HAVE NO TIME
The Myth: "I've got a job, a spouse, kids and little time
on my hands"
The Truth: Throw out your television and you'll have all
the time you need. People spend an average 3 hours per day in
front of the tube. They spend even more time on weekends. Want to
do something fun this Saturday? Load the kids in the mini van and
go driving around looking for ugly houses. Make a game out of it
giving a dollar to each of your kids that spots an ugly house.
Tell them that each ugly house your buy means enough money to take
them all to Disney World.
REASON
#3: EVERYONE SAYS THIS STUFF DOESN'T WORK
The Myth: "That late-night TV Stuff Doesn't Work"
The Truth: You can convince yourself that anything won't
work. Henry Ford once said, "Whether you think you can or
think you can't, you are right."
Every real estate transaction has risks; some risks are realistic,
while others are remote. If you listen to the critics, the
"nay-sayers" and other pessimists, you'll convince
yourself it doesn't work. Most people that criticize money-making
ideas need to do so for their own ego. After all, if it were true,
what's their excuse for not being successful? Make it a point of
not taking financial advice from anyone who makes less than you
do.
REASON
#4: THERE'S TOO MUCH COMPETITION
The Myth: "There's too many people buying houses to find a
deal"
The Truth: There are more than enough deals to make
everyone rich. At any given time there are hundreds of properties
for sale in your market for each investor looking for them. In
addition, a majority of people who say they are investors are just
sitting on the sidelines waiting for someone to fall in their lap.
Don't be one of them - go out and make deals happen.
REASON
#5: IT DOESN'T WORK IN MY MARKET
The
Myth: "It doesn't work in my market."
The Truth: It works in EVERY market. True, it may work
differently in some markets than in others, but there are
investors making money in every city, every day of the week. You
have to learn your market - the rents, the trends, the local
customs, the bankers, the title companies, etc. Then, learn the
techniques and adapt them for your market. Six months ago, someone
told me that the San Francisco Bay Area market was "too
hot" to find a deal. Really? Talk to me in a few months after
the rash of technology layoffs!
REASON
#6: THE RECESSION IS COMING
The
Myth: "Certainly, the September 11th tragedy, the huge number
of layoffs and the decline of the stock market will kills the
economy, so anything I buy will go down in value."
The Truth: Sell cheaper or with attractive terms. When Dell
wants to move computers, they drop the price. When GM wants to
move cars they offer no interest financing. Be creative and go
things they make your houses sell and rent faster. If the prices
are falling, buy way below market and sell just below market. If
rental vacancies go up, offer free satellite TV (heck, it's
$25/month. When everyone else is "dooming and glooming",
it only clears out the competition.
REASON
#7: REALTORS WON'T COOPERATE WITH ME
The
Myth: "Real Estate Agents Don't Want to Cooperate With
Investors"
The Truth: The right agent can be your best friend and #1
source of business. I have a one agent that brought me six deals
in the past year. He knows exactly what I want and only calls me
when there's a deal. You need to educate a few agents and let them
know exactly what you want. Few agents have repeat customers - you
have to make them understand that you will be giving them business
over and over again.
REASON
#8: I HAVE BAD CREDIT
The
Myth: "I need good credit to buy houses"
The Reality: Good credit helps, but you don't need it to
make money in real estate. Lease/options, owner-financing,
flipping properties and other creative techniques will allow you
to buy real estate without credit. You can always use a partner
who has good credit. You can also borrow "hard money"
without having good credit. In the meantime, you can work on
fixing your bad credit so you can use it as an asset in the
future.
REASON
#9: I MIGHT LOSE MONEY
The
Myth: Real Estate is Very Risky
The Reality: Real estate is one of the safest investments
you can buy. The stock market is beyond your control. Savings,
CD's and money market funds won't give your enough return to make
money. You have to be willing to take a calculated risk to make
money. The more you educate yourself, the less risky real estate
becomes. However, don't think you need to know EVERYTHING before
taking action.
REASON
#10: I DON'T KNOW WHAT TO DO
The
Myth: I Need to Learn More Before I Start
The Reality: You probably know more than enough to get
started in real estate. It takes years to learn a lot. You never
learn everything. Success is an ongoing learning process. Read
some books, take some seminars and go take MASSIVE action. Then,
learn some more and take a lot more action. If you are really
impatient, enlist the help of others.
Henry Ford said, "Why should I clutter my mind with general
information when I have men around me who can supply any knowledge
I need?" Henry Ford was a smart man because he realized that
he didn't need to know it all if he could consult with others that
did. Ronald Reagan's cabinet was said to be the team of the
brightest people in politics.
The bottom line is that if you want to succeed faster with less
risk, have someone you can call on for knowledge.
About the Author .
. .
William Bronchick, CEO of Legalwiz Publications, is a
Nationally-known attorney, author, entrepreneur and speaker. Mr.
Bronchick has been practicing law and real estate since 1990,
having been involved in over 600 transactions. Visit his site at http://www.LegalWiz.com
Your
Hawaii Real Estate Specialist
Oleg Potemkin (RA), Partner Hawaii
Realty International, LLC
1888 Kalakaua Avenue, Suite C-312,
Honolulu, Hawaii 96815 USA
Tel: (808) 398-9987 Fax:
(808) 356-1737 Email: oleg@hawaii-realty.com
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