Real Estate Investing Often “Mythunderstood”

The wealth building power of real estate investing is a time-proven fact. Seems simple, right? So, why don’t more people invest in real estate? The answer lies in the myths and misunderstandings that surround investing. In his best-selling book, The Millionaire Real Estate Investor, Gary Keller talks about five “mythunderstandings” that can derail investors. These beliefs are often justification for failure, and many are repeated widely as cautionary tales.

 

Denver area residents can learn about  these mythunderstandings by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company.

 

Investing Myth 1: Investing is Complicated

Truth: Investing is Only as Complicated as You Make It

 

Almost anything taken as a whole can appear more complex than it really is. However, you don’t need to know everything in order to do something. Seek the knowledge you need to get in the game. Read. Ask questions. Find knowledgeable investors with proven records. Avoid the late night infomercial route.

 

Investing Myth 2: The Best Investments Require Special Knowledge 

Truth: Your Best Investments Will Always Be in Areas You Can or Already Do Understand

 

Investing in something you don’t understand isn’t investing–it’s speculation. Remember the Internet stock bubble? Real estate provides investors with a tangible asset. Nobody can take your investment property from you on a whim. But stocks can plummet to zero. Seek the specialized knowledge you may lack. Keep it simple and build your knowledge base as you progress.

 

Investing Myth 3: Investing is Risky, I’ll Lose My Money

Truth: Investing, by Definition, Is Not Risky

 

Investors don’t ignore risk; we mitigate risk by following sound principles and models. We buy property under terms that create a profit. December and January are two of the best months to buy investment properties in Colorado. Some would call trying to rent a house in winter risky. But if you know how to do it right, risk is taken out of the equation. Investing is about having sound criteria, the patience to find the right opportunity, and a willingness to take action. You can minimize risk while maximizing return.

 

Investing Myth 4: Successful Investors Time the Market 

Truth: In Reality the Timing Finds You

 

Timing is a misunderstood concept in investing.  Many inexperienced people think investors are poised on the sidelines waiting for opportunities. The truth is that timing is about being active.  The best deals come from the best opportunities, and the best opportunities go fast. You must be constantly searching for opportunities that meet your criteria. When you find one, you must be prepared to act. Quickly. I once discovered a great real estate investment based on personal information gleaned from the seller, and walked into $20,000 in instant equity. I found a solid tenant who signed a three-year lease. All in December. Good timing, right?

 

Investing Myth 5: All the Good Investments Are Taken

Truth: Every Market, in Every Time, Has Its Share of Good Investments

 

Two market forces create opportunities: economic and personal. Both types are always present and influencing the market. Economic forces include job growth, interest rates, population shifts and area revitalization. Personal forces include opportunities from positive circumstances, such as relocation, marriage and family growth. Others arise from negative conditions such as divorce, debt and foreclosures. Many opportunities are out there to help people with their problems. Investors offer solutions.

 

Many high-achieving investors have faced fears about investing that ultimately proved unfounded. These “mythunderstandings” can stand between you and true financial wealth. Call Mr. Mackessy today for a no-obligation consultation to discuss your real estate investing plans and dreams.