When it comes to real estate investing there are many myths out there. These myths are holding back potential investors, but they are simply that: myths.
First off, real estate investing is commonly perceived the way that it is seen on television, as easy and effortless, while in the real world there are many behind-the-scenes actions that have to take place. Things like setting up an LLC, finding contractors, and much more. There are many important steps that need to be taken and there is usually more to the net numbers as well.
Another myth is that you have to get down to the nitty gritty and handle things like toilet replacement. That’s one way to do it, but in most cases a contractor or other professional can deal with things like that.
A big draw to the real estate field is the perception that it’s a way to get rich quick. Real estate investing is a great way to become wealthy but it doesn’t usually happen overnight. It is possible but for most part it takes time to build success.
A lot of people also believe that it is necessary to spend a lot of money to get into the business of real estate investing. This is not so in all cases. There are many opportunities that require a small sum of money to get the foot in the door but it’s important to research all the options.
There is no age limit or minimum age requirement that has to be met in order to get into this line of work. Although it does help to have some years under the belt and to be more experienced, everyone has to start somewhere so why not here? The sooner an investor gets into the field of investing, the better. Why waste time working for someone else?
Raising the rent will likely not deter tenants from staying where they are. With each passing year inflation happens and in order to keep up, sometimes it’s necessary to raise the prices on rentals. In fact, it’s a good idea to plan on raising the rent periodically to keep up with similar markets and to keep it affordable and profitable to own the rental properties.
It’s true in many cases that the market will rise, but it really just fluctuates. It will go up and it will go down, then it will go up again. This is all normal but in the long run it generally increases. It’s important to invest in profitable properties and to keep them up so the value and the investment does not deteriorate.
The passiveness of real estate depends on an investor’s strategy. Once a property is in possession, the checks will not begin to roll in on their own. It takes more time and effort than that. But in the long run, you can develop an investment strategy that works for you.
If you’d like more information about investing in real estate, visit The Damron Group located in San Marcos, TX.
For over 30 years, the Damron name has represented the highest level of customer care, area expertise, and industry knowledge in the San Marcos, Texas real estate market.