64% of Americans own properties, and you’re likely to be among them soon.
But before you start investing in real estate, you have to consider if it’s something that would be a good fit for your finances. The good news is that real estate investing is a practical option with many benefits. The bad news is that there are many misconceptions about how to get started.
If you’re hesitant about investing in real estate, read on for four myths to help you get over your fears and take the plunge.
1. Only the Rich Can Invest in Real Estate
This is the most common myth about real estate investing, and it’s also the easiest to dispel. Real estate investing is not for the rich; it’s for anyone with a little extra cash who wants to earn a profit and build wealth over time.
If you’ve got $1,000 or more in liquid capital (money that you can use right away), then you have enough to start investing in real estate via a REIT.
Alternatively, you can take out a loan from any bank and ask them what kind of down payment they require to get started. Lenders will usually want to see at least 10% or more down on any property you buy. So, to purchase a $100,000 home, that means you’ll need about $10,000 in cash.
2. Available Properties Are Running Low
You’re not alone if you feel like there are fewer and fewer real estate opportunities out there. If you have your eyes set on buying a specific plot, here’s some real estate investing advice: There will always be another one somewhere else.
In fact, over 6.1 million homes were sold last year. This means that you have plenty of opportunities to capitalize on. Don’t commit to one property until you’re ready.
3. Real Estate Investments Are Risky
So you’ve likely heard that being a real estate investor is risky. That’s a myth. Real estate is an excellent investment choice because it has low volatility, which means that the price of your home won’t jump up and down like crazy.
The truth is, investing in real estate is actually less risky than investing in stocks or fluctuating digital assets like cryptocurrency and NFTs.
4. Real Estate Investing Is Time-Consuming
It’s true that being a successful investor takes time, but it doesn’t have to be as hard as you think. With the right real estate investing tips, you can learn how to invest online and make money while working on other projects or even while sleeping! You can set your own schedule and work at your own pace.
Don’t Let These Real Estate Myths Hold You Back
The good news is that these myths are just that—myths! In fact, it may surprise you how affordable and simple real estate investing can be.
If you’re in California and ready to invest but feel unsure about committing your hard-earned money to an unfamiliar asset; contact Income Property Advisors today! We would love to show you how easy it is to build wealth through smart investment strategies like rental properties or fixer-upper flips.