How To Get Rich - Learn These 3 Real Estate Myths

Do you know the real truth about buying revenue real estate ?

Do you think all properties will make you money ?

If you answered No, then you are honest and on track !

Myth Number 1

Anyone can be a successful Real Estate Investor ! Those who sell the numerous Real Estate courses want you to think this is true. They try to make you believe that anyone can be successful if they simply fork over the big bucks for their seminars and courses.

All you need to do is ask yourself one question. Why are these people spending so much money and time trying to teach you to become a successful Real Estate investor ? Would they not be making more money by simply buying more of their own properties ? Truth is there is big money in seminars and courses.

I'm sure there are some students that go on to great success. However, what is that percentage ?

Myth Number 2

Real Estate has to go up in value because they simply aren't making any more ! Tell this one to all the investors who were foreclosed on in the US over the past several years. Time and timing is a big factor when it comes to Real Estate investing. There are good times and not so good times for any area you may be looking at.

Maybe if you had one hundred years to invest this myth would be true. However, how many of us have that amount of time before the bank comes to collect ? Not many I presume. Real Estate wealth building requires extreme leverage. If you're caught on the wrong side of the market, watch out.

Myth Number 3    

You need not invest in anything else but Real Estate ! Ok, this one is just plain crazy, nuts. It is never wise to invest all of your money in one asset class. Proper investment diversification is a cornerstone to solid wealth building.

All investments move in cycles and not all together at the same time. It is foolish to put all your eggs in one basket so to speak. You buy in an asset class when it is favorable and when it makes you money. If something is uncomfortably expensive, look elsewhere.

What To Do

Real Estate investing can be very profitable. I know this from experience. However, if you are considering this asset class, be very careful and take your time. Don't take the lure of the high profile seminar promoters. There are plenty of good inexpensive books and courses out there if you do your research.

Once you learn the basics, start looking for one good revenue property that will put money in your pocket starting from day one. This means it must have positive cash flow or look elsewhere.

Real Estate has become a big lure for building wealth these days, mostly due to the high profile promoters. Remember, there are many more equally profitable investments out there with much less risk. The difference is, to many they are seen as boring. To the true wealth builder, boring is good.

As always, I welcome your comments and suggestions for future topics.