Real Estate Investing is Often "MythUnderstood"

Real Estate Investing is Often "MythUnderstood" Posted: 24 Jun 2008 12:15 PM CDT 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 surrounding 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 used as justification for failure, and many are repeated widely as cautionary tales. 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. Gary Voss, Income For Life member started out like most investors, basically drinking from a fire hose of information. "I was taking in lots of different information for lots of sources regarding investing. At times it was hard to stay focused or get anything done. When I joined Income for Life Matt and his team helped me focus on income producing activities and actions when investing." Always be on the hunt for new information but remember information with out action does not amount to money in the bank. Find knowledgeable investors with proven track records. Look for a proven system as well as experienced mentors to "coach" you though the process. Investing Myth 2: The Best Investments Require Knowledge Most People Don't Have 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. In fact, the reason so many people use real estate investing as an investment vehicle is precisely because it is something they have a basic understanding of. 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. Again, look for mentors or partners who can cut down on the learning curve. 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. This is what Income for Life is all about, mitigating risk by the use and implementation of proven systems. We have had many investors who have joined out program because we help minimize their risk. Many members have had strong interest to invest but were unable to take the first step out of fear. With us by their side they were able to move forward and enjoy success with their investments. Investing is about having sound criteria, solid proven models, 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 Are Able to Time the Market Truth: In Successful Investing, the Timing Finds You Timing is one of the most misunderstood concepts 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. The reality is if you are waiting on the sideline for the right opportunity to fall in you lap do you know here you are? You are NOT in the game! If you are not in the game the best deals will pass you by. Investing is all about racking up base hits on a consistent basis. When you do that every day the home runs or even the grand slam deals will find you. 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. They 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. Right now, at least here in St. Louis , the problem is not that all the best deals are take. In fact, it is quite the opposite. There are more killer deals than there are investors to buy them. My advices in this case, sharpen your pencil and seek out the best opportunities that fit your investment goals. Do not buy a property just because it is a "good deal". Almost all investors face the same fear or doubts when starting out investing in Real Estate. The difference between the ones who enjoy success and those that wait on the sideline is their ability to overcome the fear of the unknown in real estate investing. I hope these common "mythunderstandings" can clear the path between you and true financial wealth. To your success, Matt Shreves President, St. Louis Income for Life www.QuitWorkSomeday.com