Why Property Investors can Crash and Burn
Many experts say you can't lose if you put your money into Property. Not true. Hundreds of investors who have lost their savings through property investment tell a different story. Nothing is a foolproof investment - including property.
Learn why some fail in property and prevent it happening to you:
- Reason 1 - They don't give it the time.
The complaint is that the person has a job and family and therefore very little time to devote to this investment opportunity. The truth is, if they cut down on wasted time, such as watching television, or surfing the Internet, they would have the time to put into creating financial independence for them and their family in the future. - Reason 2 - "They don't know how to start."
The excuse is that you don't have the knowledge to get into this business. The reality is that most people who have investigated property investment would have done some study or talked to successful people. The best way to learn is to read books, or take seminars or join up courses.The other thing is to enlist the help of others. Henry Ford once said, "I don't need to clutter my mind with information when I have experienced men around me who can supply that type of knowledge when I need it." You don't have to know everything yourself, but you need to have people you can call on who will help you while getting started.
- Reason 3 - "They don't have the cash"
The complaint is that you need money to make more money. The truth is that if you find the right property deal, the money will find you. Lack of funds is never an issue with the experienced investor. Lack of a good deal, however, is. If you can find a good deal and negotiate a good price on a property there will be plenty of people willing to put up the money. - Reason 4 - "They don't have good credit"
The excuse is that you need good credit to buy houses. The reality is that good credit does help, but you don't need it if you want to make money in real estate. There are other options, such as owner financing or lease options that are creative enough to allow you to buy real estate without credit. You can always use a partner with good credit to get into investment.There is also the other opportunity of borrowing money from the non-traditional lending institutions, even though it may cost more in interest. While all this is happening, you can work on fixing up your bad credit so you can use it as an asset in your future dealings.
- Reason 5 - "There is too much competition"
The complaint is that there are too many people buying into houses, to find a good deal. The truth is that there are far more deals available than people. At any time there are many properties available in the marketplace, waiting for the right investor. The truth is most people who say they are investors sit around waiting for a property to pop up. Don't be one of these people. Go out and create your own opportunities and make your own deals. - Reason 6 - "The real estate people are hard to deal with"
The complaint is that real estate agents don't like cooperating with property investors. The truth is that if you find the right agent, he/she can be your best asset in your investing business. The agent is after commission. If you are successful they will be involved in the deals you do. This means they will create income for themselves, while helping you. Make sure you have one or two agents you work with and let them know you will be giving them business over and over again, as you increase your property portfolio. - Reason 7 - "Too many people say it doesn't work"
This is true only if you have chosen to believe the lies. It's easy for you to convince yourself that anything won't work. Henry Ford once said, "Whether you think you can or think you can't, you are right."Many people criticize moneymaking ideas because they are too lazy to do something about it. It doesn't matter what the opportunity is, if you listen to the pessimists and the critics, you will convince yourself it won't work. It's a good idea to keep away from these people because they cannot offer anything of value to you if they haven't done it themselves. Make a point of not taking financial advice from anyone who makes less money than you, or is less successful than you.
- Reason 8 - "They say that a recession could be coming"
The complaint is that because of the impending economic woes of the world, everything will go down in value in due course. The truth is that if everyone felt this way, nothing would happen. When the economy is down retailers will change their prices to attract customers. If prices are falling, buy below the market price and sell just below the market price. If rental vacancies climb, then offer freebies, such as cable TV or free lawn mowing etc to attract tenants.There will always be people who cast doom and gloom on any situation. They are the ones who never achieve anything. Stay clear of them and go with the optimists, because the optimists come up with creative ideas to generate wealth.
- Reason 9 - "They don't want to take the risk and lose their property."
The excuse is that real estate is very risky. The reality is that real estate is one of the safest investments you can get into. With other investments, such as shares or managed funds, you have no control. You are dependent on others and how successfully they run the company or the fund they manage. At least with real estate you have a concrete asset in front of you that you can touch and do with as you please. The more you educate yourself about investment, the less risky the real estate option becomes.
There is risk in everything. The key is to minimize your risk by educating yourself and taking small steps.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
MORE RESOURCES:
|
|
|
RELATED ARTICLES
Five Things to Help Sell Your Home Fast, and For More Money
Selling your home requires some thought and a clear plan of action. Here are five things to consider when you're getting ready to sell your home:1) Know Your BuyersAre most of the homes in your neighborhood being bought by first-time or move-up buyers? Depending on which group will be looking at your home, you'll want to do the things that will make your home appealing to those buyers.
Make Money As A Slumlord
Be a slumlord? Okay, I got your attention, now the truth. I really don't recommend that anyone endanger their renters with unsafe housing.
Rehab Your Way to Wealth: The Quick Way to Fixer-Upper Success
Completely rebuilding a house is not necessary to make money in investment real estate. Most times, if you have bought smart, you won't have to make a huge improvements on your investment property.
Horses In My Back Yard
Horses In My Back Yard
by Jody Hudson, with Extensive Collaboration From Chris Hudson
HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses.
Investing In Commercial Property
Investing in commercial property is well beyond the financial means of most people. Few can afford the large sums of money involved in buying commercial real estate.
Should You Buy a House or a Condo?
A big debate these days is whether or not to buy a house, or buy a condo. Most of this debate comes from a lack of understanding about condos, and what they are.
Do Bankers, Bubble, Discounters, & Justice Department Cloud Real Estate Industry?
Once relegated to the classified advertising section of the local paper, real estate has jumped to front-page headlines and covers of national magazines. Leaders in the real estate industry are weary from interview requests for their perspectives on market conditions, the ongoing battle with the banking industry looking for entry into residential real estate brokerage, online brokerage commission discounters and investigations into their business practices from the U.
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
Almost anyone can become a rural property owner; if you are willing to set goals, establish what your purposes are, plan ahead and set targets that are all aligned toward the same result. And, if you can be patient instead of requiring instant gratification.
Achieving Positive Cash Flow from Your Real Estate Investments
Even if you're counting on rising property values to eventually make a profit on an investment property, it's far more desirable to have a positive cash flow each month. If you're losing money on a property every month, it may not take long until your future profits will have been lost.
The Many Benefits Of Lease Purchasing
Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all.
Cheap Homes For Sale In Great Towns
Good Homes Under $50,000?
My wife Ana and I found cheap homes for sale all over the country during a seven-week drive, and we even bought one along the way. It was in a pretty little town in the mountains of western Montana, and it cost us $17,500.
Conditions Are Right For Buying The Higher Priced Home You'Ve Always Wanted
Higher interest rates and home prices in the past have kept home owners from purchasing larger homes. The current real estate market conditions, however, are encouraging for many home owners who want to "buy up" to higher priced homes with more to offer.
The Psyche of The Seller and The Tenant Buyer
For those of you who were not psychology majors the "psyche" is someone's mind. What motivates them.
Buy to Let Property Investment
In recent years buy to let has been a popular way of investing in residential property. Stock markets are out of favour with many investors who have seen the values of their portfolios, endowment policies and pension funds shrink, whereas property has generally continued to rise in value.
Tax Free Exchanges: Watch out for the New Residence Rules
On October 22, 2004, President Bush signed tax legislation that
contained a provision affecting Internal Revenue Code section 1031 (the like-kind tax-free exchange rules).Under this new provision a taxpayer who exchanges under Internal Revenue Code section 1031 into a rental house as a replacement property for a previous investor property and later converts it to his or her primary residence, is not allowed to exclude gain under the principal residence exclusion rules of Internal Revenue Code section 121, unless he/she sells the property at least five years from the date of its acquisition.
Lease Purchasing Is The Perfect Home-Based Business
Some call it the 30 second commute. We call it wonderful.
Use Targeted Decorating To Get A Higher Price For Your House
This article will show you how to sell your home quicker, get a higher price for it by using smart decorating techniques.The secret is to make your home feel like "my home", for the buyer.
The Pros and Cons Of Hiring A Real Estate Lawyer
You're travelling in a foreign country and you get arrested for something that you didn't even know was against the law. The potential fine is huge, more than you earn in 10 years.
How To Get More Money For Your House
If you are thinking about selling your house, you should take a serious look at your home through objective eyes. You're probably used to all the little quirky things that need a bit of fixing up and don't look quite right, but to a prospective buyer, these things can be a real turn off.
Why I Love Country Living
As somone who has lived in both places, I can tell you that country living certainly beats the hustle and bustle of city life! Living in a rural area has advantages that simply can't be bought at any price.In the city I was bombarded with the sounds of horns blowing and sirens blaring.
|