It’s easy to get caught up in the myths and misconceptions that go around about real estate investment, especially when you’re just starting out. That’s why it’s always best to do your own research first to make your initial foray into this endeavor a more informed and smarter one.
Here are the top four real estate investment myths that you should know about and the accompanying truths that debunk them:
Myth 1: If they can do it on reality TV, I can, too
While it’s very easy to see the appeal and inspiration many get from binge-watching on their favorite house-flipping series, what you see on TV is not always what you get in real life. What most of these shows won’t show or teach you how to do are the nitty-gritty steps like filing permits, setting up LLCs, finding the right contractors, and dealing with other suppliers, among many others. These little details actually form a huge chunk of the entire process.
Myth 2: It’s quick and easy
Many are lured into making hasty real estate investments because of the promise of quick returns. Unfortunately, this type of thinking leads to more disappointment and buyer remorse than actual money in one’s pockets. There’s no shortcut in growing finances. In any type of investment, especially in the aspect of real estate, you will need a lot of preparation, hard work, research, and diligence.
On the flip side, there’s also the misconception that manual labor is a major requirement when investing in real estate. This can be a turn-off for some. This isn’t always the case and doesn’t apply to every investment. There are options for how hands-on you want to be, as well as several ways to get help when you need other professionals in the industry to help you see your investment through.
Myth 3: You need a lot of money to make it
Here is where doing your research will save you a lot of pain and frustration. While there are several real estate investment strategies requiring massive funding, there are many other viable opportunities available that are well within your means. You only need to know where to look and who to go to for possible recommendations. That could be a Realtor with a wealth of expertise dealing in the local real estate market, specifically in commercial properties in the St. Louis, MO area.
Myth 4: The market will always be up
This is one of the most dangerous assumptions that the uninformed can make about the real estate market. Over a relatively long span of time, properties can increase in value. However, within this entire period, the market will fluctuate. There will be highs and lows, depending on the overall economic climate and various other factors that may or may not be within one’s control. One best example of a factor that could hit market values with uncompromising severity is this ongoing pandemic.
This is why it always pays to be aware of market trends and current events that could trigger spikes or plunges in the overall economic climate. Talk to your agent for the best course of action when it comes to your real estate investment.
Got more questions regarding putting your money into commercial real estate? We at the Cardinal Realty Group have the answers for you. Our team of experts can discuss the best options for you and provide a great selection of commercial properties in St. Louis that will complement your requirements and financial capacity. Call us at 636.225.0385 or send an email to Hal(at)CardinalRealtyGroup(dotted)com today!