7 Myths About Real Estate Investing That Are Costing You Tens of Thousands of Dollars

Did you know that real estate investing has created more millionaires that ALL other industries combined? The question, then, is why are more people not invested in real estate? Even with the increased awareness in real estate investing, more people are still familiar with other forms of investing such as stocks and mutual funds.

In this article, I will discuss 7 myths that about real estate investing that are costing you tens of thousands (maybe hundreds of thousands of dollars). These myths persist because most people invest in real estate using conventional financing, which often requires 5% or more as a down payment. Assuming that $150,000 is average price of a house in your area (in most cities, it's significantly more than that), you would need $7,500 as a down payment (and this doesn't even include other fees such closing costs). The purpose of this article is to share techniques of creative real estate investing that debunk these common myths about real estate investing.

1. Myth #1: To create wealth, you have to invest stocks and mutual funds.

Fact: Real estate investing has created more millionaires that ALL other industries combined incluing Internet marketing, stock investing and mutual fund investing. In fact, according to the CEO of FNMA, in the hottest bull market in history, more people ended up creating wealth through home ownership than through stock ownership.

2. Myth #2: Real estate investing requires a lot of money.

It is through smart "wholesale real estate investing" that you can increase your net worth by $20,000 to $100,000 on every real estate deal that you do.

Fact: Once you learn how to buy undervalued properties, you can find all types of people who will lend you their cash. You can find these people at your local real estate investor association or by contacting us. Additionally, you can use an option (typically $10 to $100 for the option fee) to control the property and not even need to raise any capital.

3. Myth #3: Real estate investing requires good credit.

Fact: This is related to Myth #1. Again, once you learn how to find undervalued properties, you can find all types of people who will lend you their credit, especially if the property has significant equity. Additionally, you can also use an option to control the property and this technique doesn't require that you have good credit.

4. Myth #4: Real estate investing requires you to do major rehabs in dangerous neighborhoods.

Fact: While you can indeed make good money doing rehabbing, you can make even more money working with "pretty houses", houses in suburban areas that need little renovation. In actuality, you can make $20,000 or more per $100,000 of property (thus, in a high priced market such as Florida, the average profit would be $40,000 or more per property).

5. Myth #4: Real estate investing requires dealing with tenants, repairs or house payments.

Fact: Again, while you can do that, you can also make money in real estate investing without ever having to deal with tenants, repairs or house payments through the use of options. One of our clients recently made $9,800 in 4 days on his last option deal.

6. Myth #5: You can only make money in hot markets.

Fact: You may believe that you can only make money by investing in hot markets such as Las Vegas and Florida. The reality is that once you learn how to buy undervalued properties, you can make money regardless of what the local or national market is doing.

7. Myth #6: You have to take huge risks when investing in real estate investing.

Fact: You actualy have more control when buying real estate than when you buy stocks and bonds. You can determine the value of the house by using the multiple listing service (MLS) and commercial databases and as long you can the properties under value, you have a significant safety margin.

These myths about real estate investing are probably preventing you from real estate investing and therefore costing you tens of thousands of dollars. By using options and other forms of creative real estate investing, you can overcome these myths and make money in real estate investing without dealing with tenants, repairs and holding costs or needing a lot of cash or good credit.

To get a free real estate course on how you can make $10^000 in 90 days...without dealing with tenants, repairs and holding costs, visit http://www.wealthautopilot.com/course

Real Estate Investing Deals That SkyRocket Your Net Worth 10-Fold

Consider these parameters for a real estate deal:

Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500

If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).

So here's a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:

If I offered to give you this deal in exchange for $10,000 in cash, would you do it?

Remember - this is hypothetical. The real question here is this:

Would you exchange $10,000 in cash for $87,500 in equity?

For most savvy investors, the answer is: Absolutely YES!

This is called "Wholesale Real Estate Investing" - the process of buying a lot of equity at a very significant discount from another real estate investor who has already done the hard work of finding a deal and getting it under contract.

Just think about that - consider how easy real estate investing would be for you if you had a network of real estate investors in your area (and maybe even all over the country) who, several times each month, offered you the opportunity to purchase significant amounts of equity for a severe discount...

...It would be quite easy to become wealthy, fairly quickly, wouldn't it?

The answer again, is: Absolutely Yes, it will.

...Now the burning question becomes, "Where exactly do I find these wholesale real estate investing deals?"

I know of at least 3 solid sources...

You've got to admit - it will be a pretty wonderful thing when you know how to find great real estates deals in which you can trade a small amount of cash for a large amount of equity without even having to find the deals yourself...

...And that's exactly what "wholesale real estate investing" is all about.

So let's get right to it. Here are 3 places to find wholesale real estate deals:

1.) Visit the local real estate investing club in your area. Almost all of these clubs have networking opportunities to work with other investors who wholesale deals regularly, and this is an easy way to find great opportunities.

2.) Watch for ads in the newspaper, television, and in other media that advertise slogans like, "We Buy Houses", or "Sell Your House in 9 Days" or anything similar to that. Most of the time, these people are real estate investors, and they are happy to wholesale deals to people like you.

3.) Watch your email-inbox. Why? Because if and when you choose to enroll in various free e-courses online, such as that via tm-RealEstateInvesting.com, you'll be provided with automatic notification about great local and national deals as they become available. But be forewarned - you've got to act quickly whenever these deals are announced, because obviously the response is always significant.

Happy Hunting!

Alain Diza makes it easy to step into the world of Wholesale Real Estate Investing. Learn the principles and private strategies the 'gurus' are charging thousands for. Get your free e-course at: http://www.tm-RealEstateInvesting.com

Investing In Son's Business Could Cause A Real Family Feud 

Q: My youngest son wants to borrow $5,000 to start his own business. My wife is afraid to tell him no. She thinks we should just give him the money and not expect anything in return. I disagree. He doesn't have a very good track record with money, so I'm a little worried that my investment will be lost. Should I loan him the money and hope for the best or just tell him no and hope he doesn't get too upset?

A: The first thing you need to do, Jeff, is determine if this money would be offered to your son in the form of a gift, loan or investment. The very wording of your question tells me that you have not yet made that all-important distinction.

It sounds like your wife wants to make a gift of the money, expecting nothing in return but the undying love of her last born son.

You, on the other hand, don't know if you should offer the money as a loan (should I loan him the money) or as an investment (worried that my investment will be lost).

Until you can make that distinction, your money should remain in the bank.

I have a very simple rule when it comes to loaning money to relatives: NEVER, EVER loan money to anyone you might have to sit next to at Thanksgiving dinner.

"Son, pass me that dressing and tell everybody the story of how you blew your old dad's retirement money..."

A loan from a relative is no different than a loan from a bank. You, Mr. Banker, are giving your son, Mr. Borrower, the use of your money for a specific period of time and you fully expect the loan to be paid back under specific terms, even if his business goes south. Sure, you will probably be a little more forgiving than a bank when the loan goes unpaid, but the damage to your personal relationship could be extreme and hard to repair.

In the most basic of terms if you loan your son the money you become the creditor and he becomes the debtor. Have you ever heard of a creditor and debtor having a very good relationship? Has Visa ever called you up just to ask how you're doing? Has your mortgage company ever named a kid after you? Probably not.

The same rule applies with investing in a relative's business. I have raised money for several business ventures and not once did I ever think about asking my relatives to chip in. The last thing I'd ever want to do is lose my mother's yard sale money. I'd never hear the end of it!

An investment is made with the understanding that your money is totally at risk with no guarantee of return. Even under the best of conditions an investment in any business is a gamble. You are betting your money that the business will be successful and that you will get a payback at some point in the future.

Hug your money real tight before making the investment, because if the business doesn't make it, you will never see your money again.

You and your wife also seem very worried about making your son mad, which raises another huge red flag for me. If your son isn't mature enough to take the word "no" without getting upset, he's certainly not mature enough to start and run a business. Unless that business is a bicycle paper route, and even then I wouldn't put my money on his chances of success.

The bottom line is this: if you can afford to give your son the money and can do so without attaching strings to it, then by all means give him the money and wish him well. Encourage his entrepreneurial spirit and support him as a parent should.

Do not, however, expect anything in return and never bring up the money again, especially if he's the one carving the turkey on Thanksgiving Day.

Here's to your success!

Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs http://www.prosperityandprofits.com http://www.dropshipwholesale.net http://www.30dayblueprint.com

Be a Real Estate Investing Expert - In An Instant

Here's a simple method of getting to know your real estate investing market, which is VITALLY IMPORTANT before you can know if a property/price is worthy of calling a 'deal' or not... This 'LAZY' method of market research reveals some amazing facts about the real estate investing market in your area and it works for any area there is.... Take a local newspaper (you can get many of them online, for free, nowadays) and simply count the number of 'For Sale' and 'For Rent' ads, keeping track of them for later reference.

Usually, Sunday and Wednesday papers are the 'biggest real estate investing days', so, for now, just watch these. Keep track of the number of ads for a few weeks and watch what is happening to your market (hold on, now, we're coming to the part about you turning all this research into a really great real estate investment). Keeping more detailed records (what price for a 3/2/2 in the SW part of town is being offered for sale and rent wise, etc.) will yield tremendous knowledge, but, for now, just to get started in your real estate investing, stick with the basic 'total ads' research.

After a few weeks, you'll start to see 'trends' in the real estate investing potential of your area - maybe the number of For Sale is going way up and the number of For Rent is going way down... In such a market, what are you doing looking for 'flips' as real estate investments anyway? Such a trend clearly shows that there are fewer people buying and a high demand for rentals (perhaps a good time for you to pick up some deals for your long-term real estate investments).

You see, the newspaper (and the active market) has shown you what you need to be looking for (or not), and this is certainly a good indication that there are few Buyers (whether for themselves or as real estate investments).

Maybe it is because of some local condition (like the closing of a major employer or something), or it could be more national (like the interest rates rising quickly, etc.) - i.e., it could be something you can control, but most likely it isn't. However, it doesn't mean you can't make real estate investing money in such a market! You can certainly make money in a real estate investing market where there are few 'For Rent' and lots of 'For Sale' properties (even if you have poor credit and no money...) This is a perfect time to be doing Lease Purchase/Options! Yes, it is a great time to simply make CA$H in your real estate investing business. And, if (and WHEN) the real estate investment market changes again, you will already be on top of it because you'll keep this simple method in mind - just watching the total number of ads in the paper - something anyone can do (but so few will...) and you'll know what the next real estate investing 'trend' will be - maybe back to 'flipping', or maybe something else... Just one of the major reasons that you need more than one 'tool' in your real estate investing toolbox..... Here's to your successful (and LAZY) real estate investments...

Steve Majors - The Lazy Investor Profit from Real Estate Investment Articles, Real Estate Investing Information & News from One of The Most Creative Investors On The Planet ~FREE MEMBERSHIP & Real Estate Training Course~ http://SteveMajors.com

Living and investing in New Zealand: An easy process

Living and investing in New Zealand is becoming more and more popular as people are discovering the small but friendly country. They love the varied scenery, mild climate, and many activities. Living in New Zealand appeals to those who like a quiet life and love the outdoors.

New Zealand Facts

Many people from other areas are trying out living in New Zealand or investing there. US citizens are immigrating thanks to a new interest in IT. Farming is still thriving too. New Zealand is an especially beautiful country. The weather changes drastically during the course of a day. Overall climate is mild winters (wet) and warm summers (dry). It's in the Southern Hemisphere. The native people are the Maori. The British made it a colony in the 1800s. People from Europe, Pacific Islands, and Asia also live there. English is spoken as the native language. It?s hard to find anyone who doesn't enjoy living in New Zealand. It?s one of the friendliest countries in the world.

Vast Differences

Even though New Zealand is small, you'll have it all. Sandy beaches, blue green waters, lush tropical forests, towering alpine peaks, and bright green pastures. If you love to play outdoors, living in New Zealand is for you. You'll spend your time hiking, biking, and playing water sports. In just one day you can fly over a glacier, white-water raft, visit a volcano or crater lake, go bird or whale watching and dine in a first class restaurant. Where it's high you'll need a jacket and where it's low you'll wear a swimsuit. The range of scenery is unique in the world.

People

New Zealand is noted for the friendly people. Known as 'Kiwis', everyone is laid-back and welcoming. If you like to stay indoors and wear a tie, New Zealand isn't for you. It's so safe you can hitch a ride without being afraid. Or you can pick up a hitcher and be safe. View some pictures of the stunning scenery. If you move there, you're sure to feel welcome.

Geography

New Zealand is long and thin in shape. If you try living in New Zealand your main choices will be the North Island area or the South Island area. The north features volcanoes and miles of green pastures. It's the most populated area. In the south you'll find the sharp, rocky Alps. Landscape varies from surf and sand to blue glacier lakes with many national parks.

Interested? Learn more about Immigration and Investing in New Zealand at http://nzpassport.com/artman/publish/cat_index_61.shtml

Ofer Shoshani has been working for the last 5 years as a professional journalist, writing about finance, economy, travel and lifestyle. During these years he lived and wrote from Spain, Colombia, Venezuela, Peru, Ecuador, USA, Israel, India & Thailand. More of his work can be found at http://www.nzpassport.com , http://www.bespanish.com and http://www.betotal.com

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