Top 10 Fallacies Prohibiting People from Succeeding in Real Estate Investment
The following are the top 10 reasons people use for not succeeding in real estate investing. If this list offends anyone then it probably means it is accurate!!!
Reason #1: No Cash
The Fallacy: "You need money to make money"
Bottom Line: Find a good real estate deal, and the money will find you. Ask any seasoned investor and realtor and they will tell you that lack of funds is never an issue; lack of good deals is! If you can negotiate a good price on a house, you will find plenty of partners willing to put up the money. Obviously cash deals will have better leverage than financed deals.
Reason #2: No Time
The Fallacy: "I've got a job, a spouse, kids and little time on my hands"
Bottom Line: Throw out your television and you'll have all the time you need. People spend an average 3 hours per day in front of the TV. People even spend even more time on weekends, especially when there are sports being broadcast. Want to do something fun this Saturday? Load the kids in the mini van and go driving around looking for ugly houses, or save on that gas bill and use the Dream Home Finder link here, or from our Home Page. Make a game out of it giving a dollar to each of your kids that spots an ugly house. Tell them that each ugly house you buy means enough money to take them all to Disney World.
Reason #3: Everyone says this stuff doesn't work
The Fallacy: "That late-night TV Stuff Doesn't Work"
Bottom Line: You can convince yourself that anything won't work. Henry Ford once said, "Whether you think you can or think you can't, you are right."
Every real estate transaction has some risk; some risks are realistic, while others are not. If you listen to the critics, you'll convince yourself it doesn't work. Most people that criticize money-making ideas need to do so for their own ego. After all, if it were true, what's their excuse for not being successful? Make it a point of not taking financial advice from anyone who makes less than you do.
Reason #4: Too much competition
The Fallacy: "There's too many people buying houses to find a deal"
Bottom Line: There are more than enough Tulsa real estate deals to make everyone financially healthy. At any given time there are hundreds of properties for sale in your market for each investor looking for them. In addition, a majority of people who say they are investors are just sitting on the sidelines waiting for someone to fall in their lap. Don't be one of them - go out and make deals happen.
Reason #5: It doesn't work in my market
The Fallacy: "It doesn't work in my market."
Bottom Line: It works in EVERY market. True, it may work differently in some markets than in others, but there are investors making money in every city, every day of the week, including Tulsa. You have to learn your Tulsa Market - the rents, the trends, the local customs, the bankers, the title companies, etc. Then, learn the techniques and adapt them for your market. If you are in a hot market, you can sell properties faster and ride inflation. If you are in a down market, you can find lots of bargains. And, in any market, there are people with financial problems that translate into bargain properties, right here in Tulsa.
Reason #6: The recession is coming
The Fallacy: "Certainly, the September 11th tragedy, the huge number of layoffs and the decline of the stock market will kills the economy, so anything I buy will go down in value."
Bottom Line: Sell cheaper or with attractive terms. When Dell wants to move computers, they drop the price. When GM wants to move cars they offer no interest financing. If the prices are falling, buy way below market and sell just below market. If rental vacancies go up, offer free satellite TV (heck, it's $25/month). When everyone else is "dooming and glooming", it only clears out the competition and you will get a better real estate deal
Reason #7: Realtors won't cooperate with me
The Fallacy: "Realtors Don't Want to Cooperate With Investors"
Bottom Line: The right Tulsa realtor can be your best friend and #1 source of business. We have supplied many investors with properties. Once we know what you exactly want we´ll let you know when there's a deal. Repeat business is a realtors staple diet of work.
Reason #8: I have bad credit
The Fallacy: "I need good credit to buy houses"
Bottom Line: Good credit certainly helps, but you don't need it to make money in real estate. Lease/options, owner-financing, flipping properties and other creative techniques will allow you to buy real estate without credit, but good credit will be a definite plus. You can always use a partner who has good credit. You can also borrow "hard money" without having good credit. In the meantime, you can work on fixing your bad credit so you can use it as an asset in the future.
Reason #9: I might lose money
The Fallacy: Real Estate is Very Risky
Bottom Line: Real estate is one of the safest investments you can buy. The stock market is beyond your control. Savings, CDs and money market funds won't give your enough return to make money. You have to be willing to take a calculated risk to make money. The more you educate yourself, the less risky Tulsa real estate becomes. However, don't think you need to know EVERYTHING before taking action. Speak with your
Tulsa realtorReason #10: I don't know what to do
The Fallacy: I Need to Learn More Before I Start
Bottom Line: You probably know more than enough to get started in real estate. It takes years to learn a lot. You never learn everything. Success is an ongoing learning process. Read some books, take some seminars and go take MASSIVE action. Then, learn some more and take a lot more action. If you are really impatient, enlist the help of others.
Henry Ford said, "Why should I clutter my mind with general information when I have men around me who can supply any knowledge I need?" Henry Ford was a smart man because he realized that he didn't need to know it all if he could consult with others that did. Ronald Reagan's cabinet was said to be the team of the brightest people in politics.
Tulsa Voted #2 City For Real Estate