Are you a go-getter or a slacker? That’s the reality of a professional real estate career. Many people want to earn the money that is made though owning a rental property, but not every person is cut out to do the legwork. There are a million excuses why someone that is able to purchase an investment property refuses to do so. Many times people surround themselves with a lot of “thinkers” and very few people that are “doers” in life. The negative attitude can have what’s called a trickle effect and stop you in your tracks from investing in real estate. Regardless of how long you have been investing, there are some excuses that are more popular than others.
1. “The Market Fluctuates Too Much”
It is true that markets go up and down, but isn’t that what they are supposed to do. No investor will enter a career in real estate in a prime period of time. There will always be some type of market fluctuation happening. Many shifts in the markets are years in the making and have nothing to do with current economic conditions. There are hard and soft real estate numbers every year that you invest. It’s just part of the game. Knowing how to spot a deal and when to act on it usually separates real estate success from failure.
2. “Real Estate Training Costs Too Much”
Unless you have been living in a cave for 20 years, there is now something used everyday known as the Internet. It is a series of networked computers that allow easy distribution of information. You don’t need a college degree to buy real estate, but you do have to learn to how to make smart decisions. There is a lot of information and ground to cover, but there are low cost and free ways to learn real estate. What one person charges to learn at a seminar could be given away for a cheaper price or free of charge online. Look around.
3. “I Don’t Have Time to Manage a Property”
Going at it alone can be time consuming. The thing to remember is that you don’t have to be alone. There are many ways that you can cut down your workload or cut it out completely when you own an investment property. Hiring property management companies for a nominal fee takes most of the stress and worry out of running a day-to-day property. Finding the time to invest is much easier than most people make it out to be in real estate.
4. “Real Estate Investments are Too Risky”
Every investment has an element of risk. The only investments that are guaranteed are FDIC investments at banks. The stock market, gambling, selling automobiles and buying real estate all have certain risks. Part of being a smart investor is know how to leverage risks versus fear to get big returns. Spending money is always a little scary if you are not as well educated as you would like. Putting your money into turnkey properties is one of the less risky types of investments you can make in real estate.
5. “Taxes are Too High
The tax argument has been around for generations and will probably never die. The more you make the more that is taken from you in taxes unless you know how to take tax deductions. There are many ways that you can reduce your taxable income with an investment property. Going blindly into an investment without knowing what type of taxation you are up against can cause issues. Playing it smart, getting advice and estimating your annual returns can all but eliminte tax liability.