[dropcap]W[/dropcap]hether you are just getting started, have a plan but are too nervous to start, or have started but are struggling to get your investing to the next level… you absolutely need to know the 7 myths of closing your first deal, understand them and recognize them for exactly what they are… myths.
At the end of the day, getting your mind right… is the most important aspect of making your financial freedom a reality…
A myth is simply a widely held but false belief or idea.
Real estate investing myths start in all kinds of places from stage gurus to the REIA meeting speaker circuit to the actual REIA club members themselves. Investors with a bad experience or two, or little and sometimes no knowledge whatsoever blab and embellish stories that make them feel important.
Some of these stories are harmless, some are not.
There are myths that plague the world of real estate investing. Some of these do no real harm, but others rob people of genuine opportunity.
Worse, they can cause poor decisions and turn legitimate opportunities into catastrophes. They can insert more risk into investing than what’s actually there.
For me, the worst myths are the ones that cause investors to misuse their best resource. It is not money. It is not relationships.
The best resource an investor has is their time, and it is the one thing we cannot gain more of. Once time has passed, it is gone, and time is the one thing that when used in conjunction with other resources and decisions, can build true wealth for real estate investors.
So with that, it’s time to pull back the curtain and debunk some popular and potentially harmful real estate investment myths that could be costing you money, an opportunity and/or your overall financial freedom.
- Myth #1: Real estate is risky, and you should avoid risk at all costs.
This one makes me laugh every time. The truth is we all know the correlation between risk and reward.
Risk, like conflict, is not inherently a bad thing. We may associate it with negative emotions, uneasiness, anxiety and worry, but it’s NOT bad.
WITHOUT risk, there’s no reward. In today’s quickly moving and changing economy, avoiding risk is likely the biggest risk of all that you could take. We have to be willing to weigh the pros and cons of any endeavor and be willing to accept and embrace risk if we are to find great success, let alone any success at all.
With that said, real estate is one of the safest investments available, if not thee safest. The stock market is beyond your control. No control equates to the ultimate risk. Savings, CD’s and money market funds won’t give you enough return on your money to make any money.
You have to be willing to take a calculated risk to make money.
The more you educate yourself, the less risky real estate becomes.
In fact, the most common risks of real estate that stop people dead in their tracks can virtually be eliminated with the very basics of education. Just as knowing the rules of the road… for example… obeying the speed limit, stopping at red lights, driving on the right side of the road and maintaining proper tire pressure in your tires allows you to get from point A to point B safely on a daily basis, and because you know the rules of the road… the tragic news of a fatal traffic accident doesn’t deter you from driving to point B again the next day, does it?
The rules of investing in real estate are equally simple to learn, and almost never fatal should you make a mistake. LOL! And just as you don’t need to know everything about how a car works before you can drive it, nor do you need to know EVERYTHING about real estate before making money.
You probably know more than enough to get started investing in real estate right now. It takes years to learn a lot.
You never learn everything. Success is an ongoing learning process. The fastest strategy to success is to move at the speed of instruction.
Learn a little, do a little. Learn a little more, do a little more.
And so on…
- Myth #2: You need money to get started.
The truth is… FIRST! You find the deal, and the money finds you.
All that’s needed to get started is a great real estate deal with profit potential that is based on solid financials. Believe it or not, having no money when I was starting out became my competitive advantage.
Because I didn’t have the money to throw at every problem that I encountered, I became an expert problem solver through all means except money.
I realized that it’s NEVER a money problem, just an idea problem. This experience is my advantage today because I do have money now, but I still use very little of it to conduct my business.
Why should I use it if I don’t have to?
The very best investors do not invest their own money.
And if they have no intent of using their own money, why would that ever be YOUR intent knowing what you know now? Find the deal first and finding the money will never be a problem.
- Myth #3: I don’t have the time.
“Between my job, my spouse, my kids and all of their activities, I’ve got very little time.” I hear this all the time. The truth is, if most people, and I mean MOST people, unplugged their T.V. they’d have more time than they’d need.
The average person spends three hours watching T.V., and even more on the weekends. You don’t need more than your typical T.V. time to be VERY successful investing in real estate. Try this for an amusing weekend…
Put the youngsters in the car and drive through neighborhoods watching for ugly houses. Give your kids a dollar for each ugly house they spot. Make it a game!
Let them know that for every ugly house you buy means the more money you have for that next trip to Disneyland. Imagine where you might be right now if your parents had shared this experience with you? I’m fairly certain I wouldn’t have had to “do over” in life if I had had this experience when I was a kid.
- Myth #4: Real estate education programs are all the same. They don’t work.
You’ve certainly heard before these famous words of Henry Ford, “Whether you think you can or you think you can’t, you’re right.”
If you pay attention to the naysayers, the pessimists and critics you’ll convince yourself it doesn’t work. Be careful from where you get your advice; especially, your financial advice.
The people that snub their nose at or scoff money-making ideas don’t have any money.
Make it a point to take financial guidance from someone that makes MORE money than you do DOING what you want to do.
Try telling THAT person “It doesn’t work,” and see what kind of response you get.
- Myth #5: There’s too much competition. Everyone’s doing it. There aren’t any good deals left.
This myth comes from a scarcity mindset. A poverty mindset. There’s a saying… James Baldwin said it actually, “Those who say it can’t be done are passed up daily by the people doing it.”
The truth is that there’s an abundance of deals. More deals can be found than people looking for them.
Most real estate deals come as a result of a life occurrence, and life happens everyday. There are hundreds of deals available, both on market and off, in your area for every investor searching for them.
Additionally, it won’t take long for you to recognize that most people who declare to be investors are “all talk” and merely waiting for deals to drop from the sky.
Don’t do that. Don’t wait for deals, make deals happen. They are everywhere.
- Myth #6: This won’t work in my market.
This is a very common myth that has stopped… or thwarted… millions of people’s pursuit of financial freedom. It’s like the gold miner who stopped mining just 3 feet from gold when had he stuck it out just one more day… all the riches he had been working for would’ve been his.
The truth is gold mining works wherever there is gold.
Real estate investing works wherever there is real estate. The good news is you don’t have to guess where the real estate is like you do when mining for gold. Real estate is ABOVE ground. You can see it.
Investors are making money in EVERY market, EVERY day of the week. If there is real estate in your market and people live in that real estate, investing in real estate WILL work in your market.
- Myth #7: This works for other people, but not people like me… and I don’t want to fail.
The fear of failure is as common among human beings, all human beings, as having two ears, two eyes, a mouth and a nose.
Everyone is afraid of failing at first, to some degree. In fact, I’d be concerned about you if you weren’t afraid a little.
Embrace your fear, as a healthy amount of it can lead to a successful career as a scrupulous and disciplined investor.
There are a lot of clichés I could share with you that would address fear, such as… Face your fears and your fears disappear, or the only thing to fear is fear itself, or one day you’ll look back and laugh at what you feared.
And it’s unfortunate that these clichés have been used and abused to the point where they’ve lost their power, but the truth is that the fact that they have become cliché doesn’t make them any less true.
For example, from time to time over the years on my podcast I will interview an Epic Pro Academy student just after they closed their first deal and without exception… they look back and wonder what they were afraid of, and they then regret waiting so long to get started.
The only cure for regret is to act now… at the end of the day we will all regret far more the shots we didn’t take than the ones we did.
Now you should have a FULL understanding of how and WHY now is the time to get moving toward closing your first or NEXT deal and why and HOW these 7 myths are actually stopping you from achieving the financial freedom that you are yearning for.
Don’t allow yourself to fall for these myths again, don’t let fear cloud your path to financial freedom.
You deserve to be financially free and the only thing that is stopping you from achieving your goal is the nonsense stories you keep telling yourself.
It’s time to tell yourself the truth. Your success is within reach. Now grab it!
If you’re ready to finally pull the trigger, grab a FREE copy of my book, Epic Freedom: The Two Easiest and Fastest Strategies to a Paycheck in Real Estate.
**This isn’t an eBook download or one of those free book offers that ask you to pay $7 for shipping. No, this is an actual book mailed and delivered to your front door for FREE!“