I remember the day I saw my first grade teacher in the deli line of our supermarket. My 6 year-old brain could not believe that Mrs. Martian was out of the school. Naturally, I thought all of the teachers lived and slept at the school. Didn’t you?
There are misconceptions about every industry and real estate is no different. The most common multifamily real estate investing myths can stop potential investors from even getting started. So, let’s debunk them now.
1. You need a lot of experience to become a real estate investor
Some people believe that you need to know everything before you start. If you are hesitant to get into the mix then there are plenty of boot camps and seminars to attend. The idea is to educate yourself until the confidence kicks in. The myth is that there is no room for failure. This is a holding pattern that could last years. Boot camps are full of people who have never walked a property.
The truth is you will never have real confidence until you get out there and start taking action. Let’s face it, you weren’t a pro at riding a bike on your first try either. Everyone is shaky at first. To ride a bike you had to get a feel for the balance and that’s true for any new skill.
2. You have to do it yourself
Here we have the Lone Ranger mentality and I recognize this tendency in myself. Yes, guilty. I thought I had to do everything by myself for myself. I also believed that I would save money by doing everything myself. The cashiers at Home Depot knew me by name and I saved money but in the end it was a lesson learned. What I saved in money I lost in the quality of the work, time and energy.
Of course, you should economize but take a hard look at the larger picture. The cheapest way is not always the wisest choice for long term gains. Don’t stay small potatoes. If you are interested in real wealth then you need a team. Professionals can get the job done right the first time while you are scouting your next deal.
3. You need to be wealthy to invest in multifamily property
This must be the most widely believed multifamily real estate investing myth. Yes, you will need money for inspections, closing costs and legal fees, count on it, but you don’t need a liquid million to get into the game. Financing exists and if you have a good deal, then the investors, conventional and private, will appear. When you become known and develop a reputation, then getting financing will be easier than finding the right deal.
You don’t need to know everything, do it all yourself or have tons of cash to succeed in real estate investment. Don’t let the misconceptions stop you. Take action; you can do this! Find out for yourself that most multifamily real estate investing myths are unfounded.
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