By Alex Nghiem
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
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
which often requires 5% or more as a down payment. Assuming
$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
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,
people ended up creating wealth through home ownership than
through stock ownership.
2. Myth #2: Real estate investing requires a lot of money.
Fact: Once you learn how to buy undervalued properties, you
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
control the property and this technique doesn't require that
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,
can make even more money working with "pretty houses", houses
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
$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
repairs or house payments through the use of options. One of
clients recently made $9,800 in 4 days on his last option
6. Myth #5: You can only make money in hot markets.
Fact: You may believe that you can only make money by
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
7. Myth #6: You have to take huge risks when investing in real
Fact: You actualy have more control when buying real estate
than when you buy stocks and bonds. You can determine the
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
you from real estate investing and therefore costing you tens
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
About The Author: 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