If you are new to property investing it can be difficult to separate myths about the business from the truth. And many myths abound.
So, to help you get things a little straighter, weve listed here five of the most common myths about property investing and debunked them. Some of them you have no doubt already encountered:
1. You need plenty of money to go into property
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Not necessarily. You can use other peoples money to help you fund a buy to let or a refurb property to flip. Its called Joint Venture (JV) and you split the profit, according to an initial agreement. You could also embark on a strategy called Rent to Rent, where with the landlords permission, you rent out the property on his/her behalf. You can also access large sums of money to fund property projects by joining up to a property franchise like ourselves.
2. Its not a good time to invest in property
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Wait for the perfect moment to invest in property and you will never get around it. The property market goes up and down, but its a lot less volatile than stocks and shares. If you educate yourself on locations offering good yields and what your ideal tenants are looking for, then youre often halfway there to making a profit regardless of what the market is doing is at that particular time.
3. Property investing is a great way to make money, fast
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Yes, it can be. But thats only if you know what you are doing. And you really do have to put a lot of work into it, by having a lot of flip or refurb properties in the pipeline. The big money is in developments and thats definitely not a get rich fast solution. You do get rich, but it can take up to a year or more for development projects to come to completion.
4. Really, property investing is just too much hassle
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Property investing can be a lot of work especially if you are sourcing properties. But the rewards are often worth it. And on that note, investors who do their research and carry out the groundwork themselves, do tend to be the more successful. In other words, like many things in life, you only really get out what you put in.
5. Putting money into property is taking a big risk
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As opposed to buying stocks and shares? Wed say this is a bigger risk. Of course, you can alleviate risk altogether and invest your money in a savings account but you wont make much at the end of the day. It is possible to cut back risk in property developing by educating yourself as much as possible on your chosen strategy and watching how more experienced property investors work.
With a Sourced Franchise, you have support from a number of experienced property investors to guide you in your investments. Youll also have training, access to funding and no shortage of potential JV partners.
In fact, were delighted to report that some of our current Sourced franchisees joined us with no property investing experience whatsoever and managed to grow pipelines of more than 100,000 in less than three months. To find out more download our Sourced Network Prospectus today.
Author
Chris Kirkwood
