Becoming a real estate investor requires you to step out of your comfort levels and put yourself into situations where you will have to educate yourself really fast. Better yet, you need to find people that are truly willing to help you achieve your goals.

I remember a few years ago, I had just sold a house and made enough to buy another one, but I wanted to go big. I wanted to buy a 10 unit apartment complex. I had no experience with this type of property. I met the selling agent, and right from the beginning he gave me attitude. In fact the more I asked the more he became a jerk, until all of a sudden he said “What you are? A f****** rookie.” I was shocked, not at the f bomb, but at the fact that I was there with money, ready and willing to buy, and he treated me like I was just there to waste his time. Maybe I did ask too many questions, but maybe if he had shown a little more caring and respect, he would be my agent, and “go to man” for apartment buildings in Oakland.

I had no experience with that type of property, but did have experience with investing numbers. If the numbers work, I’ll go for it, if they don’t I’ll pass. As I think about this situation now, I truly think that the selling agent knew the numbers didn’t add up, was probably told by other investors that the numbers didn’t work, and he just had enough of people wasting his time.

I tell this story because it is falls under myth #8 below… You can do it, but it will require you to want to be financially wealthy.

Here are 8 common myths about real estate investing

1. Myth – Investing is too complicated.
   Truth – Investing is only as complicated as you let it be.
   • Stick to what you know – Don’t try to rehab properties if you can’t change a lightbulb
   • Invest in markets you understand – Don’t jump at the first commercial property triple net lease option if you have no experience with more simple investing like rental property management
   • Look to investing in locations that you are familiar with – Don’t go investing in Buffalo NY, where you can buy a property with your credit card, if you have no idea what the neighborhoods are like.
2. Myth – The best investment require knowledge that most people don’t have
   Truth – Your best investments will always be in the areas you can or already understand
3. Myth – Investing is risky
   Truth – Investing by definition, is not Risky
   • You are investing your money with sound, solid principles and models. By doing that you are taking risk out of the equation. Investment return is usually based on the amount of risk involved. The higher the risk, the higher the returns. Real estate investing has one of the largest ratios of return vs. risk out of any investment.
4. Myth – Successful investors are able to time the market
   Truth – Nobody can time the market. In successful investing, the timing finds you.
   • Timing is often misunderstood when it comes to real estate investing. You definitely need to have good timing when the right deal comes along. When a hot deal hits the market, if you don’t act fast enough, there will be 5 more offers on the property when the rest of the public finds out about it. On the other hand, you cannot sit back and say you are going to time the market, becuase when it turns you usually don’t see it until about 2 months later. Set good criteria and when that home comes along you jump on it. Remember, with good criteria you will have built in equity to handle any downturn in the market.
5. Myth – All good investments are taken
   Truth – Every market has it’s share of good investments. All good investments will be taken. The question is, who will take them?
   • Economic factors like job growth, interest rates, and population shifts will effect investment opportunities
   • Personal factors like divorce, death, family growth, etc… will also effect investment opportunities
6. Myth – I don’t need to be an investor, my job will take care of my financial wealth.
   Truth – Your job is not your financial future, you need to be an investor. Only about 1% of people will become financially wealth from their job. Mostly actors, athletes, and executives. Read my comparison of real estate investing to 401k and see for yourself.
7. Myth – I don’t need or want to be financially wealthy – I’m happy with what I have.
   Truth – You need to open your eyes – You do need to be financially wealthy. You never know when an unforeseen circumstance will arise and require a lot of money. Also, with financial wealth, imagine all the help you can provide to friends and family.
8. Myth – It doesn’t matter if I want or need it, I just can’t do it
   Truth – You can’t predict what you can or cannot do until you try!
   • This thinking reminds of the book Rich Dad, Poor Dad. Robert Kiyosaki grew up with two dads, one was a probable thinker meaning if the plans to make more money didn’t fit into his pre-conceived notions he wasn’t going to try to do it. Robert also had another father that was a possibility thinker. When he needed something above their financial level, they thought of ways to acheive that goal. What kind of thinker are you?