You know that I love investing in real estate and that I am known as “Jack Bosch the Real estate guy”. Well, I don’t have a problem with that. I have completed over 3,000 real estate deals and I receive cash flow each month from real estate properties that I own. Real estate has been a great investment vehicle for me, and I 100% recommend that you consider investing as least some of your money in property.
But – as is the case with almost any subject – there are plenty of naysayers out there. In particular, the segment of the population that was burned b unwise investments just before the recession began.
And as if that weren’t bad enough, there are also plenty of “gurus” out there teaching very complicated and risky methods for making money with real estate – and most folks are turned off to the whole idea when they see those risky methods.
So in this special blog post, I would like to take a few minutes to address what I see as myths about investing in real estate.
Myth # 1: Successful real estate investing depends on appreciation. This idea is what got a lot of people into trouble just before the recession hit. They bought properties at market value hoping that the price would go up enough for them to resell at market value and make a profit. As far as I am concerned that’s not investing – that’s gambling. Instead, the way to make money is to purchase with BUILT IN PROFIT. In other words, do like I do and purchase properties at 5% to 20% of their market value and then sell them for a small markup and a decent profit.
Myth # 2: The only money is in fixing and flipping. While some people live and are good at fixing and flipping houses, I don’t recommend this for most folks. There are unexpected expenses and lots of time and skill required to successfully rehab a house. Instead, I recommend that you find cheap houses and wholesale them to rehabbers – less work and more profit for you.
Myth # 3: If you have rental properties then you will get phone calls at midnight. This can be true – if you are managing your property yourself. But if you find a good property manager (who will keep 7% to 10% of each month’s rent) then all you will have to worry about is receiving notification when a tenant moves in or out and occasional repairs and maintenance to the house. That’s it. So while the phone might ring at midnight, you don’t have to be the one to pick it up. I have many rental properties that I haven’t personally visited in years because I have property managers do that for me.
Myth # 4: You need time to make real estate deals. The average time to find a real estate deal under my systems is two or three hours. That includes researching an area, getting a mailing list, sending out the letters, fielding phone calls and emails, making offers, and preparing contracts. Can you find two or three hours in your schedule if it means a $10,000 paycheck?
Myth # 5: You need good credit to invest in real estate. As I mentioned above, I have completed over 3,000 real estate transactions (buying and selling) and I have never once used my credit. Because the investments are generally quite small (or because I use an option) I have never had to borrow to purchase a piece of real estate.
Myth # 6: You need money to invest in real estate. You can get started flipping a piece of vacant land with just a few hundred dollars (or sometimes even less)! While you might be living on a shoestring budget, don’t you think that you can find a way during the next few weeks and months to set aside a few hundred dollars for your future? Even a small property can multiply your money several times over and give you funds for more and more deals.
Myth # 7: You need experience to invest in real estate. For this last myth, instead of telling you all about how I got started with my limited English, zero experience, and high debt, I would like to let one of my successful students named Jeraldine let you know how it has gone for her despite a complete lack of experience: old.jackbosch.com/jeraldine-fitzerald
Investing in real estate is a great way to propel yourself forward. Don’t listen to the naysayers, and don’t use the risky and complicated methods taught by some loons out there. Do it the Jack way – the simple way – and start seeing a difference today!