Real estate investors are everywhere but what does it truly mean and what does everyone say? The 3 biggest myths about real estate are you need good credit to be a real estate investor, you have to be rich or already have a pile of money, you have to quit your job and work full time as an investor to make any real money. What does it truly mean to be a real estate investor. It simply means they made money in some way with real estate and just about everyone can do it. Click here for my free guide to 25 ways to make money in real estate.
Myth #1 you need good credit–This is 100% false. If you are trying to buy a house, renovate it, then sell it to make money, you only need 600 credit score because there are lenders out there who make more money because they lend to folks with bad credit and they are focused on the asset itself not the lender. The lender goes into a lienholder position so if you fail to sell it or pay off your loan, they foreclose and get the property. These are called hard money lenders and their rates can be anywhere from 6%-30% APR for a 1 year loan. It is true that if you have good credit you could go to a bank and get 2-4% right now, but it would not be a short term loan and it would be based on you the guarantor not the asset. If you don’t meet their criteria even with good credit they won’t loan to you.
Myth #2 You have to be rich or already have money to buy real estate. While it is true you’ll need access to capital you don’t have to be rich or have the money yourself. You could partner with someone who does. You could invest with your retirement account instead of letting the computers lose it all for you in the stock market. Or you could access equity you have in your own primary residence through a HELOC or cash out refi.
Myth #3 You have to quit your job and work full time as a real estate investor to make any real money. Many folks who love their job never have to stop doing what they love to become real estate investors. They simply reach out to us at American Made Home Solutions and take advantage of the many different opportunities we have at all different levels–accredited or not, lots of capital to bare minimums.
They are more than happy to let us do all the work while they get to reap the rewards. You can click here to tell us where you’re at and what your goals are. Then we’ll schedule a time to connect and help you accomplish those goals.
