(35)
McElroy's Myth 2, however, is less cautious. It is a myth, he says, that one must start small. (4) Start big in the real estate game of investment property, the author says to maximize one's incoming cash flow, and actually minimize the investment risk. The larger the property, the more money a real estate investor is likely to have coming in, in terms of rent, and the more money he or she will have defray the beginning costs. Yes, it might at first turn your stomach to make a large outlay -- but that relates to Myth 3, which seems to be the opposite of Myth 2, even though both are interrelated. Myth #3 is that "You Can 'Flip' Your Way to Success or Get Rich Quick with No Money Down." All investment involves some risk and initial outlay, and unfortunately, one must invest to eventually see a return on one's initial investment. (7) if a deal seems to be too good to be true, it probably is -- probably is swampland rather than a gold mine. (35) number of the myths, such as Myth #4: "Some People Just Have the Midas Touch" or Myth #5: "You Need a Great Deal of Confidence" to succeed in real estate, strike the reader as fairly generalized personal empowerment myths that could apply to a variety of industries, particularly, Myth #6: You Want to Do it but Don't Really Have the Time, (this really comes down to choices and priorities, wisely counsels McElroy) (9-10) but other real estate myths 'busted' by the author are quite industry-specific, like the idea that "Myth #7: You Have to Know Somebody to Get Going in This Business," or Myth #8: "You Have...
"Demand is defined as the number of people looking to rent." (60) Then, one must think like a renter as well as a seller. "Great locations have drive-by visibility. The more cars that pass by your property and see your 'For Rent' sign, the better your chances of success. Drive-bys are one of the most effective forms of advertising." (70) Are the properties near local places of occupation and transportation? What are the rents in the area of comparable properties, as well as the cost of living? (98)
Keep these questions in one's mind, and then calculate if one has enough to invest in a property large enough to ensure a return, and enough capital to ensure one can secure a large enough area to make one's investment worthwhile. These sound bits of advice, dispersed with real life success stores make the ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Advisors Miss a worthwhile and personally motivating read for any investors in real estate.
Works Cited
McElroy, Ken, with Robert T. Kiyosaki. The ABCs of Real Estate Investing: The Secrets…
