Hi, it’s Dan Witherington from American Wealth Builders.
When I was a kid, there was a forest near my house and all the kids whispered that if you went in there, you’d never come out because a guy with a claw for a hand would kidnap children.
Pretty horrible, actually, but it caught our imagination and we believed it.
I think every kid has heard and shared urban myths like these… whether it’s alligators in the sewers or Slender Man or an escaped convict near the place where teens go to make out. LOL
It’s nonsense, of course, and every adult knows better than to believe that stuff.
But that doesn’t mean that we adults are immune to lies…
When you grow up, the lies change. You end up hearing things that seem more real, believable, and practical… but they are still urban myths.
Our team hears urban myths on a daily basis as we interact with people who are thinking about investing in real estate.
Here are a few that we frequently hear:
“Real estate investing is too much work”
The folks who think this are often people who have tried rehabbing or landlording, or who know someone who has tried these things. And it’s true, THOSE types of investing are too much work and, in my opinion, not worth the effort.
Turnkey investing, though, is 100% passive. It’s hands off. The property is already fixed up, rented, and managed. This gives you the advantage of real estate investment income without the hassle and cost of the effort.
“There are no good deals out there”
All real estate is local – right down to the neighborhood level. So, what makes a good deal in one neighborhood would not be a good deal just down the street. There are many factors at play here that determine how “good” a deal is. From the investor’s income to the location of the property, from the rental demand to growth prospects of the city that the property is located in.
At American Wealth Builders, we’ve built a number of systems to constantly monitor many markets for the most strategic opportunities, plus we’ve been investing in some specific markets (especially in Ohio) for many years – so we can read that market really well and feel good about it for the long-term. And to help investors, we’ve set up a way for investors in many different states (and even outside of the U.S) to invest in our strategically chosen markets, so they can benefit if they live somewhere else. This gives you the ability to take advantage of disparities in the markets to invest at a comparative discount to your market in a compelling market that we believe strongly in.
“It’s a bad time to invest. I’ll wait.”
Timing the market is something that stock investors do in an effort to buy low and sell high, so it’s only natural that real estate investors with a lot of stock investing experience will think along these lines.
With turnkey real estate investing, though, it’s different. The cash flow from one month to the next is predictable and consistent, while the underlying value of the house doesn’t really matter as much. There’s no need to time the market BECAUSE turnkey investing is about cash flow. You get solid, consistent high-yield returns month after month.
“Real estate investing is too risky”
This is perhaps the most shocking urban myth of them all. I don’t understand why people think this. Is there risk in real estate investing? Sure, there’s risk in everything. But to avoid real estate investing because of risks, and instead put your money into speculative stocks, simply doesn’t make sense.
With turnkey investments, you own and control the actual hard asset, and you earn high yield cash flow consistently and predictably even though the investment is hands off. None of this is true with stock market investments, which are often thought to be “less risky” than real estate investing.
Which of these urban myths have you fallen for? Hopefully none of them – but if you have heard, or even, believe these, then I hope my list can provide you with a sensible way to counter the incorrect arguments and give you the right perspective.
If you have more questions about real estate investing, and about turnkey investments specifically, get in touch with the team here at American Wealth Builders and we’ll help to answer your questions.
Senior Wealth Strategist
American Wealth Builders
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