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Article source: http://www.themillionaireblog.com/. Used with authors permission.
Oh, thats an easy one. I can answer that in one word. FEAR.
Real estate investment is a great way to change just about everything in your life, but its one of those things where doing it for the FIRST time is the toughest. In fact, the second is exponentially easier!
Its fear folks, plain and simple! And why doesnt make much sense to me. Consider that:
- Everyone knows that the surest path from low income to millionaire is through real estate. This appears to be a well-documented truism. Ive seen a similar statement in some of the most prestigious financial resources on the planet.
- I rarely hear of someone losing it all from real estate. I might be living in la-la land, but for the most part I only hear of folks prospering from real estate investing. Sure, occasionally I hear of deal going bad or growing complicated, but not to the point of ruining folks.
- There are a lot of properties available. Folks are still divorcing, dying, or just not paying the bills and getting foreclosed on. Much of the foreclosure activity is not SEEN by the public, but most of it is available to the public.
- There are a lot of properties available at below market prices. Thats been my experience anyway. Of course, I have folks right here in my area that tell me they cant find properties. I just smile and nod my head.
- Rental demand is strong and rents never go down!
So with all this common knowledge and raw opportunity out there, why isnt everyone investing in real estate?
Heres my theory.
* Real estate transactions are more involved than going to Wal-mart for a pair of undies, so that scares people. You have to learn a little bit. Mind you, this isnt a lot of learning, but it is apparently enough to keep some on the sidelines.
* The numbers are big. Ive seen folks nearly CEASE UP mentally talking about large amounts of money. Merely talking about a $100,000 mortgage causes some people break out in a sweat.
* Horror stories. Everyones heard about some scam, sink hole, meteor or something else on the fringes of believability that has happened somewhere at sometime. I mean, there is SOME risk involved.
* Fear of taking action! Its hard to do something youve never done, and harder to do something youve never done before in a subject matter on which you arent an expert! People fear something, which makes facing that fear hard. What Im referring to is what I call, ITS EASIER NOT TO.
So what does one do to face fear and make a change in their life,
Ah, thats just as easy as the last question. I can also answer that in one wordKNOWLEDGE.
Once properly armed with the knowledge they need, most folks can overcome their fears to the point of taking action.
So if you are contemplating taking your financial future into your own hands by investing in real estate, FOCUS on one thing for the next 3-6 months. Buy books or courses, got to real estate investing club meetings, visit websites and get on discussion groups. Let those things be your action steps for awhile. I suspect youll be ready to dive into the market with the knowledge youll gain.
I have a motto.
Knowledge Always Precedes the Money. Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled 12 Things Real Estate Investment Gurus Wont Tell You at Rehab-Real-Estate.com.
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