There’s no denying that investing in real estate is a great way to generate a steady flow of income. Not to mention, becoming a landlord can be a relatively passive way to make money.
Of course, just like most things in life, there are pros and cons to investing in a rental property.
That said, we bet it’ll be a while before you find someone that believes that investing in real estate is a bad idea. In fact, 38% of Americans surveyed in April of 2019 claim that real estate is the best long-term investment.
Now, we’re not saying that investing in real estate is easy per se.
Because it’s not.
But if buying a rental property and generating income from it for years to come is a good idea, why aren’t more people doing it?
Today we’re going to take a look at the most common reasons why people aren’t investing in real estate these days, so that those on the fence about it will realize what they’re missing out on.
Top Reasons People Aren’t Investing in Real Estate
Fear of the unknown is a natural feeling. However, not everyone can overcome their fears and lead the successful lives they want for themselves.
Many people stunt their ability to grow wealth because they are afraid to get started. And while investing in real estate can be kind of scary at first, that fear shouldn’t hold you back from achieving your dreams.
And yet it does for many people.
2. Lack of Experience and/or Knowledge
We’ve all seen it on TV a million times. To earn a profit with real estate, all you have to do is buy a property that needs some TLC, renovate it a bit, and flip it for a profit – right?
A lot of people lack the knowledge needed to get into real estate investing. In fact, some people that think they want to invest in a property still don’t because they just don’t know how to get started. Or, they get started because it looks easy on TV, realize how much work it is to be an investor and give up.
The learning curve for real estate investors can be tough for anyone that doesn’t have the right resources on hand. This is ever truer for those that don’t have a mentor they can consult with either. After all, when it comes to investing in a rental property, there’s a lot to learn.
That’s not to say it can’t be done though. You can take it upon yourself to learn the industry, study what others before you have done, and practice. But for people that don’t know how to learn about real estate investing, sometimes the best option is to just move on and do something else.
3. Financial Trouble
It’s true there are plenty of creative ways to fund your first piece of real estate if you don’t have a lot of money. But the truth is, not having enough money for even a down payment is sometimes enough to stop people in their tracks, even if they really want to get into real estate investing.
Other financial troubles that may prevent people from moving forward on an investment property include:
- Poor credit scores
- Too much debt
- Lack of capital
- Not enough emergency savings
Of course, once you establish yourself and start building your portfolio, things tend to get easier. Not to mention, the experience under your belt helps you prevent costly mistakes. But getting there can be daunting for those that can’t get their finances under control, so much so that they give up entirely instead of just putting their plans on hold for a little bit.
4. Not Enough Time
When you decide to become a real estate investor, you might not realize how much time you’ll need to put into your property, at least at first.
For instance, the amount of time you spend just trying to find your first investment property can take what seems like forever. And hunting for a rental property isn’t generating you any money. When it comes down to it, many people prefer to spend their free time doing other things, rather than driving around looking for a rental property to buy.
In addition, there’s loads of work to be done after you buy an investment property too:
- Repairs and renovations
- Vacancy advertising and tenant placement
- Lease agreement drafting
- Property inspections
- Maintenance and emergency repairs
- Rent collection
- And so much more
Although the option to hire a property management company to help is there, many first-time landlords feel as though they don’t want to spend any more money than they have to. This leads to horror stories about being overwhelmed and can steer those that haven’t invested yet the other way.
Are You Ready to Overcome the Obstacles?
Admitting that you’re scared, don’t know where to start, or don’t have the money to invest in real estate right this minute is okay. But what’s better is knowing you have some options for overcoming your fears, lack of knowledge, and financial obstacles.
With online courses like My First Deal Done in 60 Days training program, you have the perfect opportunity to break free of the thoughts that are holding you back from reaching your goals.
In this course, we’ll teach you how to:
- Develop a growth mindset and start thinking in terms of success, not failure
- Invest in real estate no matter your experience
- Inspect properties you’re interested in buying so you get the best deal possible
- Structure a winning offer to every seller you come across and increase your chances of closing
- Close the deal and even exit if you need to at the last minute
There’s a lot that goes into investing in a rental property, especially if it’s your first one. And while you can wing it and learn along the way, wouldn’t it be better to take it from the experts and have a plan in place before you get started?
Don’t let common excuses for not investing in real estate get in your way. If you set your mind to it, anything is possible. All you have to do is take a proactive approach to your life and conquer any excuse that tries to get in the way of your financial freedom.