yth 1: It Is Too Late To fair market values to lower, but
Invest. I’m Too Old To that isn’t likely. The economy
Wait For An Income. has been very stable. Rent rates
have been predictably low in most
Fact: It is never too late. The markets. As markets correct
focus should be on positive cash themselves there will be some
flow and not on the mortgage pay areas that rent inflation will
off date. It is easy to own occur and can only mean more
several rental properties that money in your pocket. The key is
will pay you enough to not only finding the right location for
pay the mortgage, but also give investing.
you a nice income.
Myth 4: Interest Rates Must Rise
Myth 2: I Can’t Afford To Buy And Keep Rising.
Property Now. I’ll Wait Until My
House Is Paid For, Then I’ll Look Fact: The Federal Reserve Board
Into It. has been doing an excellent job
in keeping inflation at so low an
Fact: Your house has equity in it incline it is almost flat.
already. You can use that equity Hurricanes Katrina and Rita, and
as a down payment on an the recent spike in oil prices
investment property and realize a have caused a slight increase in
positive cash flow from the rent. rates, but the tide turned in the
oil prices and inflation seems to
Myth 3: The Real Estate Bubble be checked. Without going into
Will Burst And I’ll Be Left complicated economics, the
Holding An Empty Balloon. Federal Reserve has been keeping
inflation clipped by tiny hikes
Fact: It is possible that in interest rates. The job market
interest rates will rise causing and labor force has maintained
balance, therefore the slight
increases are actually good for Myth 6: A Fixer-Upper Is A Cheap
the economy and for investment Way To Riches.
security. Consumers are utilizing
equity loans for their spending Fact: A fixer-upper can put money
and huge spikes in interest rates in your pocket but there are so
would basically collapse the many pitfalls that you need to be
growing economy. very careful. Buying well below
market value for a house that
Myth 5: I Don’t Have Any Extra needs a new roof will only be
Cash So A $0 Down Payment Loan Is profitable if you just put the
The Best Route To Start My Real new roof on. Thinking that you
Estate Investment Career. need to not only fix the roof but
put in another $20,000 of
Fact: If you don’t use any of refurbishing to make it perfect
your own money, your mortgage is not good strategy. The more
will be higher. $0 down means money you pour into a
100% of the loan equals 100% of fixer-upper, the less profit
the value. That kind of ratio you’ll realize when you sell it.
means a negative cash flow. While Buying a fixer-upper, making it
negative cash flow is not a huge perfect all for under market
problem for someone who has value, then renting it is a
available cash, negative cash better way to make money on that
flow for someone who lives from type of project.
paycheck to paycheck is financial
suicide.
About the Author:
Investment Property Coach Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, "The Investor's Guide To Renting" at: www.GreatInvestmentProperty.com
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