There’s a lot of information about how the best way to invest is – where to buy, how to buy, what to buy – what money to use and from where. It’s a lot to take in all at once. Should you flip? Should you be a rehabber? Should you buy and hold? Should try a mix? Not everything works for every one person. It seems that around every corner, there is someone holding a sign saying “this is the way.”
What is the way? Should you pay attention to those signs? Should you follow the current myths about real estate like gospel? We say: no. At Hipster, we believe in the power of making smart decisions, buying solid properties and ignoring the clatter out there that surrounds the world of real estate investing.
Here is Hipster’s top three list of Real Estate Investing Myths – and why we think it’s sound advice to ignore them (again, using your own mind, gut and calculations)….
1. Location, Location, Location
Unless you’re a commercial real estate investor looking for NNN deals, location really isn’t everything. At Hipster, we absolutely believe there are certain markets investors should zero in on. Every week, we introduce you to a great find from one of the markets we stand strongly behind. That being said, getting caught up in the fundamentals of what a neighborhood has or doesn’t have to offer shouldn’t necessarily deter you from making what could be a beneficial decision for your bank account. Neighborhoods change – we all know that. Sometimes, they decline. Sometimes, they gentrify. Sometimes, the school districts become amazing. Busy roads quiet. Train stations are built. Whole Foods open up. You just never know. If location is deterring you from making a “buy” think twice – and remember this mantra: ‘things change’. That things and neighborhoods change is one of the few solids upon which we can stand in life. Take that to heart. Not every tenant or buyer is going to be worried about school districts, roads, or location in general.
2. Buy Bad Homes In Good Neighborhoods
This feeds into the above idea – but takes it a step further. The principle behind buying a real beater in a good neighborhood is that through your manpower, you can fix up this house of horrors and make it a winner that brings home real profits. As we all know, however, neighborhoods change. Period. Don’t put all of your eggs in one basket. It’s a folly many investors have fallen pray to – and it’s not one you want to get entangled with. Unless you’re a pro-contracted and can turn the house in no time flat, it’s best to avoid buying beater houses chasing after huge profits.
Yes, the shop local movement totally rocks and we advocate it in so many ways! Visit your local farmers’ markets. Buy artisan crafts when you can. Be a regular at a local coffee or tea shop. Embrace your neighborhood and your home city all the way: the benefits of doing so will pay off tenfold. When it comes to investing in real estate, however, it’s not always the best route to go. Sometimes, the best deals are the ones you find out of state or – even – out of the country. Sometimes, you need to expand your horizons and invest across the country to get the most bang out of your investment bucks.
Real estate investment is a true art. Don’t get overwhelmed by the amount of information out there. Use your head, use your gut, use reliable resources whom you trust. Find deals. Don’t hedge your bets. Real estate investing is not gambling – in fact, investing in real estate is one of the best paths to true wealth out there right now.