Wednesday, January 21, 2009

If You Want to Make Money in Real Estate, You Must Already Have Money

This is the first myth of real estate: If you want to make money in real estate, you must already have money. For a lazy person, this statement is probably true. But for people who want to do their research and invest a lot of time in finding the right property, making money in real estate does not always require you to have a lot of money upfront. I know several people who have started small and made it big. In fact, that's how most of them start. I have a friend who started buying properties several years ago in a college neighborhood, and now he is rolling in money because the rent has been driven up by more and more houses being up for rent in the area. The demand for rental properties is skyrocketing. He started by purchasing one house and getting that thing nailed down. And now he's doing well. It does take some luck, but it can happen for you, too.