What Real Estate Gurus Won’t Tell You

Real estate gurus are great sources of information you can apply in today’s world. Most of them are well accomplished in life. However, at the end of the day, these gurus still sell products. They are salesmen who want to earn money as well and they will talk you to buy their materials, whether it’s a CD, a book, or a seminar. So, be vigilant and don’t be duped. Here are some things that these gurus won’t tell you, at least at first.

“Zero money down” is sometimes a myth. Real estate gurus probably do not intend to lie when they tell you that you can actually invest in real estate with “zero money down.” But the truth is, these three words sometimes are not true. You will still need to make an earnest money deposit when you wholesale houses – the investing method where this zero financial capital supposedly happens. They say it’s zero because it’s almost nothing compared to the actual value of the property. Money deposits for wholesale contracts can cost around $10. Now, if you “bought” a $100,000 house for $10, it’s as if you bought it with nothing. Nevertheless, wholesaling houses remains a very lucrative career today. Best thing of all, you do not need $100,000 to buy a house of that value.

Short sales can be stressing. Gurus often describe short sales as merely making an offer to lenders. The lender accepts your offer and the owners of the property dodge that “foreclosed” mark on their credit. What these mentors won’t tell you is that short sales can be stressing at times. You are dealing with banks, which will almost always make numerous counter offers if they won’t reject your offer right on. You are also dealing with home owners who are facing two huge possibilities: losing their house and ruining their credit. Still, this is a good way to invest in real estate because there are many home owners you can help by buying their property.

Rehabbing can be very risky. Real estate gurus won’t tell you outright that rehabbing houses can be dangerous. They often say that it is simply buying a vacant and dilapidated home, making repairs on it, and then selling it. The plan sounds simple but if you fall into a “money pit,” then you could be in huge trouble. So, be sure to evaluate the house very well before buying it, Have it examined by a professional if necessary. This risk should not stop you from venturing into this method because truth be told, rehabs are a great way to earn huge checks.

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