Jason Wollbrink - I wonder if we'll eventually see the prices come down and the inventories go up in some of these big cities, especially if there is a sustained exodus to rural areas.
What are some widely accepted "facts" in the real estate industry that are actually myths?
Probably the most consistent one I've seen when talking with sellers is that their property's assessed value is, in fact, it's market value.
If I had a dime for every time I've had to explain this (especially to land owners), I would have a lot a dimes.
On a related note to yours, Seth Williams, the number of people who expect that an investor (who's telling them he resells properties for a profit) should pay them what they paid for their property back in 2005, even though both the market and tax assessor's values are both a fraction of that amount today, is pretty high. I don't necessarily blame these people, in that you haven't taken the loss until you've sold the property, and maybe things could appreciate back to that level someday, but if you're having a hard time paying the taxes now, the odds of you holding the property until that future point objectively seems pretty slim.
jawollbrink Jason Wollbrink last edited by jawollbrink
That you need a ton of paperwork to buy land or houses.
And that the buyer does not even need to sign the deed.
Sunrise_Buyers Nathan Korownyk last edited by
A myth is that its impossible to find off market deals at below market prices.
Another myth is that homeowners would sell their primary residence or income property for below market value or without the need to qualify for a loan.
While there may be few doubters here, most non-REI folks believe this.
jawollbrink Jason Wollbrink last edited by
Another is that there are no homeowners/landowners willing to sell at below market value.
Or a common one I hear, rental homes don't work out because all renters trash your place.
There are the kind of myths that keep this market profitable for us!
I hope this isn't too controversial, but for me it's that wholesaling real estate is a beginner strategy.
Sure assignments can save you a lot of upfront costs, but wholesaling has a lot of moving parts that can really mess people up if they don't do it properly.
I like land is less risky lol.
Another type of myths are
You Should be Rich Enough to Invest in Real Estate. This is the biggest real estate myth which often dissuades people to make an investment in this sector.
And the most common myth are all real estate agents make boatloads of money.
That you need 20% down in order to get in to real estate. So many people are shocked to find out that they don't need that much down and that there are programs that will let you get a mortgage with around 500 down.
seanjean Sean Jean last edited by
Landlords are rich, greedy and don't care about their tenants.
Seth Williams I love to find counties that their assessments are way below market and people will just ask for that or even a little less!