There are few paths that are so clear and direct towards personal wealth, financial freedom, and independence as real estate investing. Real estate has historically shown a 20% rate of return year to year, almost twice as high as the S&P500’s historical rate of return. But there are far fewer people invested in real estate than invested in the stock market. A lot of this gap is not because of an inability, but because of a fear of real estate investing. Here are some ways for you to get over common fears of real estate investing and make the best decision of your life.
How to Get Over Common Fears of Real Estate Investing: Keep an Emergency Fund
The first thing that you can do to get over the fear of losing your investment in real estate investing is to keep an emergency fund. An emergency fund is key as an investor in any area, so that you won’t have to take money out of your investments in the event of losing your job, or unexpected medical expenses or something of that nature. An emergency fund that covers between six months and one year of living expenses is a good idea for everyone.
Tenants Who Don’t Pay
Another common fear for people looking to go into real estate investing is not knowing how to deal with tenants who don’t pay. The process of getting tenants evicted from your property can be a long and tedious process, and unfortunately there is a risk of losing some money in that situation. But there are some things that you can do to attract better tenants. Maintaining your properties is key to getting good tenants. If you operate a nice property, you are going to get more responsible, kind tenants. You have to get good tenants to make sure that your payments are going to be on time.
How to Get Over Common Fears of Real Estate Investing: Not Having Good Enough Credit
Another common fear that stops people from getting into real estate investing is a fear that their credit isn’t good enough to buy a house. And yes, while it is true that you need a good credit score to get a good loan on a house, making mortgage payments on a house can be a great way to build your credit, so even if your credit isn’t perfect, buying a house can be a great method to get an even better credit score down the line.
Many people have fears related to getting into real estate investing. But there is no fear that is worth missing out on the lifestyle of your dreams. If you are struggling with fears, then check out the list to find ways to overcome them and make the best decision ever.
Check out this article on how to increase your chances of getting a mortgage!
Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.