Some Common Myths Chasing Investors Away From Every Naples Realtor
Now that the importance and lucrativeness of commercial real estate is obvious, here are the 5 myths scaring investors away from the business.
Myth 1 – Real estate investment requires too much money
This is the biggest myth of them all. A lot of banks are very willing to finance your project. In fact, real estate is one of the few businesses that get loan approval very easily. It is all about the profit therein. In fact, once the profit is attractive enough, private money lenders will chase you. Every Naples realtor will laugh at this myth. It is nothing but a common myth
Myth 2 – Real estate investment requires too much time
This is an obvious falsehood. How does it require time after the investment? Do you have to watch over the property all day? No Naples realtor will accept that investment in real estate requires too much time because it is a big misinformation and misrepresentation.
Myth 3 – Real estate investment is too risky
Of course every business involves a little bit of risk. Commercial real estate investment is no exception. Generally, some properties are riskier than others. The risk level of a property is determined by several important factors. Your returns will be steady. However, the profit is not so attractive but you will make some profit.
Office properties are fraught with higher risk and they are more volatile. The general rule here is that the more volatile a property is, the higher the risk and profit. In the same way properties with lower risks offer lower profits. This is why you need the professional guide of an experienced Naples realtor
Myth 4 – Only very few deals are good
Here, it is important to define what you mean buy good. The amount of profit that is okay for an investor may not be attractive to others. It all depends on how much they are making in their other investments. Secondly, it also depends on your investment strategies. Some investors believe in long term profit while others prefer to recoup their money completely in a couple of years. There are unlimited great deals in real estate.
Myth 5 – If a property is for sale, something is wrong with it
This is one of the oldest myths but it used to be true several decades ago before the emergence of real estate as a business. Now people sell their properties for several reasons. Some people sell their property because it is in line with their reason for buying it in the first place. You can buy a property and allow its value to rise and then you sell it off.
It is not uncommon for a particular real estate investor to sell of certain property to free up funds to purchase a more profitable property. Come to think of it, it is not a problem even if something is wrong with a property as long as it is sold at a giveaway price. However, one cannot say this is a full myth because it is sometimes true for a property to be put up for sale for certain hidden reason.