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There are plenty of myths surrounding the real estate industry as a whole. What remains more elusive, though, is the part of the industry that centers around investments. With increased attention and interest in investing, it has become more important than ever to set the record straight and dispel common misunderstandings that surround investing in real estate.

Only for the Wealthy

While it can make investing less risky and more profitable, one does not need to have a fortune to invest in real estate. A majority of investors, including those new to investing, will pay a deposit and finance the remainder of the cost. Less than half of investors pay cash, proving that rich or not, investing is possible for everyone.

Certifications/Licenses are Necessary

A lot of people believe that to invest in real estate you must already be a professional within the industry, and therefore hold a license of certification. While industry experience can certainly be helpful to maximize gains, it is not required to make an investment. It’s important to remember that when there’s a lack of industry experience investors should make sure they have done an adequate amount of research to make sure their investment is sound.

It’s a Fast Way to Earn a Buck

Ask any real estate professional and they will most likely tell you otherwise. Accruing money in any area of real estate takes time and effort, as it is a research-focused and relationship heavy industry. You must take the time to scour for investment opportunities, research whether or not they will generate a healthy return, and then find funding (if you don’t have the ability to pay out-of-pocket). Even if you make a few great investments and see a fantastic return early in your career, finding a way to sustain that success for long-term profits takes time and effort.

There are dozens of different ways to get involved with real estate investing, and therefore there are dozens more myths. Whatever route you choose, whether through private equity, real estate investment trusts, flipping houses, etc., these three myths are generally applicable. Investing in real estate is becoming increasingly popular as investors seek to put their money towards more tangible assets. Like any financial decision, understanding the truth from the fiction sets you up for a more rewarding and successful experience.