POST WRITTEN BY
Forbes Real Estate Council
Successful executives in the real estate industry from Forbes Real Estate Council share firsthand tips & insights
As flexible schedules and independent work become more appealing (and accepted), more and more people — including a surge of millennials — are joining the real estate business. But while there can be many perks, there are also a lot of industry misconceptions.
Below, we asked 10 members of the Forbes Real Estate Council to weigh in on one myth about the real estate industry that newbies in the profession often think is true, and what the actual truth is.
Forbes Real Estate Council members weigh in on top real estate myths.
1. Property gurus know best.
The biggest myth or scam in real estate is the supposed property “gurus" that newbies see on TV and entrust them by buying their fake how-to courses and DVDs, and spend thousands of dollars attending their seminars. The big question here is: Why would someone sell you a course on “how to do it” when they can just go and do it themselves and make more money doing it than teaching it? - Engelo Rumora, List'n Sell Realty
2. You need a lot of money to start.
The biggest myth about real estate investing is that you need a lot of money to make money. With the proper education as a real estate investor, there are numerous ways to get started with very little money. We routinely lock up houses for as much as $1,000 and as little as $10. As long as you know what to do after you have the home locked up, then it's easy to start making money! - Bob McIntosh, Arcane Properties
3. There’s a timeline for success.
That it takes year to get started. The reality is, it is a relationship-oriented service business. So the sooner you establish multiple lines of communication to your multiple sources of relationships and networks, the sooner your business will be off the ground and running. And what's better is that in today's highly digital environment, it does not have to be expensive -- just relevant and valuable. - Anthony D'Alicandro, Dwell Real Estate
4. It’s fast and easy.
Real estate newbies think working in this industry is quick money -- and lots of it -- and that it’s easy. We help people with the largest investment they may ever make and the place where they hang their hearts. These are two incredibly important things. It needs to be taken seriously and responsibly. And that takes time and dedication to each client. And it takes awhile to build the business. - Michelle Ames, HorsePower Realty
5. There are no opportunities in small markets.
You have to be in a hot or up-and-coming market to make money investing in real estate. It may feel safer to invest in a market that already supplies to a large investor pool, but there are investors in every city across the U.S. successfully investing in real estate, whether you are holding, flipping, building or lending. The key is learning that market well enough to identify its opportunities. - Hillary Hobson, Highest Cash Offer
6. It’s a 9-to-5 job.
More often than not, I see new brokers and realtors treating this business like a 9-to-5 job. Real estate is entrepreneurship -- you are running the business, not letting the business run you. Real estate is a lifestyle, it is a position you live, dream and breathe, 24/7, 365. - Alex Chieng, A & L Real Estate
7. It’s a simple business.
One myth about the real estate industry that newbies think is true is that real estate is simple. At its core, real estate is not complicated, but that doesn’t mean it’s simple. To be successful requires hard work and determination. Moreover, today’s real estate industry is increasingly competitive and complex, with more players than ever utilizing mathematics, data and technology to give them an edge. - Avi Spielman, Joon Properties
8. Raising capital is the biggest initial challenge.
Most people that want to start investing in real estate think that coming up with the money is their biggest problem. The reality is that the hardest thing to do is find and buy properties at the right value. Money in real estate is made by buying right. If you buy right, raising capital or finding a lender becomes infinitely more doable. - Matt Rodak, Fund That Flip, Inc.
9. The market is steady and predictable.
The old saying, “Buy land, they’re not making it anymore” is the wrong approach. Supply and demand can change fast when things like recessions happen and, all of a sudden, a lot more real estate comes on the market at 50% off. If you’re wanting the Midas touch for acquiring real estate, trust no one and do your own homework. It’s your money and no one else’s. - Chris Ryan, Luxury Lifestyles Group / RE/MAX Crest Realty Westside
10. Getting a real estate license equals fast cash.
Newbies often think they will be rolling in the money as soon as they get their license. This myth is perpetuated by stories about the 20-something who made a million his first year. The truth is that story skips over how hard he or she pounded the pavement and the connections he or she had. Connections take time to build and hard work can take months to pay off. Leads don't grow on trees. - Betsy Repaske, DwellHop Real Estate