In every business and every industry there are people who just seem to drop with success. They seem to know all the right people, make all the right decisions, be in all the right places at exactly the right time. They seem destined for success whether they even try or not. Real estate investing is no different. In every city or town, there seem to be real estate tycoons that struck it rich through real estate.

About fifteen years ago, I decided I was going to be one of the people I just described. I was going to make my own success, be my own boss, and achieve financial freedom. And I chose property management as my route. Call it instinct, call it impatient, call it burning desire. I wasn't about to wait for a lucky break or a magic charm. I set out to make my dream happen, and I did it though action.

In the early days of my first property management and real estate deals, there was a lot of trail and error and I made my share of mistakes. But for every one mistake I made I learned ten lessons and got smarter every day.

The Seven Myths

Myth #1: You have to be wealthy to invest in real estate.

People think they have to have a large lump sum of money to invest in real estate. They think it is like saving for their first home or that it's something they can only do once they have made their fortune elsewhere. Both of these thought couldn't be further from the truth. You don't need hundreds of thousands of dollars in the bank to invest in real estate and you certainly don't need millions. All you need is a good real estate deal that makes sense- one that has profit potential and is based on solid financials.

"All things are difficult before they are easy"

Myth #2: you can "flip" your way to success or get rich quick with no money down

Many people think that flipping property, in other words buying it and quickly turning around and selling it for more than you paid for it, is the way to grow wealth. The people who believe strongly in this have been lucky to make money in this way. But in my opinion, this is like day trading in the stock market. It isn't easy, and it is very risky.

No money down is another way of saying that the property is 100 percent financed. That mean a much larger part, if not all, of your cash flow is going towards the monthly payments. in no-money down deals, you'll be paying higher interest rates because there is greater risk to the lender, have higher loan costs, and have virtually have no money to improve the property or even repair it should something break. With this model you are banking on the property appreciating to make money rather than improving the operations of the property and making money throw the cash flow system. Let's hope the property market is high-flying and that you time it perfectly because you'll be banking on external factors being just right. Appreciation, as you'll see in great detail later, is only in your control when you've improved cash flow. In this scenario you have none! I believe that buying and holding income-generating assets like rental properties is how you build wealth.

Myth #3: you have to know somebody to get going in this business

While knowing a few people such as a real estate agent, an attorney, or a banker may save you time, you don't need to know anyone even remotely connected with investment real estate to get started. Just get started and you will be surprised how many people you'll get to know and how much they will teach you. You'll have friends in the business before you know it.

Myth #4: you have to know a lot about real estate

This myth holds people back every single day. They feel they have to be already experts in the field in order to be successful, weather it is real estate or stock investing or dry cleaning! First of all.

"Success is a journey, it's not a destination"

And all successful people start at the same place. One day they wake up, they throw their legs over the side of the bed, they yawn- and they begin. Only by beginning and continuing day after day do we ever become experts. We gain expertise through experience.

Myth #5: you want to do it but don't have the time

This really comes down to choices and priorities. There is always time to do things we need to do like, go to work everyday, mow the lawn, feed the dog. Often there isn't time to do the things we really want to do. Learn to speak a second language, build a bookcase, or volunteer in the community.

"There is a difference between need and want"

Well often do what we need and put off what we want. Unfortunately are wants are what truly enrich our lives.

The investment real estate business is something you should want to do. Its work. To be truly successful, especially in the beginning, you will be involved in the day to day activities of finding and evaluating properties, negotiating deals, overseeing contract repair work, possibly even managing the property once it's yours. I can honestly say, I find the business rewarding, fun, and because of that, it is profitable.

Myth #6: you can't be afraid of failing

Show me an entrepreneur who says he or she isn't afraid of failing and I'll show you a liar! A bold statement, absolutely, but a true one. Everybody is afraid of falling. The difference is that some of us let the fear of failure hold us back. Sometimes fear stops us from being altogether and that's unfortunate. If that's the case make the decision now to just begin putting one foot in front of the other, making one phone call at a time, visiting one property, and then another. It's not hard, but it can seam so if we focus on the end result instead of the tiny and very doable steps in between.

Myth #7: you have to know the trick of the trade

There are no tricks of the trade in the purest sense of the term. But there are secrets to success in life. And as long as you know those, you'll be successful at anything. First, you have to set goals. Goals will be the foundation of the roadmap for your successes. They will also tell you when you have arrived, so you can pat your self on the back. Everyone needs that reinforcement.