In my many years of talking to people about real estate, I've heard the several objections. Most of them sound like this:
"I don't want to be called in the middle of the night about a leaky faucet!", "I hate doing home repairs!", "I don't have time to take care of it!"
If this is keeping you from buying one of the most profitable investments there is, then I will tell you a secret. You don't have to do any of that. When I do the analysis on a property, I assume that someone else is going to manage it, answer the phone calls, and do the repairs. The advantages of doing this are:
1- You don't buy a property that doesnt make sense.
2- You don't have to feel guilty about paying a property manager.
3 -If you want to do the work yourself, you can look at it as making extra money, but not something you have to do.
Other objections I hear are:
"I'm very risk-adverse",
I ask many of the people that say this if they have a 401k, and if so, do they buy stocks? Usually they do. So they are willing to gamble on a piece of paper that may or may not go up in value, but not be willing to buy a piece of property that they can see and touch, and that pays them an income every month. If you are risk adverse, then buy real estate for your long term investments.
"People have lost a lot of money on real estate investments"
Yes, they have. The reason is that they did not buy smart. They bought on the hope and prayer that the property would go up in value when it was already overpriced. I can teach you how to avoid that mistake.
" I don't like the idea of borrowing so much money"
This is hard for some people. I understand this. There a difference between good debt and bad debt. A bad debt is something like a credit card debt or a car payment. It owns you. I am against having any bad debt unless absolutely necessary. If you have any, get rid of it as fast as you can.
A good debt is something that pays you more money each month than you pay to it. You own it. Buying smart will mean your debt is good debt. Again I can teach you how to do this.