Knowledge is power, or so they say and with the internet at your fingertips it is quite easy to find online forms dedicated to real estate investing. You can find so many different opinions from various investors on a variety of topics such as being a landlord, fix and flips, to trusts (REITs), to much much more. It can be easy to find these groups and forums, but is it reliable and good information? You have to keep one thing in mind:
The Internet is a wealth of information AND misinformation.
If you are online and doing some research keep in mind there is good advice out there and there is also bad advice. But how can you tell the difference, sometimes new and even seasoned investors have a hard time telling.
One thing to keep in mind that what you read online in most cases does not equal legal or professional financial advice. There are a lot of made up attorneys and CPAs online that never went to school! LOL. The bottom line here is, don’t make rash decisions based on what you read from some people – that can be irresponsible and can really hurt you financially.
There are many good reasons to join these online forums. One of the reasons it gives you an outlet to discuss things with. Your friends and family might be tired of you talking about it. With forums, you can chat with others that know what you are going through and can offer ideas and suggestions – or just applaud your efforts!
Another good thing about forums is they offer fresh ideas. You can see what others have done that you might not have thought of. Remember though, not everyone does legal things so always check before you do what others have done!
Forums can also give you new opportunities. Opportunities such as friendships, partnerships, or even connections. If you are thinking about exploring new areas, forums can help you find information on the area or people you can rely on.
While there are many good things about forums, keep in mind possible drawbacks. The biggest drawback is how people tend to exaggerate. When people talk about their success they can talk it up a lot and when people fail the don’t like to admit how bad things are. Keep in mind (especially if you are a new investor), that your results can be extremely different and that you more than likely are not getting the entire store.
Other things to keep in mind with forms:
The Market. Markets are extremely different at different parts of the country. So what one investor does down south, might not work for you here in the Reading, Berks County area.
Experience Levels. Newer investors can get inspired by the success of more seasoned ones. Keep in mind that your success will be different than others – no matter what your degree of investing is.
Risk Tolerance. Investing at all levels has it risks – that is why investing is not for everyone. However, an experienced investor with a full portfolio can take a bigger hit on a property and still keep going whereas a new investor could lose everything. Even experienced investors can take a hit they might not recover from. So once again, don’t base your decisions on what you read in the forums.
Forums are good and bad but if you are having a hard time deciding what is best for you, contact us. We know the Berks County area better than anyone else and can help you decide where to invest and what move to make next. We can even help protect your portfolio with our many property management options so it frees you up to work on the next project.
Leave a Reply