Let's destroy some real estate investing myths that keep regular people from building wealth. Spoiler alert: Your Instagram feed is lying to you, and that guru's course isn't telling the whole truth.
Myth #1: "You Need Perfect Credit"
Reality check: We've funded borrowers with credit scores in the 500s. Yes, really. While banks worship at the altar of FICO scores, asset-based lenders care more about the property than your credit card history from 2015.
That medical bill collection? We don't care.
Your divorce destroyed your credit? We understand.
The property has value? Now we're talking.
Myth #2: "Cash Buyers Always Win"
Here's what cash buyers don't advertise: Many "cash offers" are actually backed by hard money loans. They're just pre-approved and ready to move fast. With the right lender, your financed offer can compete with cash. The seller cares about certainty and speed, not where your money comes from.
Myth #3: "You Need 20-30% Down"
Traditional banks? Sure.
But creative financing exists. We've funded deals with 10% down when the numbers work. Some fix-and-flip loans go up to 93% of total costs. The key is finding the right lender for your strategy, not accepting the first "no" as gospel.
Myth #4: "Only Rich People Invest in Real Estate"
The rich got rich BY investing in real estate, not the other way around. Most successful investors started with one small property, leveraged the equity, and scaled. Your first deal doesn't need to be a 100-unit complex. A distressed duplex in Bakersfield can start your empire.
Myth #5: "The Market Is Too Expensive Now"
People said this in 2010, 2015, 2020, and they're saying it now. Meanwhile, those who bought anyway are laughing to the bank. Every market has opportunities. California's inland regions have properties at 60-70% of peak values. Expensive is relative to opportunity, not historical prices.
Myth #6: "You Need Years of Experience"
Everyone starts somewhere. We fund first-time investors regularly. The key? Be honest about your experience, partner with knowledgeable people, and start with simpler projects. Your first deal teaches you more than 100 books or courses.
Myth #7: "Foreclosures Are Too Complicated"
With AB 2424, you now have 90 extra days to figure things out.
That's three months to get financing, find buyers, or negotiate solutions. Complicated? Maybe. Impossible? Not even close. Plus, professionals like us handle the complex parts.
Myth #8: "Hard Money Is Only for Desperate People"
Hard money is for smart people who understand opportunity cost.
Would you rather wait three months for bank approval at 6% or close in a week at 10% and make $50,000 on a flip? The cost of money is relative to the profit it generates.
Myth #9: "You Need to Know Everything Before Starting"
Analysis paralysis kills more real estate dreams than bad deals do.
You'll never know everything. The market changes faster than you can learn. Start with one deal, learn, adjust, repeat. Perfect knowledge doesn't exist; profitable action does.
Myth #10: "Successful Investors Don't Share Secrets"
The biggest "secret" in real estate: There are no secrets.
It's about finding deals, securing financing, adding value, and executing. The information is everywhere. The difference? Successful investors act while others analyze.
The Truth Nobody Tells You
Real estate investing isn't about perfection – it's about solving problems. Every successful investor has:
- Made mistakes (expensive ones)
- Faced rejection (repeatedly)
- Felt overwhelmed (constantly at first)
- Questioned their sanity (usually at 2 AM)
- Succeeded anyway (because they didn't quit)
Your imperfect credit, limited funds, and lack of experience aren't disqualifiers – they're your starting point. Every expert was once a disaster. Every empire started with one imperfect deal.
At Capital Direct Funding, we've seen it all.
Perfect borrowers boring us. It's the scrappy, creative, determined ones who build empires. We bet on potential, not perfection.