Top 5 Real Estate Investing Myths You Need to Stop Believing

Real estate investing is one of the most powerful ways to build long-term wealth, but too many aspiring investors never get started because they believe myths that simply aren’t true. These misconceptions can hold you back for years, costing you opportunities and delaying your financial freedom.

Matt Faircloth, a seasoned investor with over 20 years of experience and co-founder of DeRosa Group, has heard every excuse and myth in the book. In this article, we’ll debunk the five most common myths that keep people from taking the leap into real estate investing — and replace them with the truth you need to hear.

Myth 1: You Need a Lot of Money to Start

Many beginners believe they need hundreds of thousands of dollars in cash to get started. The truth is, there are multiple ways to invest with limited capital — including partnerships, creative financing, and using other people’s money.Matt often shares stories of investors who began with very little but leveraged relationships and resourcefulness to land their first deal. The key is to focus on education, networking, and finding opportunities that match your resources.

Myth 2: Real Estate Investing Is Too Risky

While any investment carries risk, real estate can actually be one of the most stable long-term investments if approached correctly. Risk is greatly reduced when you buy in the right location, run the numbers, and conduct thorough due diligence.Matt emphasizes that risk comes from ignorance, not the asset class itself. The more you learn and the better your team, the safer your investments become.

Myth 3: You Need to Be an Expert Before You Start

Many people wait for the “perfect time” to start — but that time never comes. You don’t need to know everything to take your first step.Matt suggests starting with smaller, manageable deals while learning along the way. Real-world experience, combined with mentorship, accelerates your growth far faster than endless research.

Myth 4: The Market Is Too Competitive Right Now

Yes, the market can be competitive, but that doesn’t mean there aren’t deals to be found. Smart investors adapt by looking in emerging markets, networking with local professionals, and uncovering off-market opportunities.Matt has found profitable deals in both hot and slow markets — the difference is in strategy, persistence, and creativity.

Myth 5: You Have to Manage Properties Yourself

Many first-time investors assume they’ll be stuck fixing toilets and taking late-night calls from tenants. In reality, professional property managers can handle day-to-day operations, allowing you to focus on growing your portfolio.Matt notes that outsourcing management is one of the smartest moves you can make, especially if you value your time or plan to invest outside your local area.

The Truth About Real Estate Investing

These myths persist because they tap into fear — fear of losing money, making mistakes, or stepping outside your comfort zone. But the reality is that real estate investing is more accessible, flexible, and scalable than most people think.If you’re ready to take the leap, start with education, build a trusted network, and focus on action over perfection.

Want to make smarter investment decisions?

Download DeRosa Group’s FREE Due Diligence Checklist and learn how to evaluate deals like a pro: https://www.derosagroup.com/dd-checklist