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Usually the biggest question for anybody interested in real estate investing is “how do I get started in investing in real estate?”
It’s a big question. Most of us have little or no experience in real estate or in real estate investing. We do not know what’s involved, even if we’ve painted a room or even a building. We may own a home or not at this point, but we want to get started. Most of us after all are aware that real estate investing can be very profitable.
When I was a newbie in real estate investing, I realized I had a lot to learn. I started by reading as many books about investing in real estate as I could, and that’s after having been a real estate broker for several years. That’s why my suggestion for you was to read is much as you can about the topic. You can do that via online forms, searching Google, and reading the books that I cover in this post.
But why read books?
Books provide generally provide the vantage point of their authors, and if they are well-researched and well documented and well written, all the better.
Though it is possible just to search Google and to read and chat in online forums, there’s a lot of conflicting information on the Internet, and forums can sometimes be confusing. A solid foundation before jumping into a forum or digging up information on the net or at least doing so simultaneously with reading the books is a wise choice.
It pays to learn from those who came before and from those successfully invested in real estate. The fundamentals, a systematic approach, the right attitude, and networking with like-minded people make for excellent starting points. Innovation often follows.
Topics all beginning real estate investors (and seasoned ones) must know include
- understanding real estate markets,
- analyzing deals,
- identifying a good deal,
- the importance of cash flow and how to create it,
- negotiating deals,
- contracts and other legal documents,
- financing properties,
- and perhaps more importantly, what strategies might be best for your purposes and goals.
And then there are ancillary topics, often as important as the fundamentals, which include
- tax strategies for real estate investors,
- how to set up your real estate investing business,
- how to protect your assets (once you have them),
- and many more.
Real estate investing is both an art and a science, and good preparation will help you navigate the field.
Books about real estate investing exist in abundance, yet finding those that will help you succeed is essential.
Many people find that they will eventually benefit from mentorship because the real estate investing field in its many applications is vast, and experience counts. Therefore, always keep in mind when reading books that some authors want to draw you in as their mentee. Read their books keeping that in the back of your mind and you will fare well.
Let’s move on the books.
1. Think and Grow Rich by Napoleon Hill
Why read this book?
Although not technically a real estate investing book, this 1937 book is a must read for investors of any stripe and entrepreneurs. The book details the 13 principles anyone who desires success must master. The emphasis is on thinking, although some doing is required. It’s a book I read once a year as a kind of refresher. It is invaluable. You may find it online for free, but I recommend having your own copy so you can market up and work with his overtime.
2. The Millionaire Real Estate Investor by Gary Keller
Why read this book?
The Millionaire Real Estate Investor is a mindset book that also offers a roadmap. Written by the founder of Keller Williams, the book is practical and makes for easy application. (Note: those applications do still require work.) The book details best practices, strategies, systems, methodology, and much more. It comes from someone who has experience in the field and can impart it for our benefit. It is one of those fundamental books you need in your library.
3. The ABCs of Real Estate Investing (part of the Rich Dad, Poor Dad series) by Ken McElroy
Why read this book?
The ABCs of Real Estate Investing is part of the Rich Dad Poor Dad series, which is about financial education, including investing. The book points out some important aspects of real estate investing and understanding and running a business and has stories that capture attention. Its main contributions are its focus on mindset, and deal analyses. Read about how understanding and thinking as a business owner relates and facilitates the accumulation of wealth.
4. Build a Rental Property Empire by Mark Ferguson
Why read this book?
Mark Ferguson run a large real estate blog and invests in rental property, so this book speaks about experience in multi-family rentals. The book is a great overview of what’s required when investing in rental property. Aside from the fundamentals, Ferguson also focuses on such things as how to finance investments with limited funds, finding excellent property managers and having an exit strategy.
The book is great for those interested in rental properties—multi-family in this case. It does not cover other real estate investments. If you’re interested in rental property niche, this is the book for you.
5. The Book on Rental Property Investing by Brandon Turner
Why read this book?
Turner’s book is a great primer on real estate investing and especially helpful for beginners to get the lay of the land. Most of Turner’s books tie in with the BiggerPockets real estate investing platform and his podcasts there and this one is no exception. Interviews with successful investors, real estate investing fundamentals, and Turner’s are valuable parts of the Book on Rental Property, yet the book is basic. It provides little depth and instead dispenses some real estate investing truths in a friendly, accessible tone.
6. Emerging Real Estate Markets by David Lindahl
Why read this book?
Lindahl, the owner of a real estate investment company who also mentors real estate investors, focuses on emerging markets for multi-family real estate investing. Based on the premise that “real estate investing is not a guessing game,” this book details what investors need to look for in a good, even great real estate investment. Lindahl lays out his system and what to look out for when investing in multi-family real estate. While the information about emerging markets is cursory, the book contains fundamentals and important nuggets beyond the fundamentals. It belongs into any real estate investors library for that reason alone.
7. More Than Cash Flow: The Real Risks and Rewards of Profitable Real Estate Investing by Julie Broad
Why read this book?
Broad’s book gives beginning real estate investors a dose of reality, addressing myths about real estate investing being easy or that is passive (the myth of passive income). Filled with personal anecdotes about learning real estate investing lessons by making mistakes, believing others with vested interests and through faulty personal beliefs, the book is essential in helping investors ferret out what’s real and workable.
8. Long-Distance Real Estate Investing: How to Buy, Rehab and Manage Out-of-State Rental Properties by David Green
Why read this book?
Long-Distance Real Estate Investing: How to Buy, Rehab and Manage Out-of-State Rental Properties, a BiggerPockets publication, provides aspiring and veteran real estate investors with the nitty gritty of buying and owning property far away. Though the book has a tendency to ramble, perhaps to drive traffic to the author’s BP platform, it contains a good overview to what to consider when investing out-of-state. Plus, it details the importance of systems, teams, and resources.
9. Retire Early with Real Estate by Chad Carson
Why read this book?
Retire Early with Real Estate provides an interesting but basic overview of what investing in real estate can mean. Written by another BP author and a real estate investing coach, the book tends to be repetitive yet offers insights about what works (or might work) when investing in real estate. That includes a favorite Millenials investment strategy, known as house hacking. That slant may make it a valuable read for Millenials and anyone interested in working with them.
10. The Book on Tax Strategies for the Savvy Real Estate Investor by Amanda Hann and Matthew McFarland
Why read this book?
If the money investors keep in their pockets is what counts, this book is a must read. While taxes and tax strategies may sound a bit dry, they have a huge impact on real estate investing. Taxes are complex, and the book explains some concepts and applications well. Still, beyond detailing deductions and depreciation, the book leaves much to learn, but it remains an indispensable read for real estate investors.
BONUS
This article’s own two books . . .
How Trends Make You A Smarter Investor
Why read this book?
How Trends Make You A Smarter Investor recognizes that economic and societal trends can and do drive markets. The real estate investing markets are no exception. Beside real estate investing fundamentals, including 7 real estate investing rules, the book discusses 9 trends real estate investors must know and which they can employ for smarter, socially conscious real estate investing.
Finding Profitable Deals
Why read this book?
Finding Profitable Deals shows real estate investors what real estate niches and investment opportunities exist. It includes single-family homes and multi-family investments and then expands to niches like real estate note investing, mobile home park, and probate investing. Further, the book gives a marketing overview that aims to help real estate investors find leads in these niches.
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