If you found your way to this article, it shows that you’re motivated to learn more about investing. Real estate investing has a lot of perks, but of all the types of investing out there, real estate investing may be the toughest to start. There’s a lot you need to know about types of properties, cash flow, and long-term strategies.
Why You Should Consider Real Estate Investing
Real estate investing is one of the best ways to diversify your investment portfolio. Depending on the real estate strategies you use, real estate can fulfill short- and long-term financial needs. Even first-time homebuyers can consider themselves real estate investors. Real estate can:
- Help you create a vehicle to grow wealth through building equity.
- Create a passive income stream
- Diversify your overall investment portfolio
- Pass on wealth to family members
And that’s just the beginning! As you can see, with so many different strategies, there’s probably a reason for you to get started in real estate investing. To learn how to invest in real estate like a pro, here are some of the best real estate investing books to get you started.
The Book on Flipping Houses by J. Scott
This book will give you everything you need to know to start making money by flipping houses. When you think of real estate investing, you might think only about long-term investment potential. However, real estate can also be a lucrative short-term investment.
This book will walk you through the complexities that come with flipping houses. If you’re skeptical about getting into real estate, a house flipping investment may be the perfect place to start.
Best for: People who are looking for great short-term investments options; people who love a good DIY project; or anyone who is interested in increasing the value of a property through “flipping” it – even if the purpose of the property is actually for long-term wealth.
Building a Rental Property Empire by Mark Ferguson
Rental properties are one of the top ways to make money in real estate. This book will prepare you for buying your first rental property, but it doesn’t stop there. It will also give you strategies for leveraging your first rental property investment into many more real estate investments.
This book is essential to read before buying any property that you intend to rent, either now or in the future. Rental properties are the ultimate source of passive income, and can be a huge benefit to both your short- and long-term financial goals.
Best for: Anyone wanting to learn more about buying properties for their rental potential; people who want to set themselves up for long-term success using rental properties; people who may not understand the differences between rental property real estate and traditional homeownership.
Crushing it in Apartments and Commercial Real Estate by Brian Murray
Apartments and commercial real estate investment opportunities spring up all the time. The problem is that most individuals overlook these opportunities. Why? Because there’s a stigma in the market that the only people who can make it big with apartments or commercial real estate are professional developers or property management companies.
This book will prove that the stigma in the market is a myth. Plus, it will give you everything you need to know to successfully make apartments or commercial real estate a part of your real estate investing strategy.
Best for: Newbie and experienced real estate investors alike; investors interested in learning more about the unique opportunities that apartments and commercial real estate presents; any person with dreams of being an entrepreneur through smart real estate investing.
What Every Real Estate Investor Needs to Know about Cash Flow by Frank Gallinelli
Let’s face it, real estate investing isn’t something you can learn overnight. But with books like this, you can learn the vocabulary and the ins and outs of the financial questions you need to be asking realtors, brokers, and anyone else you cross paths with.
Real estate investing is far from a get rich quick scheme, and this book’s no-frills style will help you see how to succeed, both in the short-term and the long run.
After reading this book, you’ll have the ability to analyze a deal from a financial standpoint. You only get rich if you can do the math, and this is the book you can use to learn it inside and out.
Best for: Investors who need to brush up on their financial acumen; investors who want to become full-time real estate entrepreneurs; anyone who wants to learn how to remove the emotion from a real estate deal and focus strictly on the cash flow potential.
Retire Early with Real Estate by Chad Carson
We’ve already mentioned that real estate investments are a high-quality source of passive income. You may think that at this point in your life, you don’t “need” passive income. Sure, you might be comfortable, but think about the long-term benefits of passive income.
This book specifically focuses on one of the biggest benefits: early retirement!
Don’t be forced to wait until you’re eligible for social security to retire. Instead, live your best life on your terms by investing in real estate specifically for the opportunity to retire early.
This book outlines the strategies that will help you achieve your goal of early retirement through savvy real estate investing. And you know it works, because the author himself retired at the ripe old age of 37 using the methods he describes in this book.
Best for: Investors driven by big financial milestones; people who want to learn how to achieve financial freedom through real estate investing; anyone who is motivated to take action and now just needs the road map to follow.
Your Next Steps
If you truly want to make money through real estate investing, you have to take the first step: purchasing that property! As you’re reading through one or more of the great real estate investing books we’ve shared, here are some steps you can take to prepare yourself for that first step – no matter where you want your investment journey to lead.
- Find a realtor you trust. When you’re purchasing a property for investment purposes, you don’t want to be dealing with anyone less than the best. Don’t just ask around for referrals from your friends and family, do your research. Interview candidates, ask for proof of their track record and don’t work with anyone who makes you feel like you’re settling. The best realtors will have the experience to help you find the best properties and negotiate the best deals.
- Clean up your act. If you’ll be using bank financing for any real estate investment purchase, you’re going to need to get some paperwork in order. Take an inventory of all of your accounts, assets, debts, and other info that banks may ask for, including pay stubs and previous tax year information.
- Get tax advice from a professional. Real estate investing can have an impact on your taxes. To avoid surprises and set yourself up for success, find a tax professional and meet with them regularly. They’ll help you figure out whether or not to set up an LLC, and what tax credits or write-offs you might be eligible for as your portfolio grows.
So what are you waiting for? Read up on one or more of the awesome real estate investing books, and get yourself set up for your property search. The sooner you start, the more time you’ll have to make money.
