Real estate investments can provide excellent returns if the proper steps are taken, but many new investors lack the necessary skills and education. I wanted to discuss the significance of real estate education through books. This article will present the18 best real estate investing booksto get you started in 2021.If you read all of these books, you will gain a lot of knowledge and learn from the case studies of top investors who have had great success in real estate investing.
Are you a real estate investor? Are you planning to invest? Real estateinvesting is an ever-evolving industry. Real estate is regarded as one of the best investments that a person can make. But why do so many people struggle with it? The first step is to prepare your mind and habits for success. You will also require adequate real estate education to assist you along the way.
Why Should You Read Best Real Estate Books Before Your Investment Starts?
Well, real estate investors disagree on many topics, but one that nearly all agree on is the necessity of investing in yourself. There are literally thousands of booksout there that deal withreal estateinvesting, and I’ve probablyread a lot of them! These are my choices ofgood books on real estate investingfor this year. What about you?
Reading books is one thing, but where do you start? To be successful as a new real estate investor, you need to learn but it can be hard to sift through all the books to choose from. Finding a good real estate book can be difficult, especially if you don’t read a lot.So I’ve created this list and I felt I would give it to you in a way that breaks it down into several categories.
I want it to break it down into the following areas, mindset, finance, and investing real estate investing for beginners, which is really from beginners to intermediate level investors, and then real estate investing books to grow your business. So once you’ve gotten started to just continue to grow and scale books on property management and books on taxes, or more specifically on how to save and minimize your taxes.
So that’s essentially six categories. Now, keep in mind, this is not an exhaustive list. There are literally hundreds, if not thousands, but hundreds of books on real estate. In fact, if you don’t believe me, just go to amazon.com and type inreal estate investingor even just real estate. And you will see there are a lot of books and that’s the problem. There are just too many books to choose from, and it’s really hard to know which ones are good, great, or bad. And believe me, there are many bad books out there.
The other thing too, to keep in mind is that if you don’t like reading, or if you’re a slow reader, you can get the audiobook version of most, or probably all of these books that I have on the list today. So whether it’s print or audio, there’s something for you today. In fact, you could actually have both. You could read when you have the time to read and listen to the audiobook in the car, or when you’re doing stuff around the house or going for a walk.
And last but not least, I will edit and continue to edit and add to this list from time to time. So it’s a living, breathing dynamic list. It’s not static, it’s not a one size fits all list, but I wanted to pick what I felt were the best books for this list at this time. So with that, let’s start with the first of the six categories and that is the mindset.
So I’ve tried to keep it to about anywhere from two to four books per category or section, it’s probably an average of three books per section. And what I’m going to do is just tell you the book and give you a brief description of that book and what you can expect from it. And then you can just decide on your own, whether it’s something you want to listen to or read. So the three books that I picked for mindset start with a classic, a perennial classic, and most people would think I’m going to say, Think and Grow Rich.
That is a great book. And I do recommend reading the classic, the original book, not the revised edition of it. If that’s a book that you haven’t read or it’s been a long time and you probably should go back to reading it because Napoleon Hill’s come out with a lot of great books and a lot of great content because he had access to some of the wealthiest people in the country back in the day.
18 Best Real Estate Investing Books You Must Read In 2021
Below, you will find 18 of the best real estate investing books recommended by entrepreneurs and investors. Read these real estate books in 2021 to become successful in this business. These books are vital to get success in real estate. They will form the backbone of your success for years to come. These books are not just real estate specific, they will also help you develop a winning mindset.
But my first pick isThe Richest Man in Babylon. And again, this is the original edition that I’m referring to, not the edited or revised edition for the 21st century. Get the original text. The Richest Man in Babylon is based on Babylonian parables, and it has been hailed as the greatest of all inspirational works on the subject of thrift and financial planning, and personal wealth in simple language, these fascinating and informative stories in the book set you on a sure path to prosperity and it’s accompanying joy.
So these are just great stories. It’s not really a how-to book. It’s more of a storybook than anything else, but it is a celebrated bestseller. And it often offers an understanding and a solution to most people’s personal financial problems, whether they know it or not, it identifies what your problems are, but revealed inside of the book are the secrets to acquiring money, keeping the money, and making money, earn more money for you, which really parallels perfectly with what I talk about all the time.
And that is the three categories, buckets, or areas of creating wealth. And that makes money, grow your money and protect your money. So anyway, stick to the original edition. It is the original uncensored version of the book, the language of the content, and the message from the author. George S Clason, I believe that’s how you pronounce his last name.
And this book was actually written in 1926. So it’s way back there. In fact, it’s even before Napoleon Hill’s Think and Grow Rich. Now, fast-forward to the recent past as in the 21st century, the next book I’m sure many of you are familiar with, but probably most of you are not a book by Darren Hardy calledThe Compound Effect: Jumpstart Your Income, Your Life, Your Success.
This book reveals the core principles that drive success and The Compound Effect book contains the essence of what every super achiever needs to know practice and master to obtain those extraordinary results, the extraordinary success. So in this book, they talk about things like how to win almost every time, the number one strategy to achieve any goal and triumph over your competition.
It really is a book to help separate and differentiate yourself. It talks about eradicating bad habits and we all have bad habits. And often those derail your progress. It talks about the real lasting keys to motivation, kind of like what Tony Robbins talks about, but more so. And that is how to get yourself to do things you don’t feel like doing.
And I know we’re all there at various times of the day, the week, the month, how to capture that elusive awesome force of momentum. Because once you get going, you feel like you want to keep going. You don’t want to stop because once you get going, it’s almost hard to stop, and talks about many other things and something he refers to as the acceleration secrets of super achievers.
So The Compound Effect has a great title because small successes compounding on small successes lead to larger successes, which continue to compound on themselves. And so once you have that momentum, it continues to grow. But if you’re serious about living an extraordinary life, then read this book. It will help to create the success that you desire.
My third book pick here is from Brendon Burchard, someone who I had on the show, not too long ago, I think it was about a year, year, and a half ago. Great guy. In fact, our interview went so long. I had to split that episode into two parts. So you could look for that episode. And I believe it was called High-Performance Habits, which happens to be about the book that he wrote.
One of his last books is calledHigh Performance Habits. How extraordinary people become that way. So 20 years ago, or so Brendan became obsessed with answering three questions. He wanted to know why do some individuals and teams succeed quickly more quickly than others, and actually sustain that success over the longterm. You wanted to find out of those people who actually pull it off, why are some miserable?
And then the other group are consistently happy on their journey. And thirdly, you wanted to know what motivates people to reach for higher levels of success in the first place. And then what practices help them improve the most. So after doing some extensive, original research that he does in his own company, and after a decade, as the world’s leading high performance, coach Brandon found the answers to these three questions.
And it turns out that just six deliberate habits give you that edge. Now he says that anyone can practice these habits. And when they do extraordinary things happen in their lives, in their relationships, in their careers, it really is a good book. It is definitely well worth reading regardless of what you do in terms of your job or career, business, or practice. It really is a book on becoming a high performer. And to become a high performer, you must seek clarity.
Clarity is so critically important. You have to know how to generate energy. You have to know how to raise necessity, increase your productivity, develop influence, and then lastly demonstrate courage. And this is what he talks about in the book. So it’s really the art and the science of how to do it all. And that’s what you’re going to learn by reading this book or listening to the audio.
So those are my three picks and believe me in this category about mindset, literally, there are over a thousand books. I mean, there is so much out there from Brian, Tracy to Tony Robbins and you name it. But these three are, I think very, very fundamental. In fact, I would argue that they are cornerstone books,The Richest Man in Babylon, The Compound Effect,andHigh-Performance Habitswill improve and change your life. Okay. That’s the first category.
The second category is finance and investing. And again, this is one of those sections where there are literally hundreds of books. And again, it’s hard to narrow it down, but it wasn’t too hard for me to pick. What I feel are probably the three cornerstone books, regardless of how experienced you are how much, you know, or how seasoned you are, or how wealthy you are.
Because the fundamentals and the principles found in these three next books are great as a refresher. I’m sure you’re going to read it. And there are things that you never knew before, and it’s just great additional knowledge.
4.Rich Dad, Poor Dad:What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
So the first one is probably no surprise to anybody. I’m sure most of you have read this at some point in the last 22 years, it’s been that long, but many of you know of it. So it isRich Dad, Poor Dad, what the rich teach their kids about money that the poor and middle class do not buy. Obviously, Robert Kiyosaki, this book has since become the number one personal finance book of all time.
It’s been translated into dozens of languages and it’s been sold all around the world. I’m not even sure how many millions of copies this book has sold, but it has become a modern-day classic finance classic. So Rich Dad, Poor Dad is Robert’s story of growing up with two dads, his real father and the father of his best friend, his rich dad.
And it talks about how both of these men, his fathers shaped his thoughts about money and investing. So the book explodes the myth that you need to earn a high income, to be rich and explains the difference between working for money and having money work for you. And that’s a key distinction.
And a lot of the book builds upon that concept, but the book is great because it challenges the beliefs that your house is an asset, which most people still believe to this day. It is not, it is a liability. And if you don’t know why to read the book, it shows why parents rely on the school system to teach their kids about money and why that’s a mistake in that.
Doesn’t actually work. It defines once and for all, what an asset and a liability truly are. It makes simple definitions for this stuff. And it teaches you what to teach your kids about money for their future. So if you’re a parent listening to this and you want to help your children become financially literate and increase their financial IQ, this is a foundational book. It’s one of the starting books if you will.
So the second book, no surprise is going to be the second book in what is essentially a three-part series of the Rich Dad series of books. These are the three foundational books, but the second book isRich Dad’s Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom.This was the second book. So rich dad’s cashflow quadrant is a guide to financial freedom.
It picks up where the last book left off the first book, rich dad, poor dad. So as the second book in the rich dad series, reveals how some people work less, earn more, pay less in taxes, and learn to become financially free. So cashflow quadrant was written for those people who are ready to move beyond what they feel is job security.
And I say that in air quotes and enter the world of financial freedom. It’s for those people who want to make significant changes in their lives and take control of their financial future because this is more of the how-to Rich Dad, Poor Dad was more of the foundational book, kind of laid out the principles and the concepts and some of the definitions that you need to know such as a profit and loss statement, a balance sheet, how money flows and all that, this builds on top of that.
Robert believes that the reason most people struggle financially is that they’ve spent years in school, but we’re never taught about money. And Robert’s rich. Dad taught him that this lack of financial education is why so many people work so hard. All their lives it’s to work for money, instead of learning how to make money work for them, they basically just work for money.
So this book will change the way you think about your job, your career, owning your own business. And hopefully, it will inspire you to learn these rules of money that the rich use all the time to build and grow their wealth.
The third book again, no surprises. It’s not going to be a shocker. It’s really the third book in that rich dad series. And these books work well together. They’re built to be stacked on top of each other. So the third book isRich Dad’s Guide to Investing:What the Rich Invest in, That the Poor and the Middle-Class Do Not. So investing obviously means some different things to different people.
And there is a huge between passive investing and becoming an actively engaged investor. And one is not better than the other. There’s no right or wrong. We’re both at different times in our lives. And it also depends on what we’re actually doing. We’re always going to be active or passive investors.
Usually, we’re both, but you just need to understand the distinction there, but becoming an active investor means you’re an engaged investor. And so there’s a lot of power in that. So rich dad’s guide to investing is one of the three core titles in this series. And it covers the basic rules of investing, how to reduce your risk in investing, how to convert that earned income you get from your active job or career, and turn that into passive income.
And he talks about something he refers to as rich dad’s 10 investor controls. And this is where he gets into the weeds gets deep into the concepts of investing. So the rich dad philosophy makes a key distinction between managing your money and growing it and understanding the key principles of investing is the first step towards creating and growing wealth.
So this book delivers the guidance. You need to help begin that process of becoming an investor and stay on that road till you get to that point of financial freedom. It’s really more of a guide. In fact, the title says it all rich dad’s guide to investing. All right, well, those are the three books in the finance and investing category, and it’s really the trio, the three rich dad series books, the initial or the original books.
Now let’s talk about real estate investing for beginners. So this was a little bit challenging for me. In this category, I ultimately decided on four bucks instead of three for this now keep in mind, even though I’m calling it real estate investing for beginners, these books apply to almost everybody. Even if you are a seasoned or an experienced investor, there’s a lot of stuff you can learn from these books.
If not every chapter, certainly some of the chapters in these books and the first one is really not a book at all. In fact, it is my ebook that has been a free download on our websites for the last probably 10 years, which has been downloaded literally tens of thousands of times. And I wrote this 40, 42-page ebook as a primer for people to understand the key concepts and key components of investing in real estate, leaning towards passive investing, meaning buy and hold, not flipping real estate, or to actively involved.
It’s really about building a portfolio, creating wealth, creating passive income, and learning the fundamental key pieces. So it is really a great primer. So you read it, it’s a great starting point, but then you build on top of it with these other books. SoThe Ultimate Guide to Passive Real Estate Investingthe free download on our website is really about the most powerful way to accumulate wealth.
This guide that I wrote has been written to help educate all real estate investors, regardless of their experience level. And again, it’s a primer. It talks about the advantages of income-generating real estate, how to analyze properties, key metrics, cash flow returns, what to look for in the quick test to see if a deal is worth even pursuing.
So it’s kind of like the smell test, if you will, how to choose some of the best markets and neighborhoods. I try to pack it all in there. There’s no fluff. It’s just crammed with good information. So if you haven’t downloaded a copy or read it, go ahead and do so. I’m going to be updating that soon to kind of a version 2.0, so I’ll expand on it a little bit. And I’ll just tighten up a few things in there based on today’s economy and environment, but not much has changed because principles don’t change. All right.
The second book in the real estate investing for beginners series here isHow to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started.This book was written by Brandon Turner. He’s got several books. I’ve picked a couple of his and this book is great if you’re starting and good if you’re a moderate level investor.
So everyone knows that real estate investing can be a powerful way to build wealth and achieve true financial freedom. But because each person’s journey is going to be a little different knowing the first steps to take is challenging for some people. So what this book does, it becomes a manual of sorts on getting started in real estate investing.
It gives you essentially an insider’s look at the many different niches and strategies that exist. So it’s not all about passive real estate investing. It’s got a little bit of everything and it just kind of helps to paint picture. In other words, it shows you the landscape and then you can choose your path.
So what you can do is find which strategy and path work best for you, and then help you build the resources and the goals around that. Unlike most real estate books, this one won’t tell you that there’s anyone secret path, okay. It is considered by many as one of thebest books on real estate investing.
There’s more than one path to success in real estate, but it has more than 40 real-life stories in the book from other investors on how they achieve success in real estate investing. And I’m sure you’re going to be able to relate to many of those stories. There’s a lot of similarities, but there are differences with every person and every story.
All right, the next book, the third book, if you will, isThe ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss. And this is by one of the rich dad advisors, Ken McElroy. He is a sharp guy. You know, I’ve talked to him in the past. I’ve had him on the show at one point and you know, I like his content. Now he’s really a big real estate guy.
He’s focused primarily on big multi-family apartment complexes, but he did start with, you know, small real estate, single-family homes. And that doesn’t mean that there’s a migration path here. Some people will start with, you know, multi-units and apartments and work their way down to single families, duplexes, and fourplexes, and other people do the other way around.
And while other people just stick with one and stay with it. So you can create wealth and passive income with every size and type of real estate. But with his book on the ABCs of real estate investing, he kind of geared it more towards the people who are just getting started in the beginners and just real estate investing.
Think of it like real estate investing one Oh one, but he talks about things on achieving wealth and cashflow using real estate. You know, what a property is potential is how to unlock the myths that float around real estate for people who are seasoned, how to negotiate on deals, evaluating properties and the purchase price, how to increase the income on a property, and ways to properly manage a property.
Now he doesn’t get into property management in any depth in this book, it just touches upon it. He actually has another book on that topic, which I’ll talk about here in a minute. And then the fourth, if you will, fourth and last book in this category isLong-Distance Real Estate Investing. Now I love that title. He doesn’t get too deep into it, but it is a good book. It’s by David Green.
It’s one of the bigger pockets series books. But you know, what he talks about is living in a hot market or a market that’s not suited for buying hold investing because it’s just unaffordable too expensive. The numbers don’t work, whatever the case is, but he poses the question. Well, how do I take advantage of building wealth in real estate? When I live in a market that I can’t invest in, it’s impossible, or how do I avoid, you know, market fluctuations or the next market crash.
So we know real estate investing is one of the greatest vehicles for creating wealth, but you need to understand how to choose markets and be able to be nimble and agnostic. And this is stuff I talk about on the podcast all the time, and this is what he talks about in the book. I just wish he would get more deep into the concept of done for you and rent, ready properties, and turnkey properties.
He touches upon it. But to be completely honest with you guys, I have always found since the beginning of bigger pockets in 2007, they’ve always had a bias towards turnkey, real estate investing, and passive real estate investing in general. They are certainly of the active, real estate investing flavor. They certainly believe in buying, fixing, and creating value on properties.
It seems that to me, that most, if not all of their content, either excludes conversations about turnkey investing, buying properties that are essentially rent ready. So you don’t have to do any fix-up or renovation work. They’re all about putting in sweat equity to create value. That’s fine, but that’s not for everybody. And we all know that a lot of us are busy. We don’t want to go down that road.
We just want toinvest in real estateand build a portfolio and let it grow over time. So I’m not knocking the book. The book is good. I just wish he had more on the topic of passive real estate, investing, turnkey, real estate, investing, and done for you models instead of hiring a team outside of your local market to essentially do all the grunt work, swinging the hammers, and everything else, that’s fine.
But I think he glosses over a little too much. In fact, all the “Bigger Pockets” books gloss over the turnkey space. So in this book, real estate investor and police officer David Green, shows you how he’s built a multi-million dollar portfolio through buying, managing, and flipping out of state properties. So keep that in mind when you read it, but he does share tips, tricks, and systems that he’s put in place over the years of his real estate investing experience and journey and what he’s done to essentially succeed and avoid making mistakes along the way, but just realize that’s the perspective.
Anyway, the bottom line with this book, and what I like to talk about all the time is to don’t let your location dictate your financial freedom, learn how to succeed regardless of where you live and where you invest, choose the right markets, the right neighborhoods, the right properties, and have the right team around you. And that will be a secret if you will, or a formula to your success.
All right, the next category is real estate investing to grow. So this is kind of the next level up. One of my favorite books that I read in real estate investing isThe Millionaire Real Estate Investorby Gary Keller, Gary Keller well-known author. He is obviously the founder of Keller Williams, the real estate brokerage nationwide real estate brokerage. So he is a real estate investor and a very good one.
Anyone who seeks financial wealth first needs to learn the fundamental truths and models that drive it. And this is what he talks about in the book. So the millionaire real estate investor represents the collected wisdom and experience of over a hundred millionaire investors from all walks of life who have pursued financial wealth and achieved it through real estate.
And so what he did is he basically created this book in a straightforward, no-nonsense way that reveals the strategies that these hundred millionaire investors have used to create financial freedom, independence, and a lifestyle that works for them. So this book essentially is a handbook that has tried and true financial wealth-building principles and models built around the real estate that reward your patience and perseverance, and he lays it out.
So some of the things he talks about are the myths about money and investing and especially the ones that hold people back and really how to develop a mindset of a millionaire investor, which goes back full circle to where we began about mindset. You know, even when he talks about this in the beginning part of the book, he talks about how to develop sound criteria for identifying great real estate investment opportunities, how to zero in on key terms and parts of transactions, and achieve the best possible deals when you’re putting a deal together or looking for a deal.
He also talks about how to develop your dream team, which is something I talk about often proven models and strategies that millionaire investors use to track their net worth understand finances. It’s not a very complex or complicated book. It’s not going to put you to sleep or cause your eyes to glaze over.
I think it’s extremely well-written. So again, it’s one of my favorite books. It’s a blue and white book. The next book in this category on real estate investing to grow isThe Book on Rental Property Investing.Again, this one is the second one by Brandon Turner. So in this book, he discusses practical strategies that investors around the world use to build significant cashflow with theirrental properties. So this is getting a little bit more into the weeds, a little bit more tactical if you will.
So in this book, you’ll learn how to build an achievable plan, how to find good deals, how to analyze those properties and those deals build your team, finance, the rentals, and a whole bunch more, and basically everything you need to become successful at rental property investing. Again, it’s a book there’s only so much you can put in the book, but it does a good job of laying it out. This is one of the best books on real estate investing. This book will feed what you need to succeed inrental property investing.
13.Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals
Okay. So again, think of it like a, a, a practical guide. So there’s a lot that he covers in this book, but you know, he starts with why real estate investors fail and how you ensure that you don’t. And he talks about four easy-to-follow strategies that you can build your real estate portfolio on creative tips to find those deals, how to achieve success by avoiding property management, which, you know, we all love actionable ideas on financing.
Those rentals. Now, obviously, there are limitations there, but for the most part, it’s going to be cheap financing like conventional loans and a little bit of advice on keeping your wealth by deferring and eliminating your taxes, which you know, is really not an extensive part of the book, but essentially something we’ll talk about here in a minute last but not least. I included another book by Ken McElroy, and this is theAdvanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals.
So if you’re interested in the real estate investing space, you may have noticed that this part of real estate doesn’t get covered much. And when it does the mainstream media focuses mostly on, you know, stocks, bonds, mutual funds, and that kind of stuff. And they don’t really talk about real estate as an investment, all that much. It’s really about homeownership.
And even when they do talk about it, it’s like, Oh, it’s like this one, nebulous bob, they refer to as the housing market, but they don’t really talk about specific markets unless you’re listening to your local news channel, but that’s because financial publications, TV, radio, um, they make the bulk of their money from advertising paid by the very companies who provide the mainstream media and those channels with financial services, the advertising, the marketing, all that stuff.
But real estate investment is something that you can do on your own without a large amount of money upfront, as we all know if you just learn how to do it and pick the right markets to do that. So what Ken did with this book is he picked up where he left off in the first book, the best-selling book, ABCs of real estate investing. And he reveals the next essential lessons and the information that you need as an investor to succeed and continue to scale and grow your business.
So he built on the foundation of the first book, which is kind of like real estate investing one-on-one and he talks more about how to think and operate like a real estate mogul. How do identify and close expert deals, you know, differences between single multi-family property surrounding yourself with the right team to maximize your money, avoid paying thousands in taxes, by structuring property sales wisely? This is a kind of asset protection and tax strategy combined, and last but not least important projections about the future of real estate investing. Now, this book is a few years old, so, you know, I’m sure some things have changed.
I don’t think Ken was expecting the amount of appreciation that we would have seen over the last two, three years and the lack of inventory. So it kind of compounds on what he talks about. The next section is about property management. And so again, Ken wrote a third book on this subject because this is where he actually started his real estate career as a property manager.
And so his book isTheABCs of Property Management: What You Need to Know to Maximize Your Money Now. So as you start to invest and you build your portfolio, the question comes up, you know, how are you going to make it as profitable as possible? And how will you maximize its potential and make it grow in value? And the one word he has for this is management.
Now that doesn’t mean your managing the property, although you could, if you want it to, there’s nothing wrong with that. And it’s probably good to understand how to manage your property, but if you’re managing your managers, this is good information. So in this book can reveal the key to his success, and that is exceptional property management.
So he teaches you the most important principles and the keys to achieving success, where other people fail, which is often in the management of their properties. So he talks about things on how to decide, you know when to manage your property and went to hire someone, to do it, how to implement the right systems.
If you’re doing it yourself structures for your investment, how to manage and maximize cash flow, you know what to expect, essentially it’s the life of an owner-manager and how to find the right property manager and avoid the wrong ones. So I think this is a good book as a frame of reference, whether you manage or you don’t.
The second book is if you choose to manage your own properties, it’s another book by Brandon Turner calledThe Book on Managing Rental Properties, a proven system for finding, screening, and managing tenants with fewer headaches and maximum profits. This is definitely a book for a do-it-yourself. So if you want to manage your own properties, even if it’s just one or you already manage your properties, and this might be a good supplement to that.
So no matter how great, you know, you are at finding real estate deals, if you, I don’t want to manage your properties well or correctly, you’re obviously leaving money on the table, or you’re not maximizing your returns. Brandon likes to say that being a landlord can be fun, but only if you do it right. So learning to effectively manage your tenants means that you end up with more freedom, less drama, higher profits from your real estate business.
And it just ends up looking good, feeling good. So Brandon’s a, you know, an experienced property manager, he’s been managing his own properties for a long time. And what he does in this book is essentially takes you on an insightful tour of their management business there as in, you know, him and his wife. So you can learn how they’ve been able to maximize profit, minimize their stress.
He says that he has a blast doing it. So I guess you can learn how to do that too. But he talks a lot about his personal stories of the mistakes and that they’ve had, and that you can learn from. And he talks about the different tools and tricks and systems that they’ve put in place over the years. And the book probably will change the way you think about property management altogether.
So there’s a lot of stuff he covers in the book. I think it’s more than a beginner’s book. It’s certainly a primer, but it has some advanced content. So overall I think it’s great. And last but not least taxes, you know, the thing we want to defer or eliminate as much as possible. So I have three book picks here. There are many books out there on taxes, but I think these are great fundamental books.
And really what I’ve tried to do again, is boil it down to the best two, three, or four books in each section that will give you everything. You need, the nuts bolts strategies, tactical plans, and not leave you hanging. So the three books I chose for the area of taxes is first and foremost, the book by Tom Wheelwright, another one of Robert Kiyosaki’s rich dad advisors, great guy, super smart. I’ve had him on the show several times. Always have great episodes talking to Tom, but his book, which he just revised recently.
So it’s the newly revised version, but it’s calledTax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes, what a great title. So I will say that this book is slanted a little bit more towards business owners and entrepreneurs, but it applies to anybody and everybody because if you pay taxes in any way, shape, or form, you’re going to learn something or you can learn something from this book.
So tax-free wealth is about tax planning, concepts, and how to use the tax laws to your benefit. So Tom explains how the tax laws work and how they are designed to actually reduce your taxes, not increase them. The key here is to understand how taxes and tax law works. So the book explains how to use the tax laws to your advantage, and in ways that will support your vision and growth plans, not only for your company or your business, but you know, for your investing empire as well, however, that is structured and you know, more specifically real estate.
So once you understand the basic principles of tax reduction, then you can immediately reduce your taxes to the point where eventually you may be able to legally eliminate and contactless and drastically reduce your taxes overall. And he talks about this in the book. So it’s about minimizing, eliminating, and deferring your taxes.
Those are the three things he talks about in the book. Now, once you get through that, there are two books specifically on real estate investing, as it relates to taxes. And the first one isThe Book on Tax Strategies for the Savvy Real Estate Investor. The subtitle to this book is powerful techniques.
Anyone can use to deduct more, invest martyr and pay far less to the IRS. The book was written by Amanda Hahn. She actually lives in Orange County here, not too far from Ireland. And what she talks about is ways to maximize your deductions for your real estate business.
And they also talk about practicals on how to minimize your taxes, not only for this year but in future years, as well as ongoing strategies that will make your next tax season that much easier. So what they want to do is basically help you save thousands of dollars by having great tax strategies in place.
So they talk about creative methods to maximize your deductions, clever ways to write off your kids’ strategies, to write off every penny on your travel tips and tricks to cut down on bookkeeping time, and simple procedures that will protect you from IRS audits. So that’s their first book, the foundational book, there’s a lot in that book, but then they wrote a sequel to it, which is my third book in this category of taxes again by Amanda Hahn.
And this isThe Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors.And you know, what they say is that when it comes to taxes, it’s not about how much money you make, but how much money you actually keep. So if you’re tired of working hard all year, just to lose, you know, the largest chunk of that money that you earned to the IRS, then, you know, obviously you want to learn as much as you can about taxes, you know, believe it or not.
The US tax system is filled with loopholes designed specifically to benefit real estate investors. And this actually got better in 2017 with the new tax act that was put into play under the Trump administration. So what was great as far as tax benefits for investors and real estate investors actually got even better with that tax act. So this book is a comprehensive follow-up to the book on tax strategies, which was a best-selling book by Han and Matthew McFarland.
And this just brings you more strategies to slash your taxes and turn your real estate investments into a tax-saving machine. And, you know, again, this book just goes deeper into a lot of the stuff from 10 31 exchanges to taking advantage of opportunity zone, tax benefits, how to supercharge your nest egg with self-directed investment strategies, steps to use your rental properties to legally wipe out your taxable income.
What else did they talk about in their ways to take advantage of the tax reform benefits that came about with all your real estate deals, accelerating your depreciation, and even common retirement and investment tax traps, and really how to avoid those. So, you know, people sometimes make the mistake of investing in their retirement account and then only find out that, you know, they’ve made a mistake. They don’t have any tax benefits or maybe not liable for tax penalties because they did it wrong.
The Short Version:
Housing prices are adjusting down from the 2020-2021 highs due to rapid interest rate hikes by the Feds. Interest rates are still historically low and affordable for rental property investors. Real estate is a long-term investment and the long term outlook is positive for investing now.
Brandon Turner, the founder of Open Door Capital, is an expert in the field, and he does his best to keep up with the trends. This helps him be an effective educator through his BiggerPockets podcast and books. As of 2022, Brandon Turner has a net worth of $10 million.How do you invest in a small amount of money in real estate? ›
- 1. “ House Hacking”
- Live-in, Then Rent.
- Live-in House Flips.
- Real Estate Crowdfunding.
- Real Estate Investment Trusts.
- Borrow Your Down Payment, But Be Cautious.
- Master Lease Option (MLO)
- Wholesale Properties to Investors.
- Start Small. ...
- Consider Exponential Rather Than Linear Increases To Your Portfolio. ...
- Learn Your Local Market. ...
- Take Detailed Notes. ...
- Research Your Financing Options. ...
- Live And Breathe Numbers, And Understand The 1% Rule.
Investing in real estate can be a terrific method to build a lot of wealth right now in 2022. Think about real estate as a long-term investment as the housing market is currently out of control. Not only are property prices rising across the board, but mortgage rates have reached their highest level in almost a decade.Will house prices drop in 2022? ›
This could in turn push average mortgage rates to around 4% (while still historically low, that is more than double the 1.6% rate recorded at the end of 2021) Based on this data, Capital Economics has forecast house prices to rise throughout 2022, before falling by 5% in 2023.Why did Brandon leave BiggerPockets? ›
Since 2012, when Brandon started co-hosting the podcast with BiggerPockets' founder Josh Dorkin, he has impacted and inspired millions of real estate investors. Starting in 2022, Brandon is stepping away from the podcast to spend more time with his family and focus on his business, Open Door Capital.How much does Grant Cardone make a day? ›
Grant Cardone's Money Metrics.
|**Earnings Per Year:||$117,000,000|
Brandon Turner has built a lot of his money investing in real estate. He focuses on owning cash-flow generating properties. In comparison, not a bigger part of his business model has experience flipping houses and building capital faster.How do beginners make money in real estate? ›
- Invest in single-family homes.
- House hacking.
- Invest in turnkey properties.
- Rent out properties on Airbnb.
- Manage real estate properties.
- Lend to investors.
Key Takeaways. The most common way to make money in real estate is through appreciation—an increase in the property's value that is realized when you sell. Location, development, and improvements are the primary ways that residential and commercial real estate can appreciate in value.What is the 1 rule in real estate? ›
The 1% rule of real estate investing measures the price of the investment property against the gross income it will generate. For a potential investment to pass the 1% rule, its monthly rent must be equal to or no less than 1% of the purchase price.What is Brrrr in real estate? ›
Share: The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method is a real estate investment strategy that involves flipping distressed property, renting it out and then cash-out refinancing it in order to fund further rental property investment.How many houses make a portfolio? ›
Many investors who own just two properties can consider themselves as owning a property portfolio. In mortgage terms, those who own four or more mortgaged properties are classed as portfolio landlords.Will house prices go down in 2023? ›
All survey respondents said to expect home-price deceleration in 2023. The U.S. housing market will shift in favor of home buyers by the end of 2023. That's according to 44% of the 107 economists and housing experts surveyed by real-estate company Zillow.Is it better to put more money down on a house or invest? ›
It's typically smarter to pay down your mortgage as much as possible at the very beginning of the loan to save yourself from paying more interest later. If you're somewhere near the later years of your mortgage, it may be more valuable to put your money into retirement accounts or other investments.Is it wise to invest in real estate now? ›
Key Points. Price is one factor investors should consider, but it's not the only one. Higher interest rates can make real estate more expensive, even if prices have gone down. However, real estate still offers a great hedge against inflation, making now a good time to invest.Is house prices going to drop? ›
Capital Economics predicts prices will fall 5% over the next two years, but analysts from Credit Suisse have warned this figure could be as high as 15% if interest rates continue to rise. As time goes on, rising interest rates could hit the housing market by making it: More expensive to borrow money.Will house prices go up 2022? ›
The current economic conditions mean that it is growing increasingly likely house prices will start to fall in 2022.What happens to house prices during inflation? ›
The house price rises by the rate of inflation times the cost of the house, not by the cost of your down payment. So if inflation doubled the value of the house, it may have quadrupled the value of your down payment.
Founder & CEO
Brandon Turner, founder and managing member of Open Door Capital, is the bestselling real estate author in the world and widely recognized as one of the foremost experts on real estate investing.
BiggerPockets has removed the app from app stores. Some users who have the app installed may be able to use it, but updating your phone may result in it not working. There is currently an effort to update the web forums.Who started BiggerPockets? ›
Starting a business is far from sunshine and rainbows. In this episode, Joshua Dorkin describes his journey from having hobby website to building the largest online real estate network in the world called BiggerPockets.How old is the average millionaire? ›
How old is the average millionaire? The average millionaire is 57 years old. This is because it takes smart financial decisions, hard work, and wise investments to become a millionaire, most of which don't fully pay off until around the age of 50 or 60.What is 10X America? ›
Project 10X is LISC's biggest, most ambitious and most urgent initiative ever. It is designed to upend the racial health, wealth and opportunity gaps that keep tens of millions of people from sharing in our country's prosperity and realizing their personal potential.How can I make a million dollar business? ›
- Related: Need a Business Idea? ...
- Decide on a platform.
- Source and test your product.
- Create a marketing strategy.
- Related: 10 Marketing Strategies to Fuel Your Business Growth.
- Develop your branding and website.
- Set goals and do the administrative work.
Cardone Capital Keeps 35% Equity In Each Fund Without Committing Any Capital. The good news is that most investors have seen a return of 6% on average, which is more than any other general investing opportunity.Is Fundrise real? ›
Fundrise is an online real estate company that gives investors access to private real estate deals, but be wary of underlying costs. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.What qualifies you as an accredited investor? ›
Accredited Investor Definition
Income: Has an annual income of at least $200,000, or $300,000 if combined with a spouse's income. This level of income should be sustained from year to year. Professional: Is a “knowledgeable employee” of certain investment funds or holds a valid Series 7, 65 or 82 license.
The answer is almost six figures for the average commercial real estate agent, which came in as the highest income out of all the agents we surveyed. Becoming an expert in commercial real estate could take more training — but it shows that more training pays off in this case.
are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.How can I make $1000 in 24 hours? ›
- Sell Stuff You Own. ...
- Design Websites For People. ...
- Ecommerce Store Launches. ...
- Blogging. ...
- Offer Coaching Classes To Groups. ...
- Consulting. ...
- Sell Seasonal Products. ...
- Ask For A Raise.
- Invest in Dividend Growth Stocks.
- Invest in (crowdfunded) real estate.
- Earn credit card sign-up bonuses.
- Earn new bank account promotions.
- Save with a High Yield Savings Account.
- Save with Certificates of Deposit (Brokered & Regular)
- 7 Fastest Ways to Make Money in Real Estate. ...
- Renovation Flipping. ...
- Airbnb and Vacation Rentals. ...
- Long-Term Rentals. ...
- Contract Flipping. ...
- Lease to Buy. ...
- Commercial Property Rentals. ...
- Buying Land.
- High-yield savings accounts. ...
- Short-term corporate bond funds. ...
- Money market accounts. ...
- Cash management accounts. ...
- Short-term U.S. government bond funds. ...
- No-penalty certificates of deposit. ...
- Treasurys. ...
- Money market mutual funds.
Becoming a millionaire real estate agent is possible, but it does not happen overnight. Only you can make it happen by constantly learning and being persistent in your goal. Ask yourself every day what you are doing that is getting yourself closer to your short term and long term goals.What is the 4321 rule in real estate? ›
The 4-3-2-1 Approach
One simple rule of thumb I tend to adopt is going by the 4-3-2-1 ratios to budgeting. This ratio allocates 40% of your income towards expenses, 30% towards housing, 20% towards savings and investments and 10% towards insurance.
Real Estate Investors: Pay No More Than 100x the Monthly Rent for a Rental. If you're going to invest in rental real estate, follow this one rule so you'll actually make money. Pay no more, including repairs, than 100x the potential monthly rent. So, if you think you can rent a place for $1,000 a month.What is the 2% rule in real estate? ›
The rule holds that the rental amount should equal two percent of the property's purchase price. By that calculation, if you purchase a house for $100,000, the monthly rent should be $2,000.What is a house hack? ›
House hacking means finding ways to generate income from your home. Traditionally, house hacking meant buying a multifamily property, living in one unit and renting out the others so that the tenants pay the owner's mortgage, and the owner builds equity while maintaining the property.
- Buy a rental property for cash.
- Rehab the property and get it ready for a tenant.
- Rent the property to a qualified tenant.
- Refinance the property and pull out the cash you invested.
- Repeat the entire process again to build a rental property empire.
- Know Your Neighborhood. Before getting started, you need to spend some time researching the real estate market and choosing the right location to invest in. ...
- Use The 70% Rule To Plan Your Budget. ...
- Assess Your Skill Set. ...
- Decide On And Buy Your House. ...
- Build Sweat Equity. ...
- Flip The House.
If you don't need traditional mortgage financing, you can own as many homes as you have the means to buy. If you pay cash or work out private financing with the seller or a hard money lender, there are no limits to how many homes you can own, as long as you can afford to make the payments and maintain the properties.How do I start a property portfolio with no money? ›
- Get your head in the game. The first, easiest and cheapest thing to start off with is the right frame of mind. ...
- Take in a lodger. ...
- REIT. ...
- Property lease options. ...
- Peer to peer lending. ...
- Property crowdfunding. ...
- Joint venture. ...
- Use your own equity.
- Start with one strong investment. ...
- Always buy at the right price and the right time. ...
- Develop a cashflow strategy. ...
- Get educated. ...
- Expand your marketing. ...
- Leverage your power team. ...
- Work closely with your finance broker.
Key Points. Price is one factor investors should consider, but it's not the only one. Higher interest rates can make real estate more expensive, even if prices have gone down. However, real estate still offers a great hedge against inflation, making now a good time to invest.Is it good to buy real estate now? ›
There is no imminent housing market price correction. When experts say that the best time to buy a home is now, that is true because, in any given period, property prices will never again be as affordable as they are now. India's GDP was at a 22-year high of 8.7% in 2021-22.What is the outlook for real estate investment? ›
Real estate outlook key takeaways
The housing market remains on solid foundation amid a shortage of homes and growing rates of new households. Financing remains relatively cheap, and cash flow from properties is strong. Multigenerational housing, already on the upswing, was accelerated by pandemic conditions.
Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.What is the 2% rule in real estate? ›
The 2% rule states that the monthly rent for an investment property should be equal to or no less than 2% of the purchase price. Here's an example of the 2% rule for a home with the purchase price of $150,000: $150,000 x 0.02 = $3,000.
The returns generated by investing in mutual funds are comparatively higher than that of real estate investments. While the rate of returns on real estate can range from 7% p.a. to 11% p.a., mutual funds offer returns ranging between 14% p.a. and 19% p.a. depending on the type of fund.What is the best REIT to invest in? ›
- Vanguard Real Estate ETF (ticker: VNQ) ...
- Schwab U.S. REIT ETF (SCHH) ...
- Real Estate Select Sector SPDR Fund (XLRE) ...
- Vanguard Global ex-U.S. Real Estate ETF (VNQI) ...
- Pacer Benchmark Data & Infrastructure Real Estate Sector ETF (SRVR) ...
- iShares Mortgage Real Estate Capped ETF (REM)
All survey respondents said to expect home-price deceleration in 2023. The U.S. housing market will shift in favor of home buyers by the end of 2023. That's according to 44% of the 107 economists and housing experts surveyed by real-estate company Zillow.Will 2023 be a good time to buy a house? ›
Now, as demand slows, an economist says US home prices could fall as much as 20% in 2023. In addition, a slowing economy overall could bring 30-year mortgage rates back down.Who is buying all of the houses in the US? ›
With prices hitting new highs and many sales going for well over the asking price, buyers were wealthier with a median household income of $102,000. They were also overwhelmingly white, at 82%, and heterosexual, at 89%, of buyers. Just 6% were Black, 6% were Asian, and 7% were Hispanic.Is it the right time to buy a house 2022? ›
But many experts note that, given the ongoing shortage of properties, home prices will still continue to go up in 2022 -- just at a slower pace. Plus, prospective new homeowners have to contend with relatively high mortgage rates, which keep monthly mortgage payments expensive.Is the real estate industry growing or declining? ›
What is the growth rate of the Real Estate Sales & Brokerage industry in the US in 2022? The market size of the Real Estate Sales & Brokerage industry is expected to increase 4.7% in 2022.What is better than investing in real estate? ›
The pros. Stocks are highly liquid. While investment cash can be locked up for years in real estate, the purchase or sale of public company shares can be done the moment you decide it's time to act. Unlike real estate, it's also easier to know the value of your investment at any time.What is a better investment than real estate? ›
You can diversify much more easily with stocks than with real estate, especially with mutual funds. You can buy stocks in several companies, so that if one of them takes a hit, you could still make money on another. Mutual funds carefully choose stocks to ensure that the funds are properly diversified.