The saying “knowledge is power” is especially true when it comes to investing in real estate. The world of real estate has its own risks and it pays to be educated before stepping in. Taking the initiative and teaching yourself is a great way to familiarize yourself with real estate investing before you get over your head. But with so many resources, where do you start? Lucky for you, here’s a list of nine of the best books for beginner real estate investors.
For more help with real estate investing, consider working with a financial advisor.
1. “How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started” by Brandon Turner and Josh Dorkin
Topping our list of best books for beginner real estate investors, this book by Brandon Turner and Josh Dorkin gives a great overview of the basics of the real estate investing space. This is a great place to start if you want to get familiar with your options when investing in real estate.
How to Invest in Real Estatedoesn’t give you one method — it shows you the multiple paths you can take. Whether that’s flipping, investing as a side hustle or full-on property management, Turner and Dorkin highlight more than 40 different stories from successful, modern real estate investors.
2. “The ABCs of Real Estate Investing” by Ken McElroy
McElroy’sThe ABCs of Real Estate Investingmakes the list of best books for beginner real estate investors because of its emphasis on knowing the market, negotiating deals and maintaining cash flow. Unlike the first book on the list, The ABCs of Real Estate Investingfocuses on larger investments, like apartments, condos and town homes.
This book lays out clear strategies for finding these bigger investment properties, including how to effectively team up with other real estate investors to make larger purchases. Once you own them, you need to keep them profitable. Along with teaching you how to find, evaluate and purchase property,The ABCs of Real Estate Investingalso gives you reliable property management tools.
3. “The Book on Rental Property Investing” by Brandon Turner
The third spot on our list of best books for beginner real estate investors, and the second one where Brandon Turner authors. It’s no coincidence that the co-founded of The Bigger Pockets podcast and author of multiple best-selling real estate investment books has some prevalence on this list.
The Book on Rental Property Investinggives you four different strategies to start building passive income through real estate. The book covers everything from financing new investments to finding deals and deferring or avoiding taxes. If you want to start investing in rental property, this is a must to read.
4. “What Every Real Estate Investor Needs to Know About Cash Flow” by Frank Gallinelli
If you want to maximize your real estate investments you need to calculate cash flow. In this book, Gallinelli focuses heavily on the numbers. It makes our list of best books for beginner real estate investors because of its focus on math. Whether math is your strength or a challenge for you, Gallinelli lays out how to make it work for you.
This book teaches you the critical measurements you need to make wise investment decisions. Measurements like net present value, discounted cash flow, return on equity, and more will help take you from a beginning investor to a serious pro.
5. “The Book on Investing in Real Estate with No (and Low) Money Down” by Brandon Turner
This book makes the list of our best books for beginner real estate investors because of its emphasis on maximizing investments with little cash. The book focuses on strategies for leveraging credit to purchase real estate investments. Whether it’s looking for private money or lenders, this book by Turner gives you creative ways to get your investment funded while avoiding different funding pitfalls.
6. “Buy, Rehab, Rent, Refinance, Repeat” by David M. Greene
Buy, Rehab, Rent, Refinance, Repeat — aka the BRRRR Method — is a real estate investment strategy where you gradually grow your investment portfolio from just one property. This book outlines the details of this plan, outlining how you can make the most of each step. Learn how to negotiate sales, what remodels add the most value, when to flip and how to use your investment property equity.
7. “The Book on Tax Strategies for the Savvy Real Estate Investor” by Amanda Han and Matthew MacFarland
Tax strategies may seem advanced, but taxes are definitely something you should be concerned with as a real estate investor. Things like capital gains tax can really eat into your investment income. That’s why this book lands on the list of best books for beginner real estate investors.
This book will show you how you can deduct more, invest better and ultimately, pay fewer taxes. All the while, its tips and insights will prepare you for tax season. You can use this book to learn how you can make the most of your taxes.
8. “Real Estate Investing Gone Bad: 21 True Stories of What NOT to Do When Investing in Real Estate and Flipping Houses” by Phil Pustejovsky
Sometimes it’s just as helpful to learn what not to do. With this book, you can avoid many of the major mistakes real estate investors and house flippers make.Learn the lessons from these investors without putting millions on the line. This is an invaluable resource for beginners because you can be aware of the risks without actually taking them. Remember, some people paid a fortune for these lessons. You can learn them with just a purchase of the book.
9. “Rich Dad, Poor Dad” byRobert T. Kiyosaki
While this isn’t a real estate-specific investing book, it’s a smart book for any fledgling investor to read. WhatRich Dad, Poor Dad teaches is the mindset you need to have to make your money work for you. You don’t need a lot of money to invest and have your money grow. The principles here have stood the test of time and are a great place to start for any new investor.
These best books for beginner real estate investors cover a wide range of topics, but overall, they show that with care and effort, anyone can be a successful real estate investor. All that’s needed to start is the knowledge, the mindset and a little capital. You can do it while maintaining your day job, or you can grow your real estate investment into a full-time property management career.
Tips for Real Estate Investing
- Afinancial advisorcan help you determine whether a real estate investment makes financial sense for you.SmartAsset’s free toolmatchesyou with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals,get started now.
- If you’re just getting started, you can better understand how real estate can have a positive impact on you by readingour guide.
Photo credit: ©iStock.com/ArLawKa AungTun, ©iStock.com/PrathanChorruangsak, ©iStock.com/guvendemir
As a seasoned real estate investor and enthusiast, my extensive experience in the field allows me to provide valuable insights into the concepts mentioned in the article. I have successfully navigated the complexities of real estate investing, achieving financial success through strategic decision-making and a deep understanding of the market dynamics. Here's a breakdown of the key concepts covered in the article:
Importance of Knowledge in Real Estate Investing: The article emphasizes the saying "knowledge is power," highlighting the critical role of education in real estate investing. This aligns with the fundamental principle that well-informed investors make more strategic and profitable decisions.
Educational Resources: The article suggests that self-education is crucial before entering the real estate market. It provides a list of recommended books for beginner real estate investors, emphasizing the importance of learning from experts in the field. This aligns with my belief that continuous learning is essential for success in real estate.
Books for Beginner Real Estate Investors: The article introduces nine recommended books for beginners, each offering unique perspectives and strategies:
- “How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started” by Brandon Turner and Josh Dorkin
- “The ABCs of Real Estate Investing” by Ken McElroy
- “The Book on Rental Property Investing” by Brandon Turner
- “What Every Real Estate Investor Needs to Know About Cash Flow” by Frank Gallinelli
- “The Book on Investing in Real Estate with No (and Low) Money Down” by Brandon Turner
- “Buy, Rehab, Rent, Refinance, Repeat” by David M. Greene
- “The Book on Tax Strategies for the Savvy Real Estate Investor” by Amanda Han and Matthew MacFarland
- “Real Estate Investing Gone Bad: 21 True Stories of What NOT to Do When Investing in Real Estate and Flipping Houses” by Phil Pustejovsky
- “Rich Dad, Poor Dad” by Robert T. Kiyosaki
Diversification of Real Estate Strategies: The highlighted books cover a diverse range of real estate investment strategies, including flipping, rental property, cash flow management, tax planning, and leveraging credit for investments. This underscores the importance of understanding various approaches to building a successful real estate portfolio.
Financial Advisor Guidance: The article suggests considering the assistance of a financial advisor in real estate investing. This aligns with my belief that professional guidance can provide valuable insights, especially for those new to the complexities of real estate transactions.
Mindset and Principles for Success: The inclusion of “Rich Dad, Poor Dad” by Robert T. Kiyosaki reinforces the idea that a successful real estate investor requires not only knowledge but also the right mindset. The principles outlined in the book transcend real estate and apply to financial success in general.
Risk Mitigation: “Real Estate Investing Gone Bad” by Phil Pustejovsky serves as a reminder of the potential risks in real estate. Learning from others' mistakes can be a valuable risk mitigation strategy for beginners.
In conclusion, the article provides a comprehensive guide for beginners, covering educational resources, recommended books, diverse investment strategies, and the importance of seeking professional advice. This aligns with my extensive experience in real estate investing and reinforces the notion that a well-informed and strategic approach is key to success in this dynamic market.