Everyone has dreamed, at one time or another, of owning real estate and living off of the rental income. Being a real estate investor can be a rewarding path to pursue. Real estate investing is a great hedge against any volatility that you may experience in the stock market or other investment areas. Real estate is also a big investment.
There is much to learn about the real estate market and potential investors should not take a casual approach to getting into this field. There is much to learn and reading books about real estate investing is one of the many ways to learn the nuances. There are many worthwhile books that are on the market pertaining to real estate investing. These books delve into the many types of investments and the specifics of each type. This article will look at seven of the best real estate investing books available to first time investors. A synopsis of each book is below.
The Millionaire Real Estate Investor by Gary Keller
In “The Millionaire Real Estate Investor,” Gary Keller, expounds upon the wisdom that he gained from more than 100 millionaire real estate investors. The book is one of the best real estate investing books especially for beginner investors. He breaks down the detailed steps to becoming a millionaire investor so you can take action.
The beginning of the book addresses common myths that all first time investors encounter. The author debunks these and then builds a thesis throughout the book on what it takes to become a millionaire investor. He states that this begins by “thinking like a million.” With nurturing of the mindset, a real estate investor must think big and have big dreams. Gary Keller states that an investor must have a plan that encompasses his net worth, his or her reasoning for wanting to invest, and an action plan. He then discusses the need for a budding real estate investor to “buy a million”.
Gary Keller wants investors to know that money is made when properties are bought and not sold. Properly valuing a property and paying below market for a property is the first step in becoming a millionaire. The book then discusses “owning a million.” In short, this means that the income from the property should be used to create equity. Lastly, the author states that an investor must “receive a million”. This is when you reach the top of the mountain and actually get passive income from the property. Your property is now working for you. This is a must read for any beginning investor.
The Book on Rental Property Investing by Brandon Turner
“The Book on Rental Property Investing” has about 400 pages of in-depth and enriching advice about building wealth through rental properties. This book is a comprehensive guide that provides key information on searching for properties, using leverage to purchase properties, choosing the right tenants, and managing several properties.
Important Real Estate “How To’s” That You Will Learn
- How to Build an Actionable Business Plan
- How to Find and Source Deals
- How to Analyze and Underwrite Properties
- How to Build a Vertically Integrated Team
- How to Finance and Leverage Rental Properties
The author, Brandon Turner, provides tons of practical advice from start to finish. This book is strategically written to walk a real estate beginner investor through the process of building considerable cash flow from rental property investments. The author’s one goal throughout the book is to give you everything that you need to become a millionaire rental property investor.
What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli
Author Frank Gallinelli makes a simple premise in this book. He suggests that investors can increase their chances of making a successful purchase by learning and using a few significant financial calculations. He begins the book by laying the foundation for beginner investors by going over some basic investment concepts used throughout the guide. The various chapters in the book each look at specific mathematical calculations related to property cash flows.
The Most Important Real Estate Cash Flow Calculations
- Discounted Cash Flow
- Cash-on-Cash Return
- Net Operating Income
- Capitalization Rate
- Gross Rent Multiplier
- Net Present Value
- Payback Period
- Mortgage Amortization
This essential book is a must read for any investor that wants to make a decision that is based on financial calculations rather than emotions. By the time you are finished with this book, you will be able to answer these practical questions that every landlord should know:
- What is a real estate investment property worth today?
- What kind of cash flow can I expect from an investment property?
- Which real estate property is the best investment for me?
- How do I calculate my return on investment?
Buy, Rehab, Rent, Refinance, Repeat by David Greene
David Greene is a former police officer who made the shift to become a real estate agent and investor. This book discusses the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) investment strategy in comprehensive detail to help beginner investors build a real estate empire within a relatively short time-frame.
How to Execute the BRRRR Method:
- Buy undervalued subject property with own capital or other people’s money (OPM)
- Rehabilitate and renovate subject property
- Rent out newly improved subject property
- Refinance subject property to pull initial capital out (and possibly more money due to the increased value of the property from forced appreciation)
Throughout the book, David Greene shares how investors with limited capital can purchase investment properties. By the time you are finished reading, you will be able to locate properties, make acceptable offers, increase property values, identify emerging markets, and build a talented team for your budding real estate empire.
How to Invest in Real Estate by Joshua Dorkin & Brandon Turner
This book is a another essential guide on how to get started in the real estate investment business. This is not the traditional investment book that will give you the “secret sauce” to real estate investing. Instead, this book is packed with several dozens of real life stories and examples of what current investors are doing to be successful in today’s market.
What’s Inside “How to Invest in Real Estate”
- Guide to Investing in Real Estate (even if you have a full-time job)
- LLC’s, Corporations, and Other Tax Entities Explained
- How to Earn More Money from Your Main Hustle & Side Hustle so you can Invest into Real Estate
- How to Get Your Significant Other to Support Your Real Estate Dream
- Comparing the 8 Different Property Types
- How to Build & Preserve Wealth with 11 Critical Strategies
- 28 Ways Real Estate Veterans Find & Source the Best Deals
- Creative Deals Structures to Finance Your Acquisitions
There is no specific reading ranking in my book recommendation. However, “How to Invest in Real Estate” has a significant number of reviewers recommending this should be one of the first books you read when begin your real estate journey. It really does seem to be “the Ultimate Beginner’s Guide to Getting Started.”
Crushing it in Apartments and Commercial Real Estate by Brian Murray
The author, Brian Murray, went from school teacher who turned his real estate side hustle into his main hustle. This starter guide to investing is gleaned from the author’s bootstrapping days as a new investor. This book is for real estate investors of all levels of experience whether you are focused on residential investments, commercial investments, or both.
Brian Murray’s Steps to Invest in Apartments & Commercial Real Estate
- Creatively finance & source commercial real estate properties
- Grow a low leverage real estate portfolio without outside investors
- Leverage your private investor status to beat out institutional competitors on deals
- Uncover hidden value to increase profits and keep expenses low
Brian Murray has done an amazing job with this guide and allows any aspiring investor to feel like they can break into the world of commercial real estate. I believe this book is helpful for investors looking to level up into their first fourplex and even investors trading up to 20-units.
The ABCs of Real Estate Investing by Ken McElroy
The ABCs of Real Estate Investing is an easy read and full of facts that the aspiring multi-family apartment investor should embrace. Just like the previous books in this list, this book discusses various formulas beginner investors can use to analyze properties for moneymaking potential. Ken McElroy also dives into analyzing profit and loss statements and how to put together an qualified investment team.
Common Real Estate Investing Myths from Ken McElroy
- You must be wealthy to invest in real estate
- You have to start on small deals before you can get to big deals
These are just two of the myths that Ken McElroy debunks in the book while he discusses the tried and true strategy of buying and holding rental properties to build wealth. The author encourages investors to have a goal that is measurable and realistic. He stresses the fact that investors should be accountable to someone and be consistently focused on the end result.
Conclusion
As you can see, these are some of the best real estate books for investors. Real estate investing is not just about finding or negotiating good deals. It is about being the the most educated and well-rounded investor that you can be. Investors realize that deal-making opportunities are often difficult to control. However, the most disciplined real estate investors react to those situations with ease as they have read about or experienced similar situations previously. I had to learn all of these lessons too, and that’s why all of these books have passed by my bedside table (also in my Audible and Kindle nowadays lol). Take some time to read the books presented in this article and they will help you become the best investor that you can be!
Before you go, check out my other list sharing the 10 Best Books for New Real Estate Agents