The Best Resources For Real Estate Investing
This article’s title has dual meaning: the best resources for money to invest in real estate, and the best resources for learning about real estate investing. I’ll address both, realizing that some of the information is probably not new to you, but other tips may be. If you get something helpful from this article, then great! Mission accomplished.
Resources For Money to Invest
Clearly, money can come from a variety of sources, such as equity from current real estate holdings, savings accounts, profits from a business, bartering property, selling possessions, bank loans, inheritance from Grandma, or OPM (other people’s money). OPM is a popular way to go, as long as clear and written terms exist to protect both parties—you and the other people. OPM implies that other people will allow you to use their money, usually in exchange for a stake or interest in the real estate project, so there is often a percentage of profits promised to the other people. The profits from the real estate property can come from a variety of sources: resale, rental income, or revenue from business activities of the property. The advantage of OPM is that you don’t have to risk your own money, and the disadvantage is the potential for broken relationships if the deal goes bad.
Keep in mind that where strings are attached to the money for real estate investing, it presents possible strife when things don’t work out as planned. Relationships are fragile, especially when losing money is involved, so do your best to avoid borrowing from friends or family.
Resource For Learning About Real Estate Investing
The public in first-world countries are bombarded with advertisements of seminars, books, and CDs that teach us how to become real estate millionaires. “Buy real estate with zero money down,” or “Grow wealthy through real estate investing without quitting your job.” This hype, while possible, is so rare that the vast majority of people who test them find them misleading, to say the least. It takes rare talent, energy, and luck to make either of those two dreams come true. For most of us, the “brick walls” wake us up to the reality that real estate investing is complicated and rarely, if ever, profitable for the beginners.
So, in sorting through the bevy of books by the “experts,” I’ve compiled a list of the best ones.
The Book on Rental Property Investing, by Brandon Turner, is a must-read for people who want to buy and hold properties for rental income. It’s full of takeaways on how to analyze a deal for its feasibility, how to find and keep the right kinds of tenants, why cash flow is so important, and mistakes to avoid. Excellent book.
Frank Gallinelli’s book, What Every Real Estate Investor Needs to Know About Cash Flow is full of smart data on the aspects of accounting when you purchase and operate an investment property. Math is king in this book, and good math will serve you well in real estate investing.
The Book on Estimating Rehab Costs should sit near the Bible if you’re a flipper. It provides detailed information on how to figure the cost and potential return on home improvements, whether it’s a minor face lift or a complete overhaul. J. Scott addresses both interior and exterior renovations.
Mark Ferguson wrote, Fix and Flip Your Way to Financial Freedom. One of Ferguson’s best tips is on how to make sure your contractor does a good job. He is no-nonsense, experienced, and articulate in providing golden information about real estate investing.