First time reading a book on this topic. “There is no denying the incredible role appreciation has played in investor’s lives, but there is also no denying the risk involved in relying on appreciation to make a profit,” especially when the market is appreciating like crazy.2 Cash flow3 Tax savings4 Loan paydown: “You can automate part of your wealth building by simply obtaining a loan on your rental property and using the income from your tenants to pay that loan down each and every month.”Downsides of Rental Property Investing1 Building wealth takes time2 It can be all consuming3 You have to deal with difficult people4 It involves paperwork and bookkeeping5 You can lose your investmentHow Much Money Does One Need to Invest in Rental Properties? So what happens to the earnest money?1 If the sale goes through, the earnest money becomes part of the cash the buyer would be required to bring to closing.2 If the sale does not go through, and the buyer does not have a legal reason to back out, then the deposit is forfeited to the seller.3 If the sale does not go through, and the buyer does have a legal reason to back out, the deposit is returned to the buyer.That is why you might need to include some contingencies in your offer, the two most commonly used are inspection and financing.3 What should the offer include. Prime members enjoy FREE Delivery and exclusive access to music, movies, TV shows, original audio series, and Kindle books. Really helpful and comprehensive introduction to the subject (as best as I can tell)... sometimes a little too much detail of specific numbers and examples but perhaps that would be helpful to look back at. Reviewed in the United States on April 12, 2018. Properties with garages tend to be rented far longer than those that do not.4 Utilities. An all-in-one one might say. The audiobook was great (Brandon was the perfect narrator) but I would like to get a hard copy in the future because there’s tons of lists, math, etc. I would recommend this book to anyone. Five stars, Reviewed in the United States on July 1, 2017. It is given to a third party, not directly to the seller, who is handling the closing. This is a great read and I definitely recommend it for anyone just starting out in rental property investment. (the fine print)4 How much should you offer? I would highly recommend this and other books published by BiggerPockets.com for anyone interested in learning about investing in real estate. If a new roof is needed, and the seller does not want to put one on before closing, could you negotiate the cost of a new roof given to you at closing?10 Possession date11 Items left in the property13 Tips for Successful Negotiation1 Be prepared to walk away. So when you plan to use all cash on your investment, pay attention to the following tips:1 Pretend you are not2 Use entities wisely: At least hide the fact that you own 100% of the property3 Consider financing later2 Conventional loans3 Portfolio lenders4 Private lendersOther creative methods are:1 Home equity: “[Your] equity can be borrowed against at very low interest rates through a home equity loan or home equity line of credit.”2 Partnerships3 Seller financing4 House hacking: “[It] refers to the unique strategy of combining your primary residence with an investment.” This can be done by either:1 A live-in flip: Buy a single-family house with the intention of fixing it up and reselling it within a couple of years.2 A small multifamily property: Buy a small multifamily property (two to four units), live in one unit, and rent the other units out.5 BRRRR investing (aka fix and rent or fix and hold strategy): “It combines the equity growth and quick financing of house flipping with the long-term stability and wealth creation of rental properties… The property is treated like a flip, using short-term financing such as private money, hard money, a home equity loan, or cash to acquire and rehab. However, take into consideration that this CoCROI “does not take into account the fact that the loan is being paid down each month, that the home has some incredible equity build in (since we did a slight rehab on it), and that there may be other tax benefits to go with it, or that would at least minimize the tax we would need to pay on the property.”, CHAPTER 6 INVESTING WHILE LIVING IN AN EXPENSIVE AREAWhen you compare two deals together, take into consideration the “price relativity,” purchase price vs rental income.Long-Distance Rental Property InvestingIt is difficult if not done correctly. The writing style and information within is super accessible, easy to understand, and helped clarify my personal goals and strategies. And just like that, you have yourself a sandwich! Instead he lays out the different options plain and simple and encourages you to do the work to decide what’s best for your lifestyle and skills. If you’re considering using real estate investing to build wealth or obtain financial freedom, this book is a must-read. Such a great piece of rental property investment literature! Inexpensive: Budget-friendly investing books ranging from $6 to $11 are generally paperback editions by lesser known authors. Recommend to anyone looking to investment in real estate or who currently owns real estate. The owner then obtains a refinance on the property to pay off the short-term loan and turn the property into a stable, long-term, cash flow positive property.”, CHAPTER 14 HOW TO GET A LOAN APPROVED, GUARANTEEDThe banker you sit down with (sales guy) is not responsible for approving or denying your loan. Here are 15 of the best real estate investing books, based on Amazon ranking and customer reviews. It isn't some "I will reveal the secret on the NEXT page" book (i.e. The underwriter is. We will determine the cash flow and the CoCROI it represents. There is really nothing negative to say about this book, so I guess I have to give it 5 stars. “Every real estate offer can basically be boiled down to the who, what, where, when, why, and how of the deal.WHO is making the offer and to WHOM?What is being bought and for WHAT amount?WHERE am I getting the funds? Do NOT forget cash reserves to cover any problems you might face. John T. Reed's analysis of Robert T. Kiyosaki's book Rich Dad, Poor Dad Part 4: John T. Reed’s review of Rental Houses for the Successful Small Investor by Suzanne P. Thomas: John T. Reed’s views of various real-estate-investment gurus Part 1: John T. Reed’s views of various real-estate-investment … In reality, many people have found success using many different methods. Some wish it would happen. The following three strategies will help in this regard:1 DIY “Do It Yourself:” The author does not recommend this strategy to new investors.2 Using a Long-Distance Partner3 Turnkey Investing. (the financing)WHEN am I panning to buy it? Solid book. It definitely helped clarify the path and actions I will be taking this year, knowing that my strategy will likely change 5 years down the road. The same does not apply to three- into four-bedroom.3 Ugly countertops and cabinets. Reviewed in the United States on August 17, 2017. Make sure to clean up your mess while its still small, trust me this will make things a lot easier (don't think 'I can't clean this mess! “[It] is an online classified section where it is free to post and free to browse.”7 Wholesalers8 Passion. “Never rely on an agent to make decisions for you.”4 Lender(s)5 Contractors and Handymen6 Bookkeeper7 CPA (Certified public accountant)8 Lawyer9 Insurance Agent10 Property Manager, CHAPTER 5 ANALYZING A RENTAL PROPERTYYou need to understand the numbers and do the math. If you’re considering using real estate investing to build wealth or obtain financial freedom, this book is a must-read. A detailed, step-by-step manual focuses on investing in rental properties and becoming a landlord. ‘Meeting the 2% rule’ means that a property’s monthly rental income must equal 2% of the purchase price or greater.”Monthly Rental Income / Purchase Price = XHowever, the percentage (2%) is not fixed and it depends upon several factors.Steps to Analyze a PropertyStep One: Figure Out Total Project Cost1 Purchase Price2 Purchase Closing Costs: “Included might be loan points, loan origination fees, prepaid insurance, prepaid property taxes, title and escrow fees, recording fees, attorney charges, and other fees custom to your area.”3 Pre-Rent Holding Costs: “These costs will likely be the mortgage, taxes, insurance, and utilities.”4 Estimated RepairsStep Two: Figure Out The Financing and Total Cost Out of Pocket“We [need] to determine how much the financing on this property will cost us each month.” The down payment percentage is based on the purchase price alone. General Real Estate Investing The Book on Rental Property Investing Jan 18 2016, 13:36; Questions About BiggerPockets and Official Site Announcements The book on rental property investing. I anticipate this book to be my number 1 resource for years to come as I start my rental property investing … It is a HOW TO book. It addresses the downsides and issues you will probably run into as a real estate investor right off the bat. Brandon lays the fundamentals down and guides the reader through practically every variable a "wannabe" real estate investor may face. The constant and obvious plugging of the webite and podcast also felt patronizing...we get the message the first time, was it really necessary to keep recommending it on every fourth page? He wrote "The Book on Rental Property Investing," and this handy guide explains everything you need to know about succeeding with rental investments as a means of generating cash flow. I love that he’s so honest and doesn’t just tell you that there’s one right way to do real estate. First, go to the store and buy the ingredients. Gives you good details on many topics that can later be used as reference. “[It] is simply the ratio between rental income and purchase price. An interesting introduction to rental properties. Goodreads helps you keep track of books you want to read. Study and learn. It is “the collection of all homes listed for sale by real estate agents in your area.” The author’s top ten list for getting a great deal on the MLS:2 Direct mail marketing for deals. Acquire assets. Definitely a great resource to go back to in the future. Author also recommends giving people bad deals and over-charging on rent so you can "live for free" - highly unethical in my opinion. Properties and neighborhoods are classified into A, B, C, and D because of their location, which is affected by: Crime, drugs, schools, jobs vs unemployment, population growth, housing starts and building permits, transportation, proximity to local businesses, price-to-rent ratio, vacancy rates, and property tax and insurance rates. Will you hold them to it? The first page of the ebook claims a free audiobook is included, I followed the necessary steps exactly and no audiobook. Reviewed in the United States on May 21, 2017. I give 5 stars! Disabling it will result in some disabled or missing features. There's a chapter on buying in an expensive area, which is particularly necessary for where I live. This book walks you through the numbers which, I think in the end, is the only thing that really matters. Mid-range: These investing books, which start at $12 and run up to $19, are a mix of hardcover and paperback editions. The problem with relying on appreciation is what happened in 2007! First, go to the store and buy the ingredients. I am more than excited to start my real estate journey armed with the knowledge in this book. ‘One of life’s most painful moments comes when we must admit that we didn’t do our homework, that we are not prepared’. The author recommends starting with six months of expenses for each unit you have.To Quit or not to Quit?1 Rental properties build wealth slowly so quitting your job soon through rental properties will be tough.2 Real estate investing can be a job or an investment. ', think 'How can I clean this mess?'). CHAPTER 8 LOCATION, LOCATION, LOCATION! Although almost everything in this book has been discussed in podcasts, blog posts, and BiggerPockets forums, the step-by-step, practical order makes it a valuable read. On protecting yourself with investing in real … I got suckered into their seminar where I did not learn anything I didn't know from the book. You can still see all customer reviews for the product. Certainly some good information in there, however all the other stuff made it a tiresome read. My husband and I are just starting out in our real estate investment business and this book really breaks everything down for you, especially when it comes to calculating your ROI before making a purchase/deal and learning about the pros & CONS of each type of rental property. Will you buy the property “as is”?9 Credits: What about getting credits at closing toward certain repairs that are needed? The book was great and full of knowledgeable information however it was very annoying that just about every other page had an ad within it telling you why you should use/go to BiggerPockets. An incredibly informative book. To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. I also ordered his other two books (Managing Rental Properties and the No Money Down Book-I haven't read those yet however). Very encouraging. Let people know of your intentions. Will certainly refer back to parts in the future. They will help you with the listed properties, not the “for sale by owner” properties. Michael Jordan (yes, that Michael Jordan) once said, “Some people want it to happen. Such a great piece of rental property investment literature! Mold is a fungus that is present almost everywhere especially places with moisture. I would recommend it without a second thought. Good book for the beginner. This is practical and I'll be keeping it on my reference shelf for future reference. Two types exist: Front-end DTI ratio and back-end DTI ratio.6 Loan-to-value ratio (LTV)7 Credit score8 Repayment source9 Experience10 Cash reserves11 Recent credit changes12 Compensating factors. This can help smooth any concerns on the part of the buyer. I have learned so much from Brandon's wise insight into buying, managing, and selling rental properties. Let us know what’s wrong with this preview of, Published CHAPTER 1 WHY I LOVE RENTAL PROPERTIESWhy Rental Properties?1 Ability to purchase with leverage2 Ability to hustle for greater returns3 Ability to manage investment directly4 People always need a place to live5 It has worked for millions of people before6 Fairly stable and predictable7 Incredible variety8 Simple and straightfo, CHAPTER 1 WHY I LOVE RENTAL PROPERTIESWhy Rental Properties?1 Ability to purchase with leverage2 Ability to hustle for greater returns3 Ability to manage investment directly4 People always need a place to live5 It has worked for millions of people before6 Fairly stable and predictable7 Incredible variety8 Simple and straightforward. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. Many stores should have bread, peanut butter, and jelly, but if your store doesn't, just ask around! Maybe it just meshed well with the knowledge I already have and the knowledge I am lacking. Lots quotes that were completely irrelevent and out of context, simply put there to fill the page and wow the reader. LIke this is one of the best real estate books I've listened to. I have read books by other authors where they only tell you about the strategy that they used and they make it sound like anyone who uses a different strategy in a moron. Great book. “Life itself is so extraordinary and unique that the only thing keeping people ordinary is themselves.”, “Let me share with you one of my all-time favorite quotes. Noice I picked up a lot of helpful tips from this. Your mentor should be your friend, not a paid coach.3 Real Estate Agent. It is cheap to convert an ugly old kitchen into a brand new one.4 The bad roof. I highly recommend it. It will not cover the closing costs, pre-rent holding costs, or the repairs. So eliminate the moisture to eliminate the visible mold. The Millionaire Real Estate Investor. Your recently viewed items and featured recommendations, Select the department you want to search in, Great For New Investors Willing to REALLY Learn, Reviewed in the United States on April 12, 2018. I've read this book several times, and I always learn something new. CHAPTER 4 THE TEN MEMBERS OF YOUR REAL ESTATE TEAM1 Spouse2 Mentor/Accountability Partner. Let’s say it is 5% and the property rents for $1,000 per month, “you simply multiply $1,000 by 0.05 to get $50. I have read a lot of useless investment books. If so, who will pay for it?8 Repairs: What do you need the seller to fix before you purchase the property? CHAPTER 3 FOUR SAMPLE PLANSThe author discussed four strategies to build wealth through rental properties. Some of the best investing books … (the closing date)WHY would I back out of this offer? on the other slice. 6 Compartmentalized configuration7 Jungle landscaping8 Junk, junk, and more junkThree problems to avoid in a property:1 Neighborhood2 Foundation issues3 Shared driveways, CHAPTER 11 SUBMITTING YOUR OFFER1 How to make an offer2 The earnest money depositMost earnest money deposits tend to be 1% to 2% of the purchase price. CapEx is almost the same for cheap and expensive properties. What's nice about it is that he really leaves it up to the reader to decide how to best get into the rental property industry. For an experienced investor, Turner's explanations of the minutiae of the business are clear and direct. Changing a leaky roof into a new one is costly but easy.5 M…M… Mold?! The book had a Biggerpockets few good formulas, rules of thumb, and pointers (only reason its not 2 stars) but overall Biggerpockets it was such a tiresome read. I thought this book was actually helpful. When compared with getting a loan: Safe. My husband and I are just starting out in our real estate investment business and this book really breaks everything down for you, especially when it comes to calculating your ROI before making a purchase/deal and learning about the pros & CONS of each type of rental property. A a really good book that helped me realize I don’t want to own a rental property right now. With hours of in-depth advice, The Book on Rental Property Investing imparts practical and exciting strategies that investors across the world are using to build significant cash flow with rental … Try, if you are able, to convert a two-bedroom house into a three-bedroom house. It depends on the financials and the situation. Many people who make peanut butter and jelly sandwiches will be happy to tell you where they purchase their favorite ingredients. It also analyzes reviews to verify trustworthiness. For anyone completely new to real estate investing, all the information might be a little overwhelming. Reviewed in the United States on February 13, 2019. This book did an awesome job of laying out the different paths one could take, outlining the pros and cons of each strategy. He is the Vice President of BiggerPockets, co-host of The BiggerPockets Podcast, and author of four books, including The Book on Rental Property Investing and How to Invest … CHAPTER 10 WHICH PROPERTIES MAKE THE BEST RENTALS?What to look for when you are searching for a rental property:1 Bedrooms. I've read about 8 real estate books thus far and it's either #1 or 2 on my list. His podcasts are great and he gives the impression of a great person. Some wish it would happen. Since then I've emailed them multiple times for an answer even including my order number without so much as a reply back. Next, spread the peanut butter on one slice and the jelly (some call it jam, but I prefer jelly!) He is Vice President of BiggerPockets, co-host of The BiggerPockets Podcast, and author of four books, including The Book on Rental Property Investing and How to Invest … Gary Keller provides both first-time and seasoned … turner brad. Brandon literally educates you on almost every aspect of being a real estate investor then dives deep into step-by-step instructions on every aspect of investing. This was a very clear covering of the whole process of rental property investing, without going too far into the logistics and paperwork. CHAPTER 9 HOW TO FIND RENTAL PROPERTIESThere are eight different ways you can find investment properties:1 The MLS, or Multiple Listing Service. I appreciate this book because it's realistic. … The Book on Rental Property Investing, written by real estate investor and co-host of the BiggerPockets Podcast Brandon Turner, contains nearly 400 pages of in-depth advice and strategies for building … Tenants will not take care of large yards efficiently.6 Parking7 LocationEight Problems [the author] look[s] for when shopping for a property that help him get a better deal:1 The bigfoot smell. Having a cleaning system will set you up for long term success. As one of the books we will present to you now is the > Free Pdf The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Intelligent Buy & Hold RealEstate Investing… Announcing the Winners of the 2020 Goodreads Choice Awards. We’d love your help. The cover of this book says … However, the more leverage you use, the greater the risk you may be taking. The Book on rental property investing review is incomplete without a mention of the way it can wrap up. So think "How secure you are" instead of "What is the percentage of leverage."Reserves? I then contacted Bigger Pockets support who seemed very helpful at first, asking for the email to my account to verify. Thanks Brandon! Others make it happen.”. I recommend this book to those who are interested in generating wealth through the age-old method of rental property investing. So, to get your loan approved:1 Find the banker (sales guy) who is creative and who will fight to get your loan approved. Dec 15 2015, 16:52; Real Estate Guru, Book & Course Reviews and Discussions The book on rental property investing … “[It] is a loosely defined investment strategy in which the investor buys, rehabs, and has a property managed through a third party, usually from a long distance away.”. However, there are two ways to live off your cash flow, there are two ways:1 The “cash flow per door” method. Also, Brandon Turners gets very excited about real estate and that excitement is contagious. It doesn't make rental property investing seem easy or a "get-rich quick" scheme. but this was so great and super useful. Every question I could possibly think of was answered in this book! The author states the obvious over and over as if he's speaking to an 8 year old. Rich Dad/Poor Dad). As this book quotes from Michael Jordan, "some people want it to happen. It isn't some get quick rich scam. 232 reviews. Then, after the property is finished, it is rented out to a tenant. Total Project Cost – Loan Amount = Total Cash NeededStep Three: Calculate the Monthly Mortgage PaymentUse a mortgage calculator. Which do you want? This is the amount you will want to include for your vacancy expense each month.”Repairs: The author assumes repairs to cost around 5% to 15% yearly.CapEx: Estimate how many years the expensive “big ticket” items will last and how much they will cost and then divide these out by the number of years. You will live off and lose the second wealth generator, cash flow. With nearly 400 pages of in-depth advice, The Book on Rental Property Investing imparts practical and exciting strategies that investors across the world are using to build significant cash flow with rental … I like a book that bends more to the practical rather than the get-rich-quick. I think the book is specific to US or countries with a similar state of financial and real estate markets, and also fiscal policy. By … The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing (BiggerPockets Rental Kit (2)). Turner has been doing it a long time with a lot of properties so it is great having someone that likes teaching going through their personal experiences and allowing you to learn from successes and mistakes.