Top Real Estate Investing "How-To" Books

The title should say, "These are the books with the most thorough content that I have read as of today...though I, admittedly, have yet to put much of their great wisdom into practice."

Even though I am leaving the starting gate of real estate investing like the tortoise, I am convinced that I have collected some of the greatest educational resources available. This is a relatively short list of books. (Which, if you had intended on buying everything on my list, should leave you very relieved.)

I have read quite a few books and these are the ones that I always return to. (I didn't even realize that my list was so short. My wife will be happy to hear that! Now, I suppose, she really can take the countless others in to trade at the bookstore.)

I also want to note that, though these books may have amazing content, some/most of these books lack basic literary editing. So, if you are looking for books that are concise and are well written from an English Major's perspective...maybe you're looking for edification in the wrong career.

I would be honored to hear your comments about these books and/or share the names of any additional book(s) you feel helped you along your journey through the labyrinth of real estate investing. (I'm sure that I've left out quite a few favorites.)


Allen, David. Getting Things Done (2003)

Botkin, Sandy. Lower Your Taxes--Big Time (2003)

Butler, Mike. Landlording on Autopilot (2006)

Clason, George S. Richest Man in Babylon, the (1988)

Gerber, Michael E. E Myth Revisited, the (1995)

Hill, Napoleon. Think and Grow Rich (1983)

Keller, Gary. Millionaire Real Estate Investor, the (2005)

Langemeier, Loral. Guerrilla Wealth (2004)

Mandino, Og. Greatest Salesman in the World, the (1985)

Schaub, John. Building Wealth One House at a Time (2005)


I look forward to reading your favorites!

Bad Loan Officer Kills ANOTHER Deal

On the standard residential real estate sale side of life there are two things that will kill a deal. One is a bad property inspector. Hear me out, every home is flawed to some degree. I have absolute respect for the home inspector who does the job well and leaves no crack un-documented.

What I do not have tolerance for is the home inspector who tells their client (be it buyer or seller) that every documented item on the list, no matter the severity of the issue, must be addressed in order for the property to be fit for sale. But, this is an issue I will expound upon at a later date. Today, let me share my thoughts on the second deal killer.

To err is human. What was omitted from that great saying was that those with the highest propensity to err are mortgage brokers.

I really don't know where to begin this rant. I realize that mortgage brokers get paid according to their production volume. What I don't understand is, if they cannot get a deal to close, how they get paid at all? And, why is it that there are so many of them? Most importantly, why are so many buyers suckered into working with these mortgage brokers that have a very public track record of closing no better than 1 in 10 deals that they have "pre-approval letters" for?

I have full confidence that if a mortgage broker tells me that "we can get this deal closed in 2-weeks" my poor listing client has no chance at all that this buyer will be able to qualify for a loan. It has to be some kind of secret code phrase for bad lenders. Every time, without fail, when I have heard these words uttered to me by a mortgage broker one day before our scheduled closing (here comes another secret code phrase) "the underwriter is having trouble with the appraisal". Never mind that the property has been intentionally undervalued with the intention of attaining a "quick" sale.

The real question, though, is why do I allow my sellers to go through this heart ache? I am honest with my clients. I let them know that when a buyer puts an offer on their home for 110% of list price and my sellers still manage to only see a net offer of 82% that something might be a little off and that this loan package might not come together. (Even though I have been told by the mortgage broker, "Close in 30 days? Hah! We'll get this deal closed by the end of next week.)

But, my poor sellers see a contract offer and with it a light at the end of the tunnel. It's so hard for them to turn away even the slimmest of chances. That is until the day of closing and we are sitting at the title company wondering why the lender hasn't arrived yet. And, by the way, didn't they say the loan figures were coming over the fax...3 hours ago? Hey, why am I getting a "this number has been disconnected" message when I call your mortgage brokers mobile number?

Exciting news

I am pleased to announce that my new website collaboration is open to the public. SecondRateHomes.com now has content. Now, don't let the name fool you. We are not marketing junk on this site. What we have done is taken an entire real estate market and searched for the best deals, we locate the properties that are undervalued and overlooked and place them front and center for everyone to see.

It's my intention to turn this page into a top resource for real estate investors in the Metro East. We are offering free advertising to anyone who wants to market their properties for sale, rentals that are vacant, handyman services, mortgage services, and whatever else.

As we move into the next stage we will also be offering investors useful tools like deal calculators, and a renter brokerage to help you get your place rented faster, cheaper and with a higher quality tenant.

So, please drop by and leave a comment...and subscribe to this post while you're at it. You'll find first rate values at SecondRateHomes.com

Find the Best Deals on the Market for Free!

I'm out searching the web for some innovative ideas to expand my real estate business. I type in keywords that I hope will lead me to blogs and articles with new thoughts and creative finds. I hope to discover content that inspires hope and uncovers opportunities that will foster ideas that lead to great rivers of revenue and endless investment cash flow.

All that I find are sales pitches offering me their over priced products with 100% satisfaction guarantees or (worse yet) the doom and gloom of the media's spin on our current real estate market.

Well fellow investors, I'm here to fill the gap. Help me spread the word, the real estate investment market is golden and opportunities are everywhere. And, for all those who have your credit cards out, you don't even have to pay to find the best deals. They are right in front of you, they are on your street, they are on your MLS and your agent has them right in front of her. The only thing holding you back is that you have to know what a deal looks like.

I looked at the MLS with a client recently and found over 10 deals in one area that have just been sitting there waiting to be snatched up. I never knew they were there before because I didn't know what I was looking for. (Now I do. And my client not only picked up a deal but picked it up for 76% of the list price...and it was a great deal even at list price!)

So please, don't buy the next product on short sales, pre-foreclosure, foreclosure, reo, discounts off the list price, assuming loans, subject to, lease option, lease to purchase, assigning the deed, bond for deed, investment software, vacant homes, discount lists, email tools, marketing flyers, postcard systems...(deep breath). You already know all that you need to know. All you have to do is gather up your courage, set out some buying criteria and make sure you are managing your finances. (So, if you are currently using the "I've got checks left in my check book so I must have money left in my checking account" system, you do not currently qualify. You need to contact your local community college or H&R Block for some inexpensive or free classes...and that's OK! You've got to start somewhere. And it's a heck of a lot better than paying for some $6,975 seminar to train you how to use the special book keeping system that will earn you $3/hr invested or your money back, guaranteed.)

So, if you're qualified, set out your very basic list:
I want to make $200/month on a rental.
I want to start earning that by the 12th day of next month because it's my daughter's birthday.
I have $15,000 in cash.
I want the property to be within a mile of my house.

That's it. It's a very small list that you will expand upon as you move forward. The important thing is that you're ready to go!

The next step is to find out what homes are renting and selling for in that area. Look in the paper for rents. Call an agent for listings. Drive the neighborhood. Walk the neighborhood. Take a look at some listings. If you find a street you like, go knock on some doors! Eventually you will find a seller. (Especially if you are serious about that deadline...because you promised you're daughter that she'll get the first months cash flow for her birthday present.)

Don't buy a course. Don't watch TV. Don't surf the web. Just decide what you want and go look for the thing that fits...because it's right there. You know enough to at least get started. Go talk to an agent and join a real estate investing club. You might even find that another investor has the exact property you are looking for.

Deals speak for themselves and they are on almost every block. Stop wasting your time and start making some investments. And if you feel like you have to pay thousands of dollars for this sage advice, feel free to drop me a note. I accept paypal.

Don't Get Sued

There are so many things in life that we can spend our time on. As a free people (arguably) we are given the right to pursue life, liberty and happiness. Why is it then that we so frequently find ourselves pursuing the absolute opposite? (Am I the only one?)

Have you ever been in a position where it seems that your mind is running wild? Have you been at that place where it seems there is nothing you can do to derail the collision course that your mind has plotted with a full-on panic attack? Let me tell you about my most recent discovery on how to make yourself an insomniac.

Did you know that in order to sue someone you only have to go to the courthouse, pay some filing fees and send your unsuspecting victim a summons in the mail? (I'm sure that I've simplified the process a bit, but surely not by much.) You need no justifiable reason to file, just some cash to feed the county. (So, if you've got someone you want to play a nasty prank on and want them to go and pay some defense attorney a fatty retainer for a case that you never intend on showing up for, here's a great opportunity.)

Let's just say you are that lucky guy who gets the certified letter in the mail telling you to cancel all of your appointments and to strap yourself in for a months worth of days of anxiety attacks that lead up to your big day in court. What's next? Where do you go, what do you do, who do you get advice from? Oh yes, that's the other nice thing about getting sued; there's no one who really knows what is going on. I've talked with judges, clerks, attorneys, sheriffs, plaintiffs, friends and strangers and no one seems to know how the process goes exactly. (This includes my attorney...who filed the wrong form on my behalf. Thanks!)

I have found, though, that the more questions you ask, the more frustrated people get. I had the privilege of witnessing a woman, who was at wits end trying to figure out where she was supposed to go inside the maze of the county courthouse, receive a chastising from a deputy of the law because she was 15 minutes early and at the wrong end of the hall. (I'm sure she performed like a champ at her hearing.) It seems the only people willing to answer your questions are your paid legal counsel. And they are happy to talk with you...all day long...while the say nothing about their hourly fee. (Did you know that you can be charged a flat fee based on an hour worth of work for a basic email asking a "yes/no" question? I do now.)

In the end, I sit playing out an episode of a Shark court case in my mind, arguing my innocence, wondering why I'm being accused of this ridiculous claim in the first place and thinking all the while I'll probably be found guilty because I didn't wear a tie and I forgot to address the Judge as "Your Honor".

My tip for the day: Don't get sued. It's really a bother.

Five Steps to Overcome Screwing Up

I have devoted an enormous amount of time and effort (mostly time) to learning. What on earth went wrong?!?

I think I am a learning addict. I could sit for hours on end and watch people tell me how to become the next millionaire, scuba instructor, mountain climber, business owner, basket weaver, chef.... I can watch it on TV, at a seminar, in my office or even at the drive-thru.

I guess I just like to be told that I already have the power inside to do things. (Lots of things apparently.)

In reality, a person can do pretty much anything. Our limitations are mostly hampered by what we decide we want (or believe we are able) to do.

Here are five steps I have used that have picked me up off the sofa and started me on my way.

Discern, Decide, Act, Measure and repeat. (I guess it's only four steps.)

Discern: First you have to know what it is you are looking to accomplish. Identify your objective. Before I started my career in real estate I had no clue which business field I wanted to pursue. I looked into returning to college to get a masters degree. I investigated retail sales. I looked into franchise opportunities.

I placed all these opportunities out in front of me and gave them all a fair try. I weighed the advantages and disadvantages. I discussed them with my family and friends. I gave myself a deadline to make a decision. (It is a critical piece in the process to have a time frame in which to get this all accomplished.)

Decide: From the pile of options, select the one that seems to have the greatest potential. The good part is that It doesn't matter if it is the right one or not. (The mistakes take care of themselves in this process.) I grabbed the one that seemed best and told some people about my decision. "Hey dad, I'm going to get involved in real estate!"

Another bonus, it doesn't matter if the people you tell like your decision or not. (It's always nice to have support, but it's not essential.) The goal here is that I've just made it apparent to others that I am making some decisions. (Congratulations!)

Now I've created an expectation and invited some watchful eyes to see that I am actually doing something.

Act: Nothing else to do now except something. DO SOMETHING! The great part about this step is that you only need to do one thing. You don't have to achieve your goal in this step, just do something.

My goal was still amorphous at this time. All that I had decided on was to have a career associated with real estate. All I had to ask now is "What will get me one step closer to that?" Pretty much anything.

I acted by surfing the web for license laws in my state. Boom! Done! I didn't own a 4-plex. I didn't have my license. I wasn't even scheduled to take any courses. I just did some web surfing and I had completed my action goal. And it was so easy.

Measure: This step is as much about celebrating as it is anything else. Through these last steps you just made some big strides away from where you were and have firmly relocated yourself to the place where you are right now. This step is all about letting you know where, exactly, you have relocated yourself to.

What direction did those choices and research take me? Am I closer to my goal?

Even if you're not, you can still give yourself a big pat on the back because it's likely that you just did more in these last three steps to improve your personal situation than you have done in the last 3 years. (Good for you!)

Discern: You've moved through one full cycle of the process towards accomplishing a new goal. This time the discerning step is to figure out if this is the right direction or if you would prefer to go back to that original pile of ideas...or take what you've learned and start a new pile. Then move on to the next step.

Do you like where you are in relation to where you were before? Do you still like your goal?

Here's a wrap-up of the entire process from my example:

I discerned my possible options for a career.
I talked with trusted people about my opportunities.
I decided to move towards real estate.
I told some people about my decision.
I checked out license information on the web.
I reviewed my progress thus far and see where I've landed.
I discern again, is this good or bad? Do I like what I've found?
Yes, I do!
I decide a next action.
I take the step.
...and so on.


What I love about this process is that it takes me forward to do things I wouldn't normally do. Partly because it is more of a game to me and partly because I make it a point to tell people about what I'm working on now. (It's amazing how other people keep tabs on my progress.) What's great is that even when I decide to go a new direction I always have confidence in that new path because I've used a system that allows me to try new things without feeling like I've wasted my time or just plain screwed up.

I want to buy investment property!

In the last 5 years I have heard so many people shout that statement. "I want to buy investment property!" Like it's something that's done over a lunch break. Of all the people who have uttered these words, probably about half have acted on their statement. (Myself included in the...we'll call mine the slow performing half.)

For those who were daring, crazy, stupid, lucky or just plain smart...it is an exciting thing to see a new investor make that commitment and pick up their first property or two.

The killer is when you see the excitement slip away and, as the panic starts in, they realize that they have no clue what they have just stepped into. "How do I SELL my investment property?!?"

I don't know how you respond when you hear about some newbie investor who just walked away from their first closing with more in their pocket than you cleared all year at your 9 to 5 (that you are desperately trying to justify leaving if only to make 1/10th of what that guy just cleared). I hope you agree, though, that seeing a once zealous newbie investor fizzle, struggle and possibly fail is depressing. (Especially if you happen to be that newbie.)

What amazes me is that there are deals out there to be had. The market is full of possibilities for landlords...even quick turn rehabbers. As an agent, I see the successful investors quite frequently. They've got the mastery of this thing called REI. They shock me with the deals they get when they buy. They shock me with the prices they sell for. Even on the deals that seem to go sour there is "lemonade being made" somewhere. I'm told to make your money when you buy, not when you sell.

So here's my question: How does an investor KNOW when they've got a deal?

The simple answer is calculations. The long answer is....

The long answer begins by determining what tools you have to help you locate the answer. I've got some great tools! I've got access to the MLS, a data savvy friend and a handful of investors who want to find more/better deals.

It looks like I'm on my way. And, as the calculations are refined, I'll be happy to share my findings with you. Because, just like you, "I want to buy investment property!"