Which Book First?

Question

Good morning, Milwaukee/West Allis! I have just started looking through MLS and find multi family properties to analyze. I believe I am the definition of newbie. The great thing is I am not alone! I have two partners who are starting out with me. We each have basic property management experience and financial info. The area in Milwaukee where we are looking is Brewers Hill, Brady Street, and West Allis. Each area we are familiar in. I could ramble on about how I want to live the dream with a huge portfolio but that's not my year goal. This year I would live to learn, analyze, and find deals. Would anyone be able to send me the link to the REIA Milwaukee? What was the first thing you did to start off in real estate and how did it go? Thank you all for listening. I can't wait to make a deal with you. On a side note, should I read RICH DAD, POOR DAD first or REAL ESTATE INVESTING? Doug

Account Closed · Answer

@Doug Saugstad Welcome to BP Doug! I agree with all the other posts about having the right mindset and learning the appropriate investing terms/concepts that will help you make the best decisions. Like you, I'm early in my journey and understand the newbie feeling. I'll add one recommendation to the list though and that is Grant Cardone's book ... The 10X Rule. It think it is one of the best combinations of mindset and kick in the pants to take action. If you decide to get it, highly recommend the audio version...and just keep it on repeat (can you tell I like this book yet? lol). I've read Rich Dad as well...and it was good...but I'd just go straight to 10X Rule for mindset/motivation while studying your terms/concepts & networking so you can quickly turn all that motivation into action. Happy investing!

Christopher DeFronzo · Answer

I'm in a similar situation to you, I just got started maybe 4 or 5 months ago after a friend introduced me to the BP podcast. I read Rich Dad Poor Dad probably 10years ago while I was in college and I just remember it being a mindset book and at the time I was a little let down that it didn't provide me a roadmap on how to become rich. I realize now that that's not what the book is meant to be but it's meant to inspire and open the mind to an unexplored avenue that can get you mentally focused beyond the rat race. This may be a good place to start but it's just one piece of the puzzle. I read the following books & followed the following path in the last 3 months or so & have just gotten pre approved & I'm viewing properties on the mls with my REA currently. 1. I listened to BP podcast 2. Watched one of Brandon's webinars about getting started (this motivated me to get pre approved the next day & call a friends REA!) 3. I read the UBG 4. I read Brandon's book "The Book on Rental Property Investing" 4. I read Brandon's short book " How we Bought a 24 Unit Apartment Complex For No Money Down" 5. I read Perer Harris' "Commercial Real Estate for Beginners" 6. Currently reading Dale Carnegie "How to Win Friends & Influence People. 7. Currently reading J. Scott's Book on Estimating Rehab Costs. (Dry read, more of a reference book). Seems excessive maybe but I've been flying a lot lately with time to kill. I definitely wanted to have a good base and know the "lingo" before I started interacting with agents & sellers although probably not necessary as I have found seller agents to be either really good or really bad and my buyers agent is OK. I'm getting to the point where I think it's time to get my feet wet and learn on the job because books are only going to get me so far...good luck!

David Thompson · Answer

Hi DougTwo good MF books to start that I recommend:1) Multifamily Millions - Dave Lindahl2) The Compleye Guide to Buying and Selling Apsrtments - by Steve BergesI have a good list of to do's in getting started successfully in MF. Come back to me after you finished these books.Dave

Jay DeCima · Answer

DougI just posted this to a newbie. Hope it helps.Post:I've done almost all kinds of investing over the last 50 years.Here are a few things that may save you a ton of time:1. I've done many, but flipping and wholesaling are jobs. You pay regular taxes, including social security, like a job and there are not many tax breaks.2. Long term buy and hold is where you build your real estate wealth. Over time your tenants will pay ALL your bills and for your lifestyle.3. My biggest success over the years came from buying GROUPS (5-8 houses) of older homes on a single parcel, in older, blue collar parts of town (not slums). Because banks will not finance these types of properties, 90% of the time I got seller financing. The seller knew he/she would be taking back the financing. I did not have to talk them into it.4. I suggest you read up on a few kinds of investing you are interested in and then pick the one you think would be the best for you, and one that will not require a boatload of cash to start. Then find the best mentor you can in that kind of investing. Learn from that person and stay focused on their kind of investing. Find some of these mentors on a Google. See how many pages of results pop of for them.You will become an expert in a much shorter time period if you are not going in 5 different directions at the same time. If you want to find out more, there are 300+ blog posts on my website, organized by categories.To go to my blog, go to the website address below in my PB signature. fixerjay.com.I also started a BP blog last week and will be posting weekly, at INVESTING IN MULTI-UNIT PROPERTIESGood LuckFixer Jay DeCima

Michael Lee · Answer

Hello and welcome to BP! That is a tough question to answer. I have heard from more than one source that the Rich Dad series is good. I do not know about your other choice. There is also an online file in BiggerPockets.com/books that has the top 20 books listed you should read. I think there will be less competition in MF. You do not need any required experience in single family homes to do that first. One of the first things is to decide on a corporation type that will protect you.The next thing y'all should do is to find a local and experienced Team that you can trust and will return your phone calls. The main Team members are Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen. Do not try to do everything yourselves. Just focus on what is income productive.Always do the math analysis on your subject properties and try too look at them before you make an offer or at least have a clause in the sales contract that allows you some time(about 15 days) that will allow you to inspect the subject property without a penalty above the earnest money you paid. As soon as you can after closing get an insurance policy that will protect you in case of a loss. As soon as you close on a property, comfortably, change the exterior door locks. If the locks are still in good shape just use them at another address.I also went to college, not that it is mandatory, and I got a business degree that emphasized real estate. Since I was in Texas and planned on staying there I found out that I was qualified to take the real estate broker test so I took it and got a license. I never did that full time. Regardless of what I had I felt more comfortable in the construction business. I have been in the construction business since I was 17 incuding those college years. I kept that broker license for about 30 years.My father has been in the real estate sales and buying for about 40 years and he has taught me a little bit. I have done a few real estate deals for other people. I have done one investment deal for myself. I found BP about 11 months ago and I am still trying to decide what to do. If you think that I can help you please contact me through BP at any time. Good luck to y'all!

Austin Faux · Answer

The biggest surprise about being a real estate investor/entrepreneur is that you have to change who you are and become a better person. Everything about you and who you are and what you do has only gotten you here. If you want to grow beyond where you're at then you have to get uncomfortable and experience the growing pains. That's why mindset is important because it's going to be the difference maker between you taking action, failing trying again, and again till you get it right. You have to be unrelentingly patient with yourself as you learn, take action, fail, learn from your mistakes, and take action again repeating this whole process over and over again till you eventually reach the success you've dreamed. Most people don't have the unrelenting patience and discipline to move through the lifestyle journey that being an investor and entrepreneur requires. So Rich Dad Poor Dad will help you attain the right mindset moving forward.

Doug Saugstad · Answer

Austin Faux Christopher DeFronzo Thank you guys for the advice. I am going to continue expanding my real estate knowledge by expanded by my library with your suggestions. Thank you again. Let me know if you think of any more books that helped you in your journey to success.

Colin Merrill · Answer

I just bought what I saw to be the cheapest 4 family in West Allis 4 months ago and the area has treated me very well so far. I think the biggest things that made a difference thus far is holding your ground when it comes to the lease especially late fees. One of my tenants realized this quickly when he received a 5 day and quickly paid rent and a hefty late fee. Since then we have set up ACH transfers to my bank weekly and both of our lives are easier. Best of luck to you and welcome to West Allis if you buy there!

Ian Hoover · Answer

The Art Of The Deal by Donald Trump

Austin Faux · Answer

Rich Dad Poor Dad is how I started out this journey. It will give you the right mindset on making investing decisions moving forward in Real Estate. As far as a real estate specific book I would say BP's How to buy with no or low money down book is pretty good for finding creative ways to buy deals you might not otherwise think you can purchase. Do you know how to structure real estate deals, paperwork stuff like that? You might also want to take a look at the beginner's video course BP offers as well as attend your local REIA to meetup with folks that know how to do the paperwork.1) Find Deals2) Finance Deals3) Paperwork/Structure Deals4) Multi-Exit Strategy Your DealsThat's really the 4 things in a nutshell you really need to know how to do extremely well. It may take you sometime to learn all the ins and outs, but it's okay to start DOING before you're perfect at each. It's not too hard to start making money while you stumble your way through the steps.