Real Estate Book For A Beginner

[Antoine Joseph]

I was looking through the real estate section of the book store and saw "Multi-Family Millions" by Dave Lindahl sitting on the shelf. I skimmed through the first 20 pages pretty quickly and decided I'd do some more investigation later. Now I know Mr. Lindahl is a giant in the industry but I am wondering if the methods he lays out in this book would be applicable to beginners with very little cash on hand. He mentions closing multi-million dollar deals with none of his own money. I admit that I was (and still am) pretty skeptical as I previewed the book; however, I am still intrigued. I would like to own many multi-family units at some point, but it doesn't seem realistic for me to be chasing these big deals right out the gate. (I currently have one deal under my belt, I bought a duplex that I live in and rent out the other half). Has anybody read this book and would you recommend it for a beginner?

[Brian Gibbons]

Antoine Joseph to add to Michael Carbonare 's comment,

Wholesaling is a cheap start, but to do it locally depends on cash buyers. Your local area may or may not be a hot place for cash buyers buying. Knowledge of rehabbing is important too.

Cooperative Lease Options or Lease Option Assignments are great to start with, as the risk and capital needs are low.

Sandwich Lease Options have greater risk than Coops - LOAs. You stay in the middle of the deal so you have to pay the Seller if the TBer does not pay.

Some states are great for Agreement for Deed (aka Land Contracts or Contract for Deed) purchases also, then rent out, live in it or rent to own as an exit strategy. Not all states are good. Texas has outlawed them. A Good site for Texas REI, especially Wraps is http://www.lonestarlandlaw.com/Wraparound.html

Sub2 or Subject to Existing Financing with or without Land Trusts are popular too.

Wrap - AITD purchases are common in many states.

All of the above have due on sale issues. All buying on terms include some risk.

Using private money to fund deals for all cash and avoid banks is great for all cash deals.

To learn about private money, see these 2 books:

http://www.amazon.com/Invest-Real-Estate-Little-Taxes/dp/0071443789

and http://www.amazon.com/IRA-Wealth-Revolutionary-Strategies-Investment/dp/0757000940/ref=sr_1_1?s=books&ie=UTF8&qid=1366656855&sr=1-1&keywords=patrick+rice

The new podcast from @Ben Leybovich talks about a 85-10-5 finance deal for a 10 unit. Here is the link:
http://www.biggerpockets.com/renewsblog/2013/04/18/cash-flow-creative-finance-life-ben-leybovich/

I hope this has helped you think about REI!

And see the free resources at http://www.biggerpockets.com/rei/