5 Real Estate Investing Books You Should Read in 2017 | Woodbridge
01 10 2017
Investors from all walks of life are turning to the real estate market for their next investment opportunity. After all, 35% of Americans believe that real estate is the best long-term investment strategy - surpassing stocks at 22% and gold at 17% in popularity.
Why Now is The Time to Invest in Real EstateThe housing market is on the upswing. On October 26th, the Department of Commerce announced that new home sales in the South, Northeast, and Midwest advanced 3.1 percent in September to a seasonally adjusted annual rate of 593,000, which is up from 575,000 in August. That is nearly 30 percent more than the estimated 457,000 in September of 2015. It's good news for investors and builders, as there is now an overall shortage, and therefore demand, for new properties and homes.
This has created meaningful opportunities in traditional real estate investing for those with capital - from rental properties to flipping homes. And thanks to recent legislative and regulatory changes, access to real estate investing has also significantly expanded for those looking to invest smaller sums of capital. This pendulum swing allowed financial institutions to market lending opportunities and created real estate crowdfunding, which utilizes the advantage of online communities to raise funds for properties.
How to Start Investing in Real EstateSo, how do you get involved? First and foremost, do your homework. The ocean of options does not negate the need for due diligence. Ask questions, vet opportunities, and exhaust your resources. And that begins with getting the best advice from the best experts.
We've made it easy for you, and identified the top five investment books to know, love, and trust this year.
Top 5 Investment Books of 2017:
1. The Book on Managing Rental Properties (Brandon Turner and Heather Turner): Is a rental property the right match for you? The Turners take you on a journey through the real life experiences of their management company, and provide accompanying advice to both novices and experienced brokers. Readers are provided with practical anecdotes. How do I identify a good tenant? What are my tax responsibilities? Test drive this investment option through their narrative.
Consider: Short-term rentals can be effective long-term investments. Websites like Airbnb, HomeAway, and VRBO have streamlined and simplified the rental market. Landlords now have the option to rent their homes on a short-term basis, while taking advantage of timing and in demand locations. For example, the 2017 presidential inauguration will undoubtedly bring in tens of thousands of visitors to the Washington DC area. Hotels will sell out. Restaurants will be over capacity. Investment properties in our nation's capital will benefit from surge pricing.
2. FLIP: How to Find, Fix, and Sell Houses for Profit (Rick Villani and Clay Davis): The number of flipped houses is at a six-year high. In the age of HGTV and DIY, flipping has grown in popularity. This bestseller removes the guesswork and untangles the process of selecting an investment, estimating costs, surviving construction, the art of the deal, and more. Villani and Davis have flipped over 1,000 homes, and their process is applicable to markets across the country.
Consider: Location. Location. Location. In Florida, flipping is creating momentum and delivering curb appeal to historically less popular areas. The influx of foreclosed homes in Tampa have been revived by flippers, and brought in the snow birds, first time home buyers, and renters.
3. Value Added, Successful Strategies for Listing & Selling Investment Real Estate (Brad Umansky): The demand for commercial real estate has presented an opening for both rising investors and the most experienced financiers. However, the plethora of options requires a roadmap. Umansky guides readers through the steps of brokering a deal in the commercial arena. He covers everything from marketing to presentation to financial analysis to negotiating and closing techniques.
Consider: In late August, it was reported that there was a 5.7% year-over-year increase in commercial real estate lending volumes. A compelling contributor is the employment upswing and the subsequent need for office space. According to the National Realtors Association, overall office vacancy rates are expected to fall 1.5% to 10.4% in the next year and so are industrial vacancies (0.7% decline to 8.7%).
4. Real Estate Crowdfunding Explained (Salvador Briggman and Krystine Therriault): Therriault and Briggman bring clarity to the real estate crowdfunding movement. They provide the steps for both raising money and investing in properties online. Briggman has blogged about crowdfunding, since its inception in 2012, and brings real world experience and advice to the table. He is a known expert, and is often cited by the New York Times and Wall Street Journal. Consider: Are you approaching retirement? Rental properties are costly, and can be labor intensive - requiring regular maintenance and screening all tenants. Crowdfunding is more of a hands off approach. Make no mistake, due diligence is critical, but the tenant won't be calling you at 3am with a flooded basement.
5. The Richest Man in Babylon (George Clason): Some classics are timeless. This 1926 bible of financial prosperity holds the secrets to creating, growing, and retaining wealth. Through ancient parables, readers learn how to invest wisely, save smarter, and live their dreams. Is investing in real estate right for you? Clason will help to guide your decision.
Consider: No matter how much money you have, or how much experience you hold, always make sure that your investment matches your risk profile. It's your money, and nobody can care more about it than you do.
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