I started reading “The Unofficial Guide to Real Estate Investing” by Martin Stone and Spencer Strauss. I found this book by browsing the BiggerPocket’s list of the best real estate investing books.
In an effort to solidify my understanding of the topics in each chapter, I will summarize key points that I find useful.
Chap 1 – Basic Investment Concepts
Real estate investing allows you as much or as little control as you desire. You can hire a management company or be the landlord.
If you have stock in a corporation, the destiny of your capital is in the hands of someone else, but in real estate you control the destiny of your investment. It is an investment in yourself and your efforts.
Because it is such a sound investment, Uncle Sam rewards you for investing in real estate by giving you tax breaks and providing tools like FHA loans.
In real estate you can use leverage to buy properties. This leverage lets you buy larger investments than you could get with just your own money. Archimedes said “Give me a lever and I’ll move the earth”.
In the stock market, unless you are buying on margin, you are required to pay all cash for your shares. $9,000 in the stock market gets you $9,000 worth of shares. In real estate you can get a 4-unit FHA apartment building worth 300,000 with $9000.
– Don’t believe that trading time for dollars is the only way
– Investing mentality needs to be learned
– The biggest advantage of real estate is the opportunity of using other people’s money