BiggerPockets

I just read Rich Dad Poor Dad,it was a good read and very motivational. It seems like all these books are motivational, and give you examples of deals they have found. The one thing I notice these books lack, is the actual how to. They talk about finding good deals,,,how some look good and could be bad on paper, and others don't look good, but could be good on paper. What is the formula for finding out if it is good? Or a postive cash flow deal? Or they talk about buy depreciating property that the government will help pay for. Where do you find these deals? I am just starting out...I'm pretty smart and learn fast...what is the best way to learn real estate finacial literacy? Books, websites, etc...

Thanks!

I would do exactly what was posted earlier by Ashamanm01, read a ton on these forums. You will have to filter between a few threads, but spend a few hours just reading different topics in what you are interested in doing.

The people here bring a real know how and real live twist to the game. It's not all glamerous as you see every where else, here you will get a dose of reality.

Is REI worth it? Definitely, but don't get sucked up in the guru game.

Bootcamps / courses aren't really that bad....

If you do your research and find the select few gurus that really teach their stuff well it will increase your learning potential many many times over.

Some of them are bad, some of them are good.

And John T Reed should hardly be considered a credible source for Guru ratings. He bashes gurus while on the same breath selling his own books / materials.

I think that finding the right formula is something that you have to find out on your own, not because someone won't share it with you but because every market is completely different. I have a formula for which I use to calculate good deals but I break tread on my own formula many times and only use it as a guide. The only way to get a formula is to start doing deals, and start screwing up a bit, but hopefully you can learn enough by reading forums and other things that you think might help so you don't screw up too bad.

There are some things that are better left to the experts teaching. I wouldn't advise someone to just read these forums or any forum and feel like they could go and do a short sale, or a sub2 deal. This is where a course would come in handy (might not be the holy grail but it would sure help).

Also don't underestimate the value of your local REIA Group (Real Estate Investment Association). Usually the membership is pretty cheap and you will learn so much! I pay $200 per year. I would pay more!!!

Can't help but agree with Tien. I have not attended any of the advanced " guru" courses but for those of us just starting out those boot camps have helped many. I've read a lot of people saying bad things about these courses BUT they have NOT attended the advance training that has been offered. From what I can gather, those who have attended some of these seminars have been very satisfied. I guess you need to be realistic, for me I am not planning on getting rich quick. Hell, I'm not planning on getting rich. As for right now, my immediate goal is to secure my retirement and get some tax benefits. However you choose to learn is up to you. Taking action is what is most important in the end.

I just need to get my feet wet, and learn by trial and error.

The truth is that the vast majority of newbies fail. Learning by trial and error is a certain way to join them.

You must learn the business before you start risking real money. I would strongly suggest that you do " whatever it takes" to learn the business before you buy anything. Reading the forums here and joining your local REIA is an excellent way to start the learning. At your REIA, your goal should be to make friends with the SUCCESSFUL investors in your area. In addition, I would suggest getting out and looking at 100 or more houses for sale in your target area. It is extremely important that you become an expert in your target market.

Good Luck,

Mike

RE investing clubs can be great, but can also be bad if you are not csutious. There are many newbies there claiming to be investors who pass off what they have " heard" as their own. Also, the owners of the clubs are looking out ofr themselves and not you. Example: they consistantly bring in " speakers" who push tehrir products at high prices and the club owner gets half of the sales commissions. That is hardly good for the new investor.

Please do not take what I have said as 100% negative, as clubs are a great place to network and meet other investors. You simply must be aware of the ploys used by the " salespeople" there and conceb=ntrate on speaking with the actual seasoned pros that attend.

As for Rich Dad Poor Dad, I also agree it is a good read from a motivational standpoint as well as changing your way of thinking in regards to assets vs. liabilities and emoplyees wages vs. business owners/investors. Very few books like this will give yoiu the actual step by step " how to" so it is up to you to find this out.

As for the formulas for identifying a good investment, you need to know what the income and expenses are. Mortgage, taxes, insurance, property management, repairs/maintenance, accounting/administartive costs, and vacancy are all items you must factor into the operating expenses.
On the income side, you have the cash flow (rental income less operating expenses), tax deduction, potential appreciation, and principle pay-down.

Good luck and happy investing! :D

I know I've spent a lot more on mistakes than on guru courses. I did Marshall Sylvers Turning Point and MMP course which cost about 5 grand total. Some fluff, definitely some upselling (Marshall's one of the only gurus I've seen who will tell you to your face at the beginning of his presentation that he is going to sell you something.....then sells you something very effectively...lol), but I did learn some key skills that have helped me make money since then. I knew that when I took it, I was taking it for the sales skills. I'd do it again.

I've actually tried a bit of everything mentioned on this thread. Books, boot camps, mentors, seminars, internet forums.

Like anything in life, I ask people who are experts in their field for advice then decide for myself which ones I will use in the end. I apply the same practice in BP. We are all here because we love REI, but we don't know each other personally. So I have to qualify the tips, tricks, advice I get from this site and decide if it is something I would do or not.

This is how I look at books, boot camps, mentors, seminars, etc. I take what I want then apply it the way I want to. It's hard for me to agree with others who say these are " scams" or a waste of money. Since I've tried most of them, I can say that I have always picked up something new. Which helped me in my RE ventures, and I think is worth the price of admission. Regardless if it's $20 for a book or $10K for a mentor program. So far it has worked for me.

In the end, I ended up with more knowledge than I started with.

The negative thing I have about REIAs is that a lot of attendees are beginners who claim to know more than they actually do. It's also harder to qualify the legit investors from the posers.

That's why I've avoided the REIAs and focused more on organizations that are not REI related.

I join charitable orgs, the local Rotary club and similar orgs, and go to places where movers and shakers hang out/dine. Most of the people that you meet in these orgs/places are attorneys, developers, investors, bankers, politicians, doctors, business owners, etc.

For me this has been more effective because you broaden your network. Eventhough you don't meet the specific people you are looking for (REIs), you meet people who know people you are looking for. Plus this weeds out the men from the boys. In fact you end up meeting powerful and influencial people who I think are better contacts than the ones you will meet in REIAs. This strategy has accelerated and opened WAY more opportunities for me in my REI career.

I'm sure you guys know about the 90/10 rule. How many of you have seen the big boys who belong in the 10% go to REIA meets? I'm not knocking on REIA meets, but I am just stating the facts. Rich people like to help each other. It's kinda like a " secret society" . These people won't tell you where they're investing unless you're an insider. If you want to learn and find a mentor, might as well aim high and be mentored by the big guys.

In conclusion, I agree and disagree with a lot of the points that were brought up on this thread.

My advice is do whatever you feel that is right for you. Some people learn by reading, some by going to seminars or by being mentored. In the end you will be better off than you were before doing any of these methods.

Good luck!

Alex

I have read a few of the Rich Dad books and am now in the Rich Dad Coaching program and am committed to life long learning.

I think that it is great to have a combination of books to read, CD's and podcast to listen to, a mentor to help you and a daily action plan with daily items to work on to move you towards investing success.

a few books I have read in the last 3 years that I thought were good. I try to learn 2 or 3 things from each book - and then implement those ideas in the real world.

10. Maverick Real Estate Investing: The Art of Buying and Selling Properties Like Trump, Zell, Simon, and the World's Greatest Land Owners by Steve Bergsman
9. Secrets of a Millionaire Landlord by Robert Shemin
8. How you can become financially independent investing in real estate - Albert J. Lowry
7. Emerging Real Estate Markets: How to Find and Profit from Up-and-Coming Areas by David Lindahl
6. Trump - The Art of the Deal - Donald Trump
5. Rich Dad, Poor Dad - Robert Kyosaki
4. Risk and Grow Rich - Kendra Todd
3. 2 Years to a Million in Real Estate - Matthew Martinez
2. Rich Dad's Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors by Sharon L. Lechter and Garrett Sutton
1. The ABC's of Real Estate Investing - Robert Kyosaki

i can expand on daily action items in another post.

best of luck investing.