5 printable time sheets you can download (free templates)

1.4K Tracking employee work hours keeps you informed about attendance and where employees spend their time. It will help you calculate employee...
HomePassive IncomeThe Best 3 Books to Read Before Investing in Real Estate

The Best 3 Books to Read Before Investing in Real Estate

When just starting out, real estate investing can be confusing, intimidating, and unreachable. It doesn’t have to be. Here we look at three of my favorite real estate investing books for beginners to get you started.

It’s actually simpler and less time consuming than you might think. And you can learn how to be successful while still thriving in medicine. Even better, once you grasp the basic concepts of how passive real estate investments work, you’ll start building the roadmap to your dream financial life.

What do I mean by that? Consider for a moment what it might feel like to have more time with your family, more money to spend on your interests and hobbies, and more overall financial security. That’s what passive income can do, and it’s possible through real estate investing.

As doctors, we tend to delay gratification. We’ve given up our 20’s to go to school, worked nights and weekends for a future opportunity, and much more. Don’t delay your future any further. Level up by creating your own financial security by learning about passive income real estate investment.

Hitting the Books

Making your money work for you requires your first actionable steps: Your investment education. Good news! As a physician, you are already a successful student. So let’s hit the books!

While there are many great resources out there to get a foundational education—such as the resources available here at Passive Income MD—books tend to be the most high-yield resource for information out there, in terms of a cost-to-benefit ratio.

With that in mind, here are three books at the top of my list when recommending guides on how to buy and monetize real estate for passive income.

The ABC’s of Real Estate Investing by Ken McElroy

How do you make a complicated thing simple to understand? Read this book. Ken’s book acts as a comprehensive primer for anyone interested in building wealth through real estate, offering both theoretical knowledge and practical guidance to navigate the complexities of the market. For longtime readers, you might recognize Ken’s name. That’s because he’s participated in PIMDCON, the Physician Real Estate and Entrepreneurship Conference, for the past two years. Were you lucky enough to see him?

His book covers the fundamental concepts in simple terms and helps you understand the basic math. Additionally, it gives you strategies for successful real estate investing—including finding and evaluating properties, financing deals, managing properties, and mitigating risks—and offers real-life case studies and examples drawn from his own experiences.

It also provides insights from the perspective of many successful investors. Intended for beginners, the success-story structure helps bring you out of your shell, moving you from imposter syndrome into the mindset of a veteran investor.

Added up together, it provides a great introduction to the topic for newcomers. After you finish that book, keep going with Ken. He has two other worthwhile reads on the subject: The ABC’s of Buying Rental Property and The Advanced Guide to Real Estate Investing.

Rich Dad, Poor Dad by Robert T. Kiyosaki

This might just be the most important $15 you ever spend. There’s a reason this book has, for decades, been lauded as the number one personal finance book. Of all of the investors I’ve talked to, I’d say 90% point to this book as a major influence for them.

Rich Dad, Poor Dad is a motivational story—almost like a fable—that dispels the notion that you need to be rich to get rich. Based on his own account of growing up with both a “rich dad” and a “poor dad,” he dissects how two father figures chose different financial paths: regular income (where you earn money for time worked) and passive income (where your money works to make you money). Through passive income, the “rich dad” scales his net worth with very little effort, freeing up his time to live his life. Kiyosaki explores the common myths of having to work harder to make more, providing inspiration for those thinking about getting into passive income.

But beyond those mindset-challenging foundations, the book also reveals key financial concepts, such as the difference between assets and liabilities (and why that difference is fundamentally important) and the power of entrepreneurship and investing.

If it speaks to you, don’t stop there. Check out his highly useful books The Real Book of Real Estate and CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom. As both titles suggest, they are perfect for an upcoming real estate investor like yourself to achieve financial independence.

The Book on Rental Property Investing by Brandon Turner

The Book on Rental Property Investing is a comprehensive guide on how to build wealth and achieve financial freedom through the passive income from investing in real estate rental properties.

But it does more than just teach you the maxims of success. This book also explains why many real estate investors fail and how you can ensure you don’t. Even better, it shows you how to find the best deals in any kind of market—even competitive or down markets.

Perhaps my favorite aspect of this book is the suggested actionable steps it provides for things such as financing rentals. And for those looking for ways to keep your wealth by deferring (and eliminating) taxes, Turner has strategies for you.

From a pick-up-and-read standpoint, this is another book that caters to everybody. Beginners and advanced alike will benefit from its ideas. If you like Turner’s game-changing strategies, you might also want to check out his other books: The Book on Investing in Real Estate with No Money Down and How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started.

What Should I Read Next?

When I finished these books at the start of my journey, I didn’t walk away understanding every concept. But it gave me just enough information to take my first actionable steps. And that’s what we’re all looking for as first-time investors. Let’s face it: We can’t sit around reading books and expect our life to change. Instead, we can use that education to motivate action and get things done.

Today, I’ve shared some of my favorite books with you. But I know you have some amazing suggestions, too, and I would love to hear from you. What is your favorite investment book? Reach out to me through one of Passive Income MD’s many communities to let me know. That could include signing up for the Passive Real Estate Academy Waitlist, joining our Leverage and Growth Accelerator Community, or attending one of our many events and conferences. When I see you, we can start talking about how to take that first step into investment. It’ll be the start of an amazing and life-changing journey.

Thanks for taking the time today to read my blog. I look forward to your book recommendation. And until I see you next, keep striving toward a financially free life.

Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.