I came up with the following rules of successful real estate investing over my many years of successes and failures. These are the same rules I follow today and share with our clients at Norada Real Estate Investments.

1. Educate Yourself

Knowledge is the new currency. Without it you are doomed to follow other people’s advice without knowing if it’s good or bad. Knowledge will also help take you from being a “good” investor to becoming a great investor, and that knowledge will help provide a passive stream of income for you or your family.

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There are literally thousands of books on real estate investing.  I myself have one of the largest collections of them known to mankind!  But seriously now, I do own a rather large bookshelf jammed full of real estate books, tapes, CDs and DVDs.

So I thought I would share my top 10 real estate investing books with you.  That’s not to say that I only have 10 favorites, because I could easily add another 10.  But for those of you looking for some good book recommendations they are:

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According to the VIX index — which is known as the “Fear Gauge” — investors are feeling calmer about the stock market than they have in 25 years.

This “Fear Gauge” is at it’s lowest since 1993.

And professional traders are scared out of their mind.

Why would that be?

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When it comes to getting rich, so-called experts are full of advice on how to save your way there.  There’s no shortage of articles about couples who saved their way to $1 million or “expert” tips on how to save more money.

And these articles are true.  You can save more money following their advice.  But you have to consider the cost.  Because the saver mindset is a very different and dangerous mindset about money than how the rich think about money.

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Research shows that 88% of wealthy people devote at least 30 minutes a day to reading.  If it works for them, it could work for you.

Below, we’ve rounded up 12 of our favorite books, from personal finance classics to new releases.  Here’s to a prosperous year!
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The Real Estate Professional status is a designation given by the IRS based on the number of hours that you work in real estate activities versus other activities.

It doesn’t mean that you have to become a real estate sales agent or broker.  You don’t need to drive around showing people houses or putting out “for sale” signs.

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Before you can become rich, you must decide whether you want to be secure, comfortable, or rich.  These are called core values, or the reasons you want to invest.

The first reason most people invest is because they want to feel more secure.  That’s why Social Security or a retirement plan is very popular with people whose core value is the need for security.  Security is a very important aspect of investing.  You don’t want to be a destitute out on the streets with nobody taking care of you.

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When you buy a fixer-upper, you know that there will be hours of work ahead. But it can be hard to know where to start. Not everyone is born a Joanna Gaines — the design mastermind behind HGTV’s Fixer Upper — but that doesn’t mean you’re doomed to a dilapidated dwelling. Here’s a handy list of initial steps to ensure that your DIY approach to home-ownership is a success.

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Let’s start with: Why have an LLC?

There are mainly two reasons why you want any kind of business structure:

Pay less tax, and protect your assets.

Before you jump into creating your LLCs for your real estate holdings, there are a few things to consider.  Do NOT make these three mistakes.

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The combination of inflation and low mortgage rates usually leads to much higher compounded rates of home appreciation.  For owners of property, high rates of inflation and appreciation are welcomed and appreciated.  For buyers or tenants, however, the skyrocketing purchase and rental prices are not liked much at all.

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Sweeping changes in the nation’s demographic makeup will have profound effects on the nation’s housing industry, according to “Big Shifts Ahead: Demographic Clarity for Businesses,” a new book by authors John Burns and Chris Porter.

They argue that broad demographic shifts will reshape housing in America in the next decade, creating new opportunities for businesses of all kinds.  Rising numbers of female executives, affluent immigrants, growing numbers of younger and older workers and a ballooning retiree population will have a profound influence on residential real estate in the U.S. over the next 10 years, according to Burns and Porter.

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Think about the most successful people you know.  Here are 17 things I’ll bet they’re constantly doing.

Think of the most successful person you know.  Maybe we’re talking about a work colleague or a mentor.  Maybe this is someone you knew growing up or in school — and you can’t believe how much he or she has achieved since then.

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Ignoring the fact that stocks, bonds, mutual funds, and other investments are either over-valued or providing negative real returns, real estate has almost always been the best use of capital specifically because of your ability to leverage your investment.

If used properly, leverage will significantly enhance your return on investment.  This is easy to do if you invest in income-producing real estate but much more difficult, if not impossible, if you’re investing in stocks or mutual funds.

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We are all too familiar with the sobering statistics on marriage.  Around 50% of marriages end in divorce, and oftentimes the root of all that unhappiness is money.

But there’s some good news on the horizon.  According to a recent study by Ameriprise, “a remarkable 77% of American couples report they are on the same page with their finances.”

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You’ll often hear people say that they don’t like real estate because if you look at the long-term returns of the stock market, it seems to have a better return over the long-term.

Of course, when they say this, they are leaving a few key things out.

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Successful real estate investing relies on several factors, but as the old adage goes, “location, location, location” is top of the list.  But “location” is a broad term, and evaluating the right place to invest your dollars in real estate means identifying the right market in both the macro and micro senses.

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Small is Big!

If you own one investment property you are a significant investor and contributor to the American economy.  The engaged (as opposed to “aspiring,”) real estate investor population is estimated to be at 11.1 million individuals and companies.  Together this tier of investors owns $3.1 trillion in single-family residential (SFR) asset value representing 13.3 million homes.

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