One of the easiest but most valuable things you can do both in real estate and in life is to become an inveterate reader. Every book you read improves your knowledge, understanding, and frame of reference. By taking in a wide variety of different viewpoints, you are also able to better hone your own original thoughts and think more critically. I truly do not know any dedicated readers who are not successful.
It took me way too long in life to get into reading. I viewed it as a chore and if you view it as a chore, you will find all sorts of excuses not to do it. However, once I did get a streak of books going, it became a staple of my life and I am very thankful that it is. I started off with 5-6 books a year, then 8-12, and now I think I am maxed at 24-26 per year. I know some people who read 50+ but I have no idea how they have the time for that and I know I will never get there.
Being a well-read person makes you sharper, period. You will be more fluent in your main interests, like your career, but you also will develop some proficiency in subjects that were previously foreign to you. This will allow you to have more in common with a wider range of people, and only makes you want to read even more. The search for knowledge is addictive and inherent to human nature, but in my experience most people only take it seriously after 5-10 years into their career as free time is spent on more lively activities. That is fine, but the earlier you get into it, the better.
I find that I only retain maybe 5% of what I read after 6 months and the rest is pretty much buried. But the 5% I do retain are usually awesome nuggets that stick with me and have forever shaped my thinking. This is the real benefit of books. The human brain has an estimated memory capacity of 2.5 million gigabytes, a stat which always blows my mind. You should seek to fill it with useful information that helps you level up in life.
I typically have three books that I actively read each day. The first is a “work book” or one that is directly in my career field and intended to help me improve at my job. The second is a “knowledge book” which is non-fiction and is usually in the realm of business, economics, personal finance, or health. The third is a “nighttime book” which is almost always fiction and in my case usually sci-fi or dystopian novels. These books do not leave my nightstand and are a part of my bedtime routine to unwind and prepare to drift off into an excellent sleep.
This post covers my favorite work books which have either helped me learn my craft or have made a meaningful impact on my own investment philosophy. I have categorized them into beginner, intermediate, and advanced.
BEGINNER
The Real Estate Game by William J. Poorvu and Jeffrey L. Cruikshank
I may be a little bit biased on this one because it was the first real estate book I ever read. It is written by the founder of The Baupost Group, a firm that was and still is a prolific investor. He is also a professor at Harvard and therefore transcends the academic vs. practical divide. I particularly enjoy it because it gives you the fundamentals without babying you. There is a ton of wisdom in here and you know it is solid because this book was written 25 years ago and the lessons still hold. I read this once a year.
Link: https://tinyurl.com/42p64wmp
What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli
This book is probably on every single list if you google “the best real estate books” and that is for good reason. It is a “classic” of the real estate education community because it is so effective at emphasizing what really matters in real estate (hint: its cash flow) so that you can underwrite and review investments thoroughly. Some may think it is math heavy, and while he may go overboard with formulas at times, I think it is awesome to learn as many calculations and heuristics as you can when you are learning. Definitely a must have for the book shelf.
Link: https://tinyurl.com/3sr6zrfu
The WSJ Complete Real Estate Investing Guidebook by David Crook
Although the surname of the author is unfortunate for any type of investing book, this is a very good read for beginners. Not quite as foundational as the other two listed here, but this one shines a bit more if you are a true novice with little to no knowledge. This book is way more breadth than depth. I read it as a seasoned professional and still learned a few things, but I wish I had read this one earlier on in my career given how digestible it is.
Link: https://tinyurl.com/2p94rrdf
INTERMEDIATE
Making it in Real Estate: Starting Out as a Developer by John McNellis
Oh man what a gem this book is. A true diamond in the rough. It is super low key and was not widely marketed, but I just happened to click on a link in an email from the Urban Land Institute (ULI) and accepted their discounted offer to buy it. This book is ~100 pages and the chapters are maybe 3 pages each, but it seems like every page is filled with a zinger of wisdom. No heavy formulas or esoteric topics, just a really interesting and experienced developer giving thoughts and advice based on his experiences in the real estate world. The information is great for those who are interested in all real estate, not just development.
Link: https://tinyurl.com/mr2rnbvb
Am I Being Too Subtle? by Sam Zell
Sam Zell, the founder of Equity Group, is a living legend. He built one of the largest and most successful modern day real estate empires and has one of the most unique personalities in the business. This book walks you through his biggest wins and covers his overall beliefs and dispositions. There is so much good information in here and I promise it will help you shape your own investment philosophy and will make you think better. It is clear, fast, and fun to read.
Link: https://tinyurl.com/2s3zhbey
What It Takes: Lessons in the Pursuit of Excellence by Stephen A. Schwarzman
Stephen Schwarzman, co-founder of Blackstone, is another titan in the industry and a friend (and inherent rival) of Sam Zell. This book is a bit more autobiographical but is also filled with useful anecdotes, parables, and lessons. Blackstone is the tip of the spear in real estate private equity so it is really fascinating to see how it was able to rise into its spot at the top. Personally this book made me want to run through a wall with motivation when I finished. Schwarzman may seem a little self-promotional at times, but I think he should get a pass given how incredible a firm and culture he built.
Link: https://tinyurl.com/5pmmv62k
ADVANCED
The Encyclopedia of Commercial Real Estate Advice by Terry Painter
This is another book that seems to fly under the radar but is an absolute must read. What a fantastic trove of information. It covers every topic you need to know with an excellent level of depth and explanation. It is books like these that are making formal education outmoded because of how well-written and organized it is, the ROI is incredible. Do not let the title or the size of the book scare you, it is plenty digestible and is probably the most valuable book on this list from a pure real estate knowledge standpoint. It is a shame that it does not seem to have the same recognition as many inferior books.
Link: https://tinyurl.com/2f923rzv
A Practical Guide to Commercial Real Estate Transactions by Gregory M. Stein
Well let me get the biggest downside of this book out of the way, it is expensive (~$150). But it is worth every penny. I searched for a while to find a fairly readable book on real estate law because it was one of my biggest weaknesses and I wanted to get better. This is the book that allowed me to transform a weakness into a strength. Although it is intended to be read by lawyers (who by their nature already love reading dry things), I think it is excellent for non-legal folk as well. Sure it is hard to get through at times, but it covers all the essential components of a real estate transaction from the legal perspective, which will give you a ton of confidence and capability to lead the execution of real-life deals. It will force you to think from a legal risk management perspective and it opines on how to structure deals to protect yourself and your firm. A major bonus is it will give you the ability to speak fluently with the lawyers, which is a very valuable talent for a whole host of reasons.
Link: https://tinyurl.com/yjkp7rxp
Fundamentals of Building Construction by Edward Allen and Joseph Iano
This book is probably for the more ambitious studiers in the real estate world. This is a true textbook meant for students, and I only picked it up because of a recommendation from a mentor in the field. My reason for reading and recommending this one is that, just like the legal side, it is invaluable to be fluent in building structures and systems. After all, real estate is just land and improvements at the end of the day. Intimately understanding how buildings are built is required for developers, but every real estate investor would greatly benefit from having an intimate understanding of how buildings are built, and that is what this book provides.
Link: https://tinyurl.com/2p9fwrs2
SUMMARY
Books are probably the best way to help you “level up” in life as it forces you to consume new information and to never get lazy or complacent. Fortunately the pursuit of knowledge is addictive and if you can break past the initial inertia, it will never be a chore but rather something you constantly look forward to. The books on this list are my personal favorites for real estate, but there are hundreds to choose from out there that each have something to offer you.
