Real Estate by the Numbers

As I prepare to purchase my first home, I’ve been immersing myself in the world of real estate. A long-term personal goal of mine is to build a return-generating portfolio as a real estate investor. And of course, I want to give myself the best possible foundation to make sound investing decisions.

One of the best resources I picked up so far is this book I just finished reading, which has been a solid refresher on many of the investing and finance concepts I studied in grad school. These are critical tools for any good great investor.

Some of the key concepts covered are:

• Key questions to ask before any investment

• Basic rules for growing your money (general finance, compounding interest, time value of money, etc.)

• Specific formulas to derive metrics that inform deal analysis

• Using those metrics to compare potential deals

• Varied strategies for financing deals

• How to track investment performance over time

As a sweet bonus, if you get the book from Bigger Pockets (not an affiliate link) you get all of the Excel files used in the book, so you can work the examples as you read along. I found these to be extremely helpful with internalizing the material.

Overall, this book is the most approachable introduction I’ve come across on these concepts. Even if you’re not “into” real estate from an investment perspective, I’d still highly recommend picking up a copy for the financial literacy lessons. You’re sure to pick up some good nuggets if you do.