The Financial Model of the Millionaire Real Estate Investor

There are two ways to build financial wealth by investing in real estate. I know that sounds way too simple, but it's true There are just two. Within those two are a vast array of variations that can give the appearance of massive complexity, and by using those various options you can make real estate investing as complex as you want. Eventually most millionaires do, but not in the beginning. They always start with the basics and build from there. When you truly understand the two basic drivers...

Millionaire Real Estate Investor

Your journey to becoming a Millionaire Real Estate Investor begins with your understanding of net worth and ends with your having a lot. Net worth is your worth in financial terms. Practically speaking, it's what you own minus what you owe your assets minus your liabilities. The Net Worth Model of the Millionaire Real Estate Investor is a proven plan of action for dramatically increasing your net worth over time. It's a simple three-step process For Millionaire Real Estate Investors these steps...

Buy It Right Pay It Down Pay It

This is the motto I want you to adopt, the litany I want you to repeat to yourself constantly. This is how I want you to build your financial wealth through real estate. All this will become clearer when we investigate the Acquisition Model, but for now I want you to internalize this three-part reminder Buy it right pay it down pay it off. When you buy it right, you make your money going in you assure yourself of achieving the best of Equity Buildup and Cash Flow Growth. When you pay it down,...

Vena Jones Cox

Cincinnati, OH Years Investing 15 Number of Deals in 2004 35-50 Career Deals Over 500 Units Owned 35-50 Areas of Expertise Wholesaling no-money-down acquisitions and lease options You'd think that growing up the daughter of one of Cincinnati's best-known real estate investors would infect anyone with the investing bug. Not Vena Jones-Cox. Instead, helping her father manage 13 apartment buildings convinced her not to go into real estate. I was pressed into service all the time to answer phones,...

Carlos Herbon

Number of Deals in 2004 One 156-unit mixed use building In 1970 Carlos Herbon and his wife came to the United States from Argentina with only 120 in their pockets. The couple stepped off the plane in Los Angeles and bought two hot dogs for five dollars. We said, 'Wow, our money isn't going to last long,' Herbon recalls. Fortunately, Carlos and his wife didn't let their lack of funds and the cost of living in the United States discourage them from seeking a better way of life. While they've...

Wendy Patton

Units Owned 39 (She's trying to get down to 30 from the 175 owned in 2002) Areas of Expertise Lease options subject-to acquisitions and rehabbing When people talk about creative finance, they're usually not talking about the way Wendy Patton got started in real estate. Patton used credit cards, and lots of them, to launch her investing career. As a recent college graduate burdened with student loans and earning an entry-level salary, Patton took advantage of the cash advances her numerous...

Millionaire Real Estate Investors

Although this book has only three names on its cover, it contains the wisdom and expertise of many people from different social, economic, and cultural backgrounds. Fortunately for the authors, the two things those people all have in common are a passion for real estate and a willingness to share their wisdom. Without both, we would not have been able to craft a comprehensive book that speaks so powerfully about building financial wealth. For this we are immensely grateful. Because each...

Your All Properties Bulletin

Your completed Criteria Worksheet has a second and equally important function beyond building your Criteria. Once completed, the form provides a template for your All Properties Bulletin (APB). Your APB is a script. It's the basic description of the real estate investment for which you'll be prospecting and marketing (lead generating). For example, if you pulled out only the categories you completed, your APB might go something like this I need your help. I'm looking for two-bedroom,...

Think Value Opportunity and Deals

Almost anything worth doing has a process. What the Millionaire Real Estate Investors revealed to us was that their thinking followed a process that in the end instructed their actions. The truth we discovered was that Think Value, Opportunity & Deals Think Value, Opportunity & Deals you have to know values in order to recognize opportunities and have to find opportunities before you can do deals. That makes sense because you don't just go out and do deals. You can't really make a deal...

The 7th Level The Path to People Leverage

If you're like Investor 34 or any of the other Millionaire Real Estate Investors we interviewed, you'll find that as your investment business grows, you will rely increasingly on others to perform the day-to-day tasks of investing while you manage the process. This is the natural evolution of a growing business. One day you'll discover that you're doing all you can and look for help. Sometime later you'll realize that even with the help you have you're hitting a ceiling of achievement because...

Barbara Mattson

Rockford, IL Years Investing 7 Number of Deals in 2004 30 Career Deals Over 150 Units Owned 100 Areas of Expertise Judicial sales (foreclosures) assisting other investors and auctions Many people get into real estate investing to get rich. Barbara Mattson got into it to survive. Mattson was a home health care nurse when her husband, a construction worker, injured his back on the job and was confined to bed. For nine months Mattson supported the family on her nurse's paycheck, fought to get...

Info

National contracting company for the real estate investment industry. In any given market, HomeFixers consults with dozens of investors each month and sees first-hand the painful experience of investors who overestimate the selling price. Rick told us, Overestimating the market and asking too high a sales price can add weeks, even months, to your selling time. The price a property might sell for versus the price it will 'quickly' sell for can be the difference in controlling your carrying costs...

Its impossible not to become wealthy over time in this business

Stanley Armstrong Millionaire Real Estate Investor Washington, DC When I got home, I looked it up and discovered that the story didn't end there. As it turns out, the housing reforms in Chile were so effective revealed, The oldest fortunes in America have come from the land. Unlike Europe, where most of the valuable acreage has been held and passed down by nobility for centuries, American real estate has been open to virtually anybody with the daring and the ingenuity to possess it.3 With that...

Cash Flow Growth

As good as all this Equity Buildup is (and it is very good and very real to a Millionaire Real Estate Investor), it is not the whole story. There is the added benefit of Cash Flow Growth to consider (see Figure 14). Net Cash Flow is achieved from a real estate investment when the rental income you receive is more than the costs you incur. The costs include your expenses, an allowance for vacancy, and debt service (the mortgage payment on the property). All this will be outlined in more detail...

Ron Garber

Orange County, CA Years investing 20 2004 Deals 0 Career Deals 30 Units Owned 20 Areas of Expertise Foreclosures, fix and hold Real Estate License Yes Many investors get their start with the help of a mentor, an experienced advisor who may say only a few words, but words with the power to push a novice in a new, life-changing direction. That's what happened to Ron Garber in 1985 when a wise mentor shared with him the bucket theory that set Garber on the path to total financial independence. The...

Law 2 Be a Shopper Not a Buyer Its Better to Miss a Good One Than Buy a Bad

Investors live for the hunt, the thrill of the chase. They are as attached to the process of searching for investment opportunities as they are to the act of buying them. They are shoppers, not buyers. In our interviews with Millionaire Real Estate Investors, the way they talked about their investments made this very clear. They were as proud of the effort they made in finding a deal and making it happen as they were of the profit they made. These investors understand that being a shopper...

The Three Circles of Your Work Network

Do you want to be the best investor you can be Then surround yourself with the very best Work Network you can. It's that simple. Take a look at the chart below. We've drawn it this way for two very important The Millionaire Real Estate Investor's Work Network The Millionaire Real Estate Investor's Work Network reasons First, millionaires surround themselves with great people, and second, millionaires run in the right circles. There is a practical reason why they do this and a scientific...

Cash or Cash Flow and Equity

In real estate investing there are only two fundamental acquisition strategies buy for cash and buy for cash flow and equity buildup. There are many specializations and variations within each of these basic strategies, and they often are referred to by various names, such as optioning, assuming, rehabbing, long-term investing, quick-turn investing, wholesaling, wrapping, lease optioning, and fixing and flipping. However, all those names just complicate the picture. No matter what you call them,...

Bill Goacher

Number of Deals in 2004 Only one fix & flip because he's still working a 1 million office rehab from previous year Areas of Expertise Adaptive rehab of old commercial buildings (converts to art studios, work spaces, warehouses and live-work units) has also rehabbed single-family homes As in the old saying about beauty, disaster is also in the eye of the beholder. At least that's what Bill Goacher believes. He likes to tell a story about some rehabbers in Asheville, North Carolina, who had...

Jimmy and Linda McKissack

Denton, TX Years Investing 12 Number of Deals in 2004 About 30 Career Deals 150 or more Units Owned 95 Areas of Expertise Foreclosures and buy & hold Real Estate License Yes Not having enough savings to invest in real estate is the most common excuse people give for not making those investments. What's less common, though, is to hear people say they had to get into real estate investing so that they could save money. But that prompted Jimmy and Linda McKissack to start investing in a forced...

The Money Matrix

Most people are in the dark about money. They live from paycheck to paycheck in a twilight world with only the dim candle of conventional financial thinking to light the way. As a result they have a kind of finan I never let anyone rain on my parade or wreck my day. I never listen to anything negative. I'm in charge of my attitude. I had a lot of energy, and I had a plan, so it took me only four years to become a millionaire. Mary McDonald Millionaire Real Estate Investor Coopersburg, PA cial...

Stage 1 Establish Your Base Camp

The first stage in building a financial track to run on is to establish your financial base camp. The key to this is to incorporate the Net Worth Model into your life. The first step is to create a personal budget and stick to it. This will allow you to make sure you don't spend all your money and will have some to invest. A personal budget will challenge you to live well but well below your affordable means until your financial wealth has been accumulated. By following a budget you will begin...

You Your Primary Asset

Don't underestimate what's possible and don't underestimate yourself. Invest in yourself. Stay plugged in. Seek out role models and mentors. Invest in your personal development and education. Learn everything you can as soon as you can and never stop learning. Never stop asking questions stay into curiosity and out of the need to know it all now. Remember that you are your most important asset. That's not a selfish point of view. Shakespeare was reflecting this when he said, To thine own self...

Think Big Goals Big Models and Big Habits

If you want to lead a big life, your thinking has to lead the way. I can't tell you how many times in the course of our research we heard the refrain, I wish I had started sooner, bought more, and sold less. Even our Millionaire Real Estate Investors realized that as big as their thinking had been, they could have thought even bigger. They understood that the size of their financial lives had been determined by the size of their thinking. I believe in thinking...

Truth You Cant Predict What You Can or Cant Do Until You

I really struggle with this way of thinking. I just don't understand why people seem to want to place judgment ahead of effort and unproven opinions before a willingness to try. There's no way for you, or anyone else for that matter, to know your true financial potential. And because your true financial potential is unknown, it makes no sense to place limits on it. I can't do it becomes another rationale for not trying, for not stretching, for not exploring your potential. Some people have told...

Mary Mcdonald Millionaire Real Estate Investor

For some investors, because of their goals or current circumstances, cash is king. If you want cash, you have four basic options for accumulating it Find & Refer, Control & Assign, Buy & Sell, and Buy, Improve, & Sell. If you are looking for cash and don't want to invest any money or even write a contract, you can accomplish that through Find & Refer. You can become a scout. As a scout, you seek out good investment opportu nities and then bring them to investors who are ready and...

Time

That neither did those he put in charge of it. I'm certain he never felt he was capable or even that he should play an active role in his financial well-being. Like so many others, he might have said, I don't need to be an investor. My work is my financial wealth, and others will manage my money. As we all know, Tyson eventually lost his job and his financial wealth. It is a sad tale but one that, from a financial standpoint, is all too common among high income earners. It is, as they say, easy...

Truth You Need to Open Your Eyes You Do Need and Want to Be Financially Wealthy

You have no idea what you will need or want beyond today. You cannot predict what life will offer down the road for good or for bad. As hard as you may try, you can't predict with any confidence the resources you'll need to deal with life's uncertainties. Complicating everything is the fact that it takes time to grow money. Financial wealth building is not something that can be accomplished in reaction mode. It is really difficult to find more money just because you all of a sudden want or need...

Don and Ryan Zeleznak

Years Investing 30 (7 years for Ryan) Number of Deals in 2004 6 office condo buildings 4 single-family homes 3 condos also building 12 office condo buildings with over 1,400 units (they'll keep and rent 5-10 and sell the rest) Units Owned 100,000 square feet of office space 20 residential rentals 70 acres of commercial land 12 office condo projects 4 commercial projects 2,500 lot golf community and currently building over 1,400 residential homes. Areas of Expertise Real estate syndication (over...

Carlos Rivero Austin Tx Investor

Washer ( 700).The yard needs work, and so you hire a local lawn company to mow and edge, trim the trees out front, and plant some perennials in the front beds ( 200). So far the repairs will cost you 6,450, but to be safe you add 10 percent ( 645) as a contingency factor. The Total Cost of Repair is 7,095. In the Carrying Costs subworksheet we are allowing for three months' worth of these expenses. You have estimated that all the repair work can be done in a month and that it will take a month...

What Investors Are Saying About

The Millionaire Real Estate Investor The Millionaire Real Estate Investor finally brings a book to the real estate investing market that's been missing . . . A real model for success that works in the real world and not just in the bookstore. Gary Keller has captured the essence of the successful real estate investor. If you have the desire and you apply the lessons of The Millionaire Real Estate Investor, wealth and success are sure to follow. , , Fear keeps so many aspiring investors from...

The Buy Hold Worksheet in Action

Let's look at the same 125,000 property using the Terms Worksheet Buy & Hold (see the chart on the facing page). Again, the purchase terms are described at the top of the worksheet, with subworksheets below to get the primary numbers. Since you are following the Millionaire Real Estate Investors' guidance, you will need to get a 20 percent discount on the property ( 25,000) and therefore will offer 100,000 to buy it. You have 28,000 to invest, and so you will be able to put 20 percent down (...

Introduction

Ideas are the beginning points of all fortunes. Are you ready Are you ready to become a Millionaire Real Estate Investor I am a lifelong teacher, and there is one thing I believe to be absolutely true Real learning begins only when the student is open to the message. I've heard many people say, When the student is ready, the teacher will appear, as if this were some strange or mysterious coincidence. The truth is, a teacher is almost always there and learning is simply a matter of the student...

Cash Flow and Equity

If you want cash flow and equity, you have three options for building and attaining them Lease Option, Buy amp Hold, and Buy, Improve, amp Hold. In the game of cash flow and equity, an option that requires little or no money is the Lease Option. By the way, you can Lease Option In, Lease Option Out, or do both. Lease Option In is when you negotiate to lease a property from the seller usually for two to five years with the option to buy at the end of the period at a prenegotiated price. You may...

Overview

A casual player of Monopoly might think that it's a game of chance and that the winner is determined by rolls of the dice. Watching the best players in the world has shown me it's not. The winners are actually masters of strategy and negotiation. They know how to minimize the impact of bad luck and to put themselves in the way of an undue share of lucky breaks. Champions Take the Luck out of the Game Luck. Blind luck, dumb luck, Lady Luck. No matter what you call it, many people believe that...

Buy A Million123

America's First The Five Models of the Millionaire Real Estate Investor 124 The Net Worth Path Your Budget Your Track Your The Financial Equity Cash Flow Your Financial Buy It Right Pay It Down Pay It Off 156 The Network The Three Circles of Your Work Network 159 Working Your Work Network 165 Maintain Your Work Network 167 Engage Your Work Network 169 The Lead Generation Model 171 The Four Key Areas of Your Lead Generation Model 172 Question 1 What Am I Looking For 172 Question 2 Who Can Help...

Leith Seegers Mc Kahan Real Estate Agent

While the research for this book began in the spring of 2004, the idea was born nearly two years earlier when we interviewed Cristina Martinez for our first book, The Millionaire Real Estate Agent. Cristina had built an amazing real estate sales business that generated over 4 million in gross income each year by catering to residential real estate investors. The stories she told inspired us and pointed us down the winding path that ends with these pages. Thanks, Cristina. I'd be remiss not to...