"The Millionaire Real Estate Investor" By Gary Keller

"The Millionaire Real Estate Investor" is one of my favorite books. It (along with the sister book FLIP!) are must reads and I will be keeping my copies close because they are filled with useful information and charts.

 

Keller speaks of five models to get started and "buy a million." which are of interest for beginners. They are the net worth model, financial model, network model, lead generation model, and acquisition model:

 

1) Net Worth Model:

* Learn the Path of Money - Money has a path and you must guide it to the places that will yield the greatest financial growth and most substantial net worth.

 

* Budget for Investments - Stay on the path, differentiating between what you want and what you need. Make a personal budget.

 

* Track personal net worth - Keep a household P&L and balance sheet to track net worth over time. Examine in often (Note: I have started doing this and it is very inspiring!)

 

2) Financial Model:

* There are two ways to build wealth by investing in real estate:

Equity Buildup and Cash Flow Growth

 

*Equity Buildup - increases your net worth in your real estate assets and comes form the twin forces of price appreciation and debt paydown.

 

*Cashflow Growth - provides a stream of unearned income.

 

* Adopt the motto "Buy it right, pay it down, pay it off"

 

3) Network Model:

* Your Work Network is your investing lifeline. Build it by bringing together a powerful group of people who can play the right roles at the right times so you can achieve your financial dreams.

 

4) Lead Generation Model:

* To find great investment properties, you need leads, lots of them. The lead generation model informs your property search and powers it, and is one of the main ways you can take luck out of the investing game.

 

* The Lead Generation Model is built around four core questions:

 

*What am I looking for?

*Who can help me find it?

*How will I find property or the people connected to it?

*Which properties are the real opportunities.

 

5) Acquisition Model:

*By following the Acquisition Model and buying right, you virtually guarantee the success of your investments. Make money going in.

 

The acquisition model covers buying right and buy/sell versus buy/hold strategies.

 

There is much more information in the book worth reviewing.

 

Biggest takeaway: The work network is critical to real estate investing. It contains:

 

Leadership: Consultants, Partners, and Mentors.

 

Support, Advice and Management: Property managers, attorneys, lenders, real estate agents, investors, accountants, and contractors..

 

Service Providers: Courthouse clerk, Masons, Plumbers, Roofers, Concrete companies, Insurance Agents, Financial Planners, Developers, Landscapers, Title Companies, Appraisers, Inspectors, Leasing Agents, Builders, Appliance Rentals, Cleaning Services, Lawn Services, Flooring & Carpet, Carpenter, Electrician, Painter, and Maintenance Technician (handyman).

 

Gary Keller's website is KellerINK.com

 

Casey Richards

Rutland, Vermont

 

Note: The book "Hold" from the same series I found un-useful and rather plain when compared to the others in the series. Avoid HOLD, but invest in both Flip! and The Millionaire Real Estate Investor.

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