The Millionaire Real Estate Investor

The Millionaire Real Estate Investor Book Summary

Book Review, Financial Education, Real Estate, Wealth Creation

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the millionaire real estate investor, by gary keller

One of my personal goals is to effectively build financial wealth. I own a house I bought back in June 2015, and have had friends and roommates paying me rent for the whole time. This has effectively covered 80% of my mortgage and has been fantastic for me financially. In 2017, as stated in The Mastermind Within goals post, I want to explore buying another property. I’ve just been keeping tabs on the local real estate scene and have to put more work in to ensure I get a good deal.

The Millionaire Real Estate Investor, is consumable, practical and gets you motivated to go out and try to find deals in the market!

Why do I like real estate as an asset class? Real estate is:

  • Accessible – Anyone can buy it
  • Appreciable – Can increase in value over time
  • Leverageable – You can buy on margin and borrow against equity
  • Rentable – Cash flow baby!
  • Improvable – Through sweat equity or contracting out
  • Deductible/Depreciable/Deferrable – Amazing tax benefits

I’m an investor. I’m building financial wealth. Is today the day I find an opportunity and make a deal?

Summary of The Millionaire Real Estate Investor

Like most personal finance books, The Millionaire Real Estate Investor starts out by touching on the “personal” side of personal finance. Keller goes into a number of common myths which most “non-investors” believe as facts. One example of this is investing is complicated and I’m not smart enough to do it. As many of you reading this probably know, investing can be simple if you learn a set of rules and have a system to identify good deals. Investing is a learn-able skill.

Next, Keller gets into his tips on how to become a Millionaire Real Estate Investor. He has a four step framework for real estate investors to master:

  • First, a real estate investor must “Think a Million”
    • If you want to be a Millionaire Real Estate Investor, you must think and dream big.
    • In this section, Keller talks about getting into the investing mindset by emphasizing growing your net worth, defining your why you want to invest and become financially wealthy, and think about taking action.
  • Next, a real estate investor must “Buy a Million”
    • This isn’t as straightforward as it sounds. To be a successful investor, you need to be smart about your purchases. By purchasing at below market prices and having all your criteria met, you can start making money from day 1.
      • “You make money when you buy, not when you sell”
    • This sounds easy, but it will take a consistent effort to understand the values of the properties in your target location, understand the cost of any repairs or problems with the prospects, and make purchases which will make your renters happy.

“You make money when you buy, not when you sell”

  • Next, a real estate investor must “Own a Million”
    • Once you have “bought a million”, it’s time to pay off the debt and build equity in the properties using the cash flow generated.
    • Keller goes through tips on building your network of contractors, property managers, accountants, lawyers, etc. in this section.
      • Ask the two questions with everyone you meet:
        • “Who do you know that I should know?”
        • “What would you do if you were me?”
  • Finally, a real estate investor must “Receive a Million”
    • At the end of the day, you will be at the top of the mountain and be able to “receive a million” in passive income. That is the goal, to be able to sit back and let the rents come in while your property management company does the work for you!

Meaningful Quotes from The Millionaire Real Estate Investor

Here are some meaningful quotes and insights from The Millionaire Real Estate Investor:

  • Life is too big to think small. If you want to lead a big life, your thinking has to lead the way.
  • “Deals aren’t found. Opportunities are found. Deals are made.” – Dyches Boddiford
  • Be an investor, not a collector, a speculator, or an observer.
    • Investing requires action. Successful investing requires the right action. Investors take action, minimize risk, and buy based on investment value.
  • Your criteria should be based on the following factors: price range, discount, cash flow, and appreciation potential.
  • Be a shopper, not a buyer.
    • Be skeptical.
  • Learning has four stages: understanding, knowledge, wisdom, and power.
    • Understanding means you are aware of something; you get it mentally.
    • Knowledge means you have studied it and see how you could do it.
    • Wisdom means you have experienced it and know it works.
    • Power means it has become a part of you and you do it habitually. You are now unconsciously competent.
  • Negotiate everything! (Price, financing costs, closing costs, possession date, etc.)
  • Make associating with talent your number one priority.
  • Get creative with your financing: lease-option, seller financing, wrap, etc.

Action Steps and Takeaways

As with all books I read, I want to be able to takeaway a few points and apply them in my life. Takeaway one is to start building my network of real estate professionals. I’m going to reach out to the agent I used when I purchased my house to chat about his thoughts. Next, I want to define my criteria for a property: a 3 bedroom, 2 bathroom property with a decent lot perhaps? Finally, I want to get in tune with the market in the location I determine most fruitful. The neighborhood near my house would be fantastic to get another place, but the inventory is very tight right now (only 3 houses under $400k in a 3 mile radius circle). Opportunities are out there, I just need to find them!

Focus, driven by motivation, supported by knowledge and skill causes one to take action without a thought about not succeeding. Never underestimate the power of purpose and focus.

My Recommendation

I could write 10,000 words on my notes, thoughts, and findings from this book. Keller has given me a framework to work through when looking to invest in my next property. My next steps after reading The Millionaire Real Estate Investor is to define my criteria, start scouting the market to determine the value of properties in my cross hairs, and finally start networking with other real estate professionals and agents. I recommend The Millionaire Real Estate Investor to anyone looking to build financial wealth using real estate. You won’t regret it.

The Millionaire real estate investor

Readers: Do you currently invest in real estate? Do you want to in the future? What would you recommend I do? Are there any other real estate books which would be beneficial for me to read?

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