If you want to become a millionaire to secure your financial future, it’s time to start investing some of your passive income into the world of real estate.
Over the next several months, I’m going to teach you how to think like a Millionaire Real Estate Investor.
I credit my real estate investing education to one of the greatest mentor in real estate industry. His name is Gary Keller.
Gary Keller is the founder of Keller Williams Realty, an international real estate franchise with headquarters in Austin, Texas.
It is one of the largest real estate franchise in number of agents and sales volume in the world with more than 1,060 offices and 183,000 associates.
Mr. Keller teachings helped me opened my eyes to the true nature of real estate investing. The stuff that I’m about you teach you is what I have learned from Mr. Keller.
In essence, I’m going to apply his strategies in such a way you can invest the passive income you are earning from the 1 Hour Workweek to become a Millionaire Real Estate Investor.
So let’s begin.
To become a Millionaire Real Estate Investor, you must focus on 3 simple but incredible dynamic forces that are at core of all investing.
They include Criteria, Terms & Network or commonly called CTN. These are the dynamic trio of investing.
Criteria (What you buy?) – This describes what you buy or what type of property you are looking for.
- Is the property a single family or multi-family?
- What’s the construction?
- Does it have the right features and amenities that make it attractive for re-sell or rental?
- Where is it located? (location…location…location is the most important criteria)
Your Criteria are the aspects of the property that are immutable facts. These are the things that can’t be negotiated away. They are a foundational piece of your investment strategy. Criteria will narrow your choices to the ones that will present the greatest opportunity and least amount of risk. It’s like having a filter that keep out the bad and let in the good. It’s all about identifying predictable value.
Terms (How you buy it?) – This define how you turn the property into a deal. It determines the property value now and for the future. It’s the negotiable aspects of your purchase.
It includes the…
- Offer price
- Down payment
- Interest rates
- Closing cost
- Other costs
It’s about how much money you need to acquire a property and close a transaction. And how much a property will yield over time. The terms are about maximizing financial value.
Network (Who will help you?) – You can accomplish more with the right help than you can working alone. This include real estate agents, contractors, handyman, home inspectors, property managers, etc.
Mastering these 3 areas will give you the greatest chance for long-term success and place you on the path to becoming a Millionaire Real Estate Investor.
The path to becoming a Millionaire Real Estate Investor involving moving through four stages. These four stages will manifest inside the triangle created by the dynamic trio: Criteria, Terms & Network
Four Stages of Growth
STAGE 1: Think a Million – first you must learn to think like a Millionaire Real Estate Investor before you get started. How you think matters. The bigger you think, the more you can accomplish. Whatever you hold in your mind will show up in your life. Leaning to think like a Millionaire Real Estate Investor will give you the greatest chance of becoming one.
STAGE 2: Buy a Million (assets) – I’m going to show you a proven model for investing in real estate. This mean you’re going to learn how to make money and ways you can lose it. The goals is to equip you with the model you need to purchase investment properties with a market value of a million dollars or more.
Believe it or not, this is not the huge leap you might imagine. Many investors reach this mark long before they expected they would.
In fact! In 2020, I purchased 4 single family properties that exceeded a market values $1,015,000. I didn’t really think about it. It just happened during the process of purchasing properties.
That’s right! You will have a chance to do this on your own, or you can even partner with me, with minimal out of pocket investment, until you feel you’re ready. It will be your choice with zero pressure.
Buy a Million (equity) – is about the fundamental of acquiring properties. Holding them. And in some cases, selling them. Buy a Million applies the power of Criteria, Terms and Network to launch your career in real estate investing.
STAGE 3: Own a Million – this is when your investment will blossom into a bonafide business.
STAGE 4: Receive a Million (annual income) – when you’re in a position to receive an annual income of a million dollars from your investment.
The Law of Momentum: Compounding your Success.
Let me start by saying that everything BIG start small. When you start investing for the first time, you may feel that it’s going to take forever for your investment to amount to anything.
When you do your first investment, you may find it difficult to justify the time, money and effort for the returns you can see. It may seem like madness to look for a rental property that may only yield a couple hundred dollars a month.
These short term benefits just don’t seem to balance out the short term sacrifices. I strongly encourage that you step past that short term thinking. And look at the larger implication of small investments. What must be understood is that there is a natural growth curve to momentum. Think of a ball rolling downhill that pick up mass and speed as it goes. It’s what we commonly call the snowball effect.
Although it might start out small or slow it ends up growing quite big and fast. In the same way, money once invested has its own momentum. The technical name for that is called compounding. What starts small and grows slowly builds in size and momentum over time.
Because of the power of compound interest, it’s better to have a single penny that doubles everyday for a month versus $1 million up front.
If you took a single penny and doubled it everyday, by day 30, you would have $5,368,709.12.
Download this example (See figure 15)
However, it’s important to note that it’s all about the power of doubling – if you asked the same question, but changed the doubling time to just 27 days, you would only have $671,088.64.
Any form of investing is about putting your money to work and letting it work for you over time. Real estate investing is no different. What distinguish it from other investments is that the original value of your asset tends to be large. And through the magic of leverage can be purchased for less.
For example, if you bought a $100,000 investment house each year by putting $10,000 down and achieved only a modest 5% rate of return on the total value of the assets, you will be a millionaire in less than 10 years.
With each asset you add to your portfolio, your portfolio grows. As your investment grow, so does your buying power. And your investment knowledge. That’s the foundation for bigger and ever increasing investment.
No matter what your current position in life is, financial wealth is available to you. No matter how little money or knowledge you have in the beginning, a great ending is possible for you. The trick is to get started. And then let the power of growth on growth take you higher. The longest journeys are just an accumulation of small steps.
The tallest building is built by placing block upon block. If you’re ready to take the next step on your journey to financial wealth and if you believe that it’s both possible and probable for you to leave your past mindset of poverty behind then keep listening. And begin thinking like a Millionaire Real Estate Investor.
It is now 6 week and 5 days since you began your quest to eliminate your $300 to $500 monthly debt.
You are using The 1-Minute Messenger as your keystone habit.
You are taking advantage of your surroundings to make it easy to invite others by making copies of your bill, along with your daily affirmation, and taping it to a table where you like to sit and drink coffee in the morning or a room you like to hangout in daily.
You continue to be the type of person who can achieve the things you want to achieve with identity-based habits.
You are employing the 1 Percent Rule to maintain a 1 percent advantage over everyone else by working just a little bit harder.
That means you are performing 120 to 240 1-minute invites weekly using the 1 Minute Messenger to grow your wealth-building network of partners.
You are using automation to work in your favor to make your good habits inevitable and your bad habits impossible, rather than relying on willpower in the moment.
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In the next lesson, I’m going to start out by breaking down each of the four stages of growth. Each stage requires lots of details to fully understand the concepts.