The Five Models of the Millionaire Real Estate Investor

It’s time to learn The Five Models of the Millionaire Real Estate Investor.

Proven models replace the need for experience. Other people’s experience replace the need for yours. With proven models, you get the benefit of learning from the mistakes of other people without having to make them yourself.

You also get to build on their successes. Models inform your activities, help you get the most out of your efforts, and accelerate you towards your goals.

Built with the clarity of hindsight, they answer the all-important question:

“What’s the best thing for me to do?”

There are 5 key models that standout in the world of real estate investing described in the diagram below.

Today, I will discuss The Net Worth Model. Net worth is your worth in financial terms. It’s what you own minus what you owe. It’s your assets minus your liabilities.

The Net Worth Model is a proven plan of action for dramatically increasing your net worth over time. It’s a simple 3 step process.

Step 1: Learn to path of money.

Download the PDF on The Path of Money.

Step 2: Manage your personal budget.

Download the PDF of a Sample Budget.

Download a sample excel budget Form#1 & Form#2

Step 3: Track your personal net worth.

Download the PDF of a Sample Personal Balance Sheet Example.

Download the PDF of a Sample Personal Balance Sheet 2

Download a sample excel net worth Form#3

As a real estate investor, these steps a sacred. Your knowledge of the path of money will continually remind you that you must always make appropriate choices to maximize your returns.

With this end in mind, you will purposely budget your money to maximize the amount you have to invest.

Use the two sample excel budget forms that you downloaded earlier: Form#1 & Form#2

Finally, after you have invested your money, you should consistently measure and review the results you’re getting to maximize your net worth.

You will need additional income to fulfill your financial goal. That’s why I introduced in the first part of this training a clear and easy way to generate multiple streams of income using our community shopping cart and referring your family and friend using the 1-Minute Messenger to build passive unlimited streams of passive (unearned) income. So keep this process going.

You need to budget aggressively and use the passive income you generate from the community store to invest in real estate.

Download the PDF of The 5 Models.

Path Your Money

Money has a path. When a dollar leaves you hand, it begins a critical path down a journey of choices and decisions. These decisions are      the key to building your financial wealth. The map you follow and the guide you must trust on this journey is called The Path of Money.

Download a PDF on The Path of Money.

The Path of Money describe the way money flows in and out of your life. There are sources that start it down it path. Some are strong and others are weak. And the choices you make will both feed and grow it, making it stronger. Or shrink it, making it weaker.

You have to direct your money purposely. Or let your money wander wherever it wants to go.

You must direct your money to the places that will bring you the greatest financial growth and the most substantial net worth.

To path money, you must first have some. And the more money you path, the more money you will have. Therefore getting as much money to path as you can is critical.

There are only 2 ways to get money. You can earn money. Or…You can receive it.

You can earn money from your work. You can receive it from your asset. But if you’re like most people, you will likely start with the money you earn.

But if you have followed my earlier recommendation and you have started building a network using our online store, you should be receiving passive (unearned) income from your activities.

This unearned income will be a great source of money to tap into the real estate game.

So here’s how the game is played?

Once you have money, the path presents you will 4 basic choices:

  • Consume it by SPENDING IT.
  • Save it by HOLDING IT.
  • Share it by DONATING IT.
  • Grow it by INVESTING IT.

Most people get knock out of the game by spending most of their money, hold some it, donate a little of it and invest none of it. For them the game is over. The path ends right here.

However, for you. The game is just begun. You have a bigger end in mind. And you don’t intend to be stopped here. Through intentional budgeting, you will ensure you always have ample money to invest.

This will enable you to stay in the game and move farther down the path. And this is where the game starts to get exciting. When you have money to invest, you have another choice:

  • To loan; or
  • To own

You can lend your money to others for a predetermined rate of return.

OR

You can buy an asset that could go up in value, pay you cash flow or both.

You must determine which season in your life you are in.

  • Do you want to accumulate more wealth?

OR

  • Do you want to protect the wealth you already have?

If you are in the wealth accumulation season of your life, you will want to invest to own.

If you are in the wealth protection season, you will likely want to invest to lend.

With each of these choices, there are 2 basic positions:

  • You can lend or own passively.
  • You can lend or own actively.

Passive lending is mainly a money preservation strategy. The returns you can get from passive lending are relatively low.Why? Because they are usually guaranteed and most of the borrowers will turn around and relend the money. When factored for inflation, passive lending usually does not lead to a significant increase in net worth.

On the other hand active lending where you lend your money to businesses or individuals can bring you higher rates of return than passive lending can.

However, it will require you to be able to lend significant amounts of capital and you will typically not get the benefit of appreciation.

Institutions and wealthy individual investors are usually best suited to take this path.

Asset ownership is on the other side of the path. And this is where big wealth is built. This is where millionaire real estate investors have placed most of their investment dollars to become wealthy.

Buying and owning assets that can appreciate and give them cash flow. But when it comes to ownership, they know that the passive options; things like stocks & real estate investment trusts (REITs) usually don’t build great wealth without insider positioning or great wealth having been invested.

As a result, they usually head straight for active investing in businesses or real estate.

In real estate investing, you will get big upside, small downside, and personal control. And the best news is that this path never has to end.

As money flows from your investments, you will have more money to path…to re-invest…and to build more wealth. The path of money can become the most rewarding, endless loop.

If you want to become a Millionaire Real Estate Investor, you need to learn the path of money gained and play it.

In the next lesson, I will show you a simple and effect way to keep a personal budget and start behaving like a Millionaire Real Estate Investor.

IMPORTANT: Make sure to join our Facebook Group: Building Generational Wealth for Everyday Working-Class People to read what other people are saying about our network and where you can join the conversation.

Post your personal testimonial or feedback on how The 1-Hour Workweek is changing your life.

Until then,

Tarence Wade, M.D. – Founder & Manager
www.the1hourworkweek.com
Email me at tarence@the1hourworkweek.com if you have questions. I will generally respond back within 24 hours.

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