In this article, I will share the complete book summary of the millionaire real estate investor according to Gary Keller. Read the article carefully, and you will learn how to invest, generate more leads and make a good profit.
His famous quote says:
“Anyone can do it, but not everyone will.”
We shall start from the basics, then a little advance, and then, we shall complete the whole book step by step.
Here are the few steps you need to take to become a successful real estate investor.
- First, you need to change your mindset.
- Big goals, big models, a big success.
- An ultimate investor.
- What is your big WHY?
- Criteria, terms, and network.
- A personal balance sheet.
- The due diligence
- Generate more leads
- Real estate finance
- Hold it or sell it.
Let’s explore these ten steps in a shorter way.
First, You Need to Change Your Mindset.
As a starter, you have little cash in your bank, you can’t waste it. That is why you must choose the very best property.
Let me tell you if your investment does not match your plan, leave it, don’t even think about it. Remember:
It is better to leave a good opportunity than to buy a bad one.
Focus on the fact the opinion does not matter.
Your Big Goals, Big Models, and Big Success
I want to tell you a story to help you under this concept better.
Let’s say your kid (6 years old) is stuck on the 20th floor of a building because of an explosion. The situation is bad. No one wants to go there. The building is on fire and can collapse at any moment.
The only way to save the child is to go through another building via a rope. No one is taking that risk to go there, not even the officers. But, you as a Father will do everything to save your son. No matter whether you live or not, you will go to that building to save your child.
That kind of focus you need in this business. Yo main focus is to save your child. You see nothing, just our child.
That is what a big goal is. Use this kind of purpose in your business, and success is waiting for you.
Now, Build Your Real Estate Team
You need at least five people who are experts in their fields. There are more, but these are the most important ones.
- Real estate agent
- Insurance Agent
- Attorney
- Contractor
- Accountant
Find these people and offer them to join your team. They will help you to become successful.
Generate More Real Estate Leads
Here is a list of the highest percentage of leads you can get.
- Networks: 32%
- Agents: 28%
- Signs: 10%
- Ads: 9%
- Foreclosures: 7%
- Owner listings: 4%
You see, the network gives you the highest leads. So, build your network first.
Keep these five steps checked while investing
The five best steps to become a millionaire real estate investor, and those are:
- Location selection
- House selection
- A list of Amenities
- The economic factor
- The due diligence
So, let’s start with the best real estate location.
1) Choose A Good Location to Invest
A great location is the heart of your real estate investment. A good location means good business, and good business means good profit.
But there are some rules you must follow before you choose a location.
When you select a location make sure it’s not far from your home or office. It should be within range of about 100 miles from you.
If you are an expert, you can go beyond that limit up to 1000 miles, but at the beginning, 100 miles is a thumb rule. Follow it and buy a house near you.
2) Choose A Type of House You Want to Buy
Select the kind of property you want to invest in. I mean, select your niche, an Apartment, Single-family Multifamily, Commercial Retail, Land, or Plot.
Choose what exactly you like the most. What might suit you as an investor? And after that choose the classes also. For example:
- Class A: 10 years or less old
- Class B: 10- 20 years old
- Class C: 20 -30 years old
- Class D: 30+ years old
That will determine the budget and the investment opportunity for you. Choose a certain type and then choose the age factor.
3) The Features and Amenities of That House
As you know, the first impression is everything. Before you do anything, make that property look amazing, filled with amenities. Offer your clients something that no other investor can. Something unique.
Because that will drive more and more traffic to you. Focus on the service, help them find the right house, not just force them to buy anything. Become a friend and help them as every millionaire real estate investor does.
4) Check the Economic Factors Before Spending A Penny
This is the most important factor in real estate. Before you even look at the market, you should focus on whether the economy is growing or not. Because:
Bad economy = Bad market = Bad location
The demand and supply are everything in real estate. Here are some metrics to analyze the demand in any market.
Sighs of Low Demand
- Occupancy rates are low
- More Advertisements
- Big discounts on Apartments
- Free rental for six months
- No new construction
Sighs of High Demand
- Occupancy rates are high
- Fewer advertisements
- No discount on flats
- No incentives for rental
- More buildings are developing
Alt these facts are related to demand and supply. Check these factors before you choose a house to invest in.
5) Do Your Due Diligence and Buy It
Now it’s time to do the due diligence, the research. There are five things you should there in this process to know how good the house is, and those are:
- Physical review
- Legal review
- Title review
- Tax and account review
- Third-party report review.
Most professional real estate investors use these five metrics to know the ins and outs of a house, is it worth buying, and will make a profit from it?
Whatever you do, never miss these five. Otherwise, you will face many disputes in the future, and your investment will suffer a lot.
Get The Money And Invest
It is not easy to get the money for your investment. Most will reject you, but you must stick to it. Knock every door possible and show a plan to maximize their revenue. You must go on until you get the money.
Remember, you must show them how you will double their money. Because that is what those people want. They want their money back as soon as possible. Just show them the plan, and they will be happy to give you the money.
Plus, you have an advantage here in the real estate business. Most investors will prefer to buy real estate than gamble on a stock that they might lose everything in it. For some people, real estate is far more secure than any other investment. That is why they will finance your investment. Buy it depends on how you convince them.
Last Words
Investing in real estate is easy if you know what you are doing, but it can be frustrating if you fail to find a great opportunity to buy a house. As Gary Keller said:
Anyone can do it, but not everyone will.
The question is, will you?
So, that is all for the book summary the millionaire real estate investor by Gary Keller. I hope you liked the book summary. If you want to know more about real estate as a beginner please follow us.
More articles are coming, stay tuned. Thanks for reading.