In this article, I will share the millionaire real estate investor book summary by Gary Keller. Everything you need to know for becoming a successful real estate investor in a few years. In his famous quote, Gary Keller he says:
- “Anyone can do it, but not everyone will.”
We shall start from the basics, then a little advance, and at the end, we shall complete the whole book step by step.
Table of Contents
- The Millionaire Real Estate Investor Gary Keller
- Installing the Millionaire Mindset in You
- Are You An Ultimate Investor?
- Why Invest in Real Estate?
- Advantages of Real Estate Investment
- Big Goals, Big Models, and Big Success
- Your Big Model and The Big Habit
- Your Millionaire Real Estate Investment Criteria
- Do the Due Diligence
- Build Your Real Estate Network
- A Small Tip for A Better Investment
- Generate More Real Estate Leads With This
- Get The Money And Start Investing
- Last Words
The Millionaire Real Estate Investor Gary Keller
- In the first step, we shall install the mindset of a millionaire investor.
- Then, a proven method (Big models, Big goals, Big success).
- We shall develop the thinking process of how a successful real estate investor exactly thinks.
- Some core knowledge to get started in the business.
- Then, some quality leads generation techniques.
- We shall analyze the property with some unique Due Diligence methods.
- Collect money to finance our investment via other investors or a bank.
- Now, it’s time to buy the property and use some renovation techniques to make it work as we want.
- Then, we shall decide whether to hold it or to sell it.
- At last, we will find an exit strategy to get out from there with profit.
A complete blueprint to become the millionaire real estate investor step by step according to Gary Keller.
Installing the Millionaire Mindset in You
First, know there are plenty of property investments for you to choose from, don’t hurry and buy wherever you have found on the street, and don’t compete with everyone else, “competition kills profit.”
Choose an empty lane and follow your business criteria with patience, and remember:
- “It’s better to miss a good deal of opportunity than to buy a bad one.”
Sometimes you might think, this investment is not as good as we thought, but we can manage, it shall give me a good return, no never even try to compromise with the investment.
If the investment does not match your criteria, leave it, don’t even think about it, “it’s better to leave a good opportunity than to buy a bad one.” Try to focus on the fact the opinion does not matter.
A famous quote by Warren Buffet:
- “He who can not control their emotion, can not control their money.”
As a beginner, you have limited cash in your bank account, and you can’t waste it. You are not a speculator, not a collector, not an observer but an ultimate investor.
Are You An Ultimate Investor?
There are some differences between an ultimate investor and others as the book the millionaire real estate investor says.
- The Observer: This kind of person loves the idea of real estate investment, but they are an observer, observe everything but buy nothing.
- The Speculator: They are super excited and driven by emotions and think a property always appreciates (goes up in value), but the reality is very different.
- The Collector: Loves the ownership, buys anything. The collector collects every property to make themselves proud that he is the Owner and holds total control over it.
- The Ultimate Investor: A true investor does the business, not driven by emotion or ownership but by facts and the market. They love the opportunity as everybody does, but only the right thing, a thing that will make them a sure profit.
How do they do it? It is what the whole book the millionaire real estate investor is all about.
- But first, you tell me why are you choosing the real estate industry?
Obviously, not for the money, but what exactly, ask yourself.
Why Invest in Real Estate?
Gary Keller first asks you, via his book the millionaire real estate investor, why you want to invest in real estate. You have options to choose from:
- Mutual funds
But you are selecting Real Estate to make your dream life a reality. Can you tell me why?
Because it’s the most ‘ABLE’ investment, you can tough it, feel it, and do whatever you want with it. You will have total control over it, which most other investors do not have.
Advantages of Real Estate Investment
Here are the ten advantages of real estate investment that you can rely upon directly from the book the millionaire real estate investor by Gary Keller.
- Accessible: Anyone can invest in a property.
- Appreciable: It appreciates every year goes up in value.
- Leverageable: You can leverage other people’s money to invest. I mean by using the OPM.
- Rentable: You can rent it out for a monthly cash flow.
- Improvable: It allows you to fix and flip the property by improving something in the house.
- Tax Deductible: The Government is giving you the option, to use Depreciation, Amortization, and Capital gain tax differs (1031 tax exchange in USA and section 54 in India) to reduce your property taxes almost to zero.
- Stable Prices: The value of a house does not go down in one night as we have seen in the stock market or the Cryptocurrency sector. The real estate sector is very different and much more stable than the other investments.
- Liveable: You can live there with your family, and then after some years you can sell it if you want to move somewhere else.
- GDP Contribution: Real estate sector is one of the largest contributors to the GDP. It’s the second largest employment sector in a country after agriculture.
- No Formal Education Required: You don’t need a fancy degree to start a business here. ‘Anyone can do it, but not everyone will.’
But, you have to become an ultimate investor. Kick the Luck out of the game, and create your Luck. Do the necessary research it takes. Find the hidden opportunity everyone is missing by selecting Big goals, Big Models, and Big success.
Big Goals, Big Models, and Big Success
You have heard it many times. Where the book the millionaire real estate investor is in the discussion, people always discuss the big goals, big models, and big success with it.
You have to be specific about what you are trying to achieve, and you know that it’s achievable in about five years or ten years. All you need is a strong ‘WHY’ to support your Big Goal. How strong? Let me give you an example:
Suppose your kid (5 years old) is stuck on the 10th floor of a big building because of a fire. The situation is getting worst. No one can go there to save your kid. The building is full of fire. It can collapse at any moment.
The only way to save that kid is to go through another building via a rope or a big wooden stick. No one is taking that risk to go there, not even the police.
But, you as a father will do everything to save your kid, no matter whether you live or not, you will go through that wooden stick to save your child.
Now you are not seeing anything that you might face along the way. Your focus is on your kid, just your kid, nothing else. There is only one thing in your mind you must save him, no other option. Your ‘WHY’ is huge here. So huge that it can break the whole building for the child. No one can stop you.
That kind of hyper-focus you need in this business. If your ‘WHY’ is not big enough, you will fail, no matter how hard you try. You will fail. But, the question is, how are you going to create that kind of focus? You will use Big models and Big habits.
Your Big Model and The Big Habit
To achieve that goal, you need a blueprint that I am going there this way, as the father decides to go there via the wooden stick. You need that kind of stick, a proven plan for your business.
But, this is not a once-in-a-lifetime work, a habit. A habit kicks you up when you feel low. It will create an attitude to go beyond your limits. A limit is beyond your imagination.
Don’t worry. Time will teach you that if you follow all these carefully. Now let’s create a plan to know what we need to become an ultimate investor.
Your Millionaire Real Estate Investment Criteria
Now move to the most important part of this whole book, the millionaire real estate investor. How to identify the best real estate investment?
- You will use the criteria or the plan, whatever you say.
It’s a blueprint of your investment journey. What kind of property are you trying to buy. What is your preferred area, and what market are you looking for?
All of these you can select by just looking at this criteria list. So the first thing you need to do is to choose a location.
1. Real Estate Location
A great location is the heart of a real estate investment.
- Great location, great profit.
But if the market is not good, then the location is not good. Everything depends on the market condition.
If the market goes up, demand will be high for that location. Otherwise, it will be low. If people are shifting to that place to live, work or do business, that is a good market. Aim for that.
- Everything depends on the market.
A location is just a piece of land. The market is everything.
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. Otherwise, the analysis you will do will be as good as you think like a beginner. And that property can cause damage for you.
If you are an expert, then you go beyond that limit, but at the beginning, 100 miles is a thumb rule. Follow it.
2. Choose A Property Type
Select the kind of property you want to invest in. I mean, select your niche. It could be an Apartment, Single-family Multifamily, Commercial Retail, Land, or a 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 type and then choose the age factor.
3. The Features and Amenities
As you know, the first impression is everything. Just think, what kind of offer you are giving your customer that can not refuse, that no other investor can not provide. Think because that will drive success to you work to help them not to earn some money from them.
4. Check the Economic Factors
It is one of the most important factors. Before you even look at the market, you should focus on the economy. Is it growing or not?
- Bad economy = Bad market = Bad location
So, first economy, then the market, and then the location. Now it’s time to verify your investment terms, or you can call it due diligence.
Do the Due Diligence
Basically, this book, the millionaire real estate investor is a due diligence book if you look closely. Most people neglect the due diligence process. That is why they fail in their investment. First, you know:
- Diligence is the mother of all good luck.
In the due diligence process, you will run some analyses on the property, which are as follows:
- Physical Review of the property
- Legal review
- Title review
- Net Operating Income (NOI)
- Income and Expense review and
- Tax review
With this, you can tell it is a clean investment, and you can buy it. Now it’s time to build a network to get a better understanding. Because real estate is a business, and a business needs a team.
Build Your Real Estate Network
Here you need at least ten people who are experts in their respected field. Without them, you can’t get success. There are more, but these ten are the most important ones according to the book millionaire real estate investor, and they are:
- Real Estate Attorney: There is a big difference between a lawyer and a real estate lawyer. A real estate lawyer who only deals in property knows all property laws. Choose a property lawyer, not a random lawyer.
- Real Estate Broker: broker can make or break your deal. Choose him wisely. Find a broker who is a friend, not a person who wants their commission.
- An Accountant: He will reduce your expenses and taxes.
- Mortgage Broker: Helps you to get the best loan from the best bank.
- Insurance Agent: He will protect your property. He will help you to sleep in peace.
- Home Inspector: Ah, he is an asset. He will help you find what needs to fix and how much money it will take. Plus, how can you renovate it all on a very tight budget.
- Escrow Officer: Helps you to close the deal faster without any dispute between the buyer and seller.
- General Contractor: Help you to renovate the house if needed.
- Architect: For designing purposes.
- Professional Surveyor: Only required if you develop something.
The top five are the most important ones, and the rest you might need someday. Be wise, choose the best one, or be ready to lose your investment.
Before we go further into the lead generation method as Gary Keller discussed in the millionaire real estate investor, let me share a small tip on your journey.
A Small Tip for A Better Investment
Create a personal balance sheet to track your money, income, expense, assets, and liabilities. Which will give you an idea of are you ready to invest in real estate or not?
If you don’t have extra money, don’t invest. Now let’s generate some quality leads for your property.
Generate More Real Estate Leads With This
Okay, who will give you the most leads. Let’s find out:
- From networks: 32%
- Brokers: 28%
- Talking a walk: 10%
- Ads: 9%
- Bank foreclosures: 7%
- Owner: 4%
You can see here how important a network is. Focus on it, try to build a good network, and you will receive quality leads. Lead that will convert.
Get The Money And Start Investing
It’s not easy to finance your investment. Most investors will reject you, but you must stick to it. You have to convince them.
Answer these questions that they will surely ask you:
- Why Should I buy this?
- What is the risk level?
- What is your exit strategy?
Finding the answer is not easy. You need a plan, real-life proof, and data, including all your data in your business plan. Make your presentation more effective. That way, it will help you to convince them.
Now you decide, will you hold it for some time or sell it. Do whatever is necessary.
So the final summary of the book the millionaire real estate investor by Gary Keller looks something like this.
- Change your mindset.
- Set big goals, big models, a big success.
- Become an ultimate investor.
- Focus on your big ‘WHY.’
- Build your criteria, terms, and network.
- Create a personal balance sheet.
- Do the due diligence
- Generate leads.
- Finance the property
- Decide to hold it or sell it.
That’s all for the millionaire real estate investor book summary by Gary Keller. Share the article with your friends. Thanks for reading.