Uploaded byBenjamin Bach
MREI
The document discusses the path to achieving financial independence through real estate investing. It outlines seven ways that millionaire real estate investors think, including having a big "why" motivation and thinking in terms of net worth, real estate opportunities, and taking action. It also describes the foundational models that millionaire investors use, such as developing a support network, generating leads, acquiring properties using defined criteria, and understanding how to analyze deals. The overall message is that through applying proven investment models one can achieve financial wealth without relying solely on employment income.
MREI
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- 3. Financial Wealth (fĭ-năn shЭl, wĕlth) n. The unearned income to finance your life mission without having to work.
- 4. The Millionaire RealEstate Investor is dedicated to the men and women who have a passion for their work and yet dream of someday achieving financial independence, of someday being able to finance their mission in life without having to work. This book is dedicated to all those who want the biggest life possible, who are actively seeking ways to finance that vision, who want to go as far as possible with as few roadblocks as possible, and who want to say that at the end of the day, “I’m glad I did” instead of “I wish I had.”
- 5. THE POWER OFPROVEN MODELS OVER TRIAL AND ERROR Trial & Error Appears on Page 20 Where You Begin with Action Based on Personal Experience Where You Begin with Action Based on Proven Models Your Highest Level of Achievement Your Natural Ceiling of Achievement
- 6. THE FOUNDATIONAL MODELOF THE MILLIONAIRE REAL ESTATE INVESTOR Receive Own Buy Think Appears on Page 33 CRITERIA TERMS NETWORK Supports Your Deals Identify Potential Deals Determine the Real Deals
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- 8. EIGHT MYTHUNDERSTANDINGS BETWEENYOU AND FINANCIAL WEALTH Three Personal Myths Myth : I Don’t Need to Be an Investor — My Job Will Take Care of My Financial Wealth Truth : Yes, You Do Need to Be an Investor — Your Job is Not Your Financial Wealth 1 Myth : I Don’t Need or Want to Be Financially Wealthy — I’m Happy with What I Have Truth : You Need to Open Your Eyes — You Do Need and Want to Be Financially Wealthy 2 Myth : It Doesn’t Matter If I Want or Need It — I Just Can’t Do It Truth : You Can’t Predict What You Can or Can’t Do Until You Try 3
- 9. EIGHT MYTHUNDERSTANDINGS BETWEENYOU AND FINANCIAL WEALTH 1 Myth : Investing is Complicated Truth : Investing is Only as Complicated as You Make It 5 Myth : All the Good Investments are Taken Truth : Every Market has Its Share of Good Investments Five Investing Myths Myth : The Best Investments Require Knowledge Most People Don’t Have Truth : Your Best Investments Will Always Be in Areas You Can or Already Understand 2 Myth : Investing is Risky — I’ll Lose My Money Truth : Investing, by Definition, is Not Risky 3 Myth : Successful Investors are Able to Time the Market Truth : In Successful Investing the Timing Finds You 4
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- 11. THE SEVEN WAYSMILLIONAIRE REAL ESTATE INVESTORS THINK Think Powered by a Big Why Think Big Goals, Big Models, and Big Habits Think Money Matters Think Net Worth Think Real Estate Think Value, Opportunity and Deals Think Action Appears on Page 78
- 12. THE BIG WHYWhy Appears on Page 81 Why Personal Growth “ I want to be the best I can be” Why My Big Why Why Why Why
- 13. BIG GOALS, BIGMODELS & BIG HABITS Big Goals — The specific, measurable targets that fulfill your Big Why. Big Models — The proven systems and strategies for reaching your Big Goals. Big Habits — The consistent actions and right choices that come from following Big Models. Appears on Page 86
- 14. THE MONEY MATRIXConsumption Cash Cash Flow Capital Consumption Capital Shadow Wealth is built on CONSUMPTION and CASH YOU WORK for money! Cash Flow Cash Appears on Page 89 Financial Wealth is build on CAPITAL and CASH FLOW MONEY WORKS for you!
- 15. REAL ESTATE A MOST “ABLE” INVESTMENT Accessible – Anyone can buy it Appreciable – Increases in value over time Leverageable – Buy on margin & borrow against equity Rentable – Cash Flow! Cash Flow! Cash Flow ! Improvable – Sweat equity Deductible/Depreciable/Deferrable – Great tax benefits Stable – Slow to rise & slow to fall Liveable – Shelter in more ways than one…. Appears on Page 99
- 16. THINK VALUE, OPPORTUNITY& DEALS Make Deals Know Value Find Opportunity Appears on Page 111
- 17. Think Action OObserver S Speculator S Collector I Investor Action High Risk High Return Low Risk Low Return No Risk No Return Minimum Risk Maximum Return Inaction Appears on Page 117 Action Inaction
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- 19. THE FIVE MODELS– KEY AREAS Financial Model Understand the Triple Benefits of Real Estate: Cash Flow Appreciation Debt Pay Down 2 Network Model Network for Knowledge, Leverage and Leads Build your Investment Dream Team 3 Appears on Page 126 Net Worth Model 1 Learn the Path of Money Budget for Investments Make Investments & Track Net Worth Lead- Generation Model Establish your Criteria Prospect & Market for Real Estate Investment Opportunities 4 Acquisition Model Master Terms for Making Offers and Closing Deals Buy & Sell Buy & Hold 5
- 20. Net Worth Model1 Learn the Path of Money Budget for Investments Make Investments & Track Net Worth
- 21. HOW A CONSUMERSEES THEIR BUDGET CONSUMER’S PERCEIVED BUDGET Confuses Discretionary Spending with Required Spending Which is why they “just can’t afford to invest….” CONSUMER’S BUDGET Investment Spending Income Taxes Required Spending Discretionary Spending Appears on Page 134
- 22. HOW AN MILLIONAIREINVESTOR SEES THEIR BUDGET Considers Investment Spending to be Required Spending. Which is why they “always have money to invest.” MILLIONAIRE INVESTOR’S BUDGET MILLIONAIRE INVESTOR’S PERCEIVED BUDGET Investment Spending Income Taxes Required Spending Discretionary Spending Appears on Page 135
- 23. The Financial Model2 Understand the Triple Benefits of Real Estate Cash Flow Appreciation Debt Pay Down
- 24. THE FINANCIAL MODELPART ONE: EQUITY BUILD UP Buy It Right Pay It Down Pay It Off Appears on Page 146 Equity Investment Debt MARKET VALUE Equity Investment Debt MARKET VALUE Equity Investment MARKET VALUE Equity Investment Debt MARKET VALUE Price Appreciation Debt Pay Down Equity Build Up + =
- 25. THE FINANCIAL MODELPART TWO: CASH FLOW GROWTH Buy It Right Pay It Down Pay It Off Rent Appreciation Debt Pay Off Cash Flow Growth + = Appears on Page 149 RENT Vacancy & Expenses Cash Flow Vacancy & Expenses Debt Service RENT Cash Flow RENT Vacancy & Expenses Debt Service Cash Flow RENT Vacancy & Expenses Debt Service Cash Flow
- 26. The NetworkModel 3 Network for Knowledge, Leverage and Leads Build Your Investment Dream Team
- 27. THE MILLIONAIRE REALESTATE INVESTOR’S WORK NETWORK MILLIONAIRE REAL ESTATE INVESTOR INNER CIRCLE SERVICE CIRCLE SUPPORT CIRCLE Attorneys Accountants Lenders Real Estate Agents Property Managers Contractors Mentors Title Companies Landscapers Insurance Agents Cleaning Services Maintenance Technician Appliance Rentals Appraisers Inspectors Leasing Agents Lawn Service Builders Developers Courthouse Clerks Investors Masons Roofers Plumbers Concrete Companies Painter Flooring & Carpet Electrician Carpenter Financial Planners Partners Consultants Appears on Page 159
- 28. Lead Generation Model4 Establish Your Criteria Prospect & Market for Real Estate Investment Opportunities
- 29. THE LEAD GENERATIONMODEL FOR INVESTMENT PROPERTIES Separate Suspects from Prospects 4 Identify the People who can connect you to Properties that meet your Criteria 2 Have Clear Criteria for the Property you want to Invest in 1 Systematically Lead Generate for Properties and People 3 WHAT WHO WHICH HOW
- 30. WHAT AM ILOOKING FOR? Location Type Economic Condition Construction Features Amenities 1) What You’ll Consider 2) What You’ll Buy Two Kinds of Criteria Have Clear Criteria for the Property you want to Invest in 1
- 31. MILLIONAIRE REAL ESTATEINVESTOR’S CRITERIA WORKSHEET Appears on Page 184 TYPE Single Family Home Condo Town Home Mobile Home Zero Lot/Garden Small Multi Family Duplex Fourplex Large Multifamily/Commercial Land/Lot New/Preconstruction Resale Urban Suburban Exurban Rural Resort/Vacation Farm/Ranch ECONOMIC Price Range From $______ To $______ Discount ___% Cash Flow $______ / Mo Appreciation ___% /Yr LOCATION Country State/Province Taxes Rentals Laws Weather County/Parrish City/Town Taxes Services Neighborhood School District Crime Transportation Shopping/Recreation Street Traffic Size Lot Zoning Adjoining Lots Lot Size Trees Privacy Landscaping Orientation/View
- 32. How Millionaire RealEstate Investors Find Opportunity Networking Real Estate Agents/MLS Driving/Walking Newspaper & Ads Foreclosure Listings For Sale By Owners Internet/Database Research Targeted Marketing Other 32% 28% 10% 9% 7% 4% 3% 2% 5% Appears on Page 198
- 33. WHICH PROPERTIES ARETHE REAL OPPORTUNITIES? Separate Suspects from Prospects 4 Qualify all Suspects Focus only on Prospects
- 34. THE LAW OFNUMBERS 30 Appears on Page 216 1 3 10 Consider Look At Offers Buy
- 35. The Acquisition Model5 Master Terms for Making Offers & Closing Deals Cash Building Cash & Equity Build up
- 36. THE ACQUISITION MODELOF THE MILLIONAIRE REAL ESTATE INVESTOR Volume CASH Profit Margin Volume CASH FLOW & EQUITY Profit Margin Your Cash-Building Platform Your Wealth-Building Platform Find & Refer 1 Control & Assign 2 Buy & Sell 3 Buy, Improve & Sell 4 Lease Option 1 Buy & Hold 2 Buy, Improve & Hold 3 Appears on Page 222
- 37. After Repair Value(ARV) $ Fast Sell Factor – $ % Fast After Repair Value (FARV) = $ Discount/Profit – $ % 1 Cost of Purchase (COP) – $ 2 Cost of Repair (COR) – $ 3 Carrying Costs (CC) – $ 4 Cost of Sale (COS) – $ Purchase Price = $ Amount Financed – $ Total Investment = $ 1 Finder's Fee $ Inspection + $ Closing Costs + $ Total Cost of Purchase = $ 2 Cosmetic Minor + $ Cosmetic Major + $ Structural + $ Fixtures/Appliances + $ Landscaping + $ Contingency Factor + $ % Total Cost of Repair = $ 3 Taxes + $ Fees/Insurance + $ Utilities/Services + $ Debt Service + $ Property Upkeep + $ Total Carrying Cost = $ 4 Agent Commissions + $ Home Warranty + $ Title Insurance & Fees + $ Buyer Closing Costs + $ Total Cost of Sales = $ Operating Terms Purchase Terms Cost of Purchase Sub-Worksheet Cost of Repair Sub-Worksheet Carrying Costs Sub-Worksheet Cost of Sale Sub-Worksheet Terms Worksheet TERMS WORKSHEET: BUY & SELL
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- 39. Big Why BigGoals Understand & Path Money Become An Investor Learn Real Estate Market Prospect Build & Work Database Market Leads Interview Sellers Engage Network Inspect Properties Make Offers & Negotiate Terms Acquire Deals Evaluate Results Build Network Define Criteria PUT IT ALL TOGETHER Get Motivated Acquire Knowledge & Focus Generate Leads Convert Suspects To Prospects Buy Real Estate Gain Insight
- 40. How can wehelp? Answer your Questions www.millionairesystems.com to download the forms we talked about THANK YOU FOR COMING!