Here are comments on the book:
How does one become rich through real estate? Author Gary Keller, founder of the largest real estate franchise system in the world, Keller Williams Realty International, states that you need to adopt an investor mentality and develop deep domain knowledge. A reoccurring message throughout this book is that in order to succeed in real estate, you need to first pick a niche that you’re interested in and consistently follow it. Through deep domain knowledge, you’ll develop mastery. Through mastery comes profits. This is exactly how the great investor Warren Buffett thinks; he only invests within his “circle of competence”. Only invest in what you are knowledgeable in. Points that I’ve taken away are:
1. When buying real estate, always consider the “3 forces of real estate”, criteria, terms, and network, and stick to them. These are known as the “Dynamic Trio of Investing”.
2. Adopt an investor mentality rather than a consumer mentality. In order to build wealth and make your money work for you, you need initial capital. In order to acquire capital, you need to save for it. “You can’t let the media and advertisers set your values for you. Just as kids sometimes decide what to eat based on television commercials, adults tend to let the media convince them what they should spend their money on if their financial decisions aren’t guided by a stronger compass. Don’t get caught up keeping up with the Joneses. The faster you reach a position where you can begin your investment career, the faster you’ll be able to achieve financial independence.” One of the best lessons I’ve ever learned is to minimize RRD (things that rust, rot, and depreciate) spending as that’s a consumer’s mentality, not that of an investor’s.
3. To elaborate further on acquiring deep domain knowledge, timing plays a significant part towards your success. The key to success is buying low and selling high. The challenge however is knowing when to buy. By consistently learning about the market, you’ll have a better understanding of the timing. “Timing isn’t about being in the right place at the right time; it’s about being in the right place all the time.“
4. This quote in the book really resonated with me: “Charity is a kind of capital investment for the soul that pays real dividends in your life and the quality of all life.” I can’t explain how or why it works, but every single time I donate to charity, I somehow make it back and with even more than what I had donated. Try experimenting with giving to charity and see if it happens to you as well.
5. Learn to leverage debt for equity. “A person may have put down only $30,000 on a $150,000 house. If that leveraged property has appreciated 6.1 percent to $159,150 the $9,150 gain should be weighed against the $30,000 invested, not the $150,000 price. A gain of $9,150 on $30,000 translates to 30.5 percent rate of return on the investment! Because real estate is leverageable, Millionaire Real Estate Investors know they can achieve rates of return not commonly seen with other investment vehicles.“
By Ryan Lee
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Thank you for reading! Please comment below on which point resonated with you the most or if you have a story to share. If not, please leave a comment below about a book that you’re currently reading or a book that you suggest and your takeaways from it as I’d love to read your comments! Please join my Facebook group here follow my Twitter here like the post, or share it.