Re-Blogged from Keller Williams
Investing in real estate is an effective avenue to help grow your wealth. But, before you invest in real estate – or advise your clients to do so – there are several concepts you need to understand. Keller Williams Co-Founder and Chairman of the Board Gary Keller explores the fundamental truths of real estate investment and the models that drive it in The Millionaire Real Estate Investor. He proves that investing can be done easily if you follow the models, strategies and systems laid out for you.
Debunk investment myths.
In the process of completing the book, Keller and his colleagues interviewed Millionaire Real Estate Investors and found that a clear pattern emerged. At one time or another, these high-achieving investors had to confront a fear or persistent doubt that later proved to be unfounded. It is fear and myths that hold people back from financial freedom. As the real estate expert, it is YOUR responsibility to recognize your clients’ fears and, with compassion, move them from fear to confidence through education and support.
Myth #1: 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.
It is almost epidemic how many people think they don’t need to be an investor. Usually that happens because they believe consciously or unconsciously that the path to financial wealth is through one’s job. It is highly unlikely that your job creates enough income for you to set aside a manageable percentage and, at an average rate of interest, still achieve true financial wealth. Prosperity can provide a false sense of security. People may overspend and underinvest to the point that they wake up one day and realize they are on the downslope of their primary income-earning years and their lifestyle is about to come to an end.
Myth #2: Investing is complicated.
Truth: Investing is only as complicated as you make it.
Here’s the truth: Investing is complicated. But, to be fair, almost anything taken as a whole can appear more complicated than it really is. Take your car. You don’t have to be a mechanic or an engineer to drive it, right? Of course not. All you have to know are the basic rules of the road and how to drive. Investment is no different. The trick is to take a step back and identify the aspects that matter most.
Myth #3: The best investments require knowledge most people don’t have.
Truth: Your best investments will always be in areas you can or already understand.
One of the greatest lessons I’ve learned about investing is this: Investing in what you don’t know isn’t investing at all. To me, the real nature of investing is always to invest in what you know and fully understand. Choose an area that you already know or one that greatly interests you and commit to becoming an expert in it over time.
Myth #4: Investing is risky – I’ll lose my money.
Truth: Investing, by definition, is not risky.
Great investors do not think of investing as risky. For them, it’s not about ignoring risk; instead, it’s about following sound investment principles and models. By doing that, they take risk out of the game. Investing like a Millionaire Real Estate Investor isn’t about taking risks. It’s about having sound criteria, the patience to find the opportunity, and a willingness to take the correct action quickly.
Myth #5: It doesn’t matter if I want or need it – I just can’t do it.
Truth: You cannot predict what you can and cannot do until you try.
There’s no way for you or anyone else to know your true financial potential. And, because your true financial potential is unknown, it makes no sense to place limits on it. “I can’t do it” becomes another rationale for not trying, for not stretching, for not exploring your potential.
Invite your clients to an MREI workshop or host your own.
Once your clients show an interest in investing, invite them to an MREI workshop. Or, better yet, host your own. An MREI workshop is designed for entry-level investors and comes with several benefits. It dives deep into the principles and models outlined in The Millionaire Real Estate Investor, allows you to consult with your clients on a higher level, and serves as an effective lead generation source that opens up new avenues of business for you!
Before your workshop:
- Be fully aware of your market: the numbers regarding pricing trends, rental rates, flipping opportunities, and relevant investor strategies particular to your local area.
- Leverage The Millionaire Real Estate Investor, FLIP, and other resources provided by KellerINK. On the KellerINK website, you’ll find the MREI personal budget, criteria worksheet and investor workshop presentation!
- Collect attendance information.
- Invite your sphere, farm, the general public, other agents and their clients.
After your workshop, follow up with attendees right away to offer your support in their investment journey and, ultimately, get the appointment!
Tips for hosting your own workshop:
- Offer the seminar as a gift to every buyer and seller consultation you give.
- To reduce costs, connect with a lender or local property management company to sponsor the event for you.
- As the seminar gains more traction, begin hosting it at the same day/time every week or month for consistency.
As you introduce more and more people to the power of investing, you will quickly earn the reputation of an “investor expert” and business will flow your way in the form of referrals. You will also spark the interest of potential recruits and grow your downline.