One of the first books I've read on the subject of real estate investing is The Millionaire Real Estate Investor. The section entitled Think a Million resonated with me and I wanted to document my summary of Gary's seven points:
- Think powered by a big why – What are the things in your life that motivate you the most? Do not focus on short-term sources of motivation. Think of the big picture. Are you motivated to achieve financial freedom?
- Think big goals, big models, big habits – We tend to set the bar too low in terms of goal setting. Big goals are specific measurable targets that meet the big why. Big models mean we should learn and execute proven systems nd strategies for reaching your big goals. Big habits are the daily consistent actions and choices that result from following the big models.
- Think money matters – You can work for money or have money work for you. The goal of Gary's book is to get you on the path to passive income as quickly as possible. Change your thinking from being a consumer to being an investor.
While investors see money as an opportunity to invest, consumers see money primarily as an opportunity to spend.
- Think net worth – Net worth is your capital minus your expenses. As a general rule, investing makes your net worth go up and consumption makes it go down. How much faster would your net worth grow if you owned more real estate? How fast would it grow if someone else was paying down the mortgage?
- Think real estate – The US government rewards real estate investors with such benefits as allowing for real estate to be deductible, depreciable, and deferrable. The tax system rewards this behavior.
Our research and experience show that no other investment has had as consistent and powerful an effect on the average person's net worth as real estate ownership.
- Think value, opportunity and deals – Look at a lot of real estate. The more you look at properties the more your sense of value becomes accurate and internalized.
- Think action – Once you understand true value, take action on the deals. There comes a point where too much analysis leads to paralysis. At some point you need to jump in, get started, and learn while you invest.
The last point is something I still need to determine. By nature, I am the person who analyzes every situation, often dragging my heals and missing opportunities. My wife, on the other hand, is more impulsive. There likely needs to be a healthy balance there. So, what do I need to learn? A lot. When will I be ready? I do not know. Perhaps first I will determine how to move 401K monies into a self-directed 401K so I can invest in real estate, then work with a turn-key solution to get my feet wet.
What motivated you to finally pull the trigger? – @gumshoeonline