Financial Wealth

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• Financial Wealth
• (fi-nan sh?l, welth)

n. The unearned income to finance your life
mission without having to work.
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• The Millionaire Real Estate 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, Im glad I did instead of I wish I
  had.

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THE POWER OF PROVEN MODELS OVER TRIAL AND ERROR
Appears on Page 20
Where You Beginwith Action Basedon Proven Models
Where You Begin with Action Based on Personal
Experience

Trial Error
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THE FOUNDATIONAL MODEL OF THE MILLIONAIRE REAL
ESTATE INVESTOR
Appears on Page 33
Identify Potential Deals
CRITERIA
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THE FOUNDATIONAL MODEL OF THE MILLIONAIRE REAL
ESTATE INVESTOR
Appears on Page 33
Determine the Real Deals
CRITERIA
TERMS
NETWORK
Supports Your Deals
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THE FOUNDATIONAL MODEL OF THE MILLIONAIRE REAL
ESTATE INVESTOR
Appears on Page 33
Receive
CRITERIA
Own
TERMS
Buy
Think
NETWORK
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• Overcome Your
• MythUnderstandings

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EIGHT MYTHUNDERSTANDINGSBETWEEN YOU AND
FINANCIAL WEALTH
Three Personal Myths
1
Myth I Dont 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
2
Myth I Dont Need or Want to Be Financially
Wealthy Im Happy with What I Have Truth You
Need to Open Your Eyes You Do Need and Want to
Be Financially Wealthy
3
Myth It Doesnt Matter If I Want or Need It I
Just Cant Do It Truth You Cant Predict What
You Can or Cant Do Until You Try
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EIGHT MYTHUNDERSTANDINGSBETWEEN YOU AND
FINANCIAL WEALTH
Five Investing Myths
1
Myth Investing is Complicated Truth Investing
is Only as Complicated as You Make It
Myth The Best Investments Require Knowledge
Most People Dont Have Truth Your Best
Investments Will Always Be in Areas You Can or
Already Understand
2
Myth Investing is Risky Ill 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
5
Myth All the Good Investments are Taken Truth
Every Market has Its Share of Good Investments
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• Think
• A
• Million

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THE SEVEN WAYS MILLIONAIRE REAL ESTATE INVESTORS
THINK
Appears on Page 78

1. Think Powered by a Big Why
2. Think Big Goals, Big Models, and Big Habits
3. Think Money Matters
4. Think Net Worth
5. Think Real Estate
6. Think Value, Opportunity, and Deals
7. Think Action

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THE BIG WHY
Appears on Page 81
Personal Growth I want to be the best I can be
My Big Why
Why
Why
Why
Why
Why
Why
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BIG GOALS, BIG MODELS BIG HABITS
Appears on Page 86

1. Big Goals The specific, measurable targets that
   fulfill your Big Why.
2. Big Models The proven systems and strategies
   for reaching your Big Goals.
3. Big Habits The consistent actions and right
   choices that come from following Big Models.

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THE MONEY MATRIX
Appears on Page 89
Consumption
Cash
Cash Flow
Capital
Consumption
Cash
YOU WORK
Shadow Wealth is built on CONSUMPTION and CASH
for money!
Cash Flow
Capital
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REAL ESTATE ? A MOST ABLE INVESTMENT
Appears on Page 99

1. Accessible Anyone can buy it
2. Appreciable Increases in value over time
3. Leverage Buy on margin borrow against equity
4. Rentable Cash Flow! Cash Flow! Cash Flow!

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REAL ESTATE ? A MOST ABLE INVESTMENT
Appears on Page 99

1. Accessible Anyone can buy it
2. Appreciable Increases in value over time
3. Leverageable Buy on margin borrow against
   equity
4. Rentable Cash Flow! Cash Flow! Cash Flow!
5. Improvable Sweat equity
6. Deductible/Depreciable/Deferrable Great tax
   benefits
7. Stable Slow to rise slow to fall
8. Liveable Shelter in more ways than one .

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THINK VALUE, OPPORTUNITY DEALS
Appears on Page 111
KnowValue
FindOpportunity
MakeDeals
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Think Action
Appears on Page 117
IInvestor
Minimum
Maximum
Risk
Return
SSpeculator
SCollector
High Risk
Low Risk
High Return
Low Return
Action
Action
Inaction
Inaction
OObserver
No Risk
No Return
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• Buy
• A
• Million

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THE FIVE MODELS KEY AREAS
Appears on Page 126
FinancialModel
2
NetworkModel
3

• Understand the Triple Benefits of Real Estate
• Cash Flow
• Appreciation
• Debt Pay Down

• Network for Knowledge, Leverage, and Leads
• Build your Investment Dream Team

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Net WorthModel
1

• Learn the Path of Money
• Budget for Investments
• Make Investments Track Net Worth

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HOW A CONSUMER SEES THEIR BUDGET
Appears on Page 134
CONSUMERS PERCEIVED BUDGET
CONSUMERS BUDGET
Confuses Discretionary Spending with Required
Spending Which is why they just cantafford
to invest .
Discretionary Spending
InvestmentSpending
IncomeTaxes
Required Spending
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HOW A MILLIONAIRE INVESTOR SEES THEIR BUDGET
Appears on Page 135
MILLIONAIRE INVESTORS BUDGET
MILLIONAIRE INVESTORS PERCEIVED BUDGET
Considers Investment Spending to be Required
Spending. Which is why they always have money
to invest.
Discretionary Spending
InvestmentSpending
IncomeTaxes
Required Spending
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The FinancialModel
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• Understand the Triple Benefits of Real Estate
• Cash Flow
• Appreciation
• Debt Pay Down

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THE FINANCIAL MODEL PART ONE EQUITY BUILD UP
Appears on Page 146
Buy It Right
Pay It Down
Pay It Off
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THE FINANCIAL MODEL PART TWOCASH FLOW GROWTH
Appears on Page 149
Rent Appreciation Debt Pay Off Cash Flow Growth

Buy It Right
Pay It Down
Pay It Off
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The NetworkModel
3

• Network for Knowledge, Leverage and Leads
• Build Your Investment Dream Team

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THE MILLIONAIRE REAL ESTATE INVESTORS WORK
NETWORK
Appears on Page 159
Appraisers
Title Companies
Inspectors
Leasing Agents
Real Estate Agents
Landscapers
Investors
Lenders
Builders
Developers
Partners
ApplianceRentals
FinancialPlanners
Mentors
Consultants
Cleaning Services
Accountants
Attorneys
MILLIONAIRE REAL ESTATE INVESTOR
InsuranceAgents
Lawn Service
Concrete Companies
Flooring Carpet
Property Managers
Contractors
INNER CIRCLE
Roofers
Carpenter
SUPPORT CIRCLE
Plumbers
Electrician
Painter
Masons
MaintenanceTechnician
CourthouseClerks
SERVICECIRCLE
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Lead GenerationModel
4

• Establish Your Criteria
• Prospect Market for Real Estate Investment
  Opportunities

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THE LEAD GENERATION MODEL FOR INVESTMENT
PROPERTIES
WHAT
WHO
Identify the People who can connect you to
Properties that meet your Criteria
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Have Clear Criteria for the Property you want to
Invest in
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WHICH
HOW
Separate Suspects from Prospects
4
Systematically Lead Generate for Properties and
People
3
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WHAT AM I LOOKING FOR?

1. Location
2. Type
3. Economic
4. Condition

1. Construction
2. Features
3. Amenities

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MILLIONAIRE REAL ESTATE INVESTORS CRITERIA
WORKSHEET
Appears on Page 184
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How Millionaire Real Estate Investors Find
Opportunity
Appears on Page 198
32 28 10
9 7 4
3 2 5
Networking Real Estate Agents/MLS Driving/Walking
Newspaper Ads Foreclosure Listings For Sale By
Owners Internet/Database Research Targeted
Marketing Other
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WHICH PROPERTIES ARE THE REAL OPPORTUNITIES?
Separate Suspectsfrom Prospects
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1. Qualify all Suspects
2. Focus only on Prospects

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THE LAW OF NUMBERS
Appears on Page 216
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Consider
Look At
Offers
Buy
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The AcquisitionModel
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• Master Terms for Making Offers Closing Deals
• Cash Building
• Cash Equity Buildup

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THE ACQUISITION MODEL OF THE MILLIONAIRE REAL
ESTATE INVESTOR
Appears on Page 222
CASH FLOW EQUITY
CASH
Buy, Improve, Sell
4
Buy, Improve, Hold
3
Buy Sell
3
Buy Hold
2
Volume
Profit Margin
Volume
Profit Margin
Control Assign
2
Lease Option
1
Find Refer
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Your Wealth-Building Platform
Your Cash-Building Platform
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TERMS WORKSHEET BUY SELL
Terms Worksheet
After Repair Value (ARV)

Fast Sell Factor



Fast After Repair Value (FARV)


Discount/Profit



1
Cost of Purchase (COP)


Purchase Terms
2
Cost of Repair (COR)


3
Carrying Costs (CC)


4
Cost of Sale (COS)


Purchase Price


Amount Financed


Total Investment


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Cost of Purchase Sub-Worksheet
Finder's Fee

Inspection


Closing Costs


Total Cost of Purchase


2
Cost of Repair Sub-Worksheet
Cosmetic Minor


Cosmetic Major


Structural


Fixtures/Appliances


Landscaping


Contingency Factor



Total Cost of Repair


Operating Terms
3
Carrying Costs Sub-Worksheet
Taxes


Fees/Insurance


Utilities/Services


Debt Service


Property Upkeep


Total Carrying Cost


4
Cost of Sale Sub-Worksheet
Agent Commissions


Home Warranty


Title Insurance Fees


Buyer Closing Costs


Total Cost of Sales


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PUT IT ALL TOGETHER
Big Why
Get Motivated
Big Goals
Become An Investor
AcquireKnowledge Focus
Understand Path Money
Learn RealEstate Market
Build Network
Define Criteria
Prospect
Market
Build Work Database
GenerateLeads
Leads
InterviewSellers
Inspect Properties
Convert SuspectsTo Prospects
Engage Network
Make Offers Negotiate Terms
BuyReal Estate
Acquire Deals
Evaluate Results
Gain Insight
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Answer your Questions Building your Work Network
and Leads Network www.millionairesystems.com Bus
iness by the Book THANK YOU FOR COMING!