Top Real Estate Investors Sharpen Focus to Build Wealth

Remember learning Pareto’s Principle in high school? The idea is that 20 percent of your actions lead to 80 percent of your results. This principle is one of the most powerful concepts top real estate investors apply in building true wealth.

 

So how do you bring focus to real estate investing? In his best selling book, The Millionaire Real Estate Investor, Gary Keller reveals three key areas of focus. Criteria: What you buy. Terms: How you buy it. And Network: Who helps you. Successful investing depends on developing sound criteria, the patience to find opportunities, the skill to structure terms, and the ability to take action quickly.

 

Area investors can learn about this powerful triangle by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company. Mackessy share techniques based on the MREI book and his own extensive experience in real estate investing during private investor consultations.

 

Criteria: What to Buy

Criteria describe what you buy. Your criteria are the list of features and amenities that make a particular property attractive for resale or rental. You will consider location, type and year of construction, lot and house size, and price range.

“Your criteria can’t be negotiated away; they form the foundation of your investment strategy,” Mackessy says. “Criteria narrow your choices to properties that offer the greatest opportunity at the lowest risk. Finding a property that matches your criteria, results in predictable value. Your criteria acts as a filter, keeping out bad investments, so you can focus on the good ones. Failure to set solid criteria, has lead to the downfall of many would-be investors.”

Triangle Chart Blue O

 

Terms: How to Buy It

Your criteria define an investment opportunity; your terms turn it into a deal. Terms determine a property’s value now and in the future. Terms are the negotiable parts of a purchase, including items such as offer price, down payment, interest rate, conveyances, occupancy and closing costs. Your terms create great deals and maximize financial value.

“You don’t need to be Donald Trump to capitalize on terms,” Mackessy says. “You just need to understand the financial fundamentals of a transaction. Successful investors know which elements are flexible. Remember, you make your money when you buy, not when you sell. Buy right, then let the market go to work for you.”

 

Network: Who Helps You

The last part of the triangle is the investor’s network. No investor reaches the millionaire level without the help of others. All successful investors tap their network–an intentionally recruited group of people who each play a key role–to add value and increase profits.

 

Put it Together: Take Action

Remember, criteria identify, terms determine, and network supports. Mastering these key areas will ensure long-term success. Don’t be afraid to pull the trigger on a great deal. Success–and true wealth–lives on the other side of fear.