To put is simply, investors can learn how to be very successful. Long-term, continuing success is neither the result of hit-and-miss actions nor is it the result of working blindly or simply learning from one’s own mistakes. Real success comes from working to a proven system. The system may be modified to suit particular needs and circumstances, but it is still a system.
What You Can Learn from the Keller Williams Story
Keller Williams began in 1983, and grew from one office to more than 790 market centers and more than 139,000 associates. The company’s business model is to systematically focus its resources on building its agents’ businesses. One result is that the company attracts and keeps some of the most successful Realtors in the business. This is good for the company, good for the associates and very good for their clients. Real estate investors who apply the Keller Williams model succeed.
What is the Keller Williams Investment System?
It is based on a proven model. The model applies seven basic criteria:
- Clarify your ultimate goals. Know how much time, ability and financial resources you have available, and that you should have available as you progress through your intermediate goals. Realign those three resources, time, ability and financial resources, as circumstances change. You may choose to be an income earner, a modest investor or a true investor. Each will demand that you apply your resources appropriately.
- Establish your essential criteria. Will you invest, primarily, in residential homes, raw land for resale or development, or in commercial properties? Knowing your criteria enables you to focus on specific market segments and on specific properties.
- Follow your pre-determined plan of action. Depending on your preferred property type and how you intend to profit from owning it, you can consider the details. Do its location, size, age, condition and features make it attractive for resale, renting or developing?
- When you know what to buy, you can focus on how to buy it. How well you negotiate price, down payment amount, finance terms, acquisition costs and repair costs, determines your base point.
- Establish processes. There are effective and efficient ways to do most things. The things that fall outside the norm are often similar to those within it, so you can still follow the established process to save time, physical resources and money.
- Know your numbers, and track your numbers. Income and expenditure may be variable, but you will be able to control them better if you set and monitor a detailed budget. The numbers also include such things as forward planning for income tax and capital gains tax. There are, for example, 11 steps to ensuring you defer all capital gains tax on a sale if you use Section 1031 of the US Internal Revenue Code.
- Make best use of your and other people’s time and capabilities at every step. Each step, whether it is the initial property search, its acquisition, its maintenance, management, improvement, and its eventual sale demands competence.
Final Learning Points
• The Keller Williams systematic approach to property investment is simple, logical and strict. It leaves no room for making poor decisions that may lead to a lesser return.
• One way to quickly develop your competence, and your confidence, is to work with a specialist.
• Keller Williams’ associates are amongst the best Realtors in business.
• They are well versed in the real estate investment system which Gary Keller established, and which thousands of Realtors and private investors follow.
• They are very knowledgeable about the local real estate marketplace with regard to what properties are available for sale and their histories.
• They can help you to plan ahead. If they know what you want to invest in or to sell, at some point in the future, they will monitor the details, so you will be ready to act as soon as the right opportunity arises.
• They have an established network of specialists you can call on to suit your own time, ability and financial resource criteria.