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Time and Money is a seminar created by Ben Kinney and Christopher Saurez, 2 icons in the real estate industry. The seminar is designed to teach you how to make the best use of your time and money.
Notes by Lori Ballen, Las Vegas Real Estate Agent. Please attend a live event near you in the future. There is nothing quite like sitting in the room during an event like this.
Chris Suarez has built a solid reputation — and an empire — by executing the models and systems found in Gary Keller’s Millionaire Real Estate Agent. Not only is he considered a true “MREA agent,” one who nets more than $1 million a year, he has also used the book as the foundation to expand his business into 30 cities across nine states and two countries. He is building a strong team culture through coaching, consulting, collaborating, and commitment. He is passionate about empowering others to build huge real estate businesses while still living “Xperiential” lives. The result, Xperience Real Estate partners are achieving record-breaking per agent productivity.
Ben Kinney is an entrepreneur, professional speaker, author, real estate agent, and owner of multiple real estate franchises with Keller Williams that started in Bellingham, WA and now operates across the USA, Canada, and the U.K
Lessons from Childhood
Chris was born and raised in New York. Chris said his Dad grew up, went to school, work at Xerox and then retire. He worked there for 50 + years. His dad raised a family of 5. In year 5 and year 45, he made the same amount of money.
Chris remembers one family vacation to Disney World. His parents saved box tops of cereal cartons to go to Disney World. They stayed at the Swamp Fox In, he said.
Chris was 8 and journaled about how amazing the hotel was. They walked to Dominos to get pizza. Chris thought the shag carpet was pure luxury. It was the families’ first big vacation. The lack of “extras” didn’t matter. It was about the experience.
Chris learned from his Dad that he would never make a million dollars. His Dad told him to forget about
that,because he would never make a million dollars. Yet year 2, in real estate, he made 1 million.
After Chris was grown and married with kids and financially stable, he invited his parents to Spain and they declined based on issues from being older and having surgeries. Chris decided then that this was unacceptable.
He didn’t want to work his whole life for retirement just to discover that he couldn’t enjoy life once he retired.
He then set out to find how to live before it was too late to do so.
We are investing 40 years to get 10 back. 75% ROI over 50 years or 2.73% per year.
Ben chimes in “That’s like my Zillow Bill… a Bad ROI” (Crowd laughs).
Sometimes it takes extreme situations for us to re-evaluate what’s important.
We need to understand how to find and achieve contentment while not giving up growth.
The great equalizer in our lives and business is time. It’s the one thing that no matter who you are or what you have, we all share the same amount of – time.
The average retirement age in America today is 66 years old, up from 62 (2004). We are going the wrong way. The average American lives to be 78 year old. Something is wrong with that picture.
Choices vs. Choosing
Choices come and go. It’s the choosing that we don’t spend enough time on. Everything having to do with your time, schedule and day is a choice. And if you don’t choose, someone else will. Look at your calendar, did you choose your time or did someone else?
Learned helplessness comes from doing the same thing over and over with no change. We learn that we are too busy, and can’t take time off, so we don’t. You either do nothing because nothing is going to matter or you do the opposite and try to do it all, every opportunity, pull every level.
We need to begin to explore. The exploration phase of time, matters. We often don’t take the time to do it, Chris says.
As we look at any opportunity, or appointment, we have to ask ourselves in a scale from 1-100 where does it fall? If not 90, then it should be 0. If we explore what our options are, and only say yes to 90’%, our schedule gets filled with only the best and most important.
If it isn’t a clear yes, it should be a clear no. We get killed with the grey.
In the industrial revolution, people began competing with machines. They came in earlier, stayed later, and worked harder. They worked harder to stay relevant. It was efficiency.
Our school systems also got messed up. Learning changed for the kids. Before that, school was about play. The word Schools comes from the German word that means “leisure”. At that time, school became about efficiency.
This is the world we live in, Chris says.
Not every life is like that, Chris says. He explains that in other countries, they understand leisure. “Try to find someone in Spain to do work for you after 2PM”, he laughs.
Chris shares that his Dad left earlier and stayed later over 50 years, at which time, when retired, received a “Clock”.
We don’t gain clarity unless we know if we are living forward or backwards. If we don’t know what game we are playing, we don’t know how to win. It all starts with Clarity.
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The Pareto Principle is the 80/20 rule. 20% of our activities lead to 80% of our results. Chris says 20% of what he does brings him 80% of what he earns. After netting 1 million in residential real estate, Chris woke up and evaluated his previous year of working 10 hour days. He wondered if the principle was real, then what did he really earn. 80% of 1 million is $800,000.
This means that 2 hours of the day actually led to $800,000. Suddenly, the other $200,000 towards the million wasn’t important. He could work 2 hour days, net $800,000.
Draw a line in the sand, and give away the other 8 hours. Efficiency and Effectiveness matter. We have to ridiculously effective about our 20%. Every day we should ask how do we get more effective.
We should ask “how do we get more efficient”. The 80% still has to get done, and someone else could probably do it faster. To master time, the growth plan (effective) has to be in the 20% and the efficiency in the 80%.
Invest in time and money. Be willing to invest to buy back time. Money follows.
Four T’s of a System Plan
These 4 T’s have to show up in your operational world every day. This is how you increase efficiency (the 80%).
Four C’s of a Growth Plan
WE are doing random activities every day of the week. This is time unmastered.
6 “B’s” of Time
Look at your calendar and “Batch” the 20% of your activities. Batch it into a day and your energy will change overnight. The results will change as well.
Keller Williams talks a lot about time blocking. When Chris first realized something was wrong with his business, he went to his broker, Jody Thomas, and told her that he wanted more growth and money. Judy told Chris to time block better. And Chris noticed that every minute of his day was blocked. And it was too many activities.
Studies show that flow, creativity, and achievement take about 2 hours. Activities need to be changed less and last longer for “flow”.
We must break some appointments. We don’t separate time commitments with relationships. We need to break appointments that don’t align with our mission. If they aren’t 90% appointments, break them.
Spend money on technology and leverage. Invest money to buy back time. That’s your competitive advantage. To do this, your company must be profitable.
“Your company’s profitability will be your competitive advantage”, Gary Keller
Look at your standing appointments, cut them in half and see if it matters. Most of our appointments can be done in ½ the time because of the “social” aspects.
If we don’t understand how many hours we wish to work, or how many years, or what the purpose or mission is of making money for us, then we won’t build the calendar correctly.
Add White space and intention to your life rather than going from one appointment to the next.
“Time is Money” is false. We have convinced ourselves that time is money. In MREA, it says “Time isn’t money, but it’s convertible to money”. How much time are you using or trading? We all start with the same number of hours in a day. If you work a 40 hour work week, and slept 8 hours a day, you’d have 72 hours open. Yet we convince ourselves that we don’t have time to “play” or “go on that walk”.
Time is a currency. Some of us trade that time for more money.
Decide to Eliminate
There will be a time when we have to decide to eliminate stuff: business, Opportunities, Projects, People. The Latin origin, root word of decision and decide, ‘cis’ or ‘cid’ means to cut, or to kill.
We need to decide what we will say no to.
Most people ask “How do I go big?”. They have to then get good at killing off “options”, the little stuff that takes them away from success.
Endowment Effect is perceived value. Because “we own” it, we find it valuable. The longer we own it, the more valuable we think it is.
It’s the same with our schedule. The longer it’s in our calendar, the more valuable we believe it is.
Edit Your Life
At the academy awards, everyone wants best film. Every year, the best film was also nominated for best film editing. Nobody cares about that award. 75% of the time, the one that wins best film also won for beds editing. Everyone knows who created the film, but nobody knows the name of the editor. Without a credible editor, the movie would be filled with things that don’t matter. We all need editors in our lives and edit out our time and schedule.
“Resting in who you are, who you have, and what you have. To be comfortable with the world, Happiness which consists in being satisfied with present conditions. “
Money is not the qualifier for contentment. – Christopher Saurez
Chris has a formula for contentment which includes doing the right activities to achieve the money and buy back time which allows for more experiences which lead to contentment.
Take your time X money, choose the right experiences and you have an experiential life via the contentment formula.
When you are headed towards contentment, you will be in a state of growth. Contentment does mean “relaxing”, it means enjoying where you are at.
Chris understands that he would never reach contentment if he didn’t master time.
Chris refers to Ben and asks how mastering time has led to his results today.
“I think for the first 8 years of my career, I used
Ben isn’t super human, Chris says. Even though it might appear that way. How he has more and gets more done is that he has mastered time. It’s the domino.
Chris calls Ben “normal” and the crowd laughs.
Chris asks Ben how he disconnects so completely.
“There are no emergencies in real estate. Everything will work itself out. It’s all going to be OK. I created a system where to get on my calendar, you have to talk to Erin. For Erin to put you on the calendar, she has to request time from me to talk about who goes on my calendar. She doesn’t get my time often to do that. Then, after everyone is scheduled, her job is to cut it in half.
In other words “Blow some other people off”
My confidence comes from the financial reserves I have and the quality of the people around me – Gary Keller
When you “insert” yourself into everything, everyone sees you having time or assumes you are the leader, which means your real leader has a harder time being the leader.
When we think about the problems in our lives, maybe it’s because we don’t have enough people around us.
Who cares if all breaks? Build it again.
Ben shares that the only things he knows he can control is how he thinks, his time, and who he spends time with.
We spend too much time impressing everyone around us instead of empowering them to do more, Ben says.
At some points in your life, time will have different definition of time, chris shares.
Life is segments of time, strung together. When someone gives you time, they are giving segments of their life. It is the greatest act of love to give up segments of your life.
“Some people are just too busy to be truly successful”, Ben says
“I do all my calls on Monday. I sit on calls that day. I batch that time.”, Ben says.
MONEY (Ben Kinney)
Statistically, people are more likely to talk about their sex lives than money.
Cash gives you advantages and opportunities. Our brokerages that we own primarily are take-overs from people hat didn’t do well with them. In order to take advantage, you have to be willing to give away a piece of the pie.
I have a partner in every business I own. I like people to bring different traits to the table.
Most people don’t build wealth because they don’t believe it’s possible. Ben shares that he was raised poor as well. Today, his life looks like he never would have imagined.
Why Most People Don’t Build Wealth
- They don’t believe that it is possible
- They don’t make it a priority
- They don’t create a plan
- They don’t stick with the plan
- They choose now over later.
- They value entertaining themselves over educating themselves
- They look for short-term solutions to solve long-term problems
- They think they have to choose between wealth and a happy life
- They give up when the going gets tough
- They don’t find wealthy role models
People would rather live comfortable today and be uncomfortable in the future.
The average person spends the majority of their time being comfortable. If you want above average wealth, you have to spend more of your time being uncomfortable.
If you want to be rich, hang around with rich people because they do things different. Read about them, Study them, Watch their videos. Follow Warren Buffet.
Only 11% of people choose “having lots of money” as their definition of wealth. – Charles Schwab Modern Wealth Index
How do you define Wealth in Your Life?
The failure is that we fail to enjoy the journey. No goal is satisfying because there is always a higher mountain behind that one. We are chasing the destination rather than appreciating the journey.
Ben shares that he sat down and asked himself what gives him energy and joy, and what takes it away. He gets joy from recruiting, coaching, mentoring, teaching, and creating things and making them a reality, and negotiating “doing the deal”, the impossible. That’s the 80% to go home with energy and joy.
Money is something you got to make in case you don’t die – Mark Asnas
- Become a student of wealth
- Understand the realities
- Understanding Compound interest
- Build asset value in your businesses
- Leverag financial instruments
- Real Estate Investing Model
Read books and study more than one wealthy person. They all are bias to their personal situations.
The Four Sources of Income
- Salary – Exchanging time for money (present earning)
- Business Profits – Experience the “they” do it (present earning)
- Residual Income – Income earned from past investments (past)
- Secured Assets – The Foundation of wealth building (past)
The average person who doesn’t enjoy money trades time for money.
In one economic shift, most people lose everything because they don’t have enough assets to protect them when they lose the income. (Triangle)Tangible AssetsResidual Income
Warren Buffet pays less taxes because he puts money into assets, not income.
IF we don’t know where we are at today, how can we make a plan?
Track your net worth.
WinMakeGive.com – Net Worth Tracker
How to Earn Wealth:
- Start Saving – Green, Red, Yellow
highlighters. Green: Keep, Red: Cut it, Yellow: Inquire more about that cost
- Increase your Income
The result of re-investing interest rather than paying it out, so the interest earned on the next term is on the principle sum plus any previously accumulated interest”
Those that understand compound interest, earn it. Those that don’t, pay it.
The problem with wealth building is that it is boring. Slow is smooth, smooth is fast.
$100 invested at a 10% annual return for 50 years is $1,700,000.
You want to do something for your children? Put $10,000 in a mutual fund for your kids and don’t let them touch it until they are 60.
- Even a small amount can be big.
- The more time in, matters.
Net Operating Income (NOI) / Price = Cap Rate
Learn More about Cap Rate
Rule of 72
A way to estimate how long it will take to double your initial investment
Years required to double investment = 72 / compound interest rate
This requires you to move from having a job to being a business owner: Employee (I do it) to Self Employed (we do it) to Business (they do it) to investments so your MONEY does it. (Cash Flow Quadrants)
Moving from income to assets in your daily work.
The vast majority of wealth came from buying businesses and loaning money. – Warren Buffet.
Building Value in your Business
Invest in a proven model or person. Your confidence in the business will be determined by your confidence and review of the following:
- Mission, Vision, Values
- Business Plan
- Organizational Chart
- Financial Statements & Profit Margins
- Cash Reserves and tangible Assets
- Product or Service
- Size of their Database
- Marketing Plan
- Is it Scalable
- Business Risk Analysis
Most real estate agents retire with a business of no value.
- Comparable Method (what similar businesses sold for)
- Times Revenue Method (Gross times XYZ = Value
- Net Income Multiplier (net times XYZ = Value)
- Liquidation Value
- Screw it sell the desks
Ben shares that he will pay more for a business if he gets longer to pay for it as he will use that money to earn more money.
$1000 per agent in the marketing center is how Ben decided the value of a market center (in a down market)
- IRA and Self Directed IRAs ($6000) (Pension Plan: $250K per year)
- 529 programs (Kids College, Not tax deferred, grows tax free for your child) and HSA accounts (can use for retirement with taxes)
- Stocks, Bonds, and Mutual Funds
At minimum max out your tax deductible investment options
“Someone is sitting in the shade today because someone planted a tree a long time ago – Warren Buffet.
Ben shares that nobody in his world knew these numbers. He decided to learn it to help others in his world earn wealth.
Real Estate Investing Model
Slow growth, Low down payment,
- Principle Reduction
- Tax Benefits/ savings
- Rental Income
The value of doing this 5-10 times over 30 years is $7-10 Million in assets
Wealth Building Model
- Personal Monthly Expenses X 4 months = required reserves
- Business total monthly expenses x 4 months = required expenses
- Rentals monthly mortgages + expenses x 4 months = required reserves
- Everything in excess of the above goes into your personal funds.
The 5 Buckets
- Reserves – 20%
- Real Estate – 20%
- Businesses – 20%
- Financial instruments – 20%
- Debt, Family and Charity – 20%
The goal is to feel like you are stable. Have money in multiple buckets. The odds that all 4 will go away is very slim.
One of the worst things that happens to people w hen they retire is that the stock market crashes. They take their money out and now have no growth.
A Good number to live by is 4%. 4% is what you can take out of your savings that would allow your savings to last for 40 years. You need to live on 4% of what’s in your savings.
- In order to increase our net worth, we must spend less than we earn
- Then, we must pay off liabilities and invest the rest
- Then stop only when investments create annual income for desired lifestyle
- Goal: Work when we want, on what we want, for who we want.
Pay less in Taxes
- Write off interest in houses by buying houses
- Accelerated Appreciating (commercial properties, multi-family (5 or more units)
- Take the maximum amounts of write offs through financial investments (401K, IRA etc)
These notes were taken by Lori Ballen who attend the class live. Lori is a real estate agent with Lori Ballen Team in Las Vegas, Nevada. 702-604-7739