How long it takes to convert $1M to $5M

30 Replies

Speed and low risk are key. 

How will you play with bank money , fixer-upper, cash flow , equity value transformation and market environment to snowball the profit ?

If you have $1M cash , how long will take you to make it to $5M or $10M  cash ?

All depends on your knowledge and abilities. Could take you a year or 10 years.

Asset arbitrage is the quickest low risk strategy. It’s all about the compound velocity of the cash.

3 years is my plan too to turn 1m to 5m. 

Year 1: 1m —> 2 m

Year 2: 2m —> 3.8m

Year 3:  3.8m —> 5 m

Let’s do it. 

That is sure high risk high reward investment. Odds are stacked against you but good luck.  The reality is someone with $1m will not ask people on a forum how to get to $5m.  You want to get to $5m go ask someone who has $10m. 

Originally posted by @Ethan Smith:

3 years is my plan too to turn 1m to 5m. 

Year 1: 1m —> 2 m

Year 2: 2m —> 3.8m

Year 3:  3.8m —> 5 m

Let’s do it. 

You stand a better chance of turning $1 million into $0 in 3 years than you do of hitting $5 million.

@Ethan Smith

You can turn $1 into $5M overnight, in your dreams....Lol

@Ethan Smith it took me about 10 years to turn Zero money into the bank to having $10Million+ net worth. I bought 100 houses during the foreclosure boom. Bought homes that were even worth less than what I bought them for. But I held on to those houses and let the equity build up and paying down the mortgages over the 10 years. Then when the market was good again I sold a bunch of inventory and then pid off 22 free and clear houses. Real Estate typically isn’t a get rich quick.

All kidding aside, there’s actually not a lot of literature on what to do with larger amounts of wealth. There’s ton’s of input on “making your first million” but nothing about handling bigger numbers. People assume that if you can make a million than you can make more easy-peasy, and that’s not always the case. 

Not to mention, there’s a psychological shift you have to manage when you have more to lose!

Certainly, you could have accomplished the task much more easily over the last 10 years in real estate, but I think it’s getting trickier. 

Positive leverage investments with multifamily buy/holds in a market that sees considerable appreciation. You would make more money putting $250,000 down on 4 properties then buying a single 1 million dollar property if financing terms are favorable. Today's low rates allow you to finance a property with a Cash on Cash that exceeds the cost of financing. This is making money with borrowed money. Factor in the ONLY subjective metric - appreciation, after accounting for After-tax Cashflow + principle pay down and you are building wealth. Remeasure your capital equity position and when IRR takes a dive, refinance or 1031 into a larger investment.

@Ethan Smith it all depends on your goals and the level of risk that you are willing to take. There's no set time frame. For each individual it will be different across the board. Of course the riskier the investments the greater the return, which may allow you to achieve your financial goals much quicker.

@Robert C.

You just gave the answer, there are no books on going from $1m to $5m.

Write a guru book on how to do this and run seminars. Easiest way to make money is by charging other people to tell them how to make money. 😁

There is a good new video on youtube by Manny Khoshbin explaining how he purchase a foreclosed shopping plaza for $2.5M with;

$500k down

$200k rehab

deferred payments for 2 years until he stabalized it 

refinanced at $3M year 2

sold year 4 for $9M.

Yes. Rehab and finding devastated property is the way to go. 

Example : $30k cost —> $120k to be sold in one year.  


Possibly —- can turn $1M to $4 M in one year.  



Originally posted by @Manny Cirino :

There is a good new video on youtube by Manny Khoshbin explaining how he purchase a foreclosed shopping plaza for $2.5M with;

$500k down

$200k rehab

deferred payments for 2 years until he stabalized it 

refinanced at $3M year 2

sold year 4 for $9M.