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

Multi-Family and Apartment Investing
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How long it takes to convert $1M to $5M

David Smith
Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes

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 ?

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Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y

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. 

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  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    @ethan smith 

    @David Smith "speed and low risk are key"

    This combination is impossible. Pick one or the other.

    6Reply
  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    7y

    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.

    2Reply
  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    @Ethan Smith

    I can turn 1 million into 5 million, every 3 years.

    4Reply
  • David Smith
    OP
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    7y

    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. 

    2Reply
  • David Smith
    OP
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    7y

    Good thing about real estate is you can control the tax bills. 

    0Reply
  • Eric G.
    Real Estate Broker · Orange, CA · Member since 2015 · 79 posts · 86 votes
    7y
    @Mark Fries That is aggressive! At that pace, you could turn 1m to 5m in three years, then turn the 5m to 25m by year 6, then 25m to 125m in year 9. What’s your strategy?
    3Reply
  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    @Eric G.

    Crush it with at least 2 businesses that you own that are non real estate based and then take the proceeds and invest in real estate

    2Reply
  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y

    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. 

    15Reply
  • Michael H.
    Rock Hill, SC · Member since 2015 · 104 posts · 209 votes
    7y

    You could turn $5m to $1m by giving it to Clayton Morris.

    8Reply
  • Kris L.
    San Antonio, TX · Member since 2019 · 930 posts · 836 votes
    7y

    @Ethan Smith

    A couple hours if you are really good at rolling dice.

    4Reply
  • Jim Chuong
    Rental Property Investor · Toronto, Canada · Member since 2012 · 102 posts · 95 votes
    7y

    @Mark Fries how many millions are you at now?

    2Reply
  • Jeff C.
    Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y
    Originally posted by @David 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.

    6Reply
  • Mike Ko
    Rental Property Investor · Navarre Beach · Member since 2019 · 26 posts · 3 votes
    7y

    I agree.

    This is not the forum to ask this specific question.

    Ask people who have surpassed your goal.

    0Reply
  • Trent Chance
    Member since 2019 · 94 posts · 75 votes
    7y

    @Michael H.🤣

    0Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    @Ethan Smith

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

    3Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    The State Lotto's do it the best & sometimes twice a week. Promise a WIN & they rush in. 

    Yep guilty as charged!!!

    0Reply
  • Monica Breckenridge
    Rental Property Investor · Colorado Springs, CO · Member since 2010 · 476 posts · 305 votes
    7y

    @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.

    4Reply
  • Robert C.
    Investor · San Francisco, CA · Member since 2016 · 338 posts · 444 votes
    7y

    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. 

    1Reply
  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    7y

    I think the best way to look at is 8 to 10% per year somewhat safe but still a risk. It is all about risk appetite a smaller profit is still a profit instead of a loss. 

    2Reply
  • Cory CarlsonBusiness Member
    Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
    7y

    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.

    503-222-0282
    Constant Commercial Real Estate Inc543 Reviews
    WebsiteView Page
    1Reply
  • Tj Hines
    Specialist · Tampa, FL · Member since 2012 · 933 posts · 492 votes
    7y

    @David 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.

    1Reply
  • Michael Masters
    Rental Property Investor · Westport, CT · Member since 2017 · 176 posts · 183 votes
    7y

    @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. 😁

    1Reply
  • Manny Cirino
    Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
    7y

    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.

    0Reply
  • David Smith
    OP
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    7y
    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.

    0Reply
  • David Smith
    OP
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    7y
    Wilbur Ross
    Wilbur Ross Official Portrait.jpg
    39th United States Secretary of Commerce
    Incumbent
    Assumed office
    February 28, 2017
    PresidentDonald Trump
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    Personal details
    BornWilbur Louis Ross Jr.
    November 28, 1937(age 81)
    Weehawken, New Jersey, U.S.
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    Before he was appointed, Ross was a banker known for acquiring and restructuring failed companies in industries such as steel, coal, telecommunications, and textiles, later selling them for a profit after operations improved, a record that earned him the moniker "King of Bankruptcy".

    Learn from him. 

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