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.
Here's a table of the number of years, given a rate of return you need to turn $1M to $5M. To achieve your goal of 1-> 5 in 3 years, you need to achieve roughly 71% return on your investment every year for the next 3 years.
They say that the true formula for scale is to do what ever you’ve done successfully and repeat it. What ever methods it took for you to get that 1st Million in cash I would continue down that path and perfect it as you do so.. I just hope it didn’t involve drugs, human trafficking or secret meetings with Putin.🤣
At the simplest level, you have two distinct issues to consider. First is your ability to generate cash. Second is what you decide to do with the cash. Somewhere between the two is strategic planning to reduce your tax liability.
For the first part, I suppose the answer will depend on your skillset. You could, for example, have a generational talent like Lebron James, Dr. Ben Carson, or even someone like Pewdiepie. Even you don't have a generational talent, mere exceptional talent could get you pretty far. After all, there are many folks making six to seven-figure income without being the "Michael Jordan" of their discipline. Another tried-and-true method is to become an "entrepreneur." That's a whole different topic but generally the goal there is to start businesses that can run without relying heavily on the founder's skill set.
For the second part, you can do both good and silly things with your money. You could be like Antoine Walker and blow $100 million before you turn 40. Or you could make good investments, protect your assets, diversify, etc. While the book is a bit dated, The Millionaire Next Door is a good book on this topic.
Based on the above, I'm not sure if it really matters whether you have $1 million to start with. You can get a head start but you could also easily blow that.
Now if you were asking whether it is possible to grow a $1 million investment into $5 million in three years, then that's a slightly different question. I believe you will need to average an annual return of around 71% for three years.
Could you get those returns? Sure. But I would say most of your options are risky. For example, if you invested $1 million in bitcoins a few years ago, you would be filthy, filthy rich right today. Now many, many serious investors won't touch bitcoins since they look at it as the second coming of the Tulip Mania. So who knows who is right? ¯\_(ツ)_/¯
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Relatively safe and relatively quick would be to invest in multifamily or commercial value add deals. Finding deals that will allow you to add value, refinance a chunk of the money out and put that into the next deal. You can also do it with single family/small multifamily, it will just take a bit longer. That is the strategy I used when I first started with about $20k.
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. 😁
My firm specializes in the whole foundation of building wealth in real estate. We originate the commercial loans, broker the deals, and analyze the clients portfolio throughout the hold period. When the market(s) are right, we exchange or refinance several properties at once to improve their position. Its the pragmatist approach to RE investing.
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