How to be a RE millionaire...

Question

Hello everyone,

Im a young investor with big ambitions. Im currently involved in wholesaling but it occured to me that many wholesalers are not where I want to be in 5 years. So I thought to myself, who are the Real estate millionaires? What are they doing to make big profits? Are there any millionaire wholesalers? Landlords? Rehabbers? What are they involved in?

If you can elaborate on this discussion I appreciate it 100%. Thank you for your time.

James Park · Answer

Mason Anderson

There is a what I call income statement wealth (flipping, transacting, wholesaling etc. and what I call balance sheet wealth (buy and hold income properties.) You must focus on the balance sheet wealth.

There are three type of tax bracelets:

1) Earned Income : Flipping, Transacting, and Wholesaling (taxed up to 50%) (Income Statement Wealth)

2) Portfolio Income : Taxed at 20%

3) Passive Income : This number can be potentially be 0 depending on how smart you are understanding the tax code. (Balance Sheet Wealth)

Again, short term you can flip, wholesale, do whatever it takes to build the capital you need to invest in long term rentals, however your end game to become a RE millionaire must be to own free and clear income properties that generates passive income for life.

Aaron Mazzrillo · Answer

The big today paydays are in rehabs, but the real wealth comes from long term asset control & management.

Brad Chandler · Answer

Mason:

It's nearly impossible to get super wealthy wholesaling or fixing and flipping homes. You can make an awesome living but after paying taxes its very hard to build massive wealth. Most people who have a large net worth in RE have it from buying and holding real estate long-term. Most of my net worth is from the 80 rentals we own - not from the 1,800 homes I've bought and sold. Good luck!

BTW - you are in my area. We work with lots of wholesalers and are always looking to buy more properties and work with more wholesalers in DC, MD and VA. Please let me know next time you have a deal. We can close extremely fast and we do what we say we are going to do. Looking forward to working with you!

Steve Vaughan · Answer

For me, it's in my buy and holds.  Long-term rentals are the meat and potatoes, the now and then wholesale, flip or lease option deals are gravy.  Gravy is nice, do doubt, but I like to do something once, not over and over, for residual income, long-term appreciation and tax benefits.

Landlording isn't  always fun by any stretch, but asking about millionaires, I can attest a portfolio of rentals does wonders for your balance sheet @Mason Anderson!

Mason Anderson · Answer

Wow thank you to all those who answered my question. I see I have my work cut out for me.

@Aaron Mazzrillo

Thanx to you all.

Mason Anderson · Answer

@Brad Chandler

Thank you for your insight, I will take that to heart.

And shoot me an email of your criteria and we'll notify you our upcoming deals. Email:salleyhomes@gmail.

Brent Coombs · Answer

Aah, there might be the nub of the answer:- if you are not getting there quick enough, write a clever-titled book and/or start your own entrepeneurial Guru "free Seminar > upsell bootcamp > upsell mentorship program"...

Yinan Q. · Answer

@Mason Anderson, that's a good question.  I guess there is not straight answer to your question.

I believe there are millionaire wholesalers, RE agents, landlords, flippers, developers, note investors, PMs, etc. As long as you know what you are doing and do it well, it's not that hard to have a net worth of one million if that's what you mean by millionaire. Or maybe you are talking about one million dollar annual income?

You might want to check out the book "Millionaire Real Estate Investor" by Gary Keller.

Brian Gibbons · Answer

I think getting started in real estate is hard but you got to get started somehow.

Learning local values of  listeds and solds are very important plus your local property management laws

Then learning how private lending works and marketing for joint venture partners I think are the other critical skills to becoming a millionaire

You are not going to be able to do it all by yourself so realize  Real Estate is a team sport

Being able to pick up the phone and get money quickly is very important

@mason

How to be a RE millionaire...

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