Millionaire in five years

96 Replies

Theoretical question for you guys: Imagine you have no money and few skills. You have to become a millionaire in 5 years. How would you do it? Looking for specific and actionable answers/ideas that are accessible to the average human being.

You can do this through real estate and there are a number of paths. Flip properties, wholesale properties, become an agent etc. The fastest way to increase your passive income and wealth is by holding and renting real estate. However; you need to find a way of generating funds to make these purchases (see my list above). Once you have your first buy and hold purchase under your belt, you can start reinvesting.

there is a large distinction between theoretical and actionable, but ill do my best to help.

first read, listen, and watch everything you can on real estate investing. Ill leave a list of books to start with at the end of this post. then you'll need money. to acquire money you'll need to find people with money, and learn how to make these people money with their money. Most importantly never lose their money if you lose their money its game over. If you make them money they will continue to give you money to invest. Since your starting with nothing I'd suggest a brrrr or value add buy and hold strategy. This will allow you to recycle your limited capital. If you want a million net worth in 5 years assuming you could pay investors straight interest and no equity, assuming your could get 3% a year appreciation. assuming you could consistently find deals that you could add 30% in value add. Assuming all units could cash flow $200 a month. assuming your bankable. assuming you can find a investor with the net worth and liquidity you'll need to secure the debt. assuming you can build a team to manage your portfolio.  you'll need somewhere around 56 units-75 units depending on how quickly you can acquire them. another option is partnering with an experienced syndicator as a co-syndicator in which case you would simple have to raise $50,000,000 in private equity. you'll need to find a way to do 20 years of work in 5 years but even if you fall short by half you'll still have increased your net worth by $500,000k

Id start reading the following books, most of the knowledge you'll need is in these books, but Gaining the experience you'll need in the short amount of time will be hard if I were you Id look for an experienced partner or mentor.

start reading....

low and no money down deals

brrrr investing

best ever apartment syndication

magnetic capital

abcs of real estate investing

rental property investing

estimating rehab cost

the e myth

raising private capital

the real book of real estate

10x

real estate finance and investment manual

cashflow quadrant 

Originally posted by @Pat L. :

Marry it !!!

Absolutely your best bet. It's all in "The Gigolo Path to Weath" by Velvet Jones. The same author also puts out "Rented Love for Maximum Profits" and "Spotting Trust Fund Daughters: A Proven Method." You may not make it to a million in five years but you can guarantee at least $1500/week.

 

@Chase A. At this point in the market circle, real estate is highly unlikely to get you to this goal.

I would say the most “realistic” (still takes luck) is to learn or know highly marketable skills in computer science or something highly technical. Then join a late stage (soon to go public) or high growth (established but newer) company. Then you have to hope you’re acquired or it IPOs and then skyrockets.

I know of a senior software engineer who joined a start up in Q1 of the year, then they IPO in Q4 and it skyrocketed initially. He was sitting on 600k worth of stock In under a year. This is on top of making a salary of several hundred grand a year. Now he’d already been an engineer for well over a decade, but you see the point.

Originally posted by @Chase A. :

Theoretical question for you guys: Imagine you have no money and few skills. You have to become a millionaire in 5 years. How would you do it? Looking for specific and actionable answers/ideas that are accessible to the average human being.

 Marry a Rich Girl.

Are we talking net worth millionaire? I made net worth 100 thousandaire in 5 years... from 0. Didnt own anything but a truck. Now I own my home outright, started in RE, and run a small business.  I still wonder where I'll get money for groceries though. I have a friend who accomplished net worth millionaire in 3 years. He still had to borrow cash from his mom to buy gas some times. Lol I have a 5 year goal to get my status to networth millionaire next. I'll probably still be just getting by... Now financial freedom, that goal is 10 more years for me. Real estate isn't likely to get you what you're asking for. Start a business. I don't mean open a coffee shop. Find a business you can scale. Hire everything out that you possibly can because you don't have time to do working on logistical items, you need to be developing processes. Then use the business to buy real estate, and commodities. 

LOL. Some funny responses here.

No money and no skills means you are out of luck. It will take skills to even get to marrying the magnate's daughter (or son, as it may be). 

Before I did anything else, I would work on becoming as educated as possible in something that appears profitable. Education and practice is how you develop skills. 

You will need to be above average. Average people with no skills lead mediocre lives. 

As far as actionable steps:

- Get money. Establish a budget, pay down debt, save cash. Avoid any spending on extras like alcohol, vacations, Netflix, etc.

- Get skills. There is lots of ways to do that through education or experience. Skills enable you to make money. Whether it is a higher paying job or starting a business, it requires skills.

- Don't be average. Work harder, work smarter, work longer. Start a business, start two businesses. Most likely whatever your friends are doing is average, so you may need new friends.

When I started I had no money and no skills. What I did was found someone who had started with nothing and was making millions. Then I talked that person into showing me how they did it and I did exactly what they told me to do.
The only thing I really brought to the table when I started was a willingness to complete a task by working any number of hours required.

If I had to start over I would look at the number of people I know who have started something and made millions in less than 5 years:
I know a couple dozen people who have done this flipping houses.
I know half a dozen people who have done this day trading the stock market.
I know one person who has done this syndicating large apartment buildings.
I know zero people who have done this holding rentals. (I do know several dozen people who have made millions with rental properties in 30+ years.)

Those are my experiences, your mileage may vary.


As an  average  Joe who has a net worth over 5 million I can tell you 5 years is not realistic for the  average person. 

It took me 36 years to hit 5 million net worth. Hey on the  bright side it only took me  11 years to hit 1 million. 

I simply just worked two jobs for 23 years, lived on 30% of my  income and  bought rental property after rental property.  

I increased my income every year by starting businesses and increasing my passive streams of income.  If I would have leveraged my first portfolio I could have made it sooner. But I started when there was no BP and having everything paid off was how I was raised. 

Another key to my success is I have never spent 1 dime of rental income on living expenses. 100% has went back into making more money. 

One thing I learned earlier on was that wealthy people have multiple streams of income, we currently have eleven and adding a couple a year. 

Now my goal is 10 million net worth in 4 years. I have a much better chance of reaching that goal than someone just starting out. 

I mean taking an aggressive approach to real estate is the best way I can think of. Take advantage of early home buying programs and be aggressive. You need to take risks and leverage what you have. However, it can be done. 

@Chase A.

Look Dan Peña and QLA.

danpena.co.uk

Dan Peña teaches people how to become super rich by raising money to buy businesses at a discount.

Save up $20,000 to enroll in his castle seminar (he lives in a castle).

If you are not a snowflake, you will be fine at his castle.

No need to be a whore to get rich. That is for beta males who can't make it on their own.

This post has been removed.

Originally posted by @Calvin Ozanick :

I mean taking an aggressive approach to real estate is the best way I can think of. Take advantage of early home buying programs and be aggressive. You need to take risks and leverage what you have. However, it can be done. 



If I were selling real estate I would give that answer too! Hahaha Do you actually think that's realistic? The average person using an early home buying program has nothing to leverage. 0 to 5% down? They're done after that. A strong salesman may be able to get others to invest in them, but for the average Joe that's not feasible. Real estate for someone starting with nothing has almost no chance of becoming a millionaire in 5 years. Now a high income individual who dives into real estate might be able to do it. If you're making $200k and dumping half or better into real estate leveraged you could make that, but that's because you made it from your earned income. 

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