Springfield, MO 路 Member since 2017 路 35 posts 路 14 votes
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.
Rental Property Investor 路 Bloomington, MN 路 Member since 2019 路 404 posts 路 542 votes
6y
@Chase A. I don鈥檛 have this as a goal but I will answer anyways. If I was just starting out and wanted to get rich somewhat quick I would go into a sales role and work my @$$ off towards a high income. I would also house hack a 4-plex, if I could find financing. After 2 years at that 4-plex I would hopefully be able to purchase another 4-plex to also house hack.
Note that my answer includes the knowledge that I would not be the best in IT or Engineering for a high salary there. I could also consider a trade as others have mentioned. I would consider flipping but I don鈥檛 feel that this market is ideal for that right now.
Springfield, MO 路 Member since 2017 路 35 posts 路 14 votes
6y
Thanks for all the replies! There were a lot of good responses and a lot that made me laugh. This question was stated as being theoretical. It is not an accurate representation of my current position, money and skill wise, hence the theoretical part. I wrote it as a sort of thought exercise to see what people though.
Follow up question: What skills would someone need to go from nothing to somewhat wealthy? Some of this skills I already have are accounting and tax from an CPA firm internship, basic construction/rehab from helping my parents remodel three houses, and business management from my soon to be completed business administration degree. Anything you would add? Thanks again!
Thanks for all the replies! There were a lot of good responses and a lot that made me laugh. This question was stated as being theoretical. It is not an accurate representation of my current position, money and skill wise, hence the theoretical part. I wrote it as a sort of thought exercise to see what people though.
Follow up question: What skills would someone need to go from nothing to somewhat wealthy? Some of this skills I already have are accounting and tax from an CPA firm internship, basic construction/rehab from helping my parents remodel three houses, and business management from my soon to be completed business administration degree. Anything you would add? Thanks again!
Thanks for all the replies! There were a lot of good responses and a lot that made me laugh. This question was stated as being theoretical. It is not an accurate representation of my current position, money and skill wise, hence the theoretical part. I wrote it as a sort of thought exercise to see what people though.
Follow up question: What skills would someone need to go from nothing to somewhat wealthy? Some of this skills I already have are accounting and tax from an CPA firm internship, basic construction/rehab from helping my parents remodel three houses, and business management from my soon to be completed business administration degree. Anything you would add? Thanks again!
Sales. Sales. Sales.
i wish I learned sales early on...
Do you know any good ways to learn sales? Get a sales job, podcast, books etc?
Thanks for all the replies! There were a lot of good responses and a lot that made me laugh. This question was stated as being theoretical. It is not an accurate representation of my current position, money and skill wise, hence the theoretical part. I wrote it as a sort of thought exercise to see what people though.
Follow up question: What skills would someone need to go from nothing to somewhat wealthy? Some of this skills I already have are accounting and tax from an CPA firm internship, basic construction/rehab from helping my parents remodel three houses, and business management from my soon to be completed business administration degree. Anything you would add? Thanks again!
Sales. Sales. Sales.
i wish I learned sales early on...
Do you know any good ways to learn sales? Get a sales job, podcast, books etc?
I have yet to really learn sales. That's why I'm so adamant. I think it's the kind of thing that's harder later on. I started an MLM business to work on it. It's not going well so far. I watched a competing salesman do parlor tricks to sell his product and I couldn't do what he's doing, because I know it has little to do with the actual quality of the product. I'm still working on it.
Lender 路 Minneapolis, MN 路 Member since 2019 路 6 posts 路 5 votes
6y
Start small. Find a home to purchase under market value and learn the skills needed to renovate the home. Get a co-signer or gift from A relative for the down payment if needed. Sell the home and roll the profits into a duplex or small multi unit property. You鈥檙e not going to make millions in 5 years but start making the snowball and as you gain experience and expand your network you鈥檒l find better deals and the snowball will grow into something huge. Be patient and look at our failures as just another lesson on your stairway to financial freedom. Network with as many bankers and investors as you can. Good luck!
MBA, CFP庐, EA 路 Columbus, OH 路 Member since 2018 路 175 posts 路 207 votes
6y
@Chase A.
Business Ownership (starting a new business), stock market speculation and real estate speculation. I say speculation because your returns are going to have to be much bigger than average. That being said, you can become a millionaire over a longer period by doing all three.
Rental Property Investor 路 Fort Lauderdale, FL 路 Member since 2019 路 23 posts 路 13 votes
6y
@Chase A.
Find a way to add value to the greatest number of people possible. Something that is an inconvenience to you is probably an inconvenience to everybody. Eliminate that inconvenience and your a millionaire.
Investor 路 Nashville 路 Member since 2020 路 23 posts 路 18 votes
6y
Do what I did. Buy the system of John R. Burley and do lease options. You can create about 30,000 equity in every deal, so it would take about 33 houses to have a million on paper. At about $200/month cash flow, about $5,000 income. I did 40 houses in my first 4 years and became a millionaire according to my CPA. (and much to the surprise of my family). At 5,000 a month I did not feel like a millionaire. My banker did start calling me Mr. Hendricks instead of 'hey buddy'. The system includes you doing the hard work of learning the system and then finding money partners to put up the credit statement and the down payments.
Professional 路 Parsippany, NJ 路 Member since 2013 路 384 posts 路 262 votes
6y
I would start doing construction asap getting an entry level job to learn the trade. Save some money and study the crap out of real estate in the interim. Keep that credit score up. Learn more construction. Then study the crap out of a market area you want to start Flipping or doing BRRRR deals in. Leverage your construction skills with distressed properties by keeping costs down
My current contractor started construction out of high school. He went on a drug bender for a few years and ended up in prison. Upon release he went back to construction, learned the life out of the business. Started his own business under his sisters name because of his felony. He works his *** off now and make six figures with the business and just bout a nice flip that he will make a lot on once finished...just some insite
Rental Property Investor 路 Salt Lake City, UT 路 Member since 2017 路 29 posts 路 15 votes
6y
@Chase A.
I'm a fairly new real estate investor but I do corporate sales for a living and to finance my RE. The company I work for was just voted the most admired company in the US, and I have at least 10 years of sales experience under my belt, the best "advice" I give to people wanting to acquire sales experience is to get a job in sales for corporate America! They'll train you well and often, and as a bonus you have a high chance of making good 馃挵! I see fresh inexperienced people make 6 figures in their second year - very common! If you're graduating with a degree in business administration I'd say you have a high chance of getting an intro sales job, look for corporate business development, associate district manager, account manager job titles, these will GUARANTEED teach you real sales skills. I'd also do my very best to get an OUTSIDE sales position, outside sales will REALLY teach you skills. If you want more info or would be interested in applying for the same company I work for pm me and I'll give you more info, they recruit people fresh outta college 馃槉! Good luck!
Rental Property Investor 路 Gilbert, AZ 路 Member since 2016 路 3k+ posts 路 4k+ votes
6y
@Chase A. to be honest, and this can sound arrogant, but it is not that difficult to become a millionaire in 5 years if your willing to do the work and make the sacrifices.
First, cut your spending to a minimum. If you鈥檙e single then live out of your car and shower at the gym. Work 16 hour days starting out in construction. Learn every trade as good as possible. It doesn鈥檛 matter if you like it. It鈥檚 a means to an end. Immerse yourself in self improvement audios and business books and real estate podcasts. Focused on leadership development. After you learn the trades well enough and have developed your leadership skills, start chose the trade that you have developed the best and start your own business with it. Then start networking with wealthy people who know how to invest. Build your network. Develop good credit lines. Start offering to partner with people where you and your team will do the work in and develop some sort of profit sharing.
This is probably about 2 years into it and you should have 100k at least by now. Continue networking and learning. Start buying under market homes. Fix them up. Sell half and keep half. The ones you keep, sell on lease options using the BRRRLO Model. Get a partner who is a realtor and within 5 years you could defiantly be a millionaire.
If you are married with a family it might be a little trickier, but you could still do it.
Olathe, KS 路 Member since 2018 路 148 posts 路 207 votes
6y
To be honest, if I needed to become a millionaire in 5 years, I'd probably skip real estate and just do websites. Like affiliate, e-commerce, Amazon FBA, etc. You can flip those just like you do houses. Doesn't require much capital, doesn't require connections, doesn't even require finding good deals, it just requires hard work and dedication to output content/products.
Frankly you could probably do both of them at the same time, since web stuff is only time intensive in spurts, just like real estate. Lot of doing a bunch of work then waiting. You can work on the web stuff while trying to find a real estate deal, and when you find a real estate deal you can work on that and put the web stuff on hold temporarily. You can buy websites that make $1k a month a for around $30k, you get good at that and you can turn that $1k a month into $3k and sell that website a year later for $90k. Same concepts as real estate.