Millionaire in five years

Springfield, MO · Member since 2017 · 35 posts · 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.

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Dennis M.

Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes

I’d buy lotto tickets every week and cross my fingers hoping things will get better in my life .. within 5 years time surely I’d hit it big

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Leandro Zhao
Rental Property Investor · London, Ontario · Member since 2019 · 40 posts · 10 votes
6y
"Sucking at something is the first step to be good at something" - Jake the dog
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Clifford Paul
Rental Property Investor · Member since 2018 · 483 posts · 956 votes
6y
Originally posted by @Nick Gann:
@Clifford Paul
Care to tell me more about thw billboard business? My wife boards dogs!

Nick, one of my ranch properties boarders a highway. It had 2 billboards when I bought it. The lease is $1350 a month for each board. It's completely hands off as the company I lease to takes care of everything including maintenance and electric. I have another property that has a chance to get some wind turbines... that's where the real money is.
1 Reply
Nick Gann
Real Estate Agent · Murfreesboro, TN · Member since 2019 · 194 posts · 181 votes
6y
@Clifford Paul:

I have a friend who repairs windturbines for a Dutch company... how'd you get that prop?
0 Reply
Omar Diaz
Fort Polk, LA · Member since 2019 · 29 posts · 14 votes
6y
@Chase A.
If you haven’t read it already, a good book to read is 7 figures in 7 years to get the juices flowing. Definitely opened my eyes.
1 Reply
Franklin Romine
Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
6y
@Chase A.
The fast way to becoming a millionaire is having friends that are already millionaires.
1 Reply
Rory Silva
New to Real Estate · Miami, FL · Member since 2019 · 8 posts · 4 votes
6y
@Dennis M. Probably even 4 years
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Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Chase A.

Get Skills, Don't Be Average? And you get money?!!! 🤷‍♂️
1 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
6y
Originally posted by @Dennis M.:
@Tracy Johnson-Cantwell
It’s to prove a point . Most people never study what it takes to be a millionaire..they simply go through life with their fingers crossed hoping things will get better for their lives . But we know all too well , the future doesn’t get better by hope ..it gets better by plan

Just to add to this, the most important point made in this thread, I think the statistic is that 38% of people who make under $25K a year think the lottery is their best chance of ever having a net worth of "several hundred thousand dollars."

This is why practically everyone who has ever been raised broke and yet has managed to scrape some money together in their lives dislikes the lottery and the mentality of people who play regularly, to say nothing of the vermin in office who think it's good public policy.
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Ryan Oneal
Member since 2019 · 5 posts · 5 votes
6y
@Chase A. Learn about crypto currencies and how to trade them. Then take those profits to real estate
0 Reply
Ryan Oneal
Member since 2019 · 5 posts · 5 votes
6y
@Shane H.
Read Spin Spelling, Challenger Sale, and Lets get real or Let’s not play
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Account Closed
Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
6y

@Jim K. good point you made above about the lottery tickets. You see the tragedy of this thinking. I will use this line in the future. Thanks for sharing.

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Account Closed
Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
6y
For what’s it worth. Much of the ideas promoted on BP is for people with jobs that can obtain standard financing to buy real estate. If I hadn’t gotten into some alternate thinking years ago then, I would not have made as much progress over the years.
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Matt D'Arco
Real Estate Agent · Wakefield, MA · Member since 2015 · 26 posts · 12 votes
6y
@Chase A. The first thing I would do is borrow money to get my real estate sales license. The idea is to use the money from being an agent to invest in rental properties. The best way to make a lot of money is to take a job that has no income ceiling and rewards you for hard work. This could be any job in sales that offers a commission. Personally, I choose being an agent because I’m working in the industry I’ll be investing in.
Lead generation is key to converting people in dollars. One small portion of a commission can easily pay for a great lead gen system. BiggerPockets offers one to premium members.
Now if we're talking being a millionaire as in net worth, then you want to get into buy and hold properties. The route I like if focusing on equity is to buy a single family home that needs work and using the BRRRR strategy so often talked about on this site. Use a private lender to get the financing. Do your due diligence and make sure that the property will be worth well more than what you bought it for and paid to get it renovated. Refinance, rinse and repeat. Keep the property and rent it out.
If your focus is more on cash flow then focus on multi family properties. The value of these properties is determined on how much money they make. If you want the value of the property to go up, then find ways to add value to the property so you can increase the rent. If you can do that and simultaneously lower costs, now you’re onto something. Rent goes up, costs go down, value of the property goes up. As good equity goes up, so goes good net worth.
You’d have to be aggressive but to do what you’ve described above is definitely possible. If you have the work ethic and the drive and the willingness to learn and to put aside material things and experiences for a while, then you can 100% accomplish this.
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Mat Lewczenko
Investor · Lenexa, KS · Member since 2010 · 215 posts · 121 votes
6y
1 strategy:
BRRRR 4 properties a year, creating $50k in equity from improvements. That's $200k per year in net worth, x5 years, $1million net worth and 20 cash flowing properties. If you average $200/door net cashflow that's also $4k/month. If you also work to get 100% bad debt free in the same 5 years, most people can cover necessities with $4k/month so you could also become financially free in the same time. Double bonus.
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Shane H.
Member since 2018 · 433 posts · 208 votes
6y
Originally posted by @Account Closed:
For what’s it worth. Much of the ideas promoted on BP is for people with jobs that can obtain standard financing to buy real estate. If I hadn’t gotten into some alternate thinking years ago then, I would not have made as much progress over the years.

Yep. And they come at people angrily if they don't fit in that box. Telling people they don't have enough to start investing. They're starting too early... Can you imagine? Starting too early?! Well that defies Mathematics...

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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
Well with no skills and no money, I do not think you can marry someone who is wealthy. You at least need the skills and money to dress well and basic social skills.
Maybe you could legally change your name to Kardashian and start posting on social media as the long lost relative. Then start doing some cosmetic surgery. Ya know cut something off or put plastic somewhere... There are lots of people with no skills making a killing on social media.
Maybe try lottery tickets, but that's a long shot. The long lost / illegitimate Kardashian would be better.
Drug dealers don't need much in the skill level, maybe that, or growing pot, but the bottom is dropping out of that as its legalizing. And your living expenses will be quite low once you get convicted and living in prison with free room and board so that million will last well.
To make in in real estate you need some skills, either the smooth talking whole seller, the construction/building skills for fix and flip, the finances for rentals, etc. Real estate and earning money fast is not a good mix unless you already have knowledge and skills.
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Kevin D.
Realtor · Member since 2019 · 12 posts · 1 vote
6y
@Chase A. minimize expenses and live like a broke man stop blowing money on stupid stuff like going out with friends. try to stop eating out, these little things are huge
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Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
Originally posted by @Kevin D.:
@Chase A. minimize expenses and live like a broke man stop blowing money on stupid stuff like going out with friends. try to stop eating out, these little things are huge

Totally agree that the little things if overdone can add up quickly!
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Calvin OzanickBusiness Member
Property Manager · Janesville, WI · Member since 2017 · 707 posts · 297 votes
6y
Originally posted by @Shane H.:
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.

So my living expenses come in at roughly 1500 a month. I aim to make roughly $60,000 in a given year counting my commissions. So if I spend $18,000 per year to live, what I do with the remaining $42,000 is the difference maker. If your goal is to be a millionaire in 5 years, you need to be aggressive with your decisions but also with your saving. If I own a home which I live in, and use the remaining 42k to purchase an investment property, then I might add my cash flow an extra $200-$500 per month net, or $2,400-$6,000 per year. This means that my net savings or reserve in a year go from $42,000 to $48,000. Then, my next step is to acquire about 3-4 of these homes. Obviously all of the savings do not need to go towards one home or one unit. Within 5 years, you could absolutely reach this goal. 90% of people will not because their lifestyle is not suitable to making those cuts and living on what is needed not wanted.

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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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
living frugal in personal life and aggressive in your business life are obviously key . As far as business goes the easiest thing to speed up the process and become successful quickly is find someone else who is already doing it and link up with them. Add as much value as you can and mimic what they did . Everyone tries to reinvent the wheel when all you gotta do is shadow a person already crushing it and do what they do . The common misconception is to be unique , be a lone wolf , get new ideas nobody else has done and hoard all the market share for yourself . This usually fails ! You want to do the opposite and be part of a master mind with successful people who already cracked the code and did the hard work .
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