Fun Feasibility: How would you go upon making 1 million in 5 years
Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes
Fun Feasibility: How would you go upon making 1 million in 5 years
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votesFirst, I'd find a better job and find a bigger shovel to pile cash. $20 per hr. in Settle isn't cutting it. $40 per hour should be the goal. The cost of living is crazy and the ability to invest in ____ would only ever be an after thought.
Second, growth that $10K and at least BEAT INFLATION. Learn to invest in value companies, stocks, bonds, or mutual funds. Max out your retirement accounts. Take advantage of employer matched $$$. This is base level investing in my opinion. If someone isn't doing these things they shouldn't be buying real estate; especially investment properties.
Third, network and market research. Spend 6-months researching the market and continue saving money. Target neighborhoods and understand what a deal looks like. By this time (1-2 years realistically) said person would be in a great position to buy real estate, house-hack, partner, or flip a property. Get things out of order and you're most likely putting the cart before the horse. If this ground work is laid out correctly you can rinse and repeat, buy and hold, and repeatedly growth the net worth.
35 Replies
- 3yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
I personally would pick a market get a RE license that will cost you less than 1k. and go work on a big players team.. get paid to learn.. Commissions is how you improve your income and real estate world is how you improve your understanding and build contacts..
Just hanging out there with no credentials is not going to land you money partners or anyone esle for that matter.. just sayin..
I know nothing about Seattle, so I'll just take the scenario in a hypothetical area and what I would do. I think it is highly unlikely to achieve your goal, but getting half way there would make getting all the way there much easier than it was to get half way
#1- Make sure your W2 is in the field where you are getting a 2 for 1... somebody is paying you and you are learning things that help you in real estate..... work a trade job for a contractor, or become a realtor, maybe get involved in Property management or lending.... whatever your JOB is, it has to educate you for your larger goal or you won't make it. And leverage that job into opportunity... if you are working in the trades, network for side jobs, handyman jobs... earn income, make connections, stumble into leads. If as a realtor, make all the connections you can, listen to people, never eat lunch alone, take folks to lunch you can learn from. If in lending, make connections with movers and shakers.... ABC companies keeps taking out loans for real estate transactions.... how do they find them, can you get a finders fee for bringing them... things like that
#2-Hustle..... if you want to get anywhere near your goal, you have no choice but to live it. You can't work 9-5 and make it..... you need to work your W2 AND LIVE your real estate goal. Find ways to make every part of your life more efficient.... like has been mentioned, your time is finite... have to maximize it.
#3- Never pass up a conversation that you feel might help you... who cares if the landlord with 150 properties is intimidating, chat him/her up. You need to turn over every rock and hope it lands you a connection that moves you forward. Example... a friend of mine found his private lender volunteering at a church function. Never would have guessed in a million years the guy had money.... but while explaining he dabbled in flips and rentals on a DIY type of basis, the guy said, "If you are every looking for a money partner let me know"..... 10 or so years later, friend went from about a million dollar portfolio to about a 10 million dollar one... since that day, he's never had to hunt for $$$ to swing deals, all because of a conversation at church.
#4- When you get hit in the face that first time-- and you will-- you have to get up and keep moving. Have to fight the battles, ignore the naysayers and keep your eye on the prize.
In reality, there are a lot of different ways to accomplish your goal as far as strategies, but all of them will require the same mindset and drive.... good luck.
- Investor · NH · Member since 2023 · 54 posts · 25 votes3y
I'd either move to a place where it doesn't cost so much to buy a home or start buying lottery tickets.
The odds really won't be in your favor to make 1M in 5 years when you're only making 20 bucks an hour and starting with $10,000.
Making 1M in 5 years is too far out, find a safe way to double the 10K, do it again. Then aim for $100,000. Get to 6 figures before you worry about 7 figures.
Get the power to gain money and grow your money, then you will be able to keep your money.
- Member since 2022 · 20 posts · 22 votes3y
I like that approach. It's bite-size and doable. And it will inevitably get me there. Thanks!
- 3yAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Ran Iarovich I started out about 4 years ago making somewhat less than you and currently my W-2 pays about the same. I have worked my way up the ladder from owning 1 property from that income that I sold to now having 7. If you save a lot and get creative possibly with house hacking which I did for years to increase my income, you can significantly raise yours.
Watch YouTube videos and learn a new skill that makes yourself more marketable If you don’t want to become an electrician or plumber as some suggested.
There’s actually quite a number of self promoted success stories right here on Bigger Pockets. One was in the feed right below this thread. As with most success stories somebody is typically leaving part of the details out. I think it would probably be better to start with a closer mile marker as a way of generating positive movement. $1 million net worth in five years is a bit too vague. In my opinion there are more people with $1 million net worth than you might think. There are also a lot of people that are making a small return on Networth so that is not a really good measuring marker in my opinion.
- Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes3y
Invest in low cost ways that will enable you to make more money.
1. Real Estate License
2. Mortgage License
3. Notary License
4. Contractor License
And go find deals for other investors while making money from having the 4 licenses above.
- Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes3y
Quote from @Adrian Chu:
Invest in low cost ways that will enable you to make more money.
1. Real Estate License
2. Mortgage License
3. Notary License
4. Contractor License
And go find deals for other investors while making money from having the 4 licenses above.
Would you get all of these or pick and choose?
- Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes3y
Quote from @Joshuam R.:
Quote from @Ran Iarovich:
Your profile:
- no assets
- no liabilities
- $10,000 in your bank account
- $20 minimum wage 9 - 5 job
- Location: Seattle, Washington
- connections already established with vendors, education, lenders, and agents
Your goal:
You must find a way to generate $1 million in total net worth within the next 5 years. All your friends and family members think you are crazy but you have a burning passion and $10,000 to your name. How would you spin together creative real estate financing to make this dream a reality within Seattle, Washington?
Leaning into the "fun feasibility", I would say create content on OF app, get them bananas from the tree.
Anyone's profile:
- no assets --> skip
- no liabilities --> skip
- $10,000 in your bank account --> Master monthly budget, assigned every dollar, that way you can start cutting out miscellaneous cost, and minimize gratification, entertainment, wasted spending. Frugal living = add more to savings. For your DP and closing cost. Apply for first time home buyer funds/credits in your local county/city. Buy a basic 2/2 or 2/3 using FHA loan or 203k or NACA. A property that you see wasted space that as a window and a vent. That way you can build a single wall/door/ and a corner closet to build equity ($10,000 to $20,000 low numbers, depending on property comps ranges from $30,000 to $50,000) simultaneously hack it. and so on. Now you can cross out
-no assets-$20 minimum wage 9-5 job ---> I was in this scenario, I looked for in-house opportunities, and vertically grew my skill set , received few raises, and knew my market to jump ship to continue to grow my income and value in such field. But at the same time remained frugal and keep the money in savings put to work as @Joe Villeneuve and others mentioned, get it moving, put that dollar to work for you.
-Location: Seatle, Washington ---> love that place.
-Connections already established with vendors, education, lenders, and agents ---> keep this going, everything you do mentioned above will keep getting you ready for the future opportunities with all these connections.
Best wishes
this comment wins the #1 spot.
- Rental Property Investor · FL · Member since 2016 · 271 posts · 92 votes3y
Quote from @Ran Iarovich:
Quote from @Adrian Chu:
Invest in low cost ways that will enable you to make more money.
1. Real Estate License
2. Mortgage License
3. Notary License
4. Contractor License
And go find deals for other investors while making money from having the 4 licenses above.
Would you get all of these or pick and choose?
Just sharing my personal my status following this list by @Adrian Chu
For adding to my utility belt, I am currently doing #1, studying for the state exam. And this will also season up trust or optional service to be offered with our current wholesale company. The goal is to give the client to have option A be sell of market and its pros and cons, and option B sell on MLS with its pros and cons.
Then going for #4 to continue to vertically integrate my career W2 skill/assets into my personal LLC , networking , etc.
#2 I would partner with someone.
#3 not necessary if you are doing the other ones. For this one I would only focus on mastering #3 as much as possible and make that gig grow to $100k or more a year. If that's not the goal with #3, let someone else do it.
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