How can the average person become a multi-millionaire?

eliquid said:
I must not be looking in the right areas.. where you finding homes for 20-40k, would like to snap those up myself.

The only homes around here like that are foreclosed/auction, and all the big timers already got their claws into those here and outbid everyone else for them.
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Its like the old Russian wisdom. Measure 10 times, cut ones.

REO, Auction, and Short Sales is the way to go.
In short sales you can find companies to negotiate with the bank for a flat fee (say $2-4k) I know of one that charges $2999 in my area. They are really good, and worth the price. Plus I just dont have the time.
Its your job to find homeowners in need or under water (meaning owe more then market value) I got my system to find them, but its up to you to figure out yours. Mailers, signs, CL is what I've seen other people do. This way you get a chance to take the property before auction and reo does.
If you can come in with all cash even better.

Or just go make 100 low ball offers on short sales listed with an agent I'm sure you'll get one.
 


so basically, your hittin the homeowner right before they get the offical notice from the bank to get the fuck out right?
 
^
Thats to close, but yeah usually the bank will stop the foreclosure process if you start negotiation.
Its not hard to convince people to let their house go if they own 250k and its now worth 200k, plus if there's financial trouble - jack pot. You'll have to prove to the bank the homeowners are in hardship (let the negation company deal with that). But yes you can isolate a deal all to yourself. I also like to sell these leads, so I know a little about how to find them. There is many ways, look into it.

I'm not the best at this, I've only done 2. But I have a friend in Arizona that picked up his third this year alone. My plan is to pick up at least one this year, and per year. You will kiss a lot of frogs before you get one.

Oh yeah some local title companies can help you with this. Call around - get informed.
 
Its like the old Russian wisdom. Measure 10 times, cut ones.
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It's 7 times, not 10 times. Stop posing as one of us :)
 
Its not hard to convince people to let their house go if they own 250k and its now worth 200k
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I don't really pay attention to real estate. So please tell me, is it true that prices have gone down by that much? How the fuck can they owe so much for property that costs so little?

Assuming some sort of an initial down payment + some payments against the principal for at least a few years. In a case of owing $250k, what was the value of such property before the crash? It should have been at least $310-340k? Am I way off?


EDIT: did you mean own or owe?
 
bcc423 said:
I don't really pay attention to real estate. So please tell me, is it true that prices have gone down by that much? How the fuck can they owe so much for property that costs so little?

Assuming some sort of an initial down payment + some payments against the principal for at least a few years. In a case of owing $250k, what was the value of such property before the crash? It should have been at least $310-340k? Am I way off?


EDIT: did you mean own or this- owe?
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There used to be things like %100 financing, interest only payments, actually even negative amortization with the option arm loan. (oh the good old days) In most cases the principle amount never changed for the positive. But prices have plummeted.
 
I find this thread interesting. My plan is to just keep hustlin' for another 3-5 years online and I'm done. I'll be "retired" before any of you see any real returns from your rentals.

Making millions online is 10X faster, easier and less risky than making millions from real estate. At least in my world it is ...
 
dsiomtw said:
Making millions online is 10X faster, easier and less risky than making millions from real estate. At least in my world it is ...
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Where ya planning to put your millions and millions of teh moniez, bro?

Just gonna keep that in the bank? Let hyper inflation eat it away?

I don't think any of the posters in this thread are, or have intentions, of being in real estate alone. I wouldn't mind getting into it full time down the road. But for now my priorities are solely online.

You need to park your money in assets that will stand the test of time. Whether that's in stocks, bonds, funds, commodities, or real estate.

Narrow-minded views exactly like what I quoted above will mean, even with xx-xxx million in the bank, you'll be broke before your days are done.
 
Here are my thoughts on investing and becoming a millionaire. Pretty basic stuff.

If you are a normal 9-5 person:
- Focus on your career and try to earn at least $100k/year.
- Spend significantly less than you earn
- Put a reasonable to large amount into stock index funds (or a diversified portfolio) each year in a retirement account or just a normal brokerage account if you want to use the money earlier.
- Buy a house you can easily afford at a time when housing prices aren't overpriced.
- Start a small side business such as AM or real estate investing that doesn't distract you from your career.


If you are a small business owner:
- Focus on growing your business
- Spend significantly less than you earn
- Put as much as you can into stock index funds
- Buy a house you can easily afford at a time when housing prices aren't overpriced.


In both scenarios, if you are doing well, you should be able to save at least a million relatively quickly. Depending on how the market is performing of course. If you keep your money invested in the market for 10+ years and put money in each year you should do extremely well. Also spending significantly less than you earn is extremely important. Accumulating wealth is like making a snowball. If you are just starting out and you are wasting too much money, then it is going to be much harder to accumulate money over the long term. It is much easier to take big chunks out of a huge snowball than a small snowball.

I don't like real estate investing, but that is just me. For me, I will probably only ever invest in my primary residence. I don't like real estate because it is not easy to liquidate if things go wrong, you have to pay insurance, taxes, and fees on a property. You have to manage the people that will live there or pay a company to manage it for you. You have to pay repair costs and fix anything that breaks. There are too many things to manage, too many fees, and too many things that could go wrong.

With a stock index fund you just buy it, pay an extremely small fee, and over long periods of time nothing usually outperforms it. If you happen to need the money for something else (like your business is doing really well and you need the money for better cashflow) just sell it right away and use the money.

Basically: good income/business + saving large percent of income + stock investing + home ownership = easy to accumulate at least a million over about 10 years.
 
r3p1v said:
In both scenarios, if you are doing well, you should be able to save at least
I don't like real estate investing, but that is just me. For me, I will probably only ever invest in my primary residence. I don't like real estate because it is not easy to liquidate if things go wrong, you have to pay insurance, taxes, and fees on a property. You have to manage the people that will live there or pay a company to manage it for you. You have to pay repair costs and fix anything that breaks. There are too many things to manage, too many fees, and too many things that could go wrong.
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Its not as hard as you think. There is Rental Managements Companies that can take of the grunt work of rentals. You just get a check at the end of the month.
But I say, invest in what you understand. Real estate or the stock market.
 
Sanity check: Have any of you guys been landlords? I have.

You wouldn't believe how many rent a place and then are late paying every frickin' month. Or expect you to do thousands of dollars of renos when they are paying $700 a month rent.

Or bring their friends in who stay for months.

You want to get frustrated with humanity, become a landlord. And oh yeah, in lot of city they have rent controls; tenant advocacy councils. Oh the fun list keeps growing and growing.

Trust me, in AM you meet a nicer group of people.

Fricking' renters....
 
^
No problem here. I guess it helps when you run a credit check.
My rental manager is very strict, she even checks out the social#. Plus most repairs, she requires on paper and faxed in no phone calls, that eliminates like %80 of the work. You might have better luck if you let someone else manage.
 
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