How to make Serious Money??

Question

What strategy would someone use to make hundreds of thousands, if not millions, in real estate each year? In other words, what are some proven business plans investors have followed in the past to build their portfolio into a multimillion dollar business?

At this point in my education, i understand how to buy single family properties/duplexes/triplexes/fourplexes, renovate them and then sell them for a profit. Then take those profits and buy an apartment complex. Then basically repeat. Renovate the apartment complexes, rent them out and then sell and upgrade to a larger apartment complex a few years down the road. This process has potential to make great money, but i'm curious as to how investors keep getting more and more and more rich? How do some investors make millions a year in real estate?

Im not looking for a perfect strategy, I just curious as to how some people get so damn rich haha.

Thanks, Ryan

Richard C. · Answer

Underline that.  Twice, in red pen.

Victoria Winters · Answer

Wonderful post, "How to make serious money".  The short answer is get serious about making money.  Setting goals, working a plan and taking action is the recipe.  From your post it appears that you have an understanding about how to make money. To increase requires a change in plan. You may also want to look at your goals to determine if they are set high enough.  Clarity is important.

Bill Gulley · Answer

Well, as implied, you can cheat others.

The misconception of getting rich in RE is that it is done overnight, it is not unless you have a few million to begin with and if that's the case, RE may not be the best avenue as other opportunities. But, this is a RE site.

Wealth is made in RE over time, guru claims and stories are not replicated by just anyone in any market under different skill sets, knowledge and management abilities will be reality.

Many cheat, they are predatory, that isn't "making" money so much as it is "taking" money, lots of things that are unethical, immoral, illegal or underhanded can be done in other things besides RE, greed and justifications only go so far. :)

Account Closed · Answer

Buy distressed SFHs when the market is down and either rent them out or owner finance. I prefer the latter but both work. I know people in my market who bought up dozens of distressed homes in the last down turn for 30k or so each. Now those houses are 60k. I'm waiting for the next down turn to do the same. Good luck.

Steve Olafson · Answer

You just outlined the strategy that I feel in the fastest moving.  Add timing into the equation, and you have a very strong recipe!

It is possible to add $500K in value to a $2M deal in a short time.  Renovate, evict undesirable tenants, and fill with better tenants.

This works if you know what you are doing.

Do a couple of these a year and keep moving up to larger deals.  Just like you outlined.

It really helps if you accelerate the process during down markets and take a break while things are hot.

Joshua Chen · Answer

It helps to network a lot. You network a lot = more connections = more potential deals = more money made

It helps to outsource. You outsource = time saved = more time to check out deals = more money made

How to make Serious Money??

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