Millionaire?

Question

How many Millionaires are there on this forum?

When did you start in RE, and when did you hit 1 Million in Net Worth?

Rich Weese · Answer

I wrote a book 8 years ago detailing my early experiences in real estate called From Janitor to Multimillionaire. That covered my career through 1980. I'd been in real estate for 7 years. THE BOOK IS NOT FOR SALE!! I give it away on certain conditions.
     I have a few LLCS which funnel into an Irrevocable Family Trust that holds the current assets. I'm not PERSONALLY a millionaire, but as manager and trustee, I probably have access to more than that.  Rich

Frank Adams · Answer

It's not how much you've got, it knowing how to live (and enjoy life) on what you've got.

I'd suggest reading "The Millionaire Next Door", more than once. Read it and understand the philosophy of living below your means.

Last night on NPR I heard part of a report about the "housing crisis" in Las Vegas. One guy was described as "a former real estage mogul" who had had a net worth north of a MILLION DOLLARS as of a couple of years ago. The guy was saying that he had had, "several luxury cars, a very high dollar house, a big boat and a 'house on an island in North Carolina'".

Of course now he was (IIRC) living in a rental owned by a friend. IMO that guy DESERVED ALL THE BAD LUCK THAT CAME HIS WAY. I've always lived below my means and the last time I took out a mortgage (1995) the loan officer told us, "you [/b]should[b]be buying a house at least 3-4 times more expensive than this one" That house cost less than our gross income. We just laughed and said "no thanks".

Frank

Timothy W. · Answer

I restarted about a year and a half ago after losing it all.  Mike's figures are right - about 250k per year in equity...but again that doesn't mean squat.  Without cashflow you're sunk and the greater your equity, the greater you're sunk.

The greater victory for me is I've been financially independent for 2 years now.

Rich Weese · Answer

I second The Millionaire Next Door, but I like the Millionaires' Mind even better. Both by the same person.

Brian G. · Answer

Mike, not even enough for cookies : ) ?

Jim K. · Answer

Glad you're not looking for anyone to lay out their finances. Yes, there are a lot of successful people in RE. There are also a lot of losers. Probably more losers than winners. But I've found nothing else in my life where you can live beneath your means, consistently act in an honest and forthright way, and still make it on a modest income.

Michael Rossi · Answer

I doubt if anyone on here will talk about their personal income or wealth.  I know that I wouldn't, if for no other reason than security.

However, I do know for a fact that there are several millionaires on this forum.  If you work your butt off (and assuming you have some money and great credit), you should be able to reach that level in 3 to 5 years.  Keep in mind that being a millionaire won't even buy you a bag of McDonaldland cookies for lunch.  So, while it might be nice to think to yourself that you are a millionaire, it definitely won't pay the bills!

Mike

Erich Henson · Answer

It took me about ten years to build up my portfolio to a net worth of $1 million by the age of 40. On track to hit $10 million net worth by the age of 50, assuming a 5% average appreciation rate, mortgage pay down, reinvesting some of the equity into more real estate..

Mark H. Porter · Answer

I’ve been in real estate now for 24 years and the first million was identified after about 6-7 years.  This has only been a part-time gig anyways as I’ve always had full and part-time jobs in addition to the real estate.

There comes a time when you’re working your numbers - maybe doing a PFS for the bank, maybe just checking what you can liquidate for, and all of a sudden it’s 7 digits.  I didn’t even know what to do when it first happened.

After that it really is “amount of smart work” = “greater possibility to hit home runs”.  Ive always been a hands in guy so I was the one running to Lowe’s getting contractor supplies so I wasn’t paying them $50 per hour to go shopping and catch up on their nicotine.

It still amazes me how and why it happened.  I would say I’m still a small player in this game but I ’m buying my first NNN buildings for large chains. My wife gets quite intimidated by the numbers I banter around as neither one of us come from means.

My day? Well, I’m always “on”. I always take calls and respond to emails quickly.  As I still work as an IT project manager all my real estate stuff is done at night when I’m searching and running numbers in new properties.  It’s a bear and you’ll sacrifice family and friends time to get there.  It’s not free.

Account Closed · Answer

MikeOH wrote:  If you work your butt off (and assuming you have some money and great credit), you should be able to reach that level in 3 to 5 years.

I bet that "some money and great credit" coupled with willing to "work your butt off" describes about 2% of the members of this (or any other) board.

I'd say to any gurus who are still selling their "no money/no credit" path to getting rich seminars:  GET REAL.

Millionaire?

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