How $1 Million Becomes $1 billion
Start with US$1 million. It is enough to begin. It does not have to be your own money. In fact, it is better if the first million dollars used to begin building a real estate portfolio is someone else’s money. This is the same amount that the father of Donald Trump loaned to him, for “the Donald” to get started in taking over Manhattan.
If, as a real estate investor. you learn one simple thing; the most important thing is to use other people’s money (OPM).
How Does One Million Become One Billion?
Certainly, this is not easy because one billion is one thousand million. However, it is doable with the power of leverage and doubling up.
For inspiration, just look to the example set by Kyle Macdonald. He started with the simplest thing – one red paper clip (read more at redpaperclip.com). He continued to trade and used leverage to build up value from the very smallest thing – a single red paper clip. In the end, his last trade was for a house.
Encouragement Not Discouragement
When someone says, “That is not me,” “I could never do that,” or some other BS, stop them! Challenge them! Force them to find the internal strength that we all share.
Franklin Delano Roosevelt, one of our greatest presidents said. “The only thing we have to fear, is fear itself.” He was leading the country through the worst economic times possible during the Great Depression. He was a polio victim confined to a wheelchair – so what excuse do you really have?
Get a Great Real Estate Agent to Help
If the goal is to build up a massive, very valuable. real estate portfolio, get experts on the team. There is absolutely no way to do this alone. Reach out. Find the experts. Engage them. Learn from their experience.
The Power of Two
If one is lucky enough to get their hands on one million dollars to start with; the math works out really well. Of course, one can start with less and then the process takes a bit longer. Nevertheless, for this example we start with one million dollars in available cash to invest.
Real estate already has leverage built in to the process, so with one million for the down payment it is possible to control a property worth 10 million. It is better if the purchase price is 10 million but the actual value of the property is 20 million.
1. So one million becomes 10
2. 10 million becomes 20
3. 20 million becomes 40
4. 40 million becomes 80
5. 80 million becomes 160
6. 160 million becomes 320
7. 320 million becomes 640
8. 640 million becomes 1,280
That is only eight steps to go from a million to a billion. Wow!
Summary
Any person can do this. There is no brilliance required. Just look at the stupid things said by Donald Trump and you will realize this path is available for everyone. If a person has only $10,000 it takes ten more years, but it is still possible if they trade up and leverage up to make their dreams come true.