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| *Ostroff, Fair and Company>>>Personal Finance |
If you have USD$ 1 million, what will you do to make it USD$ 10 million in the next five years? |
If you have USD$ 1 million, what will you do to make it USD$ 10 million in the next five years? That would require a compound growth rate of something like 46% per year, which isn't realistic for anything resembling a safe investment. So I wouldn't. Invest in resource companies. Gold will go well as will minerals needed for manufacturing, such as iron ore. Oil exploration stocks could be the big movers too. We currently use 3 barrels of oil for every 1 barrel discovered. Create a holding company Launch, buy out, and franchise several subsidiary companies to the holding company. Build up over 5 years Go public - Cash Out Living the dream Build a diverse portfolio of sub 200K real estate properties across the US. Buy homes in good neighborhoods and good school districts in counties that are experiencing job growth and population growth. Homes that are less than 5 years old like this can be found in Texas, North Carolina etc. With more work you can find REOs and negotiate so that you pay little closing costs and purchase at a price low enough to give you equity upfront. REOs are owned by banks and these banks just want to get these homes off their books. With 10% down, you should be able to have your rents cover your payments even after taking into consideration property management fees. Note this takes effort though to find such deals, but once you get the hang of it its straightforward. You can also buy some homes in GO-ZONE areas that were not directly affected by Katrina. There are neighboring areas that were not affected by Hurricane Katrina but have experienced an influx of immigrants. Due to housing shortages, rents have increased, and federal programs (i.e GO-ZONE) are in place to provide very aggressive tax benefits. This is somewhat complicated so more research is needed. But you can basically write off 50% of your purchase price once 10 years have passed. And with these incentives, more business are moving in to these areas, hopefully increasing property values over the next few years. Assuming an average purchase price of 200000 dollars. Using financing, 10% downpayments and rental income you can purchase 50 homes with your 1 million dollars. You are now controlling 10 million dollars worth of property with your 1 million dollars. If your portfolio appreciates at 10% annual return, it should take 8 years to create an extra 10 million dollars for you. With a focus on undervalued homes in strong growth areas, I think this is a strategy that is low risk and gets close to achieving your goal. Worst case if appreciation is only 5%, you'ld at least have made close to 5 million dollars before taking tax benefits into consideration after 8 years. Buy silver. Right now! Current price of Silver is $12.87 per ounce. Check back to see if I was right in July of 2012. :o) Diversify. Invest in a quality GREEN company. Hybrid cars etc. Alternative energy sources. Real estate. Stock. Good luck! http://www.SoGettingRich.com |
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