The article talks about “massive wealth”. 250k is far from massive.
We can define 10x annual salary as “wealth”, and 100x annual salary as “massive wealth”. Assume a 250k annual income, a massive wealth needs to be 25M. Staring with 250k savings today, how many years will it take to get 25M net worth from rentals in BA?
My wealthiest clients made their wealth through high income W-2 jobs, sales positions, or owning and selling a business. They then moved that wealth into real estate to create a consistent income stream and enjoy true financial freedom.
BAGD,
New revelation for you?
So it you have more than hundred times your annual expenses, you are massively wealthy?
Is that written somewhere?
Oh I did not see high income W2 jobs. There are plenty of them in BA
The great news is that building a business isn’t the only way to generate massive wealth. You can also do so via a sales or high-earning W-2 job. High earning, by the way, means $500k+. While a $250k salary is great, they are a dime a dozen among real estate investors.
Time for you to make another poll 
Apparently the author is not talking about flyover states. 250k income is not common in flyover states
No, it’s just my simplistic definition to keep discussions focused for this thread
I doubt you’ll make the billionaires list owning residential rental property. Most of those people started a company that went public, or they inherited the money from someone who did. You can still comfortably become a UHNWI with residential rentals.
Does anyone truly scale a business without raising capital? Once you raise capital you’re giving up equity in your business. It’s funny he says 10 years of investing in real estate is too long to get rich, but starting a business is better. Even companies that are promising enough to get VC funding have a 80% failure rate. The bay area is full of startups that have been around for 10+ years without an exit. If you start a true small business, how liquid is that? Small businesses sell at a terrible P/E ratio compared to publicly traded companies.
He was talking from real samples of his clients, I believe its representive of the massively wealthy. Most of the massively wealthy got it from startups, maybe a tech startup, maybe a plumbing company, maybe a restaurant or coffee shop. I believe that rental property is the way for the rich to keep their wealth, not the typical way to strike rich.
BA is a little different due to high W2 income, high appreciation, highly cyclic RE cycle, and the Great Recession. Even so, it’s almost impossible to reach 25M before 35 with rental property
I know plenty of people that have made lots more in rental wealth than $25m
Here’s a timely article:
11 years as a startup. It’ll go down as a successful exit with an acquisition, but employees got nothing. It’s puts the 10 years to build a RE portfolio into perspective.
I originally thought that scaling a rental portfolio was my ticket out of the corporate world. So I bought a 3-unit property and was super excited about adding another income stream to my life. After that purchase, I was making an additional $700 per month. The only problem was that I had tapped out my savings. So I needed to save another $30,000 to buy another 3-unit to increase my income by another $700 per month. Assuming I could do this once per year, I calculated that I could leave my corporate job in roughly ten years.
Why are we wasting time on yet another amateur from flyover states guessing how people get rich from the outside?
He’s buying 3-unit for 30k and getting 700 bucks income, and his savings is already tapped out. He says it will take 10 of these to replace his job income. So his income is 7k a month or 84k a year.
Not a bad income at all but why does he feel he’s qualified to tell people how to get rich? Don’t buy in cheapo flyover states, that much should be obvious. Cashflow won’t get you rich. Appreciation will.
You beat me to it.
To reach 25M in rental wealth, you may have to acquire large apartments and other commercial buildings. 1-4 units would be hard to get financing after certain units.
Of course…But Waypoint broke the mold and now owns 25k homes…old school was to scale up…But 2009 changed everything…and now we have a generation of millienials dying to be fleeced by us landlords…lol
If you own a 1000 houses you could easily be worth $100m or more…