An outstanding way to really stretch yourself is to create a plan to develop a net worth of $100,000,000 ($100 million) in the next 5 years. You will find that you will try to do it by using techniques that you are familiar with. You will soon find out that you will have to move to bigger deals to get to the numbers you are looking at or start to leverage yourself tremendously to buy a lot of single family homes.
This will take some time to put together. I initially did my $100,000,000 plan on an airplane while flying to a real estate seminar. I will post my original plan tomorrow, and I will also share how it has worked itself out.
Here is how to put the plan together.
Create a plan for every year of the 5 years. Have the previous year add into the plan that you are creating. I would also add in 2-3% to the equity as appreciation. I am going to leave the structure open for your mind to run wild.
A few tips. I would try to focus on deals that have some component of value add. That may be a rehab, problem management or a vacant commercial property. Adding value is an outstanding way to explode your wealth. I would also add in big deals to your plan. You may not know much about big deals but that is OK. I would also look at many different types of deals such as land, development, apartment buildings, commercial properties, etc. If you have questions please post in the comments section (I am sure others will have questions as well and we can all learn together).
Stay tuned for my $100,000,000 plan. Also feel free to send me your plan and we can brainstorm around it.
I am anxious to see your created plan! I will be happy to share mine after it is completed as well...
Posted by: Ken Mood | August 10, 2007 at 09:23