I wrote a series of posts about how to build a Perpetual Money Machine, and Caprica asks:
I thought the title of this blog was called 7 million in 7 years, not 1 million in 20 years?
How do you go about accumulating 7 million dollars worth of property in 7 years and be in a net cash flow positive position by the end of 7 years?
Here’s how I made it to $7million net worth in just 7 years, Caprica:
http://7million7years.com/2008/04/25/my-7-million-dollar-journey/
But that’s not the question that you actually asked; you asked how to build up $7 Million dollars worth of PROPERTY (i.e. real-estate) in 7 years, and that’s another matter entirely.
For example, you will notice that I didn’t reach my 7m7y from real-estate alone (and, you’re not likely to be able to, either): my ‘energy source’ was a business (actually, more than one), but my ‘capacitor’ was (largely) real-estate.
If you are asking if you could build a $7 Million real-estate portfolio in 7 years, using just your income from a job (even a pretty high paying job) I would have to say “not bloody likely, mate” …
… your income just can’t ‘fuel’ enough real-estate deals to produce the annual compound growth rate that’s required!
To see what energy source and compound growth rate combination that YOU need, FIRST you must start with knowing your Number / Date:
If you need, say, “1 million in 20 years’ (and, let’s assume that you’re starting from, say, $10,000 in the bank instead of my $30k in the hole), a job (as your ‘energy source’) + real-estate together with stocks (as your ‘capacitor’) should do the trick.
But, if it’s “7 million in 7 years” you want (starting with the same $10k), then you’ll be needing a more aggressive set of ‘energy sources’ and ‘capacitors’ for your perpetual Money Machine, i.e.:
Your own business (excess cashflow) + real-estate.
It’s all in your required annual compound growth rate … find yours, and work backwards from there …
… but, Caprica – as I suspect do many of my readers, after all of this time – already understands this:
I realized after I posted my response I already knew the answer …, which was to start one or more businesses to help you generate enough money to buy your passive income source.
