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Day 4 Of My Mini-Retirement…
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Becoming a millionaire is a very Americana idea and serves as the end goal to the “American Dream”.

I personally still believe in the American dream as I was born in South Korea and immigrated to the U.S. when I was 7.

Today, my brother and I are 24 and 23 years old with over a million dollars worth of real estate investment. We quickly realized that there is a simple way to becoming a millionaire without saving money, budgeting, cutting credit cards, or even having your money managed by some financial advisor who makes commission off of your hard earned money.

There is a faster and a lot more secure way to having a net worth of a million dollars and that is through acquiring real estate.

The common belief today in becoming a millionaire is by saving up to it. In fact, I want to applaud those who are saving up to a million dollars because it probably won’t happen. Apart from inflation and the volatility of the stock market, the discipline alone to save up to millions is non-existent. As many studies conclude, the majority of America’s millionaires became one through acquiring real estate. Here’s how that works in comparison to simply saving.

Saving up to millions of dollar has worked for one particular period of time. Today, that idea doesn’t work. Studies and data clearly show that those who simply save don’t end up becoming millionaires. Now, are there few people that do? Yes, but these people make unrealistic sacrifices and a battle uphill against inflation. Let alone, a million dollars in a retirement account is simply not enough to live on today. Because of our advancement in modern medicine, people are living longer. If people are living longer, they also need to be able to sustain their revenue and source of income. A million dollars simply cannot sustain an individual long enough to live off of. We need to shift our mindset to cash flow instead of accumulation.

In real estate, the ability to rent homes to other people have been a very profitable business for thousands of years. Historical findings show that the early Native Americans leased land to another tribe in exchange for goods and commodities. Ancient Rome’s wealthiest man, Marcus Crassus, also came to his wealth through real estate. Because of this unique ability to earn income, cash flow can be created by simply taking enough possession of income-producing properties while it builds equity. What’s even beneficial is that real estate can be easily leveraged by certain debt instruments. Because of these abilities, you can buy an income-producing real estate with very little cash. With some knowledge and training, you can even do little to no down payment when acquiring a property. For example, I bought a rental property for $2,500 down on a $90,000 property. In 15 years, the property will be paid off and I will be $90,000 wealthier plus the income that the property will generate.

If you want to become a millionaire in 5 years, the quickest way is to acquire a million dollars of real estate and have it paid off using the rental income or simply enjoy the cash flow so you don’t have to work at a job that produces income that gets taxed before you even see the check.

In real estate, the income from the rental properties can be deferred, leaving you with very little to no taxes to pay on that income. My brother and I at one time acquired an apartment complex valued at $1.5 million. Because of the size of the apartment, we are going to be able to pay it off in less than 15 years and it will consistently generate about $100,000 in annual income. Mind you, we didn’t use our own cash or credit to acquire the apartment complex. We are using strategic partnerships and relationships to raise the money to acquire it. It’s all about what you know, who you know and how to put them together.

Here’s my point…

If you want to become a millionaire in less than 5 years, acquire a whole lot of real estate. Even if those properties are in debt, your tenants will be paying down the debt for you while you still get to earn income from it. With enough properties, you can be earning $5000, $10000, or even up to $100,000 a month from having tenants live in your properties. Stocks, bonds or mutual funds can’t do this even with a hefty dividend payout. You would need to at least own more than 5–10% of a public company to even see enough income to live on but stocks can’t be leveraged with debt when acquiring it. Hence, real estate trumps all investments in terms of producing cash flow and net worth at the same time.

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