So you want to be a billionaire? You need to start with the necessary math. If you start with 1000 dollars of capital to create your dream fortune you will need to buy 1000 million dollar homes for $1 each in foreclosure and then find a way to pay the taxes, mortgages payments and for the up keep. $1 each really just means buying them for $1 down. In order to gain equity in your homes purchased you will have to rent your 1000 mansions for more than the costs involved in keeping them in your property inventory. That will not necessarily be easy. The market for renting mansions is probably more limited than for renting cheap apartments. Considering renting them by the room or turning them into a bed and breakfast empire where you can rent a single room per night for a few hundred dollars or more netting enough to pay your holding costs. Your billion dollars is not free and clear equity but your net worth might be a billion dollars in terms of assets.
Start with a little more money say 10,000.00 and wait for Citigroup, or AIG shares to go down to 1 cent each and buy one million shares then wait for the shares to appreciate to $1000 each. It might take 400 years or more for that to happen but then you will have your billion dollars. If your citigroup shares do appreciate going from just one cent to $50 each you will have net worth of 50 million dollars. That is a start.
Save your money longer and get $100,000 dollars ready to invest and wait for Citigroup shares to fall to 1 cent each and wait for them to appreciate to $100 each before the next major market crash in 20 years and for a few moments before the crash your net assets will be one billion dollars before the shares collapse back to 1 cent each or less.
There is a better faster way to get your billion dollars or maybe even up to a trillion dollars and that is to use your seed money to borrow as much money as possible and then go out and buy as many mcMansions or failed Citibank one cent shares. The point being made in this article is that the average billionaire did a lot more than just buying up depressed assets at cost. Many of them took very high risk gambles with over extended leverage betting on financial success. It can take years to turn unlimited borrowed leverage into solid capital equity. There are notable exceptions to gaining your first billion dollars without a lot of leverage you could become the next Oprah or Paul McCartney. Easier yet is using Futures trading where it is possible to get 400 to 1 leverage deal. There are not too many examples of billionaires that made over a billion dollars that way. There is an easier way. Take your savings and hire the most expensive lobbyists to go to Washington, DC and have them argue that you need a 700 billion dollar bail out. Have your lobbyists ready to convince senators and representatives that you are too big to fail and that it is in the national interest.