A normal office worker asked me about the investment methods and secrets of a friend who became a billionaire, extracting every detail
Hello everyone. This is master_k.
In this series, I, who aims for assets in the billions, will introduce the investment techniques of my billionaire friends and other billionaires in the world!
By the way, do you know the fastest way to improve your investment results? It is to analyze how successful people do it and imitate them.
So, this time, we’ll introduce the investment methods and keys to success of a close friend who became a billionaire while working as a regular employee, and we’ll share them with you.
・I’m an office worker, but I want to become a billionaire
・I want to know the investment methods of people who became billionaires
・I want to know the secrets to their success
This article is recommended for you.
Now, to the main text.
Table of contents
2. Tachibana’s investment methods
1. Introduction of Tachibana
A brief introduction to Tachibana.
Age: 42
Gender: Male
Occupation: Employee at a major manufacturer (moved from a small to a medium-sized manufacturer)
Education: University graduate
※ He says he attended a third-rate university, but I don’t know which one.
Hobby: Car customization
Investment method: Real estate investment as main, with some stock investments
Annual income: about 20 million yen
Next, the episodes.
I met Tachibana 11 years ago in 2007.
We lived in the same apartment, and got to know each other at a social gathering.
At that time, I was a new employee with not much work, so I studied stocks in my spare time.
After reading dozens of books in half a year, I was about to start indexing investing.
I and Tachibana had only greeted each other, but when the topic turned to stocks, I learned that Tachibana had invested in stocks and that he owned a single-room apartment for profit and was a salaried landlord, which led to a lively investment conversation and we became friends.
For six years until Tachibana got married and moved, we hung out, drank, and talked not only about stocks and investments but also about private life.
At the end of 2017 we met again after a long time, had a drink, andI heard the report of assets exceeding 100 million yen.Since we had been long-time investment companions, I felt genuinely happy as if it were my own achievement.
Of course there is joy that a friend Tachibana achieved a great feat, but
there was also joy in knowing that “a company employee can build great wealth through investments.”
2. Tachibana’s investment methods
Now, the main part begins. Here are the details of Tachibana’s investment method and the asset progression (some are estimates).
● Details of the investment method
I’ve summarized it briefly in the table below.
Tachibana’s method is centered on real estate investment focusing on one-room apartments. Now that rental income has increased, he has shifted the main focus to a multi-unit building.
| 1998 Age 22 |
Went to a small-to-medium manufacturer. |
| 2003 Age 27 |
Transferred to the major manufacturer where he currently works. Substantial income increase (estimated annual income about 7 million yen). With the increased income, started stock and real estate investments. |
| 2007 Age 31 |
Owned two one-room apartments. Rent income 120,000 yen/month. Debt about 8 million yen. Met master_k around this time. |
| 2012 Age 36 |
Real estate prices fell during the Lehman Shock, so he bought more. Total rent income from five units is 250,000 yen/month. Debt about 40 million yen. |
| 2013 Age 37 |
Married. With wife’s double income, he bought more properties. |
| 2017 Age 41 |
One-room apartments: six units (sold older properties, bought newer ones); owns two multi-unit buildings. Rent income about 1,000,000 yen/month. Debt 80 million yen. Cumulative stock investment profit of 7 million yen, overseas real estate lease profit of 13 million yen expected. Combined with salary, annual income exceeds 20 million yen, and after offsetting debt and real estate current values, surpassed 100 million yen! |
From what I heard, the income and asset progression likely looks like the image below.
● Asset progression
When we first met, he was reading the classic Rich Dad Poor Dad. Now, he has truly become the Rich Dad, haha.
3. Points for success
So, what everyone wants to know.
I directly asked Tachibana the points of his success. There are four main points.
① He had money to invest.
・Transferring to a major company increased his income and was a key factor.
・He saved more by living frugally.
② Buy the first property quickly
・It became good practice for maintenance and vacancy management, building landlord skills.
※In Tachibana’s case, the properties were older, so it was especially good practice.
・Because he bought with cash, cash flow increased and served as the driving force to buy the next investment property.
③ Able to get a low-interest loan
・Because he bought the first property with cash, he could use it as collateral when buying the second property.
・Working for a large company gave him high credit.
※For large companies, it is common to be able to borrow after three years of employment, making it ideal for becoming a landlord young without initial capital.
・Interest rates in the market were low.
④ Could buy when real estate was not popular
・After 2008, due to the Lehman shock, real estate popularity was low and good properties were affordable.
These four points. If you want to start real estate investing, keep them in mind.
Also, when I asked, “What is important when starting real estate investing from now on?” the following answers were given.
・The iron rule of one-room investment is: first location, then location, then 3 and 4 are nothing, and 5 is location! Within 10 minutes on foot from a station is absolute.
※If the location is good, even older buildings can be rented, so that’s usually fine. If not, vacancies become a big issue.
・Never buy a property good for solicitation by salespeople! Such properties are hard to sell and the salesperson’s commission is added!
That’s what was said.
So, this time we introduced Tachibana, who, while working as an office worker, achieved over one billion yen in real estate wealth.
Also, Tachibana continues to be active, starting a business, managing relatives’ assets (to save taxes when children inherit), and joining an expensive but high-quality real estate circle that costs tens of thousands of yen annually, to receive information and advice. It seems he will become even wealthier.
When I saw him recently, his cumulative assets had expanded to 160 million yen, and he was in the middle of loan screening to purchase another multi-unit apartment worth around 80 million yen.
Nowadays, the scale is bigger and he is looking for a single building, so he is taking part in an expensive consulting service that costs more than 1 million yen per year to receive information and advice…
Ten years ago, when I was drinking with Tachibana in my room, I told him, “I will aim for 100 million yen,” and Tachibana laughed and said,
“I will buy a single floor on the top floor of a high-rise apartment and drink wine while looking at the night view!”
Watching him, I feel like I could really do it myself, and that makes me happy.
So, that’s all for now.
In addition to this, we also publish useful investment information on the blog!Please take a look!Our blog: shameless! ～Aim for 100 million pocket money! Exposing all asset management results blog～
Written by: master_k
