June 17, 2025 • 32 mins
Master the BRRRR Method: Real Estate Investing Strategy Explained | Teaching Tax Flow Ep. 140
Join Jim Ingersoll from Deal Maker as he breaks down the powerful BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) for real estate investors. Learn how to leverage other people's money, maximize tax advantages, and build wealth through strategic property investment.
KEY TAKEAWAYS:
• BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat strategy breakdown
• Start with refinancing in mind and work backwards for better results
• Community networking is crucial for real estate investment success
• Being an employee creates the highest tax burden vs. real estate investing
• Creative financing strategies using other people's money (OPM)
EPISODE BREAKDOWN:
- Jim's Journey from Corporate America to Real Estate
- BRRRR Method Step-by-Step Implementation
- Tax Advantages of Real Estate Investment Strategies
- Leveraging Other People's Money for Growth
- Building Your Real Estate Investment Community
- Creative Financing Techniques That Work
GUEST EXPERT:
Jim Ingersoll
Deal Maker Founder
jim@elitedealmakers.com
- Nearly two decades in real estate investing
- Expert in wholesaling, flipping, and rental properties
- Founder of educational events attracting thousands of investors
- Specialist in collaborative real estate strategies
SPONSORED BY:
Wealth Builders Mortgage Group
Specialized lending for real estate investors
wealthbuildersmortgagegroup.com
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
John Tripolsky (00:04):
Hey, everybody, and welcome back to the teaching
tax flow podcast today, episode140. We have a great guest
joining us who's gonna help usdecipher and decode the BRRRR
method when it comes to realestate investing. So before we
get into that topic with ourguest, let's take a brief moment
and thank our episode sponsor.
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John Tripolsky (01:24):
Somebody is missing from the episode at this
current time. He will join usshortly. However, he's not here
right now. And why I bring thatup right? Timing is everything.
Literally with everything. Ifwe're talking taxes, finance,
planning, real estate investing,driving to the grocery store,
dropping your kid off atdaycare, picking your kid up
from daycare is a whole anotherstory about being on time. But
(01:46):
Chris Picchiro is missing anaction at this very moment. So
we brought in somebody else whowas planned anyways, but here he
is. So Jim Ingersoll fromDealmaker.
So I'm gonna let Jim tell us hisstory a little bit. Not only how
we got to where he is now, butfrankly, why he's here, but also
(02:08):
all the amazing things thatDealmaker and that community are
up to and why we are bringinghim in to talk about the BRRRR
method. Now we're also nottalking about winter months in
Michigan because, yes, that'sBRRRR, but this is completely
different. Jim, welcome to theshow, man. How are you doing
today, bud?
Jim Ingersoll (02:25):
I am doing good. It's not burr here in Virginia
today. It's pretty warm. It'sgonna be around 80 and
beautifully sunny weather. Ilove it.
Thanks for having
John Tripolsky (02:35):
me on. Absolutely. You know, you say
it's beautifully and sunny theretoo. You know, in Michigan, I
think it's, like, 80 somethingtoday. So if anybody's watching
this and not just listening toit on Spotify or wherever, I
have this, like, gleaming sunshining in because it's not
always sunny here outside of AnnArbor, but I have this little
sliver that's just coming in atme that I can't block.
(02:56):
So, Jim, so so me and you andChris, we met not too long. I
met you not too long ago at yourevent in in March. Not literally
not too long ago. And y'all'scommunity really it really
impacted me a little bit. Again,I know we've talked about this
going to so many events, justthe makeup of the individuals
(03:17):
there.
And I'll let you talk about, youknow, really the type of
individuals that go to that, butit went so much further than
just, hey. This is how you makemoney. Because you can go to a
thousand real estateconferences, and that's their
thing. Right? You're there tomake money.
Let's make this as profitable asit possibly can. I feel like you
always hear that, and then youalways hear the, well, it's not
(03:37):
a get rich quick deal, but youguys offered so much more to it.
But then, you know, thinking ofthe BRRRR method here, and I
won't give the definition of it.I love saying it because I
always get my tongue tied aroundit, and I'll I'll let you get
into that. But, like, tell us alittle bit again about how you
got into this because you youhave a great story about your
community.
(03:58):
And then, really, you know, whatwould you guys do? Like, what
Dealmaker's all about? And thenwe'll talk about BRRR.
Jim Ingersoll (04:04):
Okay. Well, I left corporate America almost
twenty years ago. Now it's beena really long time. And, at that
point, I was running twofactories. And when I was told,
we had to close everything down,corporate came and said, that's
it.
I had to lay everybody off. AndI thought, this whole corporate
thing is way overrated. Like,it's fun growing a business. It
(04:27):
sucks to lay everybody off. AndI said, that's it.
I'm never going back no matterwhat. So I began jumping back
into real estate. Our initialreal estate venture, my wife and
I started in our early 20s,didn't go well. So she made a
statement like, I'm never goingto be a landlord again. That
cost me about ten years ofinvesting.
(04:49):
But when we came back in, Ilearned to invest in myself and
get some help in training andmentorship and build systems and
processes and networks. Andeverything started to click when
I came back the second time. Andfrom there, the rest is history.
We just started wholesaling andwe started flipping a bit. And
(05:10):
then along the way, to rent.
I was sort of doing BRRRR beforeBRRRR was a thing. That term
didn't exist, like, fifteenyears ago, really. But neither
did Facebook, YouTube, orpodcasts. So That's true. It's
changed.
And it's probably it's probablyreally
John Tripolsky (05:27):
I mean, I'm sure you had that moment. You're
like, wait a minute. They justgave an acronym an acronym to
something that I've been doingthis whole time.
Jim Ingersoll (05:34):
Exactly right. A whole bunch of crazy looking.
John Tripolsky (05:36):
So, like, you probably think of it. You're
like, I'm not gonna call itBRRRR. I'm gonna call it my own
methodology and my own processfor doing this.
Jim Ingersoll (05:42):
There you go.
John Tripolsky (05:43):
That's how it goes.
Jim Ingersoll (05:43):
There you go. And so we started to buy and hold,
that that sort of changedeverything. We started maybe ten
or so years ago, started doingsome live events, and that
morphed into Dealmaker. Thatfirst event, we had maybe 30
people at. It was a weekend on Itaught people how to flip
houses.
And from there, it's grown. Youyou were a dealmaker a couple
(06:06):
months ago. We had three fiftyinvestors there. And like you
said, there's a very diversegroup. They're from all over the
country.
We have people doing mobilehomes. We have people buying
retail centers. We have peoplebuilding new construction, doing
new, know, all of thesedifferent things, and they all
collaborate. And there's nocompetition, and everybody helps
(06:29):
each other. And that risingtide, we all get better,
including myself.
I walk away from dealmakerinspired like I am ready to
invest hardcore when I leave myown dealmaker because everybody
inspires me. You know what Imean?
John Tripolsky (06:43):
Absolutely. And
Jim Ingersoll (06:45):
so that's sort of the dealmaker way, and we really
focus heavy on epic networkingand intentional connection and
relationship building. But a lotof people that come don't
realize they're also going toget a much better mindset. And
I'm sure you experienced that aswell, because we all experience
that mindset shift where westart to believe that we can do
(07:06):
it. And I've seen so many peoplesort of get their start. And
then over a few years, all of asudden they become a millionaire
and their life financiallychanged.
But it also allows them to livea little differently, give a
little bit better, and reallylive a life of impact. That's
why we like working withorganizations like Chair of the
(07:27):
Love, where we Right. I was justin Guatemala a few weeks ago
giving away wheelchairs. Sothat's a 10,000 foot view of my
story in Dealmaker.
John Tripolsky (07:38):
No. It's then that's perfect. And, really, you
know, why why I thought that wasso important too to just kinda
talk about what you guys havebuilt community wise, right, is
I think as we as we bring BRRRRinto this. So if anybody's not
familiar with BRRRR, let's let'sgive it a whirl. I'm not I'm
gonna try not to twist my tongueup here.
So it's buy, rehab, rent, repeatwait.
Jim Ingersoll (08:01):
Rent You forgot refinance.
John Tripolsky (08:02):
Repeat. There you go. I got close to the end.
Well, that's pro. 85%.
Jim Ingersoll (08:06):
You got it.
John Tripolsky (08:07):
So And why why I think that's so cool how it
really merges into thisconversation, which you guys
have done, right, is am am Iwrong in saying that's in a lot
of times, that's a great kickoffpoint for somebody really trying
to get into real estateinvesting. Right?
Jim Ingersoll (08:22):
It is. I think they've got the the letters in
reverse order, though, because Ithink you should always start
with your refi, and then, like,build it backwards. Of course,
I'm I used to be an engineer, soI'd like to reverse engineer
anyways. But if you start withthe end in mind, which is your,
like, permanent financing for awhile, then then you can build
(08:44):
the deal to match that permanentfinancing and make it all work.
It's a lot more challenging nowwith rates, you know, in the
sevens than it was in the fours.
So coming in and you know, wealways had the goal of doing
BRRRR with little or no moneyout of our own pocket. And
that's how I got started. Ididn't have much money when I
(09:04):
started. And so I started buyingand holding, and one of the
biggest goals was to not use myown money. And so that was a lot
easier with rates of 4.5 than at7.5.
But, you know, it ties backinto, if you've got some
rentals, maybe you want to do aten thirty one and use your
(09:25):
equity as a down payment onsomething bigger, and you can do
BRRRR that way these days prettyeasily as well.
John Tripolsky (09:31):
Absolutely. And, really, it's I think it's a
game. You know, my personalview, I I I wish to say it's a
game, but it really is. It'skind of picking and pulling
which resources you have and notjust financial resources. Right?
We're talking, like, people incommunities like yourself just
coming up with ideas andcreative ways to to go about
(09:52):
things. I think, you know, overthe the past couple years, the
three things stick out to me themost of, you know, little
nuggets, if we will, I thinkthat I've learned from people
just kind of through osmosis.Right? The OPM, so other
people's money, obviously,BRRRR, which we're talking about
here, and then really justcapitalizing on the knowledge of
(10:13):
everybody else. So even thoughit's not really an acronym for
that, but people in the realestate investing world, I would
say, are probably, at least fromwhat I've experienced, the most
willing group of individuals tohelp each other out.
And even if they're in the samemarket, which is incredible to
me. Like, that is awesome to seebecause, you know, in some say
(10:35):
you're at a we'll just say asmall business conference.
Right? You might have somebodyfrom Detroit and somebody from
Detroit right there, and, youknow, they're not gonna share
everything because they're, youknow, kinda going after the same
clientele. But in the REI world,I mean, they would say, alright.
Let's go into a deal together.Let's literally do it together.
Or, hey. There's a property nextto mine or something. And I love
(10:57):
seeing that.
So even just from, you know, atax advantage standpoint in real
estate investing. Right? Youropinion on that and maybe your
advice for anybody. How has thatreally impacted you as an
individual, but then otherindividuals too, where they say,
oh my gosh. I didn't know therewas all these tax advantages, or
I just got in this to to makemoney, and you're telling me
(11:19):
that I'm gonna actually have tocut less of a check to the IRS
because now I'm involved inthis?
And is that something you'veseen a lot?
Jim Ingersoll (11:27):
Yeah. I mean, the depreciation becomes very real
in April, doesn't it? Everyyear. I mean, it's amazing. Now
they're talking about bringingback 100% bonus.
I mean, it's going to be that isgoing to be a game changer for
all of us. They bring that back,and the big beautiful bill gets
passed. I mean, it's gonna begame on. There's a lot of stuff
(11:48):
in there that's gonna change. Soit is good and it is very real.
You know, I think when I wasworking corporate America
myself, I didn't realize thatbeing an employee is the highest
tax you're gonna pay. Like I gotout of corporate America and my
taxes dropped. And then as Ibuilt a rental portfolio, they
dropped more. But keep in mindthough, like when you sell your
(12:10):
worst rentals, you're gonna paythat depreciation recapture. And
that's where you wanna learnfrom folks like you and Chris
all about like 1031s.
And then you can like push itout in the future some more. And
some people think, refi till youdie. And don't worry about it.
You know, just let it keepgoing. You can pull cash out,
(12:32):
completely cash free.
Tax free, by the way. You know,a refi cash out is, you don't
pay any tax on that. It'samazing when you think about it.
What an incredible gift to allof us that like to be landlords.
You know, and you touched on tworeally important things, too.
You talked about OPM and thenpeople helping people, and it's
(12:55):
so true. That OPM really allcomes back to, like, I classify
it as relational capital,because you're going to build
relationships with people thatcan help you fund your deals
with OPM. I love that. And thenyou talked about learning, and
that's really the intellectualcapital. And we do have to have
a foundation of knowing how todo deals and doing BRRRR and
(13:20):
doing flips or whatever it is.
So I'm glad you brought those upas well.
John Tripolsky (13:24):
Absolutely. And and I look at, you know, the the
BRRRR method specifically isit's definitely not a a
standalone. Like, this is notjust one No. Tool that just sits
on an island. Right?
Like, you yeah. Everything'sdifferent. There's a million
different ways to do this. Andand maybe if you can think of a
couple examples, even, you know,multiple, I'll let you pick.
(13:46):
Maybe walk us through some ofthe Yeah.
Experiences you've had or heardabout just through BRRRR. Again,
just thinking if somebody cameto this, they had no idea what
they're listening or watching,and now all of a sudden they're
here, we're not talking aboutsnow falling in, in June from
Jim Ingersoll (14:00):
the Michigan side. Minutes, and I'll define
what it is. How's
John Tripolsky (14:03):
that? Perfect.
Jim Ingersoll (14:04):
Perfect. Let's okay. So I said start with the
end in mind. You always youknow, Covey was right. Always do
everything with the end in mind.
If you're looking for financialfreedom, know what that looks
like. If you're looking to buyand hold rental property, know
what that permanent financingis. So I always say, start
there. Call local banks. Startto understand what it takes for
you to be bankable, number one.
(14:25):
And you can do commercial loans.You could do DSCR loans. They're
asset based more than yourpersonal base, which is easier.
They're gonna lend on thecollateral more than on you
personally. Not saying like youdon't need a good credit score,
could you do?
And I'm not saying you don'tneed cash reserves because
that's your safety net. But onceyou get past those two hurdles,
(14:49):
the rest of it is based on theproperty. So you wanna have like
a loan to value of like 75% orless. So you gotta buy right.
And then you gotta know whatyour rental cash flow is so you
can hit the DSCR, which isbasically a cash flow
calculation.
So call a couple local banks, doit today, and find out what
their commercial lendingguidelines are, or call a DSCR
(15:11):
lender. Once you sort ofunderstand those guidelines, you
could put together your buycriteria. Some people call it a
buy box, but it's really yourinvestment criteria. And that
really should meet the end goalof your refi. So you've got to
know like how much equity youneed, how much rental cash flow
you need.
And when rates were low, likefour and a half percent, we
(15:33):
would say the 1% rule is goodnapkin math. And the way that
worked was pretty easy. If youbought a $200,000 property,
you'd want at least 1% of thatin rental income, dollars 2,000
a month. And if you hit that,you are confident you could get
into that end financing. Whilewith rates up, you need a little
stronger cash flow than that.
(15:54):
So if you paid $200,000 for asingle family home in Ann Arbor,
beautiful, historic Michigan
John Tripolsky (16:02):
Which everybody Jim's saying that because Chris
usually likes to throw that inthat he's in beautiful, historic
Franklin, Tennessee. So
Jim Ingersoll (16:10):
that's a beautiful, historic Franklin,
Tennessee. Every time I visit, Igo to Meredith's. We walk
around. My wife does a littleshopping. You know?
I I do love it. But It
John Tripolsky (16:20):
is great.
Jim Ingersoll (16:20):
So if you're in those areas, you're gonna and
you pay $200,000 for a house inAnn Arbor, you're gonna probably
want closer to $2,500 a month inrental income in order to get
into that financing with aslittle money out of your own
pocket as possible. Once youdefine that investment criteria,
like where you want to invest,whether it's single family,
duplex, quad, whatever it is,you know what the rental income
(16:43):
needs to be in the equity, thenyou can begin analyzing deals to
see if they'll fit that box.Okay? And then you can buy it.
You can buy it with a short termloan.
We call that OPM. You mentionedit earlier, other people's
money. It could be OPI, otherpeople's IRAs, by the way,
because if you borrow fromsomebody in a Roth and they do a
(17:05):
private money loan to you, allof that is tax free. I love
lending onto my Roth, so Imentioned So that would be like
a six month loan. And then thatgives you time to rehab it,
which is fix it up, make thekitchen look good, get a good
roof, HVAC, windows, whateveryou're doing.
Then you rent it. That's prettyeasy. Get a property manager if
(17:27):
you need help, or do it yourselfand save some money and get
those skills and processes in.Then you refi it, and then you
repeat. That's Burr.
John Tripolsky (17:38):
Just churn and Burr. And there I it's very
interesting to me too because,again, I learned I learned about
what BRRRR was a little bitbefore I actually remembered
that there's a very long acronymfor it. And the more I kinda
took that I think me me andChris and her team may have been
down in Orlando for for an eventmaybe three years ago, and and
(17:59):
that might have been my first,you know, exposure to it. But
then coming back home, it wasvery interesting because I have
a lot of friends that arecontractors, homebuilders, lot
of these guys. And, you know,they'll they'll flip a couple
properties here and there.
You know, sometimes they'llthey'll be in it for the long
game. And then I started tellingthem about it. They're like, no.
I don't I I don't know what thatis. Like, what do
Jim Ingersoll (18:19):
you Right. What do
John Tripolsky (18:20):
you mean? Like, wow. It's a crazy concept, and I
wasn't in a position to say,like, oh, let me tell you all
about it because I just learnedabout it seventy two hours ago.
So, you know, it's not not agood thing. But then just
thinking about how that works.
Right? Like, for a specificindividual and and let me go
back to when you mentioned thebuy box. I think that is a if
anybody wants to call itwhatever they want to, I think
(18:42):
that is a great piece of advicefor anybody because I see that
as a tool that really takes alot of the emotion out of
things. Right? Because you mayyou may see a property that goes
up, and you're like, wow.
That's a a screaming deal. Ilove it. Well, whether you love
it or not, doesn't mean it'sgonna make you any money. And if
(19:03):
it doesn't make you any money,you're gonna come to totally
despise this thing because it'sgonna be a, you know, a a
negative funnel on your bankaccount. So I like that kind of
setting the the perimeter.
And if it falls within it andmeets your own criteria, nobody
else is necessarily at thatpoint. Right? Because if it
works for you, then you can kindof figure out what resource you
need to make happen. But justthat process, and I mentioned
(19:26):
contractors, it's awesome forthose guys because they come in
and, you know, if they havedowntime or they plan for it and
think about how much money theysave in the rehab. Right?
Like, that takes out a lot of alot of the extremes. I actually
grabbed lunch with a buddy ofmine probably about three, four
months ago, and I think he hadbought a quad. I believe it was
(19:47):
in Downtown Detroit. Got areally good deal on it. I think
I could be making this up, but II think he said something about
he had bought it at auctionbecause a a couple of the other
deals before that on thatproperty had fallen through.
You know, he comes in and hasthe the manpower, you know, to
make it happen because I thinkit was a fire is is what the
situation was. But, right, ifyou if it wasn't a contractor
(20:09):
doing it, it's no longer reallya deal for somebody. They may
be, you know, over investing inthis thing just to make it
rentable. And here's anotherquestion for you too that I I
know somebody spoke about. Idon't know if it was on stage at
y'all's last event or if it was,the hallway conversations, which
are just as good as it is onstage, is I I feel like somebody
(20:32):
was talking about Burr andsection eight that they were
trying to get into that.
Is is that a good not is it agood thing. I mean, I love the
purpose of it, obviously. But isit a lot harder to do for any
reason in that, or is that agood starting point maybe for
somebody getting into it ormaybe not?
Jim Ingersoll (20:51):
I like using section eight when the economy
sort of crashes a bit like itdid in 02/2007. But I have a lot
of friends that do Sectioneight, and they do really well.
The nice thing is you get paidevery month by the government.
But the truth is, like, if youcreate a really good rental
property, you're gonna attractgreat tenants anyways. And you
(21:12):
will get paid every month, evenif you don't rely on the
government.
I'll give you an example. I justrented last week a two bedroom
apartment in Richmond, and I putit onto Zillow, and I got
flooded. I had like 40 peoplethat inquired about it. And I
started looking through theapplications coming in, and
there's at least four or five ofthem that qualify to buy houses
(21:34):
that are renting. You know, theyhave four to 5x the monthly
rent.
They have good credit scoreslike 770 and up. I mean, these
are great people. So Sectioneight is good, especially if
you're in property like in notthe best areas necessarily, but
(21:55):
it can be good. But I like itwhen economies crash. Like, say,
AI gets crazy and unemploymentjacks up in five years and we
have a lot of bankruptcies orwhatever happens, those
government checks on rent willkeep coming in even if your
employees aren't working.
(22:16):
So that's kind of the balanceside of it.
John Tripolsky (22:19):
Right. And with and kinda marrying Burr with
that a little bit, it itprobably works with that pretty
well.
Jim Ingersoll (22:26):
It does.
John Tripolsky (22:27):
Right? I mean, and and and maybe even taking a
step back, doing that probablyas an entry point to somebody
into the world Mhmm. And thengetting into section eight to
start with. Do you see thatmaybe as
Jim Ingersoll (22:38):
I mean, can be. I think it's okay. But I I would
encourage people to to do nonsection eight as well. I don't
think it really matters. I thinkit's, the quality of tenet's a
little bit different.
If you're able to create aproduct that's really good and
attract those tenants that arereally good that could
(22:59):
potentially buy, but they wantto rent for a while, which
there's lots of them right now,very easy to manage as well. You
don't I mean, I've I've hadcrazy stories both ways, but
I've definitely had some crazysection eight stories.
John Tripolsky (23:15):
I can imagine, like, what things you know, the
neurons that fire off in yourhead when you're like, oh, well,
tell me an example of of a.You're probably like, oh my
gosh. I have a a Rolodex ofpeople I could call about every
situation. We have every exampleof it.
Jim Ingersoll (23:30):
No. I haven't had any issues as a landlord in at
least, like, five years, zeroevictions and no drama, no
problems.
John Tripolsky (23:38):
That's awesome.
Jim Ingersoll (23:39):
Before that, when I was first learning, I really
struggled for a while. I'd havetenants tear places up, not pay
rent, create these crazy dramastories. But over time, I've
I've put the pieces together tofigure that out, and I don't I
don't I don't miss it.
John Tripolsky (23:57):
Right. You're like, somebody else can have
those headaches Yeah.Specifically.
Jim Ingersoll (24:01):
Those are people I like to buy from. They're
called burned out landlords. Oneof my favorite people to buy
from. When I meet meet alandlord, a lot of times, I'll
say, why don't you sell me yourworst two or three properties?
And they're like, I would loveto do that.
John Tripolsky (24:15):
Right. It's almost like thinking of it as a
a distressed property, but inthe landlord's hands, which is
an emotionally distressedinvestment property.
Jim Ingersoll (24:26):
Yeah. I love buying from landlords. I
understand landlords, and I Iunderstand their problems
because I was there. Just Iovercame them and and made made
it work. Right.
I can solve
John Tripolsky (24:36):
get them off their portfolio. You're helping
them out. Right? Right. They'rehappy.
So as we as we kinda wrap thisup a little bit, I know because
we can talk on you know, we cantake, I think, take this burden,
take it in a 100 differentdirections, right, and and how
it's applicable. I I would sayanybody that's listening or
watching this, obviously, out toreach out to us. Reach out to
anybody in your network with anyquestions, but definitely,
(24:59):
definitely, I cannot say itenough. I consider to say
definitely for five minutes.Check out dealmaker.
That community is incredible.And the other good thing about
that is is the questions I thinkthat I've posted in y'all's
groups, you get a lot of greatresponses. It's it never falls
on
Jim Ingersoll (25:13):
definite tax advantaged group. We love
discussions on depreciation, tenthirty one's. We're a huge user
of self directed IRAs. So wewant to use all of the arsenal
of taxes. That's why we lovehaving you as part of our
community, because you guys canpour into us and help us learn
(25:36):
even more things to be doing,whether it's, you know,
segregation or a ten thirty oneor self directed IRAs.
Why not? You know, I posted thisin the group this week. I don't
know if you saw it, but it said,a lot of people think of their
Roth as a retirement account.But I said, why don't we think
(25:57):
about it differently and thinkabout it as a wealth building
machine? Tax free forever is thebest gift our government's ever
given us.
And if you self direct thatbaby, you can really fire it up.
I mean, I'm doing private moneylending on wraps and earning
30%. Which is very hard to getknow, we'll set up to that
(26:19):
money's doubling every two tothree years. So just shift your
mind from, yeah, it's aretirement account, but, like,
how could I invest it tax free?
John Tripolsky (26:29):
Absolutely. And and two, so I know we spoke on
it a little bit too as we wekinda come to a close here too,
but anybody that is looking toget into this, and this could be
a a burn topic. It could be justin general. If somebody met you
in an airport and say, hey. Whatdo you do?
What do you do? You tell thembriefly what you do, you know,
(26:51):
the the microness of everythingyou have experience wise. And
they said, hey. I'm I would loveto get into that. And maybe
something somebody that's notall in saying, hey.
I'm going to do this. I reallywant to do this. They said, hey.
I've been thinking about it.What would you tell them if you
had a couple minutes, you know,sitting at a an airport waiting
(27:13):
on
Jim Ingersoll (27:13):
Well, think it's good to get into a community
where you can learn. I mean,come to check out
elitedealmakers.com. Come to ourdealmaker Facebook group, or
join me in inner circle. I'vegot a $97 a month easy entry
point. I'd love to have you onand talk about taxes, by the
way.
And
John Tripolsky (27:31):
Well, you want Chris, though. Trust me. You
don't want me. I'm just themarketing guy.
Jim Ingersoll (27:34):
I like hanging out with you. We have you
k.com/innercircle. $97 a monthis the easiest, cheapest, best
group you can find anywhere.
John Tripolsky (27:45):
Awesome. And, obviously, getting into the
world of real estate investing,you'll make some mistakes
whether you realize them or not.From day one, they might
Jim Ingersoll (27:55):
Forever.
John Tripolsky (27:55):
Come up and bite you in the rear, but you learn
from them. And I would say, youknow, I got into it in the
Airbnb game completely onaccident. This was, oh, man,
fifteen years ago? Wow. Morethan that even.
Wow. Yeah. Listened to Condo inDowntown Charleston, lived in it
(28:16):
for three months, and then hadto come back to Michigan from
I'll put it on Airbnb. Nophotos. Nothing.
I'm like, I don't even know whatthis platform is, but somebody
told me I should. And then Istarted getting listings. So my
problem there was, how do I turnit between guests? Because I'm
not there. So that's a wholeanother story with that
Jim Ingersoll (28:32):
So I got a gift for your guests if they want,
because you mentioned Airbnb. Icreated I've been doing a lot
with AI. I mean, it's crazy howmuch stuff I'm doing. And I've
created one for, Wrap Lending,and I've created some GPTs for
Airbnb to write the listingdescription, persuasively to
fill your occupancy. And, so, ifyour guests want it, they have
(28:57):
to email me.
I don't have a landing page oranything. But it's called rental
pro GPT. I'm I'll give it awayfor free because it'll help you
write better listings. You justemail me
Jim@elitedealmakers.com, andI'll I'll sign you up for it.
John Tripolsky (29:11):
Perfect. And we'll go ahead and put that in
the show notes too.
Ad Read (29:13):
It's Alright.
John Tripolsky (29:14):
So nobody so like I always say people, do not
get lazy. We are giving yousomething here. There's
resources. Whether you'relistening to this, watching it
Look at
Jim Ingersoll (29:23):
how many how many shows now?
John Tripolsky (29:25):
140.
Jim Ingersoll (29:27):
Oh my gosh.
John Tripolsky (29:28):
Isn't that wild to think about? Even if these
were thirty minutes, which weaverage right around there Yeah.
That's a lot of hours.
Jim Ingersoll (29:36):
Just in
John Tripolsky (29:37):
talking, not even the editing part of this.
Right? Like Right. Just theamount of resources we pull
together. And really, frankly,Jim, why I love doing these is I
I really enjoy not knowing a aone hundredth of what Chris
knows in the tax world, but thenhaving these discussions with
people like yourself where, youknow, I'm constantly learning
(29:57):
with this, and I'm and I feellike I can bring a very unique
perspective me and Chris talkabout all the time is, you know,
I look at this in some of thecontent we put out, how we put
it out, how we structure it, thepeople we talk to is, you know,
if I didn't know everything oneither side of the fence, which
I don't, how can we merge themtogether?
Because even like you mentioned,even people that are in y'all's
(30:18):
community, they might be doingthis, have been doing it forty
years, but they still come tothe events. They still talk to
these people because even ifthey don't learn verbatim from
somebody else, it's the mindset.Right? And that might trigger
just a different way of doingthings, which it's awesome that
you brought that up because Ithink in five episodes from now,
(30:40):
we have a a one strictly onmindset. So it's I love it.
Rolls into it perfectly.Favorite topics. Love it. Curtis
McCollum, great guy. Had afantastic conversation with him.
But, Jim, I can't thank youenough, man. Thank you for for
taking the time.
Jim Ingersoll (30:55):
With you coming from beautiful, historic Ann
Arbor, Michigan. Love it, man. II love it that we
John Tripolsky (31:03):
dropped in there multiple times. And for
everybody also that is an avidlistener of this podcast,
there's something else that willnot be mentioned in this one
because Chris is not here. It isa sport that used to be referred
to. I haven't heard it as muchnow as geriatric tennis. So
we're not gonna say what sportthat is because I can't do that.
(31:25):
It has to come from him. Sowe'll leave it at that, Jim.
Thank you again again so much,man. We'll drop your contact in
those show notes. People candownload that resource for their
Airbnb descriptions.
Again, do not be lazy. You'vegot a free podcast. You just got
a free thirty minutes with thisgentleman here. I know you
didn't get any info from me, andI'm okay with that. He's the
(31:46):
knowledge base here.
So click on that. Share it. Evenif it's not for you, share with
somebody you know, and kindajust take it. Even if you have
your descriptions written forAirbnb, I'd say put them in
that. Right, Jim?
And just kinda give it a littlerefresh and see what does.
Boost. Awesome. Awesome. Wellwell, sir, thank you.
We're gonna see you soon at oneof your events. And for
(32:06):
everybody here, we will see youback here again on the Teaching
Taskflow podcast next week.Different time, roughly.
Completely different topic. Havea great week, everybody.
Disclaimer (32:22):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors, a
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(32:43):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
Hey, everybody, and welcome back to the teaching
tax flow podcast today, episode140. We have a great guest
joining us who's gonna help usdecipher and decode the BRRRR
method when it comes to realestate investing. So before we
get into that topic with ourguest, let's take a brief moment
and thank our episode sponsor.
Ad Read (00:24):
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John Tripolsky (01:24):
Somebody is missing from the episode at this
current time. He will join usshortly. However, he's not here
right now. And why I bring thatup right? Timing is everything.
Literally with everything. Ifwe're talking taxes, finance,
planning, real estate investing,driving to the grocery store,
dropping your kid off atdaycare, picking your kid up
from daycare is a whole anotherstory about being on time. But
(01:46):
Chris Picchiro is missing anaction at this very moment. So
we brought in somebody else whowas planned anyways, but here he
is. So Jim Ingersoll fromDealmaker.
So I'm gonna let Jim tell us hisstory a little bit. Not only how
we got to where he is now, butfrankly, why he's here, but also
(02:08):
all the amazing things thatDealmaker and that community are
up to and why we are bringinghim in to talk about the BRRRR
method. Now we're also nottalking about winter months in
Michigan because, yes, that'sBRRRR, but this is completely
different. Jim, welcome to theshow, man. How are you doing
today, bud?
Jim Ingersoll (02:25):
I am doing good. It's not burr here in Virginia
today. It's pretty warm. It'sgonna be around 80 and
beautifully sunny weather. Ilove it.
Thanks for having
John Tripolsky (02:35):
me on. Absolutely. You know, you say
it's beautifully and sunny theretoo. You know, in Michigan, I
think it's, like, 80 somethingtoday. So if anybody's watching
this and not just listening toit on Spotify or wherever, I
have this, like, gleaming sunshining in because it's not
always sunny here outside of AnnArbor, but I have this little
sliver that's just coming in atme that I can't block.
(02:56):
So, Jim, so so me and you andChris, we met not too long. I
met you not too long ago at yourevent in in March. Not literally
not too long ago. And y'all'scommunity really it really
impacted me a little bit. Again,I know we've talked about this
going to so many events, justthe makeup of the individuals
(03:17):
there.
And I'll let you talk about, youknow, really the type of
individuals that go to that, butit went so much further than
just, hey. This is how you makemoney. Because you can go to a
thousand real estateconferences, and that's their
thing. Right? You're there tomake money.
Let's make this as profitable asit possibly can. I feel like you
always hear that, and then youalways hear the, well, it's not
(03:37):
a get rich quick deal, but youguys offered so much more to it.
But then, you know, thinking ofthe BRRRR method here, and I
won't give the definition of it.I love saying it because I
always get my tongue tied aroundit, and I'll I'll let you get
into that. But, like, tell us alittle bit again about how you
got into this because you youhave a great story about your
community.
(03:58):
And then, really, you know, whatwould you guys do? Like, what
Dealmaker's all about? And thenwe'll talk about BRRR.
Jim Ingersoll (04:04):
Okay. Well, I left corporate America almost
twenty years ago. Now it's beena really long time. And, at that
point, I was running twofactories. And when I was told,
we had to close everything down,corporate came and said, that's
it.
I had to lay everybody off. AndI thought, this whole corporate
thing is way overrated. Like,it's fun growing a business. It
(04:27):
sucks to lay everybody off. AndI said, that's it.
I'm never going back no matterwhat. So I began jumping back
into real estate. Our initialreal estate venture, my wife and
I started in our early 20s,didn't go well. So she made a
statement like, I'm never goingto be a landlord again. That
cost me about ten years ofinvesting.
(04:49):
But when we came back in, Ilearned to invest in myself and
get some help in training andmentorship and build systems and
processes and networks. Andeverything started to click when
I came back the second time. Andfrom there, the rest is history.
We just started wholesaling andwe started flipping a bit. And
(05:10):
then along the way, to rent.
I was sort of doing BRRRR beforeBRRRR was a thing. That term
didn't exist, like, fifteenyears ago, really. But neither
did Facebook, YouTube, orpodcasts. So That's true. It's
changed.
And it's probably it's probablyreally
John Tripolsky (05:27):
I mean, I'm sure you had that moment. You're
like, wait a minute. They justgave an acronym an acronym to
something that I've been doingthis whole time.
Jim Ingersoll (05:34):
Exactly right. A whole bunch of crazy looking.
John Tripolsky (05:36):
So, like, you probably think of it. You're
like, I'm not gonna call itBRRRR. I'm gonna call it my own
methodology and my own processfor doing this.
Jim Ingersoll (05:42):
There you go.
John Tripolsky (05:43):
That's how it goes.
Jim Ingersoll (05:43):
There you go. And so we started to buy and hold,
that that sort of changedeverything. We started maybe ten
or so years ago, started doingsome live events, and that
morphed into Dealmaker. Thatfirst event, we had maybe 30
people at. It was a weekend on Itaught people how to flip
houses.
And from there, it's grown. Youyou were a dealmaker a couple
(06:06):
months ago. We had three fiftyinvestors there. And like you
said, there's a very diversegroup. They're from all over the
country.
We have people doing mobilehomes. We have people buying
retail centers. We have peoplebuilding new construction, doing
new, know, all of thesedifferent things, and they all
collaborate. And there's nocompetition, and everybody helps
(06:29):
each other. And that risingtide, we all get better,
including myself.
I walk away from dealmakerinspired like I am ready to
invest hardcore when I leave myown dealmaker because everybody
inspires me. You know what Imean?
John Tripolsky (06:43):
Absolutely. And
Jim Ingersoll (06:45):
so that's sort of the dealmaker way, and we really
focus heavy on epic networkingand intentional connection and
relationship building. But a lotof people that come don't
realize they're also going toget a much better mindset. And
I'm sure you experienced that aswell, because we all experience
that mindset shift where westart to believe that we can do
(07:06):
it. And I've seen so many peoplesort of get their start. And
then over a few years, all of asudden they become a millionaire
and their life financiallychanged.
But it also allows them to livea little differently, give a
little bit better, and reallylive a life of impact. That's
why we like working withorganizations like Chair of the
(07:27):
Love, where we Right. I was justin Guatemala a few weeks ago
giving away wheelchairs. Sothat's a 10,000 foot view of my
story in Dealmaker.
John Tripolsky (07:38):
No. It's then that's perfect. And, really, you
know, why why I thought that wasso important too to just kinda
talk about what you guys havebuilt community wise, right, is
I think as we as we bring BRRRRinto this. So if anybody's not
familiar with BRRRR, let's let'sgive it a whirl. I'm not I'm
gonna try not to twist my tongueup here.
So it's buy, rehab, rent, repeatwait.
Jim Ingersoll (08:01):
Rent You forgot refinance.
John Tripolsky (08:02):
Repeat. There you go. I got close to the end.
Well, that's pro. 85%.
Jim Ingersoll (08:06):
You got it.
John Tripolsky (08:07):
So And why why I think that's so cool how it
really merges into thisconversation, which you guys
have done, right, is am am Iwrong in saying that's in a lot
of times, that's a great kickoffpoint for somebody really trying
to get into real estateinvesting. Right?
Jim Ingersoll (08:22):
It is. I think they've got the the letters in
reverse order, though, because Ithink you should always start
with your refi, and then, like,build it backwards. Of course,
I'm I used to be an engineer, soI'd like to reverse engineer
anyways. But if you start withthe end in mind, which is your,
like, permanent financing for awhile, then then you can build
(08:44):
the deal to match that permanentfinancing and make it all work.
It's a lot more challenging nowwith rates, you know, in the
sevens than it was in the fours.
So coming in and you know, wealways had the goal of doing
BRRRR with little or no moneyout of our own pocket. And
that's how I got started. Ididn't have much money when I
(09:04):
started. And so I started buyingand holding, and one of the
biggest goals was to not use myown money. And so that was a lot
easier with rates of 4.5 than at7.5.
But, you know, it ties backinto, if you've got some
rentals, maybe you want to do aten thirty one and use your
(09:25):
equity as a down payment onsomething bigger, and you can do
BRRRR that way these days prettyeasily as well.
John Tripolsky (09:31):
Absolutely. And, really, it's I think it's a
game. You know, my personalview, I I I wish to say it's a
game, but it really is. It'skind of picking and pulling
which resources you have and notjust financial resources. Right?
We're talking, like, people incommunities like yourself just
coming up with ideas andcreative ways to to go about
(09:52):
things. I think, you know, overthe the past couple years, the
three things stick out to me themost of, you know, little
nuggets, if we will, I thinkthat I've learned from people
just kind of through osmosis.Right? The OPM, so other
people's money, obviously,BRRRR, which we're talking about
here, and then really justcapitalizing on the knowledge of
(10:13):
everybody else. So even thoughit's not really an acronym for
that, but people in the realestate investing world, I would
say, are probably, at least fromwhat I've experienced, the most
willing group of individuals tohelp each other out.
And even if they're in the samemarket, which is incredible to
me. Like, that is awesome to seebecause, you know, in some say
(10:35):
you're at a we'll just say asmall business conference.
Right? You might have somebodyfrom Detroit and somebody from
Detroit right there, and, youknow, they're not gonna share
everything because they're, youknow, kinda going after the same
clientele. But in the REI world,I mean, they would say, alright.
Let's go into a deal together.Let's literally do it together.
Or, hey. There's a property nextto mine or something. And I love
(10:57):
seeing that.
So even just from, you know, atax advantage standpoint in real
estate investing. Right? Youropinion on that and maybe your
advice for anybody. How has thatreally impacted you as an
individual, but then otherindividuals too, where they say,
oh my gosh. I didn't know therewas all these tax advantages, or
I just got in this to to makemoney, and you're telling me
(11:19):
that I'm gonna actually have tocut less of a check to the IRS
because now I'm involved inthis?
And is that something you'veseen a lot?
Jim Ingersoll (11:27):
Yeah. I mean, the depreciation becomes very real
in April, doesn't it? Everyyear. I mean, it's amazing. Now
they're talking about bringingback 100% bonus.
I mean, it's going to be that isgoing to be a game changer for
all of us. They bring that back,and the big beautiful bill gets
passed. I mean, it's gonna begame on. There's a lot of stuff
(11:48):
in there that's gonna change. Soit is good and it is very real.
You know, I think when I wasworking corporate America
myself, I didn't realize thatbeing an employee is the highest
tax you're gonna pay. Like I gotout of corporate America and my
taxes dropped. And then as Ibuilt a rental portfolio, they
dropped more. But keep in mindthough, like when you sell your
(12:10):
worst rentals, you're gonna paythat depreciation recapture. And
that's where you wanna learnfrom folks like you and Chris
all about like 1031s.
And then you can like push itout in the future some more. And
some people think, refi till youdie. And don't worry about it.
You know, just let it keepgoing. You can pull cash out,
(12:32):
completely cash free.
Tax free, by the way. You know,a refi cash out is, you don't
pay any tax on that. It'samazing when you think about it.
What an incredible gift to allof us that like to be landlords.
You know, and you touched on tworeally important things, too.
You talked about OPM and thenpeople helping people, and it's
(12:55):
so true. That OPM really allcomes back to, like, I classify
it as relational capital,because you're going to build
relationships with people thatcan help you fund your deals
with OPM. I love that. And thenyou talked about learning, and
that's really the intellectualcapital. And we do have to have
a foundation of knowing how todo deals and doing BRRRR and
(13:20):
doing flips or whatever it is.
So I'm glad you brought those upas well.
John Tripolsky (13:24):
Absolutely. And and I look at, you know, the the
BRRRR method specifically isit's definitely not a a
standalone. Like, this is notjust one No. Tool that just sits
on an island. Right?
Like, you yeah. Everything'sdifferent. There's a million
different ways to do this. Andand maybe if you can think of a
couple examples, even, you know,multiple, I'll let you pick.
(13:46):
Maybe walk us through some ofthe Yeah.
Experiences you've had or heardabout just through BRRRR. Again,
just thinking if somebody cameto this, they had no idea what
they're listening or watching,and now all of a sudden they're
here, we're not talking aboutsnow falling in, in June from
Jim Ingersoll (14:00):
the Michigan side. Minutes, and I'll define
what it is. How's
John Tripolsky (14:03):
that? Perfect.
Jim Ingersoll (14:04):
Perfect. Let's okay. So I said start with the
end in mind. You always youknow, Covey was right. Always do
everything with the end in mind.
If you're looking for financialfreedom, know what that looks
like. If you're looking to buyand hold rental property, know
what that permanent financingis. So I always say, start
there. Call local banks. Startto understand what it takes for
you to be bankable, number one.
(14:25):
And you can do commercial loans.You could do DSCR loans. They're
asset based more than yourpersonal base, which is easier.
They're gonna lend on thecollateral more than on you
personally. Not saying like youdon't need a good credit score,
could you do?
And I'm not saying you don'tneed cash reserves because
that's your safety net. But onceyou get past those two hurdles,
(14:49):
the rest of it is based on theproperty. So you wanna have like
a loan to value of like 75% orless. So you gotta buy right.
And then you gotta know whatyour rental cash flow is so you
can hit the DSCR, which isbasically a cash flow
calculation.
So call a couple local banks, doit today, and find out what
their commercial lendingguidelines are, or call a DSCR
(15:11):
lender. Once you sort ofunderstand those guidelines, you
could put together your buycriteria. Some people call it a
buy box, but it's really yourinvestment criteria. And that
really should meet the end goalof your refi. So you've got to
know like how much equity youneed, how much rental cash flow
you need.
And when rates were low, likefour and a half percent, we
(15:33):
would say the 1% rule is goodnapkin math. And the way that
worked was pretty easy. If youbought a $200,000 property,
you'd want at least 1% of thatin rental income, dollars 2,000
a month. And if you hit that,you are confident you could get
into that end financing. Whilewith rates up, you need a little
stronger cash flow than that.
(15:54):
So if you paid $200,000 for asingle family home in Ann Arbor,
beautiful, historic Michigan
John Tripolsky (16:02):
Which everybody Jim's saying that because Chris
usually likes to throw that inthat he's in beautiful, historic
Franklin, Tennessee. So
Jim Ingersoll (16:10):
that's a beautiful, historic Franklin,
Tennessee. Every time I visit, Igo to Meredith's. We walk
around. My wife does a littleshopping. You know?
I I do love it. But It
John Tripolsky (16:20):
is great.
Jim Ingersoll (16:20):
So if you're in those areas, you're gonna and
you pay $200,000 for a house inAnn Arbor, you're gonna probably
want closer to $2,500 a month inrental income in order to get
into that financing with aslittle money out of your own
pocket as possible. Once youdefine that investment criteria,
like where you want to invest,whether it's single family,
duplex, quad, whatever it is,you know what the rental income
(16:43):
needs to be in the equity, thenyou can begin analyzing deals to
see if they'll fit that box.Okay? And then you can buy it.
You can buy it with a short termloan.
We call that OPM. You mentionedit earlier, other people's
money. It could be OPI, otherpeople's IRAs, by the way,
because if you borrow fromsomebody in a Roth and they do a
(17:05):
private money loan to you, allof that is tax free. I love
lending onto my Roth, so Imentioned So that would be like
a six month loan. And then thatgives you time to rehab it,
which is fix it up, make thekitchen look good, get a good
roof, HVAC, windows, whateveryou're doing.
Then you rent it. That's prettyeasy. Get a property manager if
(17:27):
you need help, or do it yourselfand save some money and get
those skills and processes in.Then you refi it, and then you
repeat. That's Burr.
John Tripolsky (17:38):
Just churn and Burr. And there I it's very
interesting to me too because,again, I learned I learned about
what BRRRR was a little bitbefore I actually remembered
that there's a very long acronymfor it. And the more I kinda
took that I think me me andChris and her team may have been
down in Orlando for for an eventmaybe three years ago, and and
(17:59):
that might have been my first,you know, exposure to it. But
then coming back home, it wasvery interesting because I have
a lot of friends that arecontractors, homebuilders, lot
of these guys. And, you know,they'll they'll flip a couple
properties here and there.
You know, sometimes they'llthey'll be in it for the long
game. And then I started tellingthem about it. They're like, no.
I don't I I don't know what thatis. Like, what do
Jim Ingersoll (18:19):
you Right. What do
John Tripolsky (18:20):
you mean? Like, wow. It's a crazy concept, and I
wasn't in a position to say,like, oh, let me tell you all
about it because I just learnedabout it seventy two hours ago.
So, you know, it's not not agood thing. But then just
thinking about how that works.
Right? Like, for a specificindividual and and let me go
back to when you mentioned thebuy box. I think that is a if
anybody wants to call itwhatever they want to, I think
(18:42):
that is a great piece of advicefor anybody because I see that
as a tool that really takes alot of the emotion out of
things. Right? Because you mayyou may see a property that goes
up, and you're like, wow.
That's a a screaming deal. Ilove it. Well, whether you love
it or not, doesn't mean it'sgonna make you any money. And if
(19:03):
it doesn't make you any money,you're gonna come to totally
despise this thing because it'sgonna be a, you know, a a
negative funnel on your bankaccount. So I like that kind of
setting the the perimeter.
And if it falls within it andmeets your own criteria, nobody
else is necessarily at thatpoint. Right? Because if it
works for you, then you can kindof figure out what resource you
need to make happen. But justthat process, and I mentioned
(19:26):
contractors, it's awesome forthose guys because they come in
and, you know, if they havedowntime or they plan for it and
think about how much money theysave in the rehab. Right?
Like, that takes out a lot of alot of the extremes. I actually
grabbed lunch with a buddy ofmine probably about three, four
months ago, and I think he hadbought a quad. I believe it was
(19:47):
in Downtown Detroit. Got areally good deal on it. I think
I could be making this up, but II think he said something about
he had bought it at auctionbecause a a couple of the other
deals before that on thatproperty had fallen through.
You know, he comes in and hasthe the manpower, you know, to
make it happen because I thinkit was a fire is is what the
situation was. But, right, ifyou if it wasn't a contractor
(20:09):
doing it, it's no longer reallya deal for somebody. They may
be, you know, over investing inthis thing just to make it
rentable. And here's anotherquestion for you too that I I
know somebody spoke about. Idon't know if it was on stage at
y'all's last event or if it was,the hallway conversations, which
are just as good as it is onstage, is I I feel like somebody
(20:32):
was talking about Burr andsection eight that they were
trying to get into that.
Is is that a good not is it agood thing. I mean, I love the
purpose of it, obviously. But isit a lot harder to do for any
reason in that, or is that agood starting point maybe for
somebody getting into it ormaybe not?
Jim Ingersoll (20:51):
I like using section eight when the economy
sort of crashes a bit like itdid in 02/2007. But I have a lot
of friends that do Sectioneight, and they do really well.
The nice thing is you get paidevery month by the government.
But the truth is, like, if youcreate a really good rental
property, you're gonna attractgreat tenants anyways. And you
(21:12):
will get paid every month, evenif you don't rely on the
government.
I'll give you an example. I justrented last week a two bedroom
apartment in Richmond, and I putit onto Zillow, and I got
flooded. I had like 40 peoplethat inquired about it. And I
started looking through theapplications coming in, and
there's at least four or five ofthem that qualify to buy houses
(21:34):
that are renting. You know, theyhave four to 5x the monthly
rent.
They have good credit scoreslike 770 and up. I mean, these
are great people. So Sectioneight is good, especially if
you're in property like in notthe best areas necessarily, but
(21:55):
it can be good. But I like itwhen economies crash. Like, say,
AI gets crazy and unemploymentjacks up in five years and we
have a lot of bankruptcies orwhatever happens, those
government checks on rent willkeep coming in even if your
employees aren't working.
(22:16):
So that's kind of the balanceside of it.
John Tripolsky (22:19):
Right. And with and kinda marrying Burr with
that a little bit, it itprobably works with that pretty
well.
Jim Ingersoll (22:26):
It does.
John Tripolsky (22:27):
Right? I mean, and and and maybe even taking a
step back, doing that probablyas an entry point to somebody
into the world Mhmm. And thengetting into section eight to
start with. Do you see thatmaybe as
Jim Ingersoll (22:38):
I mean, can be. I think it's okay. But I I would
encourage people to to do nonsection eight as well. I don't
think it really matters. I thinkit's, the quality of tenet's a
little bit different.
If you're able to create aproduct that's really good and
attract those tenants that arereally good that could
(22:59):
potentially buy, but they wantto rent for a while, which
there's lots of them right now,very easy to manage as well. You
don't I mean, I've I've hadcrazy stories both ways, but
I've definitely had some crazysection eight stories.
John Tripolsky (23:15):
I can imagine, like, what things you know, the
neurons that fire off in yourhead when you're like, oh, well,
tell me an example of of a.You're probably like, oh my
gosh. I have a a Rolodex ofpeople I could call about every
situation. We have every exampleof it.
Jim Ingersoll (23:30):
No. I haven't had any issues as a landlord in at
least, like, five years, zeroevictions and no drama, no
problems.
John Tripolsky (23:38):
That's awesome.
Jim Ingersoll (23:39):
Before that, when I was first learning, I really
struggled for a while. I'd havetenants tear places up, not pay
rent, create these crazy dramastories. But over time, I've
I've put the pieces together tofigure that out, and I don't I
don't I don't miss it.
John Tripolsky (23:57):
Right. You're like, somebody else can have
those headaches Yeah.Specifically.
Jim Ingersoll (24:01):
Those are people I like to buy from. They're
called burned out landlords. Oneof my favorite people to buy
from. When I meet meet alandlord, a lot of times, I'll
say, why don't you sell me yourworst two or three properties?
And they're like, I would loveto do that.
John Tripolsky (24:15):
Right. It's almost like thinking of it as a
a distressed property, but inthe landlord's hands, which is
an emotionally distressedinvestment property.
Jim Ingersoll (24:26):
Yeah. I love buying from landlords. I
understand landlords, and I Iunderstand their problems
because I was there. Just Iovercame them and and made made
it work. Right.
I can solve
John Tripolsky (24:36):
get them off their portfolio. You're helping
them out. Right? Right. They'rehappy.
So as we as we kinda wrap thisup a little bit, I know because
we can talk on you know, we cantake, I think, take this burden,
take it in a 100 differentdirections, right, and and how
it's applicable. I I would sayanybody that's listening or
watching this, obviously, out toreach out to us. Reach out to
anybody in your network with anyquestions, but definitely,
(24:59):
definitely, I cannot say itenough. I consider to say
definitely for five minutes.Check out dealmaker.
That community is incredible.And the other good thing about
that is is the questions I thinkthat I've posted in y'all's
groups, you get a lot of greatresponses. It's it never falls
on
Jim Ingersoll (25:13):
definite tax advantaged group. We love
discussions on depreciation, tenthirty one's. We're a huge user
of self directed IRAs. So wewant to use all of the arsenal
of taxes. That's why we lovehaving you as part of our
community, because you guys canpour into us and help us learn
(25:36):
even more things to be doing,whether it's, you know,
segregation or a ten thirty oneor self directed IRAs.
Why not? You know, I posted thisin the group this week. I don't
know if you saw it, but it said,a lot of people think of their
Roth as a retirement account.But I said, why don't we think
(25:57):
about it differently and thinkabout it as a wealth building
machine? Tax free forever is thebest gift our government's ever
given us.
And if you self direct thatbaby, you can really fire it up.
I mean, I'm doing private moneylending on wraps and earning
30%. Which is very hard to getknow, we'll set up to that
(26:19):
money's doubling every two tothree years. So just shift your
mind from, yeah, it's aretirement account, but, like,
how could I invest it tax free?
John Tripolsky (26:29):
Absolutely. And and two, so I know we spoke on
it a little bit too as we wekinda come to a close here too,
but anybody that is looking toget into this, and this could be
a a burn topic. It could be justin general. If somebody met you
in an airport and say, hey. Whatdo you do?
What do you do? You tell thembriefly what you do, you know,
(26:51):
the the microness of everythingyou have experience wise. And
they said, hey. I'm I would loveto get into that. And maybe
something somebody that's notall in saying, hey.
I'm going to do this. I reallywant to do this. They said, hey.
I've been thinking about it.What would you tell them if you
had a couple minutes, you know,sitting at a an airport waiting
(27:13):
on
Jim Ingersoll (27:13):
Well, think it's good to get into a community
where you can learn. I mean,come to check out
elitedealmakers.com. Come to ourdealmaker Facebook group, or
join me in inner circle. I'vegot a $97 a month easy entry
point. I'd love to have you onand talk about taxes, by the
way.
And
John Tripolsky (27:31):
Well, you want Chris, though. Trust me. You
don't want me. I'm just themarketing guy.
Jim Ingersoll (27:34):
I like hanging out with you. We have you
k.com/innercircle. $97 a monthis the easiest, cheapest, best
group you can find anywhere.
John Tripolsky (27:45):
Awesome. And, obviously, getting into the
world of real estate investing,you'll make some mistakes
whether you realize them or not.From day one, they might
Jim Ingersoll (27:55):
Forever.
John Tripolsky (27:55):
Come up and bite you in the rear, but you learn
from them. And I would say, youknow, I got into it in the
Airbnb game completely onaccident. This was, oh, man,
fifteen years ago? Wow. Morethan that even.
Wow. Yeah. Listened to Condo inDowntown Charleston, lived in it
(28:16):
for three months, and then hadto come back to Michigan from
I'll put it on Airbnb. Nophotos. Nothing.
I'm like, I don't even know whatthis platform is, but somebody
told me I should. And then Istarted getting listings. So my
problem there was, how do I turnit between guests? Because I'm
not there. So that's a wholeanother story with that
Jim Ingersoll (28:32):
So I got a gift for your guests if they want,
because you mentioned Airbnb. Icreated I've been doing a lot
with AI. I mean, it's crazy howmuch stuff I'm doing. And I've
created one for, Wrap Lending,and I've created some GPTs for
Airbnb to write the listingdescription, persuasively to
fill your occupancy. And, so, ifyour guests want it, they have
(28:57):
to email me.
I don't have a landing page oranything. But it's called rental
pro GPT. I'm I'll give it awayfor free because it'll help you
write better listings. You justemail me
Jim@elitedealmakers.com, andI'll I'll sign you up for it.
John Tripolsky (29:11):
Perfect. And we'll go ahead and put that in
the show notes too.
Ad Read (29:13):
It's Alright.
John Tripolsky (29:14):
So nobody so like I always say people, do not
get lazy. We are giving yousomething here. There's
resources. Whether you'relistening to this, watching it
Look at
Jim Ingersoll (29:23):
how many how many shows now?
John Tripolsky (29:25):
140.
Jim Ingersoll (29:27):
Oh my gosh.
John Tripolsky (29:28):
Isn't that wild to think about? Even if these
were thirty minutes, which weaverage right around there Yeah.
That's a lot of hours.
Jim Ingersoll (29:36):
Just in
John Tripolsky (29:37):
talking, not even the editing part of this.
Right? Like Right. Just theamount of resources we pull
together. And really, frankly,Jim, why I love doing these is I
I really enjoy not knowing a aone hundredth of what Chris
knows in the tax world, but thenhaving these discussions with
people like yourself where, youknow, I'm constantly learning
(29:57):
with this, and I'm and I feellike I can bring a very unique
perspective me and Chris talkabout all the time is, you know,
I look at this in some of thecontent we put out, how we put
it out, how we structure it, thepeople we talk to is, you know,
if I didn't know everything oneither side of the fence, which
I don't, how can we merge themtogether?
Because even like you mentioned,even people that are in y'all's
(30:18):
community, they might be doingthis, have been doing it forty
years, but they still come tothe events. They still talk to
these people because even ifthey don't learn verbatim from
somebody else, it's the mindset.Right? And that might trigger
just a different way of doingthings, which it's awesome that
you brought that up because Ithink in five episodes from now,
(30:40):
we have a a one strictly onmindset. So it's I love it.
Rolls into it perfectly.Favorite topics. Love it. Curtis
McCollum, great guy. Had afantastic conversation with him.
But, Jim, I can't thank youenough, man. Thank you for for
taking the time.
Jim Ingersoll (30:55):
With you coming from beautiful, historic Ann
Arbor, Michigan. Love it, man. II love it that we
John Tripolsky (31:03):
dropped in there multiple times. And for
everybody also that is an avidlistener of this podcast,
there's something else that willnot be mentioned in this one
because Chris is not here. It isa sport that used to be referred
to. I haven't heard it as muchnow as geriatric tennis. So
we're not gonna say what sportthat is because I can't do that.
(31:25):
It has to come from him. Sowe'll leave it at that, Jim.
Thank you again again so much,man. We'll drop your contact in
those show notes. People candownload that resource for their
Airbnb descriptions.
Again, do not be lazy. You'vegot a free podcast. You just got
a free thirty minutes with thisgentleman here. I know you
didn't get any info from me, andI'm okay with that. He's the
(31:46):
knowledge base here.
So click on that. Share it. Evenif it's not for you, share with
somebody you know, and kindajust take it. Even if you have
your descriptions written forAirbnb, I'd say put them in
that. Right, Jim?
And just kinda give it a littlerefresh and see what does.
Boost. Awesome. Awesome. Wellwell, sir, thank you.
We're gonna see you soon at oneof your events. And for
(32:06):
everybody here, we will see youback here again on the Teaching
Taskflow podcast next week.Different time, roughly.
Completely different topic. Havea great week, everybody.
Disclaimer (32:22):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors, a
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(32:43):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
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