Sam Primm is the founder of Infinity Investing Method and FasterFreedom. He claims to have a real estate portfolio worth $42 million. And yet, he’s as average as it gets.
Sam’s journey went like so. In 2015, he was a W2 employee. That’s when he began dabbling in real estate on the side.
By 2018, he was able to quit his job and invest full time.
By 2020, he was (and still is) financially free.
His company, FasterHouse, will buy, wholesale and flip about 320 houses this year.
Sam’s second company, Midwest Property Group, oversees his monstrous rental portfolio.
Then there’s his third company, Faster Freedom, which is of course his online education business. It’s got more than 2 million followers and 850+ students managing $175 million in real estate, all in the past year.
As if his plate wasn’t full enough, Sam teamed up with a few other guys to start a local nonprofit called Greater Giving. They help St. Louis residents who are struggling with mental health issues.
Good for him, but what about you? Is now even a good time to be getting into real estate? Sam says yes.
Interest rates seem high now but that’s only ’cause we’ve been so spoiled the past 15 years. Before that, the 30-year fixed mortgage rate was often as high as 10-20%. And that went on for decades. Do you think nobody made money in real estate during those years? Pfft, plenty of people did.
It’s never a bad time to scoop up a good deal. Besides, if you’re holding onto a rental property for 20 years, who cares what it’s worth next year?
Real estate’s the best wealth-building vehicle for anyone not named Jeff Bezos or Elon Musk or Mark Zuckerberg, Sam would argue.
And the game is surprisingly simple. Not easy. But simple.
Borrow money. Buy assets. Create cash flow. Pay back whoever you borrowed the money from. Continue collecting cash flow while the assets appreciate. Rinse and repeat, right?
The acronym, in this case, is BRRRS: Buy, Rehab, Rent, Refinance, Scale.
Scroll down and continue reading for a more thorough explanation.
“So again, you borrow money from a private lender to buy a distressed property,” Sam clarifies. “Then you borrow money from that same lender to repair that distressed property.”
“Now you can rent it out. Income is being produced,” he continues.
“Now you go to a small local bank. They will write you a loan for 80% of the appraised value. They’re basically giving you money to pay back your private lender. Now you’re only dealing with the bank, but the rent you’re collecting pays back the bank plus covers all your expenses.”
Let’s talk numbers.
Say you buy the distressed property for $100,000. You spend $50,000 on the rehab. You charge $1,750 for rent. Head to the bank. They appraise it at $200,000. So they’ll write you a check for 80% of that, or $160,000. Now you can pay your private lender back that initial $150k plus interest, can’t you?
And sure, you still owe the bank $160k, but your renter covers those monthly payments for you.
Meanwhile, the value of the property’s going up. So your equity’s constantly on the rise.
Fast forward 15 years. You’ve got the crib completely paid off. It’s doubled in value to $400,000. And remember, you pocketed roughly $45,000 from rent payments over those 15 years.
Okay, now what if you did that same process 10 times? Or 100 times?
That’s when it gets exciting.
And that’s exactly what Sam’s done, and it’s what dozens of his Faster Freedom University students are doing. Apply today if you’d like to join them.
Cost is apparently $7,500. Payment plans are available.