Come join us as I interview Jim Ingersoll, author of 2 best-selling real estate investing books and founder of the Investing Now Network and Bank Elimination Blueprint.
Jim has a proven model of real estate investing success: Without using your own money, or a bank mortgage, you can invest in cash-flow real estate like a pro.
Come sit down with Jim and I to discuss his real estate investing methods, how he finds cash-flow properties, and how he acquires them, rehabs them, and sells them, all without using his own money or relying on traditional bank financing!
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Jim Ingersoll Hangout Details
Date: January 14, 2016
Time: 5:30pm Pacific
After a brief introduction, Beau handed the reigns over to Jim, who told us he’d been interested in real estate at a young age. His dad was a landlord, and Jim started young in real estate investing. He admitted to making a lot of mistakes.
After high school, Jim did what many kids do: He went to college, got his degree (2 actually – Undergrad Electrical Engineering degree and Master’s in Engineering), and went to work “climbing the corporate ladder.” Thing went well.
But being in the rat race got old and Jim began rekindling his interest in real estate investing.
He began “wholesaling,” which Bigger Pockets defines as “putting property (normally distressed property) under contract and assigning or reselling the property to another investor. The investors a wholesaler sells to either use cash, lines of credit, or hard money loans. This allows quick closings on properties that sometimes need extensive repairs.”
He started wholesaling about 10 years ago, and did 100+ transactions for a few consecutive years. But that was all what Jim calls, “transactional income.” Put another way, wholesaling takes a lot of work.
Jim needed something different: Passive income. At first, he started out using his own money. Then the mortgage meltdown began and he needed to re-invent himself and his model.
So he started down a path where he could use other people’s money to purchase and rehab single family homes, rent them out, and collect monthly income. This was the beginning of his Bank Elimination Blueprint.
Keys to private capital funding:
- No banks
- Self-directed IRAs
- Tax-free accounts
- Buy & Hold
Jim now buys below-market single family homes, rehabs them, and then rents them out. He acts as property manager for most of the homes he buys and rents out. He uses Buildium.com.
Jim says, “I don’t have to go to work every day. My renters do.”
Jim’s key to success: Get started and build that portfolio!
Jim’s Last Deal
He bought a house for $55,000 from an expired listing (great source of houses he acquires). It was listed in probate at $77,000. It was a 4 bedroom, 2 bathroom brick “Cape Cod” style house in the city. He needed $25,000 to get the property ready to rent. Jim thinks after rehab, it will be appraised for around $130,000, giving he and his investing partner an almost-instant $50,000 profit (they equity share when they sell 5-7 years or more later).
Get this – he rents it at $1,245 a month (on an $80,000 investment) and splits that with his investor (minus taxes and insurance). Jim tries to get 1.5 percent in rent (over total acquisition and rehab outlay).
He says places like Memphis, Tennessee get rents of up to 3%.
Biggest Assets for Successful Real Estate Investing
- LISTEN! Use your ears.
- Deliver on what you promise.
- Be a person of character.
- Continually learn. More below.
Where does Jim source his houses?
Mostly by referral and from past deals. His past investors like what Jim offers, so once their deal ends (they sell the house), investors want to do another one. That’s pretty cool.
He also gets leads from expired listings, probate, and aged or burned-out landlords.
Buying the right house, at the right price, and using good contractors are the two biggest keys to making this model work.
What advice would you give to new investors, who possibly want to get out of their job?
- Start with wholesaling. You need transactional income (i.e., money NOW, while you build up your passive income streams).
- Get the right training.
- Build your network. Remember: “Your network is your net worth.”
- Get the right coaches and mentors. Yes, you need them. Jim estimates that he lost 10 years not having the right coaches and network in place.
How to contact Jim Ingersoll
Free report: www.bigmoneyinvestor.com/free