From army vet to expert real estate investor. Jimmy Vreeland, Principal at Vreeland Capital and Co-Founder at CashFlow Tactics, has innovated the way W-2 employees break into real estate. The 4 Pillars of Wealth educational model and BRRR-Key strategy are tools Jimmy created to help average people start real estate businesses.
Listen to today’s episode as Jimmy explains his model for real estate investing and gives you insight on how his students excel as first-time investors. Passive income is in your future.
Jimmy’s Links:
Linkedin: https://www.linkedin.com/in/jimmy-vreeland/
Website – Cashflow Tactic: https://cashflowtactics.com/
Website – Vreeland Capital – https://vreeland-capital.com/
Your crystal ball is here: https://bit.ly/44o1Mko
Listen HERE or watch on YouTube: CLICK HERE!
TRANSCRIPTS:
The great thing about 30 year fixed mortgage is
That’s something I think is just tremendous. You really don’t see, I mean that’s the number one concern I see with many of our clients is
If you seek cashflow, you’re may probably not going to get that wealthy.
Chris Miles was able to retire twice by the time he was 39 years old, but he’s not content to just enjoy his own financial freedom and peace of mind. Chris wants you to have your own ripple effect so you can live free today. He’s not the financial advisor you expected. He’s the anti Financianal advisor you deserve. He’s jumping behind the mic right now, ready to make waves. Here’s Chris Miles.
Hello my fellow Ripples. This is Chris Miles, your cashflow expert and anti financianal advisor. Welcome to our show It for you. That works so hard for your money and you’re ready for your money to start working harder for you today. You want to become work optional where you work because you want to, not because you have to, where you not want to just get rich, but you want to create a rich life where you can actually create that time and that freedom to be able to be with those you love doing what you love. Guys, thank you for tuning in today. Thank you for being a part of this show because guys, honestly, without you, I couldn’t create a ripple effect throughout your lives. Thank you for being a part of this and if you guys want to be able to learn more and go deeper down this rabbit hole of how do you create more passive income today, or even how you can actually get that max ROI infinite banking policy, not like the crap that’s sold out there today. You can go check out our website, money ripples.com for more information. Okay guys, so today I’ve got a special guest, Chris,
Sorry, I’m going to interrupt. I really liked that intro. I definitely about, I have so many infinite banking policies that I really enjoyed that intro.
You’re like, I got some many infinite banking policies. I know all the agents out there.
Yeah, I guess I’ve seen what you’re talking about. So that amused me.
Yeah, for sure man. Well good. Alright, so today I’m bringing on Jimmy Vreeland today. Now he’s not just with Reland Capital. This guy is awesome. He teaches people how to do burkey and turnkeys. We’ll talk about what that means. But this guy had a military background at West Point was in the Army. If you ever watch football, if you’re a fan of that, you might have even seen him on the field. He’s gone everywhere from college to then from the military to eventually get into real estate. Where guys, he does exactly the things we talk about today. And one of the big questions we’re going to talk about here is should you be quitting your job if you become financially free, should you be quitting your job or not? And so we’re going to talk about that with Jimmy today. So Jimmy, welcome to our show.
Hey Chris, thanks for letting me interrupt your intro so I have a bad problem with that.
That’s okay. Post edit, we don’t even see it. In fact, we’ll probably post edit this comment when I say it too, but all right,
Cool.
So Jimmy, tell us more about your background. You’ve got a pretty impressive background for sure.
Yeah, so now you could not go back and watch old Army football tapes and see me on the field. So I was a solid bench warmer, but I did earn a varsity letter. I did play football, football at West Point. After West Point I became an Army ranger, went to Iraq twice, Afghanistan once and in Iraq. The first time I actually started my real estate journey, I read Rich Dad, poor Dad, and I was hooked. Then first thing Kiyosaki says is if you want to become wealthy, learn how to sell. So once I got the Army, I got a corporate sales job in medical sales. I used a lot of the lessons I learned in sports and the military in sales, and then eventually I was able to start my own business and that’s why we’re here today. And then I love working with highly successful W2 business to people are killing it and they know they kind of want to see behind the curtain and get through some all the info that’s out there right now in the internet on real estate. People don’t get started in real estate. There’s not enough info. They don’t get started. They don’t find which path is the right one for them.
Isn’t that so true? I mean, everywhere I turn, whether I’m looking at Instagram, Facebook, whatever, and it helps course that we have a lot of real estate friends, but it seems like wherever you turn, there’s always somebody talking about it. I mean, almost as bad as crypto people. I mean, there’s tons of real estate people out there today.
Well, sometimes they’re the same people.
That’s true. Yeah, sometimes they do both, right. Well, I mean, again, I appreciate your service. I mean, that’s awesome with the fact that you did two tours and everything else too, and you were an Army ranger. I mean, that’s pretty intense training from what I understand.
Yeah, it was 62 days of suck. I always as type A personalities, you’re always like, could I have become a seal, yada, yada yada. And then everybody loves that David Goggins book. And so he kind of set the barometer. He’s like, hell, week at Buds is horrible. And he’s just like, ranger school just sucks. And so I thought he did a great job describing the experience.
Yeah, I noticed that too. I just barely went through that book recently and he talked about being out in the wilderness in the jungle of Florida or whatever it might be, or in the hills of Tennessee and talking about the amazingly bad smell you smell out there. And funny enough, I just talked to a friend of mine who went through that same training and he’s like, oh yeah, the smell of the thing you’re smelling is each other. We just weak. By the time you get the end of that,
When you have an eight in two months and your body is literally feeding off itself, it creates a lot of ammonia and that actually it really stinks.
Well, that’s a good thing. This podcast is not like a scratch and sniff. Right, exactly.
Well, I smell a lot better now if
Anybody’s curious. I can attest to that. So everybody, if you ever see Jimmy in person, you’ll know he smells great. Now I whiff him every time I see him. That sounds awkward, but anyways, we’re moving on. So tell us more about what you’re doing with the turnkey and the bird key. I know you work with passive investors as well as those are trying to become for active investors as well.
Yeah, so we call it more like semi-active because Turnkey’s great, it’s a phenomenal wealth producer, but I found after doing it, we’ve sold around 800 turnkeys, but everybody had the same problem. They started running out of their own capital. So you’d have these people who had 10 deals and very knowledgeable real estate showed up to my trainings for two years in a row. These guys can work a deal. They know exactly what they’re doing, but if they don’t have enough cash or their down payment, they felt stuck and frustrated. And then here’s a big secret of the wholesaling world. When you’re a wholesaler of properties, all you’re trying to do is get the deal deep enough for you to get yourself a spread and for your end buyer to be all in at 80%. And so I just did some simple math. The goal is to get everybody in at 80%, and if I sell to a local St.
Louis person, their goal is to be in at 80%. If I sell to so many of my program from California, as long as I get ’em in all in 80 to 85%, does it really matter? And then I let ’em use my construction team because one, I want the work for ’em, and two, I’m better than the local guy in St. Louis doing it. So I was just like, why aren’t wholesalers selling Burr keys? Why is it only burrs? And then you got BiggerPockets and all these other education programs teaching the burr and making it like this white buffalo because I’m like, there’s no way these people can passively get it on their own. So I saw a big need in the market I needed from wholesaling wise, I needed a buyer for that product. So I was just like, why not combine ’em together where everybody wins?
And that’s a burkey. So it’s a rental where my team does all the work, but you’re all in from 80 to 85% and then you go to the bank, refi all your cash out, and so you’re not in the same problem of a turnkey where you’re running out of your own capital. I also show people how to raise private money, so raise private money, use other people’s money to buy the house. My team fixes it up, you refi it out, get your 30 year fixed mortgage and then start over and do it again. So it’s also a much faster way for people to get a rental portfolio.
Now, I’ve had a few people on this show. We’ve talked about doing rentals, whether it’s turnkey or otherwise. How do you feel with this environment right now? I mean obviously the interest rates have been higher for the last few years. How have you had to adjust the strategy or have you had to adjust it at all?
I’ve actually did. So I do case studies for people we manage properties for, and so every time you get a leash renewal, we’ve got it systematized, like boom, we give you an example of how your portfolio is performing. And consistently, every case study I look at people and then in their case study, I also show them what their return would’ve been if they had been just invested in a s and P index fund. And consistently our clients are making over three to 400% what they would’ve made in the market. And so that’s really, it’s regardless of interest rates because they’re raising interest rates because they’re worried about inflation. Right? Chris? And because they’re such an inflation worry, what’s that almost guarantee for real estate?
Well, it’s going to guarantee that boost up rents
And it’s going boost up rents and most likely give some price security.
And so
I love giving what the market will take me, so I am more secure in saying, Hey, look, over a 10 year period, this house is going to appreciate 5% a year. That’s half of inflation what is projected right now. So buy this as a cash flowing hedge against inflation. And so the other thing is these people have been with me like four years. I got a couple clients that are up half a million dollars and about 20% of the return is in cashflow. The rest is in equity, pay down and appreciation. And so this is the great thing about 30 year fixed mortgage is leverage amplifies returns. So if the house appreciates 5% and you only put 20% down the
Appreciation, you 25%,
You made 25%. Exactly. And so no, as long as my stance has been, as long as the interest rate’s fixed, it doesn’t matter.
That’s the key. None of this variable home make line of credit crap. It’s really just fixing that 30 year fixed.
And then especially if you’re a business owner or a W2, I’ll tell you, I know as a business owner, I get my money from private money. I have to grind teeth to get bankers to give me money. I can get hard money lender to give me money all the time, but long-term fixed financing is not easy to do when I get a 30 year fixed mortgage. Now I don’t show them my business returns, I show them my W2. The bankers want to see your W2. And so the hardworking, highly successful professionals that both you and I work with, I just love showing them how to fully leverage that W2 they have from either their business or from their place of employment.
Yeah. Well, one thing I know that you’ve talked to, you’ve mentioned to some of my clients as well is that you’ve got some different programs even help even on the third of your fixed side, don’t you, for those that are members that are paying members of your organization. Right?
Yeah. Since we do so many deals a year, I’ll buy down a block of capital. And so right now, everybody inside my program’s getting, if the market interest rates seven, my guys are getting five.
Wow,
That’s awesome. Yeah, I ran those numbers out over 10 years. That’s a $25,000 savings, just that two point difference,
Not to mention the cashflow profit is bigger too, which gives you more safety in case anything goes wrong. There’s repairs, maintenance, vacancies, whatever. That gives you a little extra buffer too.
Well, and then all that profit is the cashflow difference because appreciation doesn’t change regardless of the interest rate, kind of what we already talked about.
That’s right. Amen to that. That’s awesome. I remember when you told me that for the first time. I was like, are you serious? That should not be a secret. And I know you tell people that too, but that’s something I think is just tremendous. You really don’t see, I mean, that’s the number one concern I see with many of our clients is, but the interest rates are higher. Do I wait for ’em to drop? You’re like, why Wait, why not just get ’em low? Now,
I’ve done the math on that and it doesn’t pencil. So let’s say you’re like, oh, Rachel, go down in a year what you gain, you’re losing that year of appreciation. You don’t want to do that.
And so I think it’s, give me your thoughts on this. I think it, it’s a hypothesis that you’re running with, the hypothesis that I’m running with is that the American dollar is getting destroyed. Inflation is going to be part of our reality for a long time. This is not going to be a short-term fix and the fact that we have such a housing shortage in this country right now, I don’t see any price softening for a long time. And so if you’re fine in believing that hey, at a minimum the median home price of the United States is going to stay with the latest 75 year trend of 5% appreciation, then you use cashflow to make sure it’s at least breaking even year one. But your long-term play is that appreciation and using leverage to get four times on your cash on the appreciation,
And you don’t just get appreciation. But when the rents also go up each and every year, and they’ve been going up way more than people expected the last few years, they thought everybody’s like, oh, it’s going to stop. It’s going to come to halt. Nobody’s going to pay higher prices. Guess what? They’re all paying higher prices.
Hey, tell me what you think about this. I had the weirdest deep thought over the last week. You were in CG meetings when Larry Yosh was talking about success. So for your audience, a great book is how leadership actually works, and it really helped me personally and in my life. And then Larry, I hired Larry as a coach, but so Larry says, if you seek accomplishments, you probably won’t get fulfillment, but you maybe will get accomplishments. But he’s like, if you seek fulfillment, you are going to have to accomplish things to be fulfilled. So there’s a good chance if you aim for fulfillment, you get both. That’s
Right. Seek fulfillment. You will accomplish something
And you’ll get both. You’ll get accomplishment and fulfillment, which as high achievers, we all crave and desire. But tell me if this translate. I might be stretching this. If you seek cashflow, you’re may probably not going to get that wealthy, but if you’re looking at wealth and you want all the four pillars because of inflation and time and rent rising, you will get cash, you will get appreciation, you will get leverage pay down, and you’ll get tax advantages. You’ll get all the four pillars of real estate.
I can see that, especially in this strategy where we’re talking about here. Yeah, too deep. That’s not always the case.
Too much of a stretch on that metaphor or do you think just right.
No, I can see that. Because for example, if you’re always seeking cashflow, there’s times that we have clients look at debt funds and they might say, we’ll pay contractually 10, 11, 12% a year, but there’s no growth on that money, and there may not even be tax advantages, which you also get on the real estate side when you buy a rental. But with what you’re saying is, if we aim for this, even though cashflow might be less now, but if you aim for this, you not only get the cashflow, which is inevitably going to happen, you also get everything else with it. The appreciation, the mortgage buydown, which creates more equity, you get still tax benefits as well. You get all the above
Because what I saw is I saw people fixed on cashflow. I was like, all right, bro, you want cashflow? I’ll sell you a C class asset. They’ll turn down a $200,000 house, which is guaranteed to be a wealth producer for a hundred thousand dollars house in a C class area that they bought for 80, but was renting at 1100 and they’re happy. And I was just like, okay.
It’s like those Ohio properties you always hear about, right? They’re like, I bought it for 50,000 bucks. It’s still worth 50,000 bucks, but I make $600 a month cashflow. It’s like, well, that’s good, but that property will never really grow at all. It’s just you’re just making cashflow and that’s it.
Then some people that’s you get rich in your niche, and I know plenty of people crushing it on both types of deals, but what I like for my job to be is to just be a real estate buffet and explain options. I
Love it. That’s awesome. Now, one thing that has popped in my head here, because we were joking about it, it is probably got cut out in post edit and everything, but I know you’re a huge fan of infinite banking. You’ve got a lot of money sitting in infinite banking. Here’s the debate I always hear people talk about, especially in the real estate game. They’re like, why would I slow down my growth to go do infinite banking when I can just go and invest and buy as many properties as I can? Why? What do you see as a purpose in your own life for infinite banking?
Well, one, for a real estate guy to say that I never use my own money to invest in real estate. That’s one. My job as a real estate investor is to be highly liquid. That’s another reason I don’t use my own cash to invest. I borrow private money, I borrow from banks, but real estate never fails. If you look at the crash in 2008, all the houses that everybody got foreclosed on are now worth three times their value. So it’s never the asset that fails. It’s the borrower’s liquidity that fails.
So
True. So as a real estate investor, especially as a small business owner, you have to be liquid. And so I’m not that comfortable keeping money in a bank. There’s just no return. But if I can insure my losses, if I were to, the greatest worst economic thing that could happen to my family is I’m the primary breadwinner, is that I’m no longer around for them. So the fact that I can ensure that loss and have liquidity for my business in the same thing and get a tax-free return, that’s why I put all my liquid cash in life insurance policies.
It’s really your war chest is what it is.
This is from the seam to lab. It’s from the black swan, but when risk of ruin is present, rate of return is irrelevant.
So true. I
Can’t stand people talking comparing their investment based off their rate of return because that’s only potential high side. At what risk is your capital at. That’s a very important thing when you want to brag about your investments.
Right? That’s true. I was talking with one of my employees, and she is in her twenties, and she has these classmates that are now, one of them has become this Bitcoin millionaire, and he’s talking about, he’s like, oh, I’ve made so much money. I will teach you how you can make millions of Bitcoin too. And both of us were like, all right. We’ll see how long that lasts for. Let’s see how long he rides that little wave before all of a sudden he’s no longer a Bitcoin millionaire. Right.
Well, it’s been my experience that the people making millions in Bitcoin are teaching people how to make millions in Bitcoin.
They make their money from teaching people how to do it, not necessarily doing that in themselves. Right.
Yeah. I mean, I think there’s some ingenious stuff going on as far as how mining is happening. That’s pretty cool. That’s interesting to watch as someone who loves human creativity. I’ve heard of a guy who is taking cap natural gas wells, releasing the gas, which spins the turbine, which gets the computers to move to mine, the Bitcoin. That’s entrepreneurial creativity, but just speculating that this currency will go up and down. It’s not investing, it’s speculating, and there’s nothing wrong with speculating, but you got to know You’re speculating.
Yeah, you’re gambling at this point, and how do you define investing in your eyes? So
This isn’t for me, this is from the greatest investing book ever. It’s called How I Lost a Million Dollars in the Stock Market, but the guy, it gave such clarity in my brain. I read it when I was just getting into this, but investing is departing with capital with the expectation of return over a long period of time and dividends, interest or rents, and he goes into speculating. Speculating is buying for resale. It’s buying so that you can sell at a higher price, and that’s kind of my business. I do all of that when I flip a house. I speculate when I wholesale, I’m trading. When I buy a rental, I’m truly investing, so I also don’t like in the real estate education space, they’re like become a real estate investor and become a wholesaler. I’m like, no, dude. You’re an active business owner in real estate trading. You’re not an investor, and then most flippers are called investors. We’re all speculators. That’s right. Nothing wrong with speculating,
Just call it what it is.
Yeah. You got to know what you’re doing.
Yeah, that’s right, man. This has been awesome, man. Time is flying by way too fast here. If people want to find out more about your real estate stuff that they can, whether they invest in it from an education perspective or buying rentals from you guys, what’s the best way they can follow you or be able to get more information?
YouTube or Instagram at Just Jimmy Breland, V as in Victor, R-E-E-L-A-N-D.
Awesome. Yeah, we’ll put that too so people can get that.
Yeah, Craig has my cell phone, so whatever ripples are interested, Craig just usually sends a group text and we just start talking from there.
Sounds awesome, man. All right. Well again, appreciate you being on and this is awesome. I learned a lot myself just talking with you today, so really appreciate your time here, dude,
Check out. Have you ever heard of that? Lost a million dollars book?
I haven’t. No. Now I got to find it.
Check out that book. It is awesome.
Yeah, sounds like it. Well, everybody definitely check out Jimmy’s stuff and then hey, figure out how you can lose a million dollars too. There’s a book on that as well, so everybody, make sure you go and not just listen to what we’re talking about here, but find a way to actually take action. That’s one thing that Jimmy said early on. It’s like you can listen and watch influencers all day long, but it’s about what you do with this information that makes the difference in your life. So go and make it a wonderful prosperous week. We’ll see you later.