The program advertises that you can achieve financial freedom and create generational wealth using their strategy. The program teaches their “BRRRS” proven strategy. This will allow you to make money in real estate without spending a single dollar of your own money.
Will this mentorship program help you achieve financial freedom using none of your money? Does their BRRRS strategy really work? Read ahead and find out if this program is for you.
Investing in real estate can earn you passive income through rent collection. Local Lead Generation is a form of digital real estate where you rent space on your website to local businesses. This alternative doesn’t require large capital or bank loans, yet has the potential to be just as profitable with much less maintenance, so it might be worth checking out.
Who Is Sam Primm?
Sam Primm is a successful real estate investor and coach who built a $26M portfolio without using a single dollar of his own money. Sam earned a master of business administration (M.B.A.) in general marketing degree from Missouri State University in 2011. He co-founded Budget Painting (2007 - 2011) which is a painting company specializing in the improvement of interiors and exteriors of homes.
Since then, he worked for 7 years in several management positions for the company Fabick CAT which sold and rented Caterpillar construction equipment. It was during this time when he started investing in real estate on the side.
Sam went full time with real estate investment and, in late 2018, he co-founded Faster House. This company flips 250+ houses a year, mostly on wholesale. He is also co-owner of Greater STL Rentals, which is a single-family rental property management company that manages over 300 houses in the St. Louis area. He also created Midwest Property Group, which manages apartment complexes and self-storage facilities.
With his real estate companies, Sam has over $40M assets owned in 140+ single-family rentals, 6 apartment complexes, and 3 self-storage facilities.
He founded Faster Freedom mentorship in late 2019. Sam Primm has become a known real estate personality on TikTok for his real estate investment videos with 3.4M views, 1.7M followers, and 9M likes. He has a YouTube channel with 78.1k subscribers and 500+ videos and updates it daily. Aside from going live weekly on his YouTube channel, he also talks on his podcast and is a guest on many real estate interviews.
Pros and Cons of Faster Freedom Mentorship
Pros
Sam Primm is a very successful and experienced real estate investor.
Access to a private Facebook group with 3.8K members.
Lifetime access. Complete training materials for beginners.
Access to tools and resources.
Access to a partnered national lender.
Cons
The training and mentorship program is expensive.
No refund offered.
They make the BRRRS strategy sound too easy.
Price
$1,997 or 3 payments of $797 for the home study course. $7500 with 0% financing options, such as 6 payments of $1,250/month, for the complete mentorship.
Refund Policy
No refund
Origin
2019
Reputation
Overall positive
Who Is the Faster Freedom Mentorship For?
Most of Sam’s students are directed to his course via TikTok. This is the top of his funnel that directs them to his YouTube channel where he posts informative videos. The course is for:
- Newbies who have zero experience or knowledge with real estate investment.
- Current real estate investors who are looking for a different strategy or mentorship to scale their business.
If you find this course doesn't fit to you, Open Door Capital is an option.
What Do You Get With the Faster Freedom Mentorship?
The training comes in 2 forms:
CoRP Online
This package costs a onetime payment of $1,997 or 3 payments of $797. This is a home study course that gives you a step-by-step training on Sam’s method on how to flip houses using none of your own money. The package includes:
Faster Freedom Mentorship
Applying for the mentorship is just like other “premium” courses where you have to book a call. It is during this call where they gather your information and offer you the mentorship. The mentorship costs $7,500, with financing options available. The mentorship program includes:
How Do You Make Money With the Faster Freedom Mentorship?
The main selling point of the program is that you will learn how to achieve financial freedom by investing in real estate without using a single dollar of your own money. This can be achieved by using the BRRRS strategy. BRRRS stands for Buy, Rehab, Rent, Refinance, Scale.
Buy
You will need to find distressed property to buy at a discount. One way of finding these properties is by establishing a relationship with real estate agents, for they come across a lot of property. You can also get discounted properties from wholesalers. You can find them at sites like meetup.com, eventbrite.com, or even Facebook groups.
Networking is another way to find properties, post on your social media accounts, or basically just let everyone know what you’re looking for. If you have the time to spare, you can go driving for dollars and look for houses that look distressed. You can also put up bandit signs. The program will teach you over 30-ways on how to look for these properties.
To cover the cost of the property, you need to borrow from a private lender or hard money lender. The mentorship program is partnered with a national lender which can fund up to 90% of your deals.
Rehab
You will want to rehab the distressed property to increase its value and get it ready to rent out. Hiring a contractor will cost you more but can speed up the work to 2-3 months. Time is important as you need to consider issues like holding cost and carrying cost. If you get contractors, it is suggested to get 3 bids. This is to ensure you get an honest and competitive price.
Sam teaches 3 benchmarks on how to gauge if the property is worth it.
- Cosmetic repairs - Surface level work such as painting, flooring, new fixtures. The estimated cost is $10 - $15 per square foot.
- In the middle - Cosmetic repair, and other more workload jobs like tearing out or replacing things in the kitchen or bathroom. Estimated cost is $30 - $35 per square foot.
- Full gut rehab - This is basically a full renovation. The estimated cost is $50 - $60 per square foot.
To cover the cost of the rehab, you need to borrow from a private lender or hard money lender. The mentorship program is partnered with a national lender which can fund up to 100% of your rehabbing cost.
Rent
A bad tenant could ruin the entire process and leave you at a loss. Approving the right tenant is very important. Tenant turnover is an expensive part of owning a rental property. The right tenants have a turnover rate of 5-6 years. Look at 4 details when approving a tenant:
- Income - Minimum 3x net income to avoid tenants leaving early or you having to evict them.
- Credit score - Find a minimum credit score that works well for you. A good credit score that shows how your tenant deals with debt.
- Background check - Avoid applicants with a history of major violent crimes or evictions.
- Landlord reference - Call the past or current landlords to get more info and insight on the tenant.
Refinance
If you’ve followed previous steps, then you’ve bought a property at a discount, created equity, and increased the value by rehabbing it, and got it rented to prove it’s a cash producing asset. Now you’re ready to take your rented rehabbed property to a small local bank or small credit unions. Every market has a small local bank, especially in rural areas.
You will ask the commercial lending side of the bank for a 80% cash-out refinance on your property. They will send a 3rd party appraiser to value the property. The bank will then write you a cashier’s check for 80% of the appraised value. Now you can pay your money lenders with interest.
Scale
Sam breaks down the steps on how to scale in 5 steps:
- Systems and process - Creates systems and processes with buying, rehabbing, and renting properties. Creates efficiency and will save you time.
- Community and coaching - Be involved in the local community. Go to local real estate investment meetups, join Facebook real estate investment groups, be active on social media etc. This is where you’ll meet the people you’ll need from realtors to lenders and insurance agencies. Pay for good coaching, as this is where you can learn from mentorship and motivated people.
- Accountability - You need to hold yourself and your team accountable. This will help make the scaling process smoother and faster.
- Lead flow - You need to increase your lead flow to scale big. By using multiple of the 30+ ways to find buyers that the program teaches, you can increase the flow of leads.
- Extra Funding - You need to have many lines of funding for purchasing and rehabbing the property. You also need several small banks in order to apply for more refinancing.
Market
The program trains and mentors you on how to invest in the local market or any market across the United States. They teach you how to find and make deals without even seeing the property using the virtual investing blueprint. Find the market with the best ROI. These markets are usually around the Midwest or the South.
3 Common Mistakes With the BRRRS Method
- Many beginners buy a property that’s not discounted or near the market value. This mistake will put your profit in a negative.
- Approving tenants too quickly. Spend more time and make systems and processes when approving tenants. This will reduce the chances of you having issues with tenants.
- Not getting approved at the bank beforehand. This will cut off one step of the BRRRS method. Worst-case scenario is you will have to sell the property.
If you follow all the steps, then you should be able to create and scale your real estate business and will quit your day job in a few years, at least in theory.
Pros and Cons of BRRRS
Is the BRRRS strategy really effective? Here are the pros and cons of the method.
Pros
You can earn passive income through rent collection.
Buying and holding multiple properties increases your equity.
The BRRRS method is repeatable, as you can use the same strategy to scale the business.
Cons
Rehabbing is time-consuming which and delays may cost you.
Rehabbing is expensive. You may need to do additional repairs that were not planned for.
BRRRS is a slow and steady strategy. It takes a lot of time and work before you turn a profit.
Finding and managing renters is a lot of work. You may need to hire a manager as you expand.
There are huge financial risks with BRRRS. You can be at a loss if you estimate a property’s post-rehab value, the amount of rent you can charge, and the renovation budget incorrectly.
The BRRRS strategy that the program focuses on is not suitable for beginners. The strategy can do wonders for experienced investors who have solid real estate knowledge and can accurately gauge market values and renovation costs. Simple miscalculation of prices or budgets, and problems with finding renters can cause you to lose money.
Alternatively, you can check out Pace Morby's SubTo coaching program that specializes in creative financing. You'll learn how to do subject-to deals while spending none of your own money.
How Successful Are Faster Freedom Students?
I have found no positive or negative reviews on the Faster Freedom course outside the official website. There are a lot of success stories on the Faster Freedom website. Take them with a grain of salt.
There are also some positive reviews about Sam Primm. He's also been a common sight on real estate investment channels and podcasts.
The program gives an earning disclaimer and implicitly states that this is not a get rich quick scheme. This setting of expectation may be a big reason the program has not yet received any negative reviews.
Kanika- Real Estate Student Makes Big Profit on First Flip
Kanika's Background and Story
Kanika is a family doctor in St. Louis who specializes in mothers, babies, and addiction medicine. She felt burnt out at work during the pandemic and wanted to explore other income opportunities. She heard from a podcast about the benefits of real estate investing to doctors like her. Her husband met a property manager, and this started their interest in real estate. Despite having a busy schedule and no real estate experience, she took a gamble with her first property flip.
How Kanika's Business is Doing Today
Kanika finished her first fix and flip and is now working on a second one. She bought her properties through a wholesaler, and says it's easier than following the traditional buying process. Her first property cost $120,000, and she planned to spend $25,000 on repairs but ended up spending $12,000 more. She hopes the property will be worth about $220,000 after she refinances it. She acquired 4 properties in total in her first year.
Lessons Kanika Learned on the Biggest Challenges
Importance of Education and Community: Kanika emphasizes the value of joining local real estate groups and enrolling in online courses because it helped her learn the business faster.
Understanding and Utilizing Funding Options: She emphasizes the necessity of knowing where to finance deals and recommends using private lenders.
Systemization and Delegation: Kanika realized the importance of having a good system in place. She advises new investors not to do rehab work themselves.
Realistic Budgeting and Expectations: As a planner herself, Kanika reminds interested investors to be careful in planning their finances. She suggests having at least a 20% allowance based on allocated budget for unexpected expenses.
Patience and Due Diligence: Kanika emphasized the importance of taking time when choosing a property. Do research and ask for multiple quotes from different contractors so you can evaluate all the available offers.
What's not mentioned in the interview: Most fix and flip project costs often overrun initial budgets. According to a 2020 report by Attom Data Solutions, about 6% of flipped homes were sold for less than the combined cost of purchase and renovation. Unexpected expenses like structural repairs, mold remediation, or changes in market conditions can quickly erode profits.
Is Real Estate Investing Worth Starting in 2024?
If you are new to real estate, you may wonder if 2024 is a good time to invest. Real estate is always an excellent investment, as value always increases in the long run and gives the highest ROI of any business model. The issue of starting the business is that it is a high-risk venture that requires you to invest a lot of capital and time if you have any chance of succeeding.
Keep in mind that you need to put in a lot of work into your real estate business. You need to deal with legal issues, management and maintenance, as well as with your tenants. The more you scale, the more work you have to put into it. It takes a long time for you to turn that passive income profitable.
So what are the alternatives? I mentioned local lead generation at the beginning as an alternative to real estate investing, which deals with digital real estate. This business model is low risk, requires low capital, doesn't take a lot of your time to set-up, and is easily scalable.
How it works is you basically create sites and rank it on Google. Then you rent out space on these ranked sites to local businesses. You don't have to deal with management, maintenance, or any other issues for a long time. That's a true passive income model. Check out Local Lead Generation if you think this is for you.
Be prepared to fire 3 or 4 contractors while getting your rehab finished. Also be prepared for a tenant who checked out fine to stop paying you.