Real Estate Investing School Podcast

Episode 137: How to Build Wealth in 5 Years with No Experience with Tommy Harr
Date: March 4, 2024
Host: Joe Jensen
Guest: Tommy Harr

Overview

In this engaging episode, Joe Jensen sits down with Tommy Harr, a former home inspector turned highly successful real estate investor from Columbus, Ohio. Tommy shares his journey from working in his family’s inspection business to building a $15M+ rental portfolio with more than 65 units, flipping and wholesaling over 150 houses each. The conversation navigates Tommy's early missteps, his first six-figure loss, the lessons that built his business, and his approach to leveraging real estate for life-changing wealth—even with no initial experience or outside backing. This episode provides actionable insights on wholesaling, flipping, building a rental portfolio, and why tenacity trumps talent in real estate.

Key Discussion Points & Insights

Tommy's Background: Real Estate Roots and Early Hustle

• Tommy grew up in Columbus, Ohio, in a blue-collar family involved in real estate adjacent businesses: his father ran property preservation and inspection companies ([01:53]).
• After college in 2017, Tommy became a home inspector with his father's business, earning $32k/year, hungry for more and curious about the money flowing through real estate ([03:01]).
• He observed the landscape through inspection and hard money draws, which gave him insider access into the investors’ side of deals ([04:08]).
  • "I started doing inspections and hard money draws for investors... I happen to be that person for the bank on a lot." — Tommy, [04:08]

The Jump to Real Estate Investing: Wholesaling and First Deals

• Tommy realized the highest leverage and active income was in wholesaling—no capital or risk required ([06:31]-[07:08]).
  • "I just fell in love with the idea of, I mean, make some phone calls and... you can get some deals and make kind of fall out of thin air." — Tommy, [06:53]
• Began handwriting letters to prospective sellers and hustling for deals while still inspecting homes.

First Flip: A $100,000 Loss and Lessons Learned ([08:24]–[14:19])

• Tommy and his uncle bought a massive 6-bedroom foreclosure in an affluent area, expecting huge gains but losing $100k after doubling their renovation budget and timeline ([09:48]).
  • "We bought for 425. We thought we were going to sell at the time... for 800 to 850,000. As time went on, we doubled our renovation budget... it took us 18 months to sell it. So the rent, the holding costs alone... The things that eat you alive are going to be your holding costs." — Tommy, [09:48]
• Key takeaways:
  • Get laser-focused on scope of work and holding costs.
  • Avoid overextending on unfamiliar or high-priced flips.
  • "If you don't know [your holding costs], it's going to hit you like a sack of bricks." — Tommy, [11:43]

Overcoming Failure: Persistence, Education, and the Next Deal ([14:19])

• Instead of quitting after his loss, Tommy kept inspecting and devouring BiggerPockets podcasts, determined to "figure out what I was doing wrong" ([14:19]).
• Used last $800 on "We buy houses cash" postcards—landed a $25,000 profit on his next, much smaller, flip, splitting profits with a funding partner ([16:50]).
  • "We bought that house for 54,000, put 20 into it. We sold it for 130. I did all, most of the work... We made 50 grand and I made 25." — Tommy, [16:50]
• This base hit proved smaller, safer deals could reliably generate wealth and launched him on the right path.

Scaling Up: Wholesaling, Flipping, and Building a Rental Portfolio ([18:02]–[23:41])

• Reinvested profits into his first house hack: a duplex, financed with parental support and an FHA loan, living for free and cash-flowing from roommates ([18:02]).
• Met a business partner and rapidly scaled wholesaling (50 to 100+ deals/year), using "pick of the litter" deals from their own pipeline for long-term holds ([19:30]–[23:20]).
  • Focused on 1–4 units but has also added mid-size multis; bought 40-45 units in 2021 alone at favorable interest rates ([21:49]).
  • Empowers their flipping and holding businesses through vertical integration.
  • "At any given time, if we want to keep those properties, we just turn the exit one way from a flip to a hold." — Tommy, [23:41]

Building a Team, Systems, and Funding ([23:41]–[26:21])

• Used his construction and inspection foundation to confidently manage renovations.
• Emphasizes the value of network, deal flow, and raising private money for continuous growth.
• Employs property management, and advises scaling only when the model, team, and systems make it worth the grind.

Real Estate Philosophy & Wealth-Building Mindset ([28:48]–[31:52])

• Tommy's approach: bootstrap, hustle for five to ten years, and pour active income into acquisition of assets that provide freedom for life ([28:48]).
  • "If you do this and you sacrifice for five, maybe 10 years max, you can really have an outstanding future, that you don't really have to worry financially." — Tommy, [29:05]
• No quick wins—real estate is about long-term transformation and generational change.

Favorite Deal Breakdown: Zero Down, $800K Triplex Through Networking ([32:51]–[39:12])

• Found a $395k triplex via social media from an out-of-state wholesaler; private lenders funded purchase and rehab.
• Four months later, refinanced at $780k appraisal, paid off all lenders, and owned the building with zero dollars in the deal ([32:51]–[35:54]).
  • "That $800,000 triplex with $0 down payment, all from posting on social media and going out and networking." — Tommy, [33:49]
• Vital insight on using rate-and-term refinancing with liens for quick, no-seasoning refis—a key technical tip for BRRRR investors.
  • "There's two types of refinances... A lot of these lenders, they'll do no seasoning on rate and term." — Tommy, [36:16]

Advice for New Investors ([40:09]–[44:18])

• Get on social media, network, and build authentic deal flow.
• Focus on "who, not how"—find team members or partners that offset your weaknesses.
• Don’t get “greedy” on BRRRRs—it's a win to own with none of your own money in the deal [39:12].
• Anyone can do this: It’s not fast, and it’s not easy, but sustained effort = family and financial transformation ([44:18]).

Notable Quotes & Memorable Moments

• On Losses and Perseverance:
  • "I lost my ass on that deal... but what I did was during that time period, I didn’t stop learning." — Tommy, [09:06]/[14:19]
• On Doing Base Hit Deals:
  • "If I play it safe, base hit and can still make that, I do that four times and... I'm at six figures." — Joe, [16:57]
• On Long-Term Philosophy:
  • "Sacrifice for five, maybe 10 years max, you can really have an outstanding future... So if you eliminate [money worries], then you can have an open mind of... what’s next?" — Tommy, [28:48]
• On Mindset for New Wholesalers:
  • "If you think you're going to be a part time wholesaler and make six figures a month and be consistent, it’s not going to happen... but if you want to pop a deal every other month... that’s absolutely possible." — Tommy, [25:10]
• On Wealth, Motivation & Family:
  • "I come from a blue collar family... so kind of showing them that hey, if you do this and you sacrifice for five, maybe 10 years max, you can really have an outstanding future." — Tommy, [28:48]
• On Using Private Money:
  • "I lend cash from... individuals with idle 401ks. They roll into self-directed IRAs and they lend them on my real estate deals." — Tommy, [34:49]
• On Rate-and-Term Refinancing:
  • "If you can own this asset with none of your dollars in it, that’s a win." — Tommy, [39:12]

Timestamps for Key Segments

• Tommy’s Upbringing and Family's Role in Real Estate — [01:53]
• Becoming a Home Inspector & Entering Real Estate — [03:01]
• First Steps in Wholesaling — [06:31]
• First Flip and Six-Figure Loss — [08:24]
• Understanding and Calculating Holding Costs — [10:55]
• Mindset After a Major Loss — [14:19]
• First Successful Flip and Building Momentum — [16:50]
• Scaling into Rentals and Meeting Business Partner — [18:02]
• Building the Wholesaling Machine and Portfolio — [21:41]
• Vertical Integration and Team Building — [23:41]
• Advice for New Wholesalers — [25:10]
• Wealth Building Mindset & Philosophy — [28:48]
• Deal Deep Dive: Zero Down Triplex — [32:51]
• Private Money Strategies and Technical BRRRR Tips — [34:27]
• Final Thoughts and Encouragement — [44:18]

Final Four Questions

1. Dream Deal?
   • Take down a 50- or 100-unit apartment personally (not syndicated) ([41:02]).
2. Most Impactful Book?
   • Who Not How by Dan Sullivan ([41:42]).
3. Most Interesting/Expensive Mistake?
   • Overconfidence leading to purchasing poorly analyzed, time-draining flips ([42:28]).
4. How Do You Enjoy Life?
   • Staying active (ex-division 1 soccer player), traveling, team-building trips, preparing for fatherhood ([43:22]).

How to Connect with Tommy Harr

• Instagram: @tommyhar05
• YouTube: Tommy Har (search for long-form, in-depth content)
• Open to questions, joint ventures, and connecting with potential private lenders.

Inspirational Closing

"You can definitely do this stuff... It's not going to happen overnight, it's not going to happen in 90 days, it may not happen in a year. But if you look back, if you try every day and for five years, you look back, you'll be like, holy, I'm so happy I did this... Real estate investing is absolutely life changing. It's going to change your family, your family tree, and your finances. So I encourage you, if you're in that position, keep at it. It's worth it."
— Tommy Harr ([44:18])

For anyone new or seasoned in real estate investing, Tommy’s story is a testament to relentless learning, strategic pivots, and the power of perseverance. His practical insights on wholesaling, private money, and the BRRRR method are worth replaying and applying.