You “need money to make money…” False.
Brody Fausett, an entrepreneur who grew a 6-figure passive income through real estate investing while in his 20’s, shares his expertise to help other people live more fulfilled lives through his Passive 6-Figure Game Plan.
The objective of Brody’s program, Real Estate Investing School, is to help people build passive monthly cash flow that maximizes a cash on cash return. The 6 strategies of Brody Fausett’s Passive 6-Figure Game Plan are as follows:
- House Hacking – This is when you purchase a home and get other people to pay the mortgage. The purpose of this strategy is to take advantage of an “owner-occupied loan” which allows you to buy the property with a 0-5% down payment. One example of this is living in one bedroom and renting out the rooms you do not need. Another example is buying a duplex, triplex, or fourplex and living in one of the units while renting out the others. Eventually, you will be able to live for free and pocket extra cash. Once you move out you will be able to rent out the space you occupied and will be able to cash flow even more money.
- Partner – Once a few properties are earning passive income, it is time to seek out a partner, find someone who has money to invest, but does not want to do the day-to-day of managing the property or lacks the ability and time to find the right cash flowing property. This is a great way to build passive income without using your own cash to finance it. Despite what most people think, partners with cash to spend are extremely easy to find if you have the right deal.
- Investment Loan – This strategy involves getting a traditional investment loan or mortgage through a bank. These loans cost more upfront to get (typically a 20-25% down payment), however, once a person reaches a certain income point, the cash flow from the other properties add up each month and it can be easy to fund the down payment of an investment loan.
- House Hack Hopping – The next step is the process of getting a second property once the first property starts earning passive income and then doing the same thing over again. This is a process that Fausett advises to do as many times as possible. There are certain regulations that will typically require you to occupy your first property for a minimum of one year before you are able to “hop” into your 2nd property.
- BRRRR – Buy, Rehab, Rent, Refinance, Repeat – This phase is exactly what it says and after a short time this will generate a solid flow of passive income. A big thing that makes this strategy so special is the third R, Refinance. During this phase an investor can typically recoup all of the money that they put into the property including their down payment and Rehab costs. This strategy makes it possible to scoop up another passive income producing property using $0 of one’s own capital.
- Seller Financing – This stage involves purchasing additional properties through seller financing. This is when a seller of a home is willing to privately finance the sale without the usual credit checks and red tape that a traditional bank would require. The purchaser pays the seller directly, rather than getting a traditional loan through a bank, and it saves on taxes and fees for both sides. Sellers can still bring in cash flow, and make interest on it, even after selling the home while not stressing about managing tenants. While for the buyer it can provide an opportunity to buy a cash flowing property with a small down payment.
Brody believes that getting started in real estate is not as complicated as many people think, they just do not have the right guidance and information. He works to dispel the myth that someone “needs money to make money”, because he knows from experience that this is not true and wants to help other people discover the shortcut to becoming a real estate investor and living off passive income.
Through Real Estate Investing School, Brody shares his formula for success with those who want to learn more. You will dive into everything you need to know, from starting out, not knowing which property is a smart investment or how to analyze it, to being coached 1on1 on how to build up 6-figures of passive income and being able to quit your day job.
There are additional steps that Brody will coach people through if they have an interest in expanding after they reach the 6-figure mark, and at Real Estate Investing School they work one-on-one with people to guide them step by step to success, starting with developing a personalized plan that will take people from exactly where they are to exactly where they want to go. Visit Brody’s website and connect with him on Instagram to get started with your journey to financial freedom through passive income.