Brody Fausett accomplished something that many people only dream of. He built a passive 6-figure business in real estate investing, establishing himself as a financial powerhouse by the time he was in his mid-twenties. Known with his wife Andrea as the Flippin’ Fausett’s, he manages his growing real estate business by using creative strategies to buy homes, fix them up, and then rent them out to earn a passive monthly cash flow. He now teaches other people how to obtain a 6-figure salary through passive income using the exact same strategies that have worked so well for him.
As Fausett explains, it is a process of trading active income, like from a daily job, for passive income, the type of money that is made while you sleep. Fausett shares his personal story of success to inspire others to pursue their own long-term source of passive income. He also shares his mistakes, because as he says, people need to know what not to do as well.
Fausett is from Utah and attended college at Southern Utah University, where he started out studying to become a dentist. After working in the summertime doing door-to-door sales, he soon realized that he was more entrepreneurial-minded and switched to studying business. Fausett started his investment career in real estate in those early years of college, purchasing his first home. He lived in the home and rented out the rooms to his friends, and after a short time realized he was making enough to cover the mortgage, live rent-free, and put money in his pocket. This is what really opened his eyes to the power of real estate investing.
Fausett refers to this as money that is earned whether or not you clock in for work that day, or in other words, passive income. The process he used starting out is called house hacking, and according to Fausett, is one of the easiest, low-cost ways to get into real estate, with the highest chance of a large return. He explains that the process is not actually difficult, most people are just not taught to do it, so they simply need direction and guidance to understand just how profitable and simple these decisions can be.
House hacking works because it is essentially a way to get other people to pay your mortgage. It also allows you to purchase a home with an extremely low down payment because you will be owner-occupying a portion of the property. The process requires some research and education; Fausett breaks it down for us in a few basic steps:
- Find a property to purchase, this can be a property with multiple bedrooms, or even a second kitchen or casita attached to the property. A duplex, triplex, or even a fourplex can also be a lucrative option. The key is to purchase this property with a lower down payment in order to recoup that money as quickly as possible thus getting a high return.
- Then while you live in a part of the house, find people to rent out the other rooms or units, making sure to charge enough to cover the mortgage, account for utilities, upkeep, and repairs on the property. This may involve you sacrificing and living in the smaller, not as nice unit or bedroom in order to collect the highest amount of rent possible.
- After a short time, you will see that the money from rent covers the mortgage and puts money in your pocket. Save that money and you will eventually have enough to put down on another property and do the same thing over again, building up more passive income as you go. Keep in mind that when you move out your space becomes available for you to rent out and allows you to collect even more money in rent and build an even larger amount of passive income.
Fausett started with this same approach and eventually scaled it to 6-figures of passive income while in his mid 20’s. He continues to grow his investments in real estate by purchasing homes that need repair, flipping them, then turning them into long-term rental properties and additional passive income.
Fausett shares that passive income will change your life, for the rest of your life, and runs a program dedicated to helping people reach the point where passive income funds their current lifestyle and retirement. He does this in several ways, partly through the content he shares on social media, and via a brand new program he has created, The Real Estate Investing Playbook. There is no time like the present to change your life for the better with passive income. Connect with Brody Fausett on Instagram to learn how you can create financial freedom through passive income.