
Welcome to the Real Estate Investing School Podcast. If you and your partner are in real estate, this episode is a must listen! In this episode of Real Estate Investing School, we get to dive deep with our very own Brody and his wife Andrea, a power...
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A
What's up, guys? Welcome back to another Real Deal episode of the Real Estate Investing School podcast. We are stoked to jam today. This is going to be fun. So, as you guys know, this is kind of down and dirty. One deal we talk about to kind of extract the. The good nuggets that you can take and apply to your own investing. And there's so much, so much power in just diving into one single deal and finding out what someone did, like how they found it, how they funded it, and ultimately how they forced it or got creative to make it a really good deal. And as you know, learning about these deals, you're able to take those things and then go and apply them for you. And so this one is going to be a special episode. And the reason it's special is because our guest is no other than the Andrea Fawcett, my beautiful wife.
B
And he has to say that, but I better be the most special guest.
A
You know, you're definitely the most beautiful. And we'll go with special as well, whatever that means.
B
Thanks, babe.
A
You're welcome. I'm excited. We are actually traveling a ton this month, and so we're all over the place. We're in and out of the country, and we're about to be out of service for a week. We get to spend some quality time together. And so I thought, none other than Andrea Fawcett just to jam on a deal that we've done that our family's done that's really helped us out. And I. I gave her some options to choose from, and I think she chose one.
B
Yeah, I think today we're gonna jam on our farmhouse flip that we did. And we. We honestly, I'm like, okay, which one are we gonna do? Because we've done a lot of deals, but the farmhouse one is fun because it was kind of a unique situation for us. We had been house hacking, so, like, moving from house to house, making it a rental, saving money on the down payment by only having to put down three and a half percent because we were living in it. And I was like, okay, we've been doing this for a while. Like, we've got a kid now. I would like to live in a little bit nicer of a house and just, like, make it our own. But we knew we didn't want to buy, like, a cookie cutter, whatever what everyone was buying around us that they were going to be stuck in for the next 15 years. We're like, let's find something that we like that we can put some, like, TLC into. Because we're, we're really good at that and. But like, have it be a nice home that we really love and enjoy being in and that we're like increasing our value and helping our future, but also living in a pretty nice house.
A
And I actually love that you chose this deal to talk about because most of the stuff that we buy we actually keep, as you guys know. Like, we're, we're cash flow investors. Like, we, we obviously love appreciation that comes from real estate, but honestly, the freedom that we've experienced in our life comes from, you know, people paying rent every single month and we pay the expenses and what's left over is what we use for our lifestyle. And so what's so cool about this deal is it's actually not one of our buy and hold investments. And I also love that you chose this because a lot of people, we hear house hacking all the time and we talk about it a lot and we talk about house hack hopping a lot, which is so good. But this is unique because it's another way to be smart about investing in real estate and buying your, your home or your dream home. Because at the time we thought it was going to be our dream home, right?
B
Yeah. And I mean, it was, it was something we were super excited about because we've been living in like, smaller homes that we were buying with the intent, not even smaller, but just homes we were buying with the intent to rent long term to renters. And so it was just a different style of house that we'd been buying previously. And this one, it was like, okay, like, let's find a house that we can make our own that we'll really, really love. And that has a lot of features. We like, like a big yard, a nice neighborhood, like a beautiful looking home. And so there was actually this home on the market that we had been watching and. Oh my gosh, babe. How much was it at the time? This was what, how many years ago? Five?
A
It was a lot more than that, I think. Six, probably. Maybe six. Six years ago, maybe?
B
Yeah, probably six years ago. And there's this home on the market that was in the neighborhood we really wanted to live in, the town that we were in. And it was like listed for, I don't know, 379,000. What was it? 279. 379. I don't even remember.
A
It was, I want to say it was like 340 is what it was listed at.
B
But like, it was, it was up there. We're like, okay, like, we could go build a $500,000 home, $400,000 home. Or we could like, buy something like this that we really, like, has really good bones and. And move forward with it. And so we actually sat and we were watching this home on the market because it just kept sitting. No one was buying it. And the inside was actually fairly nice. It was just like, all really dark and brown and dated. And so was the outside, but it had the huge yard, garages, like, everything that we had been living without essentially up to this point. And so we watched it for a while, and it was finally where it had been on the market long enough. We're like, you know what? Let's just put an offer in and see. And so I don't even remember what we got it for anymore.
A
I want to say we got it for under. Under 300,000.
B
That's right.
A
Because kind of what had happened is. And this. Our whole thing, we're like, we could have afforded it the way that it was, but we knew, okay, we want to put money into it, and we want to actually make sure there's enough margin that when we put money into it, we're going to actually get money out of it, meaning we're going to be able to build equity within that house. And so I think what happened is they. They kept dropping it by, like, $10,000. $10,000. And finally we're like, okay, this makes sense, because It's. It's under 300,000, and if we put, you know, 100 grand into it, it's going to be worth it type thing.
B
Yeah, for sure. So anyways, we ended up getting it, and we were so stoked. Like, I'll never forget. This is actually a random side note, but I remember once we closed, like, we were so excited to move into this house. Do you remember this, babe? We packed up all of our stuff, like, by ourselves. Not really telling anyone, except Brody's friend was with us. Poor guy, he was, like, staying with us, and he got roped into helping us move. And I just remember, like, moving mattresses and dressers and everything up the staircases in the house because there was an upstairs and a downstairs. And like, midnight, just the two of us and Ray, we had, like, put our daughter down to sleep in the house, and we were just stoked out of our minds.
A
It started raining, too. I don't know if you remember that. Our mattress started getting wet.
B
I do remember taking the box spring. We had a box spring that needed to go downstairs. And the stairwell, well was, like, skinny. And so Brody grabbed the Chainsaw and cut the box spring. Do you remember that?
A
Yeah, it was a sawzall, but yeah, I had to cut the box spring in half to get it through.
B
Then we screwed it back together. Do you remember that?
A
Yeah, it was a guest bedroom, so if anyone stayed there and it was a little squeaky, that's why.
B
Oh, man. But anyways, we decided to do a live and flip. I always joke that, like, the first half of our marriage, like, we should have just lived in construction hats because that's all we were doing is remodeling. But we did this live and flip. We actually had the basement remodeled prior to us moving in, and we did some of it. And then we hired out things, and a lot of the things we hired out.
A
And we were upstairs.
B
Yeah, we were upstairs. Excuse me. We were upstairs and we were remodeling the basement because we were like, okay, we'll remodel the basement while we live upstairs, and then we'll move into the basement while we do the upstairs. And the kitchen was on the main level, so the kitchen. I'm like, when we remodel the kitchen and stuff, we will just use a crock pot wherever we're at and make it work. We've done it before. And so we. I mean, I always wonder, like, what things do you hire out? What things do you not? And we get asked that a lot. And I think a lot of it depends on, like, your time, your willingness to learn. And like, if your time is spent making more money doing something else and you can hire it out and make more money working, then, like, that's a great thing. But if you're just going to come home and sit on the couch and you could be getting stuff done, then that's probably, like, a good thing to pay attention to.
A
Yeah, 100%. And I think, I think just like reiterating, if you're in a spot where, as someone explained it to me, the treadmill of life, like, you're always trying to keep up, you make more money and you, like, you increase your expenses. But it also was explained to me in the form of purses. And I've shared this analogy a couple different times, but I, I don't know all the names of the purses, but all I know is if your, your spouse or your wife gets a, a nice purse, she's not going to go back to, like, the Michael Kors purse ever again. And so it's like you have to almost pay attention to how, like, you upgrade and how quick you upgrade. And so for Us like, it was this, this time we're like, house hacked. House hacked. And got into like a little bit nicer of a house, a little bit nicer of house. And then this was like another step up without going to a brand new house, brand new build that we were going to probably, you know, lose money on buying it right off the bat. Instead, it was kind of like, okay, we're, we're leveling up, we're getting a nicer purse, but we're not going straight to the Louis Vuitton or whatever. I don't know. And so anybody that's in that situation or it's awesome because we talk about, on this podcast, how do you find, fund and force the deals? And when we talk about finding this, I mean, this was just on, on the mls. But one thing important to, to kind of keep in mind is you have to look at it a different way. And we say this all the time. There's so many different deals out there that are just sitting on the market that somebody's looking at, at face value, thinking like, okay, this is overpriced and you might come in and be able to put, you know, a different lens on or, you know, you have your, your deal goggles and you can see, okay, no, I can actually do this, this and this. And it's, and it's going to be a really, really good deal. And so I think that's part of, with this house. Like, we knew, okay, we could take this. We knew we wanted to paint the outside. There was this wraparound porch. It was on a corner lot, big backyard. And so we saw all the character in it. And so I would just say if you guys are looking, you're in that situation, you're looking for a spot. Like, start looking for something like that. And I think we'll get into this on the funding side too. But yeah, I'll save that for the funding. I have a comment for that, but anything else to add as far as the overview of this right off the bat?
B
Yeah, I mean, on what you were saying, like, if you're not following the market, it's hard to know, like, what a good deal is and when. So just making sure, like, you're always on Zillow or the MLS and you're always looking at things like, creatively, not like, oh, it's so dumb. It's overpriced. It's like, like, well, could this work? How would this work? Like, don't be close minded to deals or you're never going to get one. You Got to be creative and open. Because it's funny, when we bought the house, like, now the market we're in is way higher, right? The house is appreciated because that's what real estate does. But, like, when we bought the house, everyone's like, the market's so high. The market's so high. Like, if you're sitting here saying, I'm not going to buy because market's higher, interest rates high, like, there's always one or the other that you're going to be saying. So you just need to start making sure that, like, the numbers make sense. And then it doesn't really matter any of that, because all that matters is, like, cash flow, potential earnings, etc. But yeah, I would just say for doing the remodel, like, for the basement, we. We ended up. I remember doing the tile myself. We added in, like, a little kitchen bar downstairs because we could. And we knew that was an easy way to add more value to the basement. I remember tiling that. I remember taking out, like, learning how to tile. Do you remember YouTubing that one?
A
And.
B
And we YouTubed and tiled that. But then we, like, hired out painting.
A
Because we got in, like, a competition of who. Who could lay the straightest tile.
B
For sure. Mine was the straightest. And then, like, we ended up hiring out the painting because that's something we always hire in the. In the text room. We have a guy that's done it for us for a lot of years, and it's like he can do it faster and for a better price than we could do it. But that's kind of what we use back and forth to decide. And then even in the bathrooms, like, I remember we kept an existing shower in the basement, but we retiled the kitchen floor and added a new vanity. Vanities are, like, so inexpensive to upgrade. I feel like every. Like, you can get such a good vanity on Wayfair or all modern for not that much money, and then just add in, like, a fun mirror and it adds so much. Like, upgrades the home so much without costing that much money.
A
Yeah, we did. We did little things, too. Like, remember wallpaper? We had that whole back wall was wallpaper that, like, popped and then just little things, like, just paint goes a long ways too. Remember we painted that the office doors black with the windows in the middle.
B
And Brody found, like, a new slider door that we put in on, like, KSL for like, a couple hundred bucks, and it fit perfect. Do you remember that?
A
Oh, yeah. That was sweet. Yeah, it was. It was. I don't know, it's probably, like, a $5,000 slider door and got it for a couple hundred bucks. It was brand new, and. And we made it fit in the. In the back.
B
Do you remember Brody? Like, so when you first walked into the house, there was, like, a walkway that went right above your head. And before we bought the house, I'm like, I'm only buying this if we can remove this, because I want it to be, like, a vaulted, open staircase. And they're like, I don't know. I don't know. So we had an engineer come look before we bought the house, and he's like, I think you'll be good. So then we, like, removed that, and it sounds like, oh, my gosh, you removed the ceiling. But, like, it was actually so easy to do, and it changed the entire look of the house. So just, like, walking in and being creative, and we ended up just painting the kitchen and adding new countertops. We didn't replace the cabinets because there were a lot of cabinets. It was going to be super expensive, and we knew, like, we wouldn't see that return back, so we didn't do that. We actually combined two bedrooms to make a huge master and master bathroom. Because the house had a lot of bedrooms. It was one of those older styles where there's, like, tons of bedrooms, but they're all, like, smaller. And I'm like, okay. People would rather have five bedrooms and have one huge, beautiful master than six bedrooms, you know?
A
Yeah. And a lot of this stuff, too. I mean, we were. We were obviously on a budget for so much of it, and so we just got creative and hired a handful of people off of Facebook Marketplace that were looking for work.
B
Yeah, some of them were a little sketchy, but we got the job done.
A
Yeah, we have some crazy stories of that later, but for the most part, we saved some money, and at the time, it was like what we. It was like what we were doing to hustle and get creative and get ahead. Now, we probably wouldn't do that. We just hire someone that's gonna get it done, that's gonna show up on time and has the track record and all those things.
B
Well, and that's pretty much what we did in Hawaii, you know, for that house. It's like, at that point, it was like, okay, let's hire it out. We're not going to be doing a lot of the work ourselves, where originally, like, years ago, we would have been doing a lot of the work, you know? So it's just, like, going through each season in each Level. But I mean, the house, when we were done with it, the farmhouse was beautiful. Like, I still love that house. And I would still move it to that house. Honestly, it's so beautiful.
A
Yeah, me too. It was awesome. And I think just to kind of give you context of the house now, I think it's actually for sale. I don't know if you saw it. I think it's listed around $800,000 right now. Yeah. So we just. So you guys understand the numbers, we live there for two years. And the reason we live there for two years, most of you probably know if you live in a home, it's your. You owner occupy it for two of the last five years. When you sell it, you can avoid capital gains tax. So that's obviously a big deal. If you're making a couple hundred thousand dollars, you don't have to pay taxes on it. Which is, which is a whole another reason why this strategy is really cool and different and unique. And even though we push so much like, hey, never sell properties, there's some like in this one, it wouldn't have rented. It would have rented. We would have cash flowed. But it's not as quality of a deal that we usually do on our cash flow deals. So it was made more sense for us to sell the house and take the money from that and roll that into another project. But do you remember what we ended up selling it for and the total profits and what we spent on the rehab?
B
You know, we should have looked this up before. I was just barely trying to find it on my phone while you were talking. I think we ended up putting like 80,000 into it, I want to say. And we also Airbnb it during the summers when we were gone. Do you remember that, babe? So we would like flip our house to be an Airbnb because we'd be traveling in the summer, and so we would Airbnb it the whole summer, which made a lot of money. It did really well as an Airbnb now. Something I'm probably not willing to do, to be honest, because it's so much work. But for then, it was worth it because it would cover our more than cover our mortgage and make us money while we were gone out of the house too.
A
Yeah, absolutely. I think. Do you remember the profit all said and done? It was a couple hundred thousand bucks, which was, which was awesome for us. Yeah, it was a, it was a big deal, like for something we, we put a lot of like our energy into and time into and, and $80,000. Rehab might sound Like, a lot to. To some of you, might not sound like very much to others of you, but we made that $80,000 stretch, and it was over time, right? It was while we were living there. It wasn't just all up front. And so to hire all that out probably would have cost maybe, you know, $150,000 at least. But we were able to do it because we put some sweat equity into it for sure.
B
And I feel like, too, we were able to, like, really enjoy the house. Like, even though we were remodeling it, we did it in phases, so it wasn't like we were always just, like, living miserably and doing it smart. And, like, we were still to host parties in our house and, like, entertain and have friends over. And that was like, the first time where we really had the space in the house to be able to do that. And I remember that was something that was, like, important to both of us. So it was so fun to be able to do that while we lived in that house and have birthday parties at our house because we had a big yard and a big kitchen, and, like, it was just. It was what we wanted, you know, so it was really cool to be able to have that and then also make money from it. And when you remodel a home, like, you're able to make it your own, rather than just buying, like, a stock home that's built where you're like, I kind of hate the cabinets, but I. If I switch those out, I'll lose money or it's not worth it. Like, every piece in the home was. I got to, like, choose. And so it was so special and so unique, which I really loved.
A
Yeah, another crazy thing, too, which it was in my neighborhood that I grew up in as a kid, so, like, probably within a mile from a house that I lived in when I was, I think, I don't know, three years old to when I was, like, 11 maybe. And so it was just crazy seeing all the people, and that was now our neighborhood. And they're like, oh, that's little. Little Brody that now lives here. But diving into, like, the funding of it, and this is an interesting part. And as you guys know, like, the way you finance a property makes or breaks everything. It's. It's so important. And this one. And this is another reason why this is a cool and unique strategy to maybe look into or to check out is the way that you can fund it. And for us, we bought this as an owner occupied home, right. Because we're going to live in it and work on it while we were living there, we could qualify for a lower down payment.
B
Yeah. Do you want me to keep going on that or.
A
Well, we put three and a half percent down, I think at the time. Right. Which, which I got this is. I just, I'm so passionate about figuring out ways to leverage. You know, you think about it like, real estate's all about leverage. And most people, when they think of like, oh, I need to go buy a house, you know, initially, like, my first house I ever bought, I thought, okay, I need, I need $165,000 cash to buy this house. And that's what I thought until I realized, like, oh, no, the bank will actually finance that for you if you put down a down payment. And so a lot of people even then, they never get into real estate and owning rental properties because they're always concerned, like, I don't have enough saved up for this down payment. And so leverage is the name of the game. And one of those ways where you can leverage your money or use a certain strategy is just living in it, you know, qualifying for that primary residence loan.
B
Yeah. And I think it's. I mean, everyone's listening to this at different phases in life. Obviously, if you're further along in life, it's going to be harder. It's like, oh, I'm not going to uproot my kids. I'm not going to go move into this tiny home or whatever, you know, but it's like, hey, this wasn't a tiny, crappy home. This, this was a nice home. Like, yeah, maybe it's a downgrade from where you're currently living, but if you're a slave to your house that you live in or the car that you drive, then like, yeah, would you rather live in a house that's maybe not as nice, but you can, from that house you can get freedom to get the nicer house and not be a slave to it. And so I think that's just like a way that I love to look at it is I remember, like, during that time, I mean, Brody was doing sales, so he was, he was making decent money during the summer. And a lot of our friends were buying like those at the time. It was like the 350 to 450, 000 homes. And they were like cookie cutter living in, living in it. And they're probably living in it for the next 10 to 20 years and probably still living in it now, which is fine. But at the, like, I was like, okay, we're willing to Sacrifice and live in the less nice home now, knowing that we're setting ourselves up for future success and also knowing that you don't have to do that forever. Like could we still do that now and make money and yeah, but like at the same time as you progress, we're at a different point now where I'm like, okay, the nicer home is important to me because of the environment and our businesses and what we do. But it's just like all a process and moving through it. And I mean it's been what we've almost been married nine years and it's just crazy to see how fast financial freedom can come from a few years. Like every time we did our goal setting retreats, we do them once a year. We actually have more coming up on that soon if you want to join. But it's like we would make a goal year three and we would think it'd be our 10 year goal. And by year five, we were surpassing it. And it's just like once you start, once you dip your toe in the hot tub, you're going to want up to your knee and then you're going to want up to your waist and then you're all the way in, you know, but like it's just slowly getting into it and that's how you're going to see long term success. And it's possible for anyone, but it really does. I mean it changes your life.
A
Life. Yeah. That was so good, babe. I love that you said that. And now you guys know why I married her. So, so good. Just like that last, that last two minutes I think, I think is just straight gold. People need to go back and listen to that. But I think it's also interesting we have this joke where like I haven't ever bought a vehicle that I've lost money on. Actually there's been one that I bought brand new and had it for like a month.
B
He owned it for like two months because he just likes to switch it up, quote unquote. I'm like, oh my gosh.
A
Okay. But the last truck that I bought brand new is worth, I don't know, $20,000 more than what I bought it for, brand new. But the moral of the story is like I've always done this like growing up just I'll find a good deal on something and then maybe I'll put new tires on it or I'll fix it up or whatever. But it's the same thing with our, our homes. Like obviously they're appreciating, you know, and most vehicles do depreciate. But even now, like the stuff that we have, the how homes we live in now, like that money, you know, we bought some investment properties with it, and then we went and did the same exact thing for our next house. Lived there for two years. And then we, we made a couple hundred thousand dollars on that as well when we went and sold the next one. And so I think it just, it starts to compound. And we didn't use that full hundred thousand, couple hundred thousand dollars to go put that down on our next house. We put that down on, you know, a rental property or two. And then we were able to get into another house, you know, using a low down payment. And then that house appreciated. We were in there two years, didn't have to pay taxes on that. And so I think it's just understanding, hey, am I buying this house, you know, as an investment for financial reasons, or am I buying it as an investment for, you know, my family? And I think there's ROIs on money and there's also ROIs on just quality of life. But I think if you can kill two birds with one stone, which is exactly what Andrew was saying, exactly what we did in this situation, then it's something you should definitely look into and, and check out.
B
Yep. Be willing, you know, to, to sacrifice. But also you don't have to live miserably. Like, I'm. I feel like we've lived a great life leading up to this point investing. And if you find yourself looking at the market and you're like, there's no deals, it's horrible. There's nothing. Like, it's probably more of an attitude lens shift than it is a market shift. Because if you feel that way now, you're always going to feel that way. And one of our favorite things is to, like, find deals in places where people say there's no deals, and there's always a deal, and there's always a way to make money off of any market anywhere. And I truly believe that. And if you feel differently, set us a market and we'll take it as a challenge and do it. But for real. Love me a good challenge. But yeah, that's also why there's the school, like, I'll put the plug in for Brody, even though he's sitting here. But it's like, if you're like, I don't know what I'm doing, then stop saying you don't know what you're doing and take action. Right. The only way to move forward is to take action. So what can you do to learn more? And that's exactly why we built the real estate investing school is so that way, people that don't know what they're doing can know what they're doing. If you want to get to where you're going and you want to get there fast, hire a coach. I coach fitness. Whether it's fitness or real estate or anything, gymnastics, skateboarding, surfing, like, whatever it is, if you want to learn, you need to learn from someone who's already done it. Like, why try to learn without doing that? And I think that's the power in finding a coach, having a school that's like, hey, yeah, this. These are my goals. Like, now let's go actually get there instead of just talking about it, you know, like, let's do it. Why not? Why sit and wait when you can change your life right now? Because the time will never be perfect, I promise.
A
Just full of gold nuggets. So good, man. You're awesome. I love it. Yeah. There's a difference in information and implementation. And information is a course that you buy. It's listening to this podcast, it's consuming content on Instagram or YouTube, and you can get so much value from it. So much value. But what you'll realize is you'll get to a point where there is always going to be information and there's so much of it, and you just don't have enough time to consume it all. And so then it comes to realizing that I need to figure out ways to spend more time implementing things and less time just learning about them and getting information. And so, yes, that's exactly what we do in real estate investing school is we help you implement those things. And. And that's like. I would say that's one of, like, the hacks that we've figured out in the last little bit, huh? Even just with, like, learning new, new skills. You mentioned, like, surfing and. And skateboarding and, like, Hugh Tech, like, whenever you're learning something new or you want to get better at something, instead of just saying, I'm gonna go research it, ask yourself, who can I hire that's going to help me implement this? Because they hold you accountable. They hold you to the fire. You have someone that's, you know, a team all of a sudden now to go build your success. And like you said, they've been there, they've done that. They know how to do it. They take out the guesswork of just kind of spray and pray and hoping that, you know, you're going to learn something and it's going to work and you're not going to lose a bunch of money.
B
Yep. Investing in yourself is investing in, like, your future quality of life. And so just always being willing to, like, you know, ask yourself that when it's like, oh, it's a lot of money, or, oh, this or that, it's like, well, you're probably going to spend it anyway somewhere else. So just budget so you can spend it to improve your life. And I don't think you ever have to feel bad about that one.
A
Absolutely. Well, thanks, babe. I'm trying to think. I think we covered pretty much everything we went into how we forced this deal, talked about how we funded it, how we found it, and any. Anything else you want to add as far as. Well, I'll let you say what you're going to say and then anything that you think that somebody might need to know that's setting out to do something like this.
B
Well, I was just going to say, when this episode goes live, I think you should post pictures on Instagram because I think people would love to see it.
A
Yes, we can absolutely do that. That'll be fun. We'll do it. We'll add some pictures. We'll show you some before and some after. I think we have this video of Ray. She's. She's holding, like, the trowel that we were using for. For tile something. And she thought it was a phone and she was just talking through it.
B
Yeah. But, yeah, I would just say, like, you know, wrapping it up, like, just like anything in life, once you're willing to be like, hey, I'm the one in charge, it's all on me. It's not on the market, it's not on my spouse, it's not on anyone else. I can take absolute ownership. Then that's like, the best way to move, to move forward. And I think it's like, an exciting thing to think about is like, I get to create the life I want to live. I get to create the passive income that I want to create. Like, I have the power to, like, live that dream life. And I think once you start tasting it, you realize just how possible it is. And it's the most exciting, freeing feeling in the world. And I really, truly believe it's possible for anyone. And if you feel like it's not possible for you, or you don't know what you're doing or you want it to be real estate, sign up for the school, come join us and yeah, like, let's do it.
A
Let's do it. Where can we find you and learn more about you if people want to connect with you?
B
So I'm usually at my house or. No, I'm just kidding. Yeah, you can follow me.
A
Can we get your address, your phone number?
B
You can follow me on Instagram, Andrea Fawcett. Or if you're into fitness and you're a woman, you can follow me at mamalayfit. And yeah, come say hi.
A
She's insta famous, guys. She's kind of a big deal. Thanks, babe. So glad we were able to do this. And thank you guys for tuning in. We will catch you on the next one. Sa.
Real Estate Investing School Podcast - Episode 226: REAL DEAL: Leveling Up in Life with the Fausett's
Release Date: January 9, 2025
Host/Author: Real Estate Investing School
Title: REAL DEAL: Leveling Up in Life with the Fausett's
In Episode 226 of the Real Estate Investing School Podcast, hosts Brody (Speaker A) and his wife, Andrea Fausett (Speaker B), delve into their personal journey of leveling up their life through real estate investing. This special episode focuses on a unique farmhouse flip that not only enhanced their living situation but also significantly contributed to their financial freedom.
Brody introduces the episode by emphasizing the power of dissecting a single real estate deal to extract valuable lessons applicable to listeners’ own investments. He introduces Andrea as a special guest to discuss a family project that has been instrumental in their success.
Andrea explains their transition from house hacking—where they lived in properties while renting out others—to seeking a more permanent and personal residence. They aimed to find a home that wasn’t a "cookie cutter" property, allowing them to add personal touches and increase its value over time.
"We wanted to find something that we like that we can put some TLC into... a nice home that we really love and enjoy being in."
—Andrea Fausett [02:33]
They meticulously watched a farmhouse listed around $340,000, which had been stagnant on the market. Recognizing its potential despite its dated interiors, they saw an opportunity to purchase it below market value after several price reductions.
"We got it for under $300,000 because they kept dropping it by like $10,000 each time."
—Brody [05:11]
The Fausett's leveraged an owner-occupied loan, allowing them to secure the property with a low down payment of approximately 3.5%. This strategy enabled them to minimize upfront costs and allocate more funds towards renovations.
"We could avoid capital gains tax by living there for two of the last five years before selling."
—Brody [15:30]
They highlight the importance of understanding leverage in real estate, noting that many potential investors are deterred by the perceived high entry costs. By occupying the property themselves, they not only reduced the down payment requirement but also positioned themselves advantageously for future financial benefits.
Upon acquiring the farmhouse, the Fausett's embarked on a comprehensive remodeling project. They adopted a "live and flip" approach, renovating parts of the house while residing in it. Key renovations included:
Basement Remodel: They focused on updating the basement before moving in, allowing them to live upstairs while working on the lower level. Andrea personally handled tiling, adding a kitchen bar to increase the basement’s functionality and value.
"We ended up doing the tile ourselves and hired out the painting because that was something we always hire in the trade."
—Andrea Fausett [10:20]
Kitchen Updates: The kitchen received new countertops and painted cabinets instead of replacing them entirely to manage costs while enhancing aesthetics.
Structural Changes: They removed an obstructive walkway to create a more open staircase, significantly altering the house’s interior layout.
Cost-Effective Upgrades: Small investments like new vanities and slider doors were implemented to modernize the home without substantial expenditures.
"Vanities are so inexpensive to upgrade... and add in a fun mirror and it adds so much."
—Andrea Fausett [11:27]
Throughout the renovation, they balanced doing some of the work themselves to save money while hiring professionals for tasks that required expertise or were time-consuming.
After investing approximately $80,000 in renovations over two years, the Fausett's sold the farmhouse for around $800,000, yielding substantial profits. Additionally, they leveraged the property as an Airbnb during summers, which not only covered the mortgage but also generated extra income.
"We made a couple hundred thousand dollars, which was awesome for us."
—Brody [16:47]
This successful flip allowed them to reinvest the profits into new projects, perpetuating their cycle of growth and financial independence.
The Fausett's transitioned from traditional house hacking to purchasing a primary residence that doubled as a long-term investment. By living in the property, they secured favorable financing terms, demonstrating a strategic blend of personal living and investment growth.
"Leverage is the name of the game. You can use strategies like qualifying for a primary residence loan by living in the property."
—Brody [19:28]
They emphasize the importance of viewing the real estate market through a creative lens—seeing potential where others see obstacles. By continually monitoring the MLS and being open to unconventional deals, they identify opportunities that align with their investment goals.
"There's always a deal, and there's always a way to make money off of any market anywhere."
—Andrea Fausett [22:36]
Maintaining a balance between personal life and investment activities was crucial. The Fausett's managed to renovate the farmhouse in phases, allowing them to enjoy the house and host social gatherings even during the remodeling process.
"We did it in phases, so it wasn't like we were always just living miserably and doing it smart."
—Andrea Fausett [17:30]
The hosts discuss the critical distinction between acquiring knowledge and taking actionable steps. While consuming information through courses, podcasts, and social media is valuable, actual implementation is what drives success.
"There's a difference in information and implementation. Information is a course you buy... but the key is to spend more time implementing and less time just learning about them."
—Brody [26:30]
They advocate for investing in mentorship and coaching to bridge the gap between knowledge and practical application, ensuring that investors can effectively execute their strategies and achieve tangible results.
"If you want to get to where you're going and you want to get there fast, hire a coach."
—Andrea Fausett [25:50]
Andrea and Brody conclude the episode by encouraging listeners to take ownership of their financial futures through proactive real estate investing. They stress the importance of mindset, creativity, and willingness to take risks.
"You have the power to live that dream life. Once you start, you're going to want to keep moving forward."
—Andrea Fausett [22:36]
They invite listeners to join their Real Estate Investing School for further guidance and support, emphasizing that with the right mindset and resources, financial freedom through real estate is attainable for anyone.
"Stop saying you don't know what you're doing and take action. The only way to move forward is to take action."
—Andrea Fausett [24:53]
Episode 226 of the Real Estate Investing School Podcast offers a deep dive into the Fausett's successful farmhouse flip, highlighting practical strategies in finding, funding, and refurbishing a property to achieve both personal and financial growth. Through their authentic discussion, they provide valuable insights for aspiring real estate investors, emphasizing the importance of creativity, strategic financing, and decisive action in building a prosperous investment portfolio.
Listeners are left inspired to evaluate their own investment approaches, adopt a proactive mindset, and leverage available resources to accelerate their journey towards financial independence.
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Join the Real Estate Investing School to transform your investment strategy and achieve financial freedom.