Podcast Summary: Real Estate Investing School Podcast

Episode 23: How to Create Infinite Returns with REIS Founder Brody Fausett

Date: December 13, 2022
Host: Joe Jensen
Guest: Brody Fausett (Founder, Real Estate Investing School)

Overview

This episode features an in-depth conversation between host Joe Jensen and Brody Fausett, founder of Real Estate Investing School, about "infinite returns"—the concept of maximizing returns on real estate investments with little or no money down, creative financing, and leveraging opportunities regardless of market cycles. Brody shares his personal journey, strategies, and actionable lessons, emphasizing mindset, resourcefulness, and customization in real estate. The episode also dives into Brody’s recent move to Hawaii, the details on his latest deals, and the importance of lifestyle-centric investing.

Key Discussion Points & Insights

1. Lifestyle Design Through Real Estate (00:31–03:12, 19:24–22:50)

• Brody’s Move to Maui:

  • Brody describes the slower, more present pace of island life, emphasizing how moving to Hawaii was a long-time goal and is positively impacting his family.

  • Discusses the importance of not letting work completely overtake the enjoyment of living in a dream locale.

    Quote [02:19]:
    “I live in this place where everyone comes to vacation ... and I'm not even making time to go and enjoy it. Figuring out that balance has been really good for me.” — Brody Fausett

• Lifestyle-First Investing:

  • Brody calls himself a “lifestyle investor”—he seeks to fit business into life, not life into business.

    Quote [19:29]:
    “I want to live my life and fit business in around my life versus, you know, live my business and then fit life in around my business. That's just not how I roll.” — Brody Fausett

2. Student Success, Coaching, and Freedom (03:12–05:58)

• Joe highlights student success stories from the Real Estate Investing School, pointing out the contrast between those who actively engage and achieve results vs. those who are passive.

  Quote [04:01]:
  “The ultimate gift... is you can give [people] time and you can give them fulfillment... just enjoying a more quality life.” — Brody Fausett

• Brody reflects on how mastering real estate brings layered life improvements: financial freedom leads to more time with family, more giving back, and overall greater fulfillment.

3. Real Estate as a Creative, Adaptable "Game" (05:58–10:28)

• Both discuss how real estate scratches the “task accomplishment” itch, similar to video games, retaining its appeal even after reaching financial goals.

• The importance of creativity, hands-on skills, and adapting strategies based on both individual goals and changing life circumstances.

  Quote [07:17]:
  “It doesn't matter how successful somebody is... you can get in circles with people doing cool things and learn simply because they love to share their knowledge.” — Brody Fausett

4. The Evolving Definition of a “Good Deal” (10:28–16:13)

• As Brody’s portfolio and net worth have grown, his deal criteria have shifted from maximizing cash flow at lower dollar values (often with more “sweat equity”), to now prioritizing deals with higher returns on both time and energy.

• Cash on cash return and return on energy (“ROE”) are both key metrics.

  Quote [14:34]:
  “Return on energy is the best way to put it. Is this worth the input of energy?... Now a lot of my efforts have shifted. If I'm going to put in my time and go put this deal together, I want to make sure it's done at a high, high level and the return is off the charts for me.” — Brody Fausett

5. Customizing Real Estate to Fit Your Life (16:13–17:53)

• Joe and Brody praise real estate’s flexibility: from hands-on flips to passive, professionally managed units, investors can adapt involvement to suit evolving lifestyles and goals.
• Joe credits investing out-of-state with “forcing him” into a more passive role, which he ultimately valued.

6. Hawaii Market & Creative Dealmaking: Brody’s Recent Burr Deal (18:05–28:15)

• Brody recounts buying his Maui property—

  • Found a “bad listing” with poor photos and little competition but had multi-unit potential (3 kitchens).
  • Negotiated a purchase price of $1M (down from $1.2M), used hard money to close, did $150K in rehab, and the property appraised at $1.55M post-renovation—instantly creating $400K in equity.
  • Used the Burr (Buy, Rehab, Rent, Refinance, Repeat) strategy; will cash out refinance, live for “free” in the main house with studio rents covering the mortgage, plus take cash out at refi even with higher rates.

  Quote [24:47]:
  “End up getting it for a million bucks. It appraises for 1.55 after $150,000 rehab. So if you do the math... there's roughly $400,000 of equity just created in this house.” — Brody Fausett

  Quote [28:15]:
  “You were able to get creative enough to pull out a couple hundred thousand. Like, most people spend a couple hundred thousand to buy a multi-unit in Hawaii. They don't get paid a couple hundred thousand for it.” — Joe Jensen

7. The Power and Pitfalls of Market Cycles & Interest Rates (29:21–38:47)

• Discussion about the viral meme comparing 2021 low-rate purchases vs. 2022 high-rate purchases. Brody emphasizes that creative terms, seller financing, and instant equity can offset higher rates.

• Both agree there’s no “good” or “bad” market—only different environments with shifting pros and cons for buyers and sellers.

  Quote [38:34]:
  “There's no such thing as a good or bad market, just pros and cons... It's always a buyer's market, it just depends on how you approach it.” — Joe Jensen
  “It's always a seller's market, too.” — Brody Fausett

8. Creative Solutions: Partnerships, Seller Financing, & Infinite Returns (32:45–44:29)

• Joe details his own upcoming Hawaii house hack, emphasizing small down payments and partnerships to overcome loan qualification hurdles.

  • Brought in a cosigning partner who gets tax benefits but puts no money in.

• Brody and Joe highlight examples of no-money-down acquisitions, seller-financed down payments, and how high interest rates can actually bring new opportunities for creative negotiations.

  Quote [36:45]:
  “If you can get into a deal, let's say only cash flow is $100 a month because rates are higher right now, but there's an option to buy it with zero down... your return on no money is infinite.” — Brody Fausett

• The importance of persistent follow-up and pursuing deals creatively, especially as market dynamics shift.

9. Understanding the Seller’s Mindset & Structuring Win-Win Deals (44:29–53:06)

• Brody shares why he sold a property $200K under appraisal: tying up equity and uncertainty caused him to prioritize liquidity and flexibility.

• Both stress that “motivated sellers” are often just situational and that finding out what truly matters to a seller enables better deals.

  Quote [49:04]:
  “Even with seller financing... I can easily see why someone would want to do it. You don’t need the money, you don’t want to pay as much in taxes, you want the cash flow, less headache…” — Brody Fausett

  Quote [51:07]:
  “Where do the circles intersect to create the win-win? For me, cash is king...that’s my whole strategy: how to use the least amount of money to build the most amount of passive income.” — Brody Fausett

10. The Importance of Persistence and Prioritization (53:06–54:09)

• Deals appear, “when looking for deals and trying to find properties… is number one or two on my priority list... there’s deals, there's things happening,” says Joe.

  Quote [53:06]:
  “When it’s third, fourth, fifth, sixth down on your priority list, your mindset’s not there. So you don’t see the deal because you’re just not fully in the game.” — Joe Jensen

11. Mindset: Anyone Can Do This (54:34–56:14)

• Both hosts reinforce that “average people” can achieve life-changing wealth and freedom through real estate, regardless of starting point.

  Quote [54:34]:
  “You can do it... [these] are real-life people that are no different from you, that are creating better quality of life.” — Brody Fausett

  Quote [56:14]:
  “It’s so customizable, right? You can make it whatever you want it to be... Even if all you did was get more creative and get a better house for yourself on your next purchase, that's dope.” — Joe Jensen

Memorable Quotes & Moments

• On Bliss & Freedom (58:18):
  “How many days of the year do you feel at bliss? ... Doesn't take money to be blissful... You're reaching your potential, you're maximizing, you're growing... that to me is freedom.” — Brody Fausett

• On Seller Motivation (47:53):
  “All someone has to do is make us an offer... And that's why it's so powerful to put in lots of offers...” — Brody Fausett

Timestamps for Important Segments

• 00:31 – Brody’s island lifestyle and the power of intentionality
• 03:12 – Real Estate Investing School’s first year & coaching success stories
• 10:28 – How Brody defines a “good” vs. “great” deal as his portfolio grows
• 19:24 – “Lifestyle investor” philosophy & intention behind Maui deal
• 22:50 – Step-by-step: How Brody found and structured his Hawaii “infinite return” deal
• 29:21 – Interest rates, market myths, and creative opportunity
• 36:45 – Infinite cash-on-cash returns: Leveraging low/no-money-down
• 42:05 – How market cycles create new paths to win: prices, rates, and opportunity
• 47:53 – Seller psychology: Brody selling below appraisal, persistence in deal-making
• 51:07 – Structuring win-win scenarios via understanding seller motivation
• 54:34 – Empowering the listener: “You can do it”
• 56:58 – Lightning round: Brody’s bucket list, freedom definition, and “broadcast” message

Closing Lightning Round (56:58–60:28)

• Bucket List: Brody wants to “flip a house for a family in need,” inspired by TV makeover shows; hopes to incorporate this into the school’s community.
• Freedom: “How many days a year do you feel at bliss? ... that's true freedom.”
• One Message to the World: “God loves you. He’s aware of you and has a plan for you.”

Final Thoughts

Brody and Joe deliver a highly relatable, actionable, and motivational conversation that demystifies real estate investing, focusing on creativity, problem-solving, adaptation, and above all—the personal freedom and fulfillment it can bring. Through real stories and deep dives into actual deals, they demonstrate that “infinite returns” are not just about the math, but about building a life by design.

[Listen from 19:24–28:15 for Brody’s step-by-step Hawaii deal and from 36:45–44:29 for advanced creative finance insights.]