How to Become a Badass Genius Real Estate Investor

How to Become a Badass Genius Real Estate Investor

Stop letting uncertainty slow down your success. Make up your mind and become a badass genius real estate investor with these five tips!

Badass Genius Real Estate Investor

Uncertainties Abound

As an entrepreneur, there will be a myriad of uncertainties along your journey –  many of them reoccurring. And as a real estate investor, specifically, you may find yourself constantly questioning:

  • Which asset class you should pursue
  • The best methods to find deals (or even how to find deals at all)
  • Which strategy to execute once you do find a deal

This can be incredibly frustrating over time, and if you go too long before getting your first or next deal, you may start feeling like you’re NEVER going to “get started” as a real investor.

5 Ways to Become a Badass Real Estate Investor

Luckily for you, there are abundant solutions for all of the above concerns! I’m prepared to share five of them today.

With these solutions, you’ll have a simple, clear, and easy asset class to pursue. You’ll find discounted real estate and opportunities everywhere, and you’ll be confident in a strategy that works perfectly for your goals.

Ultimately, you’ll finally “get started” and be able to move forward with complete confidence, just as so many of my students have done.

#1: Any Class Will Do. Pick One!

Any class will do.

Let me repeat that: ANY class will do.

They’re all great. Multi-family is great, and it’s extremely hot right now. Storage facility is appealing to a lot of people because you don’t have to deal with real tenants. Mobile home parks, single-family, notes… ALL of these are great.

So the problem isn’t picking a class. In fact, you may have already picked one! And whichever one you picked, I’m sure it will work great for you.

… UNLESS you get distracted by a different class and switch.

badass genius real estate investor

Shiny Object Syndrome

Asset classes tend to bring on what is often called “shiny object syndrome.”

Let’s say you’ve picked multi-family investing. Great!

But then you start actually doing it, and you realize that multi-family investing is… work. A lot of work.

And you notice your friend having great success with mobile home parks, so you decide to try that instead. Great!

But then you find out that’s a lot of work, too.

And then the next workshop or free event comes to town promoting single-family investing and you jump over to that. And once that becomes work, you notice your friend who just bought a new boat and a car and a plane is doing storage facility, so you switch over to that.

In Case You Haven’t Heard, Assets LOVE to Be Shown Off

All asset classes are great, which means all of them will sound sexy and appealing. It can be incredibly distracting, and if you keep class-hopping, you’ll never get anywhere.

So here’s the big secret: All asset classes are great, and all of them are a lot of work.

Just pick one and go deep with it. Acknowledge that it’s going to be hard work and do what it takes to make yourself successful.

#2: Know Your Definition of a Deal

Everyone’s definition of a deal will vary – including yours, over time. There are a few key ways to determine what a “deal” is to you:

Make Cash Flow Your Intent

Always aim to make a stream of cash rather than a pile of cash, no matter how big or enticing the pile of cash may look. Establishing cash flow should be your intent with every deal.

This doesn’t mean that all of your deals will become buy-and-hold situations, but that should be your INTENT for every deal.

Cash flow is the fastest path to financial freedom.

That said, not every deal will fit into your cash flow and portfolio. To determine a good deal, use the following two numbers.

Number One: Your Cash Number

Determine the minimum amount of cash you could accept that would justify all the effort of completing the deal. This number will depend on:

  • Which market you’re in
  • How long you’ve been investing
  • How good you are at investing/how much experience you have

Number Two: Your Cash Flow Number

What’s a good cash-on-cash return for you?

You can define this as either a percentage (“I want a 13% cash-on-cash return) or an actual cash amount (“I want at least $300 per month of cash flow).

To determine a good return, I like to first establish the starting point of your money. In other words, what is it doing for you right at this moment?

For example, if you have money in a mutual fund and it’s giving you a 7% annual return, that’s not too shabby. So if you liquidated that fund and put it into this deal, would it work harder for you? Would it earn you more than a 7% annual return? And if it does, is it enough of an increase to make it worth the effort of completing the deal?

The Cash Flow Formula

To calculate this quickly, divide your annual cash flow by how much money you’d put into the deal.

badass genius real estate investor

For example, if you had an annual cash flow of $200/month, that’d be $2,4000/year. Let’s say you had to put $20,000 down. $2,400 divided by $20,000 is 12%. That’s far better than the current 7% your money is doing in your mutual fund, so that might be a really good deal for you.

Turnkey Operations

If you don’t have any money working for you yet, you can go to just about any turnkey operation and use leverage to get somewhere between 7-8% (on the low side) or 10-11% (on the high side) of cash flow. So if your mutual fund is doing 7% but you know there are deals available to a turnkey operation that could pay you 10%, that could be your low mark right there.

Rising Standards

Once you have a bunch of deals under your belt yielding great returns, you’ll find your standards rising. That’s great! There’s no reason to pursue 10% cash-on-cash return deals if you have a handful of properties doing 14-15%. Keep elevating the performance of your portfolio.

#3: Focus on Finding the Deal First

Finding the deal is probably the hardest part of the whole equation. Worry about this FIRST and focus all your energy there. Don’t worry about who your buyer is going to be, who will manage your property, whether you should wholesale or flip the property, or anything else until you’ve found the deal to begin with.

#4: Secure the Deal Prior to Due Diligence

Right after you find the deal, secure the deal. Get it under contract. This should be easy since you’ve already determined your deal standards ahead of time.

Don’t do too much due diligence. If you overdo the investigating before you secure the deal, someone else can come along and take the deal out from under you, and now you’ve done all that work upfront for nothing.

Once you have the deal under contract as close as you can to your deal standards, you will have enough time to ask yourself:

  • What will the physical inspection look like? How is the foundation, the plumbing, the electricity, the roof?
  • What are the expenses of the property?
  • Are other deals like this one selling for good money?
  • What will the property management look like?
  • What is the crime rate like in the area?
  • Is the title clean?
  • What are the nearby schools like?
  • What is the potential of the area? Is it growing?

These are all questions you should ask yourself before you actually close.

badass genius real estate investor

#5: Analyze for Multiple Exit Strategies

On you have the deal, you should also analyze it for multiple exit strategies.

Being a one-trick pony can really hurt you. If you only wholesale, you’ll be in this business for a very long time and likely burn out. Positioning yourself to create cash flow with every deal is how you can most quickly achieve financial freedom.

There are three different possible exit strategies you should analyze each deal for:

1. Flip

When deciding whether or not to flip a property, ask yourself the following questions:

  • What kind of return can I get if I flip?
  • How quickly can I do this?
  • How long will it take me to actually realize the profit?

2. Hold

When deciding whether or not to hold a property, ask yourself the following questions:

  • How can I hold this?
  • If I do hold it, what is my return going to be?

3. Finance

When deciding whether or not to finance a property, ask yourself the following questions:

  • How could I potentially finance this?
  • Could I increase my cash flow or amount of cash?
  • Can I get the best of both worlds if I find the finances to hold onto the property, acquire it, and then resell it with seller financing?

Analyze every single deal for these three scenarios.

The path you choose will be dependent on your current situation. If you need immediate cash, it might be smarter for you to flip so you can afford to eat while you look for your next deal. But if you have reserves saved up, your returns may be much better if you hold the property.

Considering all of your exit strategies is what will make you a badass genius investor. Don’t pigeonhole yourself into being a flipper or wholesaler when you cam escape the rat race much faster by using all three strategies to your advantage.

badass genius real estate investor

Okay, Badass Genius. Get Out There!

You now have all the information you need to be a badass genius real estate investor.

I’ve given it all to you for free because that’s what information is these days – 100% free and easily accessible by anyone on the internet.

So, congratulations! Nothing is stopping you from massive real estate success now!

… But if you’d rather not work alone, and you’d like to have someone hold your hand throughout the process and maybe even do some (or a lot) of the work for you… I recommend dropping an application at There are several tiers of help available to you through that program, and I can help you figure out which one matches your needs best.

If you’re really feeling like a beginner and you don’t have a lot of money to invest just yet, I highly recommend taking the Your First (or Next!) Deal course.

This course is a no-brainer for anyone still trying to “get started” in real estate investing. You’ll get access to video tutorials walking you through every step of a real estate deal, the resources you need to make it happen (think buyer/seller interview sheets, example property flyers, a formula for writing personal notes, a script for presenting offers, etc.), and direct access to me during our monthly coaching calls.

Plus, I’ll literally PAY YOU to get your first deal!

Go to now to get the details and make your pledge!

Matt Theriault

Real estate investor and educator.