Master Passive Income With Real Estate Investing

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You have found Authentic Business Adventures,

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the business program that brings you the struggle stories and triumphant successes of

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business owners across the land. We are locally underwritten by the Bank of Sun Prairie.

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Past episodes can be found morning, noon, and night at the podcast link found at: drawincustomers.com My name is James Kademan – entrepreneur

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author, speaker and helpful coach to

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small business owners across the country.

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And today we’re welcoming/preparing to learn from

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from Dustin Heiner,
the founder of Master Passive Income,

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which has got to be one of the coolest
phrases ever in the entrepreneurial world.

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Dustin, how are you doing today?
I’m blessed James.

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Thank you so much.

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Thank you so much
for having me on the show.

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I really appreciate it.
I love just talking to people about how I

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was able to literally change
my life and not work a dead end.

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J.
I call it J-O-B.

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Your job is you’re living just over broke.

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So, yeah, I really
appreciate you having me on.

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Yeah, the J-O-B.
It’s interesting.

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You say that because a lot of times we’ll
talk with people that have the typical

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job, whatever they punch in,
they’re signing the back of the check

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essentially.

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But a lot of times I also run

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into entrepreneurs
that own a job rather than a business.

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Which is kind of I imagine what you’re

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trying to help people with.
That’s totally what I love to do.

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I love having a business
that actually runs itself.

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And so I invest in real estate.

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So it literally runs itself.

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And that’s one thing that I also do

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from now on. I quit my job when I was 37
years old, and once I quit my job, yeah.

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I was really blessed to have so much more

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time because all my expenses were
paid for because of my real estate.

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From there, I’m now able
to build many other businesses.

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I have four or five other businesses now,
but I focus on passive income streams.

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So I have a river of income,
which is real estate.

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And then I have other streams coming

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in from other businesses that I create
that are all, hopefully passive income.

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All right.
Very cool.

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So how did you end up getting started?

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What was the light switch moment?
Yeah.

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So I’ve always been entrepreneurial
in general, somebody who likes business.

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And so even from a very young age, when
I was 13 years old, I had a paper route.

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I’d ride a bike with newspapers and throw

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the papers and bang on garage
doors at five in the morning.

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So I had a paper route

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when I was really, really young. I had
a graphic and website design company.

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I had a skateboard manufacturing business,
owned a convenience store and a pizzeria.

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I have all these other businesses,
but they were all just basically ways

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that I would work 1 hour
and then get paid for 1 hour.

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But they all weren’t that successful.

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Then I bought one rental
property, and as I bought one rental

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property that made me a minimum
of $250 a month in passive income.

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From there, I realized, man,
I need to get more of these.

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But I didn’t really pursue that.

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I was still working a nine to five job.

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So I got to tell you a quick
story about this, James.

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So I was working a nine to five job.

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So in California,

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I was working at one of the counties there
doing IT or technology work in one

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of the counties there and working
just like everybody. We’re taught:

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you go to school, you go to college.

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I did that, went to college.

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Then you go and get a career.

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You start a career,
you start working there.

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Which I did.

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I started working for the county
regular desk job, nine to five, J-O-B.

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And I’m working there year after year.

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After about 10, 12, 13 years of working
there, my wife and I started having kids.

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And this quick story that really shows

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the catalyst that really turned the switch
in my mind that I need to do this.

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So if you’re watching this, you could see
the four kids in the video of my family.

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And so my wife, as I’m working my regular

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job, she has our fourth kid
and our fourth child was born.

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And I went on paternity leave.

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Now, paternity leave is where the dad
stays home with the mom to change diapers

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and bond with the baby
and all that sort of stuff.

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And as soon as that’s done,
I go back to work.

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I’m back to work for about a week.

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And on a Friday at about 3:30
in the afternoon,

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I get a call from my boss’s, boss’s,
boss’s Secretary, like the top dog.

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This Secretary gives me a call and says,

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Dustin, would you please
come to the boss’s office?

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And I said, sure, and hung up the phone.

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And as I’m sitting there on my desk,

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I’m thinking, Why would they
be calling me the office?

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I haven’t been back long enough
to do anything bad or good.

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What’s going on?
This isn’t normal.

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And as I’m sitting there,

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I’m thinking back to, well,
a month or two before I went on paternity leave,

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there was some rumors or some rumblings
that there could potentially be layoffs

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because the county was
running low on funds.

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And no, I immediately shook that off.

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There’s no way I have great seniority.

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My bosses tell me I do a great job.

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I get reviews, they’re great reviews,

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increases and raises
and all that sort of stuff.

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So I get up, I get up and I walk down
the hallway to my boss’s office.

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Now, this hallway isn’t necessarily long.

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It’s actually a fairly short hallway,
but every single step that I take,

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it feels like the hallway gets longer
and longer, and it feels like my feet

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become lead bricks as I’m walking down
the hallway because the weight

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of everything, I could potentially get
laid off, is starting to rest on me.

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So I make it through the hallway.

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I turn the corner and I see my boss’s
door, his doors closed,

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and I see a Secretary looking at me
and she says, she officially she grins

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and says, Dustin, would
you please have a seat?

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So I walk over and I have a seat
and she’s a super nice lady.

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And she’s consoling me with her eyes

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because she knows everything
about what’s going on.

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I know nothing about what’s going on.

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And as I’m sitting there,
I’m in that chair,

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just sitting there waiting,
and things start going through my head.

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Well, all these years, 1314 years building
this career here, was that all waste?

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Because now if I get laid off
like that’s literally all gone.

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Then I started thinking, oh, my goodness.
I have four kids.

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I just have my fourth child.

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My wife did.

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How am I going to feed them?

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How am I going to put
a roof over their head?

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And what does that make me as a father?

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Does that make me a failure as a father?

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Does that make me a failure as a husband,

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as a man that’s trying
to provide for his family?

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Well, as I’m sitting there,
my hands get all clammy.

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My forehead gets all sweaty and opens

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the door to my boss’s office and outlook
the lady, a co worker of mine with a piece

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of paper in her hand,
and she’s noticeably distraught.

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She’s noticeably upset,
but not at the same time.

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She’s not crying.

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But you can tell James,
her world is 100% rocked.

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And as she’s walking past me,

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my boss says, Dustin, would you
please come into the office?

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I get up and I walk into the
office and I get laid off.

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And remember, this is the government.

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Nobody gets laid off
or fired for the government.

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I did.

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And so I get my lay off notice and I walk

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back down that hallway
and I sit down at my desk.

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And right then and there, James,

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I realized two things
literally sitting right there.

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I said, Number one,
I need to get another job.

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I need to be able to provide

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for my family, put food on our table,
roof over our heads.

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So I was really blessed.

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Praise the Lord,
to be able to find another job in the same

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county, another Department
the Sheriff’s Department was hiring.

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They need an it person appraiser Lord,

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I jumped right over there and I was
working there, didn’t even get laid off.

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It was such a blessing.

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And then sitting in that chair, also,
I said, the second thing that I realized

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was, I need to make sure I never,
ever let this happen to me again and make

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sure that nobody has the power to take
away the ability for me to feed my family.

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So sitting right there,
I realized that now,

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instead of if anybody ever asks me,

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because everybody gets this question,
what do you do and that question basically

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asks me how Dustin,
what value do you put on yourself?

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And I used to always reply, Just like
everybody I do it work for the county.

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It basically reply with my Jo B my job.

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From that point forward, I said,
no way will I ever say that.

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No way is my value in my job.

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And everybody listening this, you need
to realize your value is not in your job.

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In fact, you have a reason why you know

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that your boss is only paying you enough
to keep you working without quitting,

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but not so much as taking
money out of their pocket.

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So your worth is so much more
than anybody can ever pay you.

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So as I’m sitting there, I realize
now I knew I should be an investor.

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Now that point said, I told myself,
I am now an investor.

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Anytime anybody asked me that question.

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Dustin, you are an investor.

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So I would answer that question.
I am an investor.

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Now it so happens based off of that,
100% of my money comes from my job.

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That’s now my part time job.

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I am a full time investor.

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Now, as I did that,
I went over to the new County Department,

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started saving money,
bought the next property, save more money,

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bought the next property year after year,
bought property after property after

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property, each one making me a minimum
of passive income of $250 a month.

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Some are making me three, four,

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$500 a month of passive
income after 20 properties.

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Now I have 30 plus properties.

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But after 20 properties,
I was 37 years old.

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I’m like, man, why am
I still working here?

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I’m 37 years old.
I don’t need to work here.

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I’m making $75,000 a year,
but I’m losing money.

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So this is a round of the story.

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By telling this, James,
I went to my new boss’s office.

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Great boss and everything.

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I gave him a lay off notice.

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I said, you have two weeks.

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Basically just joking me.

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But I gave him a two weeks
notice and said, Boss, I’m done.

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And my boss says, Well, Dustin,
what are you going to do?

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I said, Well, I’m not
going to do anything.

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I literally have real estate.

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I don’t have to do anything.

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So as I walk to my car and this is a mile

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and a half walk,
I worked at downtown Fresno.

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I didn’t want paper parking, so I Park far
away when I have to park paper parking.

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But I’ve taken this walk
literally a thousand times.

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Now, as I’m walking this walk for the very

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last time, you remember,
contrast that walk I took to my first

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boss’s office where I felt
like I was having lead bricks.

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Well, I felt like I was walking on clouds

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because I realized because of all the hard
work, because of real estate investing,

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because of telling people now
my value is in my business.

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I’m an investor.

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My value comes from my God comes
from myself and my family because of all

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that, I am now walking on clouds because
I will never, ever need a job again.

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So I’ll pause everything to say,
you’ve probably got a lot of questions,

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but that’s what kind of pulsed
me into becoming an investor.

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All right. So do you think that if you

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would have not gotten laid off,
that you would have gone down this path?

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I honestly don’t know if I would have.

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And the reason why is because I was always
down businesses and I was always down like

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I wanted to start a business,
start a business.

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And the worst ones are where
you basically own a job.

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And all of my bosses would be

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my customers, like I had
a convenience store.

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And all of my bosses were my customers

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that would come in the door if they did
not come in the door to spend money.

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I’m not getting paid.

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Man, this is just not good.

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So that’s the route that I was going.

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But then once this happened,

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I realized that I need to make
money without working.

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And that’s what was the catalyst to say.

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I need to make sure that all my eggs are
in the real estate investing basket.

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All right.
Yes.

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You stopped trading time for Money 100%.

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This is a terrible trade.

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Well, and that’s why I came up
with the name Master Passive Income,

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because as I was thinking
about this, go here’s.

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What’s funny.

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As I was quitting my job, co workers,
family members, friends kept asking me,

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Well, Dustin, how are you going to provide
for your family without working a job?

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I said, Well, I have real estate.

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And the second question is always,
Well, can you show me how to do it?

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I would show friends and family members
I’ve actually got from the beginning I got

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dozens of family members and friends
to actually invest to be able to lock them

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to quit their job because
they were investing.

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And I thought, you know what?

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This has taken a lot of time.

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It’s good spending a lot of time

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with my friends and family members,
one on one coaching, but one on one.

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It takes a lot of time,
even though I enjoy it.

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It’s a lot of work and a lot of time.

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So I said, there’s got to be a better way.

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So what I did was I created
Master Passive Income.

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That’s my online business where I wrote

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a book, how to Quit Your Job
as a Rental Properties.

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I’m not very creative with titles or
anything at all,

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so it’s not a straightforward
how do you create your job?

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The Rental Properties created a podcast.

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The Master Passive Income Podcast was

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literally just me teaching
how to invest in real estate.

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My YouTube channel,

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my Master Passive Income YouTube channel,
do the same thing,

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teaching this real estate courses,
coaching, doing all this stuff.

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And the reason why is
because at 37 years old.

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I’m like, man, I’m getting
bored just not doing anything.

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I have so much more time
to spend my family.

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But my family is like, hey, go away.
We got school work to do.

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I’m like, oh, okay.

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So anyways, I’m blessed with my money
and my time and relationship.

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So I was like, you know what?

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It’s time for me to give back.

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And so that’s why I love jumping

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on podcast and obviously
meeting great people like you.

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But then also sharing that if I
can do this, anybody can do this.

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I’ll lead by this also saying
that I’m not that smart.

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More than likely everybody

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on and listening to this is so much
smarter than me that they can do this.

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If I can do this, literally,
anybody else can.

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Well, maybe right.

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With a little bit of guidance.
So good.

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I want to back pedal a couple of steps,
though, because you mentioned some other

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businesses that you started
that didn’t work out so hot.

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So you mentioned convenience store,

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which to me, I’m just like, Whoa,
who in the world start one.

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I understand that there’s a market for it,

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but I just think,
and you’re coming from a guy.

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I used to be a beer delivery guy.

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So you’re stopping at these
convenience stories?

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I’m like, oh, my gosh.

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Early in the morning, late at night,
finding people stocking 5 million things.

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Oh, it’s not fun.
I’m never doing it again.

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You got to tell me what made you
decide to start a convenience store.

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That’s a great question.
So it was actually my dad.

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He was a manager at Denny’s manager many,
many years, saved up a lot to retire.

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But then he bought a convenience stories

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and was the sole proprietor
of the convenience store.

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So he’s been doing it for,
like, ten years.

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And I was like, Well,
he’s making good money.

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And he would obviously tell me how much
he’s making kind of, like, rough numbers.

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I was like, you know what?
I can probably do that.

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But I also didn’t want
to be a sole proprietor.

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I hired employees.

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I just wanted to run the business
and have employees run it.

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And so I started my own convenience
stories because I helped my dad.

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I knew everything about the business.

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I understood it wasn’t that hard.

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So I started it, then realized,
oh, my goodness.

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Well, sorry.
Let me take that back.

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I started in 20 07.

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20 08 ish, in fact,
I started messing in 2006.

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My rental properties,

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2006 all through the crash,
still made money whether market went up,

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down or sideways because I
messed in passive income.

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But the convenience store I started 20 07,
20 07 is going well.

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2008 was going well.

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But what happened in 2000 and 2009,
the crash, the entire economy crashed.

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Then my store went, it just went down.

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Calls on call.

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Yeah, we were in a downtown area where

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a lot of just businesses and organizations
traffic, and they were laying off people.

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So we had just less and less
customers coming in.

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It was just rough,
so literally never do that again.

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I only build passive
income type businesses.

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Now,

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what was one of the other businesses you
mentioned that you started

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skateboard manufacturing is
one skateboard manufacturing.

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That’s awesome.
Yeah.

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It’s fun.

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It was terrific being able to make
skateboards and sell them,

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seeing other people, riding them
and taking pictures of the writing.

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It’s a lot of fun, but at the same time,

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it’s a lot of work,
and there’s not very much profit.

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There’s a lot of work to build them.

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Also, it’s really competitive.

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There’s a lot of big name
companies that sell skateboards.

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You have to get in the stories.

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You can sell them online,
which I was doing a little bit.

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It’s just a lot of work.
But then again,

[00:15:26]
it’s still you got to produce a product
and your customers, your boss,

[00:15:29]
they have to buy from you, and you have
to find a new boss every new time.

[00:15:34]
So were these skateboards
that you designed.

[00:15:38]
And I don’t do this anymore.

[00:15:39]
But I had a partner when I was young.

[00:15:41]
I was young and had partners, literally.

[00:15:43]
I’m old enough now and plenty
enough business expense.

[00:15:46]
They say, I’m never
going to have a partner.

[00:15:47]
I’ll have investors.

[00:15:48]
They’ll invest with me, all the properties
and all that sort of stuff.

[00:15:50]
That’s awesome.
Right there.

[00:15:52]
Yeah.
Beautiful.

[00:15:52]
Right there.

[00:15:53]
I won’t have partners,
but I’ll have investors.

[00:15:55]
So I had a partner.

[00:15:56]
He had great designs.

[00:15:58]
I was the business guy.

[00:15:59]
And it turns out I did all the work.

[00:16:00]
So that’s why I never do partners again.
But yeah.

[00:16:03]
So he did the designs.

[00:16:05]
I did we deal manufacturing
and all that sort of stuff.

[00:16:07]
And I did most of the sales
and all that stuff.

[00:16:10]
All right.

[00:16:13]
I imagine you had to bring in supplies,
put them together.

[00:16:17]
I mean, were you there
with the screwdriver wrench?

[00:16:20]
Yeah.

[00:16:20]
Well, because I was young,
I was like, 21, 22.

[00:16:24]
Wow.
Yeah.

[00:16:25]
We weren’t making much money at the time.

[00:16:27]
And so it was like, let’s just
see if we can make it ourselves.

[00:16:30]
And then from there, sell them.

[00:16:32]
And then from there,
see if we can grow the business.

[00:16:34]
And then after a while of me doing all
the work, I was like, It’s not worth it.

[00:16:37]
I literally have half the business,
half the income, 100% of liability.

[00:16:42]
This is a waste of time.
I’m doing all the work.

[00:16:43]
So I’m doing 100% of the work.
It was just bad.

[00:16:46]
So I said, I’m done.

[00:16:47]
I’m moving on, and we
just killed the business.

[00:16:51]
How did that conversation go? Your
business partner? We were like, hey.

[00:16:56]
It was more of, like,
we talked about it towards the end,

[00:16:59]
after about six months of literally not
doing anything in the business because he

[00:17:03]
hadn’t been doing anything for,
like, a year.

[00:17:05]
And I was like, well,
I’m just going to stop doing things.

[00:17:07]
And eventually it just stopped.

[00:17:09]
And, oh, well, it wasn’t
really a conversation.

[00:17:11]
Like, hey, we’re done now.

[00:17:13]
Meaning like, let’s stop
this point forward.

[00:17:15]
It was like, okay, we are literally done
now because we’re not doing anything.

[00:17:19]
So it just kind of fizzled.
Yeah.

[00:17:21]
Exactly.
Okay.

[00:17:22]
All right.

[00:17:23]
The convenience stories.
Did you end up selling it?

[00:17:25]
I did.
I sold it to a sole proprietor.

[00:17:28]
So

[00:17:31]
if I want to quit my job and work

[00:17:33]
in there, it would be a good
sole proprietor type business.

[00:17:35]
And that’s the person that bought it.

[00:17:37]
He bought it and he
didn’t run it very well.

[00:17:39]
In fact, he ran it very poorly.

[00:17:41]
But at the same time, it was making
profit for somebody like that.

[00:17:45]
But he also didn’t run it very well.

[00:17:47]
Actually, he did a lot of bad things.

[00:17:49]
But anyways, whateverlife goes on.

[00:17:52]
Everybody’S got their own path.

[00:17:53]
It’s all good.
It’s all good.

[00:17:55]
So now with a master passive income,

[00:17:59]
the properties that you’re purchasing
and that you have purchased are

[00:18:02]
the majority of them residential
rentals or the commercial rentals.

[00:18:07]
Yeah.
So a different word.

[00:18:09]
Residential and multifamily are two
different words that really resonates.

[00:18:16]
But at the same time, what I like is
the other term is single family homes.

[00:18:20]
So I do single family homes,

[00:18:21]
but it’s literally residential four units
and three units, twelve and two and one.

[00:18:26]
So anything from one to four
units is residential.

[00:18:28]
So when I say single family.

[00:18:30]
So if I ever say single family,
it means four units and below.

[00:18:34]
Once you get five units above apartment
complexes, that’s multi family,

[00:18:37]
different mortgages, different
insurance, different everything.

[00:18:41]
So four units and below.

[00:18:43]
And that’s what I teach people.

[00:18:44]
Because honestly, everybody can buy
a house for themselves to live in.

[00:18:49]
It’s not that hard.
You just find a realtor,

[00:18:51]
you get a mortgage broker, you put them
together, you buy a house to live in.

[00:18:53]
It’s not that hard now
to actually turn into a business.

[00:18:56]
Now, here’s the other big thing, James,

[00:18:57]
is the way that I started investing
was the wrong way to do it.

[00:19:01]
In fact, I listened to those other, quote,

[00:19:03]
unquote gurus that they
tell you how to invest.

[00:19:06]
This is what they tell you.

[00:19:07]
And I’m going to tell
you this really quickly.

[00:19:09]
So hopefully you’ll forget it.
But this is the wrong way.

[00:19:10]
This is the way that I did it.

[00:19:12]
They say, find a property,

[00:19:14]
run the numbers to make sure you’re making
$50, maybe $100 a month in passive income.

[00:19:18]
Then you find somebody
to fix it up to rehab it.

[00:19:22]
Then you find somebody a tenant,

[00:19:23]
you find a tenant to put in there,
then you find somebody to manage it.

[00:19:27]
Well, in my opinion,
that’s almost backwards.

[00:19:30]
It’s almost literally backwards.

[00:19:32]
And the reason why is we
build the business first.

[00:19:35]
Let me give you an example of what
building the business looks like.

[00:19:38]
If you’re going to start
a convenience stories.

[00:19:39]
Obviously, I understand convenience
stories ran for a couple of years

[00:19:45]
for a couple of years.

[00:19:47]
If you’re starting a comedian store,
you’re not going to lease a location,

[00:19:51]
open the doors, put a box of candy
bars in there and hope to make money.

[00:19:55]
No, you’ll lose money.

[00:19:58]
Basically go out of business in 2 seconds.

[00:20:00]
What you would do, though, is you would
get everything by building the business.

[00:20:05]
You get the gondolas or the shelving
units that you put everything on.

[00:20:08]
You get the countertops,
the cold storage bounty machines,

[00:20:11]
countertops, the cash registers,
bank accounts, employees, insurance.

[00:20:15]
You’ll get literally everything in the
business before you buy any inventory.

[00:20:20]
See what those other people tell you.

[00:20:22]
Your property is your business.

[00:20:23]
No,

[00:20:25]
your property is your piece of inventory
that you put into your business.

[00:20:29]
Remember, I’m a businessman.

[00:20:31]
I love being an entrepreneurial.

[00:20:33]
I looked at this as a business,

[00:20:36]
and I said, how do I build the business
and then buy the inventory?

[00:20:39]
So what we do in real estate investing is
we let’s say, in anywhere in the country.

[00:20:43]
I literally invest in Ohio,
Texas and Arizona.

[00:20:46]
My students literally invest
all over the country.

[00:20:48]
Midwest is a really good area

[00:20:49]
of the country to invest
in the Carolinas and Florida.

[00:20:52]
Really great areas to invest.

[00:20:54]
And so we invest thousands of miles
away from us out of state.

[00:20:57]
But what we do is we hire experts on the
ground to actually run the business.

[00:21:04]
Now, what this looks like when you’re
going to be building business for real

[00:21:06]
estate is you find an area
that has inventory.

[00:21:10]
The first thing you need
to make sure there’s inventory.

[00:21:12]
You don’t want to go to some town.

[00:21:14]
That literally is one house there.

[00:21:16]
Well, there’s no inventory.

[00:21:17]
You’re not going to be
able to run a business.

[00:21:18]
You’re not going to want to rent it.

[00:21:19]
So we look first for a good
city that has good inventory.

[00:21:23]
Types of houses.

[00:21:24]
We want to buy the types
of rents that we can bring in.

[00:21:27]
Types of tenants.

[00:21:28]
We want all that sort of stuff
and they say, okay, great.

[00:21:31]
This is a good area,

[00:21:32]
a good city that has good inventory
from their inventory check.

[00:21:35]
We can set that aside.

[00:21:36]
We stopped looking at properties.

[00:21:38]
A lot of students would say,
hey, Dustin, I found this city.

[00:21:40]
Then I found this realtor.

[00:21:41]
They were sending me like, 100 deals.
What do I do now?

[00:21:44]
I’m like, Well, stop talking to Realtors.

[00:21:46]
Stop looking for deals.

[00:21:47]
We don’t do deals yet.

[00:21:49]
That’s inventory down the line,
like, way, way far down the line.

[00:21:53]
What we do now is we build the business.

[00:21:56]
What that looks like is
we hire the experts.

[00:21:58]
The first one.

[00:21:59]
Very first expert we find once we
know there’s inventory in the area,

[00:22:05]
I’ve been told, I say real attour it’s.
Not real attour it’s.

[00:22:08]
Realtor realtor are a dime a dozen.
In my opinion.

[00:22:11]
If you’re a realtor.

[00:22:12]
I apologize if I hurt your feelings.

[00:22:15]
Totally agree.

[00:22:16]
The ones that are the diamond

[00:22:18]
in the rough, the ones that are so hard
to find, but that are your quarterbacks.

[00:22:21]
If you’re thinking about football team,

[00:22:22]
you want somebody, a quarterback that’s
going to make you money or score for you.

[00:22:27]
Protect you.
Make sure you’re moving forward.

[00:22:29]
That’s your property manager.

[00:22:31]
So when we’re building the business,

[00:22:32]
first thing inventory,
then we pause everything.

[00:22:35]
We make sure we find a property manager.

[00:22:37]
That’s our expert.

[00:22:39]
Then once we find a property manager,
we interview property.

[00:22:42]
There’s a whole process
like this is a big deal.

[00:22:44]
I’m going to quickly jump out of property

[00:22:46]
manager, but I will say
this is the biggest deal.

[00:22:49]
My first property manager started
stealing from me within six months.

[00:22:52]
It was home.

[00:22:52]
Now I figured out how
to find the right ones.

[00:22:55]
I have listed 25 questions
that people need.

[00:22:58]
All my students ask them how to interview
them, all that sort of stuff.

[00:23:01]
So this is a big deal,

[00:23:02]
but I’ll quickly jump into so you
get your property managers first.

[00:23:06]
Once you find your property managers,
then you start finding your mortgage

[00:23:09]
brokers because you need to have
money to be able to do that.

[00:23:11]
You need to find private money,
hard money, seller financing.

[00:23:15]
You need to start figuring out other ways
to get financing, not just your own cash.

[00:23:19]
That’s another thing.

[00:23:20]
Then what we do is we find contractors,
inspectors, plumbers roofers.

[00:23:25]
We’re finding insurance agents,
all these other things in the business.

[00:23:28]
And then once we have that set,
then we go and find.

[00:23:31]
And if you’re thinking about still
the football analogy,

[00:23:33]
I look for my wide receivers,
which are my Realtors Realtors.

[00:23:37]
They go out and they find deals.

[00:23:39]
Once you have your business built,
then that’s when inventory comes to you

[00:23:43]
and you say, I like that piece of
inventory, buy it, put it in my business.

[00:23:45]
I don’t like that one.
Don’t like that one.

[00:23:47]
Oh, I like that one.
Buy it, put it in my business.

[00:23:49]
And then I have a fully running
business that is accounting for.

[00:23:54]
Now, here’s the big thing, James, that
everybody needs to take away from this.

[00:23:57]
As you’re building the business,
we need to make sure that we’re making

[00:24:01]
money in passive income of $250
or more every single month.

[00:24:07]
If you remember what I said,
a lot of other people try to tell you,

[00:24:10]
well, make sure you’re making 50
or $100 a month in passive income.

[00:24:12]
Well, if you think about it, $100 is
only $1,200 a year in passive income.

[00:24:18]
If you have one furnace go out,
that’s going to eat up all your repair

[00:24:22]
budget as well as dip
into your passive income.

[00:24:24]
What if you have, let’s say,

[00:24:25]
a furnace go out at the same time
or water heater, I mean, or a roof.

[00:24:29]
$1,200 doesn’t go very far,

[00:24:31]
especially if you have a vacancy
that’s going to be eaten up very fast.

[00:24:34]
When I shoot for all my students is

[00:24:36]
a minimum of $250 a month
in passive income.

[00:24:40]
Now, what that looks like.

[00:24:41]
And this is how you easily
scale your business.

[00:24:43]
So you buy one house that makes you
$250 a month in passive income.

[00:24:48]
That’s $3,000 a year in passive
income without working.

[00:24:52]
If you buy ten properties that make you
$250 a month, that’s $2,500 a month

[00:24:59]
without working, $30,000 a year without
working 20 properties is $5,000 a month.

[00:25:07]
20 properties is $60,000 a year
in passive income without working.

[00:25:12]
And so with that, we have a huge buffer.

[00:25:15]
In case there’s any big expenses we can

[00:25:17]
pay for our bills for our family,
we can invest more.

[00:25:20]
But that’s the biggest thing,
because here’s what people do wrong.

[00:25:24]
In my opinion, they have
invest for appreciation.

[00:25:28]
They say, oh, yeah,

[00:25:28]
I like a little bit of passive income,
but I go for appreciation.

[00:25:32]
Well, if I would have done that back

[00:25:33]
in 2006, when I first started investing,
which a lot of people were investing back

[00:25:37]
then in 2008 and 2009 crashed,
you’re going to see or if you ask anybody

[00:25:42]
to start investing back there more
than likely if they went bankrupt.

[00:25:46]
If they say I lost everything,

[00:25:48]
it’s because they were doing it
wrong by investing for appreciation.

[00:25:53]
Appreciation?
Yes.

[00:25:55]
Thank you.

[00:25:55]
They were trying to invest
for appreciation.

[00:25:58]
And what happens is
that appreciation is gone.

[00:26:01]
You go from a house is worth $200,000 down
to a house is worth $100,000,

[00:26:05]
and then you’re like, oh, I can’t make my
mortgage payment, and then you’re stuck.

[00:26:09]
But here’s what I did.

[00:26:11]
No matter if the market goes up,

[00:26:13]
if the market goes down or if the market
goes sideways, because I said,

[00:26:17]
I don’t care about appreciation,
it’s great when it’s there.

[00:26:20]
In fact, I use it not to sell the house.

[00:26:22]
I refinance it.

[00:26:24]
Pull the cash out in equity.

[00:26:26]
No tax loan, tax free loan to buy
more properties, which is great.

[00:26:31]
But these houses that I own,

[00:26:33]
it’s hard for me to sell them, James,
because these kids in the background,

[00:26:36]
I will literally give these
properties to my kids.

[00:26:39]
And with all of that because I make money
in passive income when the market crashed.

[00:26:44]
Yes, of course.

[00:26:45]
The value of my home is like,

[00:26:47]
let’s say a bunch them here, whatever
price, let’s say $150,000, it dropped.

[00:26:52]
Let’s say 80.
Thousand dollars maybe got cut in half.

[00:26:54]
But my passive income stayed the same

[00:26:57]
because people might say, Well,
wouldn’t rent go down too?

[00:27:00]
I’m like, no, absolutely not.

[00:27:02]
What happens when there’s a lot
of foreclosures, a lot more renters,

[00:27:05]
pool of renters go up because they
don’t own own a house anymore.

[00:27:09]
But everybody needs a place to live.

[00:27:11]
Pool of renters go up.
Supply is not there.

[00:27:14]
In fact, I’m just buying
more properties as I can.

[00:27:16]
And so I’m offering them houses back

[00:27:19]
to them and say, hey, you can rent
this house now and then I make money.

[00:27:22]
But that’s the biggest thing.

[00:27:24]
We focus on passive income and everything

[00:27:27]
else actually takes care of itself
because we have our expensive man.

[00:27:31]
I’m talking a lot, but okay, good.

[00:27:35]
There’s one more thing I want to share

[00:27:36]
with you, James, is that I don’t
pay my sorry, there’s a lot more.

[00:27:39]
But this is one thing I’m going to add

[00:27:40]
right now, this little segment,
I don’t pay my taxes,

[00:27:44]
I don’t pay my insurance,
I don’t pay my property manager.

[00:27:48]
I don’t pay for repairs.

[00:27:50]
I don’t pay for any of that stuff.

[00:27:52]
My tenants pay for all of that now.

[00:27:54]
So happens the money comes through me
and goes out and pays for all that.

[00:27:58]
But I don’t have to get a job
to pay for my property manager.

[00:28:02]
People ask me.

[00:28:03]
They say, Dustin, how do you
afford a property manager?

[00:28:05]
I account for that expense before I buy

[00:28:08]
the property because I know I’m
already going to have that expense.

[00:28:12]
And then I don’t have to go get a job.

[00:28:15]
I don’t have to eat
into my passive income.

[00:28:16]
And so that’s the great thing.

[00:28:18]
And the great thing about rental
properties is all you do is you add up

[00:28:21]
your expenses, mortgage, taxes, insurance,
property manager, fees, repairs.

[00:28:26]
They can see all that up.

[00:28:28]
You add up all your expenses.

[00:28:29]
That’s your fixed expense
for every single month.

[00:28:32]
Then you make sure.

[00:28:33]
Remember, you ask your
experts on the ground.

[00:28:34]
The property manager property manager
here’s a property I like to buy.

[00:28:37]
How much can it rent for?

[00:28:39]
They’ll say, oh, great.

[00:28:40]
Dustin, I have a house
right around the corner.

[00:28:42]
It’s Restaino for one
3000 hundred dollars.

[00:28:43]
If it’s a relatively the same shape,
you could probably get $1,300 for it.

[00:28:47]
Great.
I know my expenses are $1,000.

[00:28:49]
My property manager said he
knows he can get $1,300.

[00:28:52]
Well, that difference is $300 in passive
income with everything else accounted for.

[00:28:56]
Does that all make sense?

[00:28:58]
Yeah, absolutely.

[00:28:59]
The name of the game, I guess even
with my businesses, that’s it.

[00:29:03]
You know, your expenses, even the taxes
like you mentioned and all that jazz.

[00:29:07]
The business pays for those because
they’re accounted for in the expenses

[00:29:11]
to figure out whether
you’re profitable or not.

[00:29:15]
The bottom line was
the number on the bottom.

[00:29:17]
After you take out all that stuff before

[00:29:20]
you do anything like any business that I
create now because I learned this from way

[00:29:24]
back when I created businesses
where I was like, oh, my goodness.

[00:29:26]
I’m losing money.

[00:29:27]
I should have figured out
how to make Profit first.

[00:29:29]
So obviously there’s a book now,
like, back in 2006.

[00:29:31]
This book wasn’t came up, but Profit First
is a pretty popular book I haven’t read.

[00:29:35]
Yeah.
Okay, good.

[00:29:37]
I’ve been told it’s really good book.

[00:29:39]
I just have literally implemented that
ever since figuring it out back in 2006.

[00:29:43]
But every business that I create now,
I literally put that profit in there

[00:29:49]
because I know I don’t want to lose money,
so I make sure that is an expense item

[00:29:54]
in every business so I can rip that out
and have everything else paid for.

[00:29:58]
Does that make sense?
Yeah, definitely.

[00:30:01]
Absolutely.
First is a good book.

[00:30:04]
I feel like it could
have been a paragraph.

[00:30:05]
But

[00:30:07]
you too.

[00:30:08]
I was like, Why do I need
to read a book on it?

[00:30:11]
There’s probably great.
Oh, we want to pay $20 for a paragraph.

[00:30:16]
It’s just the values in the book,

[00:30:18]
but it’s one of those, like,
I’m reading this saying, I get it.

[00:30:21]
I remember it’s a great book because I
think it was well written,

[00:30:25]
all that kind of stuff,
but the cliff notes,

[00:30:27]
I think I marked the one paragraph
in there that defined what they wanted

[00:30:32]
to do with the different bank accounts
and the percentages going

[00:30:36]
this book was for that one paragraph,
maybe just two paragraphs, whatever.

[00:30:40]
It could have been way shorter.

[00:30:42]
That’s hilarious.

[00:30:43]
But that said it was a game changer
for my business from a perspective,

[00:30:50]
but also just the mechanics of how you do
it instead of just having everything

[00:30:55]
in one bank account and being like,
looks like I’m rich.

[00:30:59]
Absolutely.
Get my tax bill.

[00:31:03]
Oh, yeah.

[00:31:03]
Well, the great thing
also about real estate.

[00:31:05]
So if anybody is making any money at all,

[00:31:08]
like, a decent amount of money
and you’re like, oh, my goodness.

[00:31:10]
I got lots of taxes.

[00:31:11]
You need to find the value
of depreciation in a real estate asset.

[00:31:16]
Oh, my goodness.
Okay.

[00:31:18]
I’ll quickly go over six ways that I
make money investing in real estate.

[00:31:21]
If I buy one rental property,
just one rental property.

[00:31:24]
Already talked about passive income.
Brilliant.

[00:31:26]
Love it.

[00:31:26]
That’s how we feed our
family passive income.

[00:31:28]
Next one is equity capture.

[00:31:30]
I’m an investor,
so I don’t pay market value.

[00:31:32]
Let’s say the value is worth $150,000.

[00:31:35]
I’ll try to buy it for $120.
$120,000.

[00:31:37]
Now, I’m not breaking the person’s
arm to make them sell it to me.

[00:31:40]
If it works for them, then I’ll
buy it for them at that price.

[00:31:43]
If it doesn’t, I’ll move on and I’ll
find another price, another house.

[00:31:46]
So I’ll try to capture, like, let’s say,
20 $30,000 in equity right then.

[00:31:50]
And there another way is I try
to get forced depreciation.

[00:31:54]
I fix it up, paint and carpet and all

[00:31:56]
that sort of stuff, and I make the value
more because it’s better property.

[00:32:00]
We also know that market appreciation
just an everyday things that we all know.

[00:32:04]
Market goes up.

[00:32:05]
In fact, in Phoenix, where I live,
the real estate market has been up 20%

[00:32:08]
in the last year, which is
ridiculous in my opinion.

[00:32:11]
But appreciation goes up at the same time.

[00:32:14]
Another one is tax advantages.

[00:32:18]
Depreciation is amazing.

[00:32:20]
I’ll quickly go over depreciation.

[00:32:22]
I’ll finish the last one.

[00:32:23]
Then I’ll quickly go over depreciation.

[00:32:24]
The last way we make money in real estate
investing is by mortgage buy down.

[00:32:29]
Now.

[00:32:29]
Mortgage buy down is amazing
because I buy a house.

[00:32:33]
I put a little bit of down payment.

[00:32:34]
Let’s say easy numbers.

[00:32:36]
If somebody’s getting started in this,

[00:32:38]
let’s say they’re going to buy
a house in America with an FHA loan.

[00:32:41]
Three and a half percent down.
Oh, my goodness.

[00:32:43]
Three, 5% down.
Fantastic.

[00:32:45]
Let’s say you buy a DUP.
Three and a half.

[00:32:46]
That’s it.
Yes, that’s three and a half percent down.

[00:32:50]
Wow.
It’s fantastic.

[00:32:51]
Let’s say you buy a Duplex for $200,000.

[00:32:54]
That’s only what is that?

[00:32:55]
That’s $7,000.

[00:32:56]
We can work hard and save get extra job,
do some side hustles, save that $7,000.

[00:33:01]
Buy that house.

[00:33:02]
Then we live in it with the FHA loan
because we have to live in one unit.

[00:33:05]
But we have another unit that’s
actually making us money.

[00:33:08]
Long story short,

[00:33:09]
all the rest because you’re now going
to start renting that out after a year,

[00:33:12]
you can move out and you can have
two units that are being rented.

[00:33:15]
Your tenants.
This is the mortgage buy down.

[00:33:17]
You only paid seven grand
for a house that’s worth $200,000.

[00:33:20]
They’re paying all the principal
and taxes and everything else.

[00:33:25]
Management, all that stuff, but they’re
paying the rest of the what is that?

[00:33:28]
$193,000 to pay off plus
the interest as well.

[00:33:31]
Welcome back to Depreciation.

[00:33:33]
Depreciation is amazing, because what
happens is you buy that same duplex.

[00:33:38]
You have it as a depreciating asset.

[00:33:41]
We know it appreciates IRS,

[00:33:44]
the wealthy people that created
the IRS tax laws made it to us.

[00:33:47]
Wealthy people who invest in real
estate can defer, not defer.

[00:33:52]
We basically take that purchase
price at $200,000.

[00:33:55]
And we have that deducted over 27.5 years.

[00:33:59]
So it looks like over the 27.5 years,
whatever portion of every single year it

[00:34:04]
comes out instead of making
let’s say we make $150,000.

[00:34:08]
It drops by.

[00:34:09]
Let’s say $10,000.
So lonely.

[00:34:11]
Looks like we’re making $140,000.

[00:34:12]
But let’s say you had 20 properties doing
that, it makes you look like you’re making

[00:34:15]
almost nothing because
the depreciation is so great.

[00:34:18]
All right, you need depreciation.

[00:34:20]
If you’re making any bit of money

[00:34:22]
that you’re worried about taxes,
depreciation is amazing.

[00:34:24]
And then help me out
with the depreciation now.

[00:34:27]
So the 27 and a half years that’s

[00:34:30]
the federal is that the longest you
can depreciate something correct.

[00:34:34]
Well, you could also expediate it or
make it faster, but, yes, the longest.

[00:34:37]
As far as I’m not an accountant,
I’ve just been telling what accounts told

[00:34:41]
me and how they helped
me with my business.

[00:34:43]
But 27 and a half years
for real estate assets.

[00:34:46]
You’d appreciate it over
all that entire time.

[00:34:48]
So in your case,

[00:34:50]
what you found is that you get a property,
rent it out and then keep that property.

[00:34:55]
You’re not on flipping properties.
No.

[00:34:58]
Well, it’s too much work.

[00:35:00]
It’s too much work.

[00:35:01]
And I’ll tell you this, James,
a lot of people read the book.

[00:35:05]
Four hour Work week.

[00:35:06]
Well, yeah, it’s for suckers, though.

[00:35:10]
I don’t want to work 4 hours a week.

[00:35:12]
I don’t even work 30 hours.

[00:35:14]
Sorry, I don’t work 30 minutes a day.

[00:35:16]
I don’t work 30 minutes a week.

[00:35:18]
I barely maybe work 30 minutes a month

[00:35:20]
on all my business, my real
estate investing business.

[00:35:22]
I just pulled my property
management statement.

[00:35:24]
I look at it and I say,
hey, everything looks good.

[00:35:26]
They’re already following
my business rules.

[00:35:28]
They’re my managers and my employees
for my business, not just employees,

[00:35:32]
contractors, technically, but once
we start, I look at the statement.

[00:35:35]
I say, hey, everyone looks good.
Put it aside.

[00:35:37]
Go back to play with my kids or getting
on podcasts like, you with you.

[00:35:41]
And so 30 minutes, literally, at most,

[00:35:44]
that’s literally the most
sometimes like, ten minutes.

[00:35:46]
It looks great.
Put it aside because I literally don’t do

[00:35:49]
anything because I’ve hired
employees or contractors.

[00:35:53]
And remember when I said,

[00:35:54]
build the business first,
a part of it also is setting up systems

[00:35:58]
and processes and procedures in that
business so that it runs without me.

[00:36:03]
I don’t want to talk to tenants.

[00:36:05]
I barely even want to talk
to my property manager.

[00:36:08]
Like, if I get a call from my property
manager, I’m like, oh, crap.

[00:36:11]
I don’t want to talk.

[00:36:12]
I don’t want to hear from you.

[00:36:13]
All I want is my check every single month
or my deposit in my bank account and talk

[00:36:19]
to you on Christmas and say, hey,
how is everything you’re doing?

[00:36:21]
Great.
Bye.

[00:36:22]
Boom.
I don’t want to talk to you.

[00:36:23]
You do my business well.
And so literally,

[00:36:25]
I go months without talking to my property
managers because everything’s going well.

[00:36:29]
I don’t need to.

[00:36:29]
So I just say, I don’t work 30
minutes a day a week, maybe a month.

[00:36:35]
It’s just so great, because
here’s one thing people might ask.

[00:36:40]
Well, hey, Dustin, it seems
like 30 minutes a month.

[00:36:43]
Can I just jump right into that,
or is that hard to get to?

[00:36:46]
Well, here’s the thing about investing

[00:36:48]
in real estate, and this
is why I teach this.

[00:36:49]
I show people, like my YouTube channel,

[00:36:52]
where I literally just give
this stuff away for free.

[00:36:54]
My podcast Master Passive Income.

[00:36:56]
Just use that name everywhere.

[00:36:57]
But anyways, I’m just literally showing

[00:36:59]
this stuff because it’s so much fun
to teach so much fun to show people.

[00:37:02]
I give all this away.

[00:37:03]
And the reason why is because I want
to show other people to do this as well.

[00:37:08]
And as I’m doing this, I’m learning
how to do my business better.

[00:37:11]
I’m showing them how to do their business.

[00:37:13]
Now, what is great with all this coaching
that I do with master passive income?

[00:37:18]
It’s now another stream of revenue
coming in as well, which is great.

[00:37:22]
But all that goes back into my real

[00:37:24]
estate, that’s literally I hold everything
in real estate. Does that make sense?

[00:37:29]
Yeah, absolutely.

[00:37:32]
I guess to answer the question that you
mentioned, someone asked, like,

[00:37:35]
Can I just flip a switch and essentially
be working 30 minutes a month?

[00:37:39]
You’ve got to build into that, I imagine.
Thank you, James.

[00:37:42]
Not the first rung of the ladder.

[00:37:44]
No, I literally lost track of where I was

[00:37:46]
going and all of a sudden
I had a point there.

[00:37:49]
But no, you brought it back up.

[00:37:52]
Okay, so the point is, people might say,
Well, actually, a lot of my students,

[00:37:56]
they come to me and say, hey, Dustin,
this building, the business is hard.

[00:38:00]
You told me you only
work 30 minutes a month.

[00:38:02]
I’m like, I know, I get it.

[00:38:04]
What it comes down to the 30 minutes

[00:38:06]
a month at most is after
I built the business.

[00:38:10]
Now, this whole process of building
the business, everything I’m telling you

[00:38:14]
talking about now, everything I
coach and I have a free course.

[00:38:17]
I’d love to give everybody, too.

[00:38:18]
But that as well.

[00:38:20]
It walk you through the process
that in building the business.

[00:38:22]
That’s the hard part.

[00:38:24]
If you call it hard, it just takes time.

[00:38:27]
It takes work.

[00:38:28]
Just like if you’re building a convenience

[00:38:30]
store or any business, for that matter,
you’re going to be interviewing people.

[00:38:33]
You’re going to be making
sure things are set up.

[00:38:35]
You’re going to be calling insurance
agents, calling a bank account.

[00:38:38]
You’re going to be doing all this.

[00:38:39]
You’re going to be doing things.

[00:38:40]
It takes a lot of work.

[00:38:42]
Now, as I’ve already built the business
and every single city that I invest in,

[00:38:47]
I build the business basically a whole
nother business is everywhere.

[00:38:50]
I invest, and my students do the same

[00:38:52]
thing because, remember,
our business has inventory.

[00:38:56]
If our business is in another state,
we can’t have that same business.

[00:38:59]
And it’s long story short,
we have businesses everywhere.

[00:39:01]
But the hard part is getting started.

[00:39:03]
Now, this is simple.

[00:39:05]
I’ll tell you this, there’s
a difference between simple and easy.

[00:39:09]
This is not easy.

[00:39:11]
If it were easy, literally,
everybody would do it.

[00:39:13]
I mean, anybody could buy something

[00:39:15]
and sell it on Ebay or create
a digital product and put it on.

[00:39:19]
I can’t remember what
that platform is called Etsy.

[00:39:22]
Anybody could do that.
That is easy.

[00:39:25]
This process, real estate
investing is simple.

[00:39:27]
Meaning it’s XYZ.

[00:39:29]
You do step one, step two, step three.
You do it right.

[00:39:32]
You follow the formula.

[00:39:33]
You’re going to do well,
but it is hard now.

[00:39:36]
Hard, in a sense, where it takes time.

[00:39:38]
Now, here’s the hardest part
that you’re going to run into.

[00:39:41]
It’s finding a property manager.

[00:39:43]
Now, I’ll tell you this,
James, it’s so sad.

[00:39:44]
So I have my YouTube channel
where I teach literally.

[00:39:47]
It’s just me teaching.
Do this.

[00:39:49]
Then do this and do this
and watch out for this.

[00:39:51]
I teach all this real estate investing

[00:39:52]
on my YouTube channel,
Master passive income.

[00:39:54]
And on there the property management
videos where I teach you how to find

[00:39:59]
property managers,
how to make sure you vet them,

[00:40:01]
how to manage them well, like all those
are the worst watched videos out of all.

[00:40:07]
But they’re the most important
videos they should watch.

[00:40:10]
The ones that are high are the ones like
how to get private sellers,

[00:40:14]
how to get private money,
how to get hard money, how to get funding,

[00:40:17]
how to get money or
properties for no money.

[00:40:19]
I’m like, you guys are starting backwards.

[00:40:21]
That’s the easy part.

[00:40:23]
I say it’s so funny.

[00:40:25]
So funny that you say that because my kid
will watch some stupid video of a guy

[00:40:30]
like trick shots or something
like that with millions of views.

[00:40:35]
You’re looking at videos where you’re

[00:40:37]
essentially giving people here are
literally the steps to take to make money,

[00:40:43]
to be able to leave your job,
to have this passive income.

[00:40:46]
And you’re like, 17 view.

[00:40:49]
No, it’s sad.

[00:40:50]
I know I’m like, man,
this YouTube nuts a hard nut to crack.

[00:40:53]
I don’t know, but I think I

[00:40:58]
love to do with my students.

[00:41:00]
I help them to be patient.

[00:41:01]
The thing is,
real estate investing just like anything.

[00:41:04]
If you went to school for four years

[00:41:06]
to College for four years,
let alone all the other years of going

[00:41:09]
to school, if you did that,
you can literally do this.

[00:41:12]
Now, I’ll tell you the time frame because
people might say, oh, man, this is hard.

[00:41:15]
Well, yes, it’s a lot of work.

[00:41:17]
But here’s what if they start coaching
with me with one on one coaching.

[00:41:20]
What they do is by the first month,
it’s learning, learning and saving money.

[00:41:24]
You should do the same thing.

[00:41:25]
Like if you’re thinking about
investing, start saving money.

[00:41:27]
Now that’s a prerequisite cut,

[00:41:29]
the expenses, get out of debt,
literally do that now, don’t put it off.

[00:41:33]
Do that now.

[00:41:34]
But then let’s say somebody starts
working with me in the first month.

[00:41:37]
It’s education.
It’s learning.

[00:41:39]
It’s developing that understanding
of how to do this business.

[00:41:42]
But what I love to do because remember,
it’s a step by step X-Y-Z.

[00:41:45]
You do step one, step two, step three.

[00:41:47]
In this process, when I tell them,

[00:41:49]
do this or this is what you should
do if they do it and implement it.

[00:41:53]
By the time that entire month is over,

[00:41:55]
they’ve learned it and implemented
a lot of the business.

[00:41:57]
So by the second month,
once I’m coaching them.

[00:42:00]
So they have the education.

[00:42:01]
Second month, we’re starting
to build a business.

[00:42:03]
That’s where we’re calling
property managers.

[00:42:04]
That’s where we’re calling up inspectors.

[00:42:06]
We’re getting insurance lined up,
getting mortgage.

[00:42:09]
We’re getting everything
in the business to build.

[00:42:11]
So education first,
then building the business.

[00:42:14]
Then once we have the business built
by the end of the second month,

[00:42:18]
we’re finding Realtors wholesalers.

[00:42:21]
We’re getting other property
managers sending us deals.

[00:42:23]
That’s when the deals come in.
So remember, deals.

[00:42:25]
Usually people think it’s the first thing.

[00:42:26]
No, that’s the last thing we do.
That the very last.

[00:42:29]
Now I literally have
deals come to my email.

[00:42:32]
If I run wholesalers,

[00:42:33]
I love buying them from wholesalers
because they do all the work.

[00:42:35]
I make all the money.

[00:42:36]
So that’s the last thing.

[00:42:38]
Once we have deals coming in, then we
buy the property put into our business.

[00:42:43]
The hard part is the learning
and the implementing.

[00:42:46]
But once you have that,
I have businesses all over the country.

[00:42:49]
And when I get an email from wholesaler
that says, hey, here’s a property.

[00:42:52]
You want to buy it?

[00:42:53]
I look at the numbers and say, hey, you’re
going to make 2000 or $3,000 from this.

[00:42:57]
I don’t care.
You’re going to make me a ton of money.

[00:42:59]
Let me go ahead and buy it from you.

[00:43:01]
It takes me literally,

[00:43:03]
since I’ve already done all this work,
I had the business built.

[00:43:05]
People already working for me.
Okay, look at the email.

[00:43:09]
Run the numbers.

[00:43:10]
I’ve done this for so long, it literally
takes me, like, 30 seconds to do it.

[00:43:13]
And then I’m like, okay,
it looks like a good property.

[00:43:14]
Send an email to my property manager
and realtor at the same time.

[00:43:17]
Check out this property.

[00:43:19]
Let me know what you think.
What does that take?

[00:43:21]
Two minutes, three minutes, five minutes.
Let’s be generous.

[00:43:23]
Ten minutes.

[00:43:24]
And then they do all their work,
which takes hours.

[00:43:27]
Come back to me.
You can rent it for this much.

[00:43:29]
This is the type of clientele
that you’re going to get.

[00:43:32]
This is the property manager,
and this is the thing big key.

[00:43:35]
If a property manager tells you I will not

[00:43:37]
manage the property light bulb,
I probably shouldn’t buy it.

[00:43:40]
So let me know if you’re
going to manage the property.

[00:43:43]
All this combine.

[00:43:44]
Then I make sure my numbers again match

[00:43:46]
up, make sure how much it’s going
to repair my property manager to tell me

[00:43:49]
how much that’s going to cost
to rehab or fix the property.

[00:43:52]
From there.
I look at that email.

[00:43:54]
Remember,

[00:43:56]
initially the first email,
second emails I get back from them.

[00:43:59]
Let’s be generous.
Another ten minutes on each email.

[00:44:01]
Then I say, Great realtor put in the offer
and then maybe a couple of back and forth.

[00:44:05]
Another ten minutes,
five to ten minutes each.

[00:44:08]
Like negotiating, getting the price
lower because I’m an investor.

[00:44:11]
Let’s say, rounded up for 30 minutes

[00:44:12]
to buy this one property then I go
to the bank or I just do it

[00:44:16]
for my computer and wire
the money to the title company.

[00:44:19]
And I’m done that’s literally
30 minutes to buy the house.

[00:44:22]
And now it’s making money perpetually
until eventually we sell it.

[00:44:25]
So it’s hard to get the business built.

[00:44:28]
But once the business is built,

[00:44:29]
they do all the work for you,
and your business pays them.

[00:44:33]
It’s amazing, smooth running machine.
I like it.

[00:44:36]
You got to tell me as far as financing,

[00:44:38]
because I know that people are
going to ask that question right.

[00:44:41]
When you’re essentially getting a loan
for property, is that difficult?

[00:44:46]
Or do you have mortgage brokers
already set up and they know

[00:44:50]
essentially they’re good working with you.

[00:44:52]
So it’s all good or I guess tell
me about that whole aspect of it.

[00:44:57]
So a lot of people think that if you’re
going to invest in real estate or even buy

[00:45:00]
a house, you do this process,
you basically get one mortgage broker

[00:45:03]
and you get one realtor and you put them
together and you buy a house and then you

[00:45:07]
add in a property manager, which obviously
I’ve already debunked that.

[00:45:09]
I told you the right way to do it.

[00:45:11]
Now this one way of getting a mortgage

[00:45:13]
broke into realtor to buy a house
for an investment property.

[00:45:15]
That’s only one of loads
and loads of ways.

[00:45:18]
In fact, I have one entire video where I

[00:45:19]
show 14 different ways to get
financing to buy a house.

[00:45:22]
So I’ll give you a quick, broad overview.

[00:45:24]
I’ve used private money,
family and friends.

[00:45:27]
I’ve used seller financing.

[00:45:29]
I’ve used signature loans.

[00:45:31]
I’ve used hard money.

[00:45:32]
I’ve also used this is advanced strategy.

[00:45:35]
I used a credit card to buy properties.

[00:45:37]
Now that credit card bought me a great
properties that made me a lot of money.

[00:45:41]
And I paid back the credit card.
It’s advanced strategy.

[00:45:43]
But because I knew what I was doing
and I counted for that’s an expense.

[00:45:47]
Let me make sure.

[00:45:48]
Even though expenses, the interest,
I made sure it’s paid for.

[00:45:52]
There’s so many more ways,

[00:45:54]
but there’s so many more ways
to actually get financing for it.

[00:45:57]
But now if you’re thinking just about like

[00:45:58]
a mortgage and a down payment,
what we got to do there,

[00:46:01]
what I like to do with my mortgages is
I look at mortgages as a commodity.

[00:46:06]
I can just go and find as many of them.

[00:46:08]
I can literally get four.

[00:46:09]
When I’m going to buy a house,
I get three or four mortgage brokers.

[00:46:13]
I talk to three or four of them and have

[00:46:16]
them tell me you could probably write
it down if you want to know this.

[00:46:18]
But the terms, what’s
the interest rates going to be?

[00:46:21]
What is the fees?
How many points?

[00:46:24]
How much is going to cost
me to actually get this?

[00:46:26]
What are the possible title fees?

[00:46:28]
How much the taxes?

[00:46:29]
I literally asked them every question
about all the money it’s going to cost

[00:46:32]
from them and how much
time it’s going to take.

[00:46:34]
It’s going to take 30 days.

[00:46:35]
It’s going to take six months,
like how much it would take.

[00:46:38]
And then I asked all three four mortgage

[00:46:41]
brokers the same exact questions so
that I can compare apples to apples.

[00:46:44]
And then I go with the right one.

[00:46:45]
But I also have the backup in case I need

[00:46:47]
to jump over because I
don’t want to lose a deal.

[00:46:49]
I make sure I go with one and I get one

[00:46:51]
the other back up as close
to going without going.

[00:46:55]
Getting the process started.
Quick pro tip.

[00:46:58]
I have all four of them,
all four mortgage brokers,

[00:47:01]
but I do not give them my social Security
number, so they do not run my credit.

[00:47:05]
What I do, they’ll say, oh,
I need to run your credit.

[00:47:08]
No, you don’t.
I know you don’t just run it as if I had

[00:47:11]
a 780 credit score because
that’s what I have.

[00:47:13]
When I’m ready to go with you, I’ll give
you my credit and they’ll say, oh, okay.

[00:47:17]
But once they have your credit,
then they’re almost locked in.

[00:47:20]
So long story short, don’t do
that because it’ll dip your credit.

[00:47:23]
But when I go with one, I go with the one
and have them run my credit.

[00:47:27]
And I always have a backup ready to go.

[00:47:29]
And at the same time,

[00:47:30]
here’s another pro tip at the same time,
I have them run the credit at the same

[00:47:34]
time because it’s the same,
basically same credit.

[00:47:37]
One hasn’t hit the other.

[00:47:38]
It won’t see the other.

[00:47:39]
Long story short,
they’re hitting at the same time,

[00:47:40]
and I have one ready to go,
but one that’s already going.

[00:47:44]
So I always want to back up.

[00:47:45]
I love being Proactive in this
business as opposed to reactive.

[00:47:49]
When you’re reactive,
you have two choices bad and worse.

[00:47:52]
When you’re Proactive,

[00:47:54]
you have lots and lots of choices,
lots and lots of options.

[00:47:57]
And also quick note that all these
different ways to do financing,

[00:48:02]
you could even couple them together,
piece them together, figure out.

[00:48:05]
Oh, I need a little bit of this over your

[00:48:06]
private money, a little bit of mortgage
or a little bit of hard money.

[00:48:09]
A little bit.
You can do this.

[00:48:10]
It’s called creative financing,
and it’s terrific real estate.

[00:48:15]
It’s so amazing that it’s
just life changing.

[00:48:19]
Nice.
That’s cool.

[00:48:20]
I like it, man.

[00:48:22]
We have eaten up some time here.
That’s cool.

[00:48:25]
How can people find you, Dustin?
Thanks.

[00:48:28]
Well, so, actually, I have a free
real estate investing course.

[00:48:30]
Do you mind if I ask?
Yeah.

[00:48:32]
Send it.

[00:48:33]
Tell us how to find it.
Yeah.

[00:48:36]
So if you text the word rental,
R-E-N-T-A-L to 33777. Rental to 33777.

[00:48:46]
I’ll give you my real estate investing
course, literally, for free.

[00:48:48]
I just want to help you out,

[00:48:49]
show you how to find an area
of the country to invest,

[00:48:51]
how to build the business first,
make sure you’re making passive income,

[00:48:54]
make sure you’re doing it right without
losing money, scaling your business,

[00:48:58]
all that sort of stuff, the downloadable
you’ll be able to get and digest.

[00:49:01]
I’ve had students literally just
take that become successful.

[00:49:04]
So get that.
You can also go to masterpassiveincome.

[00:49:07]
Comfreycourse all one wordfreecourse.

[00:49:11]
But then also I have my podcast
Master Passive Income podcast.

[00:49:15]
Youtube channel, Master Passive Income.
It’s literally.

[00:49:17]
I don’t really do interviews.

[00:49:18]
It’s just me teaching.

[00:49:19]
And here’s the interesting thing, James.

[00:49:21]
I can literally teach anybody
how to invest in real estate.

[00:49:26]
I’ve taught hundreds
and hundreds of students.

[00:49:28]
I can literally teach
anybody how to do this.

[00:49:30]
But getting them over that hurdle,
just like me with my story of getting laid

[00:49:33]
off that catalyst that jumped
me into saying I’m doing it.

[00:49:36]
I can’t do this.

[00:49:37]
I need to give away all this free content

[00:49:39]
in order for them to realize,
yes, they can do it.

[00:49:42]
So just digest all that stuff.

[00:49:44]
I also have a great podcast as well.

[00:49:46]
Just a fun passion project called
Successfully Unemployed,

[00:49:48]
where I interview great people who are
successfully unemployed in different ways.

[00:49:52]
Investing side hustles freelancing
all that sort of stuff as well.

[00:49:55]
So yeah, you can find
me all over the place.

[00:49:58]
Nice.
That’s awesome.

[00:50:00]
Dustin, I appreciate
you being on the show.

[00:50:02]
So just as a reminder,
if they text the word “rental” to 33777

[00:50:07]
that will get it as well
as masterpassiveincome.com/freecourse

[00:50:13]
Yes. That is super awesome.
Yeah.

[00:50:16]
Thank you so much for that.
Absolutely.

[00:50:18]
But I appreciate you
having me on the show, James.

[00:50:20]
It’s been fun.
I just love talking about this stuff.

[00:50:24]
I tell you when you

[00:50:26]
kind of cross the bridge or get over
the mountain, so to speak or something

[00:50:30]
like that where you’re actually
successful with a business, it makes you.

[00:50:35]
Or at least it makes me want
to share that knowledge with people.

[00:50:41]
Kind of sending the elevator
back down, so to speak it is.

[00:50:45]
And here’s one thing that a good friend
of mine told me his name is Adam Carroll.

[00:50:48]
He’s a public speaker and everything.

[00:50:49]
But he told me this that in life, what we
want to do is we want to leave legacies.

[00:50:54]
And there are four main
legacies in our lives.

[00:50:56]
Number one, we want a money legacy.

[00:50:59]
Now that money legacy is where we have
enough money to do whatever we want.

[00:51:02]
The next one is time legacy, where you can
have enough time to do whatever you want.

[00:51:08]
The next one after that is relationship
legacy, where you have solid relationship.

[00:51:13]
You get time, so you have enough money

[00:51:15]
to have the time and the time
to have the relationships.

[00:51:18]
The last one, like you just said,
James, is a service legacy.

[00:51:22]
That service legacy is now.

[00:51:24]
I feel so much better when I’m helping

[00:51:27]
my students than I ever did
buying my own properties.

[00:51:30]
I feel so much better when they are buying

[00:51:32]
their first property or they’re quitting
their job or helping have family

[00:51:37]
that needs a good place
to rent at a good price.

[00:51:40]
I love serving people.

[00:51:41]
So service Legacy if everybody watching or
listening, this can ever get there getting

[00:51:46]
that service legacy,
it’s just so fulfilling.

[00:51:48]
The more I serve, the better I feel,
the more money I make and the better

[00:51:53]
everybody else feels
and the more money they make.

[00:51:54]
So long story short, trying to get
that service legacy is just brilliant.

[00:51:58]
Yeah, it’s fun.
It’s so much fun.

[00:52:00]
I know the business coaching stuff that I

[00:52:02]
do when you see clients like you see,
they started their store,

[00:52:06]
they started their business,
they hired their first employee,

[00:52:10]
they got whatever new chunk
of software they’re making money.

[00:52:12]
Having fun.
Yeah.

[00:52:14]
That is a great feeling.
It’s so cool.

[00:52:17]
Yes.

[00:52:18]
It’s so awesome.
Yeah.

[00:52:20]
Excellent.
Well, thanks for being on the show, Dustin.

[00:52:22]
This has been Authentic Business Adventures,
the business program that brings you

[00:52:26]
the struggles, stories, and triumphant successes of business owners across

[00:52:29]
the land. We’re underwritten
by the Bank of Sun Prairie locally.

[00:52:32]
If you’re listening to this on the web,
please do us a huge favor.

[00:52:35]
Give us a thumbs up, subscribe, comment,
and of course, share it with all your

[00:52:39]
entrepreneurial or soon to be
entrepreneurial friends.

[00:52:42]
My name is James Kademan
and Authentic Business Adventures is

[00:52:45]
brought to you by Calls on Call offering
call answering and reception services

[00:52:49]
for service businesses across
the country on the web at callsoncall.com

[00:52:54]
As well as Draw In Customers Business
Coaching, offering business coaching services

[00:52:58]
for entrepreneurs looking for growth
on the web at drawincustomers.com.

[00:53:03]
And of course,
The Bold Business Book, a book for

[00:53:05]
the entrepreneur in all of us
available wherever fine books are sold.

[00:53:09]
We’d like to thank you are one
of the listeners as well as our guest,

[00:53:11]
Dustin Heiner,

[00:53:12]
the founder of Massive Passive Income
and Dustin, can you remind us again where

[00:53:17]
they should send that text
to get that free, the free goodies.

[00:53:20]
Absolutely.

[00:53:21]
“Rental” to 33777. Awesome thank you so much.

[00:53:27]
Past episodes can be found

[00:53:28]
morning, noon, and night. Podcast link found
at drawincustomer.com.

[00:53:32]
Thank you for listening.

[00:53:33]
We will see you next week.
I want you to stay awesome.

[00:53:35]
And if you do nothing else, enjoy your business.