SNM210: A insight to a successful business journey for investing in real estate rentals with Dustin Heiner

Dustin Heiner: What you're going to hear other people teach real estate. All they do is say you find the property, then you run the numbers. Basically, you calculate expenses, you calculate your income, you make sure you're going to make money and passive income, and then you buy it and then you find somebody to manage it. Then you get a tenant in there. That's backwards. In fact, that if you do that, you're going to actually lose money. That's the wrong way to do it.

Jonathan Green: Hello everyone. And welcome to today's episode. We have an amazing guest, Dustin, the founder and host of the master passive income, a blog, a podcast about investing in real estate, rental properties. Something very interesting to me, cause it's such a new territory. It's this desire to help people just like you to succeed. When it comes to investing in real estate rental properties, he's committed to helping those who are on their business journey by sharing insights, into how to be successful.

In real estate investing in rental properties. He values the story of each business owner and does not hide away from failures, but he's wanting to share them openly because he believes that it's important for us. Clients also learn from his mistakes and save their valuable time and money. Believe me, that speaks to me because I'd much rather learn from someone else's mistakes than my own.

Even more amazing is it Dustin beliefs, each person has unique, inspiring story that can help others start investing in real estate and fuel possibly to fuel the fire for the passion for the business they actually love. And today's going to tell us more about his inspiring story and how he quit his job and decided to never work for someone else ever again. So, let's start with that. Tell us about your last job and how you walked out that door. Oh man. Yeah.

So, on my last job I was working for the county government and as I was buying property after property I started realizing that I had enough money coming in from passive income. That's why I work one time. And then I don't have to work again because my rental properties make me money and I was working for the county government doing it work. Now I do have a small, a quick story.

I wanted to walk you guys through that really got me down the path of doing real estate investing, buying a rental property after rental property, making passive income. I was working at a tie IT department at the county government in California. My wife had our fourth kid and so we were having the baby and a week after the baby was born, I went on paternity leave.

And so, paternity leave is basically when the dad stays home with the family for a little bit to help out with the mommy and, bond with the child. So, I go on paternity leave. I come back after paternity leave and remind you, my daughter is literally, my fourth kid is literally like three or four weeks old. So, I come back from maternity leave. I was at work for about a week and it was a Friday at 3:00 PM. I get a call from my boss's secretary.

And she says, Dustin, would you please come to the boss's office? And I pause for a second. I said, sure. Okay. And I hung up the phone. I thought, why in the world would they be calling me to the office? I don't think I've done anything wrong. Everything's just going fine. So, I sit there for a second and in the back of my mind, I just remembered just random thing about a rumor about a couple of months before I went on fraternity.

There was a small rumor that there might be layoffs in the county because of limited funds. And so, with that, I get up with that in my brain. And I start walking down the hallway to my boss's office. And as I walk my feet, get heavier, they feel heavier and heavier like their lead bricks. And as I'm taking that next step, thoughts go through my head of, oh my goodness. Am I actually going to be laid off? No, I can't be laid off. Getting into denial.

And I get walking and it's not really a long hallway, but it felt like it was super long. Then I around the corner and I get to my boss's office. His door's closed. The secretary is there. She's a super nice lady. She looks at me and says, Dustin, would you please have a seat? And sheepishly she's grinning at me because she knows exactly what's going on. She can't say. But I have no clue.

So, I sit down in that chair and as I sit there more thoughts come through my head because it's just so weird. And I started thinking, oh my goodness, all this time, I've been working at this job for 10 years and I call it a job it's just over broke. I was literally living over broke working that job, but working out for 10 years, working towards something that I thought I was going to have for the rest of my life.

I'm like, I have a really good retirement and all that great stuff. Then I started thinking, oh my goodness, am I a failure? If I get laid off of am I a failure as a husband, am I a failure as a father, even as a man providing for my family. The door opens up to my boss's office and out walks a lady with a piece of paper in her hand. And that piece of paper is what she's looking at.

She's actually starting to cry just a little bit and she leaves, she doesn't say anything. And my boss says, Dustin, would you please come into my office? And I get up, I walk into his office. And I literally get laid off. I get laid off from my job and remember, I'm working for the government. Like nobody gets fired. Nobody gets laid off from the government, but I did. And as I'm walking back to my office, I realized there are two things that I need to do.

Number one, I need to get another job to provide for my family. Like I need to do that. So, I worked really hard, got a job. I was really blessed to find another job very quickly after that in the same county, just a whole other department doing very similar things, which was great. So, I never got.

But the second thing that I realized was that I needed to never ever let this happen to me again, I needed to make sure that I had protection for myself with finances that I was going to be financially independent. So, I would never, ever have to have somebody have a control over me. And so that day I decided I am now an investor. I've always wanted to be an investor. I think I had one rental property at the time, but I said, you know what?

No time ever will I ever tell anybody if they say, Hey, Dustin, what do you do? What I normally would say, I work for the county government. Now. I literally told everybody I am a real estate investor. I buy and hold rental properties. And this is what I do. So, my value is what I give myself, not what my job gives me.

And so, everybody listening to this or watching this, your value is in you where you give yourself value, not your job, not what somebody else pays you. And so, from that point, I became an investor and I started buying property after property, it was at six years, I developed 19 properties. They were making me, I think, $9,500 in gross rents. I think a total like $7,000 in passive income. And I just kept buying property after property.

And then I was able to leave and quit my job. My last day, working at my job, I had, I think, 30 properties by that time. And I've worked like a year extra just because I was nervous to quit that W2 job. And I quit. And as I'm walking out, it's about a mile walk to my car because I was working downtown. Didn't want to pay for parking, but that mile walk, which I've taken hundreds, or maybe thousands of times.

I felt like I was walking on clouds. Like it was the best walk I've ever taken. You know, compared to walking down the hallway with led feet. Now I'm walking home for the very last time and I will never, ever work a job again. I was 37 years old when I quit a job and I will never look back. Jonathan Green: Okay. So that's an amazing story, first thought in my mind when I got fired and that blizzard. So, I know what it feels like.

Made some big decisions or had a baby and suddenly you lose your job. I'm interested in how people can get into an actual real estate. Cause most people, at least for me, especially when it comes to rental properties, I think it's for like rich people who have a bunch of extra money because properties are so expensive.

Are you going in and paying like full price or are you using leverage to get your first property, how can someone start when they're not already a millionaire with a monocle? Dustin Heiner: Yeah, absolutely. In fact, I was literally living just over broke with my wife when we got married, we were married for six months and I said, you know what? I need to actually start doing something different than working for somebody else.

If you don't have a lot of money, which I literally did not have a lot of money, I think we started with 10 or $15,000. That was like the bare minimum that we had and I've taken on students. See, I also coach real estate. I coach people how to actually buy properties. And the minimum I would say is $10,000. Once you have $10,000, you can do a lot. You can buy a lot of different properties and you can make passive income.

If you have less than that, it's possible. It's just a lot of work. In fact, one of my students in six months bought seven units. He has seven rental units that are making him, I think, close to 18 or $2,000 a month in passive income from these properties. And two of them he bought with no cash. So, you absolutely can buy it with no money out of your own pocket, but it's a more advanced strategy, which I teach all my students.

If you're going to start with very little money, I'll give you a quick, easy way to do it. There's one quick and very easy way. It's called an FHA loan. It's a federal housing administration loan. Instead of putting 20% down, I'll give you a round number. It's really easy to understand this a $200,000 house. If you buy that with a regular conventional loan, 20% is $40,000. I didn't have $40,000 and most people don't have $40,000 to put down to buy a house.

But if you use an FHA loan, you could put three and a half percent down. That's only $7,000 to put down on a property. There's a little bit of caveat you have to live in there for a year. But if you live in there for six months, refinance and get out of that FHA loan, then buy another house. Then you can use that first house as a rental property. So that's one of many options.

So, you can absolutely start with very little money, or no money, but here's also another trick that I love as a professional. I love investing out of state, like very far away from me. Like literally where I am thousands of miles away. I lived in California in 2006. That's when I started buying properties. And I bought properties in Ohio. It's like thousands of miles away. All of my students, we invest all over the country. I'm currently in Ohio, Texas, and Arizona.

I have students binding the Carolinas and Florida, Tennessee, Oklahoma, all these other places you can buy these properties. And here's the great thing. You can buy properties for $40,000, $50,000. I kid you not. There are properties that are selling for 40 and 50 and $60,000, but here's the thing you don't have to live there. People that live there want to live there, even though you might not live there. There were people that would love to rent out your property.

So, if we find the right area of the country to invest and buy a right property, but pausing that quick thought of buying the right property, we need to build the business first. We need to make sure we have a business before we buy a property. I'll give you all that in just a second, but we can absolutely do that with very little money. Jonathan Green: So, then when you're buying property from far away, my wonder is, and this has always been my concern here.

How do you deal with tenants? If you're not there, how do you go have a screening process? How do you make sure they pay every month? What do you do with tenants if they decide not to pay? And you have to deal with that issue. All those things that you have to deal with normally face to face. How do you handle all that stuff? If you're so far away. Dustin Heiner: That's a fantastic question.

And the way that you do this, and let me give you the way you don't do it first, it's really quickly. I'll be able to tell you this. What you're going to hear other people teach real estate. All they do is say you find a property and then you run the numbers, basically you calculate your expenses, you calculate your income, you make sure you're going to make money and passive income, and then you buy it and then you find somebody to manage it.

Then you get a tenant in there. That's backwards. In fact, if you do that, you're going to actually lose money. That's the wrong way to do it. It's sad, but it's good for me, but it's sad that I've had so many, I bought so many properties off of "investors" like mom and pop people that have done it the wrong way. They've done it this way. Find a property, run the numbers, all that.

Let me show you exactly how to do this and you're going to do it right. You need to build the business first. That's the number one thing you must do anywhere, even if you're investing in your own backyard and you're going to have somebody manage the property or you're be able to drive to whatever you always build a business first. Now I'll give you an example of how will this would look like.

If you're going to start a convenience store, it can be in a store, sodas and candy bars and stuff. If you're going to start a convenience store, you're not going to get a big open room, open the doors up and put a box of candy bars in there and hope to run a business. If you do that, you're going to lose money. In fact, you're going to go out of business in two seconds. What you're going to do is you're going to get the shelving units.

They're called gondolas to put the candy bars on. You're going to get countertops. You're going to get fountain machines, cold storage units. You're going to get countertops, bank accounts, cash registers and employees. You're going to do all the work first before you put any inventory, like a candy bar, a box of candy bar, any inventory in there, you're going to do all that work first. And then every piece of inventory would be like a box of candy bars that you put inside that business.

Same exact thing when you're investing in real estate. You build the entire business first, you make sure that you have it to where it's going to run on its own, where it's going to make sure that you are making money every single month and you don't do any work. And then once you have that business built, then you buy one property that is just like one box of candy bar. It's a piece of inventory.

I have 30 plus properties now, and I've taught hundreds of my students how to do this. You view your properties. Remember you're not living there. It's not your home. It's a piece of inventory, just like a box of candy bar. So, you build a business first, then, and this is the step that you absolutely must take.

As you're building your business, you're going to have people like property managers, who've you completely vetted, you know that they're going to take care of your properties even before you found a property to buy. And then, this is the key that most people won't even think to do. Nobody's telling you how to do this. If they're teaching you how to do real estate. You make sure once you find a property, you have your property manager go to the property. They're already on your team.

They're already going to be employed by you. You have to go to the property, look at the property, make sure, Hey, this is how much it's going to cost to fix it up, to get it rented. And this is a likelihood, this is the area and this is how much you could rent it for. And another thing they might say is, do not buy this house. It's in a bad area. We had a house, like three doors down. We had to sell it because of this.

You want to make sure that you have the experts who are there on the ground, tell you exactly how to do it because I have so many students come to me and say, Hey, Dustin, what do you think about this city? I would say, I really don't know unless I literally invest there. I don't know. And you don't know either one of us don't know, but who does? Our experts, the ones that we find there, the experts.

And these are going to be people like property managers, easy handymen, contractors, realtors, wholesalers, inspectors, roofers, plumbers, all these other people that are going to be ready to do work way before you even have one property. And when you answer your question about the tenants and managing your tenants. Your property managers, they are the ones that are going to be taking care of these properties day in and day out.

And I kid you not, if you've ever read the four-hour workweek, that's a good book, but I don't like working four hours a week. That's just way too much. I work 30 minutes. Not a week. I work 30 minutes a month because I hire the people to do the work for me, but now here's the great thing. I buy the property and I make passive income and I account for all the expenses. So, I literally do not pay my property manager. I don't pay them.

I don't pay my taxes. I don't pay my insurance. I don't pay my mortgage. I don't pay the repairs. I don't pay any of that stuff. My tenants do. And then the difference is all that passive income that comes to me. So, you add up all your expenses and then you put your income. Let's say it's $1,300. And if you're in your expenses are a thousand dollars, that's $300 difference. That's in your pocket as passive income and your expenses are all paid like your property manager.

Jonathan Green: So, your first rental property, I think you said like a good number to start with at least $10,000. And what kind of return can you expect? So, do you expect to make like $300 a month off of that type of investment? Or what kind of numbers are realistic? Dustin Heiner: I'm going to give you the principal that you're not going to hear from anybody else. I'm going to give you this principle. Literally my first property was $381 in passive income.

Every single month from that property. I just interviewed for my podcast, the Masterclass Income Podcast. I interviewed him. He has one property making him $700 and he even has a mortgage he's making $700 a month in passive income. So instead of giving you like the ceiling, I'm going to give you the floor. I'm going to say you do not. If you're going to do it, like I do, like all my students do or are becoming wealthy doing this.

You do not buy a property unless it makes you $250 or more in passive income, every single month. That's with everything else paid for, this is $250. If you're able to watch this, my kids are in my background. You can see my kids. I have four kids. This is how we feed our kids. This is how we put a roof over our head. Is that passive income. And so, the floor is $250, but that's the floor. And that is also covering all the expenses.

Now here's the great thing. With $250 a month in passive income. If you buy one property, that's $3,000 a year in passive income. You'd be like your boss coming. Hey, I'm going to give you $3000 a year, but heck yeah, I'm not going to take that. Now. If you had 10 properties, make you $250, remember that's the minimum. 10 properties making $250 that's $2,500 a month in passive income. That's $30,000 extra a year in passive income member.

You're not doing any work, the properties and your property managers and your people you hire are. Yes, absolutely. With that $10,000, you have a couple different options, but one of the biggest ones, one of the easiest ones that I usually point my students into, if they're not going to do the FHA loan, which we can absolutely do that another option would be buying a cheaper home that still is going to be rented. So, if you're going to find a house, let's say.

Memphis Tennessee, you might find a house for $60,000. If you're going to put 20% down, that's going to be, what does that $12,000 we'll find a house for 50,000. Find a house for four 45,000, but you don't even have to pay market price. See where investors, we make money in six different ways when we buy one property. And so, if we buy it lower, we capture equity. If they're asking 60, we offer lower and they come down. Let's say they come down to 45.

From 60 to 45, we captured $15,000 in equity. Let me give you the other five really quick. So, equity capture is one way. Then you also have passive income, which I've just talked about. You have forced appreciation, you fix up a property and makes the property worth more. Market appreciation, which we know properties go up over time. You also have Tax Benefits to appreciations. Fantastic. 10 31 exchange. There's a whole other thing. You can learn all that, but here's another great one.

I had just said this a minute ago, my tenants pay for my mortgage. They pay for the insurance. They pay for the taxes, they pay the principal, they pay for the interest and pay all that. And they're buying down the rest of my mortgage. So, all that combined with that $10,000, we can absolutely get you a property. And that member of the minimum is $250 or more in passive income. Jonathan Green: Okay. It definitely sounds very interesting.

It's such a different world to the one in which I come from. All I ever think about, and that's what I look at real estate. I always look at risk before I look at anything else because you get excited by that one deal. But I know so many people, they chase the one deal until it kills them. Can you explain to me? We haven't set up, we've got a great property to make us $300 a month.

And then what happens when your tenant leaves and you're trying to fill in that gap, does the property manager automatically restart that process? Do they get paid only if the property is occupied or do you still have those bills in, if you have an empty month and two, especially like during a season. Dustin Heiner: So, there are so many different ways that property managers actually charge you. There are so many fees they have.

They're all not the same, there's just a bunch of different fees that they can charge you. Some property managers charge more, some don't charge for a certain thing. And what I always tell my students is we need to interview property managers. This is your quarterback. Actually, with my first property manager, I did this wrong. I hired the first property manager. In six months, she started stealing from me. It was like thousands of dollars. It was horrible.

I had to fire them and figure out how to do it. But yeah, you're absolutely right. So that property manager, when you hire them you need to interview a bunch of property managers, a whole process of interviewing and doing it right, finding the right property manager. But there are these fees and to answer specifically your question. Do you pay them if it's not rented? Absolutely not. In fact, that's something they're going to try to charge you.

They're going to say, Hey, if it's not rented, we get a minimum $50. I'm like, no, what's the benefit. Or what's the incentive for you to go out and find somebody in there? No, if it's not rented, I'm not making money. You're not making money. So usually this is a coaching tip I'll give you. It's what I tell my students. Everything in this business is negotiable.

Everything from the purchase price to the rental price, to negotiate with a property manager and negotiate with the title fees, like how much you're going to charge there, everything. Literally if you think, oh, Dustin said everything. I wonder if this is, yes, that is negotiable. Everything is negotiable. And so, what I usually do with my students, I tell them, okay, they have this line up. There might be a really good property manager, but they're going to charge you 50 bucks a month if it's not rented.

Tell them, I'm not going to pay that. I'm going to go with you. I, sorry. I want to go with you, but I just can't pay this if it's not rented. Can you cross that out or can we not have that charge? Usually they'll say yes, they have it in there. And most likely, most people that aren't coached that don't know what they're doing will say, okay, let's sign off and just do that.

But no, that's one of many fees that we need to watch out for. So yes, they absolutely start the entire process over. They clean out, they fix up. Clean the carpets, paint, the walls whatever's needed in the property and they list it and they get it rented again for you. Jonathan Green: Okay. So, it sounds like the critical hire is finding that person. Your property manager. Find that person who's going to be your point person in the region.

So, when you're interviewing them in a place you've never been to, what are the kinds of things do you look for? Or what are the key questions that you ask separate the good from the bad? Dustin Heiner: So, there's quite a few of them, but I'm going to give you a few of the principles. I actually have a list I give to all my students, it's a list of 20 to 22 different questions that they must ask.

So, let me give you one that you would never hear, like literally nobody would ever tell you this. When you're interviewing property managers, there's a number of questions, but here's a great one that you need to ask. Because remember I'm investing out of state, I'm investing in places I'd never been. In fact, all the 30 plus properties, I've literally only seen one of them before I bought it. All the other ones. I just count on the other people. In fact, my students never fly anywhere.

They buy property, sight unseen because they have other people send them pictures and all that good stuff. So, the number one thing that you need to ask among a couple other ones, but the first thing is if your property manager, if you were to invest in this city, if you're invest your own personal money, where would you invest? And the reason why you ask that question is because that easily shows you the entire area of the entire map.

Let's say the property manager says that the Northwest, that's a bad area. They might not say bad area, but they say that's not the best area. The Southwest that's the best area. If you buy there, that's where I would put my money. And if you ask four or 5, 6, 7, 10 property managers, that question, you're going to get a good idea of the entire area where the good and bad areas are.

Now, let me give you a few principles on the types of property managers, and you'll be able to figure out the questions. Number one, we want to make sure that they are trustworthy. Trustworthy, meaning you're going to be counting on them 100%. I count on my property managers to make sure that I'm making money so I can have food for my kids and put a roof over our heads. And so, you need to, like you said, it's a really critical hire.

So, you need to make sure that they're trustworthy. So, asking questions like, give me an example of a time where you had an experience where you as the property manager, were undercut or you didn't pay enough to the landlord that you owed money to. How did that work out? You might ask questions like that, but you want to make sure that they're trustworthy. In another way is calling references and you won't hear other people talk about it. Cause I'm so big on property managers.

I lost lots of money with my first property manager. I've definitely fine tune this, but you want to ask for references and this is how you're going to know if they're trustworthy. You want to say, give me three references and just let them know. I'm going to talk to him for literally two minutes. Like it's going to be two to five minutes just asking about you and you use them as the reference. The next thing on top of trustworthiness is communication. That is huge.

If a property manager does not get back to me within 24 hours. I'm worried, like these are my properties, this is my livelihood. And so, I make sure that they're able, or not just able, but they agree 24-hour turnaround on any communication. If it takes any longer than that, I'm going to find somebody else. And the reason why is because, like I said, I count on this to feed my family.

So, on top of that, what I also look for, so you've got trustworthiness, you have communication, figure out where they're going to be investing, but you also, and here's a pro tip. When you're interviewing these property managers, you don't want to just interview them one time and leave it at that. You want to interview them two or three times, and you want to test them by if you leave a message, how long is it going to take for them to call you back?

And remember you have not hired them yet. If you haven't hired them and they're taking 2, 3, 4 days or a week to get back to you and you haven't even hired them, how bad do you think it's going to be when they actually have your business, they have your money. Oh, I'll get to them later. No, you want to get the ones that you have great communication back and forth. I love those property managers. So those are the main ones is trustworthiness and communication.

There's other ones like ability, are they actually able to do the work if they have a hundred properties and they can literally give you the address of the different properties, you can just use the Zillow. That shows that they're capable, they're able to actually manage the properties as opposed to, they have one property and they'd never done it before. So those are the main principles that you actually have to have as you're finding your property managers. Jonathan Green: Okay.

And how do you deal with issues like repairs or damage or the sink is flooding. Does the property manager hand all that? Do you already have your handyman lined up? How does that process work? The reason why I have a property manager is for the entire running of the entire business, all the properties, everything in that area. And so, everything from replacing a tenant to managing, I don't want to get a 2:00 AM phone call. Like I don't want that.

That's what I'm paying you to do. They handle those. If there's something really bad, they'll have an emergency hotline, but if it's something that's not bad, they usually have an online maintenance form that's tenants have to put in. It goes to them. But yes, everything from beginning to end, that's what you're paying them on a monthly basis to manage the properties. Now remember. You put that in your expenses. So, you already know that your tenants are paying for that property manager.

We already account for that expense. Number one. I don't want to talk to my tenants. Number two, I don't really want to know what's going on in the properties. Just take care of it for me. As long as I trust them, like most of my property managers, I've been with them for years, and years, like 5, 7, 8, 10 years. And so, I trust them really well. But I don't really want to talk to them unless it's something that's completely necessary.

I'd rather be hanging out with my kids or do whatever I want. So yes, these property managers, they are professional. And so, you treat them like professionals, they're supposed to take care of your business from top to bottom. Okay. Is there ever the worry that like the property gets damaged and ends up costing more than you have in your repair budget? What happens if there's like a lightning strike or just something crazy? Dustin Heiner: Number one, the biggest thing is you have insurance.

So, if there's something that is like the hat or there's a flood or fire, you have insurances. So, by far you absolutely must have insurance over everything. So, we're switching a little bit from property managers to your own business model, how you're supposed to do it. Cash reserves is something that you must have in any business. This is another business, obviously I've talked about building business first. Exact same thing. You want to have cash reserves. And this is another expense that we put in our expenses.

Remember I told you, add up all your expenses and you take your income. And the difference is your passive income from the rents to the expenses. One of your expense is a cash reserve amount. What I suggest is everybody for every single property that you have until you get about five properties, then it starts becoming a little too big, but we track them here. If you have one property, you want to save 10% of the rents.

Every single month until you have one month's rent saved up. So, if you have a property at rest for a thousand dollars. Save a hundred dollars every single month. Put it aside until after 10 months, unless you've dipped into it. That's a thousand dollars. Then you can probably keep doing that or you can hold off. If you have a thousand dollars on one property, that's fairly good. That's also on top of member, you have $3,000 a year. In passive income from that one property.

So, you're setting aside these capital expenses. If an AC goes out or a furnace goes out, that's a capital expense, that's a part of the property we have to fix up. Or if there's a repair, like a flood or something like that, we also save for that as well. So, every single property, we definitely want to be saving money every single month, setting aside as cash reserves. Jonathan Green: Okay.

It sounds like you have a pretty good system, but it's definitely got me intrigued, because I live internationally. So, most of the other systems I've ever seen, like for buying real estate, it's like impossible because it's so much about being there and, like FHA loans, we actually have to live in the house, all things that I don't want to do. So, this is very interesting to me. And I appreciate you taking the time to hang out with us Dustin. How people get started.

If someone wants to take the first step, dip their toe in just to see if this is even the right type of business model for them, how could they get started? What's the first niche to look at? Dustin Heiner: If you don't mind, I'll give everybody something for free. Do you mind if I give that out? Jonathan Green: That's fine. Go ahead. Dustin Heiner: Awesome. So, the first step is to get my free real estate investing course. And so, I have it.

If you go to masterpassiveincome.com/freecourse, I literally documented everything. What you need to do, how to locate a new area of the country the best. How to find properties, how to get property managers, I believe I put a bunch of questions and the questions in there, to ask the property managers, how to fund, get money for the properties, how to run the business price, and even how to quit your job. So, I have that all in there masterpassiveincome.com/freecourse.

And even if you're on a podcast, you can even text the word rental, R E N T A L 2 3 3 7 7 7. You'll get my free course. If you go through that and you're realizing it's not for me, then you've saved yourself so much time and effort and money. If you go through and you're like, you know what, I could do this. I just interviewed a student who's 23 years old. He now has two duplexes.

It's making him like $1,300 a month in passive income and he's 23 years old. And so, if he could do that, if I could do it, you can too. So, the first thing is getting the course. Reading through it. If it's something that you really realize you can do, then yes. The next step after that is to just learn, get education, because I'm going to tell you that there are so many ways to do this business. I'll say that one more time.

There are so many ways to do this business wrong. In fact, most of the people that are teaching this, I don't hear them teaching like I teach. This is literally the course. What you're going to get. You find a property, you run the numbers. Like you just make sure you going to make passive income and then you buy the property and then you find a property manager and then they find the tenant for you. You do all that. It's all backwards. You're going to lose money.

In fact, don't do it that way. You need to learn. So, I have my podcast Master Passive Income podcast, where it's literally just me teaching how to invest. That's all it is. It's just me teaching how to invest in real estate. But that's the process you need to do. The last thing I want to give you is financially to get ready, get out of debt. Number one, absolutely. Get out of debt. Cut your expenses so you can save more money for investing.

Once you have $10,000, my goodness, we could start there and get that first property. Then we'd take that $250 or $3,000 a year. Save that to buy the next property, save that next one to buy the next property. And then sooner or later you're going to have 10 properties. You're going to make them $30,000 a month at minimum. Remember, that's the floor. We want to have a floor. So, we're always going to be making that. So that's the process that I would do.

Start learning and start saving. And then once you're ready, if you want me to help you out, I'll help you out to get that first property and build that. Jonathan Green: That was awesome. Thank you so much for spending time with us, Dustin. I know my listeners are going to be checking out and grabbing a copy of your free course, because I was just checking out your book, How To Quit Your Job With Rental Properties . It's very interesting.

I'm always excited to learn new business models because I know that for different people, different business models are the right move. And I know for some of my listeners, this is definitely going to be very exciting. Thank you so much for being here today. And I can't wait to have everyone back for another exciting episode of the Serve No Master podcast.