Layoff Your Boss through Passive Income with Dustin Heiner
My guest today is Dustin Heiner. Dustin is a successful investor and he started his real estate business from the ground up, with no money, no knowledge, and no properties. He has been able to build a business that makes him tens of thousands of dollars each month in passive income while giving him 40+ hours of his life back. With Master Passive Income, Dustin is on a mission to teach as many people as possible the step-by-step process of investing in real estate by building a business first.
We begin the episode with Dustin sharing his background story and how he got into real estate. He shares that he got into real estate when he was first laid off from his county job. Though Dustin was lucky to get another one, he realized that he defined his value in terms of his job and needed to make sure it didn’t happen again. He decided to make his job his part-time career, and he became a full-time investor. Dustin invested in real estate, and when he was 37 years old, he was able to quit his job because he had so many rental properties that brought in income. Though Dustin was making $75,000 a year from his job, he discovered that he was losing money and needed to make more money on his own.
We then talk about how Dustin found his properties when he got into real estate. He shares that in 2006 when he started investing, he was staying in California, and the price of properties was high. So, he started buying in other places with lower prices where he could still make passive income. From his experience, Dustin says that he started off the wrong way, but to do it right, you have to build the business first and then buy the inventory to put into the business. For him, he starts by finding a good city with a lot of inventory, potential properties that he can buy, then he finds the right property managers, and lastly, he finds the property itself. Dustin gets everybody that is going to run his business in before buying the property. This ensures that he gets it right and continues to make money in his new investments.
Next, we talk about Dustin’s current strategy of acquiring and buying properties. Dustin shares that he uses everybody and anybody who wants to sell him a property. He identifies himself to everybody as an investor, and by doing that, people know that he’s a buyer. He’s always looking for new properties, and one reason he’s able to capture a lot of equity is that he puts out a lot of offers. And when it comes to choosing a property, he always opts for wholesalers rather than retailers because they work hard for his cash equities. However, one of the best tips Dustin recommends when getting properties capturing equity is finding a property on sale on the MLS and then contacting the seller’s realtor to help you get the property at a discount.
We then talk about the financing side of Dustin’s investment strategy. According to Dustin, funding and managing a property fall under the same strategy. For him, he figures out tools that he can use in all parts of his business. For instance, if he needs to find a property, he needs realtors, wholesalers, other investors, and REIA groups. These are the tools and ways for him to find a property and the same thing with financing properties. He uses private money, hard money, credit card, loans, portfolio loans, mortgages, and commercials as tools, and he teaches his students to deploy them into properties. Dustin has used fourteen different ways to finance properties, but he says not all of them are a fit for every property. As an investor, you need to be problem solvers, and you need many tools to solve these problems and implement them in the best ways possible.
Lastly, we talk about the economy of scales and why Dustin spreads his investments out. Dustin's main goal initially was to quit his job and have money coming in through passive income. He realized if he bought one property, it made $250 in a month and $3000 a year, which was not worth it. On the other hand, with 10 properties, he made $2500 a month and $30,000 a year without working, and with 20 properties, he made $20,000 a month and $60,000 a year passive income. For him, he knew he had to scale his business to get more and more. However, he discovered that investing in one area can be risky, and he started diversifying to build a consistent income.
Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Dustin Heiner and get valuable information on low-risk strategies for acquiring properties and financing your projects!
Notable Quotes:
“Your value does not come from your job..”
- Dustin Heiner
“Your boss is paying you just enough to keep you working without quitting. They are not paying you for your value.”
- Dustin Heiner
“Don’t wait for your boss to lay you off, work on your passive income and instead lay them off.”
- Dustin Heiner
“Don’t let any single thing ruin your business or your family income. Embrace diversity and be on the safe side.“
- Mike Simmons
“As an investor, you need to be a problem solver and you need as many tools as possible to help you do that.”
- Dustin Heiner
“To be successful in real estate investments you have to build your business first, before buying the inventory to put into the business.”
- Dustin Heiner
Links:
Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
