Tell our readers a little about yourself, your blog, and your early retirement.
My name is Dustin Heiner I'm the founder of Master Passive Income. I started my blog in 2015 and I teach about real estate rental properties in 2015. I first started investing in rental properties back in 2007 just before the crash in 2009. Even though I was investing before the crash I still make money on all my properties because I invest in passive income and cash flow.
So, 2007 I purchased my first property. The first property was all cash purchase and was $17,000 total. So obviously was a very cheap home.. However, with that one property I made $400 a month after all the expenses because I did not have a mortgage on the property. Then after that property, I refinanced the property and pulled as much cash as I could out of the property to buy another one. Then once that one was rented and I was making another $400 a month in passive income, I refinanced the second property and bought two more properties with that money. Then over time, year after year, I continued buying more properties one after another. I was buying from two to five properties per year. The biggest key for me was to sacrifice things that I wanted because I knew that rental properties would change my life. he more that I had, the quicker I would be able to live the dream life. After six years of investing I had enough money to replace my income from my job. The total income was $9,600 in total rents from all my properties and at the time I had 19 of them.
Tell me about the early days. How did you get started?
The big key for my business was to start saving as much money as I could, cutting needless expenses, and increasing my income so that I can buy more properties. It is hard work but anyone can do it.
When I first started by properties I was living in California and realized how I needed to go to another state if I were to find a property that I could buy and make money on because the prices in California were so high. In 2007, I bought my first property in Ohio and now specialize in buying out-of-state properties.
The only way to really run these properties is a have property managers that do all the work for you so that you don't have to do any work at all. In 2017, I took six weeks to travel around the entire country of Japan with my four kids, my wife, and my dad. It was a fantastic trip and I didn't even need to work at all during that time. In 2018 I took another six-week trip with my four kids and my wife all through Europe. We went through 11 different countries and had an amazing time. Again, my property managers work and I didn't have to do anything.
What roadblocks did you hit along the way? Any mistakes we can learn from?
There are many mistakes that I made as I started my investing business. The first was not hiring the right property manager. The reason why was because I really didn't even know what to look for. I know how to weed out bad property managers and to keep good ones. Over time, I've developed a list of 22 questions that I walk-through every potential property manager so I know what type of person I'm going to be working with.
If you plan on hiring property manager, I strongly recommend that you interview the property managers and select one that you will be able to work with for the next five or 10 years. Someone that you trust, that works well with you, and that you even like to talk to on the phone. This is going to be a long relationship and you want to make sure you have somebody that you can rely on. Another very big lesson that I learned was that I've lost tens of thousands of dollars because I didn't know what I was doing.
If I had spent a little bit of money on coaching or an online course, I might have all the money that I wasted back in my pocket. I basically needed someone to tell me, "hey if you do this you, lose a lot of money so you probably should think twice." This is - among many other things - what I do with all of my real estate investing students now. I help them to see all the problems, issues, roadblocks because I went through them personally and now can look back and see the right way to proceed. When you think about it, coaching may cost a little bit of money but it will save you tens of thousands of dollars in the future.
God forbid you lost everything, your business, you money, etc. and had to start over, how would you do it?
If I were to start all over now without any money or any properties but only had my knowledge, I would do a few things. Number one I would save as much money as I could for investing. Number two I would cut as many expenses as I could to save for investing. Number three I would try to increase my income to save as much money as I could for investing. Number four I would sacrifice anything that would take money out of my pocket that I could not use for buying real estate. Number five I would then by as many properties as I could as quickly as possible and running them by my coach to make sure that I was buying the right properties at the right price. It's really easy to lose money in the real estate investing business if you don't know what you're doing. Also is really easy to not lose money if you know what you're doing in this business. So I suggest getting with someone that knows how to make sure you don't lose money but that you are always making money.
What's the biggest misconception about FIRE?
I find that the term FIRE is perceived differently than those of us who have actually achieved it. In order to be financially independent, retire early, you don't need to be a millionaire. You don't need to be Bill Gates or Warren Buffett or Donald Trump, all you really need to do is to replace your income from your job with passive income from your businesses. This is what I did and how I quit my job. All the rental properties that I bought allowed me to have cash flow coming into my pocket every single month in the place of the paycheck. So, to retire early or be financially independent, you don't need to be rich you just need to be able to replace your income from your job with income from a business. And believe me, being on FIRE is the absolute best feeling in the world. Knowing that you never need to work a job again is absolutely fantastic!
What books, tools, resources do you recommend to others?
If you go to my website www.masterpassiveincome.com/resources?ref=fire-stories you will see all the different tools that I recommend for real estate investing. There are many free services out there and tools that will really help you with your investing and I try to find as many as I can.
Being wealthy, I love things that are free and I try to show all my students how to use free resources to help them in their business. Also I have a list of books that I suggest to read for anyone who wants you wealthy. There are two that I strongly recommend. Number one is the richest Man in Babylon, by George S Clawson. This is a fantastic book that really helps the reader to understand the value of passive income and actually helping created. The other book I would suggest is How to Win friends and Influence People by Dale Carnegie. This is a fantastic book that helps you understand people and how to help people. Both of these books are invaluable as you grow your business. Now if you want to learn more about investing in real estate I would suggest my book, How to Quit Your Job With Rental Properties. This is a step-by-step guide that I created for people like you to see the path that they can take to quit their jobs and never work again.
Also on my website I have coaching, only courses, my podcast as well to help everyone invest in real estate rental properties. I'm just a normal everyday guy that figured out the way to get things done in make money in real estate rental properties and I'm here to help people like you change your life. There are so many things that I give away for free on my website so go there www.masterpassiveincome.com so you can learn how to invest in real estate rental properties.
And if you are interested in real estate coaching, I would love to have you apply for coaching and www.masterpassiveincome.com/coaching. I also have while my course the ultimate real estate investing system that helps everyone start investing real estate even if they had no money, no knowledge, or no business. This take people from scratch to finally having a real estate investing business.