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A replay Of Our Investment Show with Dustin Hiener
September 13, 2022 | Posted by: Michele Cummins
Warning! This show is transcripted automatically so there will be spelling mistakes throughout :)
Curtis Pope:
Here we are. Another Saturday morning it is time for the commons Real Estate Group show with local Rockstar realtor Michelle Cummings and myself Curtis Pope. Good morning, Michelle.
Michele Cummins - PREC:
Good morning, Chris. Happy Saturday once again to you
Curtis Pope:
and Happy Saturday to you. And I know we got to get right to it today because you've got a special guest.
Michele Cummins - PREC:
Yes, we do. And we have our beautiful half hour show and I want to get as much questions in as as much information from our guests as possible. So we welcome today. Dustin Heiner and Dustin Heiner. He has a really great history about him. He quit his J. OB that is an acronym for just over broke when he was 37 years old by investing full time in real estate. He is the founder of master passive income, you have to check out the website. And successfully unemployed definitely check that one out too. And he became one of the leading real estate rental property experts. Dustin wrote his first book, so cool. It's called How to Quit your job with rental properties, which quickly became a best seller. Then he began helping others on how to start investing in real estate rental properties. And we have had guests on the show before and everyone knows how much I love real estate investing and being a real realtor. I'm in a job that I believe in. And I wholeheartedly believe in that again, my motto one event is unlocking your real estate potential. So thank you for coming on, uh, being a guest on our show today. Destin, welcome.
Dustin Heiner:
Thank you, Michelle. I'm super excited to be here. And I just love not just real estate, but I also want you to force me to do I basically just hang out with my family. They just have been tired. So I don't have to work. I can just overload job. I just wouldn't I really wanted to quit that. So thank you so much for having me on the show.
Michele Cummins - PREC:
Absolutely. Chris and I are pretty excited to have you. We haven't had a lot of guests since COVID. Started for the last couple of years or so. So it's great to have you on and you are calling in from the beautiful sunny warm Arizona.
Dustin Heiner:
Is that correct? Absolutely. Yes, I am a Phoenix, Arizona.
Michele Cummins - PREC:
So we're nice. I was supposed to be there for one of the luxury forums and REMAX conferences this month actually, and I didn't get to go but I'm living vicariously right now today through you because it's a little overcast here. You know, we get our beautiful tropical weather and that I love Arizona so nice. I tend to wake up earlier when I'm in Arizona.
Dustin Heiner:
Oh yeah, there's so much sun here. It's beautiful. And in the wintertime is absolutely amazing. Like a high of like 65 degrees lows like 55. It's just perfect.
Curtis Pope:
That's where you get so many of us Canadians down there in the winter.
Dustin Heiner:
Exactly. They call them snowbirds. It's right here. They drive all around, clog up all the streets because there's so many of them around but it's great. It's like such a fantastic place to live.
Michele Cummins - PREC:
Chris, have you ever been to Phoenix, Arizona?
Curtis Pope:
I have not been to Arizona. I've been on up and down the West Coast of the US but I have not ventured far enough into check on Arizona
Michele Cummins - PREC:
yet. Definitely a stop. You have to check out well,
Curtis Pope:
I'm a big Western figure. You know, there's little little town there called tombstone that I got to check out
Dustin Heiner:
here, right? Absolutely. Super cool. There's so many things here in Arizona, especially like the Phoenix area within an hour, maybe two hour drive at most. There's so many things to see. So yeah, you should
Michele Cummins - PREC:
all the walks that you can take there. It's so beautiful. Okay, so Dustin, I wanted to get right into it. By the way, my nephew, his name is Dustin. And then I have another nephew named dusty. So I really liked your name
Dustin Heiner:
a lot. I love it. Yeah, I was my given name is Dustin. But all my friends and family and people at church. Call me Dustin because that's just what I go by. But, you know, for business. I'm like, I gotta be professional, at least somewhat. So I
Michele Cummins - PREC:
love it. It's a good name. So my first question to you is When was the moment you knew that you wanted to be a real estate investor?
Dustin Heiner:
Oh, yeah. So growing up, I've always been entrepreneurial. So you know, it's like 13 years old, I had a paper route where I would get the newspapers on my bike and saying grind stories with them. I had a graphic of website design company about a skateboard manufacturing business, a convenience store pizzeria. So I've always been entrepreneurial growing up. And as I was doing that, I thought I might as well go ahead and invest in real estate. I've heard of smart too. invest in real estate. So I bought one rental property. And I realized after buying one rental property that made me a minimum of $250 a month in passive income, this would have made me $387 A week, something like that in the first month, and I thought, that's amazing. I can't believe how much money I make from without working like literally without working. And so fast forward a little bit of time, I'm still working my normal job. So I used to work at the Fresno County, and I did it or technology work at Fresno County. That's when the county job, that's all day. And so I worked there for 10 1215 years or however long, but a long time building my career there at the same content, a few other things, but I always thought, okay, a career working here, it's gonna be fantastic. I'll be tough, right? And my wife and I, we started having a family, kid after kid unfortunately, we had our fourth child. So I gotta tell you the story because it really hits home for me how I became an investor when I made that switch to become an investor. So my wife how our fourth child, so if you're watching this, you can see it in the background and see a picture of my four children. Well, when my fourth child was born, I went on maternity leave. maternity leave is where you stay home with a mom, you bond with the baby change, diapers, all that good stuff. And then I get back after maternity leave. And that's seamless. And I get back on a Friday at about 330 in the afternoon. I get a call from my boss's boss's boss's Secretary like the top dog Secretary calls me up and says Dustin, would you please come to the office? And I said, Sure. And I hung up the phone. And I pause for a second I sit down my chair and I started think, why would they be calling me the office? This is this isn't normal. This is weird. Okay. And then I paused a little bit more longer. And I remember before I went on, potentially about two or three months prior, there were some rumors and some rumblings possible. Layoffs were coming because the department and the county was running low on money. So I immediately shut that off. I'm like, No, and I've been here for 1314 years. And I had great seniority. Nobody asked me for I get up, and I walked down the hall to my boss's office. Now, this hallway isn't very long. But every single step I take it says Mike, like my feet aren't mad bricks, they get heavier and heavier. And that hallway feels like it's getting longer and longer as I walk down the hallway, because the weight of the world seems to start falling on my shoulders because I start thinking, Oh, my goodness, if I get laid off right now, what's gonna happen to me and my family? What am I going to do? Well, I make it through the hallway, and I turn the corner, and my boss's door is closed. And the Secretary's looking at me and sheepishly, she says nothing. Would you please have a seat? So I take a seat, I smile, I said, Yes, my take a seat. And she greeted me guys kind of sheepishly and she's trying to console me with her eyes, because she knows everything that's going on. I know nothing about what's going on. And as I'm sitting there, I start thinking, if I get laid off right now, how am I going to be able to provide them with evidence, it makes me a failure as a father, a failure as a husband, as a man providing for his family, all these years of working toward this career is going to be taken away from me. Well, as I'm sitting here, my hands and get all clammy, my forehead gets all sweaty because there's just all these thoughts in my head. And then my boss's door, opens up and out walks a lady, a co worker of mine, with a piece of paper in her hands, and she's noticed that they distract. Notice we upset but she's not necessarily crying, because you could tell her world has absolutely been rocked. And as she passes by me, my boss says, Dustin, would you please come into the office, I said, Sure. And I walk in the office, and I get laid off, their legal department was running low on money. And so I get laid off, and I walked back to my desk, and I sit down and I realized two things right there, Michelle, number one, I need to get another job, I need to be able to provide food for my family group overhead. So I'm really blessed to be able to find a job very, very quickly. In the same county, another department was hiring the chef for the great job. So I was able to transfer we didn't get laid off. So that was a huge blessing. But the second thing that I learned, and I want everybody else to learn this as well, I learned that I'm gonna make sure that I never ever let this happen to me again, never have anybody have the ability to take the rug out from under me. So I can't see my family ever again. So right then and there, I made the decision to go answer your question. I made the decision right then and there to instead of when somebody asked me Dustin, what do you do? I would normally say I work for the county government. I do it work. But they're basically asking me and when they asked you that. They're asking you the value that you put on yourself, like what value do you put on yourself? And so no longer did I ever say I've worked with our county government. I now say I am an investor because I knew that something I needed and wanted to do, but I never really went full force into I want a property or two and I just didn't really go forward in it. And so this made me I now investor may so happen that 100% of my money comes from my job. That's now my side job. I am a full time investor. Now what I did was I went to work and another target property after property after property. After 30 Plus properties. I literally had so much money coming in. But even though it's making $75,000 a year, working for the county there is and I'm losing money here, I'm going to quit. And so this is Roundup, this morning show to share that I looked at my boss's office, my new boss, great boss and everything. I said, Hey, boss, I'm getting you for two weeks, notice you're getting laid off. So I leave my office in the for the last time, and I'm walking downtown Fresno, I didn't want to pay for parking. So I started about a mile and a half away. And I'm walking down this block 1000 times. And this walk, I feel like I'm walking on clouds. If you remember back, when I was walking down the hallway with red bricks, now I'm walking with my job walking on top, because everybody needs to realize this, this is when I realized, I need to get paid for the value that I bring. Because here I realized that a job is just over broken. So as everybody realizes that your boss is only paying you enough money to keep you working without quitting, but not so much that takes money out of their pocket. So you need to realize that your value is in who you are. That's my god to my family for myself. And so for everybody watching this and watching this, I want you to realize that you are worth so much more than anybody can ever pay you. And from there, I just had to buy more carbon to buy more properties eventually. I'm certainly properties. I was like, Man, this is fantastic. And I have people asking me, How can I do you show me that's when I started master passive income. So there's probably a lot of questions or you have other questions. So I'll pause there to share. That's how I got into investing. How destined and wow, and you were 37 years old when you quit that job
Michele Cummins - PREC:
on cloud, and it just hits home. My heart is so warm right now. Because what you what you did and what you share and what you give to others and to let them understand and know that they can do it too. I think anybody could could make wealth in real estate. It just takes the steps of doing it. And you know what, sometimes were some tough times we go to causes great things happen in our lives. And this is what happened to you. You were you almost see you had that feeling oh my gosh, am I going to lose my job and it made you rethink everything and that and you're asking him the j ob that just over broke? You know what you explain our hat and how you explain that. It's so true.
Dustin Heiner:
Thank you. Thank you. Yeah, it's something that as I've refined property after property, I just absolutely realize that life is so much more important than my job. And I'd rather spend it with my family. I'd rather be serving other people helping out at my church and doing other things, that when I was able to quit my job, I realized, Oh, my goodness, I could travel the world, but then I could also serve more people.
Michele Cummins - PREC:
Yeah, and that was right for you and your moment and what you were doing and what you were supposed to do, and it's amazing. Okay, when we come back from the break, I do have a few more questions for you.
Curtis Pope:
Take a quick break right now. Michelle, if people want more information about what you do as a realtor, where can they go?
Michele Cummins - PREC:
Michelle comm and.ca
Curtis Pope:
We'll be back with more right after this. Segment Number Two of the Cummins Real Estate Group show with Michelle Cummins and myself Curtis Pope. And of course, we have our special guests as well. And shall we have lots of questions to get into so I'm not gonna hold you back.
Michele Cummins - PREC:
Yay. Okay. Dustin, I wanted to ask, What do you wish you had known when you started real estate investing?
Dustin Heiner:
That is one of the best questions because I did everything wrong with micro started I literally. So I started in California when I first started investing. And I knew in 2006 When I first started investing, I couldn't buy a property and make passive income. And I had to go someplace else I flew to Ohio, all around are quickly sorry, this is don't do it this way. But rural Ohio found a property manager found a realtor, put them all together and I bought my first office was making a bit of money, then my property had just started stealing from like within six months, so it was really, really bad. So don't let that deter you. But I'm gonna tell you the right way to remember that was the wrong way. The right way, is what I wish I would have known when I first got started. Now if you remember at the beginning of the show, I said that I'm very often or No, I love business. I love business processes and making sure things run without me. I love them. So what I wish I knew and this is something I teach all of my real estate coaching students. I even have students that are in Canada, that invest in America, which is fantastic as well. And so all my students I teach them, what we do is we build the business first. So we build the business first. Now what other people might teach you, if you're going to be investing in real estate buying a rental property, they'll say buy the property, run the number If you make sure you're making 50 or $100 a month in passive income, then find somebody to fix up the property, then you find somebody to manage the property, then you find somebody to lease the property. Well, it might be enough to almost backwards, what we do, and master passive income, teach how to build the business first, and I'll show you exactly what that looks like. So if you're gonna start a convenience store, or any store, basically, you know, some drinks, candy bars, all that sort of stuff. If you're gonna start a convenience store, you're not going to sign a lease on a property and open the doors and put a box of candy bars in there. If you do that, they'll go out of business and see a second know what you do instead, is you'll get the gondolas, those are the shelving units, or get the countertops, the cold storage, the fountain machines have bank accounts, the cash registers, employee, all of that before you buy any inventory. Same thing with with real estate investing, because I didn't do that in the beginning. Now this was it was ideal, because at first, same thing with, we don't look at properties first, a lot of people say, Well, I found a bunch of Realtors, they're finding deals like that doesn't matter. If you don't have anybody to manage those properties, you're gonna be out of luck. So what we do when we build the business first, let's say we find an area of the country to invest, I invest all over the country has sent us an investor literally all over the country, no matter where they live, we've got 1000s of miles away. But when we built the business first, we find the property managers, the contractors, the realtors, wholesalers, inspectors, plumbers, roofers, insurance agents, like literally everybody in the business. Before we buy the property know what that really looks like is we are hiring experts to do this business for us. Now, if you do it backwards, the way that other people do it my opinion backwards, where you can just find a property five and you find somebody then you find somebody, when you find somebody, what's going to happen is it might turn about and this happens a lot and sadly, Skipper hate it's out there other people but I buy properties or for people that do this the wrong way. The wrong way to do it backwards in the right way is to hire the experts, because Zillow, if you look@zillow.com, that's not the expert, Redfin realtor.com, all these other sites, those are not the experts, who are the experts, those are the people on the ground, that are actively working in that. But your realtors, they are actively working in that area, they know they have their foot their ear to the ground, they know exactly what's going on with their property manager. So what we're gonna do is we're gonna build the business first, we're gonna check relative to how much he's gonna rent for military, and how much is this going to affect the type of 10am I going to do? What's the class or this area? Probably? Will you actually manage the property? Because if you get a lot of people, or I hear a lot of people, buy a property, fix it up, spend 1000s of dollars, but then try to find a property manager and can't find one, either. They're all property managers and saying, Well, I won't manage it because of a bad area, or you can't find a good one, you find one that has that bad as long as I'm one that that is what we do. We fight everybody. First, we interview them highly, highly, highly interview everybody. And then we build a business event, what it looks like is we build a business. And then we put a piece of inventory, which is one property in another. And then we can scale it by buying a second property, putting that into the business, because your property is not your business, your business owns inventory. And those properties are your inventory. So that's the thing that I wish I would have known from the very beginning.
Michele Cummins - PREC:
Where's the wisdom, it takes a village to be successful, and it takes a team, and you got to build that first. It's your foundation, and you'll be so much more successful so much quicker. Thank you for that advice. That's really good. I wanted to ask you, when you were telling your story about why you became a real estate investor, what made you decide to do that? Do you have any history? Like any family in real estate? Who did this?
Dustin Heiner:
So that's also another great question. So my dad was a contractor. So in high school growing up, I'd be working in Fresno, which is really, really hot in the summer, you know, banging nails on the slab, it's like 10 degrees. And so in general, I liked the idea of home, I thought this might be good. Your builder, but never had any realtors, any investors. I literally said, You know what I want to do, it's actually what really got me to the idea of possibly doing this in passive income was reading Rich Dad, Poor Dad, that was a fantastic book that got me thinking, eventually, I would like to do this. Then I bought my first property realize how amazing it was. I make $250 a month out here. So this is when I said I'm going to quit my job. And so I want to quit my job, but it was investing in real estate. So I realized if I make a minimum of 250 hours a month from one property, that's $3,000 a year without working never we have the other people do the work for us. 10 properties is $2,500 a month that's $30,000 a year 20 properties, it's 5000 hours, not $60,000 a year, you can scale it up from there. So no, I didn't have anybody but I said you know what, I'm going to do my best and learn from my mistakes as well as work on podcasts and books and all that sort of stuff.
Michele Cummins - PREC:
But that leads me to ask you if you don't mind sharing with us what type of real estate investments you do, and how many doors Do you have and how long do you typically keep your investments.
Dustin Heiner:
So I'll start backwards, I keep my investment almost forever. If you're looking at the big screen, like, if you're watching this, you could see my kitten in my bathroom, I literally do not invest for appreciation that that's, that's another second thing that you should not do. In fact, when I started to your children, six, the values of my houses were really high, then the crash drove me which was fine, I still made money in passive income. And then now, every single month, whether it went up, market went up, down or sideways, I make money. And with that, I realized all this passive income on my properties are literally doubling in the amount of record I can rent record for, plus the value itself has gone up, I can literally and will literally give these to my children that are my four kids, I'm gonna teach them how to do it and give the property. So number one, I don't sell them. Number two, how many properties is I have over 30 properties now. And I'm really blessed. I only have what when I was quitting my job, my wife is very, very frugal and risk averse. And so she said, Well, let's pay off boys mortgages. So now we can buy more properties with that money show no, in order for you to get rid of some of the payments of debt. So anyways, we're blessed that we have one mortgage on one property and a bundle loan, a commercial loan over 4000 properties. So all copies are literally paid for. Yeah, it's a blessing. And then the levering that types of homes, three bedroom, two bath, one card, one to two car garages, 1200 to 1500 square feet. And then I like residential, so four units, three units, two units, and one unit. I love that. Let's get the five units above it's multifamily, which is great. So you're on fantastic, a whole lot of your thing. So that's what I usually look for. And that's all over the country that.
Michele Cummins - PREC:
Okay, another question for you is what resources because I know you've written a book and you have trained and you're a consumer, can you continue your education, but what resources for maybe those new real estate investors or those wanting to invest? It's listening today? Do you advise real estate investing? What do you recommend?
Dustin Heiner:
So I definitely love podcasts. I love listening to podcasts personally. And if you're listening to this, you're probably enjoy that too. So I involved just giving out lots of free information. And so with my podcast, I literally it's literally just me teaching real estate because Michelle, you understand this, I can literally teach anybody, Ricky anybody how to invest in real estate, but getting them over that hurdle, so that they can realize that they can do it like when I lost my job realize I'm going to do it that is all on them. So what I do is I really just get so much free information from my YouTube channels in my podcast master passive income, as well as I also I have a real estate investing course I can literally get everybody for free. Do you mind if I share that with everybody? Yes, we do. Awesome. Yeah, if you go to master passive income.com, forward slash free course master cosmic comm.com forward slash, free course. It's all one word. Literally. It's a robust course. We're gonna show you how to build a business first find the right properties, hire everybody, right? scale your business, do everything right. I literally need you check the list and all that sort of stuff. I just want to help as many people get going as possible. So that's the biggest thing for me it took getting as much information, learn as much as I can. So I've been giving as much as I can. But there are also plenty of other great podcasts YouTube channel that teaches as well.
Michele Cummins - PREC:
I love podcasts, obviously. And just as so much on your drive as you're working out, in the bathtub, whatever having a walk. It's great. Thanks for that for that because there are a lot of resources out there. And thank you so much for being on our show. Wish we had longer to spend but we'll definitely have to have you back because there's a lot more questions I have for you. And I'm sure there's a lot more to share that you have to share. I'd love to be back on. Thank you. Thank you, Dustin.
Curtis Pope:
All right, let's get to this week's open houses at 571460 Morris Valley Road in Harrison mills. There's an open house today from two to 4pm Perfect two bedroom two bath rancher backing onto green space in a gated community with pool exercise room boat launch and clubhouse 600 or $97,700. Then at 35067 Swarg road and mission there is an open house today from 11am till 1pm Three bedroom one bath 800 square foot cozy rancher in shelter. COVID heartsick lake on a great sized lot. And at 1641204 0/68 Avenue Surrey. There is an open house today and tomorrow from two to 4pm It's a corner unit 13 159 square foot two bed and two bath townhome and a great complex, freshly painted ready to go $750,000 At 13010 burns road and mission. There is an open house tomorrow from 11am to 1pm Amazing 4.6 acre property with a 15 136 square foot three bedroom, two bath home and a one bedroom one bath Carriage House private and beautiful $1.2 million and 11108 Greenwood's live in Michigan, there's an open house today from two to 4pm and tomorrow from 11 to 1pm. It's a private 20 412 square foot four bed two bath artists and log home on four and a half acres and two detached workshops going for $1.8 million and at three to 578 McRae Avenue admission, you'll find it open house today from two to 4pm. It's 3187 square foot five bedroom three bath open concept home on 1.74 acre lot with a private ravine and Creek and it's listed at 1.34 9 million and an eight to three seven Tanaka terrorists and mission. There is an open house today from 11 to one and tomorrow from two to 4pm 5000 plus square foot seven bed five bath home with a two bedroom legal suite and theater room and irrigation for a professionally landscaped lot. All for $1,495,000 and at 1479 Highland Boulevard and Harrison Mills there's an open house tomorrow from two to 4pm Stunning 3300 square foot five bedroom three bath luxury ranch with amazing views of the river and mountains and that could be yours for 1.5 million. We have some price improvements at 46366 Princess Avenue in Chilliwack. You can check out this 118 172 square foot three bedroom one bedroom rancher and basement with a fully fenced private backyard and a quiet no through street. It's now ready for you at $698,900 and at 3137 Hot Springs Road in Agassi you'll find a rancher on 1.15 acres of privacy the home is immaculate three bedroom, two bath and a 29 by 23 greenhouse metal shed, red barn. Everything going on blueberry trees could be yours for $1.2 million. We have some new listings to 20675534 Brisco Street and mission. We've got Briscoe Manor 35 Plus it's an 846 square foot one bedroom, one bathroom condo and a great location. Just $340,000 and at 5744 to 44th Street in Langley. We have a private half acre in a Salmon River fabulous outbuildings heated workshop. Garage two car deep with Drive Thru door carpark. A carport and RV and boat storage in the pole barn too so plenty of space could be yours for $1,798,000 If you need more details of course you can find everything you need to know at Michele cummins.ca And join us again next week when we will talk real estate in order to unlock your real estate potential on the show real estate is maximized. Thanks for listening
If you missed last week's episode where Michele goes deep into Real Estate Commissions, please go take a listen! It's well worth it!