Mastering Passive Income with Real Estate|Dustin Heiner - a podcast by Cody of Fly to FI and Justin aka Saving Sherpa
from 2020-06-23T07:00:58
Today's episode features Dustin Heiner from Master Passive Income
Dustin vividly remembers a march to the boss with kids waiting at home, knowing he was about to lose his job.He knew from that day, he needed to build his own income streams away from traditional employment.
30 real estate properties later and he had the freedom he always wanted.Listen, learn, and let us know what you think about this awesome episode.
Episode SummaryDustin's Background
Dustin is a serial entrepreneurWebsites, pizzeria, graphic design, and even a skateboard manufacturing gig
He refers to a traditional job as"Just Over Broke"During this journey, he stumbled upon real estate investing
His first one was profiting $350 per month and he was hookedDustin learned the hard way
There weren't any good courses or coaches out there at the time
He talks about how much he learned from his mistakesBreaking Away from Tradition
Dustin also went to college just because it was what he felt like he should doThis led to a ten-year career in IT at a government agency
He walks us through the fearful moment when he realized he didn't want to rely on someone for employment ever again.
That fearful moment was when Dustin got laid off with 4 childrenHe did continue to work in IT but he swapped his perspective
From then on, he would introduce himself as a real estate investor9 years and 30 houses later, he was able to step away from that traditional career
Dustin could have stepped away earlier but admits it is tough to walk away from stabilityDustin's Real Estate Investing
Dustin started out living in CaliforniaPrices didn't make sense there so he looked out of state
He was investing in Ohio, Texas, etcOut of all the houses he's purchased, he's only traveled to see one in person
This requires a network of people you can trustThe key here is the property manager, they are the quarterback
His requirement for a house is a minimum of $250 per month profitWe also talk about renting vs owning
401ks&Real Estate Investing
Dustin talks about cashing out or borrowing from 401k to buy real estateHe actually doesn't like investing 401ks at all
This comes off his assumption that he can make so much more from real estateSo his argument isn't that 401ks are intrinsically bad
Common Real Estate MistakesNot accounting for paying for a property manager
Not putting back money for repairsBuying a house with really small margins
Buying a home in an area where everyone is leavingIn general, overestimate expenses and underestimate rental income
Key Takeaways
Your Paycheck is not your value: Companies pay you just what they need to so that you stay but they're as profitable as possible.
Overestimate the bad, underestimate the good: Dustin recommends this mindset when looking at real estate.Call to Action
Look into real estate as an investment. If your stuck on the fence, especially due to prices in your local area, then do like Dustin did and grab a property manager to invest out of state.Join the Community
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