Episode 173

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Video Episode

Master Passive Income. Dustin Heiner

Episode Description

What if you could make money while taking care of your family, lying on the beach, or skiing down a mountain?

Our next guest, Dustin Heiner, is an author, rental property expert, and Founder of MasterPassiveIncome.com. After being Successfully Unemployed at 37 by investing in real estate rental properties, he is now on a mission to use his podcast, books, courses, and coaching to help other people master passive income. Dustin helps his students build successful real estate investing businesses all over the country.

Dustin and I discuss his journey to becoming a real estate investor, finally saying goodbye to J.O.B (just over broke), and finding financial freedom.

[3:26] Growing up with the belief, “don’t go into debt.”
[8:44] Building passive income with real estate.
[15:32] Missing opportunities because it’s not cool enough.
[19:07] Your property is not your business. It’s your inventory.
[22:43] Finding experts to help you.
[26:51] Four legacies that we want to leave in our life.

Grab a free copy of Dustin’s best-selling book, “How to Quit Your Job with Rental Properties,” and start making a plan to create Passive Income in your life.

Connect With Dustin Heiner

Dustin’s Books

Expanded& Updated Edition

Episode Transcription

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[00:00:00] Bob Wheeler: Welcome to another episode of Money You Should Ask, where everyone has something they can teach you. I’m your host, Bob Wheeler. In this episode, we are going to explore why we do? What we do when it comes to money as a CPA for the past 30 years, wait, let me say 25 because that makes me sound younger.

I have seen it all when it comes to money and emotions. And if you think I’m talking about my clients, I’m not. I’m talking about myself. My relationship with money has been and sometimes still is an emotional roller coaster. Maybe that’s something you’re also familiar with. Good news, you and I are not the only ones. Our next guest is going to share their money beliefs, money blocks and life challenges as well. Buckle your seatbelt and enjoy the ride.

[00:01:06] Bob Wheeler: Our next guest Dustin Heiner is a rental property expert and founder of masterpassiveincome.com After being successfully unemployed at 37 years old by investing in real estate rental properties. He is now on a mission to use his podcast, books, courses and coaching to help other people do the same thing.

Dustin helps students build successful real estate investing businesses all over the country. Dustin started masterpassiveincome.com from his home in 2015, while still being a full time employee, married with four kids owning and operating two other businesses.

And being a full time investor, he was obviously board. 2015, Dustin also wrote his first book, How to quit your job with rental properties, which quickly became a best seller. Dustin, welcome to the show.

[00:01:49] Dustin Heiner: Hey, Bob, thank you so much for having me on the podcast. I just love talking about money, because it’s not money that I love. It’s what it affords me to do in my life and be with my family and all that sort of stuff. So I really appreciate you having me on.

[00:02:01] Bob Wheeler: Absolutely. Well, we’re going to talk about that. Because there’s so many people out there that want to be able to do the things they want, and don’t quite know how to get past those blocks or beliefs. And hopefully, they’ll get some great insight today and be able to move it forward. So Dustin, first question I have for you really is when you were a kid, did you want to be a real estate mogul? Was that the idea at six years old?

[00:02:22] Dustin Heiner: That’s a great question. No, definitely not. But at the same time, I’ve always been entrepreneurial in a sense where. So my mom and my dad got divorced. And so my stepdad, he had his business, he was a contractor. So I worked for him doing framing houses in the summertime when I wasn’t at school, but my biological dad also had his own business. And so I’ve always been entrepreneurial.

[00:02:42] Dustin Heiner: And so I even had, like I started at 13 years old, had my own paper route where you have your bicycle and you get the papers, you throw them really hard and bang, the garage door, had a graphic of Website Design Company through high school and college, skateboard manufacturing business, and even a pizzeria and convenience store.

So I’ve always been trying to figure out a way to work for myself, not necessarily get away from working for somebody else. But I’ve always been entrepreneurial. So yes, from a young age, I just knew that I wanted to be independent.

[00:03:10] Bob Wheeler: And when you were growing up, and just knowing you wanted to do these different things. Did your mom, your dad, your stepdad, did they ever talk to you directly about money, was it just stuff you observed? What kind of conversations around money happened as a kid?

[00:03:26] Dustin Heiner: It really centered around, don’t go into debt. That’s literally all it was wasn’t about saving, how to make more money, how to get different streams of income, all that sort of I even know what passive income was, when I found out that was kind of crazy. But as I was going through life, it was just basically don’t go into debt, probably because my parents didn’t really know, they didn’t have good financial literacy.

[00:03:49] Dustin Heiner: We were basically lower middle class, if not even lower class, when we first asked my firstborn and started growing up, eventually, my parents got better jobs. And so they made more money, but at the same time went into debt. So they were trying to teach me not to do what they did.

[00:04:02] Bob Wheeler: That makes sense. Now, because you were starting to do your own thing and making money and paper route, stuff like that, did you get an allowance or that was just not on the table?

[00:04:13] Dustin Heiner: I want to say I got a little allowance, I don’t know $5. But when I got a paper out, they stopped doing that. Now, here’s something that I do, I definitely got to share what I do now. Like I don’t do what my parents did, because they did give me an allowance. It was very small, but it was still allowance.

But what I do with my kids now we have four kids. And so if you’re able to watch this, I got four kids in the background. And so with my four kids, what I literally do is I try to teach them because I was never taught this stuff.

[00:04:35] Dustin Heiner: Financial literacy is so fantastic. So my kids don’t get an allowance at all like it’s a privilege to be in a family and that he doesn’t get paid just to be alive like you guys have to work to and that’s your chores, but you don’t get paid for that. What they do get paid for though, is what we homeschool and I may take that back. My wife does the homeschooling my wife has the hard job of homeschooling my kids I had the easy job of making money.

[00:04:57] Dustin Heiner: And so when we’re doing homeschooling them finish a book, like the math book for the semester or whatever, we pay them $10, because that’s their, I’m giving that incentive like this is your job, you get one book done and you get paid $10.

Now fast forward to what I’m teaching them is, we make $10, or make any money at all, this is what we’re going to do, we’re going to figure out how to deviate that up, which is what I wish I’d been taught.

[00:05:19] Dustin Heiner: I wish I was taught, but first 10% goes to God, like goes to church goes to giving, 10% is for other people, then 50% of the whole, we put into savings. And we also put in a savings account, they could see the computer and see oh, we made 20 cents this month, that’s great, or what other little kids, so 50% goes to savings.

But at the same time 20% of the whole goes to mommy, not them goes to mommy to help pay for responsibilities, like food on our table, electricity, bed sheets, all that sort of stuff that they realize that just because you make money doesn’t mean you get to spend it on whatever you want.

[00:05:55] Dustin Heiner: We have responsibilities, the last 20%, they could do whatever they want with it, put in savings, give it to God give it to mommy spend it themselves. It’s been a blessing where my kids even at the same time, like, you know what I’m going to give mommy an extra dollar.

This time. I’m like, well, that’s so great, or I want to give more to church or put more into savings or put all my money in savings. So I’m really helping my kids as best I can from the very young age. Save, obviously not going to debt, because that’s a huge lesson, as well, but then also responsibilities and tithing as well.

[00:06:23] Bob Wheeler: Yeah, I think that’s great. And it’s funny that you talk about paying them for the books. You know, I’ve heard some people say, well, that’s bribing your kids, maybe. But the other thing I saw, somebody was saying, you know, I pay my kid of $1, a book he reads, and the kids read 120 books this year, and he thinks he’s ripped me off. And it’s the best investment I’ve ever made. The power of reading just can’t be overemphasized. It is just an amazing gift to be able to read.

[00:06:49] Dustin Heiner: Absolutely, and but just think about what your boss does. Your boss pays you for whatever it is that they’re requiring you to do. Maybe your boss wants you to read a bunch of books to learn to be some better, you’re getting paid to do that. Just because your kids not doing what you need. I personally think like, I get encouraged when somebody gives me an incentive to do something.

[00:07:06] Dustin Heiner: And so with my kids to, oh another thing, when we go to church, if they write down what they hear in the sermon, they get 20 minutes on the iPad, we give out minutes on the iPad very sparingly. In fact, they very rarely ever get on it. But that’s an incentive. I am not against incentivizing them. Because you’re right. If you read 120 books, you made 120 bucks, but the dollars is minuscule compared to the books that you’re reading. I’m absolutely not against utilizing incentive to help our kids to learn.

[00:07:33] Bob Wheeler: Absolutely, absolutely. And you talk about the kids have a budget, and part of it goes to Mommy, and she’s doing a lot of the hard work for sure. Did you and your wife have any conversations about money before you got married? And how do you have conversations about money now that you’re married?

[00:07:50] Dustin Heiner: Okay, so let me also give you a little story about something that happened to us that really catapulted me and to be where I am today, quote, unquote, being successfully unemployed, I retired to quit my job when I was 37 years old. Now, I just have businesses and stuff like that. But let me if you don’t mind, I can tell you a quick story that helps us get in this direction. So before we got married, we were talked a lot about money. She was a saver. She’s very frugal, which I’m super blessed.

[00:08:13] Dustin Heiner: I have some friends that say, Oh, my wife, she just spent $1,000. I just looked at the credit card. Same like where did this $1,000 goes, my wife’s the opposite. She’ll say, Hey, honey, call me up. Can I buy this thing? It’s like $2.50. I’m like, yes, absolutely. Go right ahead babe, and so I’m blessed in that regard. So she’s a saver, but I again, remember I wasn’t I’m just don’t go into debt. That’s the biggest thing that I want to make sure that I didn’t do. And so that was a big conversation.

[00:08:38] Dustin Heiner: And at the same time, I read the book called ‘Rich Dad, Poor Dad’, which is a terrific book.

[00:08:43] Bob Wheeler: Everybody should read it

[00:08:44] Dustin Heiner: 100%. You want to build passive income, where you work one time, and you get paid over and over and over and over again. And that blew my mind. Because we’re all taught, I’m taught, when you go to school, you go to school, get good grades, go to college, get good grades, then get a job, get good reviews, and you retire when you’re 65 years old and that never sat well with me.

[00:09:04] Dustin Heiner: But then when I read ‘Rich Dad, Poor Dad’, I was like, oh my goodness, like there’s another way, let me see if I can figure this out. But here’s a quick story that I want to share with you that got us into this direction of where we are now. So the conversations that we have now about money is almost like non-existent because we’re blessed to be able to make money from the real estate that we own, where we obviously were frugal, that’s number one.

[00:09:24] Dustin Heiner: We save two on top of that could be implemented that into our lives, but we’re also making a lot of money where it’s like, well, we don’t live above our means we just keep saving the rest of money. So here’s what catapulted us into being where we now have a plenty of money.

So I’m working a regular county job or you know, regular nine to five job I’m worked for in California working for a county there in California doing IT or technology work, and we’re having kid after kid, I’m still being entrepreneurial, but I’m still focused on that full time.

[00:09:52] Dustin Heiner: I call it JOB ‘Just Overbrook Job’. And so once we had our fourth child and I go on paternity leave with that fourth child, that’s the dad stays home with a mom and bonds with the baby changes poopy diapers and stuff like that. And you’re gone for about a week. And so I come back and the week that I get back,

I get a call from my Boss’s, Boss’s, Boss’s Secretary like the top dog. His secretary gives me a call and says Dustin, would you please come to the boss’s office? And I was like, Okay, I hung up the phone. I thought, oh man, this is Friday at 3:30. This is weird.

[00:10:24] Dustin Heiner: I normally don’t get called the boss’s office in general. Like, I wonder what’s going on. And as I’m sitting there, I pause for a second. And I start thinking, man, about two months ago, before I went on maternity leave, there was some rumors, or some rumblings going on that there could potentially be layoffs. And I immediately shut that off. I’m like, no way.

I’ve got 12, 13 years seniority here, like I’m doing really well. They give me raises all the time. I shut that off. So I get up, and I walk down the hallway to the boss’s office.

[00:10:50] Dustin Heiner: And as I walk down the hallway, Bob, even though it’s a short hallway, it feels like it gets longer and longer and longer. And it feels like my feet turn into lead or concrete bricks, as I walk in gets harder and harder. Because it’s starting to dawn on me that I could potentially get laid off, like the weight of the world is starting to come on my shoulder because my wife just had our fourth kid like literally two weeks prior.

[00:11:11] Dustin Heiner: So I got three kids in the new baby on. And so as I’m walking down the hallway, these things are going through my head, but then I turn the corner, and I get to my boss’s office, his doors closed but I see his secretary right there. And she’s a super nice lady. And sheepishly, she grins at me and says, Dustin, would you please have a seat? And I go and sit down and she’s consoling me with her eyes because she knows everything about what’s going on.

[00:11:34] Dustin Heiner: I know nothing about what’s going on. And as I’m sitting there, I start thinking about my children. I start thinking about all these years that I built towards working to have a career or thinking, is this all going to be taken away from me? Like, what is that time wasted? And I started really thinking, what does that make me if I can’t feed my family? What does that make me as a father? Does that make me a failure as a father? Does that make me a failure, as a husband as a man trying to provide for his family?

[00:12:03] Dustin Heiner: Well, as I’m sitting there, my hands get all clammy, my forehead gets all sweaty because it’s really starting to eat at me. And then the door to my boss’s office opens up and out, walks it coworker, a lady with a piece of paper in her hand.

And she’s noticeably distraught, noticeably upset, but she’s not necessarily crying. But you can tell her world has absolutely been rocked, as she passes by me, my boss’s Dustin, would you please come into the office. So I go into his office, and I get laid off.

[00:12:32] Dustin Heiner: And remember, this is the government, nobody gets fired or laid off from the government but I did. And the saying is absolutely true. It’s not if you get laid off or lose your job, it’s when it’s going to happen. So I take that layoff notice. And I walk back to my desk, and I sit down and I realized two things right then and there, Bob, and I want everybody else to also kind of get this idea inside them, like learn from my mistake, or learn from what I did.

[00:12:57] Dustin Heiner: So the first one thing that I learned or realized that, I need to get other job, I need to be able to provide for my family put food on the table, roof over our heads. So what I did was, I was blessed to get another job in another department. I called around and another department in the county, so I didn’t actually get laid off, it was fantastic. The second thing this is what I would love everybody to realize is that your value is so much more than anybody could ever, ever pay you.

[00:13:21] Dustin Heiner: And the reason why you know this, you actually can notice, your boss is only paying you just enough to keep you working without quitting, but not so much that’s taking money out of their pocket. And so if you realize this, your value is worth so much more anybody could pay you, you start realizing oh my goodness, when somebody asks me the question, Dustin, what is it that you do?

I used to say, I work for the county government, I do IT. They’re basically asking me the value that I put on myself, I was putting in my job. From that point forward, I said, I am never going to tell anybody what my job is as my value.

[00:13:51] Dustin Heiner: I’m now going to tell everybody I am an investor, a real estate investor. I had one property, maybe two properties at the time. And I knew I wanted to do that. But I was just wrapped up in life. I said from this point forward, I’m always gonna tell everybody that I am an investor.

From that point forward, literally year after year, but property after property, every property making me and these are rental properties, buy and hold rental properties, a minimum of $250 a month in passive income after 20 to 30 properties like man, I don’t need to work anymore.

[00:14:20] Dustin Heiner: Even though I’m making $75,000 a year at this job. I can quit. So I went to my new boss, great boss and everything. I said, boss, I’m laying you off, metaphorically like I’m done just my two weeks’ notice. And Bob, I walked to my car. It’s about a mile and a half walk. I’m frugal. So I didn’t want to pay for parking in downtown Fresno was where I was working. And I felt like I was walking on clouds. I’ve walked this walk 1000 times. But if you remember the one where I walked down the hallway where my feet were led bricks.

[00:14:46] Dustin Heiner: I was walking to my car, walking on clouds knowing I would never ever need a job again because I changed my viewpoint on the value that I give myself and I set my goal is to never work for somebody again and never let somebody have the ability to rip out my ability to pay for food and mortgage and all that sort of stuff. Because of that I bought property after property eventually didn’t need to work anymore. So there’s probably got questions. But yeah, that’s what catapulted me, and everybody needs to realize your value is so much more than anybody could ever pay you.

[00:15:15] Bob Wheeler: So here, I’m going to pull from the obscure in that story, you were making 250 of property. Now, some people would say, it’s 250 bucks, I’m not gonna do it for 250 bucks, you’re working so hard, you got 250 bucks, now you get 250 bucks times, 10 times, 20 times, like it adds up.

[00:15:32] Bob Wheeler: But there are some people, I don’t know, if you see a penny on the ground, if you pick it up or leave it, there’s different philosophies on that. But to me, you give me a million pennies. I’m a happy camper, right? If I find a million pennies. And sometimes I think we discount or we miss opportunities, because it’s not pretty enough. It’s not fancy, it’s not cool. And I think a lot of this really comes down to repetitive hard work, and focus and intention and staying focused on the ball.

[00:16:00] Dustin Heiner: Yeah, you’re 100% right. Now, if you realize this, I’ll give you two scenarios, or two thoughts when it comes to rental properties being $250 a month. If you have one property, $250 a month, that’s $2,500 extra a year passive income. I literally don’t do anything. If you’ve read the book called ‘Four Hour Workweek’. I don’t do that working four hours a week is for suckers. Like I don’t even work 30 minutes a week, I maybe work 30 minutes a month on all of my rental properties.

[00:16:29] Dustin Heiner: 30 Plus properties now, maybe 30 minutes a month, because I built the business so that it runs itself. But here’s the thing, if you buy one property, that’s $250 a month, that’s $2,500 a year 10 properties is $2,500 a month, that’s $30,000 a year without working 20 properties is $5,000 a month without working $60,000 without working and again, here’s the second part of it. I started buying properties in 2006. I bought him one time, I don’t do any more work from then it’s 2000 and almost 22 now.

[00:17:03] Dustin Heiner: All those years, I’ve made $250 like clockwork, every single month, $2,500 a year, what does that come out to like 50 $60,000 in the last, you know, what’s like 12, 15 years, something like that and that’s just one property. So if you keep thinking about like you said, Bob, you want to think about a million pennies is a million dollars. We just got to keep moving forward. But here’s the biggest thing. I learned passive income, you do work one time, you get paid over and over again. That’s what I love about real estate.

[00:17:31] Bob Wheeler: So here’s the question though. I’m the naysayer, right? I’m terrible at picking tenants. And I always tell them, don’t worry, pay it next month, and then I’m dealing with evictions, or I didn’t realize that I needed to be more selective with my tenants, or I’m not good with plumbing. And the guy just told me it’s gonna be $20,000 to fix a leak that made these really 100 bucks. I don’t have this expertise, so I can never get into real estate.

[00:17:56] Dustin Heiner: So here’s the thing. I’m just like you, Bob, I literally can’t pick the right tenants. I try to pinch pennies, all this sort of stuff, literal, exact same thing. But here’s what I do. I build a business first, because I want other people to do the work, that’s the reason why I work 30 minutes a month is because I literally have other people do the work for me.

[00:18:16] Dustin Heiner: Maybe the example what that looks like, if you’re gonna build a convenience store, you know, can Venusaur Candy Bars and soda machines and stuff like that. This is what you’re not gonna do. You’re not gonna just lease a property or a room or a building, open the doors and put a box of candy bars in there. No, you’re not going to do that you go out of business in two seconds. What you will do though, is you’ll build the business.

[00:18:36] Dustin Heiner: First, you’ll get the gondolas, those are the shelving units that the candy bars go on, you’ll get countertops, cold storage, found machines, bank accounts, cash registers, insurance employees, before you buy any inventory. And with that business now running, you can buy inventory, put in your business, start running the business. Same thing with real estate investing, we build the entire business first, we account for everything in the business before we buy any properties.

What other people are going to tell you there are people that teach how to invest in real estate, , we buy a piece of inventory, and we put it into the business we’ve already built. That’s how we can scale it so much faster. Because the business is there. We’re not doing the work. But here’s a great thing, Bob, I’ll quickly share all my properties 30 plus properties now, I don’t pay my taxes. I don’t pay my insurance. I don’t pay my mortgage, I don’t pay my property manager. I don’t pay for repairs, my tenants pay for every bit of those expenses.

[00:19:36] Dustin Heiner: And here’s what it works out to get $250 a month, you add up all your expenses, every single thing we just added up. That’s your total, then you make sure you can rent it out for more than that. Give you example, it rents for $1,000 but your maybe your expenses are around $700 a month. That’s $300 extra in your pocket because you’ve already accounted for that. Now Newark talks about being a naysayer saying I don’t know how to pick tenants, I don’t know how to do this. I don’t know how to find this all that sort of stuff. I don’t either.

[00:20:03] Dustin Heiner: That’s why I hire experts, my property managers, this is what it looks like to build a business first, property managers, wholesalers, realtors, inspectors, plumbers, roofers, contractors, electricians, like we literally hired everybody in the business so that they do the work for us, and it’s already accounted for in the numbers before I buy the property.

[00:20:23] Dustin Heiner: Because a lot of people say, Well, I can’t afford a property manager, you know, it’s just taking money, I have to, you know, work to pay for the property manager, I’m like, then you bought the property wrong. Sad to say, you didn’t do it, right. We account for every bit of those expenses, especially a property manager so that it runs on its own before we buy the property, and we make a minimum of $250 a month in passive income.

[00:20:44] Bob Wheeler: I love all this information, because I can hear the wheels turning in people’s minds when we talk about this stuff. I’m in LA. So somebody’s gonna say, Well, I can’t buy five $2 million homes for my inventory. So do I need to be going to Bakersfield do I need to be going to Texas to buy my property, does it all need to be in my backyard?

[00:21:05] Dustin Heiner: It 100% does not. So in 2006 when I first started investing, remember 2008 was a crash, but I started investing in 2006. I live in Fresno California, I know Bakersfield because that’s literally right between Fresno and LA. But I live in Fresno, California. And even then, if I bought a house, I could not rent it for enough a high enough to make passive income. So I actually started investing in Ohio.

[00:21:26] Dustin Heiner: Now I invest in Ohio, Texas, and Arizona. And I have students that literally invest over the country. But here’s the great thing, I build the business, I make sure that the experts do the work. And they’re the ones that are gonna make sure that I do the business right. And we can do this anywhere we can do in our backyard. I personally don’t like to because I’m the type of personality I’m a doer.

[00:21:45] Dustin Heiner: So if I find out that there’s a toilet leaking over there, I’ll literally drive at 2am because I want to save some money, I’m frugal, so I’m gonna save some money to do that. But if it’s literally states away, I can’t do that I’m forced to build a business right. So all expenses are accounted for. But here’s the thing, you can duplicate this in any city that you want to invest in. So I would not suggest buying a million dollar home and making $250 a month.

[00:22:09] Dustin Heiner: If you have one mortgage payment that you know, let’s say tenants move out your one month without a mortgage payment or rent coming in, and you need to make that mortgage payment. There it goes all of your passive income. So what we like to do is like, find good properties that are lower in price, let’s say and this can shock to some people who live on the coastlines. But let’s say you buy an $80,000 house.

Yes, there are houses that are $80,000. Midwest are fantastic South East and the Carolinas and Florida, great areas that country rents are higher in a sense compared to the amount that you can actually buy it for.

[00:22:43] Dustin Heiner: Let’s say you buy a house for $80,000, it rents for maybe $1,000. But your expenses are 700, that’s $300 you can actually put in your pocket. But the biggest thing is we build a business. So we have the experts on the ground. Like somebody might go to Zillow and say Zillow, let’s look up this property. Okay, they’re asking us much this is how much we might be able to rent for Zillow is not an expert. Trulia realtor like all those dot coms. They are not the experts, who is the expert, though. It’s the person that is literally on the ground, working there living there, knowing that area, it’s so awesome.

[00:23:16] Dustin Heiner: When I bring in my property manager, a property manager, I’m gonna buy this property, at least my goal is to buy this property. Tell me how much I could rent it for what type of clientele I’m expect, you know, they can see factor how fast they’re gonna move out. And they’re gonna say, oh, man, I have the house, literally right around the corner, same exact house, it rents for, let’s say, $1,300.

[00:23:35] Dustin Heiner: Because I just got that two months ago, you could probably get $1,300 That is so much more valuable than any website, any database, because you have experts, just like any business, you want to hire the experts. I love hiring people that are smarter than me like it, Bob, you’re much smarter me and most likely all of your listeners are much smarter than me. We just need to hire the right people to do the work for us.

[00:23:56] Bob Wheeler: So we don’t have to be a rocket scientist to make this tough?

[00:23:59] Dustin Heiner: Not at all. Well, I’ll give you one quick example, Bob, like you’re an accountant. So numbers really stick in your brain. I’m the opposite of that. If I think of a number, it goes in my brain, and then literally flutters away and it disappears. It’s really sad. I feel like oh, my goodness, I just got gypped on my brain, but I don’t have to worry about that.

[00:24:18] Dustin Heiner: Because it’s simple addition, subtraction, and a little bit of multiplication, you add up your expenses, that’s your total expenses, you figure out how much you could rent it for, then you subtract the two, that’s your passive income multiplication adjust. Like I said earlier, you get 10 properties, that’s $30,000 a year, 20 properties 60, and so on and so forth.

[00:24:36] Bob Wheeler: So one of the things that I’m thinking as you’re talking and I think this goes back to mindset, and about, am I trying to have a lifestyle, or am I trying to build wealth? Because some people are going to say, well, that’s just not sexy enough. I want it to be sexy. And the reality is, when we’re building wealth, it’s not really about how sexy it is. It’s about how effective we’re doing our job. Would you agree with that, what’s your thought?

[00:25:01] Dustin Heiner: 100%, whatever sexy is in the eye of the beholder, like, it’s sure, however anybody views it, to me sexy was quitting my job at 37 years old. Like that was like, yeah, that’s fantastic. And at the same time, I also have generational wealth, but nobody listening to this, if you have a job, you cannot pass your job, your job be working for somebody else, to your kids, no, they have to be interviewed, they have to go through the exact same process of being hired, you can’t give that to your kids, all of my rental properties, all the kids in my picture in the background.

[00:25:31] Dustin Heiner: I will literally give these to my kids and teach them how to actually invest and do this, right? Any business now, because I have 40 plus hours of my life, and I’m not working for somebody else. I create business after business. In fact, right now, I’m literally creating a real estate investor conference, it’s called ‘The Real Estate Wealth Builders Conference’. And with that conference, I’m creating a whole new business employing people providing great value to people.

[00:25:53] Dustin Heiner: And this is something I potentially give to my kids. So even though it might not be sexy, I would rather be able to go play golf whenever I want, go hang out with my kids and not work for a job and be considered not sexy. Hey, that’s fine with me. I love not being sexy. I love being around my kids, I love being able to do whatever I want whenever I want.

[00:26:12] Bob Wheeler: Absolutely. And it seems to me that a lot of people out there, we want to get rich quick, we want to make these things happen. It really becomes about mindset. And one of the things in this mindset that I found, an important piece is giving back or paying it forward or giving to others. And a lot of people out I’m not here to like for me, if I’m not giving for if I’m not being of service, why do you do what you do?

[00:26:41] Bob Wheeler: Because you could just go make your money and go with your kids in the Grand Canyon, you don’t need to go help some other people, you know, you’ve got all these properties, why are you going to take your time, and do all this other stuff? Why?

[00:26:51] Dustin Heiner: A lot of people say that’s a good question. But this is actually a really fantastic question because you start to think of mindset. Now for me getting over that mindset of working one hour and getting paid an hour, that was a huge transition, then becoming an investor then becoming building businesses. And you only get this type of mindset, as you’re progressing through it. If you’re just working a day job, it’s hard to get this but let me give you example, or explain this out. So there are four legacies that we want to leave in our life.

[00:27:19] Dustin Heiner: Number one, the legacy we want is a money legacy basically, have enough money to buy whatever you want, buy the car that you want, instead of the one that you need, and travel the world or do whatever you want. So money legacy is first, where we don’t have to work for somebody else. That’s the first one. Second one is a time legacy to have the time to do whatever you want. Whenever you want, you decide your own. So that’s the second one. The third one is a relationship legacy.

[00:27:44] Dustin Heiner: So first one money. Second was time some money affords you time, time affords you a relationship legacy, being able to be with your kids, you know, Coach their little league games, or take your spouse out to dinner, you know, serve or do whatever you want. Because you have. Now time the first three have for you to do the last one. This is I’m blessed to be at this stage. Now. The last one is a service legacy. Like I could continually grow the business and just make more money. But I’m not like Rockefeller.

[00:28:08] Dustin Heiner: Rockefeller said, when he asked the question, how much money is enough, he said just a little bit more. Like that’s not for me. I’m totally fine, not being sexy and being fine. Just, you know, living my life serving people. So money affords me the time, time affords me the relationships. Now my relationships, I’m blessed to be really solid. Now I can serve as many people as possible. But here’s a great thing, Bob, in serving. It’s not like I don’t get anything back. Number one, I get back great relationships of serving other people.

[00:28:36] Dustin Heiner: I also get knowledge from learning from other people. I even just get the sense of man, I help this person out. This is so fantastic. In fact, my students when they buy their first property, I get so elated, like I bought my first property all over again. So it’s such a huge thing to be able to serve. But here’s also another great thing about service. Service, it also blesses more and more people. I found, as I figure out how to serve more people, the more people that I serve, the better my life gets, and the better other people’s lives get.

[00:29:07] Dustin Heiner: And so as I have that now service legacy, which is 100%, right, Bob, people either don’t like the quote unquote give back, or just give it shuts service. That’s really what it comes down to. If you can get to the point where you have the money, then it affords you the time before the relationships, then you have the service. It makes life so much more enjoyable, because you’re grateful for everything you have. And you’re also blessing other people at the same time.

[00:29:31] Bob Wheeler: Yeah, I think that’s so important and regardless of what you call it. I mean, I know that I had so many people that helped me along the way that it feels only right to be able to pay that forward. Because there are people that believed in me even when I didn’t believe in me and those lifts that got me to where I am. I have gratitude. I want to be able to if I can’t pay it back to them, I want to at least pay it forward.

[00:29:55] Dustin Heiner: Absolutely

[00:29:56] Bob Wheeler: Absolutely. Well Dustin, we are at our Fast Five we brought to you by Greenlight, shine a little light on the world of money with the green light debit card, an app, kids earn money through chores, set saving goals, spend wisely and invest. Parents set flexible controls and get real time notifications every time their kids spend money, check out Greenlight. Few questions 5am right here, who manages the finances in your household? Is it you, your wife, or is it a team effort?

[00:30:25] Dustin Heiner: So when we first were learning how to just make more money and build business, my wife has absolutely taken care of all finances. She’s smart, I’m not. But now honestly, when you make more money, everything goes away, like you should continue to budget but you don’t have to worry about these sorts of things. Can I afford this? Yes, you can because you make more money. So right now, my wife just focuses on homeschooling, like I said, she has the hard job of homeschooling, I got the easy job of making money. So I just make more money to fix all the problems that I come into.

[00:30:54] Bob Wheeler: There you go. That works, if you had the ability to travel back in time and change one financial decision you made, what would it be?

[00:31:01] Dustin Heiner: I think it would be to start getting passive income sooner I love passive income where I work on time, it could be writing a book and getting paid over and over again. It could be making a song, it could be creating a podcast that people listen to over and over again. Passive income, I found that when I was like 26, and I was 26 I read ‘Rich Dad, Poor Dad’ and then that’s when I said, Okay, 10 years, in 10 years, I’m gonna quit my job.

I was 37 by the time I quit my job. So I was really blessed to do that. But if I would have found it at 16, I might have quit when I was 26. So passive income is by far the number one thing.

[00:31:32] Bob Wheeler: Absolutely. How would you explain financial success to a first grader?

[00:31:38] Dustin Heiner: Financial Success for me is where you are independent of other people giving you money for the time that you put in, where you can control basically, whether or not you feed your family or not, that’s what I think financial success is.

[00:31:53] Bob Wheeler: Absolutely. Do you hope that your kids will follow you into real estate, or do you encourage them to just do whatever they want to do?

[00:32:00] Dustin Heiner: Yeah, 100% in real estate, because it’s so simple. Like I said, like, this isn’t easy. If it was easy, everybody would do real estate, but it’s a simple process, you literally just do X, Y and Z, you just need some people need like a little coaching. That’s what I also do is I help them by coaching them. Just getting that over that hurdle. In fact, one specific student said, I don’t know about buying this property.

[00:32:17] Dustin Heiner: And I’m like, if you don’t buy this, I will buy it, give it to me and like, Oh that was a catalyst to get them over to buy it. But I will absolutely teach my kids, how to do this. And here’s a big thing, Bob, I’m not going to get my kids money to go to college, I’m going to say, if you’re gonna spend 50 grand 60 grand to go to college, how about I give you a loan for 50 or $60,000 with zero interest, you buy the house, you buy your first house and you start making passive income, pay me back and then we could do all over again.

[00:32:41] Dustin Heiner: So I am absolutely for them doing that. Plus, I’m also for them figure out what type of business my daughter litter wants to be a YouTube person doing like home making stuff, making and sewing and all that stuff. My son’s want to do YouTube with outdoors, you know, hunting and all that sort of stuff. So I just encouraged him to think outside of working for somebody else.

[00:32:58] Bob Wheeler: That’s awesome. If you won the lottery, would you tell people or keep it a secret?

[00:33:03] Dustin Heiner: Oh, I would absolutely not tell anybody. I would absolutely keep it a secret, 100%. Plus, my wife is she’s very reserved when it comes to finances like all this, you know, my podcast and like, I can’t, she doesn’t want me to talk about any numbers and how much we make and all that sort of stuff. But I respect that I say okay, I’ll just keep you know, going without saying that.

[00:33:22] Bob Wheeler: That’s too funny. Okay, so we’re at our M&M moment, our money and motivation sweet spot. And I’m wondering if you have a piece of wealth wisdom, or a practical financial tip that you can share with our listeners?

[00:33:34] Dustin Heiner: Well, I love the book, richest man in Babylon. And I learned the aspect of paying yourself first because I was not paying myself first would be paying my bills, like pay the rent, or whatever it might be. That’s not paying yourself first is where you save that money. You pay yourself and you hold them that money, it doesn’t go to pay your cell phone bill or whatever.

[00:33:55] Dustin Heiner: But it allows you to use that money to make more money in the future passive income investing all that sort of stuff. So I absolutely love paying myself first. And then everybody else bills and creditors all come after that.

[00:34:08] Bob Wheeler: Yeah, absolutely, absolutely and don’t go into debt. He said something earlier.

[00:34:14] Dustin Heiner: 100%

[00:34:15] Bob Wheeler: I know this is so obvious to everybody. But when you actually spend below your means, you come out really good. And I know so many people that overestimate their income and underestimate their expenses. And they come up short all the time. If you do it in reverse, underestimate your income, overestimate your expenses, you’re gonna come out with some extra cash and you’ll be able to do the things you want to do so. Some of the stuff that I really appreciate it. I appreciate this talking about being frugal.

[00:34:41] Bob Wheeler: It sounds so much better than being cheap, which I have been accused of. I like frugal. Sometimes it is hard to part with $1 but also knowing when depart with the dollar because sometimes partying with it actually serves me much better. But the other thing I heard was even with losing the job to lay off you didn’t see it as being a victim or blaming, you in that moment found another job in another department like you didn’t let what seemingly might be a fail or an obstacle, you turn around and said, wait, how do I take this and make my lemonade basically.

[00:35:15] Bob Wheeler: So I appreciate that. And I really appreciate this piece about paying it forward being of service. I think that is so key, the more we can be grateful and humbled and pay it forward. I think the more enriched our lives are all the time without question.

[00:35:31] Dustin Heiner: Absolutely.

[00:35:32] Bob Wheeler: Dustin where can people find you online and social media, and I believe you have an offer. So please share that.

[00:35:38] Dustin Heiner: Yeah, I absolutely do. So I just love sharing with people, I just serving people showing them how to invest in real estate. So I actually have a free real estate investing course. So anybody can literally get to show you how to build the business first? How to make $250 a month? How to scale the business? How to quit your job with it? So if you text the word rental, R-E-N-T-A-L 233777. R-E-N-T-A-L 233777, or go to masterpassiveincome.com/freecourse. All one word forward slash free course.

[00:36:06] Dustin Heiner: I will literally give that to you. You can get started. I’ve had so many students just utilize that and start investing. Plus, I also have my podcast ‘Master Passive Income Podcast’. It’s literally just me teaching how to do this just it’s all I don’t do interviews this hilarious me teaching. Master Passive Income YouTube channel, same thing teaching how to do this?

[00:36:23] Dustin Heiner: But also, I have successfully unemployed podcast. That’s where I get to serve even more people. I just brought you on Bob to the podcast, where you got to share how you did it and how other people can do it to successful employees where I interview awesome people like you, Bob, experts who’ve done it that can show us how to do it. So those are just all the ways that I can give back. But yeah, you can check me out on all those.

[00:36:42] Bob Wheeler: Well, Dustin, thanks so much. I really appreciate you giving all your wisdom to our listeners and giving them some resource. I hope everybody had something to take away from this. And I look forward to seeing everybody like paying it forward and having that full life that everybody wants. Dustin, thank you again so much. I appreciate it.

[00:37:01] Dustin Heiner: Thank you, Bob.

[00:37:09] CLOSING: We hope you enjoyed this episode. Did you learn something new about your relationship to money today? Maybe you have a friend who has some financial blocks or beliefs that are holding them back. Please share this podcast so they too can get off the roller coaster ride of financial fears and journey towards financial freedom.

To learn how to have a healthy relationship with money, visit themoneynerve.com, that’s nerve not nerd. We’ll be back next week with another perspective on ‘money and the emotions that bind us’

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