Real Estate Investing 101: How to Find the Best Investment Property?

Want to learn how to find the best investment properties and achieve financial freedom through real estate? In this video, Tim Jones from Foreclosure.com interviews Dustin Heiner, founder of Master Passive Income. Dustin shares his proven strategies for building a successful real estate business, focusing on cash flow, avoiding common pitfalls, and using creative financing techniques.

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Transcript

0:00: Hello everyone. My name is Tim Jones with Foreclosure.com.

0:03: Today we're joined with Dustin Heiner, founder of Master Passive Income.

0:07: Dustin quit his job at 37 thanks to passive income from real estate, and now he helps others achieve financial freedom through rental property investing.

0:15: Thank you for taking the time to speak with us today, Dustin.

0:18: What's up, Tim?

0:19: Hey, thank you so much for having me.

0:20: And yeah, I absolutely love real estate investing and it's mostly,, I mean, real estate investing is great, but it's what affords me during my life.

0:28: You know, I don't have to work for somebody else.

0:30: I like the term successfully unemployed, and with that, I could just, you know, come and talk to great people.

0:35: Like you and really live my life the way I want to live it, being successful and employed, you have 40+ hours of your life back, you know, that you're not given to somebody else.

0:43: So, but I appreciate you having me on.

0:45: That's wonderful. Well, it's always a pleasure to speak with you.

0:48:, and let's dive into today's topic. Real estate investing 101. I guess you're the best person to talk about this, but how to find the best investment property?

0:58: Well, I started investing back in 2006. This was before the crash in 2008, and I didn't know it at the time. But it was by far the best way to invest. And now, you know, in 2010 there were so many people that were going bankrupt, real estate investors that were going bankrupt because they were hoping for appreciation. They were speculating. They weren't investing for cash flow. They were getting over leverage, and we're seeing that now too, which is a bummer, but what I invested for was cash flow because I knew I could not feed my family with appreciation or equity.

1:33: What I needed was monthly passive income and so in 2006 I started buying property after property, each one making $250 500 dollars, 600 $700 a month in passive income.

1:43: And over time I had enough money coming in, but I didn't have to work for somebody else.

1:46: I was able to be able to quit my job. But that's the biggest thing was I focused on cash flow and One quick thing is so amazing that when people were going bankrupt, all those other investors that were speculating and overleveraging themselves and all that sort of stuff, they went bankrupt and I was worried in 2007, 2008, 2009.

2:04: I was worried, but I made more money, and here's the reason why is because sadly, if there's Every economy crash, people lose their job.

2:13: Well, sadly, they're going to lose their job, they're going to lose their home foreclosing their home, but what does that do to the pool of renters?

2:19: It increases the amount of renters and it also increases the amount of properties that I could buy to invest and have other people rent the property.

2:28: So I made even more money. As people were losing their homes because there was more demand, so I made more money over time.

2:36: I realized, my goodness, this is really the only way to invest. Now I invest in hotels, apartment complexes.

2:42: I have short term properties.

2:43: I had 30 plus properties in general for, you know, single buying homes, but I just bought a 355 unit apartment complex, got hotels, but it's all about cash flow.

2:51: It's all about making money every single month because that's what you're going to feed your family with, that's, that's, that's very important.

2:57: So that's probably the key factor to consider when evaluating an investment property?

3:02: Yeah, there are many other things, but that's the first and foremost thing.

3:06: Let me give you a quick example. So if you're going to start any business, you're not going to start a business that loses you money every single month. You, you wouldn't, like, let's give you an example. Let's say you're going to start a business selling candy bars, and you knew every day, all day, every day, you can sell a candy bar for $1. You know, it's just anybody, everybody's wanting to buy it, and you can buy it for 50 cents.

3:30: Well, you're gonna make 50 cents every single transaction, but you would not buy the candy bar for $2 if you only sold it for $1. Why would you do that? It's just not smart.

3:38: If there are so many deals out there that you do not need to overpay for a deal and not cash flow, if you just do it right, if you're an investor, you're going to buy it with, you're gonna get equity because you're going to buy it for less than it's worth.

3:49: You're also going to make sure you account for all your expenses, even your profit, like my profit of, let's say a minimum of $300 a month.

3:55: That's what I want as profit, which means I can feed my family with that $300.

4:00: I make sure that's an expense line item just like my property manager, just like my taxes, my insurance, my repairs, capital expenses, vacancy factor.

4:07: All those are accounted for, added up, and those are my expenses. And I always add, like, I'm not just hoping that I'd make $300 a month. No, no, no. It's a line item, just like it's an expense that you're gonna have.

4:19: So for me, when I looked at buying real estate, I thought, this is the best way, if I'm investing for cash flow. Now, there are other things, appreciation is fantastic. In fact, there are two ways you can appreciate market appreciation is fantastic just over time.

4:33: In fact, they say every 15 years, real estate doubles, which it seems like it is true.

4:38: Then another thing is forced appreciation. You buy the house and then you put money into it. Let's say you put $500 to $6000 into it, but because of that money, it's worth more, so people would pay more for it.

4:49: So it's worth, let's say, $150,000 or $20,000. So that's appreciation. That's always, you know, forced appreciation, and you also have a market appreciation. Another thing that I invest for, in fact, let me just quickly, I'll give you the other three.

5:01: So there are 6 ways that you make money when you invest and buy one property.

5:05: Number 1, cash flow. We just talked about that.

5:07: Number 2 is market appreciation. Over time, values go up.

5:10: Number 3 is forced depreciation, put money into it, make it worth more.

5:14: Another great one, equity capture. I don't pay top dollar for a property. In fact, we're putting in an offer for a $10 million property. Actually they're asking 13, but we're not going to put in a $13 million offer. We're going to put an offer for $10 million. Why? Because I'm an investor. I don't overpay for properties. I pay as much as I can that's going to make me money and passive income every single month and not overpay. So what we do is we also capture equity when we buy the property.

5:42: Another one is tax benefits. I love the tax benefits that we get from 1031 exchange, but even if you buy one house, you write off lots of expenses like your home office, your cell phone, you travel to see the property, all that sort of stuff.

5:57: And the last one, mortgage buy down. Another great thing is when I buy a house or an apartment complex or a hotel, all of the money that comes in a line item is to pay for the mortgage. Well, Those tenants are paying for the mortgage.

6:11: So what I look for in all any property that I buy is that I get all 6 of those that help me to make money, keep money, and grow in equity and buy more properties. Does that all make sense?

6:22: That makes perfect sense. And it's actually, you did a great job and the analogies were perfect. I mean, you got to be an entrepreneur when you're doing this and you got to think of the business first, so, I like your analogy about the candy bar.

6:35: That's, that's as simple as it gets and sometimes stupid simple is the best way to look at business.

6:41: That's the only way that I really think like I'm not the smartest person in the world. I know that. I love hiring people that are so much smarter than me, but as I explained. myself, I'm like, yeah, that makes sense to me. So I'm I'm glad it sticks with you at least.

6:55: It does, It does 100%. It kind of segues perfectly into my next question, which is how can investors identify undervalued properties using foreclosure listings or other sources.

7:07: Yeah, I love foreclosures. I love short sales, off-market, on-market properties. Now, here's what I do is, well, number one, I tried, and the reason why I created Master Passive Income, the brand where I coach people at a podcast called Master Passive Income, because I wanted to master it where I didn't have to work.

7:24: Passive income means you work one time, you get paid over and over again. You work very little, you get paid over rather than working for somebody else that's active income, you get, you work.

7:32: One hour, you get paid for that hour. You're basically selling your time. So instead, I want passive income. So the reason why I created massive passive income was because with mastering one property, you buy one property, but before that, you have to build a business. You have to find other people that are going to manage the property, find new properties, inspect properties, get the mortgage to finance the properties, all, all that sort of stuff.

7:55:And same thing when I'm buying real estate and I'm finding properties. I'm not finding the properties. I have other people. I have realtors sending me deals. I have wholesalers sending me deals. Other investors, property managers, title companies sending me deals, and I even look through like foreclosure.com to see, am I going to find any deals, and it could be on market, which means they're listed. It could also be off market. I look at every deal. If it's going to make me money, then I buy it.

8:22: But I personally love having so many different ways to find properties. And one quick last thing I'll say is, I've coached hundreds if not thousands of students to become successful investing in real estate. And one of the first things, and I, I had the same thought, I trust me, I'm not, I'm not,,, an outlier here. Everybody has the same thought. We always think, when we're getting started, how do we find properties and how do we fund properties, you know, get money to buy. I'd be completely honest and say those are the easiest ways, because you think they're the hardest because you don't know how to do it.

8:57: But honestly, once you build your business, if you get coaching, you have somebody show you how to build a business, they show you how to make sure that other people and other ways for you to find properties.

9:07: So funding, I've literally used 15 different ways to get financing to buy a property and finding, which means finding the property. I use so many different people from Foreclosure.com, other wholesalers, other investors, like, I have other people do this work, but the, the key thing is that I let everybody know. That I know that I'm a real estate investor. What's great is when you start telling people that you're a real estate investor, they'll say, Oh, well, tell me more, or they'll say, Oh, that's great, good for you, and then walk away. Like, if you'll get people that want to talk to you, or they'll be like, Oh, that's fine, then move on. The people that want to talk to you are absolutely going to want to keep, you know, maybe invest with you or, you know, want to learn, whatever it might be.

9:49: So when you look at Yeah, they asked me, how do I find properties? How do we find good properties.

9:55: The biggest thing for me is I find a city that I want to invest in that makes me cash flow. Right now, the Midwest is fantastic. We have Ohio, lots of places in Ohio, Indiana. I have students investing in Alabama,,, let's say Missouri, Tennessee. So there are so many great cities to invest in.

10:14: But once I do that, once I find a city, I build a business, just like if you're starting a candy bar business, you would not buy that candy bar if you don't know how to run the business. You can't get buyers and all that sort of stuff.

10:26: Well, once I find a good city, then I build the business of property managers, contractors, inspectors, plumbers, roofers,, handymen, like everybody in the business. And then I find properties.

10:39: So I'll give you a quick example. I'm buying a house in Akron, Akron, Ohio. I already have a business built and I have other people do all the work for me. Now because I already invest in Akron, I can just go to foreclosure.com and say, OK, let me look in Akron for any foreclosures, for any short sales for for whatever that's going to help me to find properties, and then I buy those.

11:00: So, if you sum everything up that I just said, you build a business that runs itself, having the experts do the work, and then#2, you have other people do that work for you, and then when you actually get those deals, you buy them because other people are helping you with the financing to the managing and all that sort of stuff.

11:21: That makes so much sense and coming from someone who sees a lot of deals and you know the term I guess is analysis paralysis where you don't know where to move, right?

11:32: You're like this seems like a great opportunity, but now what that's that what you just said makes perfect sense building the business, having the process and the system in place first.

11:42: that not only does that align you so that you can move forward, but then you're also, while you're building that business, you're becoming that community in that community, people will know you for that person, so they'll bring deals to you.

11:57: So no, that makes perfect sense in my mind and, and for someone who feels a little stuck in the process of trying to figure it out, I think that that's Helpful. Thank you.

12:06: I'm, I'm, I appreciate that. I think everybody will.

12:08: Absolutely. And analysis paralysis, we all get that. Honestly, sometimes I can even get that.

12:14: One thing that helps me though is I know a lot of other investors because I've been doing this for a long time.

12:19: I've been podcasting for,, goodness, at least 7 or 8 years now. I've met so many other really good investors that if and when I get analysis paralysis, I call up one of my friends and say, hey, here's a deal. I need another set of eyes that's impartial, has no, you know, skin in the game. Tell me what you think about this deal, and they'll give me the complete honest answer. Same thing with my students. My students, they are looking, obviously, they're learning how to invest in real estate, and then in looking, they find a property, but then they get really emotionally attached.

12:52: This is my first deal, like this is so exciting. Well, then you get emotionally attached and you don't have a subjective,, look at it, or sorry, you have a subjective, you don't have an objective.

13:02: So what happens with my students is they bring them to us, you know, the coaches, you're a master passive income, and then we, as a third party can look at that property and say, here's, like, we don't have any skin in the game.

13:12: Like we're just telling you the proper way to do it, or like if we were to buy it, or would we buy it or would we not, what are we looking for? What should we do?

13:21: So analysis paralysis, it really comes, you get out of that by experience and then having other people around you that are gonna help you get past that analysis paralysis, having an objective way of looking at it.

13:32:Well, this is what I see in the deal, and then you move forward with the best decision that you can make with all that information.

13:38: Yeah, that's, that's very helpful and very interesting.

13:41: I know a lot of people talking to a lot of people across the country, they can find some of these helpful individuals at their local Ria meetups and then there's also, I know that you yourself have your own meetups to help and educate people as well.

13:57: So I'm, I'm sure that that's,, that's a great way to kind of get a little bit more comfortable with making these big decisions, right?

14:05:, absolutely. It's, it's getting around the right people. And when, when you're around those right people, even foreclosure.com has so much good information that you just more information helps you.

14:16: Now, people might say more information will make you have more analysis paralysis. Not necessarily. For me, I need as much information as possible so I can make the best decision. If I'm not informed, I don't make the best decision. So that's what I like to do is have as much information coming in. And also, even, like you said, with, with Loris are meetups.

14:35: We have the Real Estate Wealth Village Club, the club, it's a monthly clubs that we have across the nation. We have Phoenix and Charlotte right now, but you get together monthly with other real estate investors and you just talk to each other about it, it's fun.

14:50: When you get around the right people, they love talking about deals. If you have a deal, like, yeah, tell me your deal, I'm gonna help you out because it's, it's a lonely game, you know, when you're investing. I, I kid you not, like, if,, so I lived in Phoenix for 7+ years. Met lots and lots of people. Guess how many people I knew living there invest in real estate, like 0. Nobody in that my immediate like people around me. But having a podcast, going to Rio's, or going to real estate conference, that's the conference I put on, just being around where the real estate investors are because nationwide there's a lot in your local area. It may not be that many, but you get around the right people and they are going to get excited to share with you how they did it, what they did, how you can, you know, Piggyback up of what they are doing and all that sort of stuff.

15:35: That's great. And it kind of jump into what I, you know, everybody wants to focus on how to make money, right? But everyone's got to be a little worried about the risk.

15:45: So what are some common pitfalls to avoid when purchasing a foreclosure or distressed property?

15:51: Yes. So, a lot of people would say, well, look at for foundations or look out for this part of the property. Like, they look at the property itself. For me, that's not a big deal.

16:00: The reason why, let's say, let's just jump in the foundation issue. People say, never buy a house with bad foundation, unless it's literally a sinkhole where the house is literally falling in and that's where you cannot repair. Foundations can be repaired,, roofs can be repaired. Everything can be repaired as long as you catch it.

16:18: The pitfall would be if you're going to be buying anything. If you don't get a home inspection, to know what you're buying before you buy it. I definitely never buy a house, apartment complex, hotel, or whatever, without getting at least one inspection.

16:31: Now, if it's a bigger property, you know, we just bought a $32 million apartment complex near Nashville, Tennessee. We get multiple inspections, like inspectors. So we want to make sure we have as many eyeballs. Remember, we want as much information. So we can make the best decision. So we have as many eyeballs looking at the property.

16:47: And so what I like to do is I like making sure that if I'm going to look for a distressed property or a property that's been, you know, let's say foreclosure.com or if they have a property that is not a on the market, which means it's on the MLS, then I personally either have myself go and inspect. no, let me take that back. I don't inspect properties. If you want to go look at properties, you can. I just hire other people to go look at the properties because they know more than I do.

17:12: Like my students say, hey, Dustin, you're the expert in this city or on this property. Tell me about it. I said, no, no, no, I'm not the expert. I hire experts. So what I want to show you, you go hire the experts and they'll tell you what's about the property.

17:25: So, so, for me, if, if there's any pitfalls in doing this real estate investing business, it's not the property itself, it's how you pay for the property.

17:36: Number one, Are you overpaying?

17:38: Like, like,#2, I'll quickly say number 2 because then we'll get back to it, is how you're going to manage property longevity wise, but number 1, If you overpay for a property and you have a foundation repair, well, you've blown out your budget already.

17:50: You've already paid so much money and so you can't afford the repairs. Well, if you account for that, or if you say one inspector say, hey, this foundation is looking a little questionable, then you get a foundation guy to go out there and give you a quote before, remember, key, before you buy the property, then you have the ammunition to go back to the seller. Hey, Seller, I know we agreed on $150,000 but man, this foundation is really, really bad. Now they did an inspection, and you have an inspection period, 10 days at, at minimum 10 day inspection period where you can get your earnest money back, you know, the down deposit.

18:23: So, you go back to the seller and say, hey, seller, it's going to cost $15,000 to repair it. Well, I need you to credit me the $15,000 so that we, no, I don't want, no, here, here's a pro tip. I don't have the seller to do the work because I don't know if it's going to be good or not. I say give me a credit and I will have my company do the work for me. Me because I want to make sure it's done right. Who knows? I might get a better quote from somebody else, but you want the seller to pay for it.

18:51: So that's what we do is we make sure that we're buying the right property and accounting for every expense.

18:57: Now, the quick thing, you know, we're sorry, buying it low enough, that's the biggest thing. You want to buy it so that you have it low enough to where you can afford all the repairs. The last thing, the second thing is big. How are you going to manage the property? Longevity wise, for 10-20 years and then eventually give them to your kids.

19:13:  Like I have 5 kids now. All of my properties, I would literally give these properties to my kids in generational wealth. And if you will not be able to manage a property afterwards, then you're not going to make money. I get a lot of students say, well not a lot of students, investors, and I tell somebody I'm an investor, like I told you, everybody should be doing, tell people you're an investor. And then occasionally I'll get somebody say, oh man, I bought a property. I've listened to the quote unquote gurus. They said, buy a property everywhere in the country. Well, I spent thousands of dollars to buy it, spent thousands of dollars to fix it up. Then I got a tenant in there and then I tried to call property managers, and each one were telling me they will not manage it because they'll get shot there. Like, oh shoot, you don't have an asset anymore, you have a liability. How much better would it be?

19:56: If you build the business like I told you a little bit ago, you build the business first before you buy a property. You hire the property managers and inspectors and all them before you buy a property, and then you go, even before you even look at a property to buy, you say, hey, property manager, instead of saying, I bought this property, you will manage it, they say no, and then you, you're out money and time.

20:17: Say, property manager, I'm looking to buy this property. I haven't bought it yet, but I want you to tell me, will you manage it? How much will I rent for? What's the vacancy factor? What's the clientele like crime and all that sort of stuff. They say, no, I will not manage. You don't buy it, you don't waste your time and money.

20:33: If they say yes, this is how much you'll rent it for, this is the vacancy factor, all that sort of stuff, then you have more information. to make the best decision.

20:42: So if I'm gonna say there's any pitfalls, it's buying it not with the right price, you know, you want to buy it lower so you capture that equity and a cost for any of the costs to repair. Then number 2, are you going to be able to manage it long term with a good property manager and your entire team because that biggest thing is building the business first. Does that make sense?

21:02: Spot on, spot on. You don't always have to buy the property, but you always have to do the due diligence, about right?

21:14: Totally. And that makes perfect sense. It's almost like work, my brain kind of works like that where you have to work backwards. So you're building the business and you're setting these things in place and they're almost like checks and balances where you're making sure that you, you're doing it the right way and, and I'm sure these people want the business, right? So they want to be friendly with you, the new real estate investor in town, so that that's very helpful and.

21:36: , let's jump to the next one. So how, how do you assess long-term potential of an investment property for rental income or future resale?

21:46: Yeah, so, well, I'll be completely honest, and if you talk to any real estate investor who doesn't flip, they will tell you, never sell a property. And I'll tell you the same thing.

21:57: I, I've sold properties in the past and I'm kicking myself every single time I've sold a property now, I'm like, oh, I wish I would not have sold that property.

22:05: So here's as an investor, I'm telling you, I've been doing it since 2006, I will never sell another property. I will literally give these properties to my kids.

22:14: I make money every single month because I buy it right. So that's number one. I will never sell a property.

22:19: Sorry, remind me what the whole question was again.

22:21:, assess the potential for rental income.

22:28: Yeah, so for me now. Number one, never sell a property, but the rental income. What I do to assess if a property is good enough is will I make passive income. Now you can make $250 a month. That's $3000 a year in passive income. That'd be great. If you had 10 properties, that's $30,000 a year. If you had 20 properties, that's $5000 a month, $60,000 a year at $250 a month.

22:51: That's the minimum. Like I have properties making me $1000 A month in passive income. So that's the big criteria is, will I make money every single month.

22:59: Now in order to make sure I'm going to do that for the longevity, and the beautiful thing about real estate, like I said in the beginning, I'm not the smartest person. I know that I'm not that smart, but what I can do is I can add up all my expenses and then I could talk to a property manager who's going to tell me how much I could rent it for. Then I subtract it too, and if I'm making passive income on it. Then I buy the property.

23:19: The great thing about real estate investing, your costs are basically fixed. They go up a little bit. Taxes go up a little bit. Your property management costs, insurance might go up a little bit, but your mortgage, the biggest expense, is literally fixed. The 30 year fixed.

23:32: It's so amazing. So what I look for is, am I going to make a minimum of $250 a month? Like I said, 20 properties is $60,000 a year without working, because remember, I don't, well, let me say it this way. I don't pay for my taxes on any of my properties. I don't pay for my insurance. I don't pay for my property managers. I don't pay my mortgage. I don't pay any of that stuff. Like, I don't have to get a job to pay for those things.

23:54: A lot of people ask me, Dustin, how do you afford a property management?

23:56:I don't afford them. Well, what do you mean? My tenants pay for all of those expenses. I do not buy a property unless my mortgage is paid for my property management, my taxes, insurance, all those things are paid for. And so that is what I look for for the longevity. Am I going to be making money on passive income and are all my expenses accounted for, then over time we know rents go up. We know that values go up. You can refinance, pull the cash out of the equity, and then buy more, more properties. I've done that literally dozens and dozens of times.

24:29: So that's what I look for is passive income, and am I going to be able for longevity, going to be able to give these properties to my kids and make money from day one.

24:40: Bingo. It sounds, you make it sound too easy.

24:46: Let me say it this way. So if it was easy, everybody would do it, but what it comes down to is it's simple. It's a simple thing. It, it's it's not rocket science. Like I am not an engineer. Like I, I don't have that brain. I'm not that smart, but it's a simple step by step process and you know, I, when I started master passive income, I literally had, I don't know, 4 or 5 cities. different states, like 3 states, 5 cities that I invested in, done it.

25:12: I've like replicated over and over again. Then I had friends and family members asking me how to do it, so I would just tell them the simple steps that I created in order for me to go to this next city and go in here and be successful. And then fast forward just started coaching more people.

25:26: So you're right, it's not necessarily easy, but it's absolutely simple. It's just a step by step thing you got to do.

25:33: I love it.

25:35: So what tools or resources do you recommend for real beginning real estate investors for researching and analyzing potential real estate deals?

25:45: For researching and analyzing deals,, well, if you're doing single family homes, the biggest thing that you need to know is What a good deal looks like.

25:57: So if you have all the tools in the world, and there's lots of great calculators and all that sort of stuff, companies out there, if you don't know what you're looking for, Then you're, it doesn't matter what calculator you use.

26:07: So definitely get education, get a, get a mentor, get around people that are doing it so you can understand how to do it. Give me a quick example.

26:14: Let's say you're going to buy a car, whatever car, take a car that you would might want to buy. Well, you're going to do research. You're going to look at all the cars. You're gonna see what they cost. You're gonna see what, how much it's going to cost for insurance. Like you're going to do research on everything, and when a good deal comes your way, like, oh, here. the exact car, it's a really high price, so I'm going to pass. But here's an exact car. Oh my goodness, it's now this price. Oh shoot, I missed it. Somebody else bought it. Now you know what a good deal is.

26:38: So what I look at is, am I going to make sure that when a deal comes my way, do I have the knowledge to do the due diligence?

26:47: Due diligence is calculating the numbers, making sure you have everything taken care of for, building your business.

26:53: So what I like to use is honestly really comes down to every single thing that's out there. If as long as I know what I'm doing, then I then utilize whatever platform has out there.

27:03: One quick thing is for my students, I created the one minute green light deal analyzer. It's a spreadsheet. It's a calculated spreadsheet, but in one minute you put in the address and the particulars, you know, about the property and the and your interest rate, and it literally pumps out. It gives you all the information, even how to negotiate what prices you should go with and if it's going to be a good deal.

27:24: So that's one thing, but there are so many things out there like foreclosure.com is a great way to find deals. So here, if you boil everything down, There's so many ways to find deals to fund deals. You need to go with what's best for you, like, what has actually worked for you in the past or what you think. once you stick with it, like if you just keep using foreclosure.com over and over again, you're going to find a deal.

27:46: If you don't even look at foreclosure.com, you're not gonna find a deal. So that's my suggestion is you just got to put in the effort. As soon as you know what you're looking for, dive into it and use whatever platform that you're going to be using.

27:57: Great. and you, you kind of touched on this, but You know, a lot of investors are starting with minimal capital, so what strategies for or finance options for do you like to suggest for people who are getting started with investment properties?

28:15: I was in the same boat as everybody when they get started, you start thinking, man, I work a dead-end JOB I just over broke job. I don't have any extra money. I, I've been there, trust me, I completely get it.

28:28: What you realize though, once you've been in the game for a little while and you've bought many properties with almost no money in your pocket, or sometimes I've even bought properties with no money out of my pocket, meaning I didn't have to work to make the money I used other people's money.

28:41: Once you realize that the financing is the easiest part, once you have a good deal, that's like the second easy part. Good deals are the are the easy part. The easiest one is getting financing. Getting money, using other people's money and using creative financing.

28:57: They give you an understanding of what creative financing is. Anybody knows, you can use cash to buy a house. You can even just get a mortgage, 30-year fixed mortgage to buy a house.

29:04: Well, that's not very creative, but there are so many other ways. I've used 15, if not 16 different ways of financing.

29:10: I'll run through a list.

29:11: Now, there's each one you have to dive deep to understand how to do this and all that sort of stuff. But I'll quickly go through a list of a few of them.

29:17: I've used private money, you know, friends and family members, having them invest in my deals.

29:23: I've done private money loans from, or sorry, signature loans is what they're called, from a bank.

29:28:Walk in, unsecured line of credit.

29:29: I've used bundled loans where bundle properties together for a commercial loan portfolio loans where a local bank says that we're going to keep this loan, we're going to give it to you.

29:38: I've used Subject 2 where you take over the mortgage that's already on the property.

29:44:, you could use commercial loans.

29:47: I've even used credit cards, kid you not, I've used credit cards. It's definitely an advanced strategy, but if you think, remember back to my candy bar analogy. If I could buy a candy bar for 50 cents and sell it for $1 then I'm going to make 50 cents. But what if I did not have 50 cents? But it cost me 25 cents to borrow 50 cents. Well, then I'm out 75 cents and I still sell it for $1. I make 25 cents every single time.

30:11: That's what real estate investing is.

30:13: With my credit card, I knew the interest rate, I knew everything about, like, I, OK, let me calculate it. If I buy this property, am I actually going to be making money even with this high expensive credit card? Yes, I did. So I was able to do that.

30:26: So there are some, like I said, 15 different ways that I've used financing.

30:30: hard money loans is another one, commercial loans, like I said already, residential loans.

30:35:I've even used the strategy of refinancing, pulling cash out of my primary residence. I my home that I live in. I literally pulled cash out, bought another property.

30:44: I've bought properties, then done a refinanced.

30:47: I've even used a home equity line of credit.

30:49: Oh, let me, so this will be one of the last ones, but I'll tell you a quick story.

30:53: So one of my students, his name is Benjamin. He's a pastor up in Sacramento, California. Pastors don't make really any money at all, but what he did have was a house. He said, Dust, I know I'm not going to be able to work for the rest of my life. So I want to start making money. I want to start investing so I can give it to my kids. I said, Well, let's talk it through. Turns out he had a house that he bought 8 years ago. Well, he had a lot of equity in there. So we got, or he got it, but I helped him get a home equity line of credit on his house, $250,000. He bought a house in Atlanta, Georgia. Then fixed it up with a home equity credit. He used the home, so none of his money.  He didn't save money. He just took his home equity, bought this house, refinanced it, fixed it up, and then refinanced, pulled that cash out, got it rented, and then paid off his mortgage, the, the Hilock that he has.

31:40: Now he has a property free and clear, sorry, his house is free and clear. Like he, he paid off that mortgage. Now he has a new property that's making him money and he didn't use his own money to buy the property. Does that make sense?

31:52: Yeah, that makes sense.

31:53: And that will be paid and it will be all net revenue for a great retirement plan.

32:00: I mean that sounds beautiful.

32:02: I use some of these tricks as well.

32:08: And he could use that same again, and again that same.

32:14: Well, this is terrific information.

32:16: It's always a pleasure to speak with you, Dustin, and, and I, I appreciate you taking the time.

32:20: That's all the time we have for today, but again, thank you for joining us.

32:26: Absolutely, Tim, I appreciate you having me on.

32:29: And if you enjoyed this video, please like and subscribe to our channel.

32:32: Don't forget to sign up for our free email alerts on foreclosure.com.

32:35: Until next time, I'm Tim Jones, and thank you for joining us today.