Dustin is an expert in the field of passive income, presently owning over 30 properties. In this episode, he’ll share with us how he came to have such a massive portfolio of real estate assets, the challenges he experienced along the road, and his forthcoming conference, which is expected to gather a significant number of real estate gurus.
At 37 years old, Dustin quit his job to focus on real estate. Even at a young age, he always had a great interest in entrepreneurship. He said that there was a time when he would ride his bike all around town, delivering newspapers to people’s houses. Growing up, he also had the chance to start a couple more businesses like a graphic website design company, a skateboard manufacturing business, a convenience store, and a pizzeria. On top of that, he also bought two rental properties. After facing a challenging situation at work, he wanted to be a full-time investor. He purchased properties, one after another, eventually earning $250 per month in passive income. After six to seven years, he now owns 30 properties.
Everyone has a different risk tolerance. Can you leave with 80% of your income, will your expenses be covered even after you leave, or do you need 120% of your expenses covered before quitting? These are the questions you must ask yourself. Dustin, for example, wanted to be sure he had enough money before leaving his 9-to-5 job. He also said he intended to save more money to purchase additional properties. Moreover, he had a bundled loan at the time, and banks didn’t like it when people left their jobs in the midst of refinancing. Having said that, it took him roughly six or seven years to leave his work because he accounted for his expenses.
Dustin began to acquire properties in 2006 while still working a full-time desk job in California. He later explored Ohio since it was impossible to purchase a property and generate passive income from California at the time.
He listened to various real estate instructors who advised him to first find a property by running the figures to ensure that he would generate $50 per month in passive income. After purchasing the property, you must find someone to renovate it to make it profitable as a rental. Then you select a tenant to live there and a property manager to oversee the property. Even though that’s what he did when he first started out, the whole process was, in his perspective, backwards.
The correct approach, according to Dustin, is to create the business first. He finally developed a technique that worked for him after learning from the challenges he had in the beginning. For the following properties that he acquired, he followed this process. First, he looked for a house between 1,200 and 1,500 square feet in size that he could rent out for $250 per month. While doing this, you have to remember that your property is not a business; instead, it is inventory that you put into the business. With this thinking, he was able to scale the business so fast. Next, he took his time finding trustworthy people, such as property managers, contractors, roofers, plumbers, realtors, wholesalers, inspectors, insurance agents, mortgage brokers, and hard money lenders, to ensure that the business would continue to function even if he was not present, and finally, he purchases the property. Since he set the groundwork for the business, all he needed to do next was acquire properties since he had a team of individuals who performed the legwork for him.
Dustin is now investing in Ohio, Texas, and Arizona, having roughly 30 properties spread out around the country.
According to Dustin, there are many lessons he learned in refinancing. For starters, acquiring a mortgage is a lot of effort, but there are alternative options for financing. In fact, he enjoys using various methods to get funding for a property. One way is to find a mortgage broker and a realtor, then bring them together to purchase a property. Another method is that he uses commercial loans, bundle loans in which he combines properties, and then draw funds out to acquire other properties. He also invests some hard money using private funds from friends, family members, and individuals he knows. He also claimed to have used his credit card to purchase properties, which he could do since he understood his business. He was aware that if he used a credit card, he would be able to account for his expenses. There was also a time when he used a signature loan, an unsecured line of credit with somewhat higher interest rates, but it’s cash you can use to afford a property. According to Dustin, these are just a few of the many various methods to secure financing to purchase a property, bypassing the bank’s six-month seasoning period.
Dustin is organizing a conference in Phoenix from March 10 to 12. They now have 27 speakers, around ten sponsors, and hundreds of attendees.
This conference will cover themes for both novice and seasoned investors. It will be incredibly beneficial to advanced investors since they will have the opportunity to meet with well-known specialists in the area of real estate investment.
Dustin is also planning to build tracks for beginner, intermediate, and experienced investors. They’ll talk about everything from syndication to multifamily, Airbnb, and other sorts of investments in these sessions.
To register for the conference, you can visit rewbcon.com. You may go ahead and visit the site to avail of the $50 discount if you use the promo code, “Dustin.”
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