Foreign.

You're listening to the Master Passive Income Podcast Network.

Welcome to the Master Passive Income Show.

My name is Dustin Heiner, and I'm here to help you afford anything you want in life, create generational wealth, and reach financial freedom by investing in real estate.

And in today's show, I'm talking with a fantastic real estate investor who has successful successfully purchased multiple properties.

And in his most recent one, he purchased this property at half of the market value.

And he's going to show us how he did it and how you can do it as well.

All right, let's start the show.

Welcome to the Master Passive Income Podcast where we talk about investing in real estate with a special focus on making enough money so you can quit your job and live the dream life.

And now, here is your host, Dustin Heiner.

What's up?

What's up?

Super blessed as always to have you here with me on the show.

And I am super pumped for this next year.

2025 is going to be an amazing year for real estate investing.

I mean, I kid you not, seriously, this is going to be so amazing.

Now, a lot of people might be thinking that there might be a crash, there might be something bad happening, which if there is, that's going to be even better for us as real estate investors.

And then if the market takes off, if the economy takes off and the real estate market takes off again, even better for us as real estate investors because we make money if the market goes up or if the market goes down or if.

If the market goes sideways because we invest for passive income, for cash flow every single month.

Now, I did here, and I do see that interest rates are going back up right now in 2025.

We see interest rates might be cut a little bit, but that's the Federal Reserve's interest rate.

Mortgage rates are going up.

And I kid you not, I am so excited that interest rates are going up.

And you might be thinking, well, Dustin, how in the world are you excited the interest rates are going up?

Well, the thing is, I don't pay for the interest rate.

My tenants pay for the interest rate.

Now, who are the people that are going to have a problem when interest rates go up?

Those are the people who do not know how to invest in real estate or did it the wrong way.

I'll give you a quick example.

Syndicators, people who buy multifamily apartment complexes that use other people's money to get the down payment to get a bad loan that they need to refinance over next two or three years.

And they are now stuck.

Honestly, so many of these companies are stuck.

In fact, a big name in the.

Real estate market, you know, the, I.

Guess, podcasting and community and stuff like that.

His name's Brandon Turner of the BiggerPockets.

He was a part of BiggerPockets podcast.

Well, he has gotten lots of people to invest in his deals and he says over 1500 doors that he has now for his investing.

But the sad thing is he literally had to stop all his distributions because his companies and investments are not doing well.

At least that's what I heard.

I also heard that he might have to do capital calls or might be doing capital calls on his properties, which means he's going back to his investors saying, hey, you already invested one time, but we need more money out of you if you want to keep your investment.

Because these businesses are not doing well.

These companies aren't doing well because.

Because our investments, we cannot refinance them because interest rates are so much higher now.

And if we refinance it, we'll pay even more money.

It's going to be bad.

Well, this is what we do as real estate investors.

We make sure that we make cash flow as well as we get good loans.

We do not get these horrible loans that are going to make us go bankrupt just like in 2008.

See, I started investing back in 2006.

And I saw this back then people were going bankrupt because they were, they were investing for speculation or hoping that the values go up in appreciation.

Well, if you're a smart investor, we don't do that.

We invest for cash flow.

Just like any business.

If you're going to start a business, you do not get a business hoping that the value goes up.

And that's the only thing that you do well.

If you don't make money, your business does not go up in value.

Same thing with real estate investing.

Now with interest rates going up.

These companies, these people, syndicators who have done a horrible job for their investors, well, they're going to lose those properties.

These 3, 4, 500 or more unit apartment complexes, they're going to be foreclosed on.

Guess what?

Guess who's going to come in there and buy these properties.

Smart investors like you, who know that what we do as investors is we do everything the right way.

And I see in 2025, this is going to be even better for us as real estate investors.

If you're going to be buying single family homes.

Now, if you buy a single family home, I just bought one, that is a short term rental property as an 8% loan.

I bought it back in May.

Well, with 8%, I still make money.

If the rates go down, I refinance it and I make even more money.

And if the rates go up, I'm going to be so glad I have 8% and it's going to be totally fine.

See, you want to make sure that your bases are always covered.

We are not profits.

We have no clue what's going to happen.

In the future.

We might think what's going to happen, but in the end we have no idea.

What we want to do is protect ourselves all the way around.

Also in 2025, there's going to be so many great opportunities to connect with amazing real estate investors who are currently doing this and these experts that are.

My friends, I'm actually bringing them all.

Together for the Real Estate Wealth Builders Conference.

This conference is going to be in April 10th through the 12th and you do not want to miss it.

You must be here because every year we get investors coming, they connect with other investors, they learn how to invest and they get motivated and they make deals happen.

In fact, the person that I'm bringing on this show today, right now, he came to Rubecon and after Rubecon has been doing such an amazing job in his real estate investing.

Because of Rubecon, because of the Real Estate Wealth Builders Conference, connected with so many other great investors, got other people to be working with him as well as decided it was time to make a change.

And so right now I have a promotion.

I want to give you 20% off of the Real Estate Wealth Builders Conference.

Like I kid you not, you need to be here.

This is the, this is the way that you're going to be connecting and growing and getting success in your real estate investing.

I'm going to be there as well as 40 plus of my friends, other expert real estate investors literally coaching you how to do that in the description.

I'll have the link if you go to rubecon.com r e w b C-O-N.com and use the promo code, special promo code just for this new year is rock 2025 all one word, R O C K 2025 and you'll get 20% off of your pass and the pass is actually going up January 1st.

The price is going to go up and it's going to continue to go up over the coming weeks and months until the conference date.

So you want to lock in your success right now, lock in and secure your pass through the Real Estate Wealth Brothers Conference and Honestly, change your life.

You need to be here.

And I've gotten so many people successfully investing in real estate, being a part of Master Passive Income, listening to the podcast, and we're going to roopcon as well as Root Club, the clubs that we put on, the monthly local meetups that we have.

Honestly, this is all for you.

If you don't take advantage of this, then honestly, you're going to have another day, another week, another month and another year go by without you changing your life for the better.

Imagine it's 2025 now.

Imagine 2028, you being successfully unemployed, you never having to go to work again because you worked your tail off.

And with that work that you're going to be putting in, you're going to become a successful real estate investor.

Just like the student that I'm bringing on right now, he successfully has bought multiple properties and his most recent one, he got almost half off of the market value.

And he's going to show you how he did it.

Now, this is not something that's unique to him, even though you might say it, might hear, hey, this is really unique to you.

No, no, no.

This happens all the time to our students because once people know that we're real estate investors, they want to work with us.

And as more people that we tell that we're investors, friends, family, co workers, anybody, that we're investors, deals come our way.

And when you come to the Real Estate Wealth Brothers conference, when you go to Root Club or you start just sharing with people that you're a real estate investor, you share somebody this podcast and say, hey, I want you to listen to Dustin's podcast.

He's showing people how to invest in real estate and he's literally doing it for free on the podcast.

He wants to help 1 million people to invest in real estate.

That is how you are going to get more and more people to want to work with you, sell you their properties, invest in your deals because you're a real estate investor.

Now, this is an amazing episode where he's going to show you how you can invest successfully.

I have one of my students of the Master Passive Income Tribe that we have the group coaching.

Now let's get into today's show where I interview a Master Passive Income Tribe member, John Plushet, who's going to show us how he successfully is investing in real estate.

After coming to Rubecon, he's going to show you how to do it as well.

All right, here we go.

John Plaushe, thank you so much for being on the Show John.

Hey, guys, thanks for having me.

Yeah, this is so terrific that you started investing, have properties now are making money, and now you're also wanting to help people with having a monthly meetup.

So talk to me about, like, what are you doing right now in your real estate investing and how is that helping you to buy more real estate?

How are you getting more cash flow and all that sort of stuff.

Yeah, I feel like just kind of going through the course, sticking with the basics.

I have two rentals right now, both recently purchased.

My first year as a student, making sure it hits that 250 cash flow mark that you talk about.

And if you want, I can just go ahead and dive into the numbers real quick if that works for you.

Before we, before we jump into numbers.

So you're not, you weren't born with, you know, wealthy.

Like, you had a.

You're a normal, regular, everyday people, just like on the show.

So where did you come from?

Like, you know, were you working a job before?

And what made you want to get into real estate investing?

Yeah, so originally I'm from New Orleans, and Grant Cardone actually talks about this.

I feel like living in New Orleans, Louisiana, I was kind of surrounded by a very poor mindset.

So actually once I made the move to Colorado, Denver, specifically after Hurricane Ida, that's kind of when I started thinking bigger.

Read the rich dad, poor dad, read they can grow rich.

And then I had a job as, or still in it as a civil engineer.

And I have a far commute.

So I was like, one day I was like, you know, all these real estate guys have, like so much financial freedom.

I want to learn more about this.

Got on my Spotify and then found your podcast and just went all in, 100%.

I love it.

I love it.

And honestly, I, I love having a podcast.

I've had it since 2015, I think is when I started it.

And it's just so much fun being able to.

And it's interesting where I'm talking to a microphone and there's lots and lots of people listen to it, but I try my best to talk to the one person that's listening because there's always only one person listening at the end of the podcast and showing them that, like, man, it's, it's not as unattainable as people think it is.

I think it's kind of hard to invest in real estate, especially if you're.

If you didn't grow up wealthy and all that sort of stuff.

But it's so much easier than that.

So you dive into the podcast, you start learning that it's absolutely possible, it's not rocket science.

And what made you want to actually, you know, join the coaching and being part of everything we're doing here at Master Passive Income, helping you to get that first property.

And now you have two properties, which is great actually.

You Dustin.

So like you, I'm a hardcore Christian.

I felt like every time you talk about your faith, it really motivated me.

You know, I have a lot of similarities.

I played college sports too.

I played rugby at lsu.

So just the similarities you and I had.

And then I was like, you know, I'm just going to commit and do it because I know Charles had talked about how he tried to do it on his own and it didn't work.

And I had a failed entrepreneur business in Covid and I was a solopreneur and didn't work out.

So I was like, I'm just going to pay the money and have the team to support me and never looked back.

And it was just a no brainer ever since.

I love it and so I did it the hard way where I did not.

Well, there wasn't, there wasn't.

I couldn't find anybody who's doing it.

By yourself, you know, I was.

Yeah, yeah.

And so it takes longer when you try to do it by yourself because you don't know the shortcuts.

You don't, you're trying to figure everything out.

And so I love the idea that you said, you know what, I'm just going to actually help myself by paying for coaching, paying for courses.

I want to fast track my way to success because I took the long ray and it took me like eight years to eventually get financially independent.

Where a lot of students now they're getting like three, four or five years because like just shorter amount of time because I've already gone through all the pain and I've already coached lots and lots of people go through the pain and so that they don't have to go through that.

And with the, the coaching and the, the courses and everything.

You got your first property this year.

Talk me through the.

Well first, how long did it take you before you started being coming or you were a master passive income student?

How long were you looking to do it before and then once you got started, what was that timeframe getting started to getting your first property?

Yeah, that's a great question.

I felt like before I had joined I kind of knew I wanted to buy a rental property, but I was kind of loosely just like, oh, I'LL buy my first one and like, you know, three or four years down the road when I'm older because I just turned 29.

I think you bought your first property at 28.

So I'm happy that I got started at a similar age.

And then after I got through the course, I like dove into all the material.

I think that took about five to six months roughly.

And then once I finished all the material, I was like, I have to take action, like right now or this is never going to happen.

I locked it in, got my first rental in Birmingham, Alabama about six months in.

And then I recently closed on my second rental in New Orleans, Louisiana, where I'm originally from.

And that is two rentals in one year and just hit my one year with NPI as well.

Man, that is so good.

Now talk to us about that property in Birmingham.

This is your first property.

And talk about like the purchase price.

Who do you have to manage it?

How much passive income are you making on the property?

And I want to pause for a quick second and share that honestly, I really want you to invest in real estate.

Now.

My new goal is to help 1 million people invest in real estate.

So two things I would ask from you.

Number one, if you get anything out of this episode, please share it with somebody else.

Just say, hey, you know, check out Dustin Master Passive Income.

He really wants to help a million people to invest in real estate.

That's number one.

Number two, I want to get you to invest in real estate.

Get my real estate investing course absolutely for free.

Text the word rental R E N T A L 233777 rental to 33777.

I'll literally give you my course, show you how to find the area of the country to invest, how to build the business first.

You know, I always talk about that and how to find the right properties, how to how to make sure you're getting experts do the work for you and scale the business to where you're making $250 or more in passive income.

Scale it to quit your job.

I'll literally get to you.

Or go to masterpassiveincome.com freecourse.

Obviously it'll be in the description, but I really, really want you to invest in real estate because the more that actual normal everyday people own real estate that are good landlords, the better everybody's life gets.

See, I'm a numbers guy too.

Have it all written down, ready to go.

My first rental, Birmingham, Alabama, bought it for $153,000.

Found a fantastic Property manager who's made the whole process very seamless.

The passive income right now is 260amonth, and then I'm applying the shred method, who you interviewed Adam Carroll with recently.

So I'm doing like, a baby shred, where the extra cash flow goes to, like, shredding the principal of the loan.

That's fantastic.

Now, I love the idea of shredding, getting out of debt.

There's also a quick little thought that if that little extra cash flow that you might have, you could be saving that to buy the next property and then snowball once you buy, you know, keep commute, getting more and more properties to make more and more money than then pay off your.

Your loan.

But I think they're both great strategies and really just depends on your risk tolerance and really your financial goals.

Like, my goal was to as quickly as I can get as many properties, and I didn't have lots of options.

In fact, I didn't know about the shred method back when I was doing this, and I probably would have been doing that, but I kept borrowing money, kept borrowing money.

Eventually I had enough properties where I could pay off the loans, just literally pay them off, which was just a blessing to have.

Okay, so $263 every single month, which is amazing.

Great job there.

And then shredding the mortgage, which is good.

Do you have equity in that now?

Do you feel like you have a good amount of equity?

Definitely.

And I did 20% down conventional like you recommend.

And side note, I also got it through a vendor at Rube Club or.

Yeah, that was the one in St.

Louis, right?

Yeah.

Rubcon.

Yes.

Con.

Yes.

Yeah.

So many rubes at Rubcon.

It was literally the day after Rubcon in St.

Louis that I closed on the property.

Already talking to the vendor about wanting to meet them face to face, just to kind of have some peace of mind before locking it in.

Man, that was so cool.

I was like, I have to take massive action, like, right now.

And that was when I got my first property.

So it all works.

I love it.

And that's the thing about Rubecon is you get so much great information, contacts, energy, and excitement that if you don't take action, just like always, like your world, the gets back into, you know, swing of things, of life, and, you know, life starts to hit you again, and you kind of push it aside.

Well, if you take action right after Rubecon or right after you get that sense, like, I need to do it.

If you make yourself do it, my goodness, it just makes it so much easier than future.

Okay, so you have this one property, you have equity in it now, which is terrific.

And then making cash flow.

And then you get your second property.

And I want you to walk us through how you captured so much equity.

Was.

I think it was $80,000 in equity.

Equity capture.

Yep.

Yes.

Talk.

And this is in Louisiana.

Talk us through this entire process and I have a couple of questions I want to ask you.

Sure.

Yep.

So second property, as I mentioned, it's in New Orleans, Louisiana.

I bought it for $130,000.

And this one is a little special because it came about in a very organic way, thanks to Dustin's advice to always talk about real estate and tell people you're a real estate investor.

That's kind of how I got the deal.

So this property belonged to my family and it had a long term tenant who's a family friend, and they wanted to sell the property, but they didn't want to displace the tenant.

So I honored the tenant's rent and got the property at a great deal with $80,000 equity capture and then the brownie points on top of that deal.

The money that we got with the deal helped my mom to buy a home to retire in.

So it was a win, win, win scenario.

My goodness.

And the tenant there.

Yeah, the tenant's still at a good rate.

You know, for rent.

You bought it to where you're still have some passive income coming in.

And it's a good, really good property and has a house now.

Wow, that's exciting.

As Michael Scott says, it's a win, win, win scenario.

Love it.

And so somebody and I, I'm glad that you started this story about you getting this property with that.

It's not uncommon for something like this to happen.

Somebody might say, well, John, you had a family member that had this, you know, I don't have that.

Well, you would not have gotten this deal if you were not already investing and if you were not telling people that you were investing, doing the things that you know that you need to do.

Obviously through the coaching and everything.

Walk you through.

This is how we get deals.

Because we are talking to people, we're getting our name out there.

It might not be a family member, it might be the, a business that you go and visit and they have a property that like they're just tired of and you're just talking about investing that, hey, I have a property I might want you to buy.

And so when you're out there talking to people, letting people know, your investor, you're putting little lines of fishing lines out there, fishing poles with lines out there, trying to fish for, fish for a home and eventually you might grab one or you hopefully will grab on the more lines you put out.

Now is there any lessons in both of these properties that you've learned along the way that you can share with everybody?

Yes, I would say one of the biggest challenges, I feel like everybody kind of goes through this.

It's really normal, the two words analysis paralysis.

So I had that.

It's easy to overthink every decision, especially when buying your first rental property.

And if it's an out of state rental, that can be a little intimidating at first for a, you know, first time buyer.

But I've learned that if the numbers work and you have a great team, such as a great property manager, you can really push through the doubts and build momentum.

So that first deal I had in Birmingham, I've never seen it.

My grandmother thinks I'm insane because I've never seen it.

But I don't need to see it because I'm confident because my property manager is so good.

So I would say just push through that analysis paralysis, make sure the numbers work and build a great team and you can easily push through and do what I did and buy two properties in one year.

And like Dustin mentioned, he keeps it pretty simple blueprint to follow as well.

Yeah, as best I can because I'm a methodical, like step by step person.

You just give me a list of things to do.

Yeah, I'll do it.

Say X, Y and Z.

In fact, anybody that wants me to do something said, would you please email me a list of the things I do and I'll knock them out.

But like that's how I think and so that's how I created everything.

And I like the idea of what you did.

So you also went to rubcon, get more encouragement, get more education.

You're part of Master Passive Income.

How was it getting past the analysis paralysis when you had the step by step system, you had calculators, you even had group coaching with, with me and everybody else.

Did that help you get past the analysis process?

Oh, definitely.

Yeah.

I feel like the MPI calculator, the Excel sheet you give us, it's like 10 out of 10.

It keeps the numbers black and white.

It makes it really easy to see like hey this is a good deal.

Hey, this is a bad deal.

And it kind of made it a no brainer once I actually made the offer.

So I feel like that gave me a lot of confidence and Then also I just had so much built up energy after rubcon.

I was like, if I don't take massive action right now, dude, I'm going to explode.

I love the idea of massive action.

And in one year you get into properties.

Talk to me about how your wife is on this.

Like, how is she feeling?

How is she, how.

How was it hard for her to get on, on board with it?

I felt like she was supportive, maybe slightly skeptical at first until I actually bought the first rental.

You know, until it becomes tangible like you actually have it.

And then after that she was like, oh, what you're doing works.

She was a lot more supportive and it actually worked out with the second deal.

The bank wanted like extra reserve funds that I was not ready to give because I have two rentals.

So I actually was able to put her on the title for the second one and she got a piece of the pie.

So she is actually a first time real estate investor now too.

So it kind of worked out for the best because at first I was all stressed about it, then I was like, oh, this can be a, you know, an optimistic win for all of us.

And then she got involved and now she can learn more about it too and is obviously more supportive too now that she's an investor.

That's great.

Was that a investment loan, like a second property or was it investment property loan?

Conventional loan?

Yeah, it was.

It was conventional.

20% down, just like the first one I heard, so buyer sell down points.

So I got a pretty good interest rate of five and a half percent.

The second one was a little bit higher like you mentioned with your last property.

I think mine was close to like 7.3%.

So I'll be definitely doing a bigger shred on that one and then a more of a baby shred on the lower interest one.

Yeah, that makes a lot of sense.

It's interesting that the lender wanted you to have.

Was it more of a reserve?

Yeah, it was more reserve funds.

Because I didn't know this since I had the first rental.

They wanted like a bunch of money just in case something happens, I guess.

And I wasn't expecting to have all that reserve funds needed and the closing costs were a little bit higher on that second deal than I expected.

So she came in, we brainstormed and it kind of worked out for the best for everybody.

Was it a DSCR loan?

No, no, it was conventional.

So, okay, the loan is in my name, but she is on the title.

Does that make sense?

Sure does, yeah.

Because my lender says it Makes the most sense just to have one person on the loan for simplicity.

And then we buy our own personal residence.

In the future she will be on that loan, but I'll be on the title.

Okay, walk me through this articles on.

My, on my name with the lips.

Yeah and it's really loans like you could have as many properties as you want under your name.

It's really the loan that's usually the hang up on for most people.

Now I want to when I asked you a question because I get this question all the time.

People are renting an apartment, a house, whatever it might be and they asked me hey Dustin, should I buy a house to live in first or should I buy a house to rent and you know, be an investor and buy a house to start making money.

And I love it's, it's, it's always every single time they use the word or like should I do this or that.

Like it's an.

You have to pick one.

I'm like well there's probably other options in there which I'll walk you through but talk me through that process.

You said you don't have a primary residence, correct?

Correct.

We, we talked to that like kings instead of owning a house in Denver.

As the viewers probably know, Denver, Colorado is very expensive.

So I went the unconventional approach this last year where I bought two out of state rentals that are probably like one fifth of the costs that it would have been to buy it in Denver.

But we are now saving our money and we do plan to buy our own personal residence.

And if we find the right property I would like to do a house hack and have a tenant in the basement because there are some single families in Denver that do have basements that are pretty good for like Airbnb or just a long term tenant.

I was looking at duplexes too like you mentioned, but I don't want to buy like a duplex and pay over a million bucks for it.

The numbers just didn't work.

But the, the single family at the basement, the numbers were a lot more favorable.

I have a friend that lives in Denver, one of the cities around there.

I can't remember exactly which city is but in the Denver area and he has a basement and he Airbnb is that like it has its own access to the outside.

It has stairwell to go up to the top and he decked it out.

Looks really, really nice.

Even has a rock climbing wall in there because he.

Yeah, he likes rock climbing.

I like rock climbing too.

So that's pretty cool.

He did that, yeah, Amenity.

That he has a hot tub as well, but he keeps it rented and it, it's, it's generating money to pay for his mortgage.

And he's like, this is great.

All I got to do is make sure I lock my door so they can't come up into the top and they just come and they make a lot of money.

So that's great.

Now what is your plan to grow investment properties?

Not the primary.

The primaries are great.

We're going to go down that route.

I think it's brilliant if you can go that route of having house hacking with that.

What about buying out of state?

What's your plan either for.

To get more cash, find more properties.

Yeah.

So my current plan, as I mentioned, with the shred method, reducing the debt on my two rentals and pay off other expenses like an engagement ring, because that was not exactly a small purchase.

And then later on, once I'm shredding the debt on the New Orleans property, I think the rates will probably go down a little bit with the election, all that fun stuff.

And I'll probably do a cash out refinance and use that money to buy more rentals while also saving up my money to buy our own single family personal residence.

And I love the idea for the Louisiana property because you have so much equity in doing a cash out refinance because you have a higher interest rate, you have equity and when you refinance, Lord willing, it's going to be lower, let's say five and a half percent.

That would be fantastic.

Right?

And refinancing at five and a half percent and taking that cash out, your payments will probably be very similar to what they're adding out, but you have that extra, let's say 50 grand, maybe more, just that you can use to invest in other properties.

And so that is such a fantastic way to actually continue to grow.

Now the other thought is getting a home equity line of credit.

Well, in my opinion, I love them both, but they're for me.

If, if I have a really great interest rate, let's say 4%, 3%, and I'm not going to refinance it because I refinance at 7%.

That'd just be silly.

Use that equity by getting home equity credit rather than if you have a high interest rate, then refinance it and get permanent loan that's lower and you get the cash out.

So does that make sense?

Yeah, it does.

I actually think your interview with Adam Carroll, spot on because in Rich Dad, Poor dad, they mentioned that the House is actually a liability, not an asset.

But if you do, with the HELOC approach that you and Adam are talking about, you actually flip your house from being a liability into being an asset.

And then you could double down and do what I'm trying to do with a house hack and have a renter in the basement.

Every single house that I buy.

Yeah, I agree with you.

Every single house that I buy as a primary residence, I buy it, get a lot of equity in there and then get a HELOC and secure a heloc, a home economic line of credit on it.

I have one on my Arizona property.

This property I have in, in Tennessee.

I'm going to get a HELOC on as well.

Hopefully as much as I can.

100, 200,000, something like that.

But then that is equity that I can.

Because it's a heloc.

It's a revolving line of credit.

I can pull it out, buy a property and then refinance that next property, pull the cash out, pay off my heloc.

You just have access to capital, which is what's going to help you to grow your business.

One quick last thing, because I want to hear your thoughts on how you're going to be able to do this with this refinance.

So my property in Arizona still have a HELOC on it.

It's got $250,000 HELOC.

And I'm looking to the end of this year.

In the next couple of weeks I'm going to be closing on a property in Akron, Ohio where, uh, rents 12, 1300 somewhere around there, which is great.

I'm buying it for 125, 125,000.

So I was, I was looking to get a DSCR loan putting 10, 20% down, but I was, I was like, oh my goodness, the cost is like $6,000 for this loan.

I was like, well, I already have my heloc and it's a seven and a half percent, basically the same interest rate that I would if I got the DCR loan.

I'm just going to save myself literally $6,000 that I'm going to pull out my HELOC, buy this property.

And honestly, if it's renting at $1200 a month after expenses, I'll probably be pocketing or clearing 908, $900 a month.

My goodness, in one year I'll have majority of the entire house paid off.

You have 12 months times 1,000.

That's $120,000.

I'm going to have all that money Paid off.

I'm going to have a property free and clear after one year using my heloc.

So this is just one of many different ways.

So tell me about that.

Once you get the refinance and you're then going to buy in Louisiana, going to buy in Birmingham, like what's your next process and what you're going to be doing and any questions or thoughts on the heloc?

Sure.

And then I guess my question real quick, when you said the 6,000, that was for closing costs, right?

That you were talking about closing costs, title fee, like all that sort of stuff that.

Not just because we're going to, I'm going to title and title check and everything.

But yeah, points, fees, appraisals, origination, all that sort of stuff.

It's just really expensive.

Yeah, you're playing it smart because even if you do that approach down the road, you still have that option of doing a cash out refinance too, if you want to because you have all that equity.

But as far as what your question was, yeah, my plan, I think I'll have enough equity built up in 2025 where I can easily pull out $100,000 in the Louisiana property with the cash out refinance.

And then if it makes sense at the time, I'm definitely going to buy more rentals.

And then the two markets that I've been liking a lot, especially the first one, Birmingham, Alabama, I did what you said, built the business first, have the LLC situated and all that fun stuff.

So I already have that situated and I'll probably buy one to two Birmingham rentals, hopefully.

And then the second market I liked was Little Rock, Arkansas, which I know Dustin or not Charles also.

Charles does.

Yep.

That's, that's great.

And so let's imagine you did not get the refinance.

Let's say worst case scenario, rates go up, interest rates go up and it's like 9, 10%.

So you can't get the re.

You might get a HELOC maybe if you can, but you can't do the refinance.

You still need to continue investing.

You don't have that money.

What's your plan then?

Honestly, I've been looking into creative financing.

I know you guys talk about that a lot.

So looking for seller finance, I know they're a little bit harder to find, but I would probably go.

If that was the scenario that you gave.

I would probably either do a seller finance deal or I would try to do private money, buy it with private money.

It's all cash.

So There'll be very low closing costs and you could probably get a little bit more cheaper purchase price because of that cash deal and then just wait for the rates to go down, then do a cash out refinance.

Those are great.

And also doing subject to where let's say you find a distressed seller.

Forgot about that one.

Yeah, yeah, yeah.

So those are creative ways to have no money out of the, out of your pocket.

Here's another idea throwing it out there for you.

Your mom has a house free and clear.

Now.

She could get a HELOC on it and then you could borrow from her as a private money lender.

That, that could be my parents.

They would just give me the money or just let me, you know, pay for the, you know, interest and stuff that's already.

But who knows, she might be able to make a little bit of money.

But that's just a thought.

Like that's access to capital that she could be able to utilize to bless her to make a little bit more money.

Bless you to buy more properties.

And then once that paid off, you.

Have a property that's actually genius.

And I didn't think about that, so I definitely wrote that down.

Thanks.

Yes.

I'm so excited.

And that's the thing about coaching and seeing so many different scenarios for myself as well as students.

You come up with options that it's like, oh, wow, here's an option or there's an option.

When I first got started, I didn't know all these options.

I had to either figure them out or learn from somebody else.

Like another investor I just ran into, started talking to.

And then once you have these options.

In your break, kind of like a tool belt, we have a bunch of tools.

Well, all these different options, you don't know that they're there unless you actually buy that tool and put in your tool belt.

Then you say, oh, here's a tool that I could use for this, this job or this option that's, that's around.

So it's getting around other people.

That's why Roop Club is terrific.

Roop Con is terrific.

Being a part of Master Passive Income, there's so many other brains that can help, like, oh, I've heard about this.

Or I see this now.

Talk to me about Roop Club.

So the real Estate Wealth Builders Club that we're putting on, you love investing and you're definitely all in on investing and you're wanting volunteer your time to have a monthly meetup for real estate investors just to come gather together, network and help each other.

Out.

Talk to me about your vision and reason why you wanted to be a part of group.

Yeah, I feel like I want to have higher quality connections, especially in Denver with fellow real estate investors.

Because like I mentioned, I'm only 29 years old.

So I feel like a lot of my friends who are in the same age demographic as me, they don't know anything about investing.

They think I'm just a crazy guy.

In my age demographic.

Like I don't know anybody that's investors too.

So yeah, you have to find them.

Yes.

So we're kind of like a rare breed, like a 1%.

So I want to have more connections with like minded individuals and I found that at Rube Club especially.

I found a lot of people that are very similar to what I was looking for in friendship but also just career wise.

And I feel like it's kind of hard to find nowadays.

So that was kind of what I was hoping to get out of it and then just building that community in Denver.

I read the two Hour cocktail book like you recommended.

I loved it.

We're really excited about launching Roop Club in February and it's going to be Colorado Rube Club and hope everybody can make it.

That's, it's fantastic.

And so the book that you were mentioning, John, is the Two Hour Cocktail Party.

That's really helping people to network, to get to know each other rather than let's just get into a room and then everybody just go talk.

Well, I know, I appreciate it when the host tells me what to do.

Stand up, grab somebody right next to you and then talk about this.

Like, okay, that gives me the freedom to not feel like I'm being awkward grabbing somebody, talking to somebody and it frees you up and everybody in the room up to really network to really just get to know each other.

We ask fun questions like, what's your favorite breakfast item?

What's your favorite past?

Yeah, crazy, crazy questions that get you talking about things outside of business and real estate so you get to know each other on a personal level and then that leads into your investing.

And I feel like we've all the book mentions that we've all been to an event that was just like not the best for networking and you kind of just leave early and feel like it wasn't really a good ROI of your time.

So I felt like reading that book really gave me the guidance of like, all right, this is how we're going to do Rube Club Colorado.

We're going to make sure it's worth everybody's Time.

We're going to build the connections the right way, use the right icebreakers and make the, the goals very clear for everybody.

I love it.

And you know what's fun, John?

So I, and my walk with the Lord.

I've, I've been a part of so many churches.

Well, sorry, I've been in probably three churches, been elder, been a pastor, started like dozens of ministries and ran and led thousands, literally thousands of people in not just serving, but leaders.

Like I've been leading them and they're doing the work.

So I've been blessed to be a part of lots and lots of great churches that I'm blessing to be a part of.

I'm blessed to be a part of.

But then I thought, you know what, I actually really appreciate the idea of having a home church where we bring people in the home and we don't grow outside of our house.

Maybe we have five families and that's the max we can grow.

And then as you're discipling them, as you're, you're everybody's growing together, then the families would then start their own home church and they would go and do it all over the again and we would just keep multiplying.

I think God's a God of multiplication, not addition.

You know, hey, we just, you know, we got five people last week.

Well, I think God is multiplying.

Like if I bring in five men and families and then those five men go out and start their own home churches and those, each One of those five make five more and there's 25 just keeps multiplying.

So fast forward, I'm going to be using the two hour cocktail party idea, bringing people onto our home, talking to them, networking them, having fun so that we can get to know other people and then go that route of inviting people into our home church or basically a home Bible study, home church type of thing.

So anyways, what are your thoughts about doing something like that with the two hour cocktail party idea?

I think that's genius.

Yeah, I think because I have made a couple of like high quality relationships in my church, Foothill Church in Denver and I feel like that's like one of the more high quality people you can ever meet is a fellow follower in Christ.

So I think what you're doing is genius and definitely a great idea.

Awesome.

Well John, this is so terrific.

I absolutely love that you are investing, love that you're a part of everything that we're doing here at Master Passive Income and rubcon as well.

So for everybody listening, we want you to come.

We actually have three different group clubs right now.

We're going to be starting more as the Lord blesses us to find great people that are going to be running them.

I'm not going to be going to every single city all month.

I'm not going to be doing that.

But we have to have great people.

But right now we have Charlotte, Phoenix and now starting up in Denver.

When you hear this, you probably Denver is going to be starting up and we're going to be growing out more.

But you can go to rubecon.com rubeclub or it'll be a link on rubecon.

Com there'll be link in the description.

But we want you to come and hang out with us and experience what it's like to really just be a part of a family.

That's really what we try to do with roopclub.

Roopecon Master passive income is saying, hey, just think of us like your next door neighbor who just found a way to make money and we're just trying to help you out.

So John, this is fantastic.

I really, really appreciate you on the show, man.

Thank you.

Can I get my final advice to the group?

Oh, please do.

Sorry to cut you off.

Absolutely, no worries.

I wanted to leave an action item for the group.

My advice to anyone listening is simple.

Start talking about real estate and surround yourself with the right people.

Your next deal might come from an unexpected conversation just like mine did.

I love it.

John, you're doing great, man.

And I'm super pumped to hang out with you at roopcon and Roop Club as well.

So I appreciate you, man.

Thanks for being on.

Thanks, Dustin.

And that is it for today.

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