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.

Get financial independence and generational wealth by investing in real estate.

And in today's show, I'm super pumped to bring on a fantastic company that I personally use in my business to show you how you.

You can make things more efficient, make more money, and in the end, make your life easier.

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.

Now, I got to say one thing, that I did not think this would happen.

So I've been working a little hard at Instagram to try to build up a following so that I could help more people invest in real estate.

Because on Instagram, you know, they, you know, you find new people or people find you.

About two or three days ago, I posted a reel.

My dad a year ago was diagnosed with cancer, diagnosed with stage four lung cancer.

And he was getting worse and worse, like by the week or by the day.

He was getting weaker and weaker and weaker, couldn't really even walk, was coughing a lot.

Obviously stage four lung cancer.

And he definitely was a smoker.

So people ask the question, what was he smoking?

Yeah, so he was a smoker.

Now, here's what was really crazy.

We went on a trip to Japan as, like, a farewell.

My dad's dying.

Let's go to Japan.

Like last year in May.

And during that trip, I found out I got wind of a gentleman named Joe tippins back in 2017, cured his own cancer with Fenbendazole.

It's Panacur is what it's called, the brand name.

You can buy it on Amazon.

That's where we buy it.

And we learned that he cured his own cancer with that.

So I said, dad, you're going to die.

Let's go ahead and try this out.

In fact, the doctors, I think insurance started getting messed up, and the doctors didn't want to see him because he didn't have insurance at the time.

It was like transitioning.

He has, like, Medicare or Medicaid, one of the two from, you know, California.

And the doctors just stopped seeing him.

So I said, dad, you got to do something.

And so he started taking fenbendazole with vitamin D.

Vitamin D get your immune system up, apparently.

CBD oil.

It's also something that helps the panic growth or the entire system.

And I think one other thing was milk thistle to help his liver.

Anyways, the reason why I share this to you, my dad, eight months later is cancer free.

The doctors.

And my dad wasn't telling the doctors.

Cause he didn't take chemo, he didn't take radiation, didn't do any of that stuff with the doctors.

But what he did do was take fenbendazole and vitamin D, like I just told you.

And he in eight months cured his own cancer.

It was beat cancer.

And the doctors are scratching their heads saying we have no clue.

Like this never happens.

And they're just blown away.

And so my dad, he's.

Now he's gained weight where he lost like 10 or 15 pounds.

Now he's gained that weight back.

He's in his backyard, you know, gardening, turning over soil.

He said, dustin, man, I can actually garden again.

I said, praise the Lord.

This is so amazing.

So if you want to see this reel.

The reason why I bring up this reel or my dad beating cancer and now this has nothing to do with the episode today, but I just had to share with you because I.

My dad beat cancer and my mom died in 2014 from lung cancer as well.

No, I take that back.

It was the chemo that killed her.

It was not the cancer that killed her.

It was the chemo.

And so knowing now that, man, my mom probably would still be alive if she was doing the exact same thing instead of taking chemo.

The reason I say this is because on Instagram, I put out a reel.

Just like three or four days ago, I put out a reel.

It's over four and a half million views.

And praise the Lord, a lot of people are seeing that there's a potentially a way to cure cancer.

At least this is what my dad did.

You do whatever you think is best.

I'm not a doctor and I don't want to get sued.

And so you do whatever you think's best.

But I put out this reel and people are saying, because I record it in Japan.

And I said, hey, I'm in Japan with my dad.

As a celebration.

Last year we went as a farewell.

This year we went again as a celebration.

And I got people out there saying, hey, that's not your dad.

He doesn't look like you.

Or, you know, know, I bet he doesn't even speak English and all that Sort of stuff.

Well, they don't know me.

They don't know anything about me or anything.

Just see the real.

But it's, it's, it's really interesting.

So four and a half million views now.

And I itemize out exactly how much he takes and all that sort of stuff when he takes it.

So honestly, it's at least a shot.

At least that's what I thought.

To my dad, I say, hey, dad, you're gonna die.

The doctor said you're gonna die in like six months.

Let's at least try it.

So.

So he tries it.

And now, praise the Lord, he's healthy again.

He's stopped coughing, stopped spitting a blood.

A little too much information.

But with lung cancer, he was dying.

Now, praise the Lord, he's better.

But anyway, check out that reel.

You'll probably see it on one of the first one or two there.

But also follow me on, on Instagram too.

I love posting just fun things that.

I even posted one about Homer Simpson the other day that was hilarious.

It was over a hundred thousand of you.

But anyways, it's just fun being able to share on top of the podcast.

You know, I love being able to share with my podcast, being able to just talk to you because, you know, I really love having a podcast because I could help you out.

And my goal is to help 1 million people to invest in real estate and hope hopefully you are one of those 1 million people.

And today I'm bringing on a fantastic company that I've worked with for the last, I want to say, three or four years now.

They came and sponsored the first Rubecon, and now that I've been using them for quite a while now, I was like, you know what, I need to share this out with everybody on the podcast because I personally use this, their, this software, this company for my business.

It has banking in there, it has the accounting, it also has property management, you know, collecting rents, all that sort of stuff all in one platform.

When I was using like three or four different platforms, was it three or four?

It might have been in five, but so many different platforms altogether now it's under one roof and, and they're a great sponsor of Rubecon and Master Passive Income.

And I worked out with them because they're such a good company.

I said, hey, would you be able to give my listeners an extra benefit for utilizing you?

You know, Cause they, I, I want to work with you.

I want them to work with you.

And so what we worked out was you get $100 just for joining you.

You set up your, your bank account, set up everything and it's free.

Like, everything's free and they give you a hundred dollars.

I'm like, this is crazy.

And in the episode I asked them how they make money, so it's interesting how they make money.

So you definitely want to listen to that the rest of this episode.

But as I'm asking them this information, I'm like, wow, what else can you give us?

Like, what else can you give my audience?

The $100 is great.

They said, you know what we'll do?

We'll give you free premium support.

Premium support for everything in the platform from the accounting.

Like, I don't do accounting anymore.

The system does accounting.

And I got to tell you, I'm even bringing sod on to do an entire workshop and here this coming Wednesday.

So like two days from now, this coming Wednesday, go to the link in the description masterpassiveincome.com Baselane Workshop and it'll actually, if you hear this in the future and you're like, oh shoot, I missed the workshop completely understand.

I'm actually going to change that link so it points to the replay so you can watch the entire replay where they're going to walk us through how to utilize their system, AI and everything to make everything so much better in your business.

Join me on the workshop this Wednesday evening and click the same link and it'll get you the replay.

I love having this company being a part of Master Passive Income, Rubecon and the Income Building Live because it's a great software.

It's what I use.

And I'm bringing on the founder and one of the programmers also does the marketing and I'm bringing these two gentlemen on that's going to help us to streamline our business to take everything that's frustrating and put it all into one and fix everything and make it not frustrating and, and save us in our time and make us more money.

I'm bringing on two fantastic guys from Baselane.

Great company.

Use masterpassiveincome.com Baselane to get the hundred dollars as well as the free premium support.

The link will be in description.

I think you might even have to use a promo code.

Master Passive Income.

All one word.

But I think if you just use a link anyways, if you just say, hey, I'm with Dustin, Master Passive Income, you're going to get a hundred dollars and free premium support.

Fantastic company.

Super blessed to bring on some Saad and Yad on the show talking about Baselane and how you can make your business so much better.

All right, here we go, guys.

Thank you so much for being on the show.

Yeah, thank you, Dustin.

Super excited to be back.

I've been on the show before, so I'm actually coming back once more, so super excited to be here.

Same here.

Love it.

Love it.

Well, so I really enjoy how Baselane has three different main components.

There's a lot more to it, but because I used to have three different companies that I would work with a business, banking, property management, as well as accounting type of software or companies.

And now we have everything all put together and baseline, which is terrific.

But I'm curious.

You guys are investors too, and that's one thing that people love about working with me or listening to podcasts is I don't just coach this.

No.

Like, I'm an investor, and now I'm just helping people, you know, just giving more information, coaching people so that they can do it themselves.

But talk about your guys investing and how did you guys get into baseline?

Yeah, Saad, do you mind if I lead with this?

Yeah, go ahead.

Yeah.

So Baselane was born out of the pain of being an investor.

To be honest, I got into investment by accident.

We were moving.

You know, my kids were growing up.

I guess, like a lot of folks, we wanted a bigger house, decided to rent out the smaller, older semi house and keep it.

And in the first couple of months, you know, you just.

I was ready for the physical work of being a landlord, but I was not ready at all for the mental overhead of, you know, is the rent in time?

Did I pay my mortgage?

Did I pay my insurance?

And a couple of times my.

My renter was late, which wasn't a problem.

He was a family friend.

But I forgot that I linked the mortgage to be taken out from the same account.

And, you know, I got dinged by the bank, and the.

The.

The penalties ate up almost all my margin for that year.

Um, so that's how I got to be a landlord.

And then we, you know, I realized that there's gotta be.

There's gotta be a tool.

And I've researched, I did my homework, and there was nothing.

And it was.

It was a.

It was kind of like a.

Why is there nothing in the market?

And being a tech guy, I've.

I've.

This is my sixth tech company.

You know, I always built automation in technology, whether it's in gaming or logistics or stuff like that.

So I started digging into the real estate market, and I happened to meet my other two co founders were coming at it from, from the same angle, from the same pain.

But they needed someone technical to help them.

And that was how Baselane was born.

And our mission and our vision has always been the end to end financial management tool for the real estate investor.

For, for, for the, for what we call the mom and pop real estate investor.

The ones that, you know, don't have the capacity to hire a big engineering team to solve their problems.

So that's why we have our three products.

It's because we want to cover the end to end of financial real estate management.

Yeah, I think my story is similar in the way I think a lot of people are accidental landlords.

We talked about this before.

I think more than 30 folks in the US are accidental landlords.

They weren't planning to be, but they didn't.

You know, something happened and they became an owner.

That's what happened with me.

I was selling my first house, literally had it listed for sale.

Then a family member, God bless him, he advised me to take it off the market because it was in Brooklyn, New York.

And he said, don't sell this thing ever.

Probably the best advice I got.

And so I didn't sell it.

I took it off the market.

I figured out how to list it and get it rented.

And I had moved into my new home at that point.

And when I started looking at that like five, six months later, I was like, oh, wow, this is, this thing's actually cash flowing pretty nicely.

I was not expecting that.

And the tenant was stable.

I had that first tenant for I think four years in that house.

And that kind of just got me very jazzed up about real estate.

So I started trying to find a way to invest more in real estate.

I struggled for about two years, couldn't make it work, you know, losing offers, wrong market, et cetera, et cetera.

Eventually partnered up with somebody I used to work with at bcg and both of us decided to partner together.

We invested in Philadelphia.

That's where I have most of my rentals today.

We've got about 18 units, mostly long term, a mix of midterm and 1 str short term rental, but mostly long term rentals.

And what happened to me was I met the co founders who also used to work at the same company.

I did BCG through a friend of mine because he heard me complaining and he was like, you're really excited about real estate, but you're complaining a lot about this thing.

Like, do you really like it?

I was like, I love it.

I just want it to be like better.

I want it to be easier.

I want it to be more automated.

All of us have those expectations, given what we.

The world we live in today with all the technology out there.

And so I got introduced to the founders.

Eight or nine months later, I decided to join the company.

So I was the first business hire at Seed Stage, when Baselane had no customers, and we had just launched the product, we had zero people paying rent on the platform.

And I joined because I wanted to build what I needed for my rental business.

And I also wanted.

I knew, I was convinced that everybody wanted this and it had to be done.

And so it's been three and a half years, and I think almost north of 40,000 users today.

Baselane, you know, as Jad said, is on a mission to help the everyday mom and pop investors thrive, achieve their financial goals through having access to all the technology that helps you save time and money and really, like, helps you scale so you can actually, like, achieve your financial goals.

So that's.

That's a little bit of my backstory.

Yeah, I love it because you guys are on the same mission that I am on.

So it was a number of years ago, but I made it a mission in life to help a million people to invest in real estate.

That's my goal, because that's amazing.

My money through real estate investing.

And I'm like, well, I got plenty of extra free time and have lots of people asking me how to invest.

And I realize I enjoyed teaching them.

It was just a lot of fun for me.

And then getting people on board with investing, it's so amazing when you see somebody's life change because they have some extra cash flow coming in you just from one property.

And so when I bought my first property, it was a great accomplishment, and I felt like I needed more, you know, accomplishments.

You always want to keep growing, and which is great.

But when I had my help, my first students buy their first property, I didn't feel an accomplishment because that was their accomplishment, but I felt fulfilled.

I felt fulfilled because I was helping another human being get something that they really wanted in life.

And then when they quit their job or reach their goal of financial independence, it is so amazing because I feel like I've been so blessed to be a part of something that helped another human being get something.

So there's nothing better, in my opinion, than serving people and helping them to achieve what they want.

And that's what I really love about baseline too.

Okay, so I.

There.

There's a great thought that there.

I mean, when you're a landlord or You're a mom and pop investor and you guys see lots and lots of investors or work with lots and lots of investors.

Would you know what would be a big financial mistake?

Like one of the biggest financial mistakes that most people would probably run into if they're getting started being a mom and pop?

Three, four properties.

Yeah.

I mean one of the biggest mistakes we see is that people mix their financing like they mix their business financing, investment financing, their personal financing.

This creates a lot of headaches down the line.

Tax filing with, with, you know, trying to figure out what's what.

So, so that's definitely one of the biggest mistakes we see happening.

I'm guilty of that as well.

And it took me a lot of time to build healthy habits.

The other is not tracking the cash flow properly.

Fine.

You know, you get paid the rent, you paid out the mortgage, but where's the cash flow?

Where's how much, how much money did you make?

Are you paying yourself as an investor being able to be organized enough so that as you start also entering tax seasons, everything's organized, everything is clear.

You know, it's not a mental burden on you.

Where is the receipt for, you know, the heater repair?

Where's that receipt for the door?

Where's that, where's, where's everything?

Right, so building, understanding your finances and adept and a layer in a way that also is very clear.

And finally, what I think is one of the more dangerous habits is not building good habits from the get go.

So as, as an owner of one property, it's relatively easy to, you know, figure out where was my rent because you only have one renter.

But if you don't get build the good habits early on, by the time you have three, four renters, you know, everything is commingled.

You're trying to figure out what's, what did this person pay, did I pay my mortgage for that property?

And if you don't have the good habits, if you don't have the good tools from the get go, from the first property, by the time you scale, you're going to hit a limit where, okay, you're not going to be able to scale it very well.

And I think that's, that's one of the, one of the largest mistakes we see happen.

Because especially if you have one property, you feel the confidence like, I know what I'm doing, you know, it's not a big deal.

But you scale up, it collapses very quickly and it becomes such a burden.

And this is that last point is a big deal for me.

And I'VE been kind of debating this publicly, even on bigger pockets and stuff like that.

And it's a little bit contentious because I do get a little frustrated when people get advice.

And I feel like it's.

I will say maybe, maybe it is the wrong advice.

Right?

So, like, there's so many times I'm Justin, I'm sure you see this every day.

People come and say, listen, I just bought my first rental.

I'm nervous.

I'm trying to figure out what to do.

I'm setting everything up.

You know, I've got my lease agreement.

I have all these questions, but what should I do for rent collection?

What should I do for banking?

Do I need to do LLC or not?

Right.

And so on.

And for the first one with the rent collection, time and time I see people getting the wrong advice.

What is the wrong advice?

Go ahead and use Zelle for rent collection.

Right?

Yes.

Go ahead and use Cash app.

Go ahead and Venmo.

Literally somebody on BiggerPockets said this last week who has property management in their profile and is telling that person to go ahead under five properties, use Zelle.

And to me, like, this is nonsensical.

Like, I get so frustrated by.

This is like you are teaching this person 100% the wrong thing.

When something bad happens, when their tenant gets behind, when there are four payments behind and there are no late fees have been charged.

Right?

Because Zelle doesn't do that.

Zelle is not built for rent collection.

When they send partial payments and you forego an eviction because they send a partial payment in your local jurisdiction, you're going to get screwed as a landlord.

Right.

Let's say you have two properties now.

You have three properties now.

Now you're chasing multiple tenants across months and the late fees and other fees you have, guess what's going to happen?

And I've seen this happen.

We had people come to us and say, oh, I have eight properties.

My mom and I use Excel sheets because Zelle is so hard to track.

And of course, Right.

And so, like, this is what I want to tell people is like, I rather you go to like a dust end, somebody who's going to teach you the right things instead of getting random advice from people that are, that don't understand how to scale and qualify your advice.

Like, who are you getting the advice from?

Get it from somebody who's felt the pain, like Jad or myself or Dustin, not from somebody who's telling you, like, oh, go ahead and use Cash and Dell.

Like, this is just one example.

I can Talk about other examples where I get very frustrated.

So for me, that's the thing is like, let's just build right what Jad is saying.

Build the right habits.

If you build the right habits, you can actually become a professional.

Do you think people on Wall street, even when they buy single family homes, are collecting rent on Zelle?

No.

I can tell you, I could tell you 100% they are not.

They're using professional software and so should you.

And by the way, this also reinforces on the tenant side, the renters now, like, if you tell your tenant, yeah, go ahead and just sell it to me, no problem.

You know, guess what?

It's going to be late.

It's like, oh, I'm seven days late.

You didn't charge me a late fee.

Now you forgot you're busy with your kids and your W2 job and so on.

Now what do you do?

Now he's like 15 days late.

Now he's 20 days late.

Right?

And then the cycle continues because he's going to keep doing that now that you allowed that to happen.

And so I think that's a really big point for anybody that's getting into this game or thinking that, you know, they want to go from four properties to 20 properties.

It's not going to happen by doing these bad habits.

It comes down to time.

Like how much time it takes to use Excel, how much time it takes to track everything.

And then, you know, that's the whole thing is when somebody is a mom and pop, that's just, you know, they get to three, four or five properties and they're doing everything on Excel and they're, you know, using Zelle and they're doing everything the manual, hard way.

You just don't have enough time because tracking everything, it's like, I just, I, I don't have time for this, that or the other.

And then they start realizing this is more burden.

Now, even though I'm making money, hopefully they're making money, I'm hoping they're making money because most people don't.

Hopefully they're making money.

But then now it becomes a burden.

And honestly, I buy a lot of properties, I'll have investors who just pull their hair out because they don't know how to do it right.

Totally.

I actually have some stats that I brought for the show I wanted to share.

So I think this will help with the time idea because I think anybody that's listening about landlord struggles and why Baselin exists.

So here's a reality.

Most small investors in the US have a full time job.

They are a W2.

They have not made it to Dustin level where he's successfully unemployed, as it says on his T shirt.

And we all know that the demands for property management and the financial management which Jad was talking about earlier, are humongous.

And you're always going to underestimate how long it takes because that's just human nature.

You're biased, you make the wrong assumptions about how long something takes.

Right.

So you're already mentally set up for failure.

So what's going on out there?

Most landlords, it's actually, I double checked the math this morning.

98% of these small investors own no more than four properties.

Okay.

And on average people are making something like 6, 7, $800 a month across that.

Because the average properties.

Yeah, well, the average is about 1.89 properties.

Got it.

So the average is 1.89.

Most people, 98% own less than four properties.

Right.

The average is about 1.89.

So let's say two, you're probably booking 350, $400 per door.

So you're at, let's say even $800 a month.

I can bet that that didn't really help achieve the financial goal that you had.

Right.

You probably wanted $5,000 a month of passive income, maybe $10,000.

You're not there yet, so you need to like quadruple, if not 5x or even 10x that number to get there.

Okay.

Now this is.

The frame is set.

So what's going on out there?

How much time are you actually spending?

We looked at financial management as a category, not property management, like tenant communication and maintenance.

That's a whole other area.

We just looked at financial management.

We're talking about things like Jad said earlier, collecting rent, doing your banking, reconciliation, paying all your vendors, paying your taxes, your insurance, your bookkeeping, you know, all of that stuff.

Making sure you have enough money in all the right accounts and so on.

If you're a one unit owner, our estimate is that you're going to spend at least about six hours a month doing that.

Okay.

If you have four units, you're going to spend about eight hours a month doing that.

And if you're 10 units, you're going to spend About 12 hours a month on those things.

That's just the recurring.

I'm not talking about the setup because the setup and all that requires more time.

So if we think about what's going on, you have a W2 job, you're probably exhausted at the end of the day, you Maybe have a family or other things going on.

Then you have to do this homework and this financial task in addition to the property management.

It's tedious and boring to do, Saad, don't forget that.

Yeah, it's homework.

Yeah, totally.

So this is the problem is that you are setting yourself up to do things manually and non repeatable tasks, you're going to fail.

And what I mean by that is if you have one or two properties you might be like, okay, awesome, that's great.

You're earning $7,800 a month.

Okay, awesome.

But your goal was 5,000.

So technically you've actually you're short by $4,200 on average.

So how do you meet that goal?

And that is why we built Baseline is to help you streamline the finances, to help you raise awareness that there is a problem before you realize there's a problem and to help you automate those things.

So you're running it like a pro.

And so I'll say one more thing which is like, well what does that mean?

Like what's a good, what are the good practices?

Right?

So everything the opposite of what we said.

And when I talk to CEOs and you know, founders of other technology companies in our space, you know, partners that we have, simple like set up a separate bank account for your property.

I think Dustin, you've taught this for a long time.

Set up a separate bank account, very simple.

On day one, sold property, sole proprietorship or LLC number two.

Actually close your books every month and look at the pnl.

If you use Baseline is going to generate for you.

Look at the P and L and see how much money you made or lost and then make some adjustments, right?

These two simple things make you into a pro.

When you do those habits, you're going to automatically know you have to tag things.

You're going to automatically know you have to pay all your bills on time.

You're going to automatically be on top of every single dollar coming in, every single dollar going out.

So very simple.

It's not a lot.

Set up the right bank accounts, our team can help you do that.

And then track your monthly income and close the books every month.

Have a meeting with your partner, your spouse, whoever you're you're working with, your property manager, sit down, look at the numbers every month and see what happened.

And once you do that, your whole business is going to change your how your entire outlook is going to change and you're going to become more strategic because now you're going to know what's going on.

So that's, that's a little bit of like our advice to folks that are listening that are looking to get started.

And one more, one last important point is that six to eight hours with a platform such as Baselane gets reduced to one hour a month.

So we're talking about a magnitude of order time save that goes back into, you know, looking.

Instead of spending it on just doing tedious, boring financial stuff, do it on, on researching better deals, do it on being a better landlord, do it on spending more time with your family.

That's, that's, that's where, where also the savings comes in.

So you guys have talked about, and I remember you mentioned something that most people would have just skipped over or not understand that this is the case.

So if you're going through an eviction and you have a tenant in there that's sending you money through Zelle, if you start the eviction on, you know, day the 15th, well on the 16th, if they send you money, then you have to stop the eviction or start eviction or all over again or up until the eviction day, the court day, they give you $5, just give you that money, then the eviction stops.

How does, how can baseline help this from happening?

And I want to pause for just a quick second and say thank you so much for listening to the show.

If you've gotten anything out of the show, I would appreciate it if you went to anywhere that you listen to the, say Apple or Spotify or wherever and leave a five star review.

Honestly, I really appreciate you leaving an honest review.

I just love giving all this information out and I want to see you succeed.

Also send this to one person, just tell one person, say, hey, Dustin wants to help a million people to invest in real estate.

You need to listen to this because it's going to change your life.

Lastly, get my real estate investment course completely for free.

Text the word rental r e n tal rental to 33777.

Rental to 33777.

I'll literally give you my course showing you everything in the business so that you can become financially independent.

Yeah, I can take that one.

So Baselane is set up with an invoicing process.

So let's say Your lease is $1,000 a month, right.

And your late fees, I don't know, $50 baselane will auto issue that invoice to the tenants and reminders, et cetera.

The tenant can pay through a ACH or debit or credit card.

And if they're late, the late fee is automatically Charged.

Right.

Now, let's say in this example, you're saying that they're about to be evicted, they're a few months behind.

For example, in Baselane, you cannot do partial payments.

The Invoice is for $1,000.

And let's say the late fee kicked in, so it's 10:50.

That's the invoice.

So when the tenant pays, they might be texting you like, hey, can I cash app you?

Can I sell Venmo you?

It's like, no, this is not an acceptable form of payment.

You can send me money here.

And this is the total amount.

Right?

I would.

I would say that's the main way that Basin can prevent that problem.

And really, any other, you know, professional rent collection system should be able to do that.

The.

The eviction part, I would say people should definitely get legal advice from their lawyer about it because, like, each city has different rules.

There's sometimes mitigation processes and so on that you can go through.

But, yeah, you're right.

If they pay you a partial payment and you're taking money from Zelle, you could just derail or delay your eviction process right there.

And any landlord who's gone through eviction once will never forget that.

And that's why we're telling you now, like, okay, avoid that by being professional and using a rent collection system like Baselane.

So that brings me up another thought or another question idea, another thing that financially, a lot of mom and pop investors, they just don't know, especially if they're managing the properties themselves.

They know just because whenever they were renting, they paid a security deposit.

So they think, I should charge a security deposit.

Now there's a right way and a wrong way to hold the security deposits.

Walk us through how Baseline helps us that.

Yeah, Jad, do you want to take this one or.

Yeah, I mean, it's very simple.

I mean, the security deposit in Baselane, you can create a different separate bank account from the bank account you're collecting rent into.

It's a very simple step in Baselane to either create a bank account for your security deposit or link an external bank account for your security deposit.

And once you collect the security deposit, in the lease creation step, you just specify security deposit goes here.

And then we issue an invoice for the security deposit to the tenant, and when they pay it, it goes into the bank account that's.

That's earmarked for that security deposit.

Any.

Any accrual of interest, any.

Any financial statements for that bank account are.

Are specifically for that security deposit and at the end you can just once you want to return it and you, you just, you know, one click reimburse it to the, to the, to the tenant and release it.

Do you need to do that for each property, each, each proper deposit, bank account, property, each lease.

Let's put it this way, each lease has its own security deposit.

So if, if you're, if you have a property with three doors, then for each lease you will have a security deposit.

Yeah, yeah, it depends.

Like at the state level there's not that much specification on where, you know, do you need it at the unit level or just as a business.

I think generally the thing that I understand from it is that you just have to have it on a non operational account.

That's really important.

That's mostly the general gist of it obviously.

Like you can go to our website, we have an entire blog on this with like every single state's requirements.

We've looked at like the detailed minutiae of it and we tell you whether we think it's eligible or not.

And so like for example, you could have an account that's like you know, Saudar business account, you know, main account within that I can have one security deposit account and then all my security deposits for all my rentals go in there.

You could do it that way.

Or if you have like three or four properties and you have individual accounts for those properties, you can have sub accounts within that that are security deposit for you know, property A, property B, property C, you could do it that way too.

It just really depends on how you're wanting to organize yourself.

There are, I've seen people do both models.

I don't think at the state level necessarily it's that specific.

But for example, if you have like multiple states that you invest in, some people are investing in, you know, Ohio and Texas, you might want to separate it for example.

So I would, I would definitely look at the laws and you know, the requirements in your area.

And again with Baselane it's literally one click like Jad said and you have a separate account.

And so you're never going to spend that money.

You're not going to be in violation because you're not like commingling it with your regular operational funds.

And also importantly, you're earning interest on that on the side as it's growing.

And you can reimburse that pretty easily once you're ready to reimburse the funds.

And that's the one thing I really enjoyed when I first saw Baselane.

I Was like, look how quick and easy it is to create new bank accounts.

Like that is just, it's so hard doing that with other banks and then having best lane.

I think I have, I don't know, at least three or four different accounts businesses inside of baselane.

And so that was one of the biggest draws for me.

Now you guys also talked about like scaling.

I love helping people to scale to get more properties, make more income, hopefully become financially independent with that.

Do you guys have any examples of anybody scaling to get more properties to make their portfolio bigger?

I, I can, I can give you the high level statistics we have on our platform.

The, the average landlord that starts on our platform within, within 18 months they almost double their rent collected with us.

That's, that's on average.

So if someone started with 3,000 rent collected when they started their baselane journey within 18 months that goes up to an average about $6,000.

So, so that's, you know, it's, it's hard to disentangle the data.

But at least at high level it seems like people who are using baselane on average double the rent collected within 18 months.

So they, we do see that growth from, from an aggregate data level.

Yeah, I can share a story which really reaffirmed my belief in building baseline in the way we did.

There was an owner that had eight properties and he told us after the fact, after he doubled his portfolio, he basically sent a message to our team and I think you've met Larissa from our team.

And he sent her a message and said, listen, I've had these eight properties for years, for years.

And I just didn't have the confidence to go beyond eight because I didn't think I can handle it.

And so I started using baselane.

And you know, this is the kind of stuff you can't make up.

We're like, we sent this to the entire company.

It's like I started using baselane.

I finally understood like how to automate some of these things and I started understanding my performance really well like in terms of what my profitability is.

And he said, I just bought a 16 unit building and I'm just sending you a thank you message for helping me set everything up and like giving me the confidence to like go out there and scale.

And that's really what we want to see is that people are.

The insight level is there.

Like we're giving you the automation, we're saving you five, ten hours a month.

But we're also giving you the insight on what you're doing in terms of P and L every month, right?

Are you making $300 or $3,000?

And that is what, you know, that, that to me was the best story that we've heard of at Baselane.

That has that really like excited us.

And what I've heard tons of other stories.

Like there's another story of like a scary story of somebody we want to help, we're working with.

There's a lady who was at a conference, doctor, owns short term rental properties.

He comes to us and said, like, I think I lost money last year, but I don't know, right?

And I'm like, oh my gosh.

Like, and by the way, this person had like really nice short term rentals.

They were like expensive properties, right?

And so we sit down, like look through everything.

It turned out, long story short, she had made like 65 grand that year.

But she was walking around the conference thinking she lost money.

This strategy was bad.

Oh my gosh, what did I do?

I spent all this time and effort trying to be like a real estate pro and I failed.

But actually she had made $65,000 that year.

And so she walked away saying, oh my gosh, I gotta double this right away, I need to do more properties.

So this is the power of it.

There's people who've already done it because they've figured out how to use Baselane, understand the insights, make decisions, and there's others who are like still walking around without that insight and they just can't scale because they don't want to buy the next property.

If you think you're losing money, why would you buy the next one?

You probably think you're not good at it, or you probably think you made bad decisions, but actually you didn't.

And so I think there's a lot more we could do.

One thing I'm excited about, which we're going to be launching later this year I'd love to share, is that we're working on our AI bookkeeping.

So this is probably going to be released sometime in the summer.

We can't really commit to timing right now, but I'm testing it out right now for my transaction.

I think Dust and I told you about this last week and it's super exciting because you just have to click a button and it's going to start looking at everything, existing new transactions and older ones, and it'll start going through and tagging them and where it's not sure, it'll ask you to review.

And then there's other things like you can set up rules eventually to program certain transactions that are hard to like Amazon purchase.

Like you don't know what that's for, but you can set up rules to tag those.

So we think this is going to be a game changer.

We think this is going to democratize real estate investing for other people because you're going to have the insight of your rental property P and L, your profit and loss statement.

So that's super exciting.

We're going to be sharing more about that I think at Rubecon where we're going to be there talking about, you know, real estate automation and then beyond that when we launch it in the summer.

I love that idea because when you have a bookkeeper, that's really what they do is they categorize everything they make sure and obviously they make sure that things balance out and everything like that.

But one of the major things is categorizing things.

And so if you can have AI figure out a way to make sure it's done right and then you obviously review, I think that's a great, great way to go.

Now, in baseline, is there any features that you guys wish people knew about or could would utilize like it's underutilized that would be good, that maybe they just don't know it's there?

Yeah, I'd say sub accounts is probably the biggest one.

Like you can create a bank account and then once that's created within the bank account, you can create sub accounts very easily.

So, so one use case I think Saad alluded to is you have, let's say three units and you want to collect all the security deposits in one account, but you still want to see each one separate.

So you can collect each security deposit in a sub account.

So end of the day all the money is still in one account, but they've been separated by the sub account.

You can do this by having one bank account for every business and then within the business you can create sub accounts 1 click and attribute it to any category you want.

So I'd say that's the biggest feature I wish people would use a lot more and make their life and day to day easier.

Yeah, totally.

100% I think in the, in that, you know, just to give people an idea, when you do your underwriting for your deals, you're doing a pro forma, right?

You estimate the cost of running that property.

So you have the revenue estimates and all the expenses.

There's a few things in there that you put that most people are not tracking after they buy the property.

First thing is a maintenance reserve like everybody here, I'm sure, calculates a maintenance reserve or a cost of monthly maintenance that they need to build up in their pro formas.

When you're about to buy a deal, 5%, 7%, whatever it is.

Right.

Normally what happens is in a regular bank account, you can't do anything with that.

It's just a number.

You can't even track it.

Right.

With Baselane, you can open up a bank account, you can have these sub accounts, and you can have something literally called a security deposit, like Jad said.

Another thing I would recommend is having a maintenance reserve account.

Right.

So you, you collect $1,000 a month.

Okay, awesome.

Put 5% away in the maintenance reserve account every month.

You will need it, I guarantee you.

Right.

That's another very common thing that I think people could do.

Another thing is new deal savings account.

Everybody wants to grow.

Everybody listening here probably wants to double or triple their portfolio.

Right.

Do you have a new deal savings account?

We have savings accounts where we pay the higher apy.

Right.

And you could start building a reserve that you don't touch with your operational funds for that next deal.

Let's say it's 20k, 30k, 40k, 50k, whatever you need, start building towards that.

And we're about to launch like automated transfers.

So you're able to set that up and you don't even have to do anything about it.

So let's say you're pulling in $10,000 of revenue every month.

You want to put away, I don't know, two grand of that for new deal.

You're going to be able to set up a rule that says, I want $2,000 from here, always moved on this date to that account and you're going to be able to move it that way.

So again, we're just trying to build these features to automate your finances.

The one more thing I would say that people could be using more is the cash flow analytics side of things.

So this is where I'm very passionate, which is if you tag everything, if you set up the rules the right way, you're going to have more tagging anyway.

At Baselane, go into the analytics section, look at your cash flow tab or your financial tab for your address or all your addresses together for the last month, the last three months, the year to date number.

Right.

Just do that, do that once or twice a month.

That's highly recommended because you're going to see exactly how much money is coming in, how much you're spending, and very importantly, you're not overspending.

This is another mistake that I think sometimes like newer landlords make you get too excited, you overspend.

And I think with the banking and that analytics, you're going to be like a, like a person on Wall Street.

You're going to be walking around spitting out numbers and you're going to sound like a pro when you talk to your lenders, your partners, right.

Your tenants even like you're just going to be more professional.

Would you say that baseline is good for a certain number of units?

Let's say, you know the guy that bought 16 units, is it good for that or can they, can it scale?

Can it get to more?

Like when you think about multifamily getting small multi families to larger multifamily, who is baselane for?

Is it for more of the smaller, you know, let's say residential or.

Yeah.

What are your thoughts there?

I would say, you know, our banking is really for any real estate investor.

Anybody can use this, this bank account.

It's a digital business checking account for real estate.

So really Anybody, whether you're one unit or 100 units, you can use baseline to run your business.

And we have everything that you need, you know, from all the sub accounts we talked about to virtual debit cards, rules to tag things, wires, ach, you know, all kinds of stuff like that to pay your vendor.

So all of that is there.

Checkbooks are there if you need it.

So really it's a fully fledged banking account for any type of investor.

Today we focus more on the smaller mom and pop investor.

That's just where as I said earlier, vast majority of the market is there.

If you look at the numbers in terms of number of owners, most of the folks are in that category.

So we do tailor more to the one to 20 property investors of whether you have one property or 20.

But we have people on the platform with 60 properties, 80 properties.

We have owners that self manage in California and different states and they use us.

And so we know that other larger investors are using us just as less of them out there.

So whether you're doing self management or if you have a property manager, you can still use baselane, right?

In fact we also have smaller property managers using baselane.

And we kind of recently discovered that we've got short term rental hosts, we've got fix and flippers using baselane.

And those are like some of our other like larger segments outside of long term rentals.

And it's because they get value from the banking and the bookkeeping or some of the rent collection and tenant screening and things like that.

And so really anybody that's trying to professionalize and wants a modern banking system with bookkeeping built in for their real estate business.

For real estate investors?

Yeah, for real estate investors.

Baseline is for you.

So it really doesn't matter what the strategy is.

So it gets me thinking too with the, I mean the banking is fantastic as well as all the accounting.

Like you have the, the rent collection, all that stuff is great.

But another thing is this is all free.

So how do you guys make money?

I mean, that's because, you know, so I'll give everybody.

Because it worked out with Baselane.

If you join Baselane, use my code.

It'll put the link in the description.

MasterPassiveIncome.com Baselane.

You'll get a hundred dollars bonus for working with Baselane.

And you also get premium support, which only, only if you indicate that you work with me, you get premium support.

But my goodness, how do you guys make money?

Because you're giving everything out for free.

Yeah, so, so the, the biggest way we make money is we're, we're, end of the day, we are a bank.

We do, we work with a part, we're not a bank ourselves.

We work with a partner bank, thread bank and we, we hold the deposits, we get paid interest on those deposits.

We obviously keep some of those interests and, and, and, and not pay them out, all of them to our users.

That's, that's the, the majority of how we make our revenue.

We are, we are considering releasing a pro tier, a paid pro tier that will, will have a lot more features that are not offered for free or offered at a lower tier for free, that's still in consideration.

Obviously we're a company, we do need to make our revenue somewhere.

But the core of what you see Baselane today, the core of it will always remain free.

Our mission is always to help the independent real estate investor free up their time from the financial management side of things.

So that will always be free.

That's fantastic.

And I was looking at the current interest rates.

Right now it's like it's over 3%.

If you put your money and you have your money kept in baselane, which is really, really, really good.

I mean for a business account where you're going to be storing your money for access to capital, if you're going to be for repairs or even buying properties, that's what.

Do you know what the interest rate is currently right now?

I think it's 3.35%.

I would say it was like around 3.4 or something like that obviously fluctuates, but I mean, it's very competitive.

You know, like companies that just do, or banks that just have high interest.

I mean, they're, they're right there.

They might be at 4%, but then it's harder to get access to that money for your business.

So I love it.

Now, what else would an investor need to know as they are systematizing the business, they're trying to get their finances, or is there anything that we might have, we should have covered that we didn't?

I would say we recently launched tenant screening, and this is a new product.

And obviously tenant screening has been in the market for years and years, but we are about to introduce that more formally as it gets out of beta.

And I think tenant screening is important because there's still a lot of risk and loss that happens if you don't screen tenants the right way.

So you could easily lose up to 5, $10,000 of one bad tenant, depending on which city you're in, especially if you're in the blue states.

Right.

Because it takes forever to evict a tenant.

And so what we've done is work with a partner to offer, I would say, a much more data rich tenant screening service, which includes all the basic stuff like housing records and criminal history and evictions and all of that.

That's the basic layer.

But then the next part that I think is a game changer is the income insights.

And this is actually something that I've been hurt by.

I've lost money with poor tenant screening data.

And I mean, I'm kind of like, sorry to admit it, but it's happened.

And our tenant screening with the income verifications is designed in a way that you could get direct access to the tenant's account, like a bank account.

They connect and it'll calculate the income for them, for example, or, you know, directly verifying, like employment like things like that that are just more robust and also has a better fraud detection with a selfie like digital identity check.

So nowadays there's tons of fraud.

And if landlords are not aware of the tenant screening fraud, just Google it.

There's so much fraud out there.

So you want to make sure you're dealing with somebody real, with real credentials.

They didn't steal somebody's identity.

And you also obviously want to check their, like, application everything, but you want to check that their income is real.

Are they working for this place?

Is that money that they showed you is not a doctored PDF but an actual real income number?

Those are two, I mean high risk areas within the tenant screening, you know, conversation.

So I would encourage people to check that out.

I think for folks that are starting out or even experienced folks, we'd love some feedback on it.

But yeah, that's a new product that we've recently built and yeah, sorry I.

Added more tool which is, which is our, actually our tenant reporting tool.

So we also need to be careful.

Like as a landlord I want my tenants to also feel like I take care of them.

Like end of the day is a relationship that needs to work both ways.

So one recent product we released is a tenant reporting tool that reports every time a tenant pays the rent, it reports it to the credit bureaus so that the renter can build up their, their credit score.

Right.

So this provides incentive for, for not only the renter obviously to pay, but also they get, they get a huge positive in, in, you know, credit boost from, from reporting their, their rent.

So a good tenant, a great tenant can take advantage of that.

So next time they work with another landlord, like, hey, look, here's all the, the rent I paid on time.

That is terrific.

And I even know of a company that they've been doing that for like, I don't know, 10 years and that's their sole company but their reach is like, they try to find tenants like, hey, you use us well, this is built in right here and it's another benefit for the tenants.

And I like exactly how you said it, it's a relationship.

Like it's, you're working with other people, you want to take care of your tenants.

If you take care of them, hopefully they're going to reciprocate and take care of your property more than likely.

And so that's terrific.

I have 30 plus properties and apartment complexes and hotels and everything.

And I realize the more that I focus on making sure that my tenants are taken care of, the properties are taken care of, the more money I make.

And so we're trying to skimp on, you know, like, oh, you know, that's that little problem here.

We're not going to spend the money to repair it.

Like you're actually hurting yourself in the end.

So I think that's a great, great idea.

Anything else before we move on?

No, I think we covered a lot.

We are going to be maybe a teaser, we're going to be going to Rubecon and actually Chad is going to be doing a 10 minute presentation on automation and real estate.

So it's going to, it's not just going to be about Baseline, it's going to be a little bit broader.

Talk about the technology, what's going on out there, how folks can use that technology to improve their rental business.

So this is a plug for Rubecon 2025 for Dustin.

If you're going to be there, make sure to catch Jad's presentation that we're working on.

And so super excited to meet your students and the folks that are in your community at the conference.

Love it, love it.

So everybody, you need to get started with Baselane again.

They've been so generous.

You get $100 bonus if you join through my link, masterpassiveincome.com Baselane as well as you get premium support included.

But you have to make sure that you identify that you come with me, Dustin, work with me, and then they're going to make sure you're taken care of.

And so that's one thing that I wanted to make sure that all of like myself as well with my properties, but my students as well, making sure they're really taken care of.

So I'm super glad to bring Baseline on and share with everybody because they're a great company and I really appreciate you guys.

Is there any other way that they can connect with you or find you guys maybe on social media or anything like that?

Yeah, I'm on LinkedIn, so I get folks reaching out all the time directly.

So feel free to reach out and message me on LinkedIn.

You could also reach us through if you want, through our support team who go to the website and just go and through the, the channel there and ask for us.

We'll be happy to talk to you.

I, I talk to like investors all the time, especially those that are starting out and they're looking to like learn a little bit more now.

We have tons of educational resources as well, so we can help you there.

And yeah, happy to talk.

Yeah, same here.

I'm on LinkedIn.

Always happy to talk.

Love it.

Guys, thank you so much for being on the show.

Thank you so much for having us.

And that is it for today.

Go ahead and get my free real estate investing course Text Award rental to 33777.

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All right, guys, we'll see you in the next show.

See ya.