Welcome to the Master Passive Income podcast where we talk about investing in real estate rental properties 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 Hinertainous.

It is time for the master passive income show.

I'm super excited to have you here with us today.

I want to show you how to invest in real estate.

Text the word rental.

Rental to 3377.

Rental to 3377.

And I will literally give you my free real estate investing course, full course, showing you literally how to do everything from buying properties, finding a new area of the country to invest, making sure you don't lose money, where you're making $250 a month in passive income and you're buying and hold rental properties.

I will literally show you that.

Remember, text the word rental to 3377.

And I am really, really excited to have somebody on that has actually been able to invest as well as all of us here at master passive income and got started investing and bought her first property very, very quickly as well as she is one of my friends wives.

And obviously having knowledge of investing himself, he taught her.

His name's Charles Rose Junior.

He, you know him, he's a part of master passive income as well.

And so he actually taught his wife and his wife did everything on her own.

Man, Catherine and Charles, thank you so much for being on the show.

Absolutely.

We are glad to be here with you today.

And I'm so glad that Catherine is joining us in this episode because she's just crushing it, right?

I told you last time, it's, I'm a little bit jealous, but, you know, in a good way, not in a bad way, right?

Because we have one bank account.

Right?

But, you know, she, she is, she is definitely crushing it.

And she's gotten her first property way faster than I got mine.

So Catherine, now you started investing and you're not necessarily like a big time investor at all.

Like, you just are a normal person, just like us.

And you saw, hey, it's actually possible.

Your husband proved it many times over.

So now tell us about your thought about getting started investing.

Were you really hesitant?

Were you ready to jump right into it?

You're a little more shy.

And so I want you to feel completely at ease.

Everybody here, we're all friends here at master passive income.

So just, you know, let us know.

How did, how was it when you said, you know what, it's time to start investing myself?

Because I know Charles got over the hurdle.

I know that was probably a lot of work to get all both of you over the hurdle to have him start investing.

But now you saw the proven track record.

Charles knows what he's doing.

You were able to jump into it, talks about you doing it yourself.

Was that rough or was that easy?

How did you feel?

So, you know, something that I'm sure I want is financial freedom.

And so, like you said, you know, real estate works.

And I was like, you know, I need to get on board with this because two are better than one.

As we work together, we get.

We can accomplish our goals of financial freedom quicker.

So because of that, I started to, um, join the business.

When we think about joining the business or starting the business, Charles already has worked in Memphis, Tennessee.

That's where he's really predominantly growing his business.

But you didn't just jump right into there.

You said, I'm going to start my own brand new area.

Because I remember when Charles told me this, he sent me a text and said, hey, kathryn, it's getting your first property.

I was like, yes, that's awesome.

He started telling me more about it.

I was blown away.

You started everything from scratch.

So talk to us about that process where you're investing now.

I did your real estate course, and it took me, like, two months, I believe.

And so, you know, after that, we heard from, you know, other investors, like other cities that have, you know, good potential to invest in, and I just wanted to implement what I learned on your course.

And I started to build our team in Little Rock and Detroit, and I just, you know, continue putting in offers and just waited until that right deal came in.

Obviously not working, obviously, with Charles.

Charles is coaching you through this process, and you understand the master passive income process of building the business first, making sure we have the right property managers, we have the right people in place.

Was that something that was a little scary to you, you know, building the business first, or was that something that, like, hey, I got to jump into it because I need to do this before I buy a property?

Yes, it was a little bit scary because, you know, I have to be talking to people more, and I'm more, like you said, shy, like, in the background.

So that was a challenge.

But more than that, I wanted financial freedom, so I want this to work, and I accepted the challenge.

I love that, because you knew the goal.

You knew where you can actually end up.

Like, the end line of where you're, like, if you're running a race, you got the finish line is where you're going to actually get to, and you know that you can get there.

You just need to put the work in to actually get there.

Now, the hard part is building the business.

A lot of people say the hard part's finding the property.

That's, in my opinion, that's really simple.

I have other people, like wholesalers, realtors, and other investors and investor groups and all that stuff, I could find properties easily.

It's building the business that's harder.

And so as a new person that's getting into talking to property managers, realtors and inspectors, you're talking to these new people.

How did it come across with you being new?

Were you with that nervousness and everything?

How did you get over that?

Because I know a lot of people, when they said, you know, I start talking to property managers and they know just by the way I'm saying things, they know I have no clue what I'm doing.

So I don't have any experience.

As opposed to somebody that has many properties.

How did you get over that?

Or what were you able to do to help you get past that?

So, you know, before I called the property managers or whoever I was calling, I had, like, the questions I was gonna ask them.

And, you know, after maybe my third person, I felt more comfortable.

And as I kept calling more people, I was feeling more comfortable where, you know, I was.

I was over that fair.

That's great.

I know a lot of students, when they're asking me in, like, our group coaching that we have at real estate wealth builders, we start talking about, well, how do I not sound, obviously, getting over that scariness or, like, the fear of doing it, but also, how do you not sound like a newbie?

One thing that I always try to encourage people is to don't over elaborate on where you are in your investing career, because a lot of people might try to, I guess, help the person that they're talking to, let's say a property manager or realtor, know that they have what they need in order to get the job done.

As far as an investor to buy a property, let's say it's a, you know, you're talking a realtor.

And they'll.

So let's say something like, hi, my name's Dustin, and I'm looking to build my team.

Like you, they kind of use the Budwords buzzwords.

Like, I'm looking to build my team.

I need to find a realtor, and I need to find, you know, you start talking too much for me as an investor.

I've done it many times.

I don't even.

I just.

I don't beat around the bush I'm like, hey, property manager.

Hey, realtor.

My name is Dustin Hiner.

I'm an investor.

I need somebody to help me find properties.

Boom.

And just leave it like that.

And so as you get more and more into the business and become more of an, I wouldn't say expert, but, like, you know your business, you're absolutely going to be able to realize that you don't need to prove to anybody.

And so everybody listening this now, and for you, Kathryn, especially right now, you don't need to prove to anybody that you know what you're doing or you don't know what you're doing.

You're an investor.

Make that decision.

You've already made the decision right now because like you said, you know the finish line, like where you're going, the financial freedom.

You're an investor.

Just start there.

Tell yourself you're an investor so that from this point forward, you don't have any of that jitters or bugs kind of inside of you, like getting you nervous?

No, I'm an investor.

I'm going to get it done.

Okay.

So now talk to us about, you looked at Detroit and Little Rock.

So Detroit's in, what, Michigan?

And then you have little Rock, Arkansas, and so you have those two.

Now, you're building the business in both.

You're looking for property managers and realtors.

Which area did you settle on and why did you settle on that area?

I'm still kind of working in both areas.

I'm.

I'm continually putting in offers over and over, over and over.

And it just so happened that my first deal came in through Little Rock.

That's great.

Now in Little Rock because we're looking at two different cities.

And I personally like having my students look through two different cities.

And the reason why is it's like, let's say you're going to go fishing.

If you have one fishing pole and you go to one lake or one pond, you put your fishing pole and yeah, you're going to do fine catching fish there.

But what if you can, like, have two fishing poles in two different ponds?

You're going to have better chances of good getting good properties or good fish out of those ponds.

So that's really good.

Now talk to us about this first deal.

How did you find it and then how did you run the numbers?

Tell us about the numbers.

Like, what did you buy it for?

How much is the passive income for it?

This deal was very interesting because I put in the offer and it didn't go through, but I think it fell through.

So it came back on the market, and as soon as I saw it, I look at my calculation and the cash flow and all of that, and then I was like, oh, I'm going to put this deal again.

So I messaged my realtor and so we put the offer again and it actually came through.

I think they had it for like 50,000.

And then we offered 30,000 and they said, no, 40,000.

So when they did that, I was like, okay, they're willing to negotiate.

Oh, yeah, let's say 35, I think.

Yeah, I think we did 35.

Yes, 35.

And then there was like 36.

But, you know, it was still a good deal.

So we was like, okay, we'll settle at 36.

So with this property on the MLS, it went off the market.

You were, you know, put an offer, it went off the market, then it came back on.

It's interesting, when offers come back or properties come back on the market, it gets us a little insight to see in what's going on with a property.

Maybe the seller, they might say, oh, the buyer didn't have the money, so they backed out.

They always say that.

Like, literally always say that.

A realtor, seller's realtor would never say, oh, the property was bad, so they backed out.

They will not say that.

They'll say they'll put it on the buyer.

Now, as long as you're doing your own due diligence, it doesn't matter if it comes back on the property.

You never know exactly what it was.

But you ran your numbers, you did your due diligence.

Now that's awesome.

So, you know, I love negotiating, so I'm so excited that you negotiated on that.

I mean, if you went down to $36,000 from 50,000, what's that $14,000 in savings that you literally got just by asking a question, you know, offering lower.

Then they countered, which I love it when they counter because it's like, oh, hey, they're willing to play ball.

And then you countered again.

Just that second question saved you another $4,000.

That's money in your pocket.

Tell us a little bit about that.

That, uh, negotiation process, was that nerve wracking and going through that?

Like, were you able to push through that even though it was, you were nervous in doing it?

I think I was kind of there for her, like you were for me with the first deal through negotiation, because she was, like, afraid, just like, just like I was with you, Dustin.

And so I literally, you know, I gave her the words, just like you gave me the words.

And that's one of the great things I love about investing in the coaching with you, Dustin, is.

Is to help me get through that scary phase.

Because just like me, Katherine, you know, she was the first deal she wanted.

You know, she wanted to get it.

You know, let's just get this deal.

But, you know, I know if just by.

Just like you said, dustin, just by asking that simple question, you, you know, you can say 14,000 and then again, $4,000.

So I literally, you know, just like how you gave me the words.

I gave her the words, and she literally used the same words.

I love that.

What's great, though, on top of that, is having that extra person outside of you, because once you're in the deal, you get emotional.

You kind of get not necessarily tied into the property, meaning, like, you're emotionally attached to it, but you're really close to the deal.

If somebody outside that has no stake in the deal whatsoever, they can objectively see what's happening.

And so I remember, Charles, with coaching with you, seeing that whole process of you going through this first, you know, the purchase of your first property.

I think you saved, like, 30 plus thousand dollars on that one property, which was amazing because we saw in the negotiation process, I said, hey, Charles, it's not worth what they're asking for.

We need to offer lower just because it's not worth that.

They're just, you know, they're throwing a Hail Mary out there hoping somebody's going to buy it.

But no, you got it down so much.

So having that third party or another person that's objective, that can see exactly what can be beneficial in a negotiation process is super awesome.

Okay.

From those numbers, like $36,000.

What's the passive income look like on a date or monthly?

Monthly basis?

It's 300.

Yeah, 300.

Yeah.

300.

Yeah.

$300 a month in passive income, and you got $14,000 off on the purchase price of the home.

That's.

That sounds like almost a home run to me.

I mean, anything over $250 is what we're shooting for.

$300 a month?

I mean, what's that?

That's $3,600 a year from this one property.

That's.

Good job, Katherine.

That's awesome.

Now, how did you finance.

How did you finance that property?

How did you actually get the money to buy it?

So this was a joint venture, and we use private money, and it worked out pretty well.

So you found somebody else that had money that wanted to lend?

And are they partners?

Are they lending you the money?

Do they own part of the house.

Do you give them, like, interest rate and you have a final payment, then you completely own the property.

So, Dustin, so this was.

So you remember when I missed the coaching call?

Just, I told you we had a private lender I was meeting with.

And so the private lender, he wanted to jump in with this deal, on this deal with us.

And he, you know, sometimes he lend us the money, but he wanted to get a piece of the action, and he was still willing to lend us the money, but we thought, well, let's try doing a deal like this.

Well, maybe we could use some of our money to buy even more deals because it worked out advantageous to us.

Well, I know the guy very well as well, and I met him in college.

And so meeting with him about this deal, he wanted to get a part of.

He wanted to be a part of it.

He's willing to give us full control of the property.

And so it worked out really good for us to get into the deal with him and split the cash flow and expenses, and he also funded the entire purchase of the property.

So it worked out really good.

So another nothing down deal that we closed together.

That's fantastic.

So no money out of your pocket.

Now, a lot of people think they want to jump into real estate.

They want to just jump right into no money down deals, which it's possible, but it's really hard.

Charles, you've done a lot of deals, and you've also had a lot of experience, and on top of that, you've talked to a lot of people about private money.

That's how you can actually do really well in getting no money down deals is having experience having your own properties and showing a track record to somebody who has money that, hey, you lend me money, I'm not going to screw it up.

I'm actually going to make sure you get your money back, plus interest on top of that.

And because of that, there are no money down deals out there.

It's just a little harder to do when you're newbie.

But, Charles, because you had that, I guess you already have an investor that's possibly ready now.

Are they like, 50 50 partners on the deal with you?

Yes, they are 50 50 partners on the deal.

And so it just worked out really good for us that way.

But Katherine applied some, everything she learned from your course, and so she already had lenders lined up for the property.

We just so happened to use this particular lender just because I've worked with them on.

On two other deals, and he's a good guy to work with.

So even if we didn't get it funded through him, she already had lenders lined up for the deal in Little Rock.

So that's, which is a great situation to have.

Right.

It's a great problem to have when you have multiple lenders on the property.

Also, too, I also blasted on my private money lenders list.

Remember the email list that you had recommended me starting?

And I try to send out an article every month and every time I have deals, I blast it out there, too.

So she had lenders lined up.

I had some from the private money lenders list.

And we just went with the most what we thought was the most advantageous.

That's the best thing about having multiple options.

You basically have tools, like if you're a carpenter or a plumber, like you have a tool belt or a bunch of tools.

You just figure out what tool fits into whatever problem it is that you have to fix it.

And that's great.

Having so many options now with the.

So you guys don't live in Little Rock, Arkansas.

How are you able to make sure that you're not losing money, that you're managing the property well?

How are you able to do that living where you guys live now?

So, yep, it goes right back to applying everything we learned from the ultimate real estate investment system.

Definitely, like you always taught us, build the business first.

So having that property manager in place.

So we did that well before putting in offers.

And it's so tempting.

Sometimes when you see all the good offers on the market, you just want to find an offer and find a property manager.

But we did it.

We did it the right way.

We found the property manager first.

So the property manager is managing the day to day operations, and we're just networking and meeting people on the ground to sort of be our eyes on the ground, just like what we did in Memphis.

So Catherine is literally replicating the same thing we did in Memphis in Little Rock.

So everybody heard this, but we skipped over it pretty quickly.

But I want to catch on, have everybody catch on to this.

So what Catherine said, Katherine, you said that you're putting an offer after offer.

A lot of people think, oh, I put in one offer, it didn't work.

Let me, I'm just going to move on.

No, that's not the way it works.

You need to continually, continually putting an offer after offer because you never know when one's going to take.

It's just like putting a line in the water and trying to fish.

You never know which time it's actually going to hit.

So Kathryn, talk to us about the idea of putting in multiple or different offers on different properties and continually do that.

Is that nervous for you?

Is that something that you were able to get over pretty easily?

I just, you know, continue putting in offers.

Like, I think it was like yesterday, I put in like maybe like twelve offers and as soon as I see one on my email, I'm already analyzing it and sending it to the property manager to approve it and I just continue putting it and then it can become a little bit discouraging sometimes because, you know, for some reason I thought that within a month I was going to have my first property because of the work I was putting in.

I'm fortunate to have my husband who encouraged me through that and I just continued putting in more offers, more offers until finally found the right one.

Because we don't just want a property, we want that right deal that is gonna work for our good without cash flow.

I agree and that's great.

And you put twelve offers in on one day.

That is phenomenal.

Most people would even put that in in a month.

And so when they're getting started, they're not realizing that the more offers you put in, the more options or more chances you have to actually getting a good property.

Because you never know at what point the seller is in their process of selling.

Somebody might really be like, I just need to get rid of this property.

And if you don't put in an offer, you don't get it.

So yeah, that's fantastic.

So Katherine, what have you learned going through?

Is there anything that you've learned that you can share with us in going through this process that could help us out as we're getting started?

You know, as I was going through your course, I remember that you mentioned, do not get emotionally attached to the property.

You're not gonna live there anyway.

And then I was like, what?

What is this guy talking about?

And so, you know, as I was going through all of it, I realized that it can become easy to become emotionally attached to property, especially after you have been putting in all this work.

And then you see finally one offer that my work and you do all of your work and then it just, it don't work.

It don't work with your cash flow.

So I believe that I learned that that's important, not becoming emotionally attached.

That's great.

And I know in talking to all my students as I'm coaching them in putting in offers and knowing your top dollar, because when you get emotionally attached, you'll go above that top dollar.

You know, I should not go above this because above here, it's not worth it.

And I'm not going to be making the right money in passive income.

I might even start losing money.

And they.

If you go above that top dollar, then it's actually going to be detrimental for you and your business.

So that's a great, great lesson to learn.

I've had to learn that, like, many, many times over.

It's like, okay, okay.

Just calm down.

It's not that big of a deal.

There'll be another property.

Well, great.

Well, Katherine and Charles, you guys are awesome.

I'm so super excited that Charles, you started working with me.

I started coaching you one on one.

You've just destroyed this entire process.

I crushed it.

You've done so well in this business and now you're coaching Katherine, and Kathryn is actually doing it on her own.

I'm really encouraged by you guys.

That's so, so awesome.

So, you guys are awesome.

I really appreciate you guys being on the show.

Thank you so much for sharing all your experience.

I'll see you guys soon.