You're listening to the Master Passive income podcast network.

Welcome to the Master Passive Income show.

This is Dustin Hiner, and I'm here to help you create wealth, afford anything you want in life by investing in real estate and achieve financial freedom.

And in today's show, we're going to be talking all about fear and what is keeping you from investing in real estate, becoming successful and getting you past all those fears so you can live the dream life by investing in real estate and never have to worry about money again.

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 Hiner.

What's up?

What's up?

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

And you guys know that I am physically moving my entire family from Phoenix, Arizona, to Tennessee.

Now, last week I told you about the whole game plan of how we're going to leave the house that we're currently living in as a rental property.

We bought an Airbnb in Tennessee in May, I believe.

Yeah, end of May is when I bought it.

And it's been Airbnb making us good money, but we're going to move into that one because we really want to move to Tennessee.

And I am also leaving my current house here in Phoenix as a midterm rental.

Now, when you buy one rental property, you start a business, and there are different ways that you can actually utilize this property to make money.

One way.

We love long term.

In fact, oh, my goodness, I love long term properties.

It's hard for me to do short term or midterm because long term is so simple and I make a lot of money.

But you make more money and it's more work, but you make more money if you do midterm or short term.

Well, we have the short term property in Tennessee, and that's going tremendously well.

I'm looking to pick up some more short term properties, and here's the exciting news.

Leaving here, leaving my house as a midterm rental property because in Phoenix, my goodness, there's like 50,000 short term properties in all of Arizona.

Phoenix.

I don't know.

I don't really know the exact number.

Maybe 35, 40,000.

There are so many short term or Airbnb type properties that I want to stand out a little different.

And we're right by.

Like, my house is literally right by the spring baseball all the different spring baseball is literally, they all come here, all the different teams, they come here for spring baseball, and my house is perfect for it.

And we're leaving at the end of October, and it's going to be the best time of the year to actually rent it.

So here is the plan.

And, oh, before I get to the plan, because I shared the plan for it with you, but I'm going to show you the good news.

I put this, this house on the market, and I put it on Airbnb.

Vrbo even did zillow furnished finder.

And we got some people looking at it.

But then Airbnb, I got somebody to book it the day after we leave.

That is October 30.

They are moving here 2024, and they're going to be here for three months.

So January 30 at the end of the month in January, that's three months we are going to be getting or having a midterm renter.

And so it's already rented.

I mean, it literally took, like, maybe a week for somebody to honestly, to rent this.

And I think we could probably long term rent this house for $2,100.

That's, you know, evie, easy be able to get that for $2100 for long term.

No, you know, furniture, no, nothing.

It's just long term.

Well, I put it as a midterm rental, and I even gave everybody, hey, you, rent per month, I'll give you 15% off.

Well, we got $3,400 per month for this property being fully furnished.

And another reason why we wanted to have it fully furnished is in case we ever want to move back or we kind of come visit, we have a house we can move into and live at now $3,400, but that's not all profit.

Now, when you think about the expenses you have for long term, that's going to be a little bit different than medium or short term.

But when you think about what you have is you actually still have to pay the electrical bill.

When you have a long term property, then the tenants pay for the electrical.

Well, man, in the summer, this last summer, we did a lot of laundry.

We had, you know, seven people in the house now, but one month was dollar 500 in electrical.

I mean, just crazy.

Dollar 500 in electrical.

But that's accounting.

I have to account for that in my numbers.

If I'm running for $3,400, well, I'm blessed.

I don't have a mortgage on this property, so the majority of it is income coming into our pocket, but we have more expenses.

And here's the crazy thing.

And I already committed to midterm property, so we spent, you know, lots of money on furnishing the place.

Well, I, you guys all know that I talk about building the business and you hire experts.

Well, I found two expert property managers that do midterm properties.

And honestly, both of them, when I told them that we could long term rent the property for $2,100, they both said, you know what?

Honestly, I think the market is very saturated for all types of properties, short term and midterm.

Now, I think it's probably better since you get 2100 for it.

Go ahead and rent it long term.

You have a lot less headache and everything like that.

Well, that is, I mean, that's great information.

I was really kicking myself because Mandev, $2100, I don't have to pay for electrical.

I don't have to pay for water or sewer or garbage.

I don't have to pay for Internet.

Internet.

I had to lower it to the lowest one is like $50 a month.

So that eats into what we're looking at as our revenue.

But if we're renting over $3,400 and let's say all of our expenses are six, $700 a month.

So let's say $700.

Well, we're still at $2,700.

We're making a, probably an extra five or $600 a month by doing a midterm rental.

If we could get it rented now, since it's the best time of year, the winter and in the springtime is the best time in Arizona, we figure let's just run with it and let's give it a year.

Let's do an entire year and let's see if we can keep it rented and let's see if we can do better than a long term property with these property managers.

So praise the Lord.

We got it rented out for three months, which is great, which gives us plenty of time.

So beginning of February all the way to April, like spring ball season.

I already have people wanting to rent this place for spring ball, which is terrific.

I'll have, hopefully have another three months.

So maybe six months getting $3,400 a month.

Now the summertime hits.

That's when we're going to have, you know, the rubber meets the road.

We'll see if we actually make money then.

And if in the summer we don't make money, well, the way we're going to make money is we're going to do renting out per room to traveling nurses.

Traveling nurses do not have the big stipend like they did back in 2020.

They were getting, like, five grand, four grand to rent a place because they needed people to come in and work.

Well, they don't do that anymore.

They're getting, like, $1,500.

Well, if I could rent out each room.

We got three bedrooms in this house at $1,500.

You know, the master might be a little more, smaller rooms might be a little less, but that is $3,500 right there.

You know, so it's where it's midterm rental again, and it's $3,500.

So as soon as spring ball ends, you know, April comes and goes, we're going to hopefully have it rented as a midterm for traveling nurses, renting out per room.

So, man, this is awesome.

This is what I want you guys to do as investors, to be thinking about all these different options for how you can make money.

Now, I know where you are right now.

If you're listening to this and you haven't invested, you might have a little bit of fear.

A fear about losing money, fear about finding the right property.

I'm sorry, finding the wrong property and buying a money pit and then losing money, all these fears come up for every single person.

I mean, I still have the fears when I buy a property now.

I have a lot more, I guess, experience that helps me to get past that fears pretty quickly.

But that's what we need as investors is other people around us to help us to get past these fears.

And that's what this episode is about, is helping you to get past these fears.

That's going to help you to move forward to buy your first property.

Now, if you already have your first property, let's say you have three to five units, or maybe you have six units.

Well, in the real estate investor roadmap that we have here at master passive income, we want to get to five units as fast as possible, because when you're zero to five units, you're at the beginner, the starter stage.

That's the mom and pop.

That's somebody doesn't have a business.

Well, once you get to six plus properties, to 20 properties, then you are a business owner.

That's when we scale, and there are problems that come with every single step of the way.

I think it was like, five episodes ago, I talked about that real estate investor roadmap.

You definitely want to go back and learn that because you, as a real estate investor, are really following what every single real estate investor does.

We all follow his path.

It's basically playing monopoly.

That's really what it comes down to.

So as you get past the roadmap, step by step by step, eventually you're gonna get the pace where the fear is not nearly as bad.

And I have this episode to help you to get down the path, because every single step along the path, if you're a beginner, you know, starting, if you are a business owner, even an expert, there are a fear.

There are things that you need to step past.

Now, one big thing that, a huge announcement.

I'm really super excited.

You guys know that we started Rubcon.

That's the conference in person conference.

Well, we also started Rube club.

That's a real estate wealth booth club.

That's a monthly meetup.

We started our first one in Charlotte in September.

It's going fantastic.

We have lots of people coming.

We're also having a monthly meetup.

We're starting 1 November 19.

So we are gonna have the newest rube club.

The Phoenix Rube club is gonna be starting.

It's gonna be at the downtown Holiday Inn right by really close to the airport.

And you know what's kind of funny enough, I'm literally moving away and I've lived here for seven years and I'm having to fly back like three weeks later to come speak.

So if you wanna come hear me speak at the newest Rube club here in Phoenix, Arizona, it's gonna be, I believe we're starting at 06:00 p.m.

on November 19.

So check the link in the description.

I'm going to give you the link so you can see more about the Rube club.

The first one is absolutely free.

Come hang out with me.

Charles Rose junior and many other people are going to be there.

And that is another way for us as real estate investors to get past the fear and getting past these roadblocks that come as we are going down.

The investor success roadmap and getting around other people is the best way to do it.

You need to come even just come hang out with me for the day.

This first one is an absolutely free event for you to come and hang out with me and everybody else.

And I'm going to be teaching as well.

And you know, like in fashion of the real estate wealth business conference.

It's all about helping you.

It's all about serving you, helping you, not pitching you for big this, that.

No, we're here to help.

So check out the link in the description.

I believe it's going to be rubecon.com club.

You'll get more information.

You can register.

So we can know that you're coming, but it's completely free on November 19 at 06:00 p.m.

at the downtown Holiday Inn, which will get you more information.

So register for that now.

Super pumped to share with you how to get past all this fear that comes when you're investing in real estate and getting started.

And every single step of the way you're gonna hit a roadblock.

But we gotta get past these fears, and I wanna 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.

Rental 23377 rental to 3377.

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 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.

Now, buying that first property, that is very, very difficult.

I went through that same thing.

In fact, every time I buy a property, I'm kind of thinking, you know what?

I'm praying that this is going to work out.

But what I've done is because I've created a system, because I've done it so many times, it's really just like, you know, going to a grocery store, just picking out something and buying it and saying, you know what?

This is going to work for me and put it to good use.

Exact same thing.

Especially once you have an area of the country that you invest, you already have 34567, maybe 15 properties.

You already have a property manager that's going to run the properties for you or that is currently running the properties.

It's so much easier to buy that property now, because you already have the business put in place.

So that is.

We'll get to that in just a little bit.

But I wanted to talk about some fears that people have.

The fears that come into people's heads when.

Oh, my goodness.

Like.

Like, I'll give you a question that people get asked me.

What if I lose money?

Or what if I buy the wrong property?

Or what if I buy in the wrong area of the town or estate or the another country?

What if I buy in the wrong place?

What if the property burns down?

So I have some questions I'm gonna go through, and then I'm gonna give you step by step ways to get past these fear.

Now, what really happens in the very beginning is there's so much information as well as there's so many properties, so many places to look, so many different options on, you know, what type of house to look for.

There's so many things.

So somebody starts to feel overwhelmed.

They start.

The investor who's never bought a property, who's starting to build their business, they start feeling overwhelmed, and they kind of get a little, like, lost in the headlights, you know, like a deer looking at headlights.

They just stop and freeze.

So you kind of get lost in headlights, and you feel overwhelmed.

But then you shut down where you don't actually buy that first property.

You don't get that first win under your belt of a property.

That makes you money.

Now, when you start feeling overwhelmed, you start feeling like there's.

There's too much out there.

You don't know if you're going to be able to do it right.

What you need to do is never lose sight of your goal.

Like, what is your ultimate reason, and why do you want to invest in real estate rental properties?

For me, it was because I was tired of working for somebody else.

I wanted to be independent, or I financially independent, so I didn't have to rely on somebody else for a job.

I literally just wanted to be able to do everything on my own and not rely on somebody else.

So that was my goal.

Your goal might be because you want to, you know, spend more time with your family.

That's fantastic.

Or travel the world or buy the things that you want, or whatever it might be.

Don't lose sight of your goal, because your goal is gonna help you to remember that.

You need to push through all these roadblocks that come in your way, all these hurdles that come up as you're running.

You know, imagine yourself a track athlete.

You're running on the track, and there's hurdles in your way.

Well, you got to jump over those hurdles.

You know, if you crash through them, you're going to get hurt.

So you got to try to get over those.

So don't lose sight on the reason why you want to invest and put that on the forefront of your mind.

Like, if it's your, your kids, you know, make sure the picture of your kids is on your mirror when you wake up every morning.

You go to the bathroom, brush your teeth, and you see the picture of your kids and said, this is why.

Because I want more time to be able to spend time with my kids.

I want to be able to coach the little league games instead of missing them because I'm working, you know, I want to be able to take them to the circus because I have money now to be able to do that.

I want to be able to just be there for them and watch them grow up and live life rather than pass it by and then wish I had time back at the end.

So never lose sight of your goal.

And with that, and I already said, this is what is your, why.

Why do you want to invest in real estate?

Why do you want to have the passive income coming in?

Remember that every time you start feeling overwhelmed, it'll hopefully help you get focused.

Because I know it did for me.

It got me more focused on my vision and plan and the direction that I was going with real estate because I knew the ultimate goal was to eventually quit my job.

So I have more time for my family, I had more money, I had time, I had control over my life, and I was able to do that.

Now in feeling overwhelmed, what I want to help you out is to understand that what is going to get you even more understanding of the process of buying properties, building a business.

When you start feeling overwhelmed, you get even more overwhelmed.

It's really to get educated is one of the best ways to get past feeling overwhelmed.

I know when I start feeling overwhelmed, it's because I don't have enough knowledge or understanding or information of the certain situation.

I'll give you a more practical example.

So let's say, you know, when I'm driving through Salt Lake City, like, Salt Lake City is really, really big.

Well, I get a little overwhelmed because it's a big city and I have no clue where to go.

So I'm relying on my gps, you know, you know, 21st century gps, where, you know, you say you have to have a map or talk to people, you know, get out of your car, like, hey, where do I go here?

I remember, have to do that, but so when you don't know where you're going in the city and you have no map, you have nobody telling you where to go, you start feeling overwhelmed.

Like, man, I don't have any information on how to get to where I want to go.

Like, if you're driving from, let's say, oregon, you want to go to Disney World, which is in Orlando, Florida, you want to drive all the way there.

Well, if you don't have a map, if you don't have somebody telling you how to get there or where to go or what to look out for, if you don't have any of that, you're going to feel overwhelmed because you're like, man, I'm just confused on what to do.

Now, the key is to get educated.

Have somebody helping you.

If you have somebody, if you know somebody that invests in real estate, talk to them, ask them questions, you know, pick their brains to see how you can make sure that you don't have any problems.

Or as best you can, medicate through those problems by having somebody else help you.

So get educated on real estate.

That's listening to podcasts like mine.

You read blog articles, you can go to other sites, you can go to real estate investor meetups in your area.

There's so many different ways to get educated.

So you wanna get educated to help you to know the path that you wanna go.

Now, here's another question I get, or one of the main questions I get, well, what if I lose money?

Like, what do I do if I lose money?

Well, absolutely.

That's a great question.

You're investing your money.

It's not like you're just going to be throwing your money and getting a guaranteed return.

There is a possible way that you lose money.

But what we do at master passive income, and why I teach all my students, is what we want to do is mitigate as much as we can from losing any money.

Now, the way to do that is not to invest, to like, flip a property where you hope appreciation is actually going to make you money.

You know, you buy low and you sell within six months, and you flip, you flip the property, you know, put money into it, make it look better.

And then we don't do that.

That's not something we do.

We invest in long term, where we get rental income from that property.

So here's what you do.

You want to invest for monthly passive income.

The question is, what if I lose money?

Well, if you invest in monthly passive income, you are going to mitigate so many chances of losing money.

Here's what I tell every student.

So here's, I'm going to give you a tip that's inside of my ultimate real estate investing system.

That is my course that I have for all my students.

So inside there, I'm going to, I'm going to get you a little insight into that course.

It is.

You only buy properties that make you $250 or more each month in passive income.

I had one investor tell me, well, I tried to buy properties for only $100 a month.

Like, if I made dollar 100 a month from that one property, then I am ecstatic.

Like, that's what I want from that one property.

Well, my opinion is, okay, if you have one property that is rented and it only makes you $100 a month, how much is that a year that you would make after all expenses, if your profit is $100, how much is that going to make you in one year?

Well, twelve months out of the year, you're only making $100.

How much is that going to be?

That's going to be $1,200 or $1,200.

Now, in my opinion, that is really not that much money.

$1200.

If you have an $800 mortgage and you have an eviction or you just have the tenant move out for one month, that's dollar 800 of your $1,200 eaten up.

That's only dollar 400 extra.

You know, God forbid you actually had two months that you had a tenant out.

Well, you're actually losing money now.

And so what happens if you have the furnace go out and you needed to replace that, and that's going to cost, you know, $1,500?

Well, that's going to eat up your entire, your entire income for the entire year.

So, but if you invest for dollar 250 or more each month in passive income, you are going to mitigate all those problems of having the possibility of actually losing money.

Now, another question, or, sorry, along with that question is, what if I lose money?

You want to do your research before you do anything, before you buy a property, you want to do your own research.

Number one, like I said, when you're feeling overwhelmed, get educated.

But number two, you need, or with losing money, you know, what if I lose money?

You want to do your research of the area.

You want to do the research of the types of property that are for sale, research on what type of property managers are there.

I, how much they charge, what type of inspectors.

You want to look at what type of clientele is actually going to be there.

You know, if they're going to be, if there's a higher crime in certain areas of the city or not.

So do your research so you understand the entire market before you buy.

You know, I invest in a lot of different places across the country.

And what I do is I try to find out as much as I can about each state and each city and each even neighborhood that I invest in.

Like, I even know, like the zip code.

Like in this particular zip code, this is where the bad problems problem.

You know, properties are like, there's more crime here, or it's harder to collect rents and stuff like that.

But in this other area code.

Sorry, yeah, sorry, zip code.

This other zip code is actually a really, really good area, a really good zip code that I want to buy properties.

So I know the area as best I can.

And the way I do that is by talking to people, doing research online.

And that'll go way outside of the scope of this podcast.

So let's move on.

Now, another thing is, you know, if somebody asks, well, what if I lose money?

Well, we wanna mitigate losing money.

And another one is, along with getting educated, is you wanna work with other investors in like a mastermind or a real estate investor meetup, you wanna get with other investors to talk to them about what's working for them, what's not working for them.

Maybe they're selling a property, they're moving into apartment complexes and they need to sell a property or two properties.

And they're good properties, but they can work great for you, but it's not for them because they're moving up to apartment complexes.

And so the thought is, you know, what if I lose money?

You wanna be working with other people to make sure that you're not gonna lose money.

Now, I'm not guaranteeing you, I'm sorry, I'm not guaranteeing you that you would not actually lose money, but we are doing everything we can to mitigate these problems.

Now, I've been doing this for twelve or 13 years, and I don't lose money because I have so many properties.

Now, some properties, you know, they might lose money, but I have other properties that all that income from those property, they make it up.

Like, I've literally never written a check in my twelve years of investing, I've never written a check and given it to my property manager to pay for something because all the money from my other properties pay for the expenses of the other properties.

Hopefully that makes sense.

Hope you're tracking that.

Okay, another question is that I always get, what if I buy the wrong property?

You know, what if I find the wrong one, it looks great, but then it's a money pit or nobody wants to rent in it.

Or, you know, so many different issues with buying the wrong property.

So my key to that, to getting out of this issue or thought that you're going to buy a wrong property is along with doing your research, builds on with that is you build a team.

You build a team of people around you that are going to help you.

Number one, find the right property, buy the right property, inspect that property, make sure you have everything fixed up right and finding good tenants and collecting the rents of.

So as I just went through that list, I mean, you're going to find property managers, you're going to find realtors, you're going to find inspectors, contractors, roofers, plumbers, electricians.

You're going to find all these people so that at any given time you can call them up and say, hey, I need you to do this, or you do XYZ or whatever it might be.

And especially your property manager, that's your quarterback of your team.

I think like a football team quarterback is a leader.

You want your property manager to be the quarterback to lead everything so that you make money.

Now, also, if, you know, the question is, what if I buy the wrong property?

Well, you need to protect yourself from those problems and protecting yourself from buying the wrong property.

And buying the problem properties is you actually have inspections on the properties from home inspectors, roof inspectors, plumbers, property managers.

So basically everybody you build on your team, you're going to have them inspect the property now, not just have them inspect their one thing.

Like, I'll give you a pro tip here.

If you are having somebody work on the toilet, you know, there's toilet that needs to be fixed.

Well, if a roofer is working there, you know, they got to use the bathroom.

So when you're talking to the roofer and they're fixing the roof, roof up, you could say, hey, while you're there, would you mind using the bathroom and just letting me know what condition the bathroom is?

Because I got told that the real from the realtor that the bathroom is really rough or it's great, whatever it might be like, this is what I've heard.

I just want to verify it with you.

So you use other people to inspect other work.

And that's a pro tip again, is you're going to use everybody to check other people's work.

And what other people are saying.

Like, I never take everybody's word or one person's word for it.

Like if I talk to my property manager, they say, hey, this is fantastic.

Or better yet, if I talk to a realtor and this realtor is saying, this is the best property, you got to pay this much because it's going to go fast.

And I, you know, you better hurry up.

You better even pay more.

I don't take their word for it.

I'll even call like three realtors and ask them their, you know, my questions.

I'll even talk to two or three property managers or home inspectors.

Like, I'll talk to lots of people.

I don't take one person's word for it.

Another question that goes along with all of these is, what if I buy in the wrong area of the town or of the state or even the country?

Like, what if I just find the wrong area?

And my answer to that is, only buy where your property manager will recommend you to buy.

And that's because they will be okay with collecting rent there and finding tenants.

So if you track with me, the first answer is find a property manager.

If you're looking at a town in a, in a, you know, in the country and then the state, you find a certain city or town.

Do not buy a property until you have a property manager who is actually going to make sure that the property is taken care of on a day to day basis.

Now, if your property manager will not manage that property, that's a good indication you probably shouldn't buy it.

Maybe you might need to find a property manager that will, that could be the case, but at the same time, they're going to give you reasons why.

Like, hey, you know, it's just a rough area of town.

Like, even in the middle of the day, it's hard for me to go over there without, you know, getting concerned that somebody's going to have, you know, you know, I don't know, some kind of crime or whatever happened.

And so you, and here's the key.

Another pro tip I wanna give you.

You want to make sure when you go into a certain area, you talk to as many property managers as you can find, the one that you would like to work with, and then work with them on the property.

I get with all my students.

I give them unlimited access to me on looking at deals.

Like, I'll analyze deals with them if they're in my coaching package.

I say, just send me your deals.

I will analyze them with you.

And I get those deals that, you know, not deals, but like the properties, they come to me and say, hey, what do you think about this property?

My first question is, what did your property manager say, like, I can do my own research, but I'm only using research that's online.

But I'm not going to be calling property managers because that's your job.

Once you have your property manager, my question is, what did your property manager say?

How much rent are you going to get for the property?

How likely is it going to be rented?

Are they concerned about the property?

Do they like it?

You know, all these sort of things.

Basically, what does your property manager say about the property?

This is a pro tip, but you absolutely, it's common sense.

Like, if your property manager doesn't want to collect money from there because they're saying, I'm concerned about my safety, that might not be the best place for you to buy.

It could be.

I'm not saying don't, you could still make money, but that gives you an indication of what type of property that you're getting into.

It gives you a little understanding before you actually buy the property.

Now the next one is along with, what if I buy this, you know, in the wrong town, the state or country is you need to research your area.

And that's by talking with everyone that you can come across, even looking on Craigslist for other rentals in that area.

Call up that person that is either the landlord or the property manager and say, hey, you know, I'm an investor.

I'm looking at buying this area.

Do you have any properties that you'd like to sell?

And as they're talking about, maybe I do, maybe I don't.

And then with that you say, well, so how is the area?

You know, should, should I be concerned about any areas?

What do you think about the crime here or the schools or all that sort of stuff?

So talk to everyone about the area before you buy.

Remember, we're building the business first and then buying the property.

Now, here's another question I get.

What if the place burns down?

Like, what if, oh, and along with that, what if I get bad tenants that actually tear up the place?

So we'll actually the first one.

So what if the property burns down?

Well, get landlords insurance.

Just like with every property, you have your car insurance, you have your home policy for your property that you live in.

You know, if you're renting, you have renters insurance.

Get landlords insurance.

Not just homeowners insurance, get landlords insurance because maybe it might not actually cover for a tenant living in the property.

And you don't want that where all of a sudden you realize, oh, no, I had a tenant in there and they're saying I can't get, you know, the property burned down, and they're not going to cover it because there was a tenant in there, and I didn't have a landlord insurance.

So make sure you get landlords insurance.

Now, the next question quickly is easily, you know, the next question right after, you know, place burns down is, well, what if I get bad tenants?

You know, what if I find a tenant that is actually a bad tenant, tears up the property?

Well, here's a big key.

Do a background check on all applicants, every single applicant.

And here, I'll give you another pro tip.

Even if the applicants in that area, which I've had property managers tell me, well, in this area, people are not going to pay $30 to apply because, you know, they don't have that much money.

It's a, you know, it's a rundown area I pay for.

If the tenants do not want to pay for the background check, I will pay it.

I will pay $30 for a background check to save me $2,000 on an eviction.

Wouldn't you do that?

Would you be like, jump?

Like, sign me up, you hear?

And I'll be right up.

You'll say, sign me up.

I'll give you $30 to save $2,000 absolutely.

Every time.

And so I've even had people lie on the application.

They look fantastic on the application.

But after I run the background check, I find out they've been evicted four times in three years.

Well, I don't put them in my property.

Cause I don't wanna be the fifth time.

So you wanna do a background check on all applicants.

Now, I'm gonna give you something that is absolutely free.

It's a software that I personally use and I recommend to all my students.

And it's fantastic.

It's called cozy, c o Z Y.

It's a property management system, and it's absolutely free for us as property managers.

And it handles just about everything.

And they're constantly adding more things to the software.

And what you want to do is go to masterpassiveincome.com.

forward slash co zy.

Cozy, c o z y.

Masterpassive income, forward slash, c o z Y.

They'll get you set up for free.

You won't pay anything.

The only way that they make money is when they do background checks.

I mean, literally, your tenants paying for the background check, and they will list your property for free.

They'll handle all your expenses, meaning you don't know all the expenses you could put inside there.

All your income people can pay online.

It's fantastic.

So go to masterpassiveincome.com.

cozy.

To get such a fantastic property management software.

Now, along with the bad tenants, what the question that I get after that is, you know, even if I get good tenants, what if they tear up the place?

You know, the first one is bad tenants.

I'm gonna have to evict them, obviously.

Hopefully, you mitigate from that by doing a background check.

But what if the good tenants actually tear up the place?

Well, again, I do a background check.

Absolutely.

Do any question that I get from any student that says, what if this with tenants, what if that with tenants is run a background check and pick the best tenant that you feel is going to be taking care of the property.

That's going to be very truthful and honest.

So always?

Always.

I mean, I can't say it.

This is a pro tip common sense, but most people don't do it.

Run a background check.

Now, that's criminal.

That's.

What's a financial background check, to see their credit score, see how much debt they have and all that sort of stuff.

But also eviction.

You want to see all of that.

Now, what if they tear up the place?

If you do a background check, you're mitigating the chances.

But here's the thing.

If they do tear up the place, it's really the cost of doing business.

Hopefully, you're making dollar 250 a month.

So if they tear up the place, it's going to maybe cost you, you know, $1,000 to fix up the place and get it rented again.

Well, you've made $3,000 in the one year and $1,000 on the changeover.

Okay, that's.

That's a bummer.

But let's say you're only making $100 every single month, and you're making $1,200 total.

Well, $1,000 fix up.

You only have $2, $200 left over.

So anyways, all that, say, do a background check.

You want to make sure that you mitigate potential issues with tenants.

All right, gUys, so now we are coming to the end of the show, and I realize there is so much more to talk about.

There's so much more to share.

So I'm going to put this into two different parts.

Come back next week.

You're going to listen to the other ParT, where I'm going to go through the Actual Process that you need to go through to get over the fear and get your first property.

So come back next week and learn more about how to get over the fear of buying that first property.

All right, again, go out there and get my free course.

Masterpassiveincome.com freecourse.

Get that for yourself so you can get started investing in real estate now.

Hope you guys are starting to see that it's actually possible for YOu to invest in real EState.

Get out there and start doing it.

All right, guys, you take CaRe of yourselves.

I'll see you next week where we pick it back up with getting over the fear of how to buy your first rental property.

And that is it for today.

Go ahead and get my free real estate investing course, Texas Word rental, the 3377.

Rental.

The 337777.

You can also join my real estate wealth builders group coaching.

Get all my courses.

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

See ya.