Aloha, my name is Lane!
"The true meaning of wealth is having the freedom to do what you want, when you want, and with whom you want. Building cash flow via real estate is the simple part. The difficult part occurs after you are free financially to find your calling and fulfillment. But that’s a great problem to have ;)" excerpt from "The One Thing That Changed Everything"
I still work as a Licensed Professional (PE) Civil/Industrial Engineer. I began investing in 2009 in rainy Seattle, being a ramen eating cheapo I was able to buy a property early right after college. After discovering the difference between 'Cashflow Investing' and 'appreciation investing (gambling/speculating)'... I moved my portfolio into 11 single family rentals in Birmingham, Atlanta, Indianapolis, and Pennsylvania. Today, I am investing in syndications which invest in Class C & B Multi-Family Apartment, RV Parks, mobile homes, and assisted living facilities because of this Nation's demand for affordable housing - not rich people Class-A assets. My mission is to help regular people into good deals that were once only accessible to the rich. Although I don't plan on quitting the day job yet, the passive income from investing in stabilized rental properties made it possible for me to move back home to Hawaii where the cost of paradise is 10%+ cost of living and -30% less pay for comparable jobs in the US mainland - and I can get around with a bike.
Annoyed by the bogus real estate education programs out there (that take money from people who don't have it in the first place), I set out to make this free website to help other hard-working professionals, the shrinking middle-class dispel the Wall-Street dogma of traditional wealth-building and offer an alternative to "garbage" investments in the 401K/mutual funds that only make the insiders rich. We help the hard-working middle-class build real asset portfolios by providing free investing education, podcasts, and networking plus access to investment opportunities not offered to the general public.
Today I still working as an Airfield Engineer and Licensed Professional (PE) Civil/Industrial Engineer (LinkedIn Profile), thus the reason for the graphs and numbers in the posts. Shortly after college graduation, I spent my first 7 years of my career working for a For-Profit Private company. I supervised a traveling, union-based crew. In my mid-twenties, it was cool being on expenses all the time and all the airline/hotel points I collected, but then I realized how dumb it was... the only people who cared about my Platinum Status was the other suckers in first class who did not have any other family, no hobbies, no life. Although I am grateful that I had a well-paying job post-2008 recession, I traded the most important resource, time for money. Then after almost being fired I vowed to never be in a vulnerable position where someone else controlled my fate.
My Professional Resume
BS Industrial Engineering (University of Washington)
MS Civil Engineering (University of Washington)
Professional Engineer (PE)
2007-2012 Supervisor of 100% traveling Union Capital / Maintenance Crew
2013-2015 Project Engineer - Design/Permit/Construct $185M
2015 - 2017 City Engineer - Sidewalk, Signal, Streets, Drainage, Erosion Control
2017 - Current Airfield Engineer - Capital work to upkeep State airport taxiway, runways, and navigational aids.
In 2009, after doing these silly things…I was able to save for an A-class rental that rented for $2200/a month in the Pacific Northwest (how embarrassing a Rent-to-Value Ratio of 0.5% – see a video). After my 2nd acquisition of a duplex in 2012, I was looking to make a 3rd but the market was appreciating and I saw the numbers would yield negative cashflow.
With this realization, I converted my portfolio to markets with stable multifaceted job markets and Rent-to-Value Ratios that would yield healthy $250-$400/month spreads between the rents and expenses (mortgage, vacancy, professional management, repairs, and capital expenses).
As of 2016, my portfolio consisted of 11 single family homes in Birmingham, Atlanta, Indianapolis, and Pennsylvania. This was the most difficult part of building this portfolio. This is not a get rich scheme.
Update 2018 and beyond... Moving from single family to multifamily and syndication investing.
Co-owner of MFPE Investments LLC:
10 Apartments Buildings Purchased
1,433 Total Units
10 US Markets - AL, GA, IN, OK, LA, IA, TX, HI, WA, PA
Atlanta, GA - 114-unit Class-C Apartment (2018 July) - Email for video
Huntsville, AL - 112-unit Class-C Apartment (2018 July) - Email for Video
San Antonio, Texas – 253-unit Class B Apartment (2018 April) - Video
Des Moines, Iowa - 52-unit C+ Class Apartment (2018 March) - Video
Lake Charles LA – 199-unit RV / Mobile home development (2018) - Video
San Antonio, Texas – 192-unit Class B Apartment (2017) - Video
Houston, TX - 125-unit Class C Apartment Building (2017)
Oklahoma City, Oklahoma – 170-unit C-class apartment (2017) - Video
Oklahoma City, OK - 110-unit Class C Apartment Building (2017)
“Infinite Banking” Life Insurance - (2017) Webinar - Email me for the lowest fee guy
$60K in American Home Preservation Fund (2016) - InvestinAHP.com
Indianapolis, Indiana – 1 B- Class Single family home (2015)
Atlanta, Georgia – 5 C+/B- Class Single family home (2015)
Birmingham, Alabama – 1 B- Class Single family home (2014)
Montesano. WA - 18-Unit Class C Apartment Building (2004)
Previously Held Assets (Why we sell? Return on Equity):
A bunch of Private Lending deals:
In field videos - Fix and Flip to Retail Birmingham AL - Video
Rehab to Retail PML 3909 4th Ave Birmingham AL - Video
Rehab to Retail PML 577 60th St S, Birmingham AL - Video
New Castle, Pennsylvania – 1 Single family home (2013-2017) - Failed syndication as LP
Seattle, Washington – 1 A- Class Single Family Home (2012-2017) - Air-Bnb Fail Video
Seattle, Washington – 1 B+ Class Duplex (2011-2014)
Seattle, Washington – 1 A Class Single Family Home (2009-2013) - Video
Atlanta, GA - Shopping Mall (Failed Syndication as LP, 2010-2011)
Oak Harbor, WA - 4 Unit Class B Apartment Building (2003-2016)
Port Ludlow, WA - 1 Class A Home General Contractor (2005-2006)
Seattle, WA - 1 Class A Single Family Home (1998-2006)
Seattle, WA - 1 Class A Home (2004)
Check out all the videos on our YouTube channel.
Subscribe to get the latest and hidden videos.
Des Moines, Iowa - 52-unit C+ Class Apartment (April 2018) - Video
San Antonio, TX - 192-Unit Class B+ MFH (March 2018) - https://youtu.be/-5h2GKZ3I58
San Antonio, TX - 253-Unit Class B+ MFH (March 2018) - https://youtu.be/vj8ZMteppfg
Oklahoma City, OK - 170-Unit Class C MFH (March 2018) - https://youtu.be/3n4Kan6fmAw
Networking with other Buy-Hold investors I discovered two things:
1) Passive investors are hard to spot out among the typically ‘active’ RE crowd, therefore trading best practices was very difficult and
2) Passive investing is often boring since this is not a get rich quick method of building wealth and uneventful (if things are going well there aren’t too many cool stories).
This podcast and blog are meant to distill content just to the golden nuggets for the passive Real Estate Investor. I plan to go beyond the newbie tips that clutter the internet and cocktail parties because lets’ face it, as a passive investor your time should be spent on things that you love to do and those who are important to you (not trolling real estate internet forums or making makeshift plumbing repairs on your property).
As I get more experienced, I recognize that there are a lot quicker ways to make a lot of money in Real Estate such as apartment investing, flipping high-end properties, or development but for the time being I have a full-time job that is alright and until that changes this is the path that I have zeroed in on. So if you are like me, join me on this train and if you don’t like your job and want to quit you can get on board too we will wake you up when it’s your time to escape the rat-race.
Real Estate has empowered me financially I wanted to give back to the investor community.
My Motivation For Creating this Site:
1) Begin with the end in mind and decide now what you want your obituary to read. We are only here on this earth for a finite period. I like this picture because this is what will probably be on the welcome table at my funeral. I hope you can make it! Rich Cohen wrote that there are four rungs of being remembered after death: “newly dead; dead but remembered; dead and all those who knew you dead; dead and all those who knew those who knew you dead.” In terms of YOU…All that matters is what happens when you’re alive. Your legacy will offer you no pleasure after you’ve passed so live how you dream but know that there are some unconventional paths that you have to take (like buying cashflowing rentals not in your home state). And for myself…fame will do you no favors for me once I die but at least people can use SimplePassiveCashflow.com to get out of the rat race. And if that does not get your going listen to the wisdom of Frank Ostaseski.
2) Create a repository of information where my unborn children or others can reference with some context into what I was thinking. Plus I got tired of telling my friends who never took action on the advice I gave. Creating a podcast has greatly impacted my life by allowing me to meet with so many people and many of those I have built strong relationships with even outside of money and real estate.
Why a Podcast?
I jumped on the podcast ban-wagon in 2007 while I was working on the road when I did not have a friend near me. It got me into Crossfit in 2008, Paleo in 2009, Real estate investing in 2010, intermittent fasting in 2013, internet marketing in 2015, and led to meeting and creating friendships with a lot of you because we are aligned on the same wavelength. Yes... The phrase "we met on the internet" is totally acceptable! Obviously, a few of these interests have come and gone but in the macro sense, podcasts have instilled a lifelong interest and ability to learn.
Vinney Chopra calls it Automobile University.
3) While I am alive I want to teach/empower others to fish for themselves. In real estate, we use leverage and by teaching others, I am leveraging other people to achieve their financial goals in hopes that they will pay it forward. I poke fun at MLMs a lot but I would like to create a pyramid scheme of philanthropy.
I'll be honest when I almost got fired from my W2 job for nothing that was my fault (https://youtu.be/GsBDxzw6Ass) and saw how much Wall Street/mutual funds rob people, I get pissed. Which got me through the first six months of building this platform. As you know anger can only take you so far... As you will read in my book I realized the positive impact I was making which ultimately is a more sustainable fuel source for the mission that is SimplePassiveCashflow.com.
What is the change that you want to make in the world even if its a 1% move in the needle? Financial education - people have such struggle so much to make ends meet.
I was baptized on Easter 2016 and searched for a way to give back. I want to help others but I struggle with giving money away because I know I can grow my money much faster and I am much more frugal than any philanthropic organization. Bill Gates gave back only after he amassed a fortune. Tithing as you go along has a smaller cumulative impact. My end game is to give away my wealth to rightful causes via a Charitable Remainder Trust. As I grow my local community in Hawaii, I try to surround myself with like-minded people who want to help other good people financially... (not like having some sort of lame for-profit coaching business based of referral fees). I don't know how this is going to come together but I am conscious of running a non-profit entity the right way.
4) I hope my blog/podcast will help families realize the powerful wealth-building effects of real estate so they can spend their time on more important, instead of working long hours and worrying about their financial troubles. There are a lot of successful families with good jobs (teachers/engineers/programmers/finance) yet they struggle to make ends meet financially. It is their kiddos who ultimately get the short end of the stick. (Cool graphs on this subject) Being a Latch-Key Child growing up, both my parents had to work and I was left home alone after school to fiddle with my thumbs.
With Real Estate you are able to grow your wealth exponentially faster than the conventional 401K’s and stock investing, therefore you are able to escape the dogma of working 50+ hour weeks at a job that is unfulfilling. And if you are one of the lucky ones who happen to do what you enjoy... well good for you 😛
Money is not everything but it is important because it gives you the freedom to live life on your terms.
It is a great time in history to be alive with general peace and technological convinced, I see a silent war being waged upon the shrinking Middle Class. This is the Civil Rights movement of my time. In a way, people are having a Stockholm Syndrome with Wall Street profiteers being the captors. Let’s work together to redirect money from the Wall-Street casinos and corrupt financial institutions…To help the endangered ‘Middle Class’ savers find safer, more profitable investments in Main Street opportunities benefiting local communities.
"I walked the linear path for much of my life. Raised as part of the disappearing “middle-class” programmed me to study hard in school, checking the boxes on extracurricular activities, cramming for the SATs, and getting a high GPA to get into college, all to live a “practical” life. Growing up, we were told to “waste nothing” and turn off the lights every time you leave a room. I still feel guilty to order a soft drink at a restaurant as opposed to tap water." excerpt from "The One Thing That Changed Everything"
Why this podcast/website/syndicating deals is the perfect storm:
1) I don’t have kids. After learning about hundreds of listens situations via free calls I hear that this sorta complicates things... 😛
2) I am an ISTJ (introversion, sensing, thinking, judgment abbreviation used in the publications of the Myers–Briggs Type Indicator). I don't really know what the last three manifest in my life but I am a recovering introvert - a side hobby is this group I started to help others get out of their shell. I believe an introvert has nothing to do if you like people or if you are loud and annoying. Your affinity is determined where you derive your energy. Going to the day job and working with you know "others" was really tiring for me. The weirdest thing is that when I talk to others over the phone or in-person I get so excited and sometimes a little too passionate. That's how I knew I was on to something. I'll say it many times but what really fires me up is redirecting money from the Wall-Street casinos and corrupt financial institutions…To help the endangered ‘Middle Class’ savers find safer, more profitable investments in Main Street opportunities benefiting local communities. Part of the reason I moved back to home to Hawaii was to bring back what I have learned to 1) impact professionals who bought the house, commute two hours every day, but still struggle with finances and 2) help displaced immigrants to Hawaii who do not mind going homeless and don't embrace entitlement or education. My Vision is that I can partner with a group like Projectdestined to make social change in my hometown. Just as we crowdsource deals, if you have any ideas, please let me know. I will be honest, at this point, to use an airline analogy, I am "still trying to put my oxygen mask on first."
"My mission is to teach and empower good people to realize the powerful wealth-building effects of real estate so they can spend their time on more important ventures and passions instead of working long hours and worrying about their financial troubles." excerpt from "The One Thing That Changed Everything"
Tired of reading? Get to know me by listening to my past guest podcast appearances:
7/17/2018 - Ask Buck Joffrey with Lane Kawaoka
5/31/2018 - Epic Real Estate Podcast with Matt Theriault
5/24/2018 - Cracking the Entrepreneur Code
3/5/2018 - Mitch Russo - Live the Life of Your Dreams By Investing To Generate Passive Income
12/2017 – Chris Voss
12/2017 – Simple Wholesaling Podcast
12/2017 – Hard Hat Holly
11/2017 – Pat Hiban’s Real Estate Rockstars
11/2017 - Revengeance Economics
11/2017 - Mark Allen’s Multifamily 5
11/2017 – Voom Voom Veer
10/2017 - Unstoppable Success
10/2017 – Before the Millions
10/2017 - Real Estate Radio LIVE
9/2017 - Commercial Real Estate Pro Network
9/2017 - The Real Estate Locker Room Show
8/2017 - Pensacola Business Live Radio
12/2016 - Old Dawgs REI Network
Why do you keep your day job?
Decisions are significant players in determining the financial circumstances of your life.
One bad decision can cost you significant money.. A lot of my peer doing passive investing have pretty boring.. Yea I have failed for not doing my due diligence but for the most part I have taken very small risks from turnkey rentals to 90%+ stabilized non-recourse apartment investments today.
When you are in a position of weakness financially you tend to get attracted for the magic pill and that Jeepers Creepers guys whispering to you about "hey do you want to hear about passive cashflow."
Guess what? There is nothing passive about getting cashflow.. If it were that easy to get then it would be easy for the next kid who lives in their mother's basement to take it away.
When you are in a position of scarcity/weakness, all future decisions you make are made out of necessity – to solve some immediate short-term immediate need, which is usually a financial one.
By covering your bases and having a stable day job that puts food on the table you minimize the chances of a bad decision for the following reasons:
- Out of desperation, you fail to do your due diligence (homework) before making an investment;
- Out of desperation, you partner with someone whose background you really don’t know enough about;
- Out of desperation, you ignore facts or details that a non-desperate person would never ignore.
Never make a major decision when you are in a position of scarcity/weakness.. Only make major decisions from a position of abundance/strength.
This is my competitive advantage over other syndicators and why I believe in the projects that we are joining in the Hui Deal Pipeline Club.
For more on this subject of the day job go here.
- The only time you move fast... is to get things from the printer (at work)
- Beware of Cheap Easy Free
- Stop wasting time, just pay it
- When are you going to be an investor and not a landlord
- The 5 people you keep in close contact will be the end of you
- Don't be an Ask-Hole, add value
- Don't worry about the cost of a shovel when you are trying to dig a hole
- Go against groupthink
- Don't be another Waldo
"I started the Hui Deal Pipeline Club because I want to see each of you get to your goals financially so you can focus on what is really important to you. There are other fundraisers out there that will train their investors down to 10-15% IRRs on crappy deals and do "deals to do deals" or to pick up acquisition fees. Between investing alongside you folks and wanted to grow my track record the right way with the best product I know you guys will keep coming back and bring your friends."
SPC GET ‘ER DONE PLAN:
- Email me any feedback or questions at Lane@SimplePassiveCashflow.com.
- Hopefully, you will rate me 5-stars on Itunes… but if not email me how I can improve. For a limited time, if you leave me a 5-star review on Itunes please send me an email and click here to schedule a complimentary 15 minute think tank/coaching session.
- Check out the Podcasts and Blog articles I recommend starting here. If you are want to know the day-to-day things I manage to keep my portfolio progressing see the “My Story” posts.
- “You can get everything in life if you just help others,” said Zig Zigler. Are you always asking for and taking? If you have a scarcity mindset, you need start living with an abundance mindset.