Time is the most important thing… If not now when?

Time is the most important resource. You can trade time for money and vice versa. It is pretty rare that you can not throw money at a problem and make it go away.

Some hacks I have implemented updated 8/1/18 (See how far I have come

  1. Using disposable chopsticks, plates, bowls, clubs, and forks to minimize time to wash dishes and put away. Also need less space for more of this “stuff”. I think we do not realize how much not only time we waste on this but water and electricity go into this.
  2. Use Uber as much as I can to minimize stress, the chance of an accident, 50 cents a mile per the IRS in wear and tear to your vehicle but most importantly you can bring your laptop and get some work done.
  3. Leasing a car – such a great decision. Its fun, the numbers make sense if you are able to grow your money at more than 14% a year, and don’t have to deal with any maintenance issues.
  4. Eat out. It just tastes better too. And no cleanup, prep, grocery shopping, etc.
  5. Send me some of yours!

I stumbled upon a great visualization of your time.  Basically, the yellow below is the time we sleep, blue is leisure, and light blue is at work. See the diagram here http://flowingdata.com/2017/05/09/adulthood-days/

Two takeaways:

  1. If you have not started investing… when the heck when? Get a mentor and compress the learning curve, decrease costly mistakes, and get on with your life!
  2. There is only a limited amount of time to create a legacy… VAs or Virtual Assistants I use.

Fiverr is the world’s largest marketplace of talented online freelancers who pride themselves on
getting things done for you. On time, on budget. Designers, developers, writers – everything you
need for your next project is here. Now let’s tackle your to-dos, today!”

Here is more from Fiverrs website:

“Fiverr’s global community of freelancers have delivered tens of millions of
high-quality Gigs from over 150 service categories across 190 countries.

Fiverr is a global online marketplace offering tasks and services, beginning at a cost of $5 per job
performed. Freelancers use Fiverr to offer services in more than 150 categories, to customers
worldwide. Currently, Fiverr lists more than three million services on its site.
Fiverr is the world’s largest marketplace of talented online freelancers who pride themselves on
getting things done for you. On time, on budget. Designers, developers, writers – everything you need
for your next project is here. Now let’s tackle your to-dos, today!
Join over 11M businesses who use Fiverr’s freelance services.
Fiverr is the world’s home for digital, creative and professional services, providing a one-stop shop
for millions of digital services, all at your fingertips.
Fiverr is a digital marketplace that allows you to make your business better, stay on budget and get
things done in just a click.
Fiverr is the easiest way to get everything done, at an unbeatable value.
Need something now? As the world’s home for digital, creative and professional services, Fiverr
provides one-stop shopping for millions of digital services, all at your fingertips.
Fiverr gives you instant access to millions of Gigs from people who love what they do, in just a click.
Need something done? Let someone else take care of it! Get everything from resume help, to
designed invitations, to cool gifts, all at an affordable price. Whether you’re building a business, or
just looking for something unique, find it on Fiverr!”

Some of you had questions about Virtual Assistants which I have had some growing pains with…

Take 1: I went to various countries/regions Craigslist where I heard there was cheap virtual labor such as the Philippines, Ukraine, Latin America, Eastern Europe, Etc. I created a generic posting for a Virtual Assistant and a link to a Google Form that I created that was supposed to farm data of willing workers and ask binomial questions such as if they had experience with graphics, audio editing, Excel, English, and how much their hourly rate was. This was a success and the idea was that I would create a database that I could BCC the emails to competitively bid projects. Unfortunately, when I sorted my list for the desired skill I was looking for, I discovered that many of the potential candidates sent generic resumes back. They did not even read the job description. I guess as the saying goes “shit in shit out.” Tim Ferriss talks about giving strange instructions to potential job candidates such as a requirement to fax in their application (in an age of limited fax access) to see which candidates follow directions and can overcome minor Resistance of not having fax machines.

Take 2: It seems like the tasks are taking a lot more time than it should. To some respect, that is to be expected. What I am trying to wrap my head around is the cultural differences not to mention the language barrier. In some of these Asian cultures, honor and face are utmost importance and sometimes it is culturally the normal to lie to save face. In America, we preach stepping up and admitting fault and moving on which I believe is a true demonstration of high value. So it’s a little frustrating… I know the internet sucks at these places but give me a break. I am just surprised they are not telling me their dog ate the GoogleDoc. Successful people take ownership and I accept this as MY fault in terms of me not having my job scope defined and linear instructions for the virtual assistant to carry out. If my virtual assistant misses on the deliverable or takes too long I take full responsibility.

Afterthoughts: A great discussion at a recent Mastermind I attended around this topic. Seems like a lot of people are backtracking from cheap (sub 8 dollar an hour labor) and opting for higher quality workers. I believe the vision of an employee is to get something done cheaper than your personal hourly rate, also get it don’t faster, and with a “Sir… I was completing task X and I found this wrong in our process so I took care of it and wanted to discuss this with you.” I don’t know if I will ever achieve this level of initiative in any person trading their time for money but one can only dream. Until then I will try to switch to a more project-based system as opposed to having a VA on call for a 10-40 hour set time. The cons of this project-based methods are that it requires more touch points for me to keep micromanaging each project and this is the exact reason I am looking for help in the first place. Time is the most important thing Jelly Bean. https://www.youtube.com/watch?v=BOksW_NabEk

The Random list of tasks to outsource:

1. Organize your travel (including learning your travel preferences). This includes making all your travel arrangements,
organizing all your flight info into your favorite travel app, and even remotely monitoring your travel to be ready to deal with
any missed flights or oversold hotels.
2. Handle billing disputes.
3. Help setting up bills onto auto payment on your credit card.
4. Address and mail cards, letters, and packages. Sure you may still handwrite the thank you, but do you really need to look up
the address and post the letter?
5. Update your contact manager (or CRM database).
6. Screen your e-mail and handle low-level responses. This includes deleting or archiving things you don’t even need to see.
7. Update your blog and social media accounts.
8. Organize and manage your filing system, both paper-based and scanned e-files.
9. Take dictation (either live or via recordings, perhaps using Voxer, one of my favorite apps).
10. Set up appointments and hold your schedule.
11. Gather all the needed data and prep information for all your appointments. For example, I ask my assistant to put to the
memo of any appointment she posts to my calendar any recent email exchanges and the contact information of the person
I’m meeting with. This saves me untold time when you compound this service over 15-20 meetings I hold each week.
12. Daily clean-up of your office, including refilling items.
13. Screen phone and e-mail so you don’t get the interruptions.
14. Take notes at key meetings and follow up with attendees on key deliverables.
15. Keep a master chart/list/calendar of your projects and deadlines and set reminders.

16. Tickler all birthdays and anniversaries, holidays, or other important dates, and even arrange for gifts, cards, or phone calls
that make you look good.
17. Update his or her own “Project List” so that all the tasks and deliverables they are responsible for in one place for you to
review.
18. Get, open, sort, forward, handle, and if need be shred your mail.
19. Coordinate with outsourced vendors when you have an IT issue. You just work from a back-up computer for the day and let
him or her troubleshoot it with your IT vendor.
20. Order things online for you and handle any product returns or service issues.
21. Handle any personal errands or schedule any household repairs. Yes this is perfectly reasonable as it saves you time that
you can reinvest in creating value for your company.
22. Notarize your documents by becoming a Notary Public in your state.
23. Help you to streamline your office—filing, sorting, and systematizing wworkflow
24. Basic updates to your Web sites.
25. Create and continue to refine the “expert system” for how to be your assistant (this one should be part of their job function
right from the start). This way if you promote your assistant they have created the core system for your next hire. If they leave
you to work elsewhere, the transition is much less painful.
26. Dealing with tech troubles on your phone or tablet computers. They can do this during the day when you’re in the office doing
other more valuable work.
27. Any parts of your projects that he or she is capable of doing for you. Constantly be on the lookout for things to try them out
doing. For example, my assistant helped expand the syndication reach of my business articles by over 100,000 annual
readers.
28. Download movies or audiobooks
29. Search for contacts of people you need to meet
30. Bookkeeping with a CPA or without one
31. Edit videos
32. Make calls
33. FInd sellers
34. Take Calls from leads
35. Call banks to find a portfolio lender
36. Assemble a list of podcast guests to contact

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Podcast#089 – #LaneHack – Using the App ‘If Then Then If’ and other automation hacks from your emails and random hacks

• Set up location based automations

• Setup routine maintenance reminders

• Set up news alerts

• Have weekly updates so you can batch tasks and updates

• Have alerts exception based via text or email

• Followupthen.com

• File away your emails

• Pull tasks don’t push it to you

• Using gmail tags like “At home”, “Bank Statement”, “When you have time”, “Stuff to do when I’m tired”

• GTD by David Allen

• 7 Habits of Effective People

• Trello app

• Don’t go to grocery story at busy times and park far away

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Podcast#088 – Interview with Jason Yarusi – Flipping is just a JOB and going Large Apartments

• Sold off short term rentals and now Large MFH investor

• Started in family construction business for framing

• Started flipping then rentals

• Moved from using cash for everything to using leverage

• You can bring Money Time Knowledge or deal

• Team up with Lane 😛

• Push through bad experiences

• A year of learning MFH before going into it

• Getting your Fannie Mae card is key via a mentor

• Add value to a mentor

• Keep your focus but pivot quickly

• Mediation and running helps him set the day

• Focus on where you want to be

• Check out the classifieds in newspapers

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Podcast#087 – Fundamentals – Interview with Dana Dunford -What amenities should I provide my rentals and new technologies.

In this episode we discuss:

• Nest automates thermostats and one day in the near future is a good implementation in B rentals

• HVAC or dishwasher breaks and technology can alert you

• Technology good for B and A class

• Class B rentals are having Amazon lockers and these Nest thermostats

• Know your avatar

• At one time backsplash in kitchens was unheard of and now its a cheap fix

• What is standard in the market? Dishwashers, garage doors, laundry price, etc..

• Zillow gives good filters for amenities like washer and dryers

• Ask your property management what is standard

• SFH’s should have the tenant paying the utilities

• RUBS is Reimbursement Utility Billing System

• Skeptic on keyless entry soon but good for short term rentals

• A lot of new hardware and software coming but lets try it out at our own homes first yea 😁

• Use the technology in your rentals for tracking and monitoring

• Don’t have personal relationships with your tenants

• Property manager’s are the most critical people on your team and go off referrals

• Yelp is just angry vendors writing bad reviews for each other

• I look for the negative reviews as a good thing because they don’t want to cave in to resident requests

• A nest thermostat or Thanksgiving turkey might be a good gift to bait a longer contract

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Podcast#086 – Fundamentals – Interview with Ty Crandall – Getting Business Lines of Credit

Ty Crandall is an internationally known speaker, author, and business credit expert. With over 17 years of financial experience Ty is recognized as an authority in business credit building and is the author of two books on credit named Perfect Credit and Business Credit Decoded. He has been featured by Entrepreneur, Inc, and Forbes.

Ty currently serves as the CEO at Credit where he has helped create and grow one of the biggest and most credible business coaching operations in the United States. We help investors obtain capital to purchase real estate.

Something that you have recently thought about “burning your cash” on for time savings or an improvement in quality of life.

Several forms of automation, most recently an automated system for billing recovery.

www.creditsuite.com, info@creditsuite.com, 877-600-2487

Business credit does not use personal credit

Uses your Business EIN

1) Set up a business, website, physical address, land line

2) Get setup with reporting agency – write to reporting agency to see if you have an existing report

3) Get credit cards using EIN (Do not use Social Security Number)

4) Get Uline, Quill, Grainger, Seaton, Gimler, etc accounts

5) After 5 accounts get Home Depot, Lowes, Cash Credit Cards, Amazon, Sears

6) After 10 accounts get VIsa or Mastercard accounts

creditsuite.com/reports

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Podcast#084 – Interview with Mark Walker & Dealing with Very Shady Characters

Mark Walker is founder of Luxmana Investments, which focuses on residential and multifamily investments. Mark quit his corporate job and is now a multifamily investor.

1) How much simple passive Cashflow are you making today and how are you doing it?

(You don’t need to give a number if you would like privacy. You can be vague such as halfway to quitting my job, cover my mortgage, make 25% of my expenses, over $10k, although people like when people open up the kimono):

My passive income is more than 200% of my expenses. I have a portfolio of 22 SFR’s in Denver, Colorado, and a 64-unit apartment complex in Dallas, Texas. I also have a small equity position is another 96-units in Dallas, TX, but I am not the managing member of that.

2) What is your Han Solo moment – Han Solo and his buddy Chewbacca from Star Wars were cruising around the galaxy as lowlife smugglers but then cross paths with Luke and Leia and his life took a pivot point. Describe the resistance that was the catalyst for change:

I met a general contractor in 2010, and we decided to do a couple residential development deals together. Through that relationship I was introduced to several people who were instrumental in me taking the next steps to build my passive income portfolio from there. Combine this with the fact that I was becoming increasingly frustrated with the corporate world, and that drove me to become even more focused on escaping the rat race.

3) Did you “burn the boats” or did you let it happen naturally? Was there an internal (you decided to make a change on your own – what was thought process?) or an external trigger (ie got fired from your job)?

I decided to make the change on my own, as I desired financial freedom and to spend more time with my family. The external factor of becoming frustrated with the corporate world was not the primary driver, but it did add to my motivation.

4) What was your worst life/business moment and what did you do after? Lesson learned?

In the 2005/2006 timeframe, I moved forward on a real estate opportunity which turned out to be fraud. I can certainly elaborate on this, but long story short: I testified to the Grand Jury to help get this indictment, and I was the second person they put on the stand at the official trial. The offender received a 130+ year prison sentence, which was the largest sentence ever given in the State of Colorado at the time for fraud. I learned about the importance of “trust, but verify.”

5) Current 2-week experiment and 6-month project? (90-180 day goal) A mark of a high performer is to put your ego aside and accept the help of others and mastermind maybe folks can help you by you asking.

My top two goals in 2017 are around family and health. If I can find and do one 50+ unit multifamily deal in 2017, that will be icing on the cake.

6) What is your simple passive Cashflow number? Now imagine you had 2x that amount… Describe your ideal day, detailed routine, and what projects you are working on.

Simple passive cashflow number is $20K/month. If I had $40K/month, it’s full retirement in Central America. It would be lots of days in the sun with my wife and daughter, plus exploring this region of the world. We would, of course home school our daughter.

7) Something that you have recently thought about “burning your cash” on for time savings or an improvement in quantity of life.

Tesla P100D – so incredibly impractical, but really cool.

8) Tony Robbins identifies two large concepts that we are continually struggling to gain perfection at: #1-Art of Fulfillment and #2-Science of Achievement. If you died tomorrow and I were to email this to your kids a couple decades later… this is what they would hear.

a) What is your secret/hack for the “Science of Achievement?” Any secret habits to share?

Never stop learning. Learning leads to action, and action leads to success.

b) What is your secret/hack for the “Art of Fulfillment?”. How you do contribute back?

There should always be a reason other than money for why you do anything. For example, I didn’t build a passive income portfolio because I wanted to buy a fancy car, bigger house or a Tesla. I did it because I wanted to be financially free so I could spend more time with my family and positively impact other people. So, I contribute back by giving people a great place to live, but I am also able to give more of my time (e.g. Salvation Army, etc).

9) Anything we missed and contact info if you would like anyone to get a hold of you. URL?

I would like to give the listeners a free gift as a thank you for listening: 10 “Not So Obvious” Ways to Boost Your Multifamily Property NOI. You can get it at: http://www.luxmana.com/simplepassivecashflow

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Podcast#083 – Fundamentals – Thinking Outside the Cubicle Poem

If you don’t want what everyone else is getting.

We are the hard working W2 employees who followed the competitive linear path. We were groomed to be employees/pawns not businessmen or investors who build passive streams of income/cash flow and value for others – and to the gain of a greedy for profit company.

Our path started by being a high performer in elementary school and high school. We were told to study hard, do extracurricular activities, get high SAT scores and GPAs in order to be admitted into a top college. At college, while other peers were playing frisbee in the Quad, we grinded it out to get a professional college degree that was “worth something”. By now the linear path was so ingrained in us that we went to the well again for higher level degrees and specializations. If that weren’t enough, we were faced with final professional tests to become certified at our jobs and faced the rigours of junior level employment… all as we further delayed gratification for our efforts. Let’s not even talk about the student loans… we still balanced our monthly budgets like good boys and girls. (If you can’t manage your personal finances then do not read on… money only magnifies your personal tendencies, good or bad)

Today, for some of us, we truly enjoy the profession we set out to achieve decades ago. Others are left unfulfilled and enslaved by the “golden handcuffs” where we find ourselves still running in the hamster wheel… just a bigger hamster. The dogma of the Wall Street “buy and pray” method just is not going to achieve our goals. We had the big house/nice car but along with that came the monthly payments that created this financial incarnation. In the end it was not about the money but freedom.

Real estate built on a foundation of cashflow is the quickest and most conservative way to build lasting wealth. “Wealth” is not necessarily how much money you have but it is defined as ‘how long’ you can live off your passive streams of income with your level of expenses if you stopped working. This can be achieved by two ways:

1) Increasing your passive income or

2) Decreasing your expenses

The SimplePassiveCashflow.com way is focus your finite energy on building passive streams of income rather than once again delaying gratification to decrease your expenses.

The “True Meaning of Wealth” is having the freedom to do what you want…with when you want to do it. Building cashflow via Real Estate is the ‘Simple’ part of it… finding happiness and fulfillment after you are free from the W2 day job and other obligations… that’s the difficult part.

Work with people that make it fun and ‘play’ along the journey. There is always going to be the next deal and the next plateau. You are always going to be thinking “I will be happy when I have…” so enjoy the ride and in the end, leave everyone and everything better than you found it.

#GoodProblem2Have #PayItForward #the4% #Value-Add #Add-Value

• Study hard

• Go to college and get a good job

• Save your money

• Live below your means

• Anti millionaire next door

• Get it by earning more not cutting back

• Play offense not defense

• Diversify your investment

• Get out of debt

• Retire at 65-70 and live off nest egg

• Good time/market/economy -excuses

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Podcast#082 – Fundamentals – Interview with Brad Baldridge

Paying for College Expenses with Coverdell, 529s, and hacking the Financial Aid

Brad Baldridge is a late-stage college planning specialist. He helps parents of high school students plan and pay for college using strategies such as merit aid, need based aid, tax planning, savings and investing for college, negotiating with colleges, scholarships and loans. Over the past 10 years Brad has directly helped hundreds of families plan and pay for college. He has provided in-depth college plans resulting in increased financial aid, scholarships, identification of the right schools at the right price, and better loans.

• Coverdell has low contribution limits (2k per year) but the good thing is that it can be used for a wider range of education expenses

• 529 is State sponsored and some states have special breaks based on where you live

• Do the Coverdell first and then the 529 in most cases

• Tuition, fees, computer, room and board, prescribed supplies, and groceries. Up to the cost of what the dorm would be. Sorry no beer

• Need to start before high school or even when a toddler

• You can transfer it to another brother or sister

• Its rare to have too much money in a 529

• Consider making a higher rate of return outside a 529

• A 529 has a menu of choices just like the 401k

• Show that you own nothing so that you don’t make to much money to qualify for financial aid

• The net value is what is important for financial aid

• The look back is two years (prior prior year) but this changes from time to time

• What about putting funds back in the grandparents generation? Gifts from grandparents are reported by income. So time it for the last year of college.

• Can’t use trusts to hide the asset, but can use irrevocable trusts

• There are tax credits but check your taxable income so you don’t

 

Thank you Brad Baldridge for joining us on Simple Passive Cash flow!

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Podcast#081 – Fundamentals – Interview with Mark Podolsky – The Land Geek and Raw Land Investing with Facebook Craigslist buy sell groups

Mark J. Podolsky (AKA The Land Geek) is widely considered the Country’s most trusted and foremost authority on buying and selling raw undeveloped land within the United States. He has been actively investing in Real Estate and Raw Land since 2001 and has completed over 5,000 unique transactions. Mark’s company Frontier Equity Properties, LLC is an A+ rated BBB real estate company.

Check out his program and his digital program here.

 

Topics that are covered in this episode:

• Go on Treasury List to see who owns back taxes

• Unsophisticated come into ownership of raw land

• Buy it at 20-30% value, ensure so encumbrances

• The neighbor’s are the first people to buy if not maybe they want to sell theirs and now you have a larger tract

• Use Facebook and craigslist

• Use owner financing

• 3-5% response rate of offers

• All counties are different on how you get land listings

• Use gegolook.com or use craigslist or what three words app

• Facebook buy and sell groups

• Use special warranty deed and full warranty deed

• Blinkist

• Stop being an optimizer once you have your simple passive cashflow number

Thank you Mark Podolsky for joining us on Simple Passive Cash flow!

 

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Podcast#080 – Moving from Single Family to Multifamily Investing

Hey guys I’m about to get naked here… I am personally making a shift in my portfolio to MFH Investing and wanted to see if you could help me find a buyer for my stabilized 10 property 1.2M portfolio.. 10 B Class properties in Birmingham/Atlanta/Indy (rents $900+/month)

I have selected a few potential turnkey rental sellers, however, I wanted to leverage my network and see if we can cut the broker commissions out of it. I’ll give you details on how you can get the P&L for the past few years on every property but first…A few PSAs.

  1. National Save for Retirement Week: October 15 – 21, 2017
  2. Scam emails to get information from more and more wholesalers
  3. Insurance want 5% deductible

My story – bought a couple of rentals in Seattle and 1031 exchange those to 10 SFH essentially turnkey rentals out of state in Atlanta, Birmingham, Indianapolis.

The other day I asked the question on BP… did not get much of a response since BP is a platform for newbies or active investors who flip or wholesale homes. SPC is a platform with secret Facebook groups of profession W2 employees with some cash and little time on their hands.

https://www.biggerpockets.com/forums/223/topics/481347-crossover-point-for-turnkey-rentals-vs-syndication-as-a-passive

As I talked a few podcasts ago of a 10k repair, and multiple other headaches, my attitude for these SFHs are changing. Its kind of funny talking to the many of you that are setting up calls to get on the Hui Deal Pipeline Club to getting sent the deals I come across:

https://simplepassivecashflow.activehosted.com/f/3

Please go through the first 20 podcasts in early 2016 and love the story of this SFH buyer but then they are like WTF you are turning on us like a villain going to MFH.

“Find me an investor who has 50 SFHs and I will show you an investor who was invested under a rock and stoned himself to death with said rock” -Archimedes

After over a few hundred investor consultants over the past couple years here is what I tell W2 employees. For those who are able to save more than $30k a year or have substantial liquidity (over 200k), being a landlord and especially flipping is a lot of work. If you like it cool… but just remember why we got into this… To be free from a JOB. Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications. Whatever you do, try to be as close to the investment as possible. This is the fundamental problem I have with Wall Street who takes too much fees off the hard working efforts of the middle class.

The straw that broke the camels back…

One of my Atlanta properties went over a changeover, tenant went MIA, went through process to evict – always start the time clock. Armed sheriff had to go and remove items on the street, dead cats were found, $5000 just to remove items, concern over the property could have been condemned. I got Proserve out of Atlanta to go in with radiation suits to clean it up, got a bill for $27K, wtf, some of the scope items were a little ridiculous like 500 dollars for gutters, 5000 for paint, and siding etc. I had them re-estimate it to give me the “dude I’m not a rich idiot price and got it lowered to 20K.

There is no such thing as turnkey. Check out these disaster photos… https://photos.app.goo.gl/R4PZLuOLGHONO5Rl2

Tony Robbins says “Things don’t happen to you but for you.”

This was a sign from above which many of you guys hear from me that I sort of believe in. I was already mentally making the shift to making the move. Going down the quote from the repair company it was clear that a lot of the scope items were a bit excessive and the pricing was inflated. This was to be expected, for example paint on rooms that did not really need painting for $5000 or new gutters cleaning for $500.

If you want to see this document. Please leave me an iTunes review or send me an email referral to a friend and i’ll send it over. Lane@SimplePassiveCashflow.com

Stages of trauma… denial, anger, sadness, motivation.

What I know now I am able to now only make a high yield but a fraction of the effort. None of this screwing around sending docs to my lender in the evenings for a couple months to get one dinky SFH to cash flow a couple hundred dollars a month then do it all over again 20-50 times… then to have it all taken away with a large capex or turnover repair.

Tony Robbins says “You destiny is shaped in your decisions.”

We waste so much time making decisions. A lot of people myself included get shiny object syndrome when really its an excuse.

This was my hero moment or burning of the boats moment to leave the security of a few thousand of passive cashflow a month to go liquid for a while. Hopefully Amazon will announce that Atlanta will be the new second HQ on their quest for world domination.

One drawback about selling is about repaying a lot of depreciation recapture and capital gains going back all the way from 2009. As you remember I traded my two Seattle properties for the majority of these rentals via a 1031 exchange. This is why I am not a fan of a 1031 exchange no matter what you hear on a surface level on other podcasts. Another reason to keep listening and please do me a favor and share it with friends because we go deep on this stuff because I’m learning everyday. I’ll repeat I don’t like 1031 exchanges because many of us are going to graduate in large syndications and that is not a like kind exchange. Executing a 1031 most likely means you are going into a lukewarm deal and lose all your negotiation power as a buyer. But i’ll expand on this at a later date.

Picture of my back of envelope tax hit

I want to be very clear… If you are not an accredited investor, sophisticated, or have a large sum of liquify… single family homes is the starting point for you. Too many call me with lofty goals and have list of pro’s/con’s of MFH vs SFH, but you need to know the basics before you screw up the big stuff. You have to pay your dues. Set that barrier to entry lower because most people won’t do anything.

That said for a limited time I invite you listeners to make offers on my portfolio of SFHs “Lane’s Pac-10”. List price is 1.2M right about 1% Rent-to-Value Ratio (More info –http://simplepassivecashflow.com/podcast-3-rent-to-value-ratio/)

I figure it was only fair if I showed you my naked photos… I mean P&Ls that you take a few minutes to complete a form with your investor profile on.

And if you are listening to this after 2017 and would like to see how frequency of rental checks, vacancy, late payments, repairs, cap ex across all my properties please leave me an iTunes review or send me an email referral to a friend and i’ll send it over.Lane@SimplePassiveCashflow.com

Mastermind Club: If you or someone you refer invests at least $50K into one of my future deals you will be invited to my exclusive Ali’i Mastermind with other 12-20 other serious investors to discuss deals and our own portfolios. SimplePassiveCashflow.com/mastermind