Bad Data: Class C/B vs Class A

Being an Industrial Engineer by education it drives me crazy how “Bad Data” is prevalent everywhere… much like how English majors get headaches over my writings.

“Lifestyle Asset Class” is the Class A inventory. The place rich people live in (or people who think they are) and what institutional and unsophisticated investors invest in.

“Renter-by-Necessity” is the Class B/C inventory. This is where blue collar hard working Americans live and where sophisticated investors are able to carve out double digit gains with stabilized properties that still produce cashflow in case of a market correction.

Take a look at the data below for All-Classes and compare it with “Lifestyle” and “Renter By-Necessity” tables and take note how you can’t take data you read in the Wall Street Journal at face value. We invest in “Renter-by-Necessity” properties and we need not let the “Lifestyle” data skew our analysis.

All Classes Data

 

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Get out, Get up, and Get Some!

WIth over 200 calls over the past 18 months with investors like yourself, I am amazed how many people get excited about real estate investing and financial freedom but don’t follow through with the action of dipping their toes into Private Money Lending or a Turnkey Rental. Sign up for a call… all I ask is to listen to the first foundation podcasts and please leave a review: itunes.apple.com/us/podcast/simplepassivecashflow.com/id111879534

Everything that you need is here on this website and online (But take it with a grain of salt). You can join my private HUI group for the peer investor group. Heck, I can even hold your hand to drive you toward success in six months or less.

What I have noticed is that when people have good lives and good income at their W2 job… Good is the Enemy of Great!

The second question I ask in every podcast Interview is the Han Solo question. That set of circumstances where life took a pivot and that was the trigger for change. That pressure or conflict builds up either inside them or inspired by an external event.

Unhappiness spurs individuals to improve the condition of their circumstance to find happiness. Unhappiness drives us to make necessary changes in our lives. Are you content or truly happy?

I have done an exercise to write down… “I would be happy when I have…” every six months and my conclusion is that “it” always changes – therefore it is the journey and the constant driving toward something bigger that is what truly makes us happy. Chris Rush’s podcast in September 2017 mentions this concept of always having that next goal.

As a species, we are naturally built to evolve (Darwinism). This prevents humans from becoming too complacent with their happy lives so that they will continue to do things to improve their lives in an effort to chase happiness. No matter what awesome things happen in our lives that make us happy, we always revert back to our happiness baseline. Just reflect back on the last time you had a mini windfall or lucked out? How quickly did it fade?

If we were not programmed like this how else would the world economy work?

If you’re unhappy with your life, get out your notepad or your favorite electronic device and start identifying what goals! Be attuned to your signals and don’t call it greed. Try to align it to a higher calling to benefit others.

And for those who are always making small strides to find that next deal with no success… just remember and think how you are just three feet from gold!

Please share with your friends via email!

Using Life Insurance to be your own bank

Video: Using Life Insurance to be your own bank

Find more videos in the video section. And please share the podcast by emailing it (I know you guys don’t want to share on social media because you are scared of others knowing that you are going to quit your job. I just want to get the word out that there is something other than the stock market!

The inspiration behind this:

I got really upset the other day. A friend of mine was talking to a so called financial planner and was getting sold Whole Life Insurance. To set the stage, the subject client did not have investments or much cashflow. Why the heck was Whole Life Insurance was being prescribed?!? Oh because Whole Life has some fat commissions and the ding-dong financial planner does not know enough to get themself out the rat-race.

I have been doing a lot of thinking lately… about what I really want to do with myself. One realization I have discovered is when something gets you so upset or passionate (like a financial planner screwing regular people… people who don’t have the cashflow or liquidity and being sold on the BS line of “conservative investing”) you have found a higher calling.

My rant is now over… As we covered very briefly on this past podcast. We are not talking about buying these types of policies for “insurance” or death payout, we are doing it for liquidity (to invest) and shield assets from creditors or lawsuits. I spoke to a couple other life insurance guys (smart guys) but they don’t get this either. They just tried to sell EIULs which do have higher yields but don’t have the liquidity component we are looking for so we can take out a loan from ourselves to invest and make a spread on the difference.

 

Are we in a Recession?

Many of you have been hearing me show my frustrations over the lack of deals since we are in a seller’s market. I don’t have the answers but I do ask the right questions… and that question is are we ‘already in a recession’?

Recessions are loosely defined as two-quarters of stagnant GDP growth. I don’t really know what goes into those numbers but I can tell you that the explosive rent growth in markets like Dallas are starting to stagnant (still increasing though).

Take a look at these articles and email me your feedback (Lane@simplepassivecashflow.com) also, check out simplepassivecashflow.com/fund for the soon to be opening hedge fund of direct investments in stabilized and value-add SFH and MFH… invest in everyday housing with the increasing American population.

http://www.zerohedge.com/news/2017-06-11/restaurant-sales-traffic-tumble-industry-hasnt-reported-positive-month-february-2016

[Americans are minimizing discretionary spending on Main Street]

http://www.zerohedge.com/news/2017-06-10/us-weeks-away-recession-according-latest-loan-data
[The real Americans are decreasing their home purchasing]

Everyone talks about every 8-12 years we are due for another correction. There is some validity to it, however, the past does not predict the future.

Today is a different day with the internet product cycles are compressed and this helps smooth out market fragmentation. Unfortunately fear and greed make up a large portion of stock evaluations which is extremely difficult to model or predict.

Source: http://www.moneyballeconomics.com/how-far-along-we-are-in-the-current-business-cycle/

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American Home Preservation (AHP) looking to close on their biggest pool of 799 homes

American Home Preservation (AHP) is a sponsor of the Simple Passive Cashflow Podcast. But more importantly, I personally invest money in the fund. It literally pays my car lease!

Watch 40-minute webinar here:

https://youtu.be/ZvKue-rq4y8

Highlights of the investment

 

  • You are helping people stay in their homes as AHP buys the loans from the banks and attempts to structure a more manageable payment schedule for the existing homeowner
  • AHP pays 12% a year. You get 1% every month like clockwork
  • I use it as an “Opportunity Fund” holding tank because of the liquidity

 

You can start with $100 bucks and then you can incrementally increase your investment however you want.

 

InvestinAHP.com

 

Join us for 10 FREE “Think Outside the Cubicle” Modules – Access to spreadsheets, mindset tips, networking offers, and deal-flow access! Value-add for even the experienced investor!

https://simplepassivecashflow.activehosted.com/f/1

 

Make sure you sign up for my Hui Deal Pipeline Club for more deals:

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

 

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Announcing Partnership with Orange Virtual Assistants!!!

 For a Free 10-hour trial, please email Lane@SimplePassiveCashflow.com

What is Orangehub.ph?

OrangeHub.ph is an outsourcing company and social enterprise that provides quality outsourcing services to our existing clients in USA, UK, Australia, and Canada. Based in the Philippines, OrangeHub advances your business further with our wide range of services and workforce.

Most of our Virtual Assistants are work at home since this is our business model, helping Filipinos in the countryside get sustainable online jobs. Incase our clients demand an office based VAs, we have partnered with many homegrown BPOs all over the country to cater their needs. For office based employees, additional charges may apply because of the overhead cost in business operations.

  • Website development – Make sure that you are always ahead with Orangehub’s premium and cost-effective Web Development.
  • Graphic designs – Stand out and let our graphic designers bring the spice and solution that your business needs!
  • CAD – Experienced computer aided designers are available to work with you and deliver the project on time.
  • Project managements – We provide skilled virtual assistants to manage your projects both for technical and non-technical.
  • Payroll – Our wide network of Certified Public Accountants (CPA) and bookkeepers are ready to help you tracked financial transactions of your organization.
  • Virtual Assistants – We offer services for data entry, transcriptions, PA works, social media management etc. Available VAs is located almost everywhere in the Philippines’ major cities.
  • Search Engine Optimization – We just don’t rank your business on top, we help build your business and get more customers.
  • Content writings – Professional writers are available to put those words all together to increase your revenues, attract potential customers and get more leads.
  • Home based call center agents – Build your business with our available 24/7 inbound customer service, outbound agents, and lead generation and market researchers.
  • Data entry – Experts in data mining and lead generation for real estate, food, technology and different industries.

Mission

OrangeHub works with passion in building lives by providing decent and sustainable home based jobs to Filipinos in the countryside.

Vision

OrangeHub is building its name to be a trusted brand for home based outsourcing services in the Philippines with social impact.

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Birmingham Troubles – $2500 for Repair of Clay Pipes

I was having a lot of trouble with the plumbing getting clogged up in this particular property. Especially when it rained.

Come to find out the roots outside the home were growing in the pipes. These pipes were made out of clay and the roots like to find the water source and break the pipes. The solution is to get a Backhoe and operator for half the day to dig up the old pipes and replace with PVC. Where did I get this info??? My day job as an engineer 😛