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****UPDATED 8/2017 w/ BEST OF SECTION!!!****

Welcome if you are new! And welcome back… here is what I have been working on…

1 ) Simple Passive Cashflow Fund 506C syndication documents are currently in the works!

2) Working with my coaching clients 

3) Waiting for the right deal to come along in this sellers’ market and ponder life

4) Analyzing 20 MFH deals a month for my own deals

Goal: Turn “C” and “B” class properties, 60-300 units (stabilized with value add opportunity) with at least 75% LTV/25 year amortization. We plan to hold 3-5 years and sell when we have doubled our investors’ money.
Buying Criteria:
Seeking MFH at least 60 – 100 units.
1. Value-add component: typically 70-85% occupancy / discount based on condition or motivated seller.
2. Price: $1,500,000 – $9,000,000, per unit cost under $55K.
3. Location: secondary and tertiary markets across
4. Class: D/C/B Property in a B/A neighborhood

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Podcast #079 – #LaneHack – The Mindset to Overcome Starting Something

Christian Knight gives us his 4 techniques on how to control fear:

1) Embrace the fear – removes complacency

2) Manage your fear – Visualize

3) Practice it and get experience

4) Eyes on the prize

Don’t just die like a salmon. Do something meaningful. Take action and step out!

– Jason Statham

Remember why we are doing it. The “new rat race” is what the entrepreneur often finds themselves in where they have escaped the W2 job but have created an active business for themselves.

– Jason Statham

Podcast #078 – Interview with Sarah May, Aerospace Engineer transitioning out of her Day Job in Denver

Former aerospace engineer who became passionate about real estate investing, built up a rental portfolio, and has now moved into syndicating larger multifamily deals. She works with a great group of investors helping people move their money out of the stock market and into physical assets – real estate.

She lives in Colorado with her husband Alex, their 2-year old son Landon and enjoy the outdoors and activities like skiing, tennis, and biking.

Some dialogue from the show:

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

My husband and I are making about $6-7k/month in passive cash flow from our 10 properties (22 units).

2) What is your Han Solo moment? Describe the resistance that was the catalyst for change:

For me, the main factor was knowing I didn’t want to stay in my then-current career path for the rest of my life. I had already been a student of real estate for several years, but finally I knew that if I didn’t want to be tied to an unfulfilling job for the rest of my life. I had to take action and starting building passive cash flow to support my lifestyle. For me the combination of desire + education = action.

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

One thing that I’m incredibly grateful for is having a like-minded husband who I can brainstorm with. We both knew we wanted to build income from real estate, but we weren’t sure how we wanted to do it at first. Things happened fairly naturally, but it was a bit of a journey getting to where we are now. Our first “investment” as a married couple was a house we decided to fix up and sell. That was a major learning experience, and the biggest thing we learned was that we didn’t want to be house flippers!

After putting tons of sweat equity in the deal (even though we had a general contractor), we made less than $10k of profit on the deal. If we had kept it as a rental for just an extra year, we would have made $40k more from appreciation. Today, 5 years later, that house is worth nearly double what we sold if for after fixing it up. After that experience, we saw buy and hold real estate as the tried and true method of building wealth relatively passively, so we set the goal to buy 2 properties (2-4 units) per year and for the most part have stuck to that plan, and it’s worked out well.

4) Worst life/business moment what did you do after? Lesson learned?:

I’ll have to go back my previous example with the house flip. The main lessons I learned were not to use the same contractor as your house-flipping realtor since it creates a major conflict of interest, and also that you can make more income in a less stressful way by owning cash-flowing rental properties. I also learned that strong contracts can make all the difference in a sticky situation.

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 current 2-week experiment is to get my son to eat his vegetables! Just kidding, in reality my next big 2 week goal is closing on our 100 unit apartment syndication. My 6-month project is get the repositioning of the apartment community well under way and get into a good business rhythm.

We’re going to do a major remodelling project on the unit interiors and improve the property overall by adding covered parking, backyards, and a spruced-up office. Maybe in 6 months we’ll even have another property under contract by then!

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:

My current simple passive cashflow number is $6-7k/month. My goal is $12k/month. Twice that amount would open up new opportunities. My ideal day would involve some sort of time outside, exercise, a good cup of coffee, involvement with friends and community, self-development like reading books, and plenty of time with my husband and son. We’d go on quarterly vacations and also monthly mini-vacations hiking and camping near our home. I also would probably keep working on real estate!

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

Right now I’ve been focused on using my cash to buy great real estate investments. If I had to splurge on something, it probably would be a new car. My 2004 Saturn is starting to show age! Typically though, I’ve mostly spent my extra cash on things like vacations where the memories will last far longer than some new gadget.

8) Something that you changed your mind on?

Our ego often gets in the way of greatness. One lesson I’ve learned over the years is that sometimes, it’s okay not to have the nicest property on the block. Especially when it comes to rental property. There are plenty of people out there who need a safe, clean, functional place to live. We also have Section 8 tenants at some of our properties, and while I was very apprehensive about it at first, there are definite advantages. Also, these types of properties typically provide much better cash flow than the newer “Class A” buildings out there.

9) 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? Morning or Nighttime ritual?:

I think the “Science of Achievement” for me can be summed up in one word – Perseverance. For me, I think I’ve been successful because I refuse to give up. Whether it was a tough homework assignment, a seemingly impossible-to-meet deadline, or navigating my first real estate deal, I found that if I kept at it long enough, the impossible became possible.

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

For me, the most fulfilling parts of the day is the time I spend with my husband and our 2-year-old son. I’m fulfilled by having a multi-dimensional life where I love working on my business and real estate, I love exploring the Colorado outdoors, and I love spending lots of time with my family.

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

You can reach me at www.regencyinvestmentgroup.com through the Contact form, or just email me at sarah@regencyinvestmentgroup.com.

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Podcast #076 – Interview with MC Laubscher, The Cashflow Ninja

In this episode MC Laubscher from South Africa explains how his foundation is centred around the infinite banking concept. He tells us where his passive income is coming from, and talks about some investments he is trying to turn into passive income. Laubscher will walk you through his journey of how he purchased his first single family property out of university in South Africa, and how he got to where he is now.

Topics that are covered in this episode:

  • Uses infinite banking to create cashflow and make investments
  • Purchased first property in South Africa in 2001
  • USA leads in creative deals
  • Started with an informal mentorship for them
  • Infinite banking is what wealth Family Offices use
  • Sick, alone, broke in 2011 – the person that is responsible is you
  • Get up in the morning and start moving
  • What you value is not what someone else values
  • Abundance/Scarcity Mindset
  • Is this your highest and best value… if not table it or have someone else do it
  • Document the processes to outcource things
  • A home gym would cut down on time traveling
  • I am not entitled to anything
  • Figure out what takes your time and write down a process to outsource
  • Email Lane if you have questions about infinite banking
  • Self reflect and fIgure out what you are good at

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Podcast #075 – Interview with Chris Rush, Navy Pilot gone MFH Lead, sharing his mindset and productivity tips

Chris Rush shares his success story of how he went on to becoming a Navy Pilot, and a multi-family home investor. Chris talks about how the analogy “burn the boats” relates to his real estate philosophy and he shares his struggles, his experience and his successes. Here are some of the topics we discuss in this episode:

Topics that are covered in this episode:

  • Chris Rush is a seasoned real estate investor, serial entrepreneur and founder of Sidereal Management, Inc.
  • Chris started his real estate career in the family business as a teenager in the 1980’s. He has extensive experience in property valuation and acquisition; multiple, simultaneous capital expenditure real estate rehab projects; property leasing and management; financing and refinancing; syndication, fundraising and financial selling; and marketing and property sales.
  • Over the past decade through syndication, partnership and individual investments, Chris has acquired, repositioned and deposed of for profit over 1000 units in the Texas, Georgia, New Mexico, Arkansas and Washington markets.
  • As a syndicator with Fannie Mae loan experience, Chris has an top-notch reputation among the multi-family investment community. He provides exceptional value to investors and the community.
  • Chris is a 1995 graduate of the U.S. Naval Academy, Computer Science, B.S. He served 10 years on active duty excelling as a Navy pilot flying missions worldwide.
  • Started as a passive investor
  • Do a friend-ventory
  • Ask what is your hourly rate to outsource
  • Be content while you are doing what you’re doing
  • Eat the frog to get the important things

Thank you Chris Rush for joining us on Simple Passive Cash flow!

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Podcast #074 – My Journey Back Home to Hawaii

This is my Journey back home:

Up to this point, my life has followed a steady, linear trajectory. But today… I took my own advise that time is your most important asset and I am happy to announce that I am speaking to you from Honolulu, Hawaii the new home base of Simple Passive Cashflow!

As a teenager growing up on a small island in the middle of the Pacific, I was programmed to go to college on the mainland because the cost of living in Hawaii was too high and jobs compensation was pretty poor. With the cost of living in Hawaii being 10% more than Seattle or San Francisco and 20% less pay for equivalent jobs, living a comfortable life is no easy feat. I resolved to never return unless I was extremely well off financially – although I am not where I want to be – I have the knowledge and network to get me where I need in the next few years.

Looking back on my path as a wide-eyed college student living away from my family for the first time in Seattle. And then started my Engineering career working for blood money for my first employer. I am a little dumbfounded how all that work through the traditional educational system only prepared me for a life as a worker-bee to save more and hopefully have enough after I gave away all that time during a 40 year career. I do look back with gratitude since it gave me the means to save up for down payments and truly savour freedom when I achieve it.

I wanted to inspire others to “Burn The Boats”… to do what you want, where you want, and with whom you want – whether its buying that first rental, quitting a crappy job, getting away from a bad boss, starting a family, or just telling your mother in law to shut up.

Here are the 10 main reasons for my return to Hawaii and I hope you can find similarities to your journey:

1) It’s a seller’s market.

2) I don’t see many deals out in the market worthy of investing in. In fact, I can’t find many that will make money. I don’t believe in rent trends continuing upward. In my mind, that’s called speculation.

3) Hawaii is a great place to hide out and chill. Knowing when to “hold’em” and when to “fold’em” is half the battle.

4) Environment matters. I used to live in a really affluent area in Kirkland and my Mercedes is seriously the crappiest car on the block. Homes are filled with babysitters watching kids as their parents play Bejewelled on their I-Phones. I just don’t feel like I fit in. Seattle also gets dark at 3:30 PM in the Seattle winter and I dislike being cold all of the time. Talk about Kurt Cobain! Shoot yourself in the head!

5) Embrace minimalism. My homeboy FI Fighter took the path of Extreme Financial Independence to race to a point where his income exceeded his expenses. At that point the plan is to escape the rat race which not only includes your job but the environment that contributes to lifestyle creep. On paper, Hawaii is one of the if not most expensive States to live in as evident with the median home costs of $800,000 and 8 dollar gallon of milk. The truth is in order to survive, Hawaii’s locals have to live frugally, in multiple generational households, and the housing stock/amenities is much lower quality (B tenant lives in a C building by US Mainland standards)… it’s the price of paradise. From time to time we need to get back to basics and keep it simple.

Jon Jandai | TEDxDoiSuthep

6) A unique opportunity. One of my main goals is to create an investor network in Hawaii. People in Hawaii are very fiscally conservative and there is a lot of generational wealth passed on to younger generations. This creates a complex problem for people who have money and “don’t know how to fish.” My hope is to leverage the talents of others to create a non-profit financial education group based on the philanthropy of those who I will liberate from the rat race and will in turn help mentor others in basic personal financial education such as keeping a budget. If you are interested please reach out to me. The best companies are built on the foundations of culture and this is something I know everyone that comes to this website strongly believes in.

7) Technology bridges oceans. Some will say that I need to be close to the action, but I feel technology allows me to be everywhere at once. I travel to Texas and Atlanta a lot and they are major airport hubs which offer direct flights to HNL. I am also a cheap ass (which I am working to change :p), so I take the red-eye to avoid paying for a hotel that day. My situation will actually improve since instead of a 4 hour flight from Seattle to Texas, I now have a full 7 hour shut-eye flight from HNL to DFW.

8) Serve the people of Hawaii. You might be asking why am I still working? Check out this previous talk I gave explaining why you should not quit your job. I’ll be honest although, I work a few hours a day and times on the weekend on building SPC and my multi-family syndications I don’t have enough work to keep my busy all the time. I recently interviewed for a job and I told them that I was looking to work for good people who treated me fairly and with respect. For the past few years I only worked for non-private entities because I thought that they are one of those busy days at work… my efforts benefit at least the people and not a corporate entity. And now it’s great that my work benefits the place I grew up. But don’t get me wrong here… I still don’t really enjoy the work I do and it is not Ikigai or the alignment for four items: 1) What you are good at, 2) What you Love, 3) What the world needs, 4) What you can be paid for.

9) Passion+Lifestyle=Happiness. Tom Corley (from Rich Habits) identifies 2 ways self-made millionaires rose from poverty or the middle-class. Either you live below your means and wisely invest your savings or you pursue something you are passionate about. I am achieving the best of both worlds. Yes, Hawaii is more expensive on paper, but it is easier to live a simple life and not get caught up in the perpetual pissing contest that many working professionals subconsciously partake in.

10) Retirement is a state of being. People wear Hawaiian Shirts on a vacation to feel relaxed. Why not make everyday like that? I am nowhere where I want to be but on my way. With a little Shave Ice too. I want my everyday life to feel like an indefinite vacation. #LuckyYouLiveHawaii

Live in the moment. Life is short… pull your head out off your butt before the years fly by. Don’t you see those Facebook memories posts and think where did the years go? The day is long and the years are short. Get up get out and get some. WUKAR! Lanikai Sunrise 😁 Check out the youTube Channel.

 

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Podcast #073 – Interview with J. Martin, Organizer of SFBay Real Estate Summit

J. Martin shares his story about how he became the founder/host of the SFBay Real Estate Summit and how he funded his world exploration through real estate. Here are some of the topics we discuss in this episode:

  • $85K Passive income with a furnished rental business and other rental investments
  • He started a meet up in San Francisco and Josh Dorkin from BiggerPockets contacted him
  • After the 2012 BiggerPockets summit he copied the speaker list and called everyone
  • Replicate what people want
  • A lot of REI clubs are pitch-fest with profit sharing
  • Contact me with an iTunes review or referral to a new listener and I will let you know who to stay away from
  • Speech or topic meeting appeal to new members
  • Open circle
  • Don’t be an ask-hole, always add with value
  • Think what the potential mentor needs and do it
  • A lot of people what to be active when they really want to be passive
  • In every interaction try and add value
  • Give away info and value to see who are the sharks out there
  • There can be value to talking to people who do completely different type of investing thing using the same tool
  • IP Targeting to target certain people
  • Before an event look people up and see who you want to meet
  • Have a goal of what you are looking for and what you have to give
  • Make the initial contact to follow up later
  • Just realize that everyone else is there looking to people just like you
  • In today’s market J Martin is realizing that he can’t travel and purchase to properties and is traveling
  • He likes to deploy capital when the odds are best in his favor
  • Funding & Deals work in inverse

Thank you J.Martin for joining us on Simple Passive Cash flow!

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Podcast#072 – Interview with Rod Khleif, Multi-Family Home Investor

Rod Khleif shares his story about how he began as a multi-family home investor, beginning his journey in Denver, Colorado. He shares his struggles, his experience and his successes. Here are some of the topics we discuss in this episode:

  • Multi-Family Home investor market was founded in the 2008 crash “Hans Solo Moment”
  • MFH has all the repair crews in house
  • In 2008 rents did not go down but the vacancy did
  • Two months is the typical turnover
  • As a C and D class multi-family home investor, you will need to pay for 2000-3000 per turnoff effectively wiping out your cash flow
  • Failures are just seminars that teach us
  • Don’t flip in the high end (A and B class)
  • Don’t get a MFH 5 year balloon, instead get a 7-10 year term
  • VAs is calling Apartment Owners – Use county assessors office then Secretary of State to get mailing address, lookup phone numbers
  • For discount Tony Robbins tickets to “UPW” four day event email Lane@SimplePassiveCashflow.com

Thank you Rod Khleif for joining us on Simple Passive Cash flow!

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Podcast #071 – Fundamentals – Recent Setbacks in my Rentals

Setbacks in a rental investment merely teach you about yourself or the systems you use.

Wait, catch yourself if you are feeling sorry for me… Setbacks in a rental investment merely teach you about yourself or the systems you use. It is an opportunity for growth! And in real estate is a capital improvement that is bolstered in the future.

Rental Investment Costs incurred to date are as follows:

Attorney’s Fees                                $268.30

Eviction Services                              $1,310.00

Total                                                  $1,578.30

Haul, Disinfect & Clean                   $4,800.00

Total                                                   $6,378.30

(Less) Security Deposit                     $1,295.00

Total Out-of-Pocket Exp                   $5,083.30

Always underwrite and double check you have the buffer!


Check out my Free Resources Below:

1) Simple Passive Cashflow Hedge Fund:

If you are an accredited investor and afraid of the impending market correction? Get out the stock market and into the Simple Passive Cashflow Hedge Fund!

More info: www.SimplePassiveCashflow.com/fund

2) Join a Social Club:

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3) Subscribe to Simple Passive Cashflow Podcast!

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4) Once you have gone through the majority of podcasts feel free to reach out: Chat with Lane

5) Make sure you sign up for my Hui Deal Pipeline Club to get sent the deals I come across.

6) I am partnered with a start-up Virtual Assistant firm out in the Philippines. Shoot me an email Lane@simplepassivecashflow.com if you want to try them out.

More info: https://drive.google.com/open?id=0B4gFjCt6Knc1U3YwYjdZRnYzN1k

7) Please leave a review for the podcast HERE.

8) Coaching Program to get you to your first rental in 90 days!

9) And finally… if you are just getting started Sign-up for Free Access to the 10 Module Course.

Summary of every Simple Passive Cashflow Podcast.

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!