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“My wife is officially is quitting her job at the end of this year. Thanks for helping us be able to do that. One of her friends had to go back to work 10-weeks after having their second kid because they need her income to pay the mortgage. It makes me cringe just thinking about that.”  –Hui Deal Pipeline Club Member

 

****UPDATED 2/2018 w/ Quick Start List!!!****

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

1 ) Just closed my second syndication in my own name. If you want access to these opportunities they are only available to folks with a pre-existing relationship. So sign up for my Hui Deal Pipeline Club and setup a time to chat.

Hui Deal Pipe Club acquisition stats (Estate-2016)- Acquired over $55M dollars of total real estate and $5 million dollars of funds raised.

2) Working with my coaching clients and Starting group coaching. Honored to be part of this paid Mastermind. Email if interested.

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

4) Analyzing just 5 MFH deals a month for my own deals (quality over quality). Finding another deal I can partner with.

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 3-6 years and sell when we have doubled our investors’ money. Utilize Non-Recourse debt for extra security.

Buying Criteria:
Seeking MFH at least 60 – 250 units.
1. Value-add component: typically 85-90% occupancy for non-recourse loan & 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

Checking out properties with Patrick Herbig

Current holdings as of co-owner of MFPE Investments LLC (1200+ units in OK, LA, IA, TX, and WA).

 

I read a book called, “The Millionaire Next Door” and it explained why my pain points were motivating for me, and how I channeled that  frustration into something productive…the desire to make my family proud and ‘come up’ in life and pull my family into a better socioeconomic situation, and to ‘have what others have but i never could’ but somewhere along the way, I learned quickly that the ‘having of stuff’ is not what brings happiness so I dont pursue the shiniest of immaterial things… just the MED…. minimum effective dose of what I truly want which is surround myself with a few quality people and necessary things to subsist on than a bunch of trendy new things and fads that will fall off eventually” .  –Hui Deal Pipeline Club Member

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. Similar to Seattle Seahawk, Marshawn Lynch’s “Beast-Mode”, I have tried to live my life in “Legacy-Mode”. And I really want to have a real book!

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.

When you ask a kindergartner how do you make money? Why don’t they say “invest in cashflowing real estate?” Because their parents don’t have a clue!

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.

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.

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. And we are being misled by the Wall Street institutions and prevailing dogma. Don’t listen to your financial advisor who gets paid based on commissions.

As 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.

Why this podcast/website/syndicating deals is the perfect storm:

Self-awareness is truly the most important aspect of being an investor/entrepreneur. My job being a syndicator is to find opportunities and lead other investors like you to them and using my podcast and experience makes this a logical step for me. I always encourage folks to find out what their competitive advantages and disadvantages are. I can usually help point people in the right direction in a 15-minute free chat – Click here to schedule.
By doing the podcast I found that there was a lot of things and people that I did not know. As Robert Half says, “When one teaches, two learn.”
What are my downfalls?
Being an engineer and introvert communicating was something I was never good at. However, I think I get it after hearing these “straight from the 1990’s salesmen.” I don’t like to waste people’s time, no tricks, no games, the deals should sell themselves.
What is my competitive advantage?

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. And it would be awesome to help out people in Hawaii where I now live where so many struggles with finances. I’m not looking to change the world just a portion of it.

3) I do recognize that there are seasons in life and right now I am accelerating my syndication business along with my own investments via my Hui Deal Pipeline Club. Sign up here.

Right now my goal is to get to $10-15k per month of passive cashflow as fast as I can. Once I get there, I plan to put things into cruise control. Sophisticated investors call this going from the “growth stage” to hitting “critical mass”. At that point, I will continue to help others get where they want to be via my syndication business which creates good options for passive investors with so little time on their hands. I trust that at this point deals and opportunities will fall into my lap and the Hui.
4) Some people say they work smart. Bust guess what? I work smart and work hard (2-4 hours every day after I get home from the day job). Right now I am working at a pretty unsustainable pace but I am motivated by being so close to activating cruise control.
5) I don’t think binary. I see the world as shades of grey and zero-sum trade-offs when win-win deals can’t be made. I am able to evaluate deals analytically and make holistic decisions. I seem like a machine sometimes but don’t act like one 😉 Robert Kiyosaki says “there are always three sides to a coin.”
6) Integrity – Through these podcast interviews, I had the idea beat into my head not to chase money. I did it in my W2 career in construction management trading money for a poor quality of life working in something I did not like with people who were jerks. Being a younger investor, I realized that was going to hit “zero-gravity” or financial freedom well before my 40s. And then what the heck would I do??? I plan on doing this for a while… at least a few market cycles. I always wanted to act with my investors best interests in mind. The last thing I want to do is not act ethically and have someone put a hit on me as I check my mail at my PO Box.

“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.”
If you are new to the site here are the recommended posts to read if you had a couple hours:

 

 

 

“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.

 

SimplePassiveCashflow.com is for working professionals who are looking for diversification and better returns outside of traditional investments such as mutual funds and stocks. The Hui Deal Pipeline Club is a free investor club where I filter investments and underwrite the numbers and partners myself. Unlike other investor lists and groups, my investors have personal access to me and know that I personally have skin in the game investing alongside with my investors.

 

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.”

“Start Here”Continue reading

Podcast #111 – Interview – Brent Kawakami – Saying NO to a measly $300 a month & Networking on Facebook

YouTube Link: https://youtu.be/dgdMLNq73TM

Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer

For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.

Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347

Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club

Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!

________Here are the Show Notes________

1) How much CF are you making today and how are you doing it?
Generally I’ve fluctuate based on buying/selling of real estate. Right now it’s all from passive investments in apartments. My peak was couple thousand a month.
So as I started investigating other investment activities I dabbled in:
P2P investing – Returns were decent (I think I made like 18%), extremely passive once you funded loans. I was fortunate that none of the ones i lended on defaulted so that’s real risk. While you are earning interest payments, it goes back to account so extremely illiquid. You wait out the loan term which can be long. No control. I’d rather do private lending that’s backed by a physical asset.
Dividend stocks – Lot of research, reading investment newsletters, etc. You’re still at the whimsy of the stock market. I could see doing this in future maybe if there’s a crash and you can pick up trophy companies cheap. Again no control.
Gold/silver – I got caught up by the Gold bug rhetoric of “the dollar not backed by anything” “ the crash is coming” “ look how much debt we have” blah blah . A lot of similar stuff you see some Cryptocurrencies saying now. To me you need treat as a store of value and something you don’t care about price. And you need to hold physically. It’s a chaos hedge. But it doesn’t cash flow. And if shit really did hit the fan, you’re not going to need gold, you’re going to need guns, lol.
Internet business (I did sell it later for a small gain). A lot of work…it’s a business. You can get caught up in the 4-hour work week thing, sell your ebook, etc but this takes consistent cultivating like any other business. I had an instance where a change in Google algorithm killed my profit.
Infinite banking (which i’m all in on still) – You’ve had podcasts before on this topic about all the benefits but it’s an amazing vehicle that complements real estate. Personally I don’t think of this as a true investment, it is a savings vehicle. I treat it as my cash war chest and foundation. Downsides to me are that you have to understand and treat as a system otherwise you’ll fail miserably. It’s also literally a lifetime commitment.
Ultimately I settled on real estate starting the single family route in Dallas area (buy, rehab, rent, self manage, etc). I eventually saw the light (What was the light) of multifamily and started investing passively, sold off my single family houses and now a new aspiring sponsor/operator. There’s all the typical things people say (econmies of scale, non-recourse, etc) but my a-ha moment (my 2nd Han Solo moment I guess you could say) was when I started looking for another rental house. I realized adding another $300/mo cashflow wasn’t going to drastically change my life. If I wanted to level up faster, I needed scale faster. Multifamily can do that. When you get a large check for hundreds of thousands from a disposition event on an apartment complex, that’s life changing and can get you places.

(So now you are in the stage where you are doing all the hard work before the success… lets go through this list of things that you are doing… this add value to the listener and maybe we can have a discussion about best practices – Just think in the future when a future investor listens to all the shit you did to get into this)

1) Joined mentorship program (I would rather not say who they were) No problem. Main best practice to me is it’s almost a requirement for MFH. This is a must in addition to all the other education (reading, podcasts, etc)
2) Regularly Contacting brokers/Signing up for lists
3) Evaluating deals
4) Scheduling in-person meetings with with brokers to connect (what did you do). My partner and I specifically reach out to have a meetings at a broker’s office. We’d talk about what we’re doing, looking for, etc and it gave us an opportunity to meet other associates. I’ve tried to do in-person at their office or if I can take them to coffee. For out of town brokers we’d do over phone or if we travel to see a deal (leveraging a current listing of theirs as a talking point to get convo started).
5) Making regular LoopNet rounds
6) Going on property tours
7) Networking on BiggerPockets/LinkedIn/Facebook, etc
8) Going to Meetups, events, and conferences
9) Partnered up with another new sponsor/operator to duplicate efforts, fill gaps, etc (What do you do well and what does he compliment).
My partner is better at making connections and relationships than I am. I’m more analytical and investigative. He’s an eternal optimist, while i’m Mr. Engineer worst case scenario. He can get shiny object syndrome whereas I’m much better at keepings things on task. We’re both at the same level/point in our investing so we have a good synergy with the perspective we’re coming from. One of the things we like is if it takes looking at 100 deals to get 1, maybe us both looking cuts that in half lol.

2) What is your Han Solo moment…

I had two.

1- One was a couple years into my career and i started think there was more than this for 30-40 yrs and began exploring other stuff (as mentioned before)

2- Shift from single family to multifamily. My a-ha moment mentioned before.

3) Worst life/business moment what did you do a er? Lesson learned?

I’ve had those crappy issues that come up with rentals, like plumbing issues, tenant issues, foundation issues, etc which sucked. Although one big one was not listening to my wife about a single family house. I had a tenant turnover in one of my rentals and I had been mulling about selling and focusing on multifamily. Instead of listening to my wife who encouraged that, I did the easy thing which was find a new tenant. I had gotten so in the routine and it was the easy option even though I knew I was ready to step into next thing. It ended up being my worst tenant ever (she paid but was really needy) and a headache. I ultimately sold it a few months later.

Lesson learned: Listen to your wife more. While she isn’t involved directly in the nuts and bolts, she is a better judge of character and intangibles in both myself and others.

4) 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.

2-week: Let’s see when we get there. Lot of personal type things likely going on (not sure if that’s valuable for your audience?)

6-month: Sponsor a 75+ unit, class b/c apartment. That’s my one thing.

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

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

Meal service, not the recipe in the box but the fully prepared, proportioned individual meals. I enjoy cooking but not thinking about what I have to eat is something that I find makes my day easier, especially now that I have a baby. It’s just fuel, i can eat the same thing everyday and be fine. Plus it helps me stay on the straight line nutrition wise.

There’s a good book on this topic called Happy Money I recommend.

7) Something that you changed your mind on? Our ego o en gets in the way of greatness.

2 Things:

1. I used to think of insurance for the financial aspects only but now I think about the riders, disability kickers, etc. Having a kid changes your thought process so now i’m more thoughtful about things like insurance, estate planning, etc. I’m still behind on that stuff, but now these long term planning things are in my thoughts.

2) Owning a house isn’t a big deal. We recently sold our house and moved to an apartment for a number of reasons…yada yada yada. I’m not full Grant Cardone though.

8) In this sellers market… what are you inves ng in? What should a someone who does not have a substan al level of cashflow yet be inves ng in?

My cash value life insurance/infinite banking strategy is my core foundation. I see that as the warchest and can let me sit on “cash” without losing too much. I’m obviously still actively pursuing multifamily, it’s harder of course with the current market, but deals can be found in all markets.

Nothing wrong with being patient if you think things are frothy. 100% of nothing is better than any percent of a bad deal. Being patient is the hardest thing.

brent@hellomultifamily.com

SPC110 – My Story – Evictions, Flip Project, Market Updates

YouTube Link: https://youtu.be/BXbgwbCcTnw

Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer

For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.

Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347

Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club

Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!

________Here are the Show Notes________

Dealing with an eviction:

“Hi Lane! I delivered an evection notice to tenants yesterday and had the opportunity to speak with husband at the door. He stated that he and his wife had both started new jobs and would be able to make one full payment in a week (this was the story for seemingly a month or two) and would be able to make a partial payment in 10 days. Before we proceeded forward with an agreement, wanted to see if that works for you. They are currently $3,000 behind before for a total of two months.  

Here is what I did…

I okayed the concession to give more time. I requested some sort of proof of new job status (a hire letter or email). I am more than willing to work with people… These have been long tenants of almost a couple years and B+ /A- home that rents for $1500 a month.

Caveat… I am really near to selling these properties this year and don’t really want to rock the boat in terms of enforcing long-term behavior.

Revamping my turnkey rental content – simplepassivecashflow.com/turnkey

I have currently sold 2 of 10 SFH rentals (P&L offer)

One of them Columbia is had $27K to get back online. Going to pay 37K to sell retail.

Another property Riverwood just went vacant. Going to pay 20-30K to sell retail too.

  • Talked with my team – PM, Contractor, couple other hui members
  • Is it a good area to go retail
  • Will I recoup capital overlay based on comps

Soon I will unrolling my private lending platform. CrowdfundAloha.com! So if you are looking for a 1st lien property with my partners let me know. We are talking about even providing turnkey services.

This is not really a money making things cause the margins are just really tough these days.

After over 1000 strategy calls with investors and coaching clients 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/good for you… but just remember why we got into this… To be free from a JOB. A lot of us (80%) who stumble upon simplepassivecashflow.com and start drinking Kool-Aide will be financially free in 4-7 years pending taking action. So I always urge people to start with the end in mind and take a more passive approach.

Do the math here… you with 300 dollars per property (2 months of work to buy a turnkey rental) you are going to need 20-40 of these to replace your income. I have 10 of these and have systems in place but have 1-2 evictions a year and 3-4 big things that happen. Image if I had 30, just 3 x those numbers.

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.

Looking at some deals. So folks in the Hui Deal Pipeline Club (who have reached out to me and built a relationship) will see those really soon. 😛 I hope I have enough liquidity… I might need to borrow some money 😛

Single Family Homes becoming a legitimate asset class – Spring 2018 Conference

The lending requirements and new loan products is slowly changing. I know a lot of you have heard that Short Term Rentals (Air Bnb) income is starting to become part of the loan calculations.

Something I’m following is lending on large portfolios of single-family homes. Some of the highlights:

1) up to 10-year term with 1.25 DSCR

2) portfolios minimum size of 50 properties

3) assumable

Pilot program details download here – https://drive.google.com/open?id=1aTIbru2HEPbw_KLHTvU5-Iyk0aoQB8Gx

Look even a SFH conference – https://drive.google.com/open?id=1cI15DnBUn8LRA54NTCh667exeR3OtlIu

Other Fannie Changes – https://drive.google.com/open?id=1WumUWsduuLnHqDi6IJXNipX7IsT9AUFa

AirBnb lending requirements loosening

I read this following article that described rent concession in a few major cities that I like as apartment markets.

http://www.nreionline.com/multifamily/more-apartment-landlords-offer-free-rent-lure-tenants

Here is another article citing industrial as the sector to be in:

http://www.nreionline.com/industrial-cre-market-study/exclusive-research-clear-sailing-industrial-sector-through-2018

My takeaway is that this is important to monitor especially if you are developing because this is a leading indicator of softness in the market. It might be economic reasons or just because a bunch of new build inventory is coming online in that area. Either way…

Robert Kiyosaki has a saying, “there are three sides to a coin”.

People argue that its a good time to buy or bad time to buy. For example “mfh” is overheated or commercial is getting killed by Amazon and e-commerce. I think these are mental justifications by tire kickers not to do anything.

Sophisticated investors live on the edge of the “coin”. They buy deals out our reach of amateurs due to the lack for network/knowledge. These opportunities are undervalued, with undermarket rents, with value-add opportunity.

They are patient and don’t stray from standards that make them get crushed in a market correction. (Cashflow from other investments make this possible) They invest following the macro and micro trends and don’t gamble on gimmicks such as guessing where Amazon’s next HQ is going or where the hurricanes just crushed a market.

The trouble is as an outsider is figuring out which of these deals transcends the two side of coin and is on the edge. And starting out its going to be slim pickings due to lack of network but you have to push through this rough part.

I am from the camp that you need to become an expert or get beyond the surface level investor stuff in some freebie pdf guide or video. Or just find the right people to work with. To many people get shinny object syndrome and float from sector to sector, from a money-making activity to another, read book after book and never get anywhere. You see these people at a lot of networking events. There is a lot of movement but no tangible results. This is where coaching comes in but for some people not able to get over having another person call them out on their BS you need to get laser focused and take massive action or quit fooling yourself.

I’ll be at the notebuyerbootcamp on the panel for syndication in Chicago next week. Notebuyerbootcamp.com

Turnkey Wisdom (2012-2018)

Dear prospective turnkey investor,

The following is my constantly updated guide to turnkey. (Updated 4-2018) Email me for any additions or feedback. In the spirit of the Hui Deal Pipeline Club where we crowdsource due dilligence together!

Today I buy apartment buildings like this 193 unit in San Antonio but it took me almost ten years to get there.

As much as I poke fun at the asset class and jokingly call it “turkey” instead of turnkey rentals it all started here and is the foundation of my investing portfolio.

 

I bought my first couple rentals back in 2009-2012 in Seattle (Primary market/no cashflow). As the prices started going up I was forced to go out of my comfort zone and purchase out of state rents because I needed cashflow in order to achieve my goal of replacing my W2 income as an engineer. I bought one I Birmingham, without seeing it and set up a professional property management company to manage the day to day. That was proof of concept for me to sell my two Seattle rentals and buy 9 Properties in 5 Months via 1031 Exchange.

I work with a lot of engineers and a lot of them say they get analysis paralysis because they like data. I call them out of it and tell them they are just scared and losing $500 of opportunity costs and time per month! A real engineer would look at the numbers. IF rent minus expenses (with contingency) minus mortgage is greater than THEN fricken do it!

Example of capital expenses that need to account for in your expenses and contingency.

Let me be clear, I don’t flip or wholesale or do any of that. I have a W2 job and not looking for another job or chore. I am all about leveraging my money and more importantly, time. For people like you and me who live in places (Seattle, West Coast, Hawaii, East Coast, to name a few) where the Rent to Value ratio is 0.5% or less we have no other option.

It drives me crazy when the Real Investor Peanut Gallery (internet forums) say we are overpaying… well if I didn’t have a life then licking stamps and swindling distressed buyers I could buy at a good discount too and probably do it better too;)

My full-time professional job that earns more per hour than most folks even in real estate and more than these Turn Key providers do. So I’m like “Sure… I’ll pay retail and rely on their volume and expertise.” Its all about leveraging your highest and best use, which maybe your day job.  Sorry.

The problem is that you have to find the right property and people to work with. And have a mentor so you are not getting screwed. Investing for cashflow is not a get rich quick schedule but a prudent way to build lasting wealth a few hundred dollars at a time.

When I first started buying the rehabs done by the turnkey guys in the blue collar areas, if you posted “hey I’m looking for turnkey” in the forums you get the usual suspects soliciting you for marked up properties. It’s off market because they rehab it for the investor with more durable and less visually appealing materials than your normal retail product. I’m all for the wholesaler to make money because they do spend a lot of time and money on mailers and advertising but the layers of middlemen who add no value is excessive and is almost as bad as Wall Street.

These days’ people in the Hui Private group are not on internet forums. They say its 95% of active people who are not high paid professionals and marketers. Here is some of the chatter:

 

The most important thing to do is to grow your network.

So you can bounce ideas off other investors and not a salesperson. I still do free calls but please review the free content I have put on this website first. No, I do not just give recommendations to good people to buy from because things change and I am not going to throw my brand around like that. And by the way that’s an “ask-hole.” I know your character and the trajectory of your success but how you add value to others first instead of taking first. Some people are unaware of this which is why I’m saying something so I aplogize. This could be the reason why people are not helping you out and you feel like a lone wolf.

Webinar with 2018 trends is sent out to Hui Deal Pipe Line Club members sign up below:

I don’t really see much difference in the secondary markets with robust economies (Memphis, Kansas City, Birmingham, Atlanta, to name a few). I have tried to set things up so my different markets complement each other. For the most part I buy in the 1.1-1.3% RV range. I take home 70% in 2015 but now in 2017, I buy in the 0.9-1.1% RV range and take home 60% of the rents after all expenses (vacancy and Cap ex).

I made this diagram in 2016 and it illustrates some of the popular “secondary markets with robust economies” that a lot of out of state turnkey buyers like to invest in. Things have changed a little but as you can see you can either have appreciation or cashflow. It’s tough to get the best of both worlds.

I stress NOT to spend too much picking a market. If you sign up for the newsletter as a Hui member you will get more than enough data to create analysis paralysis. The biggest thing you can do is vet the people. As you can see the same principal is what I use in my syndication due dilligence: 50% people & 50% the numbers of the deal.

There are three ways to purchase a turnkey rental:

  • Marketer – I would not recommend going through a marketer, they don’t even invest themselves and they did not add any value. The only one I can recommend is Marco but that is because I know like and trust the guy. By the time I bought my 3rd rental I knew way more than those folks did. Unfortunately I probably overpaid by a few grand on each of those first few properties not knowing what I don’t know, Work with me only if you want to compress time and want me to look over your shoulder to get my unbiased opinions and guidance. Plus you will be setup with a plan and not shoot yourself in the foot like I did by buying a dozen non-scalable investments.
  • Direct from Turnkey Provider – You cut out the middle man and go direct to the source, theoretically getting the best price. Just know that you are not represented by a broker who supposedly has fiduciary responsibility to you. (BTW never trust a broker) The transactions are done with their paperwork and their rules. They are the pros and its dangerous for a newbie to go down this route. There are household Turnkey Providers (TKPs) out there but I call them the “Prada of Providers”. You pay for what you get and often times more than what it’s worth – I’ll just say you are paying over 105% of retail.
  • Hybrid method – When I was going through my buying spree in 2015-2016, I was going (off market) via an agent that had fiduciary responsibility to me to check all the BS that the providers give you – this is what I recommend only after going through the process a few times. Usually the agent helping you is not an investor and does not really know what type of amenities/floor plans and locations are best for rentals. You will need to drive the ship.

You seemed bored reading… There is no such thing as turnkey. Check out these disaster photos from an eviction that ended up being a $37K repair bil… https://photos.app.goo.gl/R4PZLuOLGHONO5Rl2

As I was in the middle of my 1031 buying spree (#6 of 11), a lot of TKPs started to come out of the woodwork and offered their properties to me and gave me the royal treatment (discounted prices from what they normally offer). I got to meet a lot of them via meetups and national conferences because I had this podcast and they were interested in getting at the Hui Deal Pipeline Club ecosystem. Since I was pretty experienced and they liked working with me they offered me referral fees to simply send guys like you over to them with a simple “CC’ed” email. Sort of like a referral source where they would give me $1000 per home sold. I thought it made sense for them because it was a lot cheaper than paying $6000+ to a Marketer (#1 above), but as you know when you go with a marketer or this sort of referral program the buyer (you) don’t really get any value add.

Personally, I’m not really into picking up $1000 referral checks and passing you off to the TKP (never to hear from you again) since I’m more looking to give back to other investors and build my network for my larger syndication deals in the Hui Deal Pipeline Club. I think turnkey rentals are ok for people starting.

After over 1000 strategy calls with investors and coaching clients 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/good for you… but just remember why we got into this… To be free from a JOB. A lot of us (80%) who stumble upon simplepassivecashflow.com and start drinking Kool-Aide will be financially free in 4-7 years pending taking action. So I always urge people to start with the end in mind and take a more passive approach.

“I have B- class rentals and high that rent for at least $900 a month and I am still having a hard time selling dang properties to other cheapo investors”

 

Do the math here… you with 300 dollars per property (2 months of work to buy a turnkey rental) you are going to need 20-40 of these to replace your income. I have 10 of these and have systems in place but have 1-2 evictions a year and 3-4 big things that happen. Image if I had 30, just 3 x those numbers.

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.

I currently work with one business who I can align with because they offer sort of a hybrid between the marketers (I know you know the reasons why to stay away from them) and going straight to the TKPs since you lose a lot of the protections when you do that and it’s sort like signing agreements in the “wild wild west”. The reason I do it this way is that I get a licensed agent that has a fiduciary responsibility to your best interests and guides you along the transaction as you buy through the TKP. Basically it’s like having MLS agent to cover you for the off market deals. All the properties are aggregated from only the good TKPs and the same price that you will find on the weekly digest that is sent out by the local TKP. This is the way I buy my properties and if nothing else it’s good for browsing what’s out there.

Can you please recommend a good turnkey provider? You said you would help…

Short answer is not really. A provider will try to size you up and try to pull a fast one on you when they get the chance. I will not endorse anyone! The only way to protect yourself is to network with other investors by providing value first – if you are a cheapo. If your net worth is over $300K, have at least $50k liquid, and have a time crunch (kids) I think it’s a no brainer get me on your team and stop screwing around.

There is really no reason why you cannot put in an offer on a property and start collecting $300 a month with a $25K down payment in under 90 days. Someone who is still “reading”, “contacting investors”, or “picking a market” frankly lacks focus (finish one course until success) or scared of making a move. Every day you don’t do anything is $500 a month of opportunity costs!

My rentals in Seattle were cash flowing each with $600-800 a month but it was because I bought at the right time and I did not look at the numbers like a sophisticated investor does. Although my cashflow was good (bad in terms of percentages) I realized that my return on deployable equity was very low, in fact it was under 5%. Now each rental I get typical cash flows by $350 but I think of it like $250 to be conservative and more importantly, my money is not being lazy. I think if you’re making less than 8 percent you’re better off in the stock market despite my aversion toward stocks or mutual funds. A sophisticated investor does not say “well… at least I’m able to cover my mortgage”. They are constantly monitoring their return on equity.

I wasted a lot of time in 2012-2013 looking for rentals in King, Snohomish, and Pierce county (Washington state) and nothing cash flowed. I still have the spreadsheets where I underwrote how crappy the Cashflow was. Now prices are even worse.

I helped dozens of people with this out of state investing game and have pretty much figured it out after making a bunch of mistakes that I didn’t realize till later – this is why it makes me laugh with the “do it yourselfers”.

One mistake I see people making is going after these sucker properties that only can be sold to “Californians,” “Hawaiians,” or any rich person not from the area perceived to have trees that money grows on, from a trust fund, and drink seven Mai Tais on the beach everyday. (Personal Note – I have lived in Hawaii for about six months now and I have only been the beach twice).

These types of people (not follows of SimplePassiveCashflow.com) like to pay a plumber for ten hours to fix a small toilet leak.

Sucker properties are in the wrong area that none of the locals would touch with a ten-foot pole. They are C or D class properties that the Broker calls “B-Class or good area” and usually cost sub $60K for $750 rents a month.

“It may look good on paper but stick to rents that are higher than $900 a month”

The second thing I see newbies doing is buying 2-8 unit properties after hearing all the good things about multi-family and scaling. I think most highly paid professionals will graduate to syndications (which is why I structure business and own investing around them) and therefore will need to sell these SFHs to move up. The exit strategy on selling 2-8+ just is not there. They look good on paper but the exit strategy kills you. If you are thinking you are going to hold on to these properties for cashflow for 7+years think again because that is not what sophisticated investors do because they monitor their ROE and they know the cap-ex tidal wave will hit them in year 5-12 taking back all those profits from the earlier years.

How many turnkey homes are people buying. Here is one data set I found from one popular turnkey provider. Takeaway – most (82%) get a few properties and the rest don’t get it or are too lazy.

The main thing is building the relationships and knowing who has the integrity out there. More importantly, you have to buy a few and go through the process of buying/selling and operating a while to learn how this mouse trap works. Tactically, it’s no different than what I have learned in corporate America (although I’m trying to leave the rat race) by setting expectations and keeping people accountable via email remotely. Trust but verify and financial freedom will be yours.

 

Here are more resources:

  1. *The Analyzer Video Walk Through- https://youtu.be/qr8M6NMBhRw
  2. *Download 2018 Buy & Hold Analyzer Spreadsheet – https://drive.google.com/open?id=1kMAn962d52UN-ObKNWmjT11z6gqATR1I
  3. *SPC005 – So you want to buy a Turnkey Rental – http://simplepassivecashflow.com/podcast-5-so-you…a-turnkey-rental/
  4. SPC014 – 22 questions to ask a turnkey provider – http://simplepassivecashflow.com/podcast-14-22-qu…turnkey-provider/
  5. SPC015 – 9 Turnkey listener questions Part 1 – http://simplepassivecashflow.com/podcast-15-9-turnkey-listener-questions-part-1/
  6. All the SFH related material – http://simplepassivecashflow.com/tag/sfh/

Refer me to a friend via email and I will personally send you both my spreadsheets of usual suspects of turnkey providers plus the questions I used to ask them for due diligence. And let me know if you would like a referral to my exclusive partners.

Real Estate books (more in the products tab):
1) Rich Dad Poor Dad
2) Millionaire Real Estate Investor
3) Cashflow Quadrant
4) Equity Happens
Any more is just overkill.

Business Books:
1) 4 hour workweek
2) E Myth
3) Think And Grow Rich (read this again and again, all the Gurus regurgitate this book)

***Put a red circle on your calendar 60 days from now and see where you get… and how much of your family’s time you waste as you consume websites, books, and podcasts.

You know what I mean ‘Jelly Bean’

https://www.youtube.com/watch?v=BOksW_NabEk

“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.”

Loan Consolidation

Do I pay off my student loans or invest?

It depends… What interest rate is your debt and how much is your return rate if you invested.

From the macro sense if your rate of return from investing is higher than the rate of interest you pay to your debt servicer then you should invest. Duh. It’s simple. If you don’t get that then that’s what’s coaching for.

Sophisticated investors are able to make 30%+ annual returns with simple rental property (More info – http://simplepassivecashflow.com/returns/). The right choice there is… Invest! What are you waiting for?

Beware your problem might be lazy equity (SimplePassiveCashflow.com/roe) and the opportunity costs are eating you alive. Oh, the cost of ignorance!

All too often I just see this “student debt” or “debt” as a really lame excuse not to get started.

Below are a few affiliate links to loan consolidation companies that can help simplify your debt payments and get your focused on making more money instead of paying off debt.

I tell people you want to minimize your money paid upfront and put money into investing so you want to structure your payments to be more drawn out. Don’t worry too much about the interest rate. Loan consolidation also makes things a little easier because time should be spent on more meaningful things than sitting in front of a computer getting a handle on this stuff. This concept was discussed on Podcast #60 – #LaneHack – Lease Don’t Buy, Push money into the future and invest – http://simplepassivecashflow.com/podcast60-lanehack-lease-dont-buy-push-money-future-invest

Company Discount
ELFI $100 back to you
SOFI $300 back to you
Common Bond None
Lend Key $250 back to you
Splash Financial $250 back to you
Laurel Road $200 back to you

Feel free to share with that young guy at the office who is buried with student debt and looking down the barrel of a 40-year career.

 

 

LANE KAWAOKA accepted into Forbes Real Estate Council

Lane Kawaoka, Podcaster & Real Estate Investor, Honolulu, Hawaii has been accepted into the Forbes Agency Council, an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies.

Lane Kawaoka joins other Forbes Agency Council members, who are hand-selected, to become part of a curated network of successful peers and get access to a variety of exclusive benefits and resources, including the opportunity to submit thought leadership articles and short tips on industry-related topics for publishing on Forbes.com.

Forbes Councils combines an innovative, high-touch approach to community management perfected by the team behind Young Entrepreneur Council (YEC) with the extensive resources and global reach of Forbes. As a result, Forbes Council members get access to the people, benefits and expertise they need to grow their businesses — and a dedicated member concierge who acts as an extension of their own team, providing personalized one-on-one support.

Lane Kawaoka, says “Excited to share my viewpoint of real estate investing to help the hard-working middle-class emulate what the wealthy do and interacting with this exclusive group within the Forbes Real Estate Council Members”

Scott Gerber, founder of Forbes Councils, says, “We are honored to welcome Mr. Kawaoka into the community. Our mission with Forbes Councils is to curate successful professionals from every industry, creating a vetted, social capital-driven network that helps every member make an even greater impact on the business world.”

For more information about Forbes Agency Council, visit https://forbesagencycouncil.com/. To learn more about Forbes Councils, visit forbescouncils.com.

 

Quantitative Tightening in Early 2019

Quantitative Easing created $3.5 trillion from 2009 to 2014

Now “Quantitative Tightening” is coming and will drain liquidity from markets

No launch date but says late 2018 but here is the Fed’s schedule

 

Do I think there will be a slight correction but the FED is trying to get back some “dry powder” to be able to stop a monumental slide? If there is a 10% plus correction the FED will go back to QE3-QE4.

In the end, don’t freak out just buy investments that are undervalued. If you are new well sorry you need a mentor or you need to push through lukewarm turnkey deals as fast as possible.

Podcast #109 – Fundamentals – Comparing Crowdfunding websites with Andrew Savikas

YouTube Link: https://youtu.be/gaPmkHukwiM

Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer

Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347

Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club

I’m doing some research on Crowdfunding sites (although I always prefer working directly with the operator as opposed to using these middlemen platforms). A lot of Hui Deal Pipeline Club members have been collaborating on this.

Have you used any of these platforms? Lets crowdsource deals and due diligence!

Here is a podcast I did with RealityShare – http://simplepassivecashflow.com/podcast-97-investing-via-crowdfunding-sites-open-country-club-chat-reality-shares/

As a syndicator I don’t like using these sites to raise funds because 1) I don’t have access to the investor contacts which totally kills the referral marketing for future deals and 2) we tried it on a previous deal where the Crowdfunding site committed to raising a small portion of our total raise and they fell on their face.. Not saying that the Crowdfunding sites will never be effective but at this time it is not a useful means for experienced syndicators who already have investors of their own.. So beware as an investor… its like trying to find a mate on Tinder (this is a controversial subject I know) but for many there is a reason they are on the “open market” and cannot attract “capital” on their own from their own personal network.. Just saying… 

Fundrise & Realty Mogul have launched “eREITs” which tries to tackle investment vehicles other platforms are not capitalizing on.. It’s interesting to watch how they trademarked “eREITs”.. Definitely a sign where investing is going.. Again institutions controlling and taking a cut away from the little guy.. 🙁

Blackhat tactic 😉 – Some deals are put out to private networks (like the Hui Deal Pipeline Club) and these crowdfunding sites simultaneously.. Many times the crowdfunding site offers a 7% preferred rate where the direct source offering gives a 8% preferred rate… tricky tricky if you ask me.. Now one could backwards engineer this all and go around the crowdfunding site but still like I always say YOU DON’T KNOW THESE GUYS.. Syndicator’s are running around out there without any operator experience or portfolio of their own and doing deals with people just off referral.. A recipe for disaster if you ask me..

Here are comments from Hui Members:

“I’ve invested in 10 you have listed and am familiar with quite a few others.  The best on your list are yieldstreet.comgroundfloor.us and streetshares.com. I have had 12-14 % returns with all three.  Hedgable.com is also a good site for investing in the stock market.”

“Some of the companies have questionable backgrounds make sure you google ‘company name + sec infraction;'”

“Just too much default rate”

“You are right! If you can find private placements skip these sites altogether”

“Sometimes you can use these CF sites to find the deals and google the operator. Often times if the CF site has it as a say 8% pref, going to direct to the operator will give a 9% pref”

“Groundfloor – I have not invested money in them but I have taken 2 loans on the borrower side and the experience has been mixed. They are fairly young start up and have many of the issues associated with that – high staff turn over and regular process change which has made the process a little frustrating. The sales person who managed the start of the process moved on half way through the loan being set up which resulted in the amount of the loan being incorrect, the structure of one loan was correct and the other wasn’t (interest paid monthly not accrued until the end) and the timelines were off. The good: the interest rates are low in the space so they offer good value (6.5%), the points paid are reasonable (I paid 2) and the loan is not income dependent but based on credit score and the LTV and project itself which was helpful for my borrowing criteria. You have to provide a monthly update on the project and they hold you to this and so I get the impression they do a good job of protecting investors money. Would I use them again? I’m not sure! It has been a pain but I also appreciate that they are committed to doing better. I now have a good private lender which is easier for me to use so would probably go that route and use groundfloor as a back up if needed.”

“Crowdfunding sites allow you to diversify amongst private offerings via the internet.  The website operates as a Broker-Dealer role and the supposedly “vet” the deal and sponsor.. Supposedly… yea whatever in my opinion.”

“Here is my issue. I always prefer working directly with the operator as opposed to using these middlemen platforms.. A lot of Hui Deal Pipeline Club members have been collaborating on this”

The returns started around 15% using my criteria but have leveled off to about 8% since then and I expect it to remain as this level.”

“Lending Club – This is UNSECURED debt. This is also known as peer to peer lending.. Like a guy needs to borrow 3k for a table saw for his business or someone has a broken car.. Good user experience and the information on the dashboard provided is much more readable than Prosper.com.. One user says “my net annualized return is 12.37 % and Adjusted net annualized return is 5.6%.. Both information is easily readable on the dashboard and it gives an easy to read view of the payments of how much principal, interest, late fees.. Also gives a good view of the notes itself like issued, in grace, fully paid, late by 16-30 days.  It has automatic re-invest and liquidate quickly.”

“PeerStreet – Works like Lending Club but is Secured by real estate.. They also give you quite a bit of information on borrower as well as the property details (LTV, Stressed LTV, Improved LTV, borrower’s FICO, etc).”.

“Prosper – It does same as above Lending Club but not as good dashboard information interface.. It has automatic reinvest.”

“Yieldstreet –  It’s for accredited investors only – So basically for people who are Rich already!”

“Some of the more established crowdfunding sites are starting to lower their returns because they have achieved a good sized crowd.. It’s still a wild wild west space with many platforms/website jockeying for position.. Many are offering high rates of return and under-collateralizing themselves in my opinion for market share.. Beware some have fraud in their past so make sure you do a little Google-stalking to dig up the dirt.. When I evaluate deals for the Hui Deal Pipeline Club, I realize there are so many deals out there that if someone has a questionable past, I just move on.. Too many good people doing good deals to not be choosy.. This is a newbie mistake I see a lot in private placement investors that they marry the first deal they get pitched at a local REI meeting.. It happened to my partner who lost $45K and myself who lost $40K.”

“Overall what I hear from you folks trying this method of investing is that the default rate is higher than what is expected and the middle man (crowdfunding site) is getting rich here.. But hey if you are not good at networking these are the table scraps you get.”

Here is the list I am working with:

 

https://alphaflow.com
AlphaFlow helps investors build diversified real estate portfolios across the crowdfunding industry. Make informed decisions, faster.

https://agfunder.com
AgFunder is the premier marketplace for the most promising Ag and AgTech startups seeking to raise investment capital from accredited investors.

https://1000angels.com
Build your own venture portfolio, free of management fees or carried interest.

https://angel.co
Private single-deal VC funds led by top angels.

https://yieldstreet.com
YieldStreet connects investors to originators with deep expertise in alternatve lending.

https://bolstr.com
Invest in businesses you understand and believe in.

https://circleup.com
CircleUp lists companies for you to review across a spectrum of consumer product and retail categories. Browse or search our portfolio to find opportunities that interest you.

https://crowdfunder.com
Venture Capital: Crowdsourced. Invest in many deals at the same terms as leading VCs

https://www.crowdstreet.com
CrowdStreet provides superior technology solutions that enable all investors to directly connect, invest, and create wealth through real estate.

https://equitymultiple.com
Gain exclusive access to high-yield commercial real estate deals

https://equitynet.com
Use EquityNet’s patented technology to efficiently screen and analyze thousands of investment opportunities in minutes.

https://equityzen.com
Where Private Investors Access Proven Startups

https://farmfundr.com
FarmFundr offers an affordable way to own and invest in high quality farmland.

https://flashfunders.com
Invest in Companies You Believe In

https://fundable.com
Fundable is a powerful fundraising platform that enables Startups to quickly engage a large network of Backers to raise capital.

https://fundersclub.com
Invest in the world’s most promising startups. Diversify your investment portfolio with insider access to highly vetted startups from Silicon Valley and beyond in just minutes.

https://fundingcircle.com
Invest in successful small businesses.

https://fundrise.com
Real estate meets technology, with one simple goal: Earn better returns.

https://www.fundthatflip.com
Earn 10+% annual yield by investing in qualified real estate loans.

https://www.groundfloor.us/
Private lending, now public. Earn average returns of 10%.

https://hedgeable.com
We are the only digital wealth manager to offer curated investing in venture capital.

https://homeunion.com
Build a diversified residential real estate portfolio using HomeUnion’s end-to-end services of property selection, acquisition, management and sale to match your financial goals

https://ifunding.com
Revolutionizing Real Estate Investing. Individuals invest as little as $5,000 in institutional quality real estate.

https://investability.com
Find Your Next Single-Family Investment Property Now

https://lendingclub.com
Build a diversified portfolio that can offers solid returns, low volatility, and monthly cash flow

https://lendingrobot.com
Automated management of your existing Lending Club, Prosper, or Funding Circle accounts.

https://lendinghome.com
Build your own diversified, institutional-quality real estate portfolio in minutes. LendingHome offers high returns and durations of just 12 months or less.

https://www.lexshares.com/
Earn returns by investing in lawsuits

https://localstake.com
Connecting businesses & local investors

https://www.macrocrowd.com
We work with investment specialists who have vetted billions of dollars in real estate developments. These industry giants provide us with exclusive investment opportunities for our platform’s investors.

https://microventures.com
Get access to highly curated early and late stage investment opportunities

https://nextseed.com
Invest in exclusive, pre-vetted deals that used to be available only to the wealthy and well-connected.

https://www.ourcrowd.com/
Invest alongside trusted venture capital and angel investors

https://patchofland.com
Earn up to 12% on your real estate investment in one year.

https://peerrealty.com
PeerRealty is the premier real estate crowdfunding platform. Gain insider access to high quality opportunities with top developers.

https://www.peerstreet.com
PeerStreet is a marketplace that provides unprecedented access to high quality real estate loan investments.

https://prosper.com
Investors can earn solid returns by investing in personal loans listed on Prosper

https://realtymogul.com
Commercial Real Estate Investing for All

https://realtyshares.com
Institutional quality real estate. Simplified investing

https://republic.co
Invest as little as $10 in the private companies shaping our future. Pick the companies you believe in and support their mission.

https://roofstock.com
Own an income producing house with as little as $20K down. No hassle.

https://seedinvest.com
Invest in highly vetted startups.

https://seedups.com
Connecting Investors with Technology Startups

https://selequity.com
Selequity connects accredited investors with the sponsors of commercial real estate (CRE) investment offerings. Our national network of accomplished real estate professionals assures you’ll have unique access to investment opportunities.

https://sharestates.com
Invest in real estate with as little as $1,000. Faster access to capital for real estate developers.

https://startengine.com
Invest in companies you believe in

https://trialfunder.com
We make access to the lucrative legal funding industry possible

https://upstart.com
We go beyond FICO scores to finance people based on signals of their potential, including schools attended, area of study, academic performance, and work history.

https://wefunder.com
Back founders solving the things you care about. Grok the risks, then join 93,004 investors who funded 155 startups with $35.5 million.

https://www.wundercapital.com
Invest in solar projects. Do well and do good.

https://crowdsourcefunded.com/
Where entrepreneurs and investors source the wisdom of the crowd.

https://dreamfunded.com
The New Way for Everyone to Invest in Real Estate

https://equitybender.com
We seek to help Software and IOT companies raise capital online and build shareholder value.

https://fundingwonder.com
Invest in loans that help small businesses grow

https://gridshare.com/
GridShare enables everyday people to invest in renewable energy projects and cleantech companies.

https://growthfountain.com
Invest in local businesses and entrepreneurs you believe in, starting at $100

https://indiecrowdfunder.com
Equity-based Entertainment Crowdfunding

https://jumpstartmicro.com
Jumpstart Micro brings together investors,

entrepreneurs and innovation in one place.

https://mrcrowd.com
Mr. Crowd is a SEC-registered equity crowdfunding platform

https://minnowcfunding.com
You Can Invest in Real Estate. Start Small, Dream Big

https://netcapital.com
An open market that brings together entrepreneurs and investors

https://smallchange.com
We Bring You Projects That Make Cities Better. You Invest In Them.

https://razitall.com
Razitall. An innovative equity crowdfunding platform. You pitch, you bid, and everyone wins.

https://us.trucrowd.com/
A new way to diversify your investment portfolio

https://diversyfund.com/
The simplest way to invest in real estate. Higher returns, lower fees and start with as low as $5000.

https://www.richuncles.com/
Invest Alongside Experts in Real Estate

https://acquirerealestate.com
Acquire Real Estate identifies, underwrites and pre-funds high quality commercial real estate properties. We then offer the opportunity for accredited investors to invest alongside us.

https://www.wealthmigrate.com/
Wealth Migrate is the leading global real estate investment marketplace, giving investors direct access to exclusive real estate investment opportunities in premier markets around the world.

https://neighborly.com/
Invest in the places you live, work and play. Neighborly is modern public finance.

https://www.iintoo.com/
Invest in Exit-Oriented Real Estate for as little as $ 25,000

https://www.1031crowdfunding.com
We are an online marketplace for 1031 Exchange investments.

https://healthfundr.com
Invest in healthcare’s transformation. Private investing at the intersection of financial returns and impact.

https://www.money360.com
Invest in loans secured by income-producing properties

https://www.propellr.com
A curated marketplace for alternative asset investments

https://www.instalend.com
Invest online in senior debt real estate opportunities and earn monthly distributions

https://www.realcrowd.com
Build relationships with commercial real estate companies and invest directly in their investment opportunities.

https://www.venture.co
Diversify how you invest with access to new private companies in exciting industries raising funding with offerings open to both accredited and every day investors.

https://streitwise.com
A new way to invest in real estate designed to be rewarding and accessible for everyone, stREITwise cuts out the middlemen and passes the savings on to you, the investor.

https://holdfolio.com
Invest in a portfolio of properties we already own.

https://www.royaltyexchange.com
Your online marketplace for buying and selling royalties

https://hotelinnvestor.com/
Hotel Investment Banking – One Innvestor at a Time

https://www.energyfunders.com
Direct Energy Investing Made Easy

https://www.iselectfund.com/
iSelect works with accredited investors to assemble a diversified portfolio of the Midwest’s most promising emerging growth companies through their own financial advisors.

https://www.realtyevest.com
RealtyeVest is an online marketplace that connects investors and sponsors (real estate owner-operators) tocrowdfund exclusive real estate investments.

https://www.equityroots.com/
Become an owner or lender in branded hotels for as little as $15,000 per share.

https://www.arborcrowd.com
ArborCrowd is an online commercial real estate company. By allowing people to co-invest with successful real estate deal-makers, ArborCrowd enables millions of investors to maximize their financial returns.

https://fundanna.com/
The funding portal for all Cannabis and Hemp enthusiasts.

https://www.cannafundr.com/
Join the largest network of cannabis investors and entrepreneurs in North America

https://startwise.com
Revenue sharing deals accessible to Everyone

https://cannacrowd.fund/
Legal Cannabis Investments

https://streetshares.com
Financial Solutions for America’s Heroes and Their Communities

https://crudefunders.com
Using Crudefunder’s innovative online investment marketplace, we provide sophisticated and beginner investors with the opportunity to invest in Oil & Gas Projects.

https://www.cityvest.com
CityVest is an online marketplace where accredited investors can pool their capital to buy shares in institutional real estate investments.

https://www.rabbleworks.com
Rabble is an impact investing platform that connects people with projects that strengthen communities.

https://firstrealfund.com
First RealFund’s Mission is to identify, offer, co-invest, & manage superior commercial real estate investments with capable owners and quality assets.

https://www.cuttingedgex.com/
The Direct Public Offering marketplace connecting investors with social enterprises.

https://www.honeycombcredit.com/
Honeycomb allows local businesses to borrow loans of up to $50,000 directly from their own loyal customers for business expansion projects.

https://www.milkmoneyvt.com
Online equity crowd-funding portal connecting Vermont’s “Main St.” investors with Vermont entrepreneurs.

https://wunderfund.co
Invest in Big Ideas Near You

https://fig.co
A publisher where you can get a share of revenue from game sales – we bring together developers and communities from all over the world to publish great games.

https://www.buytheblock.com
Buy The Block online investing in real estate with your peers. Pool funds, share knowledge, vote on a property to invest, efficiently manage accounts online.

Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:

Investor, advisor, writer, father. Founder at @yieldtalk. Ex @oreillymedia, @safari. Occasional consultant & speaker. Chronic reader.

1) Your background and your Real Estate investing track record?
Andrew Savikas
andrew@yieldtalk.com
My own journey through crowdfunding, especially real estate
Related posts:
https://yieldtalk.com/my-crowdfunding-portfolio/
https://yieldtalk.com/baby-steps-getting-started-with-crowdfunded-real-estate/
https://yieldtalk.com/why-you-should-care-about-real-estate-as-an-investor-even-if-you-dont-care-about-real-estate-investing/
Importance of new crowdfunding choices in helping fuel entrepreneurism (and overall economic growth), especially serving traditionally underserved categories (eg non-males and non-tech companies outside of Silicon Valley, NYC, and Boston)
Related posts:
https://yieldtalk.com/crowdfunded-investing-democratizes-capitalism/
https://yieldtalk.com/can-crowdfunding-help-close-300b-funding-gender-gap/
Importance of understanding “convex” vs. “concave” risk, and the implications for risk/reward profile of your portfolio
Related posts:
https://yieldtalk.com/diversification-crowdfunding-investments/
https://yieldtalk.com/know-your-alternative-investing-style-zebra-or-lion/
The surprising number of choices out there for non-accredited investors
Related posts:
https://yieldtalk.com/24-ways-crowdfunding-for-non-accredited-investors/
https://yieldtalk.com/5-best-equity-crowdfunding-sites-beginning-investors/
You should also ask me about the time I had to pick between the Google IPO and a new couch (I picked wrong!)

criteria in your site, insights from looking at all though sites, and your recommendation for people to invest in rentals, crowd funding, or direct syndication.

2) Something that you have recently or thought about “burning your cash” on for time savings or an improvement in quality of life.
[Andrew] After leaving my last job (CEO of an ed-tech company for 5 years) right after my second child was born, deliberately moved to a lower-cost-of-living place and dialed down work commitments to have more time with my kids while they’re young. Definitely worth it! But I’ll never forget the night I was putting my son to sleep soon after my daughter was born and contemplating the return to a very demanding job that was only going to get more so, and imagining myself 5 years in the future wishing I could trade the money I’d made for more time with the kids while they were growing up.

3) Something that you changed your mind on? Our ego often gets in the way of greatness.
[Andrew] Having kids definitely changed my perspective about the opportunity cost of my career trajectory. Has helped me see the benefits of a more balanced portfolio approach compared with driving 1000% down one path.
Also, what it means to have a “balanced” or “diversified” portfolio. Was profoundly influenced by Nassim Taleb’s “Anti-fragile” and the concepts of convex and concave risk (and the notion of a “barbell” portfolio).

4) Anything we missed and contact info if you would like anyone to get a hold of you. URL?
[Andrew] I’m a voracious reader, and as a side project I started posting lengthy reviews of books that have shaped my thinking about leadership, strategy, business, and more. I’m also super into meditation and mindfulness, and have written about 10 books that helped me apply mindfulness to my life in general, and doing better work in particular.

And speaking of books, 13 years ago I wrote a book about Microsoft Word of all things.

 

Podcast #108 – Rocky Lalvani recalls 2000 & 2008 corrections and regrets not getting started earlier with a little marriage family advice

YouTube Link: https://youtu.be/v0fB-e3579E

Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer

Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347

Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club

Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
Currently have 5 rentals and 80k of income and trying to paying off rentals because near retirement
Also flips properties where the goal is 20k profit
He outsources much of the work
Got rentals in 2011 and regret not doing it earlier
Got hammered in 2008
Got out of the market in 2000
Interest rates are very low which is different that past times which means a good time to lock in loans, stocks are pretty high
Real estate is not for everyone and might have a wrong skill set
If you don’t want to do the work be a hard money flipper but only make 10% (you need to have the money)
Don’t lend to someone doing their first flip
Need to hire a virtual assistant – 5 properties can manage by self
Let go of politics
Marriage advice
Begin with the end in mind – He already knows his legacy and just lives it
Teaching kids financial principals – mindsets and habits
To teach a 12-year-old – give them money
To teach a 30-year-old – they need to want to fix the money problem
Letting go to be happy
richersoul.com

Podcast #107 – Fundamentals – The MFH Broker who takes flowers to 80-year-old ladies and the brokers point of view from Mark Allen

YouTube Link: https://youtu.be/25UY_v17bt4

Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer

Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347

Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club

Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
Mark Allen is a broker
Started in 2009 and went to Westpoint Academy
Got a $35k loan to get started in FL
Started with subject to or assuming the loan method of acquisition
2015-2016 sold initial properties and started flipping properties while working the day job
lead to MFH
Saved the money from flips and day job to go into MFH
You can find Mark at SVN and check out his podcast
ROI on time is more for Commercial than residential
Provide value by driving properties, pictures, transaction beat
Yadi matrix, co-star offer owner data
Face to face is better than email or phone
Bring 80-year-old sellers flowers
once or every two months a touch point with some value
As an investor go right to the broker and all of them
CCIM is a higher level designation (but that’s your job as an investor to know what a deal is)
Loopnet/correct C is a good way to find active brokers who are perhaps hungry
SVN, Marcus, Colliers, JLL, CBRE are popular brokers
Call brokers and introduce yourself
Share pitch deck with broker and share team so you show that you are credible