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Podcast #94 – Fundamentals – Ask Lane: MFH latest underwriting hacks, GP/LP Splits, reading an executive summary, mobile homes

Stories from my SFH portfolio…

One of my longest tenants went AWOL. 🙁

“They did send in a partial payment of  $965 that we received on Monday..  They now owe for January and $385 past due.  for a total of $1,263  I am not sure why they are being so uncooperative for the inspection”

A couple weeks later…

“She has been in the hospital again.  I gave her our direct number and she said she will call.  She is also supposed to bring the late part and will bringing last months rent in about a week and half.  She apologized for the trouble of getting her, but she was not able to return calls.”

I like to work through and with my property management.

They alerted me of the issue.

“Seems like valid reason for being late. Maybe we can ask for hospital invoice or doctor note just for record keeping. We might submit to the potential seller to explain the gap in the rent rolls. That way we can verify it too. “

Rats!

The dishwasher stopped working in this home.  It looks like it needs a new sprayer arm and wire harness for $285.89.  But the bigger picture is there are rodents in the home that chewed the wires.  See pictures.

We will need the approval to repair the dishwasher but first, we will also need to get a quote for rodent removal.  The quotes for rodent removal are free so I will send someone out to see how extensive the rodent issue is.  I will keep you updated and we will go from there.

Our tech went to this property and reported the following:

dishwasher model# gz8945pg35 wire harness was chewed by rodents also spray arm has burn spots estimate for repair $285.89

Sign up for the Hui Deal Pipeline Club to get access to a Sears pricing list to see how my you are getting screwed for by your property management.

Our tech made a temporary fix to wires so dishwasher is working now.  We also recommend to do something about rodents otherwise they may cause more issue….

But hey just got my AHP and private lending not monthly payment J

Mold in one of my properties

Buying a drone-

For the past few years I have been amazed the amazing drone shots.

J Martin posted some shots in Changmai, Thailand and I started to ask him which one he used. Basically there are two of them that everyone gets one that is mobile and in 1080p (300) the other which is larger and in 4K (1000).

I’ve been adding videos to our YouTube channel and think that the 4K is where the future is. I’m making the leap to get the 1000 dollar version. I also am going to consider it a business purchase so I can get a nice entrepreneur discount too. Sometimes I think in amazement how crazy that would be to buy such a toy for a miser like myself. But then I figure I would take cool shots for our investor club when I do due diligence. How cool would it be to take shot of drilling rigs for exploratory drilling? Yup we are going there.

A couple of years ago when we were working our first project in Iowa which we ultimately dropped we did some video and it really brought the project to life.

As a side note, I had shinny object syndrome kick in and thought I would be able to make videos for other companies. Imagine I could go to a CrossFit and record their outdoor workout or go to a wedding (and get free food).

Then I thought that I could get a dime a dozen (commodity employee) or Millennial good with computers to do the tedious editing for me.

But then I stopped myself. But the whole mental exercise brought insight about what I want to ultimately hit my Simple Passive Cashflow number when you work on things for joy and engagement. What better to help people share awesome visuals and be around people on their special day like a wedding or birthday party.

So I heard Uncle Buck Joffrey started intermittent fasting a few months ago and lost 40 lbs. I started doing IF when I started renting out my first home in 2010. I can remember reading the ebook “eat stop eat”.

Ralph Waldo Emerson
“The first wealth is health.”

I needed to step my game up so I decided to find a personal trainer. So stay tuned for that. After spending 60k in 2016 and 30k in 2017 on training and mentorship I truly see the value of it. Of course, as you know I am someone who takes action. I can also say being on the other end mentoring you guys in my paid coaching program that it’s neat seeing the barriers broken. Honestly, I don’t feel like I do much but the results are amazing. As an ex crossfit coach myself, if you would asked me if paying someone 90 dollars to count my reps and pass me the weights… I would have thought you were crazy. But now I get it!

Wanted to share a trend that I have been seeing in the past 6 months in MFH (idk how it manifests in sfh?)

The class c assets are getting beat down by cap rate compression (delta between cap rate and interest rates) and therefore a lot of the experienced investors are getting into class b because the per cost unit is getting pretty much the same. This is moving away from the normal business plan for turning class c to b. The thought is… heck might as well go for the 1980s build instead of 1960-1970s stuff for the same price. Having a newer asset might also be a little more conservative way to go with this stage in the market cycles because in a correction A will move to B… And B will move to C and the lower class D/C in the tertiary areas will see most of the vacancy or rent concessions.

Hurricanes:

I got to pondering looking back when New Orleans was hit by Hurricane Katrina there were short-term disruptions to gas prices especially since Houston is a major think tank for the metro industry. I expect Federal money which might have been focused on (helicopter money) be spent on infrastructure spending or tax cuts NOW be redirected to damage recovery.. Which will manifest as tax breaks, loan subsidies, or other incentives offered to entice investment capital to flow into affected markets.

Definitely an opportunity in the short term to go in there and develop to take advantage of the fiscally earmarked casually funds.

As a long-term buy hold investor what I am keying in on is what the big institutional players (like insurance companies) will do. I suspect they will actually have to pony up and pay claims in Houston and Florida which will divert funding away from their Plan A: financing new class A multi-family apartments in other markets. This results in less new developments coming online which is great for Class B and C mfh investors who have been struggling with the recent cap rate compression.

Other random thoughts:

  1. Low / no equity homeowners will walk from their properties and focus on rebuilding their lives as renters for the next 2 years. These foreclosures will certainly impact values in numerous communities throughout Houston.2. Many insurance companies will re-think the coastal markets and their policy premiums for same. This, along with the inevitable increase in flood insurance premiums will also impact buying power for future homeowners.

    3. Landlords will be in demanding higher rents as there will be a shortage of housing for the next year or while properties are rebuilt.

    4. Long-term impact can only be speculated on since this was an epic storm that caused billions in damage to homes, autos and businesses but those purchasing SFR’s better buy very, very low or they could be the next distressed sellers.

Changes in MFH Underwriting and getting deals

I’ve had some hurdles here.  It seems the standards in submitting LOI’s have been changing the past 9 months. What changes have you been seeing from the front line?

1/ Business conditions are dictating POF with the LOI.   Based on the latest sophisticated investors are underwriting deals with 80/20 terms,  1% interest only and 1.25 DSCR.

It’s becoming more common for brokers to review the buyers’ underwriting before accepting an LOI to present to the sellers.  The brokers view these terms as aggressive and are reluctant to submit my LOI.  It matters who your lender because it comes down to team and a portion of it is your lender.  Large deals have been falling out of escrow due to over-aggressive underwriting that cannot find financing.  Las Vegas lenders are underwriting at 65/35 LTV, 1.3 DSCR.  You can change your underwriting to match Las Vegas standards, giving brokers more comfort, and therefore remain on the ‘A’ list or do nothing.

A lot of time you will needs POF with the LOI.  Use an angel… anyone who is an ‘Angel’ on the LOI, will be given the option to KP and co-sponsor ( if qualified ) the deal if the LOI is accepted.  The average $/unit for a C-class, value-add, stabilized asset in a C to B- area is $55-85K.  The POF for a 200 unit property at the top end is $5.95M.

2/  Post close liquidity equal to 10% of the loan.

3/  Proof of net worth equal to the value of the property.

4/  Hard money; the standard is becoming 1% of the purchase price (I haven’t submitted an LOI with hard money yet; .5% hard money and see if that places me in best and final).

Question: I heard you say in the podcast that you have a team in Atlanta. How did you go about building a team there? Is there a podcast episode on that?

I think it’s no secret that as the sellers market matures, turnkey properties not in war-zones are becoming endangered species. When I began picking these things up in 2013 you could get inside the loop highway (under an hour commute to the city center) and get a 1980-1990s product. Now you are looking outside of the loop highway and in 1940-1960 properties. The good turnkey providers are frankly making more money selling to retail buyers than us cheapo investors who has got a million questions. The stuff I see coming out on most lists are properties that you would not want to buy. Unless you have someone boots on the group (who is not trying to sell you) and is agnostic to the transaction, you are going in blind to a loaded minefield.

I am beginning to leverage my contacts and finding investor focused real estate agents who know what to look for in a rental property. This effectively cuts out the middleman in the transaction but it requires you to know what you are doing in the first place (two to four transactions or a mentor) so you can coach your agent and arrange for contractors. You find one person who is good you find the others because good people associate with good people.

I feel like the SimplePassiveCashflow Facebook group has reached a tipping point where everything you need from a peer investor network is here. You just have to go about it the right way. One wrong way I see it done and I see it done in other groups and BiggerPockets is being an “ask-hole”. Asking a one off question and not contributing to the community is a sure way to get crickets and a one off answer. But you miss the point, which is to build a relationship. Put your perspective goggles on and think… how can I add value to someone or others? What do they need?

So my call to action is if you want to team up with me and help me source properties and teams let me know. The rest please stand by for PML deals and others on the Hui Deal Pipeline club.

We need to stick together and work collectively. As a Hui. I know what happens when you read a few websites and podcasts and go it Rambo style because I did it myself when I first got started. You will get eaten by the sharks and you won’t know what got taken from you. You leave so much money on the table that you don’t realize a couple years down the road.

I don’t want to discourage anyone from not buying because at the end of the day even with the prices as they are it’s still better than the equity markets. I currently believe that there is a 50% chance we will see a recession in the next three years so keep investing just as long as the numbers make sense. If you don’t know the numbers or think you know get someone to help.

Where do you think the crossover point is?

I am talked to over a couple hundred people over the past year and for those people SAVING less than 30K per year after their day job should invest in rentals or turnkey rentals in a market like kansas city, memphis, atlanta, birmingham, not seattle, san francisco, california…

The short term goal is to gain landlord/acquisition knowledge and build a cashflow base of a couple thousand every month. But once you achieve that you should step up to larger passive partnerships/syndications because the return to pain in the butt ratio is greater. People who call/email/write on forums fail to see this two phase journey. People hear the benefits of MFH and come up with the ridiculous 1000 unit goal when they have not even see if they are borrowing material on their first buy and hold. Eventually, a lot of people quite a fizzle out while starting out on the MFH road when they should have done sfh and this insight.

As much as I advocate for “simple” I am really an advocate for the minimal effective dose to maximize returns with minimal effort.

So I’m trying to learn how to evaluate syndications as a passive investor. I was looking to a deal that was presented to me near your last one and I ran a quick analysis. What do you think?

CONS:

– 1990s build A class than B/C Class @ 120k per door and value-add reposition is from B/C to A, risky at this market cycle in event of a recession and rent contraction (Usually we are buying at 45-65K a door with a stabilized building that have over 90% occupancy)

– Loan is 80.25% LTV -> too high? – (This is not really a factor – you want to be borrowing as much as you can and this is why you are going with such syndication to buy in bulk with others and get better terms. When looking at the loan you need to look at the term such as loan length, if it is recourse or non-recourse, and pre-payment terms)

– Loan is 36 months -> dangerous in this cycle (5 years and less is dangerous, just closed on a property in OKC for 10 year 4.22% 3 year interest only)

PROS:

– Sponsors experienced – how did you verify this? (Talking to investors who were in past deals. Relying on my network to discuss reputation and character. Note: This is not going to be completed by emails or phone calls.)

– Investor waterfall favourable – (Waterfalls create complexity and typically they mean less returns for the passives. Generally, the best terms for investors is a simple 80/20 or 70/30 split. Waterfalls raise a red flag for me. I have seen people balk from a high sponsor fee but that is just one thing, if it’s a deal then the sponsor should be able to take what they want. A deal is something that is underwritten very conservatively – see below)

Based on my limited and growing knowledge, I wouldn’t invest in this deal if I had the funds. What do you think?

(You are scratching the surface of these: A true analysis of the deal requires you to have income and loss statements and rent rolls going back 12 months and possibly 36 months. This is where analysis totally differs from SFH or units under a dozen. Another part is to analyze the rental comps because 90% of the projections are based on the proforma rents per square footage. A lot of smoke and mirrors can be used by leads and brokers to inflate this number. Comps need to be verified and it is really a touchy feely thing. It cannot be a feeling on hey this 1985 property looks like this 1987 property on the westside of the train tracks looks like I can get $1.12/Rent per SF. Warning…I have see a lot of garbage underwriting play with annual rent increases 2.5%+ a year, expenses increase less than inflation – under 2% annual increases, and total rent increases of over 18% – this is something Patrickherbig.com has really opened my eyes too.  Past performance is not an indicator of success and 2012-2016 anyone could have made money if you were in the right place.)

I saw the last deal you did was at a 70/30 as opposed to 80/20, which is what I understand to be the generally accepted industry standard for syndications.  How do you think about evaluating deals with respect to the profit split, both from the investor and the sponsor perspective?  I’m trying to understand the situations where a “below market” upside would be acceptable and how the sponsors decide what structure to use – is it just based on supply/demand and the reputation of the deal sponsors (ie the sponsors/GPs will make the deal as favorable to them vs the LPs as possible while still being able to attract investors)?

I see a lot of yahoos doing 70/30 splits with silly assumptions like 1% expenses increases and expectations of over 20% bump in rents. I also see a lot of 80/20 and 90/10 deals that are run by folks with long and short track records. Beware of a person with a nice suit. I think I need to personally show up better because of people never the less associate a shinny pdf deck and cool bio page as reliability or perceived value. I would not really look at the GP/LP splits. The way I see it if it’s a great deal then we as LPs should have a large room for error and heck yea the GP should be taking a large cut. But things get muddled by the assumptions the GP is using and quite frankly unless you have analyzed 100-200 large MFH properties and put in a few LOIs I don’t think you will be able to see where the red flags are. There is a YouTube video “Bear and basketball awareness test” https://www.youtube.com/watch?v=Ahg6qcgoay4 where you get fixated on this split stuff and forget the fundamentals of the deal.

Thoughts on mobile home parks/ self-storage?

I recognize as both still being in the real estate category as a good way to diversify away from Real Estate in a heated market. I admit I don’t know much about the two, especially self-storage. From what I have gathered from other investors the Cashflow in Mobile homes is a little higher but there is not as explosive upside as apartments. This upside is really never captured in a conservative proforma anyway. Mobile home parks are a not being made and in times of correction, they are going to be in very high demand.

I have been looking at some mobile home parks and talking to a bunch of you if you are more interested in either a single asset higher risk/reward mobile home park or a more diversified play of multiple parks in one.

Some 2018 Trends

The ULI annual forecast is really comprehensive and great bathroom read:
 
Takeways:
-Interesting points brought up on different age generations
-What international countries are bringing in investment dollars
-What cites have the highest oversupply
-Trends in natural disasters
-Where home building is hot
-Homeownership rates
-Student Housing trends are going down
Let me know if you are interested in attending a 2018 trends webinar that is 10x this!

Podcast #93 – Fundamentals – 1031 Exchange tips with Russell Marsan of IPX1031

Lane’s note: I personally don’t like 1031 exchanges for sophisticated investors who will one day graduate to syndications because they are not “like kind” exchange. It just goes to show that understand where your advice is coming from. A lender will want you to get a portfolio loan, a lawyer will want you to get an elaborate entity structure, and a 1031 custodian will want you to do a 1031 exchange.
You get to list and buy a property from who ever
I bought 9 properties by selling 2 properties and delayed the taxes
Note: recorded in 2017 prior to 2018 tax changes
a 1031 exchange avoids capital gain and depreciation recapture
Drawbacks – you have to time the sale and purchase of the new asset
In a sellers market you can get a good price but have trouble finding a good asset
45 day rule – you have this time period begins at the close of escrow of the first property you have to identify a list of property that they would possibly close on
180 day rule – you have this time period begins at the close of escrow of the first property you have to close on the replacement property
Try to line up inventory in the pipeline
Delaware Statutory Trust – you close on relinquished property and park the money goes into the exchange account with intermediary
Reverse exchange – alleviates selling property and not finding anything – you can take all the time in the world to acquire the property and then sell your relinquished property, the problem is that it is costly, qualified intermediary else closes the new property, required cash to purchase new property and possibly need a L1 environmental
Section 721 – donate real estate to partnership interest
And exotic exchange ideas

Podcast#92 – #LaneHack – Coaching & Group Coaching Programs

Fill out this intake form and Email Lane@SimplePassiveCashflow.com

More details: SimplePassiveCashflow.com/coaching

 

Coaching packages including everything Lane knows and following elements:

Pick the path that is right for you:

    • Buy Hold Rentals
    • Remote Turnkey Rentals
    • Go big with Apartment Investing
    • Decoding Syndication as a Limited Partner
    • Raise money from others and Syndicate
    • Building a team

 

Find & Analyze deals

    • Be able to point out Sucker deals for “Californians”
    • Underwrite the property conservatively via cashflow analysis
    • Get every dollar on the table in the due-diligence period and punch list negotiation
    • Get the best financing option with Lane’s preferred lenders
    • Leverage Lane’s Deal-flow and Rolodex

 

Put it all together

    • How to setup your personal systems to not go crazy
    • Balance with your full-time job
    • Optimize taxes with my best practices and the proven professionals to advice you
    • Best technology to use
    • Learn the investor mindset and remove limiting beliefs
    • Future goal setting and clear 5-year plan after our program is over

 

Other possible scope of services

    • Growing your brand
    • Syndicate big and small deals
    • Start your own podcast
    • Internet marketing
    • Networking the right way

More details: SimplePassiveCashflow.com/coaching

My big takeaways from the list of 2018 Tax changes:

1) Standard deduction and personal exemption combined and seems like everyone is getting more… so its a wash IMHO.
2) Less deductions for those who don’t have a business like real estate investments. Sigh… it just gets harder and harder for working professionals.
3) Sorry to those paying Alimony… Yay to more kids though although we all know that’s a huge net negative unless you put them to work in the farm
4) Mortgage interest capped, this is to pay for general cuts across the board. Smart investors will find away to make their home an above the line business expense.
5) 20% pass through on personal return from business yay!
6) Estate tax limits increases… must be a favor for some old poker buddies?
7) Lower corporate tax to hopefully re-patronize companies who ran away from USA.

I went down the following list and updated my personal spreadsheets to calculate my tax liability. You should too… just Don’t hand it over to your CPA!

INDIVIDUALS

Effective Date: 1/1/18.
Expires 1/1/26.
Real Estate Taxes on Primary Home plus State & Local Income Taxes Capped at $10,000.
Standard Deductions:
Single: $12,000.
Head of Household: $18,000.
Married Filing Join: $24,000.
2% Itemized Deductions Eliminated:
Tax Preparation Fees.
Unreimbursed Business Expenses.
Continuing Education Expenses.
Licensing Fees.
Investment Expenses.
Alimony – Effective 1/1/19 Alimony No Longer a Deduction to Paying Ex-Spouse and No Longer Income to Recipient Ex-Spouse.
Mortgage Interest Deduction Limited to $750,000 for Primary and Secondary Home New Mortgages Obtained After 12/15/17.
Home Equity Interest Deduction on $100,000 Only Allowed For Home Improvements.
Real Estate Tax Deduction for Vacation Homes No Longer Allowed.
Moving Expense Deduction No Longer Allowed.
Casualty Loss Deduction No Longer Allowed Except in Presidential Declared Disaster Areas.
Medical Expense Deductions Adjusted Gross Income Threshold Reduced from 10% to 7.5% But Only For 2018 & 2019.
Alternative Minimum Tax Exempt Income Thresholds Increased From $54,300 (Single)/$84,500 (Married Filing Joint) to $70,300 (Single)/$109,400 (Married Filing Joint).
Alternative Minimum Tax Exemption Phaseouts Increased From $120,700 (Single)/$160,900 (Married Filing Joint) to $500,000 (Single)/$1 Million (Married Filing Joint).
Note: This means that if your income exceeds the $500,000 or $1 million phaseout amount, you are no longer eligible to exclude $70,300 or $109,400 from Alternative Minimum Tax.
Child Tax Credit:
Increases From $1,000 to $2,000 Per Child, For Children Under Age 17. Also, This Credit is Refundable Up To $1,400 If You Quality (Meaning – You Meet The Low Income Tests).
Phaseout Increases From $75,000 (Single)/$110,000 (Married Filing Joint) to $200,000 (Single)/$400,000 (Married Filing Join).
529 Plans Change – You Are Now Allowed to Use $10,000 Per Year to Pay For K-12 Education Tuition, Materials and Tutoring.
Obamacare Penalty is Eliminated Effective 1/1/19.
Marriage Penalty is Removed From All Tax Brackets.
Income Tax Brackets Will Now Be Adjusted For Inflation Using a Much Slower Measure Called Chained Consumer Price Index For All Urban Consumers.
PASS THROUGH ENTITIES

Effective Date: 1/1/18.
Expires 1/1/26.
U.S.-Based LLCS, S Corps, Partnerships and Sole Proprietors, Real Estate Investors, Trusts and Estates, REITs and Qualified Cooperatives
20% Deduction Allowed On Individual Income Tax Return. This 20% is Applied to Your Share of the Taxable Income From a Pass Through Entity.
Deduction is Phased Out if Your Income is Too High: Phaseout Begins at $157,500 (Single)/$315,000 (Married Filing Joint).
Non-Service Businesses Who Exceed The Phaseout Amount Default to This Limitation:
50% x Wages Reported On Pass Through Business or
25% x Wages Reported On Pass Through Business Plus 2.5% x Tax Basis of Depreciable Property.
CORPORATIONS

Effective 1/1/18
Permanent – Meaning No Expiration Date.
21% Flat Tax Replaces Graduated Tax Brackets.
Territorial System Replaces World-Wide System
All Foreign Profits of U.S.-Based Corporations No Longer Taxed Effective 1/1/18.
Pre-1/1/18 Untaxed Foreign Profits of U.S.-Based Corporations Automatically Subject to Corporate Tax, Even if Those Foreign Earnings Remain Held Oversees. Tax Rates on “Old Foreign Profits”:
8% x Untaxed Foreign Profits Invested in Illiquid Assets Plus
15.5% x Untaxed Foreign Profits Invested in Cash and Cash Equivalents.
ESTATE TAX

Estate Exemption Increased From $5,490,000 (Single)/$10,980,000 (Married Couples) to $11,000,000 (Single)/$22,000,000 (Married Couples), Effective 1/1/18.
OTHER

50% Entertainment Deduction No Longer Allowed, Effective 1/1/18.
Tax-Free Parking/Transit Subsidy No Longer Allowed, Effective 1/1/18.
100% Write-Off of Qualified Fixed Assets, effective 1/1/18.

This tells you per your state exactly how it is affected:

https://www.washingtonpost.com/…/busi…/tax-bill-calculator/…

Podcast #91 – 2017 Recap – Hui Deal Pipeline Club acquires $50M of real estate and raises $3.5M for syndications

Correction: Hui Deal Pipeline Club acquires $50M of real estate and raises $3.5M for syndications

2017 Recap

An amazing year which started on January 1 2017 me waking up in Atlanta after seeing my Washington Huskies getting destroyed by Alabama in the Peach Bowl and traveling to Birmingham to look at some turnkey rentals.

A year of changes & 2018 Preview

Let me know if you visit Honolulu! Let me pick you up from Honolulu Airport and have a consult for some tax savings.

  • The first change this year was that old website that looked like "Flubber blew up” is gone and replaced with a decent website. I was also looking back at some old email newsletter that I sent out with some funny Gifs which I will post on the email newsletter and website.

 PS THE BOOK IS COMING! EMAIL ME FOR A FREE COPY 😉

Here is video walkthrough of the new one: https://share.viewedit.com/iPBEYsNWW9uuvsZWJewFb3

  • I have been making additions to the YouTube Channel not found on the website so please Subscribe and Share: https://www.youtube.com/channel/UC3cIIsGKx3osVU5rt2P0HfQ
  • Personally I got up to 825 units… most of which in the second half of 2017 after a very quiet 2015-2016.
  • I am migrating to a new database that will support over 900 investors in the Hui Deal Pipeline Club. Please fill out the following form so I can keep you up to date on the latest deals I come across... The new database is pretty slick so based on your answers.
    1. Acquired $35M Total real estate, 589 units acquired, 2M raised for syndications (Coffee, apartments, RV parks, Private money lending)
  • With the success of our last four syndications and raising the following for the Hui Deal Pipeline club (https://simplepassivecashflow.activehosted.com/f/3) I will continue to expand the opportunities by continuing my membership in an Apartment mentoring group as well as a Syndication Mastermind to get access to higher quality deals. I spent $60,000 in 2016 and $30,000 in 2017 on expanding my network and knowledge and will continue to do this to produce the best deals and content. Going to goals seminar in January and will be thinking of where to take this. – The initiative not to “train my investors down” and improve my due-diligence. Help me help us!
"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."

Projects to come in 2018:

 

Action Items:

  • Let me know if you are interested in coaching, group coaching, or the Mastermind
  • Let me know what are you working on these days? What has got you blocked? I might have a contact or input that may help! Lane@simplepassivecashflow.com
  • Can you help me spread the word of the podcast? Can you make an email intro to me of anyone you think would like additional exposure on the SimplePassiveCashflow Podcast?

 

My goal is to help others escape the rat race. Please share it with your friends and family because after all, once you have left the day job you won't have anyone to have a lunch date with during the 'regular' work week.

 

We have all heard that you are the average of the 5 people you hang out with most but I would argue that the 5 people you keep in company, can be the end of you. Choose your supporting cast wisely and consciously. Be aware of unconscious mentors, ie podcasts, tv, radio, books you read. I'm all about automation and spending my time of things that are more important.

 

So you can just copy and paste the below:

 

Hey Man, I just checked out this blog with podcast where they actually show how to buy passive real estate investments to build streams of income to leave the day job.. They have this free 10 course "Think Outside the Cubicle" series with access to spreadsheets, mindset tips, networking offers, and deal-flow access.. Here is the sign-up for just the website updates: https://simplepassivecashflow.activehosted.com/f/1

 

Podcast links:

 

Google Android Phones: https://goo.gl/app/playmusic?ibi=com.google.PlayMusic&isi=691797987&ius=googleplaymusic&link=https://play.google.com/music/m/Iwlprtpxn4qim36w6buokzgg6ha?t%3DSimple_Passive_Cashflow_Podcast

 

Apple iPhone: https://itunes.apple.com/us/podcast/simple-passive-cashflow-podcast/id1118795347?mt=2

 

YouTube: https://www.youtube.com/channel/UC3cIIsGKx3osVU5rt2P0HfQ

 

And if you want to cherry pick for specific investing topics here is the spreadsheet with a summary of every Simple Passive Cashflow Podcast: https://drive.google.com/open?id=1FJ8rBA-SxQ50KJpQP1lppHC9UNLGLS2mIQS899X8__A

 

With the year closing I urge you to take a time out and ponder the following.

 

Don’t just read the questions… set the timer for 10 minutes and just think.

 

 

  • In an ideal world, what would your upcoming year look like?
  • What do you wish for in the new year?
  • What dreams would you like to come true?
  • What goals would you like to pursue and achieve?
  • What new knowledge would you gain?
  • What new skills would you acquire?
  • How much money would you make?
  • How much money would you save?
  • How much would you weigh?
  • How many miles would you be able to run?
  • How fit would your muscles be?
  • What new, powerful relationships would you like to forge?
  • What exotic places would you travel to?
  • What new job would you have?
  • What promotion would you receive?
  • What fun things would you do?
  • How much time would you spend with your family?
  • What would your ideal, perfect day look like in the new year?

 

 

 

Podcast #90 – Fundamentals – Scaling up through raising money with Victor Menasce

2010 – Moved from Tech job

Quickly scaled up his business and ran out of money

Infill = urban setting

greenfield = land up

Started with JVs by small residential projects and expanded to apartments

It’s not about the deal… It’s about the team

Someone told him to focus on raising money

Fundraise or Deal Operator

MFH is resilient to cycles but most of the larger projects have too many offers on one property… You don’t want to be the winning offer

Use interest rate reserve as another line item in the budget

Demand for class A is not there for what is built

Find where the line is in a city and move the line

Don’t ask about a general city, ask about a few block radius

Student housing – look at the local market for overbuilt from university (look at bedroom alignments)

Unclear about military housing near bases which is like having one employer

Tax abatements offered on government stimulus for possibly 10 years

Non-resident owner might not be eligible for FEMA assistance

SFH property has all your cash in the deal

2008 was a banking crisis, not a real estate crisis

Does not have paper assets because his old CEO lied to the public and realized that the small investor has no control

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

• Set up location based automations

• Setup routine maintenance reminders

• Set up news alerts

• Have weekly updates so you can batch tasks and updates

• Have alerts exception based via text or email

• Followupthen.com

• File away your emails

• Pull tasks don’t push it to you

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

• GTD by David Allen

• 7 Habits of Effective People

• Trello app

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