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

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

1) Embrace the fear – removes complacency

2) Manage your fear – Visualize

3) Practice it and get experience

4) Eyes on the prize

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

– Jason Statham

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

– Jason Statham

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

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

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

Some dialogue from the show:

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

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

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

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

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

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

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

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

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

5) Current 2-week experiment and 6-month project? (90-180 day goal):

A mark of a high performer is to put your ego aside and accept the help of others and mastermind maybe folks can help you by you asking. My current 2-week experiment is to get my son to eat his vegetables! Just kidding, in reality my next big 2 week goal is closing on our 100 unit apartment syndication. My 6-month project is get the repositioning of the apartment community well under way and get into a good business rhythm.

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

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

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

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

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

8) Something that you changed your mind on?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Podcast #071 – Fundamentals – Recent Setbacks in my Rentals

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

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

Rental Investment Costs incurred to date are as follows:

Attorney’s Fees                                $268.30

Eviction Services                              $1,310.00

Total                                                  $1,578.30

Haul, Disinfect & Clean                   $4,800.00

Total                                                   $6,378.30

(Less) Security Deposit                     $1,295.00

Total Out-of-Pocket Exp                   $5,083.30

Always underwrite and double check you have the buffer!


Check out my Free Resources Below:

1) Simple Passive Cashflow Hedge Fund:

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

More info: www.SimplePassiveCashflow.com/fund

2) Join a Social Club:

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3) Subscribe to Simple Passive Cashflow Podcast!

Google Android Phones // Apple iPhone // Youtube

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

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

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

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

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

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

Summary of every Simple Passive Cashflow Podcast.

Bad Data: Class C/B vs Class A

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

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

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

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

All Classes Data

 

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Get out, Get up, and Get Some!

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

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

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

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

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

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

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

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

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

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

Please share with your friends via email!

Using Life Insurance to be your own bank

Video: Using Life Insurance to be your own bank

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

The inspiration behind this:

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

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

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

 

SPC066 – Matt Orf – 17 Years as a Continuous Improvement Engineer to Flipper

Real Estate Experience: Matt is a full time real estate investor and coach for new Real Estate investors. In the past two years of full time real estate activities he has flipped 3 properties without using any of his own capital. (Made profit on each flip) One of those flips he contributed most of the labor for the experience. The two other flips he was able to establish a team of contractors and implement some standard processes. He has acquired 3 rental properties in Kansas City, one of which was a subject to arrangement while the other two were acquired through private investor capital and leverage. These 3 properties now have a combined equity value of over $100K. Currently working toward a cash out refi to put toward an additional 4 or more properties in the Kansas City market. He also has a cash flowing duplex in New York, which is funded through a Self Directed IRA. In the last year he has been able to take 6 coaching clients through his program, which takes them from beginning investing knowledge through acquiring their first cash flowing property. Matt’s short term investing goal is to reach a specific passive income amount through buy and hold properties. Once obtained, focus on flipping, coaching, 1031 exchanges and commercial investments.

Relevant Work Experience: Matt spent 17 years working for Harley Davidson Motor Company in many different roles within the organization. He is a Six Sigma Black Belt, which is a system for process analysis and Continuous improvements. In these roles he was able to work in varied parts of the company from Materials, Logistics, Finance, Assembly, Supply Chain, Clean room development, Information technology, Organizational Development and training, to writing training materials for standard practices. The majority of this work revolved around Project Management and focus to details and repeatable processes to minimize defects in all areas. (waste reduction to increase profits.) These projects allowed Matt to work directly with all levels of the organization and with team members from around the world. In 2014 Matt retired and started 3 Real Estate Investment focused businesses.

Real Estate Education and Mentors: Matt is a life long learner. In the past two years he has worked with 3 private coaches focusing on areas of personal self development, Real Estate investing education and mentoring, health, wellness and mindfulness. He is currently in training to become a certified Bulletproof coach. He is certified in Project management, holds a black belt level degree in Six Sigma, is certified in Lean Manufacturing through the University of Michigan, and holds a business management degree from Park University. Matt is a regular participant on the Bigger Pockets online community and the local Kansas City Real estate association. He regularly consumes podcasts, audio books and traditional books that focus on diverse topics such as Real Estate, investing, mindset, personal growth, relationship building, tax savings, business creation and improvements. (and Star Wars) ☺

1) How much simple passive Cashflow are you making today and how are you doing it?
(You don’t need to give a number if you would like privacy. You can be vague such as halfway to quitting my job, cover my mortgage, Make 25% of my expenses, over $10k, although people like when people open up the kimono.) Enough to support my desired lifestyle.

2) What is your Han Solo moment – Han Solo and his buddy Chewbacca from Star Wars were cruising around the galaxy as lowlife smugglers but then cross paths with Luke and Leia and his life took a pivot point. Describe the resistance that was the catalyst for change.
At the time I had a full time career in corporate America, when I met my (currently) fiancé; she asked me a question that made the shift for me. It was the beginning stages of us getting to know each other, we were talking about what we did for a living. After I told her about what I did she asked me if I love my job. I took a few minutes to really think about it. It was at that moment I had the AHAH! I really disliked what I did! It was the first time I really analyzed how I got to this point. I did everything I was told I was “supposed to do”. Graduate high school, go to college, get a good job, invest in your 401K, work hard and everything will be “perfect”. It was far from perfect. I felt like I was living a lie. I had been duped. I wasn’t happy with where I was at all, and it was all based on the decisions I had made. Shortly after my answer to my fiancé, she said, “well if you don’t like your job, what are you going to do?”. I replied, I will be making a change and I will figure it out.”
Did you “burn the boats” or did you let it happen naturally – was there an internal (you decided to make a change on own – what was thought process?) or external trigger (ie got fired from your job)?
I burnt the boats in a huge way. That next Monday (after the talk with my now fiancé) I walked into the office and pulled my manager into a meeting room and handed him my two-week resignation letter. He was floored. He said what are we going to do? You have been with us for 17 plus years, what are you going to do? I replied, I have no idea, but it isn’t going to be this. I was 100% sure that I was making a change in my life to something that I truly desired to do. I took the next two weeks to get all my things in order and transition to a different life. I walked out of that building for the last time and felt as if the weight of the world was lifted off my shoulders. There was also a lot of fear and internal emotions involved I had to deal with. (All of which were great things)

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

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.
Current six month project is my first syndication in Belize. Can talk high level on it, but would love to get other investors to contact me for more info.

5) What is your simple passive Cashflow number? Now imagine you had 2x that amount… Describe your ideal day, detailed routine, and what projects you are working on.
I practice the “Miracle morning” most everday. – alarm goes off at 6 am. Meditate, breathe, yoga, goals review, schedule review, affirmations, BP coffee, intermittent fasting until 11am or 12 pm. Spending time with the girls before school- working on Real Estate investments (flips/rentals), Coaching others on building their portfolios and crafting their action plan to escape the rat race. I also coach small businesses and coaches on how to build systems and processes to reduce waste and increase profits. Every 3-4 days I will hit the gym- usually weights- Metabolic Complexes (A metabolic complex is a series of exercises performed fluidly together without rest. Complexes are ideal for fat loss. They involve tremendous amounts of work in a short time. For the time-crunched, complexes are invaluable.) I do quite a bit of reading and consume 3-4 podcasts a day. My top podcasts area:
The Tony Robbins Podcast
The Tim Ferriss show
The Way I Heard It
The Real Wealth Show
Dan Carlin’s Hardcore History
Bulletproof Radio
Bigger Pockets Podcast
Epic Real Estate Investing

6) Something that you have recently or thought about “burning your cash” on for time savings or an improvement in quantity of life.
7) Something that you changed your mind on? Our ego often gets in the way of greatness.

7) Tony Robbins identifies two large concepts that we are continually struggling to gain perfection at: #1-Art of Fulfillment and #2-Science of Achievement. If you died tomorrow and I were to email this to your kids a couple decades later… this is what they would hear.
What is your secret/hack for the “Science of Achievement?” Any secret habits to share? Morning or Nighttime ritual?
What is your secret/hack for the “Art of Fulfillment?” How you do contribute back?

8) Anything we missed and contact info if you would like anyone to get a hold of you. URL?
www.MattOrf.com
Matthew@CarboniteProperty.com

 


#LaneHack #JustTheTip

Check out my Free Resources Below:
1) If you are an accredited investor and afraid of the impending market correction?Get out the stock market and into the Simple Passive Cashflow Hedge Fund!
More info: www.SimplePassiveCashflow.com/fund

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Seattle: https://www.facebook.com/groups/SPCHUISEA/
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5) Make sure you sign up for my Hui Deal Pipeline Club to get sent the deals I come across:
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6) I am partnered with a start-up Virtual Assistant firm out in the Philipines. Shoot me an email Lane@simplepassivecashflow.com if you want to try out a 10-hour free trial.
More info: https://drive.google.com/open?id=0B4gFjCt6Knc1U3YwYjdZRnYzN1k

7) Join a Local Social Club:
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10) And finally… if you are just getting started Sign-up for Free access to the 10 Module Course: https://simplepassivecashflow.activehosted.com/f/1

Summary of every Simple Passive Cashflow Podcast: https://drive.google.com/open?id=1banG1R0TKhv_ji54tsZMbYJ8iikr9Ib103ZUeYse_ts