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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
Sitting around waiting in lines or family to finish holiday shopping? Here is some good reading?
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Mark Walker is founder of Luxmana Investments, which focuses on residential and multifamily investments. Mark quit his corporate job and is now a multifamily investor.
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):
My passive income is more than 200% of my expenses. I have a portfolio of 22 SFR’s in Denver, Colorado, and a 64-unit apartment complex in Dallas, Texas. I also have a small equity position is another 96-units in Dallas, TX, but I am not the managing member of that.
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:
I met a general contractor in 2010, and we decided to do a couple residential development deals together. Through that relationship I was introduced to several people who were instrumental in me taking the next steps to build my passive income portfolio from there. Combine this with the fact that I was becoming increasingly frustrated with the corporate world, and that drove me to become even more focused on escaping the rat race.
3) Did you “burn the boats” or did you let it happen naturally? Was there an internal (you decided to make a change on your own – what was thought process?) or an external trigger (ie got fired from your job)?
I decided to make the change on my own, as I desired financial freedom and to spend more time with my family. The external factor of becoming frustrated with the corporate world was not the primary driver, but it did add to my motivation.
4) What was your worst life/business moment and what did you do after? Lesson learned?
In the 2005/2006 timeframe, I moved forward on a real estate opportunity which turned out to be fraud. I can certainly elaborate on this, but long story short: I testified to the Grand Jury to help get this indictment, and I was the second person they put on the stand at the official trial. The offender received a 130+ year prison sentence, which was the largest sentence ever given in the State of Colorado at the time for fraud. I learned about the importance of “trust, but verify.”
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 top two goals in 2017 are around family and health. If I can find and do one 50+ unit multifamily deal in 2017, that will be icing on the cake.
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.
Simple passive cashflow number is $20K/month. If I had $40K/month, it’s full retirement in Central America. It would be lots of days in the sun with my wife and daughter, plus exploring this region of the world. We would, of course home school our daughter.
7) Something that you have recently thought about “burning your cash” on for time savings or an improvement in quantity of life.
Tesla P100D – so incredibly impractical, but really cool.
8) 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?
Never stop learning. Learning leads to action, and action leads to success.
b) What is your secret/hack for the “Art of Fulfillment?”. How you do contribute back?
There should always be a reason other than money for why you do anything. For example, I didn’t build a passive income portfolio because I wanted to buy a fancy car, bigger house or a Tesla. I did it because I wanted to be financially free so I could spend more time with my family and positively impact other people. So, I contribute back by giving people a great place to live, but I am also able to give more of my time (e.g. Salvation Army, etc).
9) Anything we missed and contact info if you would like anyone to get a hold of you. URL?
I would like to give the listeners a free gift as a thank you for listening: 10 “Not So Obvious” Ways to Boost Your Multifamily Property NOI. You can get it at: http://www.luxmana.com/simplepassivecashflow
Hey guys I’m about to get naked here… I am personally making a shift in my portfolio to MFH Investing and wanted to see if you could help me find a buyer for my stabilized 10 property 1.2M portfolio.. 10 B Class properties in Birmingham/Atlanta/Indy (rents $900+/month)
I have selected a few potential turnkey rental sellers, however, I wanted to leverage my network and see if we can cut the broker commissions out of it. I’ll give you details on how you can get the P&L for the past few years on every property but first…A few PSAs.
- National Save for Retirement Week: October 15 – 21, 2017
- Scam emails to get information from more and more wholesalers
- Insurance want 5% deductible
My story – bought a couple of rentals in Seattle and 1031 exchange those to 10 SFH essentially turnkey rentals out of state in Atlanta, Birmingham, Indianapolis.
The other day I asked the question on BP… did not get much of a response since BP is a platform for newbies or active investors who flip or wholesale homes. SPC is a platform with secret Facebook groups of profession W2 employees with some cash and little time on their hands.
As I talked a few podcasts ago of a 10k repair, and multiple other headaches, my attitude for these SFHs are changing. Its kind of funny talking to the many of you that are setting up calls to get on the Hui Deal Pipeline Club to getting sent the deals I come across:
Please go through the first 20 podcasts in early 2016 and love the story of this SFH buyer but then they are like WTF you are turning on us like a villain going to MFH.
“Find me an investor who has 50 SFHs and I will show you an investor who was invested under a rock and stoned himself to death with said rock” -Archimedes
After over a few hundred investor consultants 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… but just remember why we got into this… To be free from a JOB. 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.
The straw that broke the camels back…
One of my Atlanta properties went over a changeover, tenant went MIA, went through process to evict – always start the time clock. Armed sheriff had to go and remove items on the street, dead cats were found, $5000 just to remove items, concern over the property could have been condemned. I got Proserve out of Atlanta to go in with radiation suits to clean it up, got a bill for $27K, wtf, some of the scope items were a little ridiculous like 500 dollars for gutters, 5000 for paint, and siding etc. I had them re-estimate it to give me the “dude I’m not a rich idiot price and got it lowered to 20K.
There is no such thing as turnkey. Check out these disaster photos… https://photos.app.goo.gl/R4PZLuOLGHONO5Rl2
Tony Robbins says “Things don’t happen to you but for you.”
This was a sign from above which many of you guys hear from me that I sort of believe in. I was already mentally making the shift to making the move. Going down the quote from the repair company it was clear that a lot of the scope items were a bit excessive and the pricing was inflated. This was to be expected, for example paint on rooms that did not really need painting for $5000 or new gutters cleaning for $500.
If you want to see this document. Please leave me an iTunes review or send me an email referral to a friend and i’ll send it over. Lane@SimplePassiveCashflow.com
Stages of trauma… denial, anger, sadness, motivation.
What I know now I am able to now only make a high yield but a fraction of the effort. None of this screwing around sending docs to my lender in the evenings for a couple months to get one dinky SFH to cash flow a couple hundred dollars a month then do it all over again 20-50 times… then to have it all taken away with a large capex or turnover repair.
Tony Robbins says “You destiny is shaped in your decisions.”
We waste so much time making decisions. A lot of people myself included get shiny object syndrome when really its an excuse.
This was my hero moment or burning of the boats moment to leave the security of a few thousand of passive cashflow a month to go liquid for a while. Hopefully Amazon will announce that Atlanta will be the new second HQ on their quest for world domination.
One drawback about selling is about repaying a lot of depreciation recapture and capital gains going back all the way from 2009. As you remember I traded my two Seattle properties for the majority of these rentals via a 1031 exchange. This is why I am not a fan of a 1031 exchange no matter what you hear on a surface level on other podcasts. Another reason to keep listening and please do me a favor and share it with friends because we go deep on this stuff because I’m learning everyday. I’ll repeat I don’t like 1031 exchanges because many of us are going to graduate in large syndications and that is not a like kind exchange. Executing a 1031 most likely means you are going into a lukewarm deal and lose all your negotiation power as a buyer. But i’ll expand on this at a later date.
Picture of my back of envelope tax hit
I want to be very clear… If you are not an accredited investor, sophisticated, or have a large sum of liquify… single family homes is the starting point for you. Too many call me with lofty goals and have list of pro’s/con’s of MFH vs SFH, but you need to know the basics before you screw up the big stuff. You have to pay your dues. Set that barrier to entry lower because most people won’t do anything.
That said for a limited time I invite you listeners to make offers on my portfolio of SFHs “Lane’s Pac-10”. List price is 1.2M right about 1% Rent-to-Value Ratio (More info –http://simplepassivecashflow.com/podcast-3-rent-to-value-ratio/)
I figure it was only fair if I showed you my naked photos… I mean P&Ls that you take a few minutes to complete a form with your investor profile on.
And if you are listening to this after 2017 and would like to see how frequency of rental checks, vacancy, late payments, repairs, cap ex across all my properties please leave me an iTunes review or send me an email referral to a friend and i’ll send it over.Lane@SimplePassiveCashflow.com
Mastermind Club: If you or someone you refer invests at least $50K into one of my future deals you will be invited to my exclusive Ali’i Mastermind with other 12-20 other serious investors to discuss deals and our own portfolios. SimplePassiveCashflow.com/mastermind
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 email@example.com.
“Podcast #078 – Interview with Sarah May, Aerospace Engineer transitioning out of her Day Job in Denver”Continue reading
Chris Rush shares his success story of how he went on to becoming a Navy Pilot, and a multi-family home investor. Chris talks about how the analogy “burn the boats” relates to his real estate philosophy and he shares his struggles, his experience and his successes. Here are some of the topics we discuss in this episode:
Topics that are covered in this episode:
- Chris Rush is a seasoned real estate investor, serial entrepreneur and founder of Sidereal Management, Inc.
- Chris started his real estate career in the family business as a teenager in the 1980’s. He has extensive experience in property valuation and acquisition; multiple, simultaneous capital expenditure real estate rehab projects; property leasing and management; financing and refinancing; syndication, fundraising and financial selling; and marketing and property sales.
- Over the past decade through syndication, partnership and individual investments, Chris has acquired, repositioned and deposed of for profit over 1000 units in the Texas, Georgia, New Mexico, Arkansas and Washington markets.
- As a syndicator with Fannie Mae loan experience, Chris has an top-notch reputation among the multi-family investment community. He provides exceptional value to investors and the community.
- Chris is a 1995 graduate of the U.S. Naval Academy, Computer Science, B.S. He served 10 years on active duty excelling as a Navy pilot flying missions worldwide.
- Started as a passive investor
- Do a friend-ventory
- Ask what is your hourly rate to outsource
- Be content while you are doing what you’re doing
- Eat the frog to get the important things
Thank you Chris Rush for joining us on Simple Passive Cash flow!
“Podcast #075 – Interview with Chris Rush, Navy Pilot gone MFH Lead, sharing his mindset and productivity tips”Continue reading
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
“Podcast#072 – Interview with Rod Khleif, Multi-Family Home Investor”Continue reading
Mark is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 20 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion to help others succeed in the multifamily arena.
Mark is invested in 1,750 units and has a top-notch reputation among the multifamily investment community for providing exceptional value to investors and the community while being easy to work with.
Mark is a 1993 graduate at Michigan State University in Accounting and is a CPA. He has provided IT consulting for 20 years and is leveraging his vast IT experience to bring new creative technologies that will help others in the multifamily space. He has worked for organizations such as KPMG Consulting, EDS, SAP, HP, and founded Simplifying-IT which provides IT services to fortune 500 companies.
Looking for a passive fund that invests in distressed notes?
SimplePassiveCashflow is proudly sponsored by www.investinahp.com
Time is the most important resource! Email Lane@simplepassivecashflow.com to use the same VAs I use
Kenny Wolfe is an apartment syndicator today but it was not always like that
At 33 years old he left his CFO position and went full-time REI
2016 might have been the peak (100 deals, 10 look ok, and one offer)
5.25% interest rate at early 2017, 1.25 DSCR is a hard underwriting figure
At 24 years old bought and failed at a tanning salon
MFH Property Management is much more responsible
Treating investing like a business with an office and professional documents
If you need a VA I am a partner of a VA firm that offers super qualified staff for a variety of tasks. Get creative and send me an email if interested in a free 10-hour trial.