133 – Veteran’s VA Loans & Other Financial Wisdom

SimplePassiveCashflow.com/133va
David from Military to Millionaire
Currently still enlisted in Army and spent some time as a recruiter
Don’t blow you money on a nice car
VA Loan – 0% down home loan for a primary residence with no private mortgage insurance (PMI)
You can buy up to a 4 unit
Move and buy at each difference duty station
Generally, 410K loan is the max with exceptions for high price areas like Hawaii
Relocation benefits
Do you stay enlisted in the military
Don’t underestimate the tax-sheltered allowances and perks

131 – Takeaways from #FinCon18 and Side Hustle stories

 

Just got back from FinCon2018!

 

What’s that?

A pretty impressive event. Its where 2000 financial bloggers, you-tubers, and podcasts this year gathered around all this money.

In 2006, I started reading financial blogs. Sole of my favorite was getrichslowly, Wallet Hacks, and of course mr money mustache. FinCon started in 2011 with just a couple hundred people.

Real estate investing is a minority. 95% of people are debt adverse and about the 4% rule. Buying cash so so debt. Living small is selfish? Make 150k a year and retire when you are 35…

The Millionaire Next Door book is not the type of lifestyle I would like to live.

A lot of financial advisors which I don’t really like.

I am cool with how it is enough to be happy and content.

Other Findings:

New investment account that incorporates mobile interfaces and suto-AI. Mint app has click to invest and banking apps have click to refi. It’s a little dangerous.

A cool 5% instant liquidity online savings bank that invests in inventory loans. Let me know and I can connect you with that as I try to do more due diligence on my own.

Liberty health share – religious-based health insurance

Side gigs – consistent theme from high performing growth mindset W2 employees who are not getting fulfillment at their bureaucratic day jobs.

Interviews to follow in video…

Please share this with friends because if you don’t soon you won’t have any friends to have mid-day lunch with when you not doing anything
Interview 1: Michael – Financiallyalert.com –
Interview 2: Spendlessgreen.com
Interview 4: Alex – http://dailyps.com & nguonline.com
Audio only version

129 – Matt Theriault – Changing strategies in this market

YouTube Link: https://youtu.be/SkY5izkbkoQ? sub_confirmation 1


Audio Version: https://youtu.be/cIYy9ViRoSw? sub_confirmation 1

Article Link: 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________

I worked with Matt’s team way back when in 2014 buying turnkeys. Simplepassivecashflow.com/turnkey Since then it is interesting as times change how his strategy has changed.
We just completed the last deal for an Mobile home park. Which is a little different than apartments.
Please leave an iTunes review – Help fight negative one-star review

Earning $30,000/mo through single-family homes and seller-financed notes.

Epic Real Estate started selling turnkey properties in 2009.

Built successful portfolio, but returns lowering. However, real estate always a good purchase to buy and hold long-term.

Amortization, depreciation, appreciation, and leverage (wealth multiplier) all make real estate investing attractive.

Focusing more on lease options now for C- and D-class properties to rent properties and eventually sell them to tenant.

Went from 7-figure year as a musician to bankrupt at 34. Found real estate mentor at grocery store and life changed.

Real estate is the final frontier for the average person to have a legitimate shot a creating wealth.

Paid $22,000 for mentorship in 2006. Everyone thought it was insane, but helped him get started.

People who made it were ready for it. “Move faster than your doubts.”

Find the deal first and then the money will find you.

Authored book “Do Over” that chronicled struggles and how he built his real estate empire.

Be intentional with who you surround yourself with. Peer pressure works.

Always be looking for a coach and outgrow them. Results accelerator.

Spends $100,000/year on masterminds – worth being around the right people of doers.

Goal was to increase passive income and decrease expenses. In 4 years became “retired,” but wants to be wealthy; not just financially independent.

Bookkeeper should be the first role you should outsource. Transaction coordinators and marketing person also helpful.

Hardest part of the business is to find the deal and get into contract.

Visit www.epicrealestateinvesting.com to check out the Epic Real Estate Investing Podcast.

127 – Estate Planning and Asset Protection with Lawyer Andrew Howell

YouTube Link: https://youtu.be/zaHW3_OEU8Y? sub_confirmation 1

Article Link: 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________

Estate planning
Guests I have are giving insights but always hire your own person because these things require personalization
I try to bring guests on and ask the questions that I think you folks would ask.
I believe you need to have a basic level of knowledge before engaging with a professional
For those of you who are in the Mastermind and my current investors you will hear about my Fort Knox strategy which makes LLC enitites creation look like childs play
Email me any questions to feature on the next ask Lane podcast or monthly email newsletter
Andrew L. Howell is the Co-Founder of the law firm, York Howell, with a focus on asset protection.

Many useful tools out there, but where do you as an investor fall on the asset protection spectrum?

Two fundamental risks: 1) Asset-based risks 2) Direct-based risks

Real estate considered as “hot” assets because liability risks are greater – more than equity.

Liabilities both inside and outside the asset.

Typically form a holding company to hold limited liability companies to abate asset- and direct-based risks.

Holding properties in one LLC basket is good, but still risks if something happens in one property.

Concentrate on family protection first (trust, wills, etc.). Then move to next level of asset protection planning.

If own property out-of-state, advise on setting up a parent LLC in states with charging-order protection.

Tough LLC rules and taxes for poor California residents!

Need to do your due diligence on reviewing PPM’s – especially who you are doing business with.

Asset does not create liability risk for LP’s; only GP’s.

If you get personally sued, can go after your MFH syndications and other assets even as LP.

6% of current generation feels obligated to give back to kids. Instead of giving, create a bank.

Create purpose when setting up your trust.

Please reach out to teamandrew@yorkhowell.com and visit www.yorkhowell.com.

126 – Gino Barbaro talks Apartment Investing


YouTube Link: https://youtu.be/lvd9F9OmDI0? sub_confirmation 1

Article Link: 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________

Jake and Gino have a great podcast and definaetly fit in the category as guys who are growing and doing things right
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. Join Hui Deal Pipeline Club and check out the sSimplePassiveCashflow.co/mission

Gino Barbaro from Jackandgino.com who focuses on MFH real estate.

Group owns 848 units valued at >$50 million. Expecting to go up this year.

Took 5 years to get $25K-30K/month in passive cash flow.

Fumbling around in the beginning with smaller cash flow amounts, but snowballs over time.

Came from the corporate world to managing a family restaurant. 2008 transitioned to real estate to make better use of time outside of the kitchen.

Highly recommend reading “The E-Myth” by Michael Gerber. Need a visionary, manager, and technician for any business.

Believes you need a Connector, Executer, and the Backbone. Can’t do all 3 – pick 1 or 2 and hire out.

95% of blocks are internal. The rest are external. So, focusing on resolving limiting beliefs and get a life coach.

Google Tony Robbin’s 6 human needs. Have to continue to grow and contribute in a large way.

Relocated to Florida and aiming to obtain $40K/month by end of this year.

Have lifestyle work for his business; not his business work for his lifestyle.

Becoming more efficient by hiring a VA and Digital Marketer for jackandgino.com. Wants to spread content and message; not work on menial tasks.

Focus on 1 or 2 niches for real estate and become an expert at it.

MFH has more barrier-to-entry v. stocks, crytocurrencies, etc. The more people in it, the less profit margin there will be.

Share weekly successes. It’s not bragging, it inspires people and surround yourself with the right people.

Be present in the moment. When you’re at work, with family, etc. focus on dealing with that situation.

Visit www.jackandgino.com. Also on FB, LinkedIn, Twitter, and Instagram. E-mail works too: gino@jackandgino.com.

 

 

125 – Living the FI dream abroad with Jeremy Jacobson from Go Curry Cracker

YouTube Link: https://youtu.be/3NQ0agjuxXY? sub_confirmation 1

Article Link: 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________

Went on normal path. Got a job after college, house, and fixated on paying off student loans.

Aggressively paid down student loans, but motivated by people who retired early.

5 years ago, both quit their jobs, traveling, raising family, and living their dream.

Ruthlessly slashed expenses and saved 70-80% after-tax income.

Max contributed to 401K, IRA, HSA, and after-tax accounts.

Short-term joy = trading years of financial-free opportunity.

Actively chose lifestyle. Traveled internationally by arbitraging where they lived with low living expenses.

Didn’t listen to mainstream advice of owning home. Choosing a renters lifestyle to not get “”stuck.””

Both have blogs and garnered new friendships; not the “”Seattle Chill.””

Finances on auto-pilot. Can work on growing family in Taipei and doing creative things they did during childhood.

Two types of things preventing people from being financially-free: Afraid to take leap to be financial-free and long-term goals to strive towards.

People don’t change minds because you provided info to them; they change when they’re ready.

Visit www.gocurrycracker.com and social media accounts on FB, Instagram.

124 – Brian Hamrick from the Rental Property Owners Association

YouTube Link: https://youtu.be/-ENcRI2LhuA? sub_confirmation 1

Article Link: 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________

Brian Hamrick is from Rental Property Owners Association (RPOA) and runs Rental Property Owner and Real Estate Investor Podcast.

Currently owns 380 units, which cash flow makes 50% of W2 job salary.

Paydays not only about cash flow. Cash out refi and syndication benefits once and twice a year exceed W2 job salary.

Was sitting on cash waiting for next downturn. However, in past year, became a silent investor in commercial property, a NPN, and a self-storage facility.

Expects rents to plateau in future, but not to 2008 levels.

Started off investing in high-load tech funds, but bubble burst in early 2000’s and stocks tanked.

Rich Dad, Poor Dad inspired Brian to begin investing in real estate and obtain more control.

California is cash-flow negative market, so looked at positive cash-flowing out-of-state markets.

Transitioned to multi-family investing in 2008 for better scalability and profitability.

As passive investor, focusing on leveraging partners’ strengths for new passive investments.

Down the road, looking at developing the “missing middle” properties (small MFH 2-10 units).

Visit www.higinvestor.com to get in touch with Brian.

123 – Why to break-up with your Financial Planner – Interview with Brent Sutherland

 

Just got back from Korea after my first vacation for the year. I wrote an article that you can get access by signing up for the monthly newsletter or via the Hui Deal Pipeline club.

Monthly updates and what I’m doing in my own investing

Podcasts have been piling up and I realized the need to add some context to the introductions to highlight important items to look out for. Also to call out opinions I don’t really believe in.

This podcast I had Brent Southerland what is a CFP but not one of those other quacks who get paid on commision and try to stuff you in whatever is most convenient or biggest paycheck for yourself.

Check out the bigger article here on this topic: SimplePassiveCashflow.com/fp

Enjoy and remember to go to SimplePassiveCashflow.com/club to join our investment club

Brent Sutherland is a CERTIFIED FINANCIAL PLANNER™ practitioner, with over 11 years experience in financial services.  With stops in the corporate accounting and investment world, and now the boutique financial planning arena Brent has witnessed, firsthand, how the financial services industry has fashioned itself into an overly complex machine in an effort to cause confusion, encourage mistakes, and justify fees; all to better benefit its own bottom line.  He believes there is a strong correlation between financial noise and financial mistakes which further delay one’s personal financial success.

Therefore, his objective is to help individuals turn off the noise and challenge the traditional approach to financial planning and thinking.  In his experience as a financial advisor and personal finance enthusiast (+ early retirement advocate + semi-minimalist + real estate investor), Brent has found that most often the simplest solutions and some outside the box thinking will better help individuals on their way towards sitting firmly in the driver’s seat of their own financial world.

Why don’t financial advisors advocate for real estate investing?

  • Primary = Compensation conflicts of interest
  • Secondary = Lack of education, so pose it as a risky asset
  • Secondary = ERISA and how mutual funds came about with employer-sponsored 401k

How do FA make money? Similar to MLM? — (Is this short for multi-level marketing?)

  • Can tie this into the first topic above (compensation conflict, which is a primary reason why FA’s don’t discuss real estate investing)

Hidden fees in even low got mutual funds?

  • Transaction fees, Management fees (can be tiered based on assets), Loads (front-end, back-end), 12-b1 fees

What tricks do FA use?

  • Use of traditional planning items related to portfolio to justify: “security”, “diversification”
  • Use of confusion terms related to portfolio to justify fees:  “alpha”, “sharpe ratio”
  • Use of graphics that show market returns (absent fees), but fail to discuss emotional impact on client and true returns normally witnessed

The importance of income diversification over portfolio diversification

  • Income diversification protects against big risks:  loss of job, market crash, injury
  • Portfolio diversification is important, but is a secondary risk.  Savings is even more important.

Why are paper assets more risky than hard assets?

  • Always going to be demand for hard assets, especially real estate (living, production)
  • Population trends are growing at an exponential rate, land and resources are not
  • You have more control over real estate; meanwhile the stock market is out of your hands

Why passive cash flow betters your odds of financial independence

  • Gets you to the point where you’re truly secure and can have peace of mind.  Not worried about your boss/job, and not worried about things going on the the world, country, state (etc) economies that are out of your control.  You become the boss of your personal economy.

Talk about your personal transition to direct ownership in Real estate and recovering from the lies?

  • Seeing it work for other people, educating myself (independent of my traditional “education”), and finally making the move to buy my first property (after some analysis paralysis and fear)

Proper planning techniques to access money tied up in your retirement accounts.

  • First know the rules involved (traditional IRA/401k versus Roth IRA/401k), as you don’t want to just hand a big chunk to Uncle Sam in form of taxes and fees.
  • Impact of cashing out plans
  • Strategies to more efficiently free up that money and keeping more in your pocket (Roth conversions, Substantially Equal Periodic Payments (IRS Code 72t))

What to look for in a FA?

  • Want someone who is fee-only (hourly or per service) and planning focused.  Someone who is focused solely on managing your money for a % fee is going to always have a biased interest in moving you towards a liquid/paper portfolio).
  • Find someone who lines up with your values and interests.  Never be afraid to interview multiple people and ask tough questions.  Advisor should have conviction in what they do.
  • Understand that a financial planner can be very valuable, as there is much more to financial planning than how you invest your money (insurance, estate, education needs all need to work in harmony with an investment plan to best meet a person’s financial goals), but imperative that that financial planner is on the same page as you.

brent@ntellivest.com

122 – Apartment Investing with Michael Blank

YouTube Link: https://youtu.be/1N3wBAwPrfw? sub_confirmation 1

Article Link: 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________

Partner with Multi-family Home (MFH) students to close first MFH deals.

Passive Income became attractive after reading Rich Dad, Poor Dad.

Opened pizza restaurants without mentor and lost 95% of net worth after 5 years.

Realize can raise money for Real Estate. Flipped 30 houses in 2 1/2 year but still active work.

Received passive mailbox money for first apartment in 2011 and never turned back.

Combination of doing MFH deals and teaching/helping others is fulfilling.

Stop being a drifter. Drifting keeps us from living an intentional life.

Ongoing experiment to scale business while not lacking quality of deal.

Transition from being focused on generating money to helping people become financial-free.

Do first MFH deal and reduce living expenses to quit W-2 job.

Momentum will build in subsequent deals. But first deal is always hardest.

At peace with things out of your control.

Be sensitive to where your business is to make right investments, such as virtual assistants, salary employees, etc.

Smaller apartment deals (duplex) will kick off law of first deal.

Don’t need $30K to do first deal. Spend on education and raise capital and/or find deals in this seller’s market.

Controlling time is most important resource. Don’t put ladder on wrong building.

Visit www.themichaelblank.com to download free ebook about raising money for MFH apartments.

119 – Dissecting my Recent Insurance Claims with Ed Babtkis

YouTube Link: https://youtu.be/_q1CV–qhBg? sub_confirmation 1

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________

Revisit Episode 38 for insurance fundamentals.

Two recent claims broke the straw on the camel’s back for single-family homes.

Water claims has a lot of denials and payments.

If homes built in 1920-1960 and pipes haven’t been touched, chances are pipes are leaking.

Leaking –> cracked pipe –> pipes burst.

If property vacant, pipe leaking, and in cold weather environment, house needs to be “winterized.”

Establish pre-existing condition by taking before and after photos – especially if pipes in good condition when you purchase.

Defining cause of damage always murky.

Recoverable Depreciation = amount of money you get as long as you do the work.

Tenant in Episode 80 went AWOL and trifecta of theft, vandalism and maliciousness mischief.

After before and after pictures, frame claim with timeline of problems – ensures claim happened during policy period.

Ed runs Ross Diversified and insures nationally, such as investment properties, NPN, foreclosures, fix-and-flips, and more.

Best way to contact Ross Diversified: 1-800-210-7677 and/or Bruce Young at byoung@ross2.com.