Investor Letter #1 & My Journey to SPC
2018 Q3 @$5,400/Mo
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Getting frustrated at W2
What are we talking about “Metric?”
What I don’t like about engineers
New Podcasts & Articles:
- My 1st Forbes article: How To Pay Off Your 30-Year Mortgage In A Fraction Of The Time – https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/07/how-to-pay-off-your-30-year-mortgage-in-a-fraction-of-the-time/
- These past two podcasts drive home the point that you need to make money somehow to put into passive investing. As explained here Buck Joffrey – What is the formula to Wealth? – https://youtu.be/EI718_LBdC8=
- 115 – Flipping to passive rentals with Mark Ferguson – https://simplepassivecashflow.com/podcast-115-flipping-passive-rentals-mark-ferguson/
- 114 – Turning Active income into passive income in a Primary market with Jennifer Beadles – https://simplepassivecashflow.com/podcast-114-jennifer-beadles-turning-active-income-passive-income-primary-market/
- HELOC Downloadable Cheatsheet
- Jay Papasan – Author of “The ONE Thing” – https://youtu.be/4K4VFnGpfJo
- Backwards Engineering Happiness: The Needs after the Simple Passive Cashflow – SimplePassiveCashflow.com/happy
Not ‘Faux’ News [Lane’s Real Talk]:
- May Yardi Report – Link – U.S. multifamily rents rose $4 to $1,381 in May. This represents a 2% year-over-year increase but a 50-basis-point decline from April, as new deliveries took a toll on occupancy rates and growth.
- Syndication chart – https://drive.google.com/open?id=19hLpGJnaHzFs5YfiWiBK30Bc3jk1zFa8
- Syndications comparisons – https://drive.google.com/open?id=1p3OpRBrIHQVPVT1VEQpLZ_rszMCRqnRz
- Syndication cartoon video (for those visual learners) – https://drive.google.com/open?id=19_DD4uWbj8vkutJMmi5r2Qw7sKR-R7fD
- Homeownership very slightly goes up to 64% due to younger people [finally moving out of Mom/Dad’s]
- Apartment construction starts not yet slowing [I am watching for deceleration – seems we are in steady velocity state]
- The first big rollback of Dodd Frank [I don’t really know what huge impact this makes yet]
- The Fed will likely raise rates in June and again in December [They are always been saying this]
- Amazon top candidates
- https://www.metroatlantachamber.com/resources/most-popular/fortune-500-fortune-1000-in-metro-atlanta [Fingers crossed since I have half of my Altanta SFHs to sell]
I don’t care about politics but lets understand what’s happening…
Everyone saw Trump shaking hands with KJO from North Korea
For nearly 20 years, U.S. foreign policy has been dominated by military campaigns in Iraq and Afghanistan.
Fighting two wars made it necessary to make deals with other nations to secure key strategic military placement (ie bases in Turkey).
Everything is connected and when you become aware of this the world’s events make sense.
Turkey attacked the Kurds because they knew the U.S. would value the air bases in Turkey over supporting the Kurds.
Russia annexed Crimea because they knew we wouldn’t intervene militarily (Obama would not send more troops).
China built island naval bases in order to expand their military presence.
When the cat’s away the mice play…
Seeing the end game, Russia seized Crimea because they correctly calculated that Obama would not put U.S. troops into yet another battlefield.
Trump’s policy is more independent and less reliant on other countries.
When Saudi Arabia recently petitioned the U.S. for military support, Trump told them to pay for it.
When the UN voted against U.S. agendas, Trump told them that the U.S. would review the support and money it gives to countries that consistently work against the U.S.
One could describe this as hardball. It works in a lot of real estate deals when the winner is the party that is willing to walk away first. Who knows if it will work in world politics???
Right now the US economics look good and rents continue to raise at a steady pace (although not expected to mimic the growth in 2014-2016).
Although we all shake our heads at stories like this…
“allow … borrowers to have FICO credit scores as low as 500 … can take out loans of up to $1.5 million … can also do cash-out refinances … up to $500,000. Recent credit events, like a foreclosure, bankruptcy or a history of late payments are acceptable.”
Other stories remind us of the big picture…
“Community banks, which enjoy broad support among Republicans and Democrats, will be freed from Dodd-Frank’s mortgage rules if they make fewer than 500 mortgages a year.”
This unraveling of Dodd-Frank with make lending easier, which is awesome for real estate investors.
Hacking my 6 needs…
- Growth: Revamped my messaging to you. I will start doing these monthly tailored messages.
New initiative: Per the advice of my new health advisor (who said “my VO2 max sucks”) I an starting the day with 5-10 rounds of high intensity calisthenics to get my heart rate over 140 bpm. This should be done in 5 minutes and continue in the fasted state after. Recently I paid for a health MD. It’s cool because he took my blood biomarkers, did a DNA sample, and gave me a supplement plan. We get together and chat about how things are going with Dex scans and VO2 max readings (think Gatorade commercials with Lance Armstrong with the mask on while biking). It cost a couple thousand dollars but I figure it can’t hurt. Your health is wealth. He sold me when he said “MD’s are normally idiots” (He is an MD himself).
Morning time supplements:
Vitamin D3 – 5000iu
Omega 3 – 2g
Vitamin K2 – 1g
Alpha Liponic Acid – 1
Multivitamin – 3
DHEA – 1
CoQ10 – 1
Zanthosyn (Astaxanthin) – 12mg
Anastrozole – 0.5mg
Evening time supplements:
Melatonin – 3mg – PM
Zinc Magnesium – 2g
Zanthosyn (Astaxanthin) – 12mg
2. Contribution: I interviewed four candidates for a job. I don’t know if I will work with any of them but I feel like I definitely helped them get where they need to go. Apply here.
4. Uncertainty: Doing a syndication in a new area in a new partnership. Finishing up two flips (38k & 21k) in Atlanta and will put on market $oon.
5. Certainty: I got bonus depreciation on my K1 and got first distribution checks from Syndications per plan. Also got paid back on a 2nd lien private money loan I did on a flip. And replenished money back into investinahp.com right before the 12% fund closed. A lot of my deals are starting to get cashflow now.
6. Love/Connection: Helped out a few people locally at my meetup get out of a tough legal situation with a lawyer referral. Hosted a mastermind meeting with like-minded people. We had whiskey it was good fun and I think I will continue. I realized part of the reason I don’t like my W2 job is that I am surrounded by W2 mindsets and I too am a product of my peer group.
What I need help on: More time – need to add staff or I will just continue to be a super employee of one. Join my team!
#LaneHack – I use a lot of Gmail inbox labels. Here are some great suggestions in this article.
I especially like the one about filtering all emails that have the keyword “unsubscribe” which are likely to be things trying to sell me things.
It’s not all about Money:
Flowstate – Song of the month – Avicii Bromance – Avicii died this past month 🙁 – Sign up for the Club to download 😉
Be ready for the best sunset and sunrise captures: https://sunsetwx.com/
Join the club and find out what the easter egg is…