Daniel Goodenoughis the author of the recently released book of fiction, The Caravan of Remembering, A Roadmap for Experiencing the Awakening of Your Life’s Mission. He has been a professional musician, research scientist, and graphic designer. In the past 30 years, he has taught thousands of students through The Way of the Heart program to discover their authentic life’s path, and to walk that path in the world. Recently, he has beenconsulting with companies to help them do business differently, responding to the today’s changing business environment with mindfulness, integrity, and heart.
Trapped in his life as a designer in Chicago that is both meaningless and safe, David hears a call he can’t resist to enter Caravan, a timeless, mystical world where he travels with mentors and other seekers to find his life’s meaning. Tools for the journey, including journaling and immersion in life’s story, are embedded in this rich tale, grounded in the author’s 30 years of working with life mission seekers. A series of questions in the back of the book helps readers apply what they’ve learned to their own lives.
The Caravan of Remembering: A Roadmap for Experiencing the Awakening of Your Life’s Mission.
What is life’s mission, and why is it important in our lives?
How can we can discover our authentic life’s mission?
How can we answer the questions: “What did I come here to do, embody, and serve? Why am I here? Who am I called to become?”
How can becoming aware of our life’s mission help us to make better choices in today’s changing work environment, where young people may have up to 16 different careers during their lifetime?
How can we conduct business differently, with mindfulness, purpose, and respect for each other and the environment?
How can new ways of doing business actually lead to greater financial success? (Daniel has examples of this.)
DonorsChoose.org was a little slow (and ~$200 of fees) the goodies arrived!
My students need supplies to support our Choose Love movement, a social emotional program that teaches children how to choose love in all different situations. We need clipboards, pillows, answer buzzers and much more.
My students are active, fun loving and excited to learn. They love hands on activities that allows them to engage in building and teamwork with one another. They come to class ready to learn and are eager to share their ideas with each other.
We continue to work together to build a community within our classroom that encourages each other to grow and learn from one another.
Its important that all students have a voice and that we as educators understand all of our students needs. We promote a learning environment that builds a culture within the classroom of love and understanding through learning. Every year I am blessed to have a loving and engaging group of students that encourage me to keep learning along side of them.
Our school is focusing on our Choose Love Movement this year. This social emotional program is encouraging students to choose love in all different types of situations. The program focuses on 4 components, courage, gratitude, forgiveness, and compassion. With the materials from this project, I am creating a Choose Love corner for my students to use as a space to express themselves honestly with no judgement or fear.
This Choose Love Corner is helping to “cultivate optimism, resilience, and personal responsibility” in all students.
I really want to encourage my students from an early age, a healthy way to express their emotions. A main focus of the corner will be the rug where students can take their Choose Love journals and share about anything they are feeling both at home and at school. The emphasis of the rug is also about different traits that I am hoping to instill in my students as well. Many of the items will be used by the students to make them feel comfortable sharing things in their journal that they may not feel comfortable talking about.
I am hoping that if we can teach students from an early stage and provide them with the life skills of coping with situations, it will continue to encourage a happier and stronger learning environment for all students.
SPC followers are typically younger than 30 or older than 35. My observation is that when people have kids, that takes all precedence.
Launch 2019 with a 50-minute goals brainstorming session.
(we will not be talking real estate investing – the second half of the presentation will be our 2018 Quarterly recap – this will likely take us another hour… please stay if you can or listen on slient)
Here is the editable worksheet to follow along link
Time: Jan 5, 2019 9:00 AM Pacific Time (US and Canada)
The group coaching is something that I have been trying to put together a couple years now after I accumulated a lot of content and got a feel for coaching students these past few years in a one-on-one setting – see SimplePassiveCashflow.com/coaching
I’m code naming this project, “The Journey to Simple Passive Cashflow” and it will consist of:
1) 27 weeks of curated content with concepts building on top of each other
2) Participants go through those modules together and are able to interact on the Bi-Weekly Call and the Private Facebook group in a “group study” environment
3) Bi-Weekly hour power calls switch between the topics of a) Acquiring you direct investment and b) more high-level wealth building concepts and syndication education
It’s going to be a really cool format where people take the journey together. Think like a Fraternity/Sorority without the weird stuff. When I was going through programs it was most beneficial to connect and climb the ladder with quality people. Who knows someone of your Cohorts might do a deal together or become lifelong friends or accountability partners.
Current investors in past deals let’s meet up when you are in Hawaii. Non-investors you can still kick it with Lane
The Hui Deal Pipeline Club is a free investor club where I filter investments and underwrite the numbers and partners myself. Unlike other investor lists and groups, my investors have personal access to me and know that I personally have skin in the game investing alongside with my investors.
We have acquired over $155 Million dollars of real estate acquired by syndicating over $13 Million Dollars of private equity since 2016.
Track Record of success:
15 Apartments Buildings Purchased, 2 Manufactured Home developments, and an Assisted-Living Facility
2,100+ total units
10 US Markets – AL, GA, IN, OK, LA, IA, TX, WA, PA, MO
Started investing in 2009 – 9 years of experience
Countless Mastermind and Mentorships in the Live & Virtual clubs through the education platform at SimplePassiveCashflow.com
2,600 investors and 100 new Kool-Aid drinkers every month!
Erin Lowry (https://brokemillennial.com/) is the author of Broke Millenial, a book about how to stop scraping by and start getting your financial life in order.
She talks about how she learned about finances at a young age, how she gave up her dream school so she could live her dream life, and how living in New York inspired her to write her book, Broke Millenial.
“Invest your spare change,” may be a catchy line but you really can’t invest your spare change to wealth. It has to be more than spare change.
In the financial world, you are above nothing. Just because you have a college education doesn’t mean that is your way out of financial difficulty. You also need to be prepared to take non-professional jobs or jobs that might be below you.
Just like in any financial goal you have to figure out how to take a high-level idea and break it down into smaller parts. Think of whatever your long-term financial goals are and work backwards to break it down into something that is actually more achievable. A lot of people in their early twenties have beautiful, lofty dreams but no tangible steps on how to get themselves there.
Podcasts are great sources of information.
Saving is important but earning more is bigger. To earn more is a key part of building wealth.
The biggest thing when it comes to feeling in control of your money is that you have to identify what you truly value. Don’t allow other people to dictate where you should spend your money.
Summary: Pay a 30-year mortgage in 5 to 8 years by paying back your mortgage with simple interest instead of amortized interest.
I recently discussed this in my Forbes article here.
Is this something new?
We all know it’s a sellers’ market, with the lack of deals out there and the majority of the Simple Passive Cashflow Podcast listeners looking for something to invest their cash in. Good times, if you ask me. This strategy is nothing new but now the strategies that are, “trending,” like bell bottoms, tights, and neon colors but forgotten. One of these old plays from the playbook is called the Mortgage Equity Arbitrage Strategy also known as, the Australian Banking system.
First off, let’s talk about good debt versus bad debt. Obviously, an 18% interest rate paid on something like a credit card is bad debt. But taking a 4% HELOC (Home Equity Line of Credit) or loan from your life insurance policy can be good debt. Especially, if you are putting the loan proceeds into AHP at 12%, a MFH Syndication at 20%, a Turnkey rental at 30%+, or another higher risk syndication at 35%+. Just don’t buy jet skis or other doodads with the money… I don’t know why it’s always jet skis as the example. Maybe something to do with the fact that it is a mini-boat, and boats are known as the worse purchase known to man.
What you do with the liquidity from the debt is what really matters. Traditionally, it has been good to go into debt for a college education paying 4-8%… unless you are getting a glass blowing degree… or maybe a psychology degree so you can trick yourself into thinking college was worth it… or Asian studies degree because you are going to have to get used to ramen noodles in your adult life… or a Communications degree to be able to spin your financial reality. Ok I admit, I had a pretty depressing college experience…
You will leave this event changed – as silly as it sounds “things will never be the same”
This event will be held in a smaller venue (12,000 people) which I was really excited about when I was planning this because it is a lot better environment than the normal sports arena setting where everyone is captive in their rows.
You get to walk on burning coals!
Learn more about the event here – note the LA event is not yet listed
Details are still being formed but we will likely get upgraded one or two levels if we come in as a large group.
I am also arranging for a Monday decompression meeting to connect with other investors who attended from the Hui.
This event is more for personal development than investing. But it is certainly investing in yourself! After all… getting the passive cashflow is Simple but what you do after is the hard part.
I don’t personally guarantee investments because of course there is always a risk but I WILL guarantee your ROI if you come to this event! Call me and I will share my experience.
After going in 2016, I made these goals in 2017. Some of which happened so of which I overshot.
Less urgency with more systems
Barriers- peers around to do the same things,
What needs to shift what actions… Deciding how to do this
Why will you live in a beautiful state everyday no matter why?
Life is too short It is a slippery slope backwards In the end a beautiful state is what we are after anyway not money, house, job or relationships. I have control over this… Potential => Actions => results => belief/concerns
Flavors of reaction:
Three things that cause suffering the fear of 1) loss 2) less 3) never have something
Suffering => appreciation => joy
You will make more money if you are in a better state.
Two things that I did to start investing to go bigger – 1) started something that could be better and connect with others and build a platform to have larger impact. I made small changes and found models and copied and got around the right people and slowly built 2) started paying to learn
So you are in!
Preparing for your first Unleashed the Power Within Seminar:
1) Come with an open mind.
2) Make a list of a few limiting beliefs. Everyone has these. Some common examples are I am not achieving what I want because… (I’m to young, too old, never went to college, a woman, I’m brown, I did not come from money). These are the things that subconsciously hold us back. What are limiting belief’s here are some softer examples and they range to not being a certain race, not having the right education, not being tall enough, to not being good at math.
3) Prepare to tackle your biggest, hairy, huge goals.
4) Tony will bring it. He drops the F-bomb a lot. Mostly for shock value as again it is entirely on purpose. Note: he gives free tickets to some troubled kids and he tries to speak to a lot of the kids in the first few minutes who likely have never have heard him before.
5) Prepare to dance your ass off. Even if you can’t dance/hate to dance/have no legs… You will still want to dance. Get in that “puppy pit”. For goodness sake… Live like you don’t give a fuck. Get comfortable with being uncomfortable. Dance because if only it is you trying to do something different.
6) Joseph McClellan will speak on day two and day four. He is a good speaker too. This is not a 5k seminar so you do not get four days of Tony… Its a fraction of that.
7) Be prepared to show up early and go long. Like 8 am to 2 am long. Stay as close to the convention as possible it will be crazy leaving when everyone else does. Don’t try to skip out. If you are getting tired you are letting circumstances control you instead of your leading your state! It is often in the moments when you are close to your limits that the biggest breakthroughs happen, so don’t sell yourself short.
8) Firewalking is real. I thought it was a party trick when I did it and did NOT get into state. You can do it and you will remember it for the rest of your life. This will be trumped by day 3 transformation evening showcase.
9) Taking your spouse or buddy? It’s good that you will be on the same page when you get back to real life but consider not sitting together for part or all of the seminar. There is a lot of value to connecting with others there and getting outside of your normal conventions. Don’t be afraid to talk to some people. Volunteers, there are a wealth of information about what’s coming next and what to do. You can be your true self when you don’t know the other person as they don’t know you or have any expectations of who you “should” be. Here is what the staff told me “It is highly suggested, but not mandatory, for family members, friends and colleagues to not sit with each other. We find it that you end up “playing full out” with strangers than with people you know.
10) I would take notes and more importantly brainstorm action items and implantation plans.
11) Drink the kool-aide. Be all in. Dance, scream, visualize. Show up on time and stay till the end. Get your money’s worth. Do it! It’s worth it.
12) Tony is on another level in terms of hypnosis that makes NLP obsolete. Go with it.
13) Try to sit in the aisle so you can mix and mingle. This makes it easier to run out for a quick bathroom break. You will have to be in there a little earlier like 30 minutes scheduled to start. Also, try and find the bathroom that no one uses for quicker usage. don’t wash your hands it’s faster… Jk.
14) Read/listen to any of his books or audio program
15) Check out what is on YouTube e.g. his TED Talk
15) Watch I Am Not Your Guru on Netflix
16) Six Human Needs and Triad are the core of his work you can learn more in his TED Talk or on his website
17) If you’re not in the right state, not getting it, not feeling right etc. ask any of the leaders and trainers for help, they are amazing resources and have been through it so many times before so have seen, heard and experienced it all before.
18) Subscribe to UPW Facebook group for the event
19) On day two make a list of things you will Stop doing
20) You may not want to commute to and from the event as the event starts early in the morning and end late night. The first night may end after 12 midnight.
What to bring to the Seminar
1) A heavy jacket or even blanker – Tony keeps the room extremely cold on purpose. It’s all part of his magic. Embrace it.
2) You will be jumping for hours. No heels or dress shoes. The only type of shoes you should be wearing are tennis/keds/flats/basketball shoes. Most people will wear causal or gym type attire.
3) Don’t just bring snacks. Bring meals. I’m talking fruit, nuts, hummus, veggies, crackers, granola bars, etc. If you don’t, prepare to race 10,000 other people to be in front of the food line. Post-mates/Uber eats can be a good healthy option. If you are so compelled fast for the four days – and start the literal cellular autophagy – as you will learn the pain is all in your mind!
1) Give yourself a couple of extra days after the event to catch up on sleep, decompress, review your notes, absorb and process what you learned and make a plan for how you will integrate changes in your life. You will be tempted to plan to rush back into “life” straight afterward but to allow yourself to recover and to successfully integrate your learnings you need to give yourself a little time. There will be some discussion on this on the fourth day.
2) Stay tuned… I will plan an event Monday morning or Sunday evening.
Outside food and beverages are not permitted in the LACC Center with the exception of sealed bottled water and sealed light snacks. Light snacks include single-serving items that would be consumed by one person. For example, granola bars, protein bars, bags of chips, crackers, beef jerky or whole fruit, etc. Empty refillable water bottles are permitted and can be refilled on the main concourse at LACC Center’s drinking fountains. Coolers and grocery bags are not permitted in the LACC Center.
Between 2010 and 2017, population growth averaged 5.5% for the US as a whole. Delaware boasted the highest growth rate, 15.3%, over these years. A state with a relatively small population, however, needs fewer new residents to achieve such a high growth rate. The double-digit rates recorded by Texas (up 12.6%) and Florida (up 11.6%), both high-population states, are therefore that much more impressive. There were three states that posted population decline between 2010 and 2017: West Virginia (down 2.0%), Vermont (down 0.3%), and Illinois (down 0.2%). – ITR – 19.02.28
Since I feel we are in the 9th inning of an 11 inning ball game, I decided to pass on a recent Class-A apartment deal in a secondary market.
Here is my thought process…
First off, Robert Kiyosaki has a saying: “There are three sides to a coin.”
People like to argue that it is either a good time to buy or a bad time to buy. For example, they say that “MFH” is overheated or commercial is getting killed by Amazon and e-commerce. I think these are mental justifications by tire-kickers who are scared to act. I mean really how many of these people are under the accredited status (not sophisticated) or not obtained their “Simple Passive Cashflow number.”
Sophisticated investors still trying to grow live on the edge of the “coin.” They buy deals out of the reach of amateurs due to the amateurs’ lack of network/knowledge. These opportunities are undervalued, with undermarket rents, with value-add opportunity. Sophisticated investors are patient; they don’t stray from standards that force them to get crushed in a market correction. (Cashflow from other investments makes this possible.) They invest following the macro- and micro- trends and don’t gamble on gimmicks such as guessing where Amazon’s next HQ is going or where the hurricanes just drowned a market.
The trouble is that an unsophisticated investor or an outsider (in terms of having a poor network) is figuring out which of these deals transcends the two sides of coin and is on the edge. Stating the obvious (though often ignored by many)… starting out as an investor is going to be slim-pickin’s due to the lack of network. But you have to push through this rough part. You are not able to decode the noise until after a few deals or having someone mentor you.
With that out of the way let’s continue…
Real estate is one of the best risk-adjusted investments out there. In private placements or syndications, we are able to crowd-invest in larger & more stable assets while maintaining control with operators who are aligned in our best interests. By going into a project properly capitalized with adequate capital expenditure, budget, and cash reserves, you are able to remain steadfast through softness in the market where rents stagnate and vacancy decreases.
(If you are starting out you should start with turnkey rentals even though they are much more volatile)
Pause there. In troubled times what happens?
People lose their jobs and there is a bit of shuffling.
Yea, people need housing, but there will be some vacancy as some people will lose their jobs and be displaced elsewhere.
Following this train of thought…
In a recession, the high end or class A will be hurt the most. It is Class A workers who fulfill much of he discretionary services. We are already seeing softness in rent by rent decreases in class A of the high-end markets such as Seattle and San Francisco.
For example a once $1,700 one bedroom is now $1,625.
Most deals model for 1-5% in annual rent increases or escalators. Other than the Cap Rate to Reversion Cap Rate truck, this is the second most manipulated assumption in investment modeling.
In this unfortunate but natural event, the A-Class renters will fall to class B housing. Some homeowners will even lose their jobs creating foreclosed investments for smaller investors in the single-family home scale.
What’s happens to the B and C class renters?
It is likely that they will also lose their jobs at higher or lower rates, but that is up to debate. In the same fashion as the A-Class renters, the Class B/C renters will downgrade to make ends meet.
I imagine this similar to a game of musical chairs (where the chairs are getting crappier and crappier). Or it looks a lot like the natural housing shuffle in the summer near colleges with people moving in and out. The landlord/investor is likely to see increased vacancy.
Multifamily occupancy varies from 85-95% in stabilized buildings. Some markets are hotter and some are colder. It is important to use the correct assumptions depending on the markets. For example, Dallas typically sees 92% occupancy while Oklahoma City sees 89%.
One of the reasons we love multifamily is because of the decline of the middle class and the need for more scalable workforce housing. [And those millennials can’t save] The population is increasing too.
[I like to use this image cause I make fun of millennials… this is the millennial version… cause they can’t seem to afford (or want) to own anything]
When I travel to Asia (which I see as a more mature society, for better or worse) there is a much larger wealth gap than in the USA. People are living in cramped apartments or very rare single-family homes. And they are driving a Mercedes on barely enough money to share a family moped. This is the trend that the USA is following.
As with many things, you need to look past the headlines and the general data. Instead of analyzing a whole asset class, as the media likes to do, let’s break down vacancy in terms of classes.
Here are some typical vacancy rates (notice the spread).
Class C 4.5%
Class B 5.0%
Class A 5.5%
Why? Because there is just more demand for the lower class properties cause there is more demand than supply.
Many times the business plan is the be the “best in class.” For example, businesses want to be the best mobile home park or best high end remodel because you attract the richest customers in that niche.
I like to monitor the number of new units coming online because that is your downward pressure. It is rare that new builds are for Class C or Class B.
The micro-unit trend is an attempt to build for Class C and B tenants due to the need. But often the numbers don’t make sense when you have purchased the same building materials and mobilized the same crews to build a Class B asset as opposed to a class A asset.
Let’s go through that Armageddon example again.
Class A will have to drop rents severely and see great vacancy.
Class B and C will see vacancy come up too as people are losing their jobs but should see some absorption from ex-A Class tenants.
Mom and dad will also see some absorption as deadbeat son or daughter move back home.
Shows like Friends and How I Met Your Mother will go on for another decade.
Note: one can argue that class A+ will not be affected at all which I believe is true. That’s why we are trying to invest right to enter that untouchable status.
I remember when I sat through the same economic presentation at work from 2010-2014. The sentiment at the time was that it was going to be an extremely slow recovery. It makes sense that the length between the 2008 recession and now is very long which is why I mentioned an 11-inning ball game.
This is why I took a set back from some pretty Class A deals because I asked myself the following questions:
1) What will happen to the rents if IT should happen?
2) Is the modeled 90% vacancy rate going to get blown up?
Class B and C apartments in strong submarkets will perform best over the long term. If you ensure the loan term is long enough so you don’t get hurt then you should Outlast the bumpy ride ahead.
Beware of the self-destructive behavior of not investing. You know what I mean… are you someone who self-sabotages?
Understand the micro and proceed if the numbers make sense.
I have to admit Class C and B assets are boring but work especially in a seller’s market because 1) they cashflow and 2) have a forced appreciation value-add component to give you levers to pull in tough times.
Again going back to Mr. Kiyosaki’s three-sided coin quote, investors go through three stages.
Stage 1: Go into MFH… Duh (I did well at single-family rentals let me try apartments)
Stage 2: Be a contrarian investor so go into other asset classes most decent investors are afraid or don’t even know about
Stage 3: Do special projects such as Affordable house taking advantage of tax credits or specialized operators (ie take abandoned big-box space like movie theaters and convert to the latest consumer needs)
Experienced investors who were in the downturn in 2008 say its interesting that the sentiment in 2006 was exuberance that it was going to keep going up. Now in 2018 the sentiment is fear… This is a good thing.
Remember that in this market we still have:
Historically low-interest rates
Historically high rent increases (not 8% anymore but still 2-4%)
Historically low vacancies
Things to monitor if you really need to geek out on numbers:
2 and 10 yield t curve. When that crosses you have just-a matter do time. Because its a measure of fear.
Automation and AI – huge shifts in jobs. People need to work but technology has been increasing since the beginning of time.
Bankers prospective: how deals are getting funded and by who (institutional or dumb capital)
There is a saying out there that real estate is location specific. However, when I invest in more stable asset classes its a National market based on the economy both USA and international. When you invest in a micro-economic fix and flips then its location specific. When you invest in commercial assets it’s with more stable tenants and based on the aforementioned larger economy.
How affordable is rent really? – “During the same span, median effective rent nationally has risen by about 26%. That rent appreciation pushed the median monthly rent nationally to around $1,220 per unit to end 2018. With the US median household income being just over $62,000, this rent accounts for 24% of monthly income. Using the typical benchmark of monthly rent being 30% of monthly household income for affordability, a margin remains for renters.” – [If you stick to using 2% and under rent growths and stay away from Tier I or Primary markets you should be fine] – ALN 19.02.24
A lot of people point to the Yield-Curve as a big indicator. In the end, I do believe that real estate will go down because of consumer instability. But if you have stocks you should sell those before even thinking of lumping it into cashflow type rental real estate.
“The guy not investing right now and hoarding cash (with net worth of under $1M… because if you can live off your cashflow then cool you can do what you want) is just afraid and lacks deal flow. Its like the person who complains that there is nothing to do during the weekend in LA (insert city with a vibrant scene) when in actuality they don’t have any friends (lack dealflow)… and by the no one likes (has a bad attitude and that person who makes excuses”
Doomsday theory: Everyone talks about national debt but we are far far behind debt to GDP ratio that of Japan. When Japan hits the wall lookout. Her is my theory… watch out post-Japan Olympics when they have to let loose the belt (after a holiday period of excess calories). Leading up to a period where Japan has to save face while they are in the Olympic spotlight (and I’m not being racist cause I am Japanese and it is a thing). I don’t have the latest data but Japan is at around 250% where the USA is at 100%.
Household debt KPIs: student debt, car loans, housing debt. Which is why I like these assets that are used by the poor and middle class! #RenterForever
Lane’s theory: I’d rather be in deals that cashflow today that do better in a recession like Class C and B assets. Say it cashflows a 8%.
The guy who is stilling on the sidelines with the “hoarding cash” mindset will lose because they will make 0%.
I, on the other hand, might dip from 8% cashflow to 4% cashflow. On paper, I might be in a market with compressed cap rates but hopefully, I have forced appreciation potential if I really needed to sell – the counter move is to get 8-12 year debt to effectively bridge you to the next side of the market cycle. In the meantime you cashflow 4% which is 4% more than the “hoarding cash guy”.
In addition, remember back in the 2008 crash. 2009-2012 people did not know if that was the bottom and it was so hard to close deals in that Phase IV (see below). “Hoarding cash guy” in 2009-2012 and the few years after the next recession will likely be in the same clueless situations.
Wouldn’t you like to be in solid Class C and B assets that continued to cashflow?!? 4% x 4 years is still 16% ahead!
Now if you are “hoarding cash guy” with no deal flow then I get it. Saving cash is the best thing to do for the guy with no deal flow or does not know how to run the numbers. I guess everything does suck.
[Investors are chasing for decreasing yield these days] – REI.com – 19.03.4
[Sophisticated Investors know interest rates and caps go up and down together and their money is made in the delta between the two] – REI.com – 19.03.4
Of course, all the Pro-Apartment publications will say this: Get Ready: Recession-Proofing An Apartment Portfolio – National Apartment Association 19.03.7
To join our Hui Deal Pipeline Club and stick with the group join below: