What Success Means to Lane Kawaoka

Hey simple, passive cash flow listeners. Today, you’re going to be hearing a pretty good interview that somebody had done on me and just, something that’s been going on in my life is looking for purpose, financially free so early, like many of you, you start to ask the question.

 

After when is enough and putting your job, that’s always a big problem. It’s probably the next topic we’re going to be talking about in our family office, Ohana mastermind group. But you guys can learn more about at simplepassivecashflow.com/journey, but no, once you’ve pulled anchor, burned the boats and you’ve gone FI, you’re living off your passive cash flow streams. And things are coming easy, right? Time is more valuable than money. At that point, you just start to spend money on time and you start to ask what is the meaning to all of this? From one perspective you got Maslow’s hierarchy of needs.

 

Trying to get whatever’s at the top of that, which is typically growth or helping back to other people’s, but really what is it that’s making you happy? And I’ve been working, and hired a life coach. We’re working on this every single week. And I’m hoping to bring a lot of the lessons that I’m seeing and getting from myself to you guys, especially to my inner circle out there.

 

I’m definitely not going to turn this podcast into a guru kind of Uber boogie type of podcast. We talk about mindset all the time. But it’s definitely gonna be interjected there. And from what I see, if you know where you’re going, you can do the straight line to get there, as opposed to, I feel like I’ve taken a very Securitas road to get here, even though it’s been maybe about a 10, 15 year journey, for example, I probably wouldn’t have bought as many single family homes.

 

Maybe we just bought a handful and then went off to the syndications and private placements quicker. And maybe who knows where I would be today. But, this is really like the next level, right? What is simple, passive cash flow supposed to do? It’s mostly get people financially free to get what they want, get the design, the lifestyle that they want, and this is where it finally comes in this piece where, you know, fulfillment, what is happening, what is in the happiest different for everybody, everybody has a little bit of a narrative kind of what we’re unpacking, going through these sessions, which is like therapy, but a little bit more of a mission standpoint. I see myself as a little bit of Robin Hood here where stealing from the rich gives to the poor, but instead of icy stealing from like the big wall street company.

 

Which kind of duped everybody into putting your money blindly into this type of stuff where you’re going to have to work for 30, 40 years where I’ve seen and proven myself that you can get there five to 10 years or less by prudently investing in cash flowing value add type of projects. Now what they also thought, the Robin hood, and as you also go sideways because it’s not like giving money to the poor.

 

The poor are, what I see though, are the victims of this is you, the working shrinking middle-class, the people who are making a hundred, few hundred thousand dollars a year. You are still living paycheck to paycheck and you’re paying the most taxes out of everybody. It’s not the wealthy, it’s not the people who have already gone to the tax page at simplepassivecashflow.com/tax, and read up there and already, churning, passive activity, losses, doing rep status that’s what the wealthy do, but that’s not the you, the middle-class are doing. And it’s also not the poor people who are paying their fair share of the taxes, it’s you out there. And that’s why, to me, the way I’ve put things in my head is, I’m Robin hood taking money off wall street, putting it into main street type of projects.

 

And in the process, you guys pay less tax. And get financial wellbeing because unfortunately the way that the whole system is engineered, it’s engineered to keep all you guys working because you guys happen to be the most contributors to society, GDP. You guys are the ones drilling teeth, doing surgeries, building bridges, pushing a whole lot of important paper around, we need to keep you guys working. Or not me not, I’m not saying that I’m trying to keep you guys working, but the society’s needs you to keep working, to empower the rest of humanity for. Now you might want to call that some kind of conspiracy theory or maybe call me  Robin Hood, but that’s just something I’m unpacking for myself as the narrative.

 

And everybody needs to find their own narrative out there. We’ll talk about this in future podcasts, but today’s podcast is surrounding a lot of this philosophy stuff, which has been interesting to me. And so hopefully you guys will get some value out of it. If you haven’t yet joined investor clubs that’s simplepassivecashflow.com/club and once you’ve done that, we hook you guys up with a feed complementary strategy call of 15 minutes. And yeah. Hope to reach out, to talk to you guys soon and enjoy the show.

 

Hi, thanks for joining us today on the success podcast. I’m your host Phil Portman. Joining me today is Lane, owner of 7,500 rental properties with over a billion dollars in assets@simplepassivecashflow.com. Thank you for joining us today, Lane. Hey, thanks for having me aloha everybody. So let’s start off with the title of the podcast is success is so what does success mean to you?

 

Success to me is being able to have enough money. So money is a big thing for a lot of our folks. It’s not everything, but it should make your life a lot easier, give you options, what does it allow you to do to me? It gives you the freedom to do what you want, where you want with whom you want.

 

No. So you don’t have to interact with people that you don’t like, or people at work that give you problems. You work on your own terms and you get to tackle the hard problems in life, but what do you do after you’re financially free? What do you do after you’re done trading your time for.

 

And do you have things that you pursue now that you do have the financial freedom to do so that you wouldn’t have been able to and in a normal traditional job? Yeah. Today it’s a little different than most folks, right? We just keep picking up apartment buildings after buildings, because I’m here to create generational wealth for myself and my family.

 

And, on the side product of doing, the website and the podcast is that we teach people how to get financially free, doing this and just dispelling a lot of the stuff that misled misleads, a lot of hardworking professionals out there, myself. And go to school, study hard, get a good job, invest in your 401k, buy a house to live in, pay down your debt, all that type of stuff that the Susie Orman, Dave Ramsey advice doesn’t necessarily apply to once you become financially responsible and get to financial freedom. I love what you’re talking about there, because I think a lot of people have this mindset.

 

You know that they’re going to enjoy success later on in life. They’re going to enjoy it and retire, and this idea that we can save for our future and invest, and that we’ll be comfortable with just the money that we’ve squirreled away and saved is not true, more and more Americans are having to live below their means in retirement.

 

Then. And so what you help people do is break that generational mindset and create wealth. Is that correct? Correct. I think we live in an engineered society where everybody’s taught to put their money into the stock market, wall street, marketable securities, or what I call retail products.

 

And I say it’s retail because these big washy companies are making a boat load off of your back out there. I got started early with this real estate, graduated college in 2007, with an engineering degree, went to work as a construction supervisor, which isn’t the greatest of jobs in terms of quality of life.

 

And I followed this path of going buy a house to live in because that’s what everybody told me to do. Got off the beaten path by renting it out. And then I realized I’ll make it like 20, 30% plus returns on my money. Why doesn’t everybody do this? I’m going to just rinse, wash, repeat this and that.

 

But then, I discovered, yeah. There’s a whole bunch of other passive real estate investors doing the same thing and being able to retire within five to 10 years, do it. And the thing is it’s really not that hard and the secrets that the wealthy do that I cannot teach people today.

 

It’s not how to reach out to the average person. It’s just buried by all the financial dogma that you know, our parents teach us and that’s proliferated through the workforce culture, the cubicle culture. 

 

Absolutely. Can you tell us a little bit about your story, your background, how you got into building this empire today and then what did your friends and family think about this?

 

Were they pretty supportive along the way? Yeah. My parents don’t really know what I do today. I just told them I’m a real estate agent and they just a little bit upset me. I’m not an engineer and I wasted all their college and stuff like. But, that’s parents for yearly spines. I walked this linear path, I call it right. Go to school, study hard, get a good job growing up. I grew up in a family where we were taught to be very frugal with our money. We don’t go to restaurants. We don’t eat any soft drinks. But you gotta pay for that stuff, drink some water, no frills type of stuff.

 

That allowed me to save up my money and pretty well from my day job and I made almost six figures starting out. So I was able to save a big chunk of that, to eventually go buy a house to live in, like I said, and I started to rent it out. And that’s where I got a taste of cash flow, right?

 

When you put a tenant in one of your properties, you get a property management company to deal with all your headaches, to deal with all the repairs. And then you just focus on your highest and best use. So for a lot of my clients, High-paid doctors, lawyers, engineers, entrepreneurs, our highest and best use is not screwing around with little rental properties, but to save our money to go buy more rental properties.

 

And eventually when you become more of an accredited investor, get out of rental properties because of the liability and headaches and go to more sustainable passive investments, such as syndications and private placements as an LP. But yeah, that was my claim that my family saved my money pretty well.

 

From 2007 to 2015, I had 11 rentals and then I started to buy apartment complexes over 7,500 rental properties today. I believe there are over 40 apartments across the country. We invest for cash flow.  I’m pretty passionate about it, obviously. Cause I’ve quit my day job and no longer work at that life where I’m trading time for money.

 

So these properties that you purchase and maintain they’re all over the country, then they’re not centralized. How do you run that as a business? Do you do a lot of traveling? I don’t right now. I have a young kid. Try to stay at home with the pandemic and everything.

 

We hire professional property management to be at the properties of, this is why we focus on a hundred unit properties and above, when you have about 60 units and above, you can justify having a full time person at the leasing office at all times, but where you really get good economies of scales up over a hundred, when you can get a, support them with a couple of handyman to knock out HVACs or plumbing repairs, for some people who are rental property owners, they know you get killed with those third party plumbing repairs.

 

For us, we take care of that stuff in the palace, right? So the guy will before his first smoke break of the day with knockout, those types of repairs, so that’s what our business plan is, and they’re scattered throughout the country, but like more clustered red states where they’re more economically driven, better landlord friendly laws.

 

We like Phoenix Texas, Houston, Dallas, and Huntsville, Alabama. It’s our major market we like to focus on. And how’d you decide on those markets? Real estate, it’s not rocket science. It doesn’t take a genius to do this type of stuff. You don’t need a bunch of PhDs, data analytics, you follow where the population growth is going. And the rent increases per year, which is very gatherable data. You could probably Google this at home and we focus on and ingrain ourselves in those markets and I’ll build back management teams, build broker teams. Just dig in and pick those several markets.

 

Other good markets out there like Florida, the Carolinas, Georgia, the general consensus is that Sunbelt states are where it’s at in terms of population growth. And of course you want to be in the red states. Like I said, as the lab, part of that there’s maybe five or six states that I would pick over the rest of the time.

 

So you said as this doesn’t require rocket science, anybody can research these areas and that sort of thing. What’s holding people back? We know more millionaires are made through real estate than any other method that’s holding people back from getting into this. Yeah. You know what? I think it’s hard.

 

Deals and it makes it incredibly easy for investors to get involved with that. You gotta start from the bottom, right? I had money to invest, right? So most people in this world, or this country are really bad with their money. They spend more money than they make, and they don’t make as much money either.

 

That’s part of the problem for a lot of those folks. I can’t help. That was just not the situation where I was, but there’s also a lot of people. Definitely my minority people of this country, like maybe the top one to 5% were good with their money and they make good money and are able to save 30,000 plus a year.

 

Most of my clients save 50, a hundred thousand dollars a year to put two investments. It seems like a lot, but it’s not massive amounts of money. But that’s enough, if you put away that for five to 10 years, you get your net worth over a million dollars you’re you can go F I pretty quickly doing that.

 

Investing in real estate, investing in little rental properties are a little bit more difficult. That was where I started my podcast, teaching people how to buy little remote rental properties. Most people live in California. You don’t want to invest anywhere near your home. Because the rent to value ratio doesn’t make sense.

 

We look for this one little metric called the rent to value ratio  1% or higher. So you take the monthly  market rent price. So like a thousand dollars a month, and you are divided by the purchase price. A hundred thousand dollars, we’re looking for something that’s about 1% or higher. Your average place in California in the ghetto is $400,000.

 

You’ll read that off for 2,000 to buy 400 grand that’s half a percent. That’s not going to work. That’s the one. All right. We need that 1%. And that’s pop that’s the basic tech behind our investments, man. Like we make a, we pay the debt service, pay insurance taxes, repairs pay the property manager to do our dirty work for us.

 

Put some money aside for big CapEx stuff that they could see to happen, and you cash it. There’s some Delta in the air and you have cash flow and you use that cashflow to add to your annual savings and you buy more properties. Very simple formula. 

 

Great. So somebody wanted to get set up with your program. What does that journey look like? Coming on board with you? Yeah, a lot of the stuff is going to be free on the website. Think of this world, the real estate world. There’s a lot of just fake people out there just trying to swindle, break people out of money. Again, my program’s not for broke people.

 

And I have a big problem with these guys, they have these seminars or they like to teach people how to increase the credit limit on their credit cards. They can purchase the 20,000, 40,000 program and that kind of thing. Yeah. But I get it right. Like they’re trying to focus on broke people who like you sell them to folk, most of my clients are the people who passive real estate is for you’ve had the money already. So it’s a different game, different psychology too. But, we just help people get started. Just investing in that first remote rental property. People are looking to do that. I would say go to simplepassivecashflow.com/turnkey, if you’re more of an accredited investor, that’s where we specialize in, in, the more higher net worth, both building strategies.

 

And when your net worth goes over a million dollars. Sure. You’re investing in syndication deals, et cetera. There’s a whole curriculum or sort around that, but from what my experience is more about taxes and infinite banking, like the nice thing about real estate. I don’t really particularly like real estate, but real estate is the one thing out there that gives you the tax benefit.

 

That allows you. If you play our cards right, implementing a real estate professional status strategy on your taxes, you can drive your income down to zero. So people want to check out my tax returns. They can go to simplepassivecashflow.com/tax. I don’t pay, I haven’t paid taxes for the last couple of years, because all my real estate investments drive my income down to zero. I mean that this is what the wealthy do. That’s incredible. Fantastic. Yeah. So somebody comes and reaches out to you. Let’s say we have credit investors on there. Your program is helping them get started or you’re a partner with them along the way.

 

They’re on their own. Everybody’s on their own, right? This is not nothing where I hold your hand. And the information is out there, right? The podcast is free. A lot of the information on the website, different blog articles are free. I would say, just get started with that. Folks listening out there’s really no excuse not to get financially free.

 

It’s just the problem is there’s just a lot of bad information out there or information out there for other people at different paradigms. One of the teachings we talk a lot about is it may not make sense to buy your own primary residence. To me, I think it makes sense for most people because a primary residence is forced to piggyback, but you may not need, you may be financially responsible enough to not eat this force piggy bank, and you should get on the offense and invest your  money instead of just merely going up with the pace of inflation in your house.

 

Kind of an out there idea, different clashes with normal conventional thinking. To me, I don’t think you should buy your primary residence unless your net worth is two or three times greater than what that house costs. Even if you’re going to finance the house, you should finance the house so you can use the money elsewhere and invest. Those are things that I’ve learned.

 

I just got lucky doing this in 2015, when I got to 11 rental properties, And I was hot stuff at that time. In my late twenties, I started to join different masterminds and got around other high net worth accredited investors other doctors, lawyers, engineers, 10, 20 years down the road of me.

 

And I was like, whoa, they’re not investing in their 401k’s doing that type of nonsense. So these qualified retirement plans. Yeah. They’re not paying down their debt, they’re going into more good debt where their cash flow numbers keep going up and up, they’re doing infinite banking. They’re not paying taxes, not paying too much taxes legally.

 

These are the things that the wealthy do that, unfortunately folks like my parents just, they just never were tuned to. Whether they thought it was a scam or, it’s a lot of, this is just your network. Your network is your net worth and learning the tactics of the wealthy.

 

Yeah and he brought a great point. I think learning those techniques from somebody who has done it is incredibly important. And a lot of people talk about the importance of a mentor. And the first question is, did you have a mentor along the way that led you to where you are and then is that really what people can expect from you as part of your program?

 

Did I have a mentor? Not really. To me, if somebody is really that rich and what the hell are they going to spend your time with though, to you? But we live in an age where you have YouTube videos, you have content, you get like live podcasts. Like that’s the way you get it for free.

 

If somebody is really worth that much at a hearty, hourly rate, with that experience, You’re not going to spend that with you, man, but that’s where you have to take, follow the breadcrumbs and take action with those things. And that’s what I’ve done, right?

 

I don’t really want to take on mentees, right? Like I want to put it out there for free for you to get started. And if you can’t get started, that’s on you, man. Everything is out there. This stuff is not that hard. It’s very implemented. Sure it clashes with your mindset in the beginning, there are the people along the road.

 

So what I focus on is building the community, right? I run a family office ohana mastermind is what I call it for people going from $1 million to $10 million net worth. Typically the term family office is for a hundred million dollar families and above. Where they hire a very smart individual street, smart individual to manage their finances and affairs.

 

You’re not a hundred million dollar net worth, you can’t afford that. So my opinion and the way I’ve pieced it together is through a network of other high net worth investors and just working together, swamp in best practices. So that’s the community that I’ve created using my podcast as a lightning rod for high net worth investors.

 

Like we always say you hear real estate investing. You should go to the local real estate club or the free online sites. But I would highly suggest not doing that. If you have a net worth of a million dollars or more, because that’s just a bunch of broke guys going out to do that type of stuff.

 

They hear real estate’s a great way to get rich. There’s really nothing that a high net worth investor can vote for. And find their tribe. And that’s why I created the family office group and not the other on the other end, you can’t go to the country club because that’s just a bunch of trust fund kids and people who got lucky with some C-level jobs and they invest differently.

 

Absolutely. Yeah. So you’re the other guy, the guy with the high net worth that is looking for guidance to invest this money differently. What type of skill sets should an individual like this have, approaching this because you have an engineering background, I got to think there’s certain skill sets that you’ve possessed, that have helped you along the way with, some of the organization and the structure that you have with your business.

 

But then you also seem to have a little bit of a rebellious attitude as well, to challenge the norm. Are these correct assumptions about you as well? Yeah, there’s a book out there for tendencies, I think like a rich group and one of the tendencies is a questioner. I do believe that is a very common trait within our community.

 

We’re definitely not the upholder types who like, when you’re driving home at 2:00 AM in the morning, I don’t know why you can drive home at 2:00 AM in the morning, you stop at every stop. We don’t do that. We looked around, we questioned, why is the stop side here? We disregard that stop sign, right?

 

That’s just the ad. Or like, why do we have to put up money? It’s this 401k TSP is a social security thing, and that’s where it happens. Like the question starts to ask another question and it starts to unwind  this whole dog, financial planning, et cetera. And many of us have peaked by the other curtain of the wizard of Oz of finance and realize that there’s this red pill way of doing your money, investing in alternative assets where, you’re getting off the beaten path, but then you mentioned skill sets.

 

So to get off the beaten path where you’re investing in all these wall street types of products, mutual funds, where it’s consistent. What’s consistently getting screwed right? By all the hidden fees, et cetera, where a lot of times these big firms are taking almost half of your money every year. And how else are they paying for these high pay salaries and big buildings, right?

 

They’re not doing it for free because they like you, they’re digging it for profit. And that’s why they created the 401k and et cetera. They’ve got in cahoots with the government to get at the common man’s. But I digress. They’re pretty passionate about this stuff. Like that’s where, like the average guy can come back and get off the beaten path, get all that cafeteria garbage.

 

But to do that, you’re going to need people around you, cause there are shysters, and you won’t get off the beaten path. There are people that don’t do what we do. And they just are just internet shysters as they fake it till they make it. They don’t have any assets under management ditches, they are just a guy with a green screen.

 

That’s real estate. Brown, blue pants. Nice headshot. That’s all it is. And that’s why I say like and for myself included, right? To get off the beaten path and go onto the world of alternative investments, you need to find a tribe around you that also does this. However, it’s incredibly hard to find these types of people, because when I first started I was investing out of state, never saw my properties.

 

I thought it was crazy. My friends thought it was crazy. So you said, I don’t really talk about it. That was until I found there were lots of people doing the stuff quietly. It’s X-Men like, Hey, you’re X-men it’s the same thing. So you, when you finally meet these people, it’s whoa, I’m not crazy anymore.

 

And then things really get moving. Like I said, I started buying little rental properties. Oh nine to 2015 and I moved like a turtle. That’s part of wealth building too. Like it’s just slow in the big. But until I met other people doing this building synergies and found out where to invest more protocol to stay away from that was when my networks started to skyrocket.

 

Absolutely. Some of the skillsets you talked about were obviously challenging the norm, but one of the things I’ve noticed from a lot of successful entrepreneurs is almost an arrogant level of confidence. Because you’re going in new directions that other people haven’t gone before, and you’re challenging the norm and you’re forging your own way.

 

And you’re making mistakes and you’re learning things, but they’re all decisions that are based on your back. Have you encountered some mistakes that you’ve made along the way and would you mind sharing any of them with us and how’d you get through them and what’d you learn from them?

 

Yeah, I’m glad you asked that. I am cocky in this respect because we don’t really make that many mistakes. Cause we’re not really doing a hire in the Skype business plan out there. We’re buying properties that have cash flow, they want just in case there’s some hiccup in the Cod. And like we’ve been through bad times, like the pandemic.

 

I didn’t know what was going to happen. I didn’t know if people were going to pay the rent, but you know what the hell it is like, especially when we focus on lower class, lower middle-class America, right? Rents between $700 to $1,400, we don’t go to the high end luxury stuff. We don’t go into the low end stuff.

 

We stay in middle-class America, where the glut of the population is. Or in fact, there’s a huge demand for good quality of housing, which. Great. We’re not no slumlords either. And people need a place to live. And when you underwrite the deals to be Bulletproof, and a lot of times in our properties, we don’t lose money unless the property goes under 50, 60% occupancy, that’s not going to happen.

 

When you buy in good areas and good properties, especially in emerging markets, that’s just not going to happen. That happens. Like we’re talking like a zombie apocalypse, maybe, but we’ve been through that. We’ve read that the storm, we like, we’re not flipping houses, we’re not wholesaling houses.

 

This is not an exciting type of way of investing. It’s very boring, very boring. When we rehab units, we don’t put in maybe like $5,000 of rehab to bump up the rent a couple hundred bucks. New floor, new appliances, new paint job, that’s it. From the grand scheme of things, that’s why I can be pretty safe, pretty confidently.

 

Like we haven’t made too many mistakes cause we don’t really get up in front of her skis too much. But when I’ve invested, yeah, I’ve invested with some bad people in the past. Got my money too. A couple of times, and that contributes to that, that’s why you build your network again.

 

You never know about people until you have somebody on the inside that can attest. Yeah. I invested with Bob’s legit. He gave me my money back. Not like just a Ponzi scheme type of thing, but yeah, here are the P and L’s, here are the monthly reports on this property. You can actually go there and see it, touch it.

 

And you build relationships with other accredited investors, just like yourself and that way it’s unbiased sources. You do it that way. And going back to your skill sets this is the difference between more of this type of investing, as opposed to when you’re starting out. You’re starting out. You’re doing all this like pain in the blood stuff, like talking to brokers. Lender top managers, handyman, you’re doing everything, which, eh, I think it’s somewhat transferable, but like in this world, it’s more like you’re losing other peer colleagues, passive investors.

 

It’s very different for some people who are not friendly with others, like it’s impossible. But, I think most people, and especially in my group, or, once you become an accredited investor, you are on the road to financial freedom, or you are financially free. People are pretty friendly, especially for people also, when they recognize they are also on that same journey that they were wanting.

 

People like to give back and help out. After all there’s no competition, like big passive investors. There’s not Ooh, you’re going to take the deal. No, man. There’s a lot of deals out there, especially when you invest in syndication. So it’s not like there’s a super limited supply. People like to help out each other.

 

Because they know they are also gonna get back information and relationships. For me, it’s more about relationships these days, because if I don’t have people to hang out with during my lunch hour, all my other ex colleagues and friends are stuck at work, oh, you’re going to enjoy this stuff. People understand us right too. Like we do all these weird financial stuff. A lot of it was just social too. 

 

You bring up a good point. I think a lot of people have. This idea that successful people have compromised values or they’re hard-nosed taken advantage of people and that sort of thing. And most of the people that I know that are successful are actually fairly generous people who, when you have your time freed up, you can give back to others and you have a weight lifted off your shoulders when you don’t have the burden of financial stress. Like we can dig into that little bit.

 

Cause you know, these days, like when I interact with people, what I’m trying to do is do I want to have this person in my social circle long-term or at least give them a tryout for the second tryout? What I’m trying to determine is this a giver or a taker? I think there’s a book that I read.

 

It’s not to say that you’re a bad person, right? If you’re a taker person, a lot of people, especially even high net worth people, can be at a stage in life where they’re looking out for themselves and looking for search information to help their investing. They want to know who to stay away from.

 

They want to know who invests with those types of things. And I get it, you need to put your money somewhere so you can get financially free, but at some point, Turn the corner. And, I think everybody needs to go out and make their money and invest it and get financially free.

 

And I call that, putting your own oxygen mask on right in the plane. They say, before you help your kid or the elderly, put your oxygen mask first, if, so we don’t, you don’t pass out, become part of the problem. And that’s where you go from the abundance mindset, the scarcity mindset.

 

Or a scarcity mindset, that abundance mindset. And if you’re in a scarcity mindset, now it’s not to say you’re a bad person, right? That’s just maybe the stage you are not in life or age that has nothing to do with it. To me, it’s more where you are in terms of net worth or your buddy, your money mindset of, like to me, I got over. I went from that stage where I had my oxygen mask on pretty early, like I got lucky and I started investing in my early twenties. I started to get to a point where I had a bunch of cash flow rolling in and my net worth was not high yet by any means. Maybe half a million dollars, I think this started to happen.

 

But, I started to realize, yeah, I’m not going to be working at this stupid day job is engineering job. I don’t like it. Mid forties, maybe even by 40. I didn’t know at that time, I didn’t know, but I knew like the paradigm of working 20 years plus was just not going to, it’s just not needed for me.

 

And it’s numbers, I had numbers to back this up. So I went off on this kind of tangent and I think this is the part that like, everybody needs to go through this. Like epiphany where, and it takes a while. Like it took me. That’s up to my own horn, but like I took me pretty it was pretty quick for me to get to this transition where, I’m like, all right, both at work.

 

And my boss gives me a hard time. F-you man, I’m going to be outta here soon. I don’t need to be here. I can enjoy myself a little bit, take things a little lightly. And then I start to realize, all right. And when I’m like 35 at the time, I’ll be financially free and I do whatever I want.

 

And then I may be able to like role play on my head, what that feels like, I’m the travel take pictures of my food, put it on Instagram, all the stupid stuff. They, I get it. I wanted to do it at one time and many people want me to do it today. It’s a phase. But after a while, in my little simulation way ahead, it gets lame and boring. I don’t know. People who are drivers need challenges, solve puzzles. Part of me too calls me like a big ego guy, but I want impact too. I like, I wanna leave something or see something when I’m 50 or 60 and say, yeah, I did that.

 

That was, yeah. So for me, yeah. So for me, that was where the podcast was. Started to come in. I started in 2016, like a lot of my friends were asking me like how are you buying this property in Birmingham. You didn’t visit it, man. And I tell them, and many people are entrepreneurs here.

 

We tell our friends about entrepreneurship and nobody listens. So you guys understand that. And it frustrated me. So it was like, damn it. I’m just going to record this stupid thing, for all you suckers all my friends. Other people started listening to it and then a year later I got those emails saying Hey man like you didn’t seem that smart.

 

I did it. And yeah, thanks man. I bought a rental property and then, and that was where I got more, I was like, I got positive feedback. I was like, oh shit, man, I’m making a difference here. And then I became an accredited investor. Private placement since indication is the storyline changed for buying little rentals to bigger deals, but the audience kind of grew and grew.

 

And then, I was making this big impact or so I thought, that’s all, it really matters what you think. But then I saw it as my calling and, you’re put on this earth for one thing, like it’d be silly for me to go to habitat for humanity builds analysis, that this is where I get the most leverage and society. Yeah, you can make the biggest difference. So I think, and that kind of coincided with that whole simulation, my hand, I was like, what the hell am I going to do when I’m 40? It’s just all, your life doesn’t start until you’ve stopped trading time for dollars.

 

Or sometimes I have to go in, like I work from home too. You’re saying I see my family. Too much. Like I gotta get out of here. Sometimes I go in and like a little excursion, I gotta go pick something up, and I see all that, driving through town and I see all the people walk into the bus and I was there at one time.

 

It’s just a little drone going through your life, in the matrix, sleeping. You’re not doing anything. And yeah, you’ve had little moments here, there, but essentially you’re there to trade time for money to build somebody else’s dream. And I get, I’m not going to belittle people for thinking that’s a meager existence, blah, blah, blah.

 

I get it. Like me, not many people out there in the world get to a point in their life where they go financially free, FI. Weightless. When weightlessness is like your investments make more money than you do, and your spouse does any, even if you got your kid working alongside you too, and you can’t even spend it all. And that, that the thing just compounds and compounds, that’s what weightlessness is. So we call it escape velocity that typically takes most of the clients five to 10 years to get there. Once they start working with us. But at that point they’re going, and  they’re building that family legacy.

 

And the hardest part is, teaching the kids how to not be nincompoops, but that’s another topic for another day. Like at this point it’s all about you’re out of this paradigm that most people are when they have to trick themselves into liking their passion, which is their work, like I see through that these days. And not again, not that the little people who think that way, but there’s a lot of people out there that are getting to this weightlessness mode and they need to go through the simulation and live it. Maybe some people might take them a decade of kind of just floating there, but then there’s always something else.

 

And that’s where your life kind of starts. You stop trading your time for money. Okay. And I think a lot of people actually realize this, I think during the pan. Because the pandemic through everyone, through this wrench in everyone’s plans, and all of a sudden these people are working from home or they’re at home and they’re getting compensated and they’re realizing suddenly they’re pulled out of that matrix.

 

That thing that they were stuck doing, and they’re going, oh my God, what have I been doing the last 20 years or whatever? Yeah, I’ve been just doing this thing. I’ve always been trained to do it. My parents were always trained to do what their parents were trained to do, and it’s nonsense and people are giving up things in their life because they would rather not, have the Starbucks or have a nice car or go do these other things, vacations and stuff.

 

Then spend another day stock working and living a life that they. That they don’t want to live, and that’s why a lot of these jobs are having trouble recruiting people because they don’t want to go back to it. Yeah. They’re like, screw you at the job market the way it is. It’s lighter for the worker.

 

But the other sad part of that is most people just freaking stayed up until 2:00 AM watching YouTube videos. Because they don’t have to commute earlier in the morning. Like it’s your time. You can use it however you want, but they’re very similar. A lot of people in my world go to college, right?

 

It’s like maybe going to college for the first time away from your family, parents rules. It’s like the world is your oyster, for many people that is the last time you get that moment. And you get just your college syllabus sitting and you’re screwed, you have all these responsibilities that you go right into a job, but that is what it feels like to go financially free when you actually quit your job.

 

And you’re what the heck do I, do we have a guy he’s quitting, he’s working for me. Full-time, he’s quitting his engineering job and he’s asking me like next week, what do you want me to do on a holiday on this? I’m like, I’ll do it. I don’t even know what holidays are right.

 

All the time, but it’s just, okay, it’s coming in on Tuesday. I might do it, I dunno, man. You fill up your time, I followed this thing called entrepreneur operating system dos. And there’s this term called rocks. You work on projects or rocks.

 

And I’m like, I don’t know, uncle pick a rock and work on it, and I don’t know when you’re off time, go work on your own personal rocks. That’s, that was my guidance. I get it right. Like I was there not too long ago where you have to report. The only time sometimes you can get away is when you have a doctor’s appointment, you get out and go through a little bit of personal stuff on the side there too.

 

But other than that, you go right back into the matrix, back to your spot here.  And I get it. For me leaving the corporate structure and safety. It’s almost like driving without your seatbelt on. It doesn’t feel right. And I remember telling employees and I was telling my wife, like what I’m doing today.

 

Oh, I was doing this and I did this. And I’m like trying to prove that I was doing stuff during the day and nobody cared what I was doing. And then over time you start realizing that. I have to clock in. I don’t have to approve what I’m doing on a day. It, none of that stuff matters, right?

 

Yeah. It’s very liberating and it kinda makes you like, damn. And I operated like that for so long. It’s like a different topic, but it’s people who stopped caring, what other people think about themselves because they had that epiphany that people are more concerned about their own than worry about yours. Nobody cares after a while. So it’s a very liberating, very similar epiphany. Absolutely. But so like my big aha moment I went to a Tony Robbins thing and he’s always on he’s kinda like he has this thing, like the six needs, I think like com operates very similar to Maslow’s hierarchy of needs.

 

I don’t know the bottom. You’ve got basic stuff. I can’t remember. You just need the basic yeah. Like you want to have comfort stability. You want to be loved by other people, but on the top, part of the more aspirational things that you get. That self accusation, stuff like that. Yeah.

 

Yeah. And, giving back and contributing is a big one. And you look at all the very high network people who were doing other philanthropy things, it’s always a give back, but in their own certain way. And the other thing is significance to that. Want to have, give it back in your own way on your terms.

 

So that was where, to me, I was like, I think I was in my early thirties and I was kinda like, all right, I still have a Ferrari. I still do. Things like that. And the big house, I haven’t gotten totally off the deep end. I still have those types of needs.

 

And I have my own idea of what is the right lifestyle, but I kinda know that it’s going to get old. And I kinda latched onto this idea because like simple passive cashflow  had already gotten pretty good momentum at that point. I get, if it was just a pie in the sky idea, like how everybody, all the other 3000 participants in that state.

 

Had just an idea. Everybody’s got an idea, but I had an idea that actually had traction and was somewhat, making money. Like we had this concept of ikigai  right? Where you’re something you enjoy doing. You’re good at it. Kind of God given talent and the deck, there’s a need in society.

 

There’s obviously a need. There’s so many hard working professionals out there. Just misled by all this like crap out there. Financial planners, all this. And then, I couldn’t monetize it, that thing too, right? Like it’s incredibly valuable to collect all these types of people into one place, high net worth accredited investors into one place.

 

And to do these kinds of bigger projects. To me, it was like ikigai on steroids, that was where you always want to find that direction, head into direction. And that’s, I guess what life is maybe, sure. Every, if you’re not heading into the direction, there’s really no point to this whole thing.

 

Fantastic. Thank you for your time today. Tell us about how people get a hold of you. Yeah, they can check out the podcast. Simple, passive cashflow.com is the URL and then simple passive cashflow, passive real estate investing on iTunes, Google play, et cetera. Thank you for your time, Lane.