A highlight from The Ultimate Passive Investment of 2021 - With Lane Kawaoka of Simple Passive Cashflow


Guys this mubarak shot here of in penny stock. Hope you're doing well for today. I have an also guests on the show with us today Very very interesting person. Who i think has a lot of useful knowledge for us today and Basically just want to get right into it in terms of in a alleged kinda. Give a little bit about your background. Introduce yourself as i mentioned our audiences mainly you know people who have a day job maybe do some trading but really their main kind of interest is in investing and where to put their money and you have a great concept great website simple passive cash flow and take it away. Yeah so currently. I own five thousand rental units not working my generic job anymore these days as the passive gump exceeded expenses of. We're gonna try and dig it and teach people how to do this. How to get started right away i started. I was working my engineering job. That identity like just started to buy rental property. And i realized that they can come back. Broaden was for the next fences. And that's where i got hooked up with this stuff. I realized i just bought a hack for wealthy saints of able to quit my day job. It quit app. But then you know what on this journey just buying more russell starch and are the tax strategies of the wealthy and all these other tactics at wealthy do so even before we dive into the details of that if us low bit where were you working. What type of engineer were you aware. Was that kind of you know first moment of. I don't wanna do engineering. Maybe i want to look into something else. Yeah so. I mean kind of growing up prior to that. I was always in like approved. Pretty frugal also Not now by soft drinks said dinner. Waste money scheduled water also go to school. Studied hard you good little toy in a work at a job. Forty fifty years investing in four one k. By a house of event the us or hawaii or where in the us risk so of. That's what i call the linear path right. A lot of my clients stay are are high network. Doctors lawyers engineers accountants of the pretty good at saving money but You know kind of. We're all this led by going into all the traditional wealth-building stuff that when aussie just makes wall street Have these big buildings. I got into this despite again just following the dogma. Find a house to live in which i don't necessarily think is a great idea but it allowed me to buy a house which had just turned into a rental because when i was a a construction supervisor with my first role was traveling on the road of so much never home. So it's kind of silly for a young twenty year old kid to of this. Big house doesn't saturday. Sides rented out a property manager to kind of fill it with headed off role at a likes their first professional job. list. Or how'd you kind of find the ten or that that risk in real estate right is that that was just to get extra cash flow in on the side. Or how did you kinda. Yeah i just called the but old college landlord. And that's the the big secret guys get should be doing all the property manager. Ira out eight percent of rents gets unprofessionally of job uttered twirl. It's not do. Fictions you know but i get the professionals that kind of do this for me. But a part of that is going into properties that cashflow so we look for this thing called the what percent ratio or tonigh.t. Issue okay right so you take them over the divider by the purchase price. And that's the questions. Were looking for something that's Higher so for example as you. We don't buy places in primary markets. Seattle california new york away. It's numbers don't work money there. You'll be lucky to find a place in the ghetto for four hundred grand for two thousand. Two thousand. Five hundred grand is half a percent the not gonna work so were mostly buying properties a secondary and tertiary markets in places like birmingham lanting annapolis. Kansas city memphis iraq leszno less sexy places. Like that we do. And do you find like any issue. So i've thought about this. And i've done some kind of ball cast in the past related to real estate. You know that's always one of the best places outside of the market and sometimes even better. Real estate is kind of the long term if you look at the billionaires in the world there's majority of them have attained their wealth or sustained it through real estate so that's always kinda the pivotal kind of goal american dream quote unquote but Where do you kinda see in terms of like those areas right. How'd you end up. Finding the tenant a property management company do all of that or of seen other people have kind of some bad luck with figuring out the right tenants for those types of areas. You know it might be kind of lower income different credit scores and stuff. You know a problem in la. Become a starting at the top. You know like mike group were passive. It will see festers. We're not broke guys. You have good paying jobs. So we don't flip. Houses will sell houses doing all the stuff on her own. I think that's cool. When you're younger your network is under a hundred brand. You got to do that type of stuff or you. Don't make more than fifty sixty grand a year at a job. You may have to do those types of things but again you know most of my folks or fire networks able to save ten twenty grand a year. At least two bible passer rental and part of that is buying properties that can support a professional property manager. Kick picture of this black box or you got and that person that person would so it's fully passive meaning. Do you guys pool together in order to invest like Crowdfunding or is it all separate and you guys kind of just go through the group and have the community there. Yeah i mean we have kind of two prongs right like when you're starting out in your kind of under water million dollars networks in my opinion. Have to kind of do it yourself. That's what i did. Two thousand nine two thousand fifteen. When i work my way up to about eleven routes properties blood most accredited investors will read that rental properties are complicated the rate returns. And you guys under half a million order million dollars. You guys will get there at some point start with the rental properties for now because you learn it builds your network. What would i started to realize. When i had eleven properties is accredited high net worth investors These saints private placements syndications. The country club deals with become in passive investor. And you could in the money passively. You don't do anything not the operator but also is you have in your name your limit partner in terms of legal liability matching for. And you know like you sit back in your cash checks which jenner partners such as ourselves. Do everything for you got got it. So whom back to your initial i. Two thousand nine hundred fifteen How much did you need to put aside for your first investment. And how did that. Go first rental. Yeah so all these. Like nobody down strategies. I think there ought gimmicks for the guys that you're trying to get people's money and all that right right like the way we do it that we just pure saving artwork saving unity. Twenty percent amen. So if you're targeting we'll start off people with like a hundred thousand dollar houses that rent for bucks a month. Twenty percent is twenty grand. Maybe you went one extra

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