Over the past year, it has been an honor to get to know you in the Hui Deal Pipeline Club. The average member is under the age of 55, engineers/IT, geek out on data, and very adept at looking up stuff on your own. You guys will balk at deals that get you under 12% a year!
That said if you guys are finding good deals or operators let me know because I know you are Googling this stuff into the night!
Another Hui member built this free web app to get the preliminary data and crunch the numbers automatically for you on an SFH. Check it out at http://propalyzer.info
No login required. Please reply back your suggestions so I can give them back to the developer.
I’m working on a concept of buying new build turnkey rentals (getting the financing for you) and working them as a group. Let me know if this appeals to you.
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Download the FREE 2018 Rental Property Analyzer for free: https://simplepassivecashflow.activehosted.com/f/14
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
$480k horizontal income
Podcast is not simple passive cashflow
Used commissions to invest into real estate
Started out trading tome for money, working 40 hours a week, and was left with a $100 every week
Sold timeshare presentations
Danny got 3-4 of these a day and was the leader at the time and Pat beat him
Went to college and went to real estate sales where he is making commissions
Discovered horizontal lines – bought SFHs and moved to apartments and other buildings/businesses
Lost 2/3 of initial investment
LTI – After you pay your bills – currently $200K a year
Moving around current investments
18% lawyer loan, some private equity notes, apartment building syndication
Crossed over at age 46 to financial freedom number
Works 3 days a week (Tuesday-Thursday)
Chose to not work as much in 40s
Look where the poor creative lives because that is where the transitioning area is
Robert Kiyosaki says don’t buy where there are crane
Alchemist talks about the beginner’s luck – Pat started investing in non-real estate investments in 2008 – 50-100K here and there and 50% of them failed
Rip and duplicate things that are working
Real estate rockstar podcast!
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Download the FREE 2018 Rental Property Analyzer for free: https://simplepassivecashflow.activehosted.com/f/14
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
After Turnkey rentals I see people go into 1) Syndcaitions 2) BRRRS 3) Non performing notes
12/20/2016 – SPC034 – Jorge Newbery goes $28 million into the hole and the fight to get back to even – https://www.youtube.com/watch?v=Y1IN4BTvRPg&t
5/30/2017 – Non-Performing Notes w/ AHP Fund making 12% a year! – https://www.youtube.com/watch?v=ZvKue-rq4y8&t=2s
What is performing notes and non performing notes
Steps to get started
What can you get from people or networking in note world
NBBC Training
How did you start to scale ahp
where AHP succeeded and where we failed
the importance of due diligence – and how identifying trouble before you buy a loser is as important is buying winners
What are a few specific things you do (sort the spreadsheet) and simple formulas for a quick and dirty analysis
how to connect with real sellers willing to sell at real discounts
how to build your note business with the maximum likelihood of success
why the note-buying opportunity continues, and how to get ready for the next downturn
what to expect when you start foreclosure or borrower files bankruptcy
how much to raise capital
the value of contacts and relationships (AHP has taken years to build these up – and you can connect with them in two days)
the overlooked value of servicing, collateral and recording
how to maximize returns with fast, consensual resolutions
choosing a law firm: how to align interests and turn slow & costly into fast & cheap
how to get the most out of your servicer
Notebuyerbootcamp.com use code “simplepassive” for $200 off admission
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Pardon the grammar… I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
Lane is dringing Maui Brewing Company Makawao beer and POG IPA and homemade mead (honey wine), Abhi – Whiskey
https://abhigolhar.com/
How old are you? 1985
How much simple passive cash flow do you have coming in and from what investments?
At this point my cashflow is a little lower because some of sfhs are offline because I’m trying to sell them and my syndications are in the ramp up stage but I’m around 3k. more importantly I have very low expenses and essentially financially free. My salary from my paycheck is 4k at the-end if taxes and that’s what I use to put right back into my business. That’s 3k not including my day job.
– What are your healthiest habits? How do these help contribute to being your best, most productive self?
Intermittent fasting.
Used to do paleo but has evolved to keto
I used to do crossfit but the 225 lb deadlifts twenty one times for three rounds really got old. Its for people in their twenties
Got a trainer who won the hawaiian iron classic
Keep changing goals
– What do you attribute your ability to be prolific and productive to?
I don’t have that many distraction
I got lucky with initial positive feedback
I work really hard/consistent
Make tweaks frequently. If you follow me around I do weird things. or going to the restroom put coffee in microwave and then take a call like a machine
– Looking back what do you wish you had done differently along your journey so far?
I wish I would have gotten a personal mentor to call me out on my and minimize the hours of mental planning and scenario
Q1) You mentioned that you have spent close to $60K last year in coaching & mentoring programs/events, can you share some insights on how do you determine which ones worth investing your time & money into, which aren’t, and how to avoid the scammers/pitfalls? Are there ones that you recommend trying out or avoiding?
Get feedback from actual students. Make sure there is no referral fee going on.
Allocate a development allowance. 10 percent of your income.
A mentor taught me never to speak bad of others so I won’t here publicly. But if you guys get to know me I tell you what I think. Another example of going an inch wide mile deep.
Q2) I’ve listened to most of your podcasts (and yes I did leave reviews :-)) but can’t say every single one so apologize if I missed it if you shared already – how do you manage employer/manager after they learnt you were doing this REI “side gig” with the eye of quitting your day-job? I am sure quite a handful of your listens work for companies that have requirement of disclosing outside business activities that require either company/manager approval, or Compliance clearance, varying level of scrutiny , or maybe just a disclosure. What would be your words of advice or caution on how best to navigate this when one cannot fully launch into investing full-time?
I have a humorous article of what to do in a day job.
But honestly people don’t rreally know what I do. I am a government worker who drives a mercedes at work and smiles a lot. It does not make sense. Its good that my parking lot is really big so no one really sees me.
I work in a non profit so I try to respect that they are paying me for my time.
Honestly if they find out I bet the “clock watchers” will become whistle-blowers. my mindset is that it won’t be a bad thing. It will just pressure me to work my ass off and get out of day job and take that leap.
I just like how authentic I can be in the way I work with people… In the I interviews for the this last job they asked why should we hire you?
No one else has a masters degree and real world experience that I do and willing to be paid the salary level and will be happy there.
If people give you a hard time this is all about lifestyle creation. Financial freedom gives you the freedom to do what you want. a recommended real is Mark Madsen “How to not give a fuck”. Its not about living life like a cavalier but opting into a conscious life of people and projects that are aligned with you.
I later told this story on The Real Estate Guys Radio show’s annual Halloween Horror Stories – listen
Pardon the grammar: I’m an Engeneer, Enginere, Engenere… I’m good with math! Here are the Show Notes:
Summary: I brought a house for $43,000 in 2013 and the operator ran the property into the ground and I sold the property for a net of $7,000.
This is the dark side of investing as a passive.
“Failure is just admitting it and evidence you have learned something”
Timeline:
2013 – Had 43,000 in my SDROTH IRA, The deal 9% and 50/50 split on profits. I got the referral from a Self-Directed IRA company. I asked them where should I invest this money because I did not know any better. If you are looking for a good SDIRA custodian let me know.
2014 – Heard this dude was a scam artist from my network but it was too late. Lets just watch this. I started connecting with other clients via the interwebs and learned they had another market that they did this in to which was MS.
2015 – Heard there MS portfolio went underwater, taxes not paid
Mid 2016 – Got the letter saying they were going under and I had several options,
1) Deed in Lieu – had a lease purchase agreement
2) I did not really understand the other options but basically wait in court forever
For about a few months everything was fine. The tenants were paying their 500 dollar rents and I was pretty lucky compared to the other investors who tenants had trashed the homes. This is when the story started coming out on what this shyster did and the poor property manager that took over these problems.
Note that this was in my SDIRA so you can’t bring in outside funds to help the property or that could throw out your tax sheltered status per the IRS.
Early 2017…The property went offline
From the Property Mangement:
“The home is in pretty bad cosmetic shape. Keep in mind it looks worse than it really is. The photos will be shocking but most appears to be cosmetic repairs. The exterior just needs cleaned up (cut grass, trim hedges, clean and small repairs to gutters and down spouts). However, the interior had a bathroom leak on the second floor, there is alot of trash. It will require new flooring throughout, a new vanity in the bathroom as well as new caulking around the tub. It will need some patching and painting of the interior walls, a new drop ceiling tile and about a 30-yard trash out. I could not test the mechanicals but they appear serviceable. No way to really know until you have them up and running though.”
Summer 2017 – The city had a lot of complains about the grass not being kept.
We could not find these lost Western union checks – they were written out to my personal name.
August 2017 – House listed 25,000 with the broker fee 4000. Average days on market 180 days for a retail ready.
Average days-on-market for homes between $10,400 – $15,600 = 138 (in zip code 16101)
Time suck!
A couple offer/counters.
November 2017 – Property sold and I walk away with $7,000 after sales commissions 9
I only had about $12K in my Roth IRA. I could have kept building that amount via a fund or private money lending (although that was a small amount) because my contributions were 20-40K range. In a Roth IRA you can take out contributions any time. I used to do this for an emergency account but because I am pretty good at finding good deals I would rather have the cash and minimize administrative headaches that takes time away from deal finding, networking, and making podcasts. The fees were about 25 a quarter so that would have been 1% a year. Each transaction I would have done would have been an additional $50 dollars to execute along with the time it consumed.
More information on my recent transitions to syndications please check out my previous podcast.
QRPs
Lesson learned: don’t invest with anyone you don’t know, like, trust, or outside 1 degree of separation. There are deals out there being passed around via daisy chain style where no one really knows who each other are.
Here are the Show Notes…. But first please leave me a review: http://getpodcast.reviews/id/1118795347
Go to this link to grab the Action Board worksheet guild. If you are already an email subscriber the link will automatically get sent out to you with all the post that never make it to podcast.
Optimist/Pessimist 2×2 Matrix – (My friend and his IPA Beer engineered the following idea…)
Good Outcome Bad Outcome
Optimist + +
Pessimist – –
Psychology Today, the average person has 50,000 thoughts a day.
The Rich Are Optimists – 67% of (Tom Corley study) the self-made millionaires in my study forged the habit of being positive and upbeat. A positive, mental outlook is critical to overcoming problems, obstacles, pitfalls, mistakes and failures. Staying positive is a critical component to becoming wealthy. Positivity is like a radar in search of solutions to intractable problems. Thus, positive thinkers are able to see opportunities, where others see only negative consequences.
The Poor Are Pessimists – 70% of the thoughts of the average person are negative (Psychology Today). Negative thinkers are unable to see solutions to problems. Thus, they are unable to overcome obstacles, pitfalls, their mistakes and their failures. Opportunities pass them by because they are not looking for opportunities. They are too focused on the negative consequences.
The Rich Are Decision-Makers – 91% of the rich in my study were decision-makers. Forging the habit of making decisions is critical to success. Those who develop the habit of making decisions are sought after as leaders, by others. Decision-makers have forged the habit of overcoming the fear of making decisions along with the paralysis of analysis associated with those unable to make decisions. The rich do not over think, which is a form of procrastination. It is impossible to know everything you need to know before making a decision. The rich forge the habit of being comfortable being uncomfortable about making decisions.
The Poor Let Others Make Decisions – 98% of the poor in my study were not decision-makers. They succumb to the fear of making a decision. They get lost in analysis and over thinking, which is a form of procrastination. The poor feel uncomfortable about making decisions, so they defer to others.
Don’t examine the roots just eat the fruit!
https://mymorningroutine.com/
Hacking Baggage at the Airport:
Getting your checked baggage off first before everyone else
1) Gate checked because luggage is queued on a First on last out order (FOLO) similar to an elevator. Downside you will have to lug your luggage through security.
2) Have them mark it as fragile
Also you don’t have to pay to gate check a bag, just be nice and ask the counter at the gate.
Why the heck am I going to a note buyer conference? Have I got shiny object syndrome again?
Not to worry I am speaking on a panel about raising private equity 😛
Use $200 off coupon code “SimplePassive”
One takeaway I have gotten from the past couple months of open phone calls with your folks is that after turn-key (SFH) rentals, your natural progression is to forge a path on either syndication as a LP, BRRRRs, or non-performing notes. In that order of popularity from my unscientific study.
If you make it out there… I’ll buy the first drink!
__________Event Information_________
AHP’s CEO Jorge Newbery and 10-years of contacts will gather to share what they have learned about NPL (non-performing loan) investing in order to inspire a new breed of note investors – those who want to achieve superior financial returns and an extraordinary social impact.
Come to learn and connect with some of the leading note investors in our country! It doesn’t matter if you’re new to note buying or a seasoned vet, you will learn step by step how to build & scale a note buying business.
Here are the Show Notes…. But first please leave me a review: http://getpodcast.reviews/id/1118795347
Reality Shares came from the Jobs Act
April 2013 Reality Shares began
Accredited only
14-20% Class B MFH estimates
Also have preferred equity options 10-14% IRRs
1st lien debt or 2nd lien 7-12%
If you are not connected Crowdfunding options
From a syndications view, they are charged an origination fee
1% asset management team (from cashflow) from reality shares
1% Funding Fee, 1% Asset management fee
Some crowdfunding is taking equity upside
Due diligence – credit checks, background checks, 3rd party check of purchase price verification, then look at the deal (market, pricing)
Less than 5% of deals make it to the platform
There is a max the crowdfunding site with one syndicator (2-3M) to diversity risk for the firm
Reality Shares is a Broker-Dealer
KerryGold because it’s organic. I like the salted version because it’s more widely available but the salt adds depth to the taste
1 Tablespoon to 1 OZ
MCT Oil
MCT are medium chain fats, the key to brain function and good skin. Basically modern day snake oil.
Bulletproof Brand has XCT Oil but I use this Mickey T Brand (isolated 8-Carbon Caprylic Acid Molecule) which is the same thing except a lot less marketing costs. You can use Coconut Oil in a pinch but the taste isn’t that great.
1 Tablespoon to 1 OZ
Whey Protein Powder
Whey is the cheapest form of protein. This is a way to add a bit of sweetness and blends into a foam. Life is always better with a bit of foam!
Optimum Nutrition is the go-to brand for thousands of wannabe bodybuilders so stand on the shoulders of these giants and do the same.
1 Tablespoon to 1 OZ
Collagen Protein
This is the most expensive protein that has benefits for skin, joints, bones, hair, and digestion. Sort of like drinking bone broth without the flavor.
For those of you who are into the whole autophagy intermittent fasting protocol (12-hour daily fast) this is pretty good for you too because you are basically drinking a MCT oil drink. The only recommendation is to eliminate the whey protein. Also if you really want to geek-out, blend the whey separately because it is the most unstable. By blending separately you allow the butter and oil to cool down the hot coffee and protect the whey from heat.
Please note that some of the links found on this website are affiliate links. And at no additional cost to you, paid by the seller, I will earn a commission if you decide to purchase which helps pays for the various costs of running this website. Please understand that I have previously used these products. Do not feel the need to purchase these products but if you do please use these links. If you have any additional questions on how I optimize the use of these products please let me know.
Update 20.02.22 – If you are trying to do the whole intermitted fasting thing I don’t know how taking 200-500 calories via MCT oil and butter does not knock out you out of ketosis. But hey you got to believe! I might stop this myself but its just goes to show that you need to change your thinking from time to time just like how I moved on from thinking turnkey rentals were the best.
Mobile home investor
His business is not simple or passive
did no go from a career to REI
Started when was 19 years old
Started buying SFHs and 2008 changed things and made Kevin Rebuild
MFH was not scaleable
Then was introduced to mobile home parks
Everyone should start smaller to learn about working with tenants
Anti turnkey rentals 1) based on comps 2) buying retails
Cap rates are only important on the sale
Only look at cash on cash return (not IRR)
used 35% expense ratio
Work with the broker to come to a price – can you help me understand?
MHP have 50/50 LP GP splits where MFH has a little high 70/30 split
40K a year and under, people making 12-15 dollars an hour
Excercise is the success tip
