Author: Lane

Podcast #41 – Fundamentals – Mindset w/ Casey Stanton – Peer Groups, Conations, Functional Teams

Casey is an Outsourced Chief Marketing Officer and his team is available to help organizations that have reached a ceiling of complexity and need marketing and tech implementation to break free. The Tech Guys Who Get Marketing team is the company the “big guys” use when it comes to building complex technology as well as sophisticated marketing engines. Check them out at http://www.techguyswhogetmarketing.com, or check Casey’s Outsourced Chief Marketing and Chief Technology Officer Consultancy out at http://www.caseystanton.com. You can also find Casey on Facebook at http://www.facebook.com/caseystanton where he talks about his approach to business called Functional Marketing™.

Topics we talked about:
How he decided to not go down the W2 road
Four Hour Work Week take aways – time is more important!
Conation – natural behavior of how you approach the world – don’t be too analytical
How to tell if your marketing is dysfunctional – Tracking is everything!
Are you a learner, maximizer, analyzer?
http://kolbe.com/
Your peer group can be the end of you – mute the right people on social media
Focus on your escape velocity
Email me Lane@dev.simplepassivecashflow.com for a free Burnzone book if you are interested in the AHP fund
Design you life if you could do anything – what is your creative passion
Futurist ideas on jobs
Put yourself in the best situation based on your skills – Functional Teams – This is a concept I’ve put together that helps entrepreneurs pull together teams to support themselves or buttress their weaknesses. The first key piece of this is understanding ones conation. I am really passionate about people understanding their conation (natural behavior, ever since they were a child). There are a few assessments people can take to help them self-identify. By knowing your conation, you can set yourself up for success more effectively. These strategies come from the Wunderlick Test’s creator’s daughter Kathy Kolbe and management king Peter Drucker.
The happiest people out there teachers have to grade papers or edit podcasts
How to build Functional Teams in order to get more done and have more fun

Once you have gone through the majority of podcasts feel free to sign up for a chat! And be let into the Secret Hui Facebook Page.
https://calendly.com/simplepassivecashflow/20

Podcast #40 – Fundamentals – Damion Lupo – QRPs, SDIRA, Morbid backdoor accounts, wall street issues, solo 401ks, precious metals, in service roll over & negative interest rates

UPDATED 8/21/2018: QRPs (Qualified Retirement Plans) with Damion Lupo – https://youtu.be/fsOy4VrbCrs

SPC040 – Fundamentals – Damion Lupo – QRPs, SDIRA, Morbid backdoor accounts, wall street issues, solo 401ks, precious metals, in service roll over & negative interest rates

To sign up for a QRP or a FREE book – www.totalcontrolfinancial.com/spc

 

SPC038 – Fundamentals – Insurance w Ed Babtkis – Deductibles, actual cash value vs replacement cost, and much more

 

1)   Why are some policies more expensive than others?

Coverage, deductible, location

2)   What is the difference between actual cash value and replacement cost coverage

Actual cash value will depreciate the claim depending on how old the house is, replacement cost will pay up to policy limits if you rebuild

3)   Why should I care about liability coverage

Many investors will be wiped out if sued if there is a major occurrence on their property

4)   How is coverage amount determined

Many providers have their coverage methodology determined by software that takes into account labor rate and material cost per zipcode and its usually too high. Since premiums are computed based on coverage amount this can be a critical pricing component

5)   Brief discussion on flood insurance

Lender required if in flood zone, if cash purchase owner should at least know if property is in a flood zone or not

6) Shared blanket programs vs Individual policy for each property

Most of the programs offered outside of a couple are shared blanket programs meaning you are an Additional insured vs the “Named Insured”. This means less rights when a claim occurs, kind of like giving someone a power of attorney to negotiate and received an insurance settlement on your behalf

7) USA2 is a good carrier and the reason their premiums are high is usually because their methodology requires an excessive amount of coverage, the higher the coverage amount the higher the premium. USA2 also declines coverage and surcharges coverage if they are not crazy about the property or area the property is located. Still, if the umbrella is worth it to you, you might want to consider moving your rental property to them as that would solve your problem.

$1 million of liability per occurrence and 2 million per aggregate which is fairly standard, and this is your only rental, than ask USA2 if they can write you an umbrella and exclude your rental property ($1 mil occ $2 mil agg is plenty for 1 rental property).

Podcast #34 – Jorge Newbery goes $28 million into the hole and the fight to get back to even

Jorge Newbery, Founder and CEO, American Homeowner Preservation. On a mission to help Americans crushed by unaffordable debt. This Ex-Apartment investor talks about going $28 million dollars into the hole. This is quite honestly the most authentic and insightful interviews I have had this 2016… editing the podcast was like watching a freaking drama movie.

1) How much simple passive Cashflow are you making today and how are you doing it?
(You don’t need to give a number if you would like privacy. You can be vague such as halfway to quitting my job, cover my mortgage, Make 25% of my expenses, over $10k, although people like when people open up the kimono.)

My wife and I put extra money in AHP. It’s in the low seven figures.
2) What is your Han Solo moment – Han Solo and his buddy Chewbacca from Star Wars were cruising around the galaxy as lowlife smugglers but then cross paths with Luke and Leia and his life took a pivot point. Describe the resistance that was the catalyst for change.

Always been an entrepreneur. My last regular job was 25 years ago as branch manager of a mortgage company. Even then, most of my earnings came from commission, so the smarter I worked, the more I made.

Did you “burn the boats” or did you let it happen naturally – was there an internal (you decided to make a change on own – what was thought process?) or external trigger (ie got fired from your job)?
3) Worst life/business moment what did you do after? Lesson learned?

Shutdown of Woodland Meadows (my largest holding at 1100-units) and my subsequent financial collapse.

Lessons:

  1. The positive impact you can have on other lives is more important than accumulating cash. I use my Woodland Meadows experience to aid families struggling to avoid foreclosure. The best part is that AHP and our investors can also generate strong financial returns by doing so, which makes the effort sustainable and scalable.
  2. Some risks you cannot anticipate.

4) Current 2-week experiment and 6-month project? (90-180 day goal) A mark of a high performer is to put your ego aside and accept the help of others and mastermind maybe folks can help you by you asking.

  1. Next two weeks: complete improvements to ahpfund site in order to make investment process as easy and fast as possible.
  2. Next six months: execute marketing campaign to raise 50MM on ahpfund.com.

5) What is your simple passive Cashflow number? Now imagine you had 2x that amount… Describe your ideal day, detailed routine, and what projects you are working on.

Workout, work on higher-level growth of AHP (i.e. avoid getting involved in individual cases), spend time with friends and family.
6) Something that you have recently or thought about “burning your cash” on for time savings or an improvement in quantity of life.

Outsource/delegate more of what I do to experts, so I can focus on what I do best and free up my most precious possession: time.
7) Tony Robbins identifies two large concepts that we are continually struggling to gain perfection at: #1-Art of Fulfillment and #2-Science of Achievement. If you died tomorrow and I were to email this to your kids a couple decades later… this is what they would hear.

  1. What is your secret/hack for the “Science of Achievement?” How you do contribute back?

Stay positive and upbeat even during challenging times. Embrace difficult periods and endure – the effort often gets easier. Greatness is typically preceded by surviving difficult times.

  1. What is your secret/hack for the “Art of Fulfillment?” Any secret habits to share?

Strive for what you want, but allow yourself to be happy with what you have.

Investinahp.com

Start Here

Newbies:
looking for buy & hold rentals

1) Listen to the first 8 podcasts. These were recorded back in 2016, and since I have moved on to syndications but was created as a foundation to help people get started with rentals like I did in 2009 when I was straight out of college.

2) Review the Turnkey Remote Rental guide here.

3) Interact with others in our SPC Tribe!

4) Join our club and get turnkey deals I like.

Accredited Investors &
High Paid Professionals

1) Check out the recent podcasts which is made for high paid professionals and especially these days… higher net-worth investors.  

2) Review the Syndication/Private Placement LP guide here.

3) Interact with others in our SPC Tribe! Your network is your net-worth.

4) Join our club and get access to private opportunities. We only work with people we trust so let’s start building a personal relationship. Lets jump on a phone call!

https://www.youtube.com/watch?v=PKLrtUeCAIc&t=37s

Aloha! I’m Lane!

Welcome to the SimplePassiveCashflow.com podcast community!

I used to be an Engineer at a day job I did not like and I thought there was more to life as many of us high paid professionals think in our tribe. I used rental real estate as my means to financial freedom and I’m curating the content on this website and our eCourse so others can do the same. 

Glad that you have joined us on this journey and hope you can help us with our Mission.

Join our private investor club too!



Learn more about me

https://youtu.be/ABOMTJrGuHU

Join our network on the journey to financial freedom!

From 2009-2013, as I was buying rentals on my own I definitely made my share of mistakes. One of these was to paying down my mortgage (debt). Here is one of those checks where I paid down my debt. Little did I know that sophisticated investors don’t do this.

“My wife is officially is quitting her job at the end of this year. Thanks for helping us be able to do that. One of her friends had to go back to work 10-weeks after having their second kid because they need her income to pay the mortgage. It makes me cringe just thinking about that.”  –Hui Deal Pipeline Club Member

https://youtu.be/2yvR4h9thos

 

The Top SimplePassiveCashflow Posts:

This website has been going through daily improvements everyday since 2016. I admit things are a bit all over the place as I learn about these investments and wealth tactics. The following are the top posts on this website and a good starting place.

Updated version here

The typical SimplePassiveCashflow tribe member asks a lot of questions..

Why do I have to work 40 years at my JOB?

Why do the wealthy always get ahead?

Why do I stay up late at night reading Quora?

Alexa, why does Dave Ramsey think I’m dumb?

Below are some revisions I made to Dave Ramsey’s steps to save and build wealth.

 

Are you broke? Don’t have $20,000 to start buying a rental – learn here.

I know I was beating the drum of the Turnkey rental a few years ago but now investing in Syndications. (Turnkey rentals are not passive and still a PITA) I am admittedly a work in progress and this website/podcast is my journey.

Mainstream investing (401K, stocks, mutual funds, 529, IRA, or anything retail) is based on investing for appreciation. You know buy-low-sell-high …. usually based on factors wholly outside an investor’s control.

Then one day (when you are grey and immobile) retire and live off your nest egg at 4% withdrawal rate.

We (us sophisticated investors) call this gambling not investing.

in·vest / verb

to put money to use in something offering potential profitable returns, as interest, income, or appreciation in value.

gam·ble / verb

1. play games of chance for money; bet.

Our private investor group invests off the following:

  • Proven Operators.
  • Proven Markets.
  • Proven Demand.
  • Invest for Income.
  • Invest for Growth.
  • Tangible Asset.
  • Low Correlation to Wall Street.

Buy-low-sell-high trading mentality encourages the churning of holdings … which generates commissions and short-term capital gain taxes. Which is another reason why we do not like commission based Financial Planners or Registered Agents. Some of these guys use hard-selling techniques. If they make enough phone calls, eventually they get someone to purchase a stock and make their commission.

“Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway” -Warren Buffet

In case you have not seen this whole financial world is an engineered system by Wall Street firms and the government which protects them, to prevent Main Street investors from building enough passive retirement income in your 30s/40s as opposed to your 70’s. The mainstream financial news never talks about yields coming from cashflow (income minus expenses). Discussions focus in the context of share prices.  It’s pattering you to think buy-low-sell-high. Churn and cha-ching for those executing transitions in the industry. And for most people who are confused and freeze that’s why there is a hidden asset management fee which is an above the line expense to you.

http://www.cfiresim.com/

“We know what is going to happen if you keep investing in the same old stocks/mutual funds/bonds… you will keep working at your job with a lackluster retirement in 40-50 years. Invest in real estate for cashflow is a proven way that I created my pension today and allowed me to retire before I hit the age of 34. Do the math… the numbers don’t lie… people do” – Lane Kawaoka

The secret… Is not about appreciation but cashflow. Creating multiple mini-pensions today as opposed to hoping and praying you have enough to deplete from during your dying days.

How do we ensure not losing money?

Buying assets where the Rent-to-Value Ratio is more than 1%, is needed to be able to cashflow after expenses. You find the Rent-to-Value Ratio by taking the monthly rent dividing by the purchase price. When I am looking at potential investment properties the rent-to-value ratio is the very first metric I look at with evaluating an investment. To calculate this metric you take the monthly rent divided by the purchase price/value. For example a home that rents for $1000/month that costs $100,000 has a rent to value ratio of 1% (1,000/100,000=1%). The higher the better. I typically look at a huge list of properties so using excel to make this calculation is the best practice.

It’s sort of like using the dating app Tinder… but with a filter…. I’ll stop there… to learn more click here.

Continue reading “Start Here”