‘At the end, you’re trying to find your highest and best use. How can you effectively create value based on your limited time?’

Perhaps you’re interested in getting into multifamily, but syndication is not for you. If your strengths lie in networking and raising money, you can get into apartment building investing as a general partner who specializes in soliciting capital.

Based in Hawaii, Lane Kawaoka still works his day job as an engineer, but he is quickly growing passive income streams via multi-family investing. After graduating from college with a degree in engineering, he got a job in construction management that required a lot of travel. In 2009, Lane bought a primary residence in Seattle—but he was never there. He decided to rent out his A-class property, and the cashflow generated from that enterprise inspired him to purchase more.

From there, Lane expanded his single-family portfolio, eventually discovering turnkey rentals. Today he is pursuing multi-family, recently landing his first 190-unit deal. But Lane is working deals from a different angle, coming in as the general partner who specializes in raising capital. On this episode, he shares his unique multi-family strategy, explaining how his Simple Passive Cashflow blog and podcast position him as a thought-leader in the space and afford the opportunity to network. Listen in to learn how Lane is compensated as the money-raiser, and hear his advice for aspiring entrepreneurs about building a platform that establishes your credibility as a multi-family investor!

Key Takeaways

[2:30] How Lane got into real estate

• Engineer in construction management
• Rarely at primary residence, traveling for work
• Decided to rent, then purchase more
• Stumbled on turnkey rentals
• Working to build passive income streams

[6:11] Why Lane made the shift to multifamily

• Tired of ‘managing the managers’
• Realized single-family not scalable

[7:33] Why Lane was slow to get started in multi-family

• No substantial net worth, experience
• Thought had to be lead
• Finally paid mentor to help

[8:33] The four parts necessary to do a multi-family deal

• Net worth
• Raising money
• Experience
• Finding deal

[9:24] How Lane leverages his blog and podcast

• Tired of answering same questions about single-family
• Started blog/podcast to address those questions
• Good avenue for building relationships with like-minded people
• Platform adds to credibility

[10:20] Lane’s approach to finding deals

• Slow start (18 months)
• Contact junior associates on brokerage websites

[11:58] Lane’s first multi-family deal

• Came together in last six months
• 190-unit in Texas
• Came in as passive investor

[13:36] Lane’s multi-family strategy

• Not interested in being syndicator
• Multi-family game so big, specialization is necessary
• Talent lies in raising money

[15:09] How Lane is compensated as the money-raiser

• Receives promo raise rate
• Get in as general partner (passive income stream)

[15:55] Lane’s strength in accessing capital

• High net-worth network
• Would rather spend time on podcast than analyzing deals

[17:36] Lane’s multi-family strategy moving forward

• Build syndication business, portfolio
• Get people out of ‘Wall Street roller coaster’
• Raise capital, invest alongside

[19:37] Lane’s advice for aspiring entrepreneurs

• Build track record
• Create platform as thought-leader (video, audio, blog, meetups)
• Find your strengths and double down

Connect with Lane Kawaoka

Simple Passive Cashflow

Email lane@simplepassivecashflow.com

Resources

Bigger Pockets

LoopNet

Invest with Michael

Podcast Show Notes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

• Download
• Text “secretbook” to 44222

Review the Podcast on iTunes

So you want to get into multi-family investing, but you don’t have the money or the track record. Maybe you think that baby steps is the way to go, learning the game through single-family rentals or managing a small complex on your own. But if you have the right team, you don’t need to have $5M in the bank or 15 years of property management experience. You can serve as the quarterback and focus your energy on putting together deals, while your mortgage broker, property management company, and general contractor execute the playbook.

Devin Elder was born and raised in San Antonio, Texas. After graduating from UT-San Antonio with a degree in business, he went the corporate route, working in sales and operations for several area companies. But with each promotion, Devin lost a little more time and a little more autonomy. Then he got fired. In that moment, Devin vowed to find an alternative. At about the same time, Devin bought, renovated and refinanced his first single-family rental. Initially skeptical of real estate as a viable investment, he soon realized that the cashflow from rental properties could be his way out.

Two years and 20 doors later, Devin quit his last corporate job and became a full-time investor. Since then, he has shifted his focus to multi-family, working his way from a six-unit that he managed himself to a 75-unit to a 192-unit. Today Devin shares how a desire to scale his real estate business inspired the shift from single- to multi-family and why he takes pride in having a positive impact on the community. He explains the initial lack of confidence that held him back from pursuing multi-family and how he overcame that with the right peer group and a ‘someday is now’ philosophy. Listen in to understand why Devin would pursue entrepreneurship sooner if he could do it all over again, and hear his advice around ‘borrowing credibility’ to jump-start your multi-family business!

Key Takeaways

 [2:33] What inspired Devin to leave the corporate world for real estate

• Climbing corporate ladder, lost time/autonomy
• Giving his all, got fired
• Vowed to find alternative
• Single-family investment proved viable

[5:00] Devin’s initial strategy

• Acquire enough cashflow to cover bills
• Put team together, several single-family rentals
• 20 doors in two years
• Moved to tears on last day of work

[7:59] Devin’s shift from single- to multi-family

• Wanted to scale business (5X cashflow)
• Realized multi-family was more feasible
• Banks willing to lend (established business model)

 [9:37] Devin’s multi-family starting point

• C-area six-unit bought, managed himself
• Wasn’t ready to take other people’s money
• Friends from local mentor group encouraged bigger deals

[12:17] Devin’s second multi-family deal

• 75-unit, deep value-add
• Unsafe building, occupancy low
• Capital raise with 11 investors
• $1.2M renovation

[15:46] Devin’s take on working your way up in multi-family

• Jump into 80-plus units
• 5-80 units is ‘no man’s land’
• Larger project allows for staffing

[16:59] Devin’s advice to his younger self

• Multi-family is way to go
• Hoard your money to get first deal done
• Second will follow in quick succession

[18:06] Devin’s current multi-family deal

• 192-unit in nicer area
• 8-10% cash-on-cash return
• Equity multiple of two over five years

[19:27] Devin’s advice to aspiring real estate investors

• Employ ‘borrowed credibility’
• Build team with experience, track record
• Act as quarterback, specialize in putting deal together

[22:47] Devin’s failures

• Lost own money on flip house, improved systems
• Counts not pursuing entrepreneurship sooner as failure

[24:00] How Devin overcame a lack of confidence

• ‘Someday is now’
• Quitting job as mental hurdle

[24:52] Devin’s AHA moment

• Desire to create life he enjoys every day
• Not working toward ‘someday’

[25:33] What Devin is excited about

• Making positive impact on community through multi-family
• Rewarding to give investors good return
• Rehab of property impacts neighborhood

Connect with Devin Elder

DJE Texas Management Group

Resources

Partner with Michael

Invest with Michael

Podcast Show Notes

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

“I had this moment where I realized, ‘No, I’m not going to be the CEO of somebody else’s dreams. I’m going to be the CEO of my own dreams.’ I declared that day that I was never going to be an employee again.”

Tamar Mar is an adventurer at heart. She spent 20 years in the startup and small business arena, working as COO for prominent companies in the FinTech and real estate brokerage space. After making that decision to be the CEO of her own dreams, Tamar became what she calls a ‘business opportunist,’ building out her real estate portfolio and investing in small businesses like The Fitness Shop, a high-end specialty fitness equipment retailer.

Tamar invested in her first property at the age of 19, and she has owned rental properties for 15-plus years. From purchasing homes on auction to fix-and-flips to large-scale renovations projects, she has a keen eye for evaluating deals. This year, Tamar has shifted her focus to the acquisition of underperforming commercial and multi-family.  Today she shares how she made the shift from single- tomulti-family real estate, her approach to landing the first deal, and how she has become a ‘capital magnet.’  Listen in and get inspired to dream big and ‘take massive stinking action every day.’

Key Takeaways

[3:06] How Tamar got involved with real estate

• Bought townhouse at age 19
• Owned rental properties last 15 years
• Needed own business to be happy professionally
• Read The Millionaire Real Estate Investor

[5:52] Tamar’s first real estate strategy

• Got real estate license for access to properties
• Purchased homes on auction, sight unseen

 [6:40] Tamar’s shift from single- to multi-family

• Pursued single-family for three years
• Learned about syndication
• Could use operations expertise from startup world

[7:24] Why people are intimidated by multi-family

• SEC regulations, working with attorneys
• Raising capital

[8:04] What inspired Tamar’s shift to multi-family

• Ambitious goal of $250K in annual passive net income
• Couldn’t scale up quickly enough with single-family (100-250 doors)

[9:03] Tamar’s approach to landing her first multi-family deal

• Studied multi-family forums on BiggerPockets, Michael’s Syndicated Deal Analyzer
• Practiced analyzing deals on LoopNet
• Began networking, building out team
• Found great deal, put in offer
• Landed 15-unit complex but didn’t have capital

[12:05] How Tamar raised the capital to fund her first multi-family deal

• Needed $325K ($825K purchase price)
• Additional capital for maintenance
• Reach out to friends/family, networking groups
• 6 investors (4 existing relationships, 2 new)

[14:51] How the project is performing so far

• Secured property manager in Spokane
• Rents above $300/door when purchased
• Renovating all units, increasing price to market rate

[16:15] Tamar’s exit strategy

• Ten-year hold with refinance in year two or three
• Return 70-80% of investors’ original capital with refi (if not more)

[16:57] How the Law of the First Deal is impacting Tamar

• Broker approached with off-market deal on 23-unit
• Tamar walked away during due diligence
• Broker contacted with 16-unit just hitting market
• Landed 16-unit, walk-through tomorrow

[21:23] How Tamar’s multi-family success has shifted her perspective

• Reevaluating goals, plans to secure 100 units by 2018 (with additional 50/year moving forward)
• Went from three to 33 units in six months

[22:15] Tamar’s AHA moment

• Christmas week of last year, in talks to become CEO of company back East
• Declared independence, not willing to be ‘CEO of someone else’s dreams’

[24:06] Tamar’s advice to her younger self

• Dream way bigger, earlier

[25:03] Tamar’s advice to aspiring multi-family investors

• Pursue new knowledge
• Follow in footsteps of people on path you want to take
• ‘Take massive stinking action every day’

[26:22] What Tamar is excited about moving forward

• Continued pursuit of multi-family deals
• Starting new podcast, Investing for Life

Connect with Tamar Mar

Marota Group

Email tamar.mar@marotagroup.com

Investing for Life Podcast

Resources

The Millionaire Real Estate Investor by Gary Keller, Dave Jenks and Jay Papasan

BiggerPockets

Syndicated Deal Analyzer

LoopNet

Podcast Show Notes

Coaching with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes

What is your Stupid Human Trick?

We all have a unique ability that seems incredible to others. The trick is figuring out what it is that you are particularly good at and using those strengths to craft the processes and systems that capture wealth.

Cashflow Ninja M.C. Laubscher came to the US from South Africa in 2001 with a backpack and $500. He played competitive rugby and learned the real estate business via experience, buying his first property at the age of 21. M.C. befriended a wealthy multifamily investor who became his ‘accidental mentor,’ asking M.C. to serve in several different capacities from maintenance to leasing to property management to acquisitions. This education served him well, giving M.C. invaluable insight into the world of the wealthy and an understanding of all the moving parts of real estate. Now he is the President and Chief Wealth Strategist of Valhalla Wealth, a wealth management firm that leverages the Infinite Banking Concept to help clients co-author a plan for achieving financial security, independence, freedom and significance.

M.C. is also the host of Cashflow Ninja, a popular business and investing podcast that seeks to empower people to grow and protect their wealth in the new economy.  Today M.C. shares the best investment opportunities out there that combat wealth destroyers, why people struggle financially, and his advice for investors who want to break the mold. Listen and learn how to determine the wealth-building vehicle that’s right for you and the importance of investing in your own health, relationships and education. You are your own greatest asset, and M.C. is here to inspire you to reach your potential through multifamily investing!

Key Takeaways

 [2:48] How M.C. got involved in real estate

• Read Rich Dad, Poor Dad
• Bought first property at age 21
• Befriended wealthy multifamily investor

[5:14] What surprised M.C. about ‘the world of the wealthy’

• Complexity of determining overall plan

[6:36] M.C.’s take on the best investments out there

• Combat wealth destroyers (taxes, inflations, commission/fees)
• Real estate
• Insurance products

 [10:05] Why people struggle financially

• Outdated education model
• Doesn’t empower people, teach skills to thrive
• Lack of financial education
• Outsource wealth-building
• Conventional model set up to fail
• Current environment (government debt, bankruptcy)

[14:08] M.C.’s advice to people who want to break the mold

1. Be crystal clear about what you want (economic independence number)
2. Determine why it matters
3. Decide who you need to become
4. Create systems/processes to capture wealth
5. Put wealth into something that provides cashflow
6. ‘Rinse and repeat’

[19:45] The benefits of investing in insurance products

• Safe, secure, growing and liquid
• Ability to borrow 90% from policy, put into real estate investments
• Taxes on seed, not harvest

[23:07] How to figure out which vehicle or process is best for you

• Focus on one thing in beginning
• Once hit number, look at diversifying

[26:26] M.C.’s lowest depth of misery

• Sports background prepared to absorb enormous disappointment
• Sports injury, failed business deal and relationships fell apart all at once
• Learned due diligence

[28:56] M.C.’s aha moments

• Invest in self as life-long learner
• Continue to grow network

[31:22] What M.C. would tell his younger self

• You are your #1 greatest asset
• Second greatest asset is relationships
• Certain skills will not go away (marketing, sales and customer service)
• Business must solve problems, create outcomes

[34:30] M.C.’s perfect day

• Work out, family time and personal development
• Attack the day at 11am (calls, interviews and case designs)
• Family time, reading in the evening

Connect with M.C. Laubscher

Cashflow Ninja

Valhalla Wealth

Collapsing Time Webinar

Banking Principles Presentation

Resources

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki

Becoming Your Own Banker: Unlock the Infinite Banking Concept by R. Nelson Nash

Coaching with Michael

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

Review the Podcast on iTunes