Ep 71: Building Cash Flow via Multifamily Real Estate with Lane Kawaoka
The multifamily real estate market is booming, and many new passive investors want to get in on the potentially lucrative investments and consistent cash flow that multifamily properties offer. Today’s guest is Lane Kakaowa, Principal of SimplePassiveCashflow, a P.E. Engineer, and an investor in over 3,000 units. His goal is to help the hard-working middle-class build real asset portfolios by providing free investing education, podcasts, and networking plus access to investment opportunities not offered to the general public. In this episode, Lane shares his journey from an engineer to a passive investor, and how he scaled his cash flow from passive investments up to 7 or 8 figures. We discuss what to buy based on your net worth and the simplest exit strategies, transitioning to multifamily, and private placements. We also talk about the importance of proper due diligence, building relationships with other passive investors, and knowing what to look for, as well as the toss-up between investing in individual deals or outliers versus investing in the commercial real estate market. Lane has plenty of advice for investors looking to join him on his journey to financial freedom, so don’t miss this episode!
Key Points From This Episode:
Lane introduces himself and shares some of his journey to owning 3,500 multifamily units.
Lane’s slow and steady success story, highlighting the value of building cash flow.
What Lane would have done differently – buying a few rental properties out-of-state and going straight into private placement, syndication, and large multifamily properties.
Lane’s advice for buying a duplex, triplex, or quad versus a single-family home based on your net worth from your day job and the exit strategies for both.
Transitioning to multifamily and mobile home parks, bigger scaling, and private placements.
Lane’s due diligence process and why he builds relationships with other passive investors.
How to know who are the right people to invest with, not looking at flashy marketing schemes!
Lane’s thought process on giving up control of his money versus having his own deals.
How Lane ensures he avoids being exposed to too much risk through dollar cost average.
Investing in individual deals or outliers versus investing in the commercial real estate market.
What attracts Lane to deals in submarkets – looking at the numbers, is the deal fat enough?
Understanding how to properly analyze a deal and knowing what to look for.
How Lane approaches deals differently as an engineer by studying the KPIs, making spreadsheets, using an 80/20 mindset, and asking lots of questions.
The psychology of investors and the importance of educating yourself and networking.
“Begin with the end in mind, as they say, and don’t do anything that you can’t scale to 7 or 8 figures.” — @SimplepassiveCF [0:12:00]
“The gold standard is going into a deal where you already know a buddy who has invested with these guys in the past and gotten the money back.” — @SimplepassiveCF [0:43:07]
Links Mentioned in Today’s Episode:
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