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Posted almost 8 years ago

How to Achieve Simple Passive Cashflow

Create sustainable cash flow with real estate

Aloha from Honolulu! Lane Kawaoka is a city project engineer and professional engineer by trade. Since he possesses that engineer’s mindset, Lane decided to apply it to a career in real estate.

Lane’s passion project is called Simple Passive Cash Flow. He’s a mentor who helps his clients get started in and navigate the tricky world of real estate investing. Lane partners with investors who are busy professionals like engineers, lawyers and doctors who want to get into the real estate game but don’t lack the time and expertise to understand all of the intricacies of the real estate investing world.

Real estate is like an intense cross fit workout – you have to “chip away at it” and you will be successful.

Cash flow markets versus Appreciation markets:

  • Appreciation markets are defined by Rental Value Ratio, which is the monthly rent divided by the cost of the home. The appreciation areas or primary markets are places where everybody wants to live. When demand is high, the rental value ratios get pushed down.
  • Cash flow markets like Birmingham, AL, Atlanta, GA Indianapolis, IN, Kansas City, MO and Memphis, TN don’t experience explosive appreciation. However these markets guarantee enough cash flow to replace your working income, giving you the freedom to do what you want.

Five key points:

  1. 1) If you don’t have time to manage your own property, hire it out.
  2. 2) The single-family home is a prerequisite when you start investing in real estate. You learn the fundamentals working with single-family homes. It’s the starting place before participating in other people’s deals / syndications as a passive or lead investor.
  3. 3) Single-family home investment is not highly scalable. Once you have gained adequate experience with real estate investment, it’s time to transition into multi-family property or other commercial real estate syndications.
  4. 4) While investing in real estate you’re not going to be doing everything all the time. Certain times will require max effort and high intensity to maximize a deal and close a deal.
  5. 5) Once you set yourself a goal as a real estate investor you have to focus on doing one thing at a time until you cross the finish line Chip away, you get more done by going steadily.

Pro Tip: Building an effective network – your net worth is your network. Always be adding value to others.

Check out all of the free gifts and tune into The Simple Passive Cash Flow podcast here: http://www.simplepassivecashflow.com

Drop Lane an email with any additional questions you have, [email protected]

Thank you Lane for taking the time out of your day to share your story and real estate experience with us.

Tune into our conversation here -  iTunes, Stitcher or Google Play

Invest well,

John Carney 

The Real Estate Locker Room Show with John Carney



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