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Tune in to learn about Lane Kawakoa’s experience purchasing more than 4,200 multifamily units valued at more than $460 million. Lane is also the host of the Simple Passive Cash Flow Podcast and founder of Crowdfund Aloha.com and REI Aloha.com.
In his prior day job, Lane managed over $250 million of construction projects.
Episode Highlights:
- After you master your core business it’s wise to start diversifying into other complementary asset classes such as real estate development
- Real estate development in some cases can be cheaper than buying an existing building that’s often at least 20 to 30 years old. The biggest downside of doing a ground-up build is that you don’t have any historical financials to rely on
- Depending on your financial situation, it might make sense to continue renting your primary residence and use that lump sum of cash required for a down payment ot instead invest in single family rental properties or syndication deals as a passive investor
- To reverse the traditional pyramid of investing, invest in cash flowing prudent investments that build the base of your pyramid and do not invest in growth stocks that conventional financial advice suggests
- 1031 exchanges are not actually the valuable tool they are typically touted to be. It’s usually more efficient to use capital losses and depreciation to offset the capital gains realized on the sale of the asset to avoid accruing an increasingly larger tax liability that can only be avoided at the time of your death
- When vetting a syndication deal to invest in as a passive investor, focus at least 50% on the numbers and 50% on the sponsor. Some key red flags to be aware of are annual rent increases of more than 3% and thin cash reserves
Helpful Links:
https://simplepassivecashflow.com/
Best Way to Contact Lane Kawaoka:
lane@simplepassivecashflow.com