Engineered Wealth Podcast

Ep. 15 | How to Generate Passive Income from Real Estate with Doug Smith

June 20, 2022 Joseph Bramante
Engineered Wealth Podcast
Ep. 15 | How to Generate Passive Income from Real Estate with Doug Smith
Show Notes

Doug Smith is the CEO of Hawthorne Capital, an investment firm focused on real estate. In this episode, Doug shares his lessons learned about generating passive income, and how he generates a high rate of return on cash flow-based real estate investments by buying and selling land outside of Houston. Doug also offers secondary loans to buyers who want to build their own home, which he believes is a more personal and less stressful experience than going through a traditional lending process.

Previously a software developer for ExxonMobil, Doug has gone on to buy and sell over 100 houses and over 3,000 acres of Texas land. Much of that land has been transacted from within Hawthorne Capital, thus providing its investors with predictable passive income. Doug was recently named to the Houston Business Journal 40 Under 40 list and learned Spanish after spending a year living in Spain and Chile.

[00:01 - 14:47] Opening Segment

  • Introducing Doug to the show
  • Borrowing money from a bank at 5% interest
  • How the typical buyers of real estate limit the tax advantages of investing

[14:46 - 21:45] Getting Incredible Returns as an Investor

  • Purchasing land outside of Houston
  • Why is Hawthorne Capital better than the local banks?

[21:45 - 35:39] Embracing a Peer Group of Successful People

  • Site development can be done for a property at a much higher cost than buying land
  • Rural land deals can be difficult to find and take on a lot of risks
  • Surrounding yourself with people who are already successful to grow

[35:39 - 42:45] Becoming a Passive Income Millionaire

  • Creating a team that can run itself
  • Acknowledging fear in the beginning and moving forward
  • Not losing sight of previous successes

[42:45 - 47:43] Closing Segment

  • See the links below to connect with Doug!
  • Final words


"Just everything in life you just gotta surround yourself with people that are already doing what you want to be doing or have some success for you to emulate." - Doug Smith

Connect with Doug on LinkedIn, or visit


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