Reverse Engineering the Wealth-building Strategies of the Rich with Lane Kawaoka

03/30/21 • 33 min

The traditional methods of building wealth, like investing in postgraduate degrees, working for up to 50 years in your W2 job, and putting money towards your 401(k) mutual funds are all good and well, but they’re not the best strategies out there. Why not begin with the end in mind and have multiple streams of income today? Today’s guest, Lane Kawaoka, can help you do just that. Lane uses his engineering degree to reverse engineer the wealth-building strategies that the rich use in his top 50 investing podcast, Simple Passive Cashflow. He owns 4,200 rental units and is the leader of the Hui Deal Pipeline Club, which has acquired over $350 million of real estate by syndicating over $40 million of private equity since 2016. In this episode, Lane shares his advice for doing what the rich do by diversifying into real estate and investing with private operators, and he explains why he believes you should not invest in retirement accounts, how taxes play into your investments and his three rules for investing. Tune in today!

Key Points From This Episode:

Hear about Lane’s background and what sparked his interest in passive investing.
Lane’s journey from his first passive investment to a business and a podcast about it.
How the podcast originated because of the “dumb questions” his friends asked him.
The virtual events that have adapted to COVID and the limited time of those with families.
Do what the rich are doing by diversifying your investments into real estate.
The benefits of investing with private operators and cutting out the middleman.
Four reasons why Lane believes you shouldn’t invest in retirement accounts.
How taxes play into real estate investing; using your passive activity losses to offset passive income gains from an asset or deal.
Some of the lessons Lane has learned along the way, like letting every dollar work for you.
The importance of educating yourself on the benefits of using podcasts and blogs.
Why Lane believes that anybody can do real estate investing; it’s an endgame strategy.
Lane’s three rules for investing: it must cash flow, be a hard asset, and be leverage-able.
Keys to Success: the value of building organic relationships, why Lane is so proud of quitting his day job, and book to read.
Lane’s one key to success: figuring out the next thing to do and executing it to completion

Links Mentioned in Today’s Episode:

Lane Kawaoka on Twitter

Lane Kawaoka on LinkedIn

Simple Passive Cashflow Podcast

The Millionaire Real Estate Investor

Key Points From This Episode:

Hear about Lane’s background and what sparked his interest in passive investing.
Lane’s journey from his first passive investment to a business and a podcast about it.
How the podcast originated because of the “dumb questions” his friends asked him.
The virtual events that have adapted to COVID and the limited time of those with families.
Do what the rich are doing by diversifying your investments into real estate.
The benefits of investing with private operators and cutting out the middleman.
Four reasons why Lane believes you shouldn’t invest in retirement accounts.
How taxes play into real estate investing; using your passive activity losses to offset passive income gains from an asset or deal.
Some of the lessons Lane has learned along the way, like letting every dollar work for you.
The importance of educating yourself on the benefits of using podcasts and blogs.
Why Lane believes that anybody can do real estate investing; it’s an endgame strategy.
Lane’s three rules for investing: it must cash flow, be a hard asset, and be leverage-able.
Keys to Success: the value of building organic relationships, why Lane is so proud of quitting his day job, and book to read.
Lane’s one key to success: figuring out the next thing to do and executing it to completion

Links Mentioned in Today’s Episode:

Lane Kawaoka on Twitter

Lane Kawaoka on LinkedIn

Simple Passive Cashflow Podcast

The Millionaire Real Estate Investor

Previous Episode

“Not Every Property is Going to Be a Homerun, But You Will Hit Them” with Charles Carillo

Charles Carillo was introduced to real estate by his dad at a young age, and although it didn’t immediately appeal to him, since finding his feet in the industry in 2006, he has never looked back. He shares the story of how he took his very first property from 0% occupancy to 100% occupancy in 90 days. Although the work Charles did on that property is still his proudest moment, he has come a long way since then, and as managing partner of Harborside Partners, he is now in charge of numerous properties. Charles explains why having more properties in your portfolio is far safer than having less, offers advice for making the property management process as seamless as possible, and gives examples of metrics that he uses to determine how his sales are doing. We also delve into the reasons that Charles prefers to work with investors who have worked through part downturns, the importance of setting goals, the elements that give you a competitive advantage in the real estate sector, and more. Remember, you aren’t going to be hitting home runs all the time with real estate investing, but when you do it will be worth the wait!

Key Points From This Episode:

The introduction to real estate Charles received from his dad, and why it didn’t appeal to him at first.
Why Charles will only buy in certain asset classes.
How Charles’s company has grown from 2006 to the present.
The factors which motivated Charles to enter the real estate industry and how his approach differed from his dad’s.
Benefits of scaling up and owning lots of units.
Advice for making property management as easy as possible, whether you are doing it yourself or using a company.
Ways you can still keep a level of control of your properties if you are using a management company.
Team members and VAs are vital parts of Charles’s business.
Where Charles does his marketing for his properties.
Examples of metrics that Charles’s uses to determine how his sales are doing.
The elements which give you a competitive advantage: capital, relationships, and more units.
Why Charles likes working with investors who have gone through downturns in the past.
Charles shares why the first property he bought was the proudest moment in his career, and probably the craziest.
Real estate investing isn’t all about the home runs.
Charles’s top two book recommendations.
Why setting short-term and long-term goals has been so helpful to Charles.
How you can get in touch with Charles if you want any advice on setting your own goals!

Links Mentioned in Today’s Episode:

Charles Carillo

Harborside Partners

Global Investors Podcast

The Art of the Deal

The 80/20 Principle

80/20 Sales and Marketing

Kent Ritter

Next Episode

Preparing for Financial Freedom with Todd Miller

Achieving financial freedom requires having the right mindset about money. Having found his own financial freedom at the age of 35, financial coach ‘Tightwad’ Todd Miller knows how to safeguard and grow wealth. Today we speak with Todd to hear his insights on preparing for your financial freedom. After sharing how he went from the corporate world to becoming an investor, Todd unpacks how he helps his clients to become financially independent. From curtailing your expenses and raising your financial awareness to shifting your perspective on what’s important in life, we touch on the key aspects of effective wealth management. We discuss the small actionable steps that you can take to set and stick to budgets while also diving into debates around saving versus investing. Later, we talk about communities that can help you build your wealth, along with questions that you need to be able to answer and that can guide you in creating investing goals. We wrap up our conversation by hearing Todd’s book recommendation, what he’s most proud of, and the top key to his success. As Todd explains, your path to financial freedom starts now. Join us for Todd’s expert advice on taking your first step.

Key Points From This Episode:

We introduce financial coach Todd Miller.
Todd shares details about his journey to financial freedom.
How Todd discovered and then learned about real estate investing.
What Todd does to help his clients grow their wealth.
Hear what goes into planning for your financial freedom.
Exploring the mindset shift that’s needed to attain financial freedom.
Advice on budgeting and holding yourself accountable.
We ask Todd how long it takes to secure financial freedom.
Debates around saving versus investing.
Why you should act now to ensure a stress-free retirement.
The questions that every investor needs to ask themself.
Todd’s top book, what he’s most proud of, and his number one key to success.

Links Mentioned in Today’s Episode:

Todd Miller on LinkedIn

Your Money or Your Life on Amazon

Ritter on Real Estate - Reverse Engineering the Wealth-building Strategies of the Rich with Lane Kawaoka

Transcript

“LK: If you want to just be like everybody else, we know what's going to happen if you keep doing what you're doing. I know without a doubt what's going to happen if you keep investing in your 401(k) and paying down your mortgage, like my parents, right? And the crazy thing is it works. It just takes a long time. In 40, 50 years, yeah, you'll pay off your house and your net worth would be somewhere around a million. But I see the financial profiles of t