TGCI 130: Switching from Private Sector to Public sector so that he can INVEST!

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Episode 130: Switching from Private Sector to Public sector so that he can INVEST!

Copy of EP #18 - 2 Guests

Summary

In today’s show, Pancham interviews Lane Kawaoka – engineer-turned-investor, leader of the Hui Deal Pipeline Club, and the host of Simple Passive Cashflow.

After turning his own home into a rental property, he accidentally discovered his ticket out of the rat race – real estate investing! So, he left his W2 day job and has now acquired over $500m of real estate properties and has been syndicating over $60m of private equities!

In this episode, Lane proves that financial freedom is possible as he shares how he diversified his investments, discovered his niche in private placement syndications, and the strategy that best works even in recessions! He will also share witty insights and advice that can help you with your investing decisions. 

 

Listen and enjoy the show!

PanchamHeadshotTGCI
Pancham Gupta
Screen Shot 2021-05-28 at 8.55.46 AM
Lane Kawaoka

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 0:59 – Pancham introduces Lane to the show
  • 2:19 – How he went from engineer to full-time real estate investor
  • 4:37 – Switching from rental properties to private placement syndications
  • 8:19 – How being in a public sector helped with his investing career
  • 12:20 – What his current portfolio looks like
  • 14:47 – How he survived his identity crisis and pursued investing
  • 16:54 – How his recession-resilient strategy works
  • 19:27 – Using your goals to determine the life you want to live
  • 25:24 – Taking the Leap Round
  • 25:24 – His home-turned-rentals as his first investment
  • 26:18 – Overcoming analysis paralysis and letting the numbers decide your plans
  • 27:35 – Why investing with a wrong person is a cause of failed investments
  • 30:06 – Why investors should simply do the math
  • 33:07 – Lane’s contact information

3 Key Points:

  1. Rental properties are a good way to start off your investing journey.
  2. Know what you really want to do in life and pursue that because at the end of the day, you’re doing these things for yourself.
  3. Identify the investing strategy that works for you, your lifestyle, and your income goals. 

Get in Touch:

 

Read Full Transcript

Welcome to The Gold Collar Investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high-paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host, Pancham Gupta.

Hi there, I’m Robert Helms host of The Real Estate Guys radio program and if you want to have better results in your life you gotta put better ideas in your mind. You’re in the right place. You’re at The Gold Collar Investor podcast.

Pancham Gupta: Welcome to The Gold Collar Investor Podcast. This is your host, Pancham.  Really appreciate you for tuning in today. I have the pleasure of interviewing another engineer on the podcast. He graduated in 2007 and started investing in 2009. Accidentally, he quit his job about two years ago after successfully investing you know for the last decade or so, and finally had enough cash flow to quit his day job. A bit about Lane, Lane owns 4500 rental units and is the leader of Hui Deal Pipeline Club, which has acquired over $500 million of real estate by syndicating over $16 million of private equity since 2016. Lane uses his engineering degree to reverse engineer the wealth building strategies that the rich use in the top 50 investing podcast simple passive cash flow.  Lane, welcome to the show.

 

Lane: Yeah, thanks for having me, Pancham. Aloha everybody.

 

Pancham Gupta: Yeah, no. So, it’s absolutely pleasured to have you on the show today. Always fun to talk to fellow engineer to have on the show. So, before we begin, are you ready to fire up my listener break out of Wall Street investments?

 

Lane: Well, I don’t want to fire ’em up too much because we need somebody to do the freakin engineering work in the cubicle because I sure as heck ain’t doing it. You’re not doing it anymore. So, somebody’s got to do it. So, take no action guys. keep investing in Wall Street and be a good little boy, girl out there. Keep doing what they told you to do.

 

Pancham Gupta: I like that little sarcasm, 

 

Lane: no, sarcastic, -inaudible- sarcasm. 

 

Pancham Gupta: Sarcasm man. All right cool. So, Lane, you know, tell our listener about your background, and more importantly, the person behind that background.

 

Lane: Yeah, so I think a lot of people listening we’re all the kids whose parents taught us to be very frugal with our money, study hard, go to school. I don’t know how you decide to be an engineer, but I think I was halfway decent at Math and Science. So that stupid c’mon that they sent me to. So became an engineer in college coz I happened to be the last man standing or one of the few people standing after all those first initial level calculus, chemistry, and stuff, I have long forgotten. Yeah, started working as a construction supervisor and was working on the road all the time. It’s still following all that financial dogma that they say to go buy a house, live and so that’s exactly what I did, but I was never there because I was working on the road all the time. My construction projects are always out in the wild blue yonder. So, I decided to rent it out and this is when I was in Seattle, Washington. The mortgage was 2200 bucks a month,, the PITI was 1600. To a  young, 20 something year old kid that was a lot of beer money back to but that was kind of how I got the red pill of finance and realize, wow, this is my ticket out of that rat race. Second, quit this job ,engineering job again, like,

 

Pancham Gupta: When was that? Like, what year was that?

 

Lane: Graduated college in 2007 and took me a couple of years to save for that house. So that was around 2009-2010, and I had that epiphany, so well over a decade ago.

 

Pancham Gupta: Great time there. Were you, you were working for Microsoft?

 

Lane: I was construction. So, I was working for the railroad, construction supervisor. So, I, I kind of manage a lot of like blue collar union base workforce, suck, absolutely sucked. Bunch of whiny babies. I was never a good design engineer, I couldn’t design anything so went into project management, right? You don’t need to know anything, just be a project manager that I kind of went into

 

Pancham Gupta: Okay, so yes, see, I’d somehow I thought when, yeah you said Seattle, I thought

 

Lane: Yeah everybody thinks that right? but y’all don’t work for Amazon. Some people have to make real construction products. Virtual stuff. 

 

Pancham Gupta: Okay, alright. So that was when 2009-10 you started investing, you said PITI, which is principal, interest, taxes, insurance, for people who don’t know. So, you started making some money, light bulb went off, then what happened?

 

Lane: So, I bought a couple more rentals in Seattle, then this was around 2012 and the market started to pick up and I realized I was like, what the heck, I’m not cash flowing anymore, right. And as I think a lot of the listeners know, you know, sophisticated investors don’t buy properties in primary markets such as New York, Boston, Seattle, California, Hawaii, the prices are just too high, or more importantly, the rent to value ratios don’t support the investment. So, I started to look other places. I bought a property in Birmingham, Alabama, it was one of those little turnkey rentals that I bought, totally sight unseen. The numbers work the rent, the value was 1% or higher. So, you take that by taking the monthly rent divided by the purchase price. And that’s a quick and dirty rule to kind of know if you’re going to be able to cash flow after repairs, expenses, professional property management, because we’re not we’re not landlords, we’re investors here. And, you know, any capex that might pop up or vacancy issues. So, I tried that Birmingham rental, and you know, what the dang thing work, so I sold off the Seattle properties, and then continue to save up more money. And all this was while I was working passively, or I was working passively at my day job, It’s kind of true

 

Pancham Gupta: And I was like, oh, working passively.

 

Lane: Yeah, yeah, you know, barely getting by, you know, just saving up my money. And then around 2015, I had 11 rental properties. But then I realize, I think a lot of credit investors realize that rental properties are kind of a pain in the butt, they’re not scalable. You know, I had an eviction or two every year with 11 properties, that kind of big issue or catastrophe that happened every quarter like  a tree fell on the house, you know, some kind of washed out or plumbing repair, some kind of issue which is no problem because I had professional property management, but it’s just not scalable, all for what maybe $3,000 passive. I mean, that’s nowhere near what most American families need to survive. So that’s what I went searching for. There has to be something better than these dinky thingy family homes. And that’s where I found the private placement syndications investing in multifamily, well, and then I found you. 

 

Pancham Gupta: Yeah. Didn’t we meet probably four years ago, now? I don’t remember. That sounds about okay right to me. So, in 2015, you have these 11 properties? Are they all in Birmingham, Alabama, or multiple places?

 

Lane: Yeah , they were spread out. I think I have five in Atlanta, four in Birmingham, one in Indianapolis, one in Pennsylvania. And the kind of the idea at the time was like, you know, I’m going to cluster this stuff, like five or eight in one area. So, I have several teams diversify. But you know, you don’t know what you don’t know, right. And then, you know, by the time I found you, and I found a lot of other similar people, you may start to interact with a different crowd, right, higher net worth working professionals, doctors, lawyers, engineers, and they all did what we did. We’re all kind of kindred spirits, we all had rental properties. And we all came to the same conclusion is like, what a waste of time that is but don’t get me wrong. I mean, I think it’s great when, you know, when I was younger, and my net worth was under half a billion. I think that’s the great thing to start off with, that’s how you learn this business.

 

Pancham Gupta: Yeah, I think that’s, you know, people sometimes forget where they get started. And but I think that’s the place where you kind of got through the ropes and the business with while not having a lot at stake. So okay, you had these 11 properties, and you were in these different places. And now you started getting these calls, and it was not scalable, you found passive, the place private placements, and you know, different crowd. So, what did you do? Did you sell all of them off? Or like, what was your plan? Are you still working full time job, right?

 

Lane: Right. So, working a full time job able to put away I think, at the time, at least 50-60 grand a year. Prior to that, for several, I think four or five years, I actually worked on the road 100% of the time, I didn’t pay any rent, or mortgage so I was able to put away over 100 grand a year that went to my rental property. So that really helped expedite my net worth growth up to that point, but a little bit around there like I quit the private sector job went more into government work. And that’s when the real passive working started. Shoutout to my government workers out there. Good quality of life, or hashtag good quality of life, right? Whatever that is, because I didn’t need money, right? Like I had, you know, living beneath my means. You start to realize that you trade time for money and if you don’t need to make as much because you could supplement that with cash flow from your rentals or of a simpler in a more minimalistic life. You don’t need to make as much so why, you know, grind the grind still go after those higher, more stressful jobs. So, I think a lot of us investors as we kind of get to the end of our working W2 careers. We kind of shy away from promotions,

 

Pancham Gupta: Your government job, right like when you said you’re passively working in the past, like the private sector, you actually went to the government sector. I actually didn’t know that. That’s pretty awesome. So

 

Lane: Yeah, they were like, well, what are you doing? You’re passively investing. You’re passively working. What the heck are you active? Like, I’m active in life, working out. Go for the CrossFit Games champion shit, you know, like, try to do some hobbies, but my hobby became real estate, I guess.

 

Pancham Gupta: Yeah. So okay, you, going back to where you were, right? So, you kind of dabbled with your, you had this money saved up, you were traveling and all that. And then you went to the government sector? Like, where are you today? Like, have you transitioned fully into, do you still buy single family homes? or you’re fully passively investing? What do you do?

 

Lane: Yeah, so I slowly and I tried out a syndication as a passive investor, try it out. And you know, it worked. I felt comfortable with it. And I realize, like the turnkey rentals, the analogy, I like to use it, my folks, it’s kind of like you’re floating around a little rowboat by yourself with no oar no motor. As the tides go left and right, which is synonymous with the market, you know, you’re kind of sloshed around in the waves. There’s no value add strategy, which is your castling and that’s cool. And it’s still better than anything you’re going to get in the stock market. But to kind of really make hay, you’re going to have to do that first strategy, which in my opinion, is cool for lower network guys, right? first for both people. That’s just not what high network type work that professionals do.

 

Pancham Gupta: Can you explain what that is really quick for people who don’t know.

 

Lane: Yeah. so, a lot of these kids, they’ve kind of coined this term first strategy by rent, rehab, refinance, repeat, rinse, something like that. When they buy a beat up property, cash, and they fix it up and they rehab it, and then they get a refinance on it full on all their equity, sounds really cool in a vacuum. But there’s a lot of issues wrong with this. They’re working with a contractor that’s not sophisticated, like, nowhere near the contractors that you and I work with, on these large apartment deals. Working with bonafide commercial contractors, instead of like Toolbox Tim , who’s going to screw you over, a few runs into some family financial troubles and steal your 30,40 grand. And it’s just like, it’s all ordinary income, when you’re good at your house flipper. It’s a day job doing that type of stuff. It’s just not for accredited investors.

 

Pancham Gupta: Right? Okay, so right now, at this point, you’re just 100% passive, 

 

Lane: Well, I started to do the passive thing and then I started to sponsor and syndicate my own deals. So that’s what I kind of do these days. So, 80% of my portfolio is I’m a general partner in multifamily workforce housing apartments, is what I kind of understand. And then with a small portion of my portfolio, 20%, I’ll dabble in some other LP holdings, some other asset classes, storage, mobile, home parks, I really like online businesses, like not like startups or anything crazy like that, but like buying distress, but like cash flowing businesses, improving them. But that’s just kind of a hobby of mine. But you know, in the future, I want to turn into a complete investor, right? diversified over multiple asset classes. To me, it’s fun to go around, meet people learn about different businesses, diversify,

 

Pancham Gupta: You at this point have fully quit your passive government job too, is that right?

 

Lane: Yeah. Yeah. Which is, for a lot of people, they, when you get to that stage, you’re kind of like, does this make sense, right? Like, if I weren’t a syndicator sponsor, I probably would have been still working my day job. And that’s what I suggest for a lot of passive investors. If you can work a couple hours a day still collect your six figure salary, by all means, do it. That’s the American dream right there. Of course, still be productive and, you know, get along with your coworkers and for your, for your way. Yeah, which a lot of people high achievers can tend to do. But for me, it was like it was just kind of distracting me from like, going finding more deals is becoming overwhelming. And I think that’s, that’s what separates, you know, professional syndicators from the rest, right. And I think you and I both started there. We started as a part time thing, built up systems, but the professionals and when I meet professional, it’s all in the true sense of the word. A professional does this full time. They’re not doing it as a side gig. And I think it’s a little irresponsible to take in investors capital if this isn’t your full time job.

 

Pancham Gupta: Yeah, no, absolutely. 100% agree with you. And also, it comes down to what you really want to do in your life, right, and money is one thing, but what do you enjoy doing? And this is something I believe you enjoy doing. So, you know, at this point, tell me did you have to go over any mindset struggle about quitting, back were you at the crossroads and did you have to really get over some hurdles?

 

Lane: Yeah, a lot, quite a bit. I mean, you know, you go through your life, you go through what doesn’t, I had a master’s degree and like, your parents think of you as an engineer or a doctor or whatever, and you start to go through this identity crisis, right? When you introduce yourself, I am Pancham.  I’m an engineer, right? That’s your identity, right? It was my identity. And to shed that, after you put in all those parts, were in tears, of going to school, studying your butt off working really hard at a company. And to just kind of throw it away. It seems very illogical, right? Especially if you’re working a couple hours a day, or a couple of hours a week to make that nice salary. It’s incredibly illogical. When exactly what you say it at some point, it’s like, well, what are you doing to sell for? And have you launched yourself off into? have you achieved that escape velocity where you don’t have to come back to Earth, or to that day job? And I’ll tell people like, there was a lot of journaling. I kind of have a blog article, simplepassivecashflow.com/wit, it’s like the questions I asked myself in a systematic order, where I realized that yeah, it’s time for me to go and do my passion. And at least stop wasting my time at the big two separate secret lives as a passive investor, passive worker. 

 

Pancham Gupta: Yeah, one thing that you’d said, this suddenly quite resonated with me, and I never actually thought about it but now you say it is like identity crisis. And, you know, back when I quit, for first six months, if someone or even now sometimes that happens, but not as much as it was before, someone would ask me, what do you do, right? Like, I was like, Oh, you know, I’m an engineer, and you know, whatever. Like, I was always thinking to myself, what, yeah, I’ve spent 14 years in the engineering job and really building systems. And now I don’t do any of that. Thank you for sharing that. So now, you know, okay, fast forward, you quit your job. Suddenly, COVID happens, right? COVID crisis in the back, in the march of 2020. It was like Sky’s falling, things are going crazy, to now. With all that happened, like, my first question is, did you change your strategy around investing because of COVID-19? And what did you do around that to make sure that if you were investing during that time, to have the positive mindset, and still went ahead with investing?

 

Lane: Yeah, I mean, I’ll take you right through it, right, like I think it was in March, when kind of the world was changing very quickly and rapidly. And the time I had, or I think, like 3500 units. And I had never gone through anything like that, nobody has, right. So of course, you’re kind of like pucker a little bit. You’re like, oh, how is this going to happen? But as things unfolded, I think the first stress test was that March collection since things were pretty decent. Normally, we collect 97% of the rents. And then April was really a big, I don’t know if you remember, but April, I was probably more concerned with April collections than March. And it may be dropped on a little bit, some of the properties that proved collections because people weren’t moving out. And they’re kind of stuck where they were. But, you know, coming through the summer, things started to pick up again. And yeah, we weren’t able to get the rehabs done as quickly as we’d like, because people weren’t moving out for the most part. But you know, after that I was very, like, I felt so confident in the strategy that for I was just kind of fortunate, I have gratitude that we selected where you go after stabilized apartments that are, you know, cash flowing they want. And there’s a value add strategy to bump the rents up with a little bit or rehab. And, you know, God, darn it, like it’s not a risky business plan. And this is the reason why we do it. When uncertainty happens, like epidemic of all things or recession, we’re doing pretty well, because in this country, the population is going up, the lower middle class is growing, they need this type for workforce housing. And now I’m even more confident in this type of scenario, if we can find properties that the key is the cash flows they want,

 

Pancham Gupta: Yeah, it’s getting harder and hard given the prices have been going up and up to find properties that cash flow. So let me ask you this. This is my last question or two questions before we move on to the second part of the show. What advice would you give to someone, let’s say who is in your shoes, you know, he’s thinking about quitting, maybe doing active job? Not passive job, right? Or maybe somewhere in the middle? Like what advice would you give to that person about quitting?

 

Lane: Depends on where you’re at? I mean, have you got already got traction, right? Like I’m not a big believer in, especially high paid professionals, to quit their jobs. Leave that to people who make less than 50 to 80 grand a year, they don’t make much money. So, it’s not a big deal for them. But it’s a huge deal for working professionals. Yeah. So, I think you have to address what your goals are. Everybody has different goals. I mean, the reason I think you have meek wit is that we wanted to make an impact and grow our net worth to several seven, eight figures, and above. Now, some people aren’t like that some people, they just want to make $5,000 passive cash flow a month, or 10, grand, maybe even 15 or 20, you could do that as passively investing. And if you can use your day job as the crux to continually invest, save your money. I mean, just do the math on your own. Put on a spreadsheet and figure out when you’re going to achieve that passive cash flow number if you just keep putting money into your investments. And if you want to quit your job, we’ll make sure you have proof of concept of it before you pull the plug. But also, it needs to be aligned with your goals because you simply just want to live a simple life with you and your family and have you know, you know pretty decent wine budget, passive cash flow 10,000 to $20,000. Just be a passive investor and keep working your job. You don’t have to work at it for 10,20 years. You just work at it for a handful of more years and call it quits when something happens that you don’t like. 

 

Pancham Gupta: Yeah, oh, great advice. Thank you for sharing that. So, my last question for you is do you have any morning routine that you follow? If so, what is it? And do you think that attribute to your success?

 

Lane: I mean, I don’t medicate? I don’t I mean, when I wake up here in Hawaii, it’s like noon time for you guys. You guys have just blasted all my inbox, email requests. No, I cannot fill up my gold journal and do 20 minutes of meditation. I don’t do that stuff. I kind of do everything that you’re not supposed to do a diamond and box we need to address, you know, wildfires and investor relations. So, I probably shouldn’t improve that, but it is what it is. 

 

Pancham Gupta: No, I think it works for you. It works for you, man. And you don’t have to change the I will tell you though, that I’ve been thinking about coming to Hawaii. And when you said Hawaii, like it’s just awesome place that you’re in and you wake up in the paradise every day.

 

Lane: I will have to warn you, I mean investors, they always come out here and we meet and they’re always like, they’re all stressed out a little bit because they have to wake up at five o’clock in the morning to kind of, especially if it’s kind of like a working vacation. They got to check their emails because the rest of the world, you guys are six hours ahead of us.

 

Pancham Gupta: Yeah, I can imagine that. That’s kind of crazy. Like how does the wiring deadline work for you?

 

Lane: It doesn’t. Everybody knows Lane’s just gonna be late. It will get there on Monday, you know, relax. I try and expedite signings and do the whole wiring run. But I know there’s no way by you know, I got to scan the documents notarized them it said that FedEx is not gonna get there, who you kidding? It’s not like it’s going from Michigan to like Texas. Yeah, it’s a lot quicker than going on the Pineapple Express so

 

Pancham Gupta: Crazy. Yeah, no. Okay. I always used to wonder even for the people on West Coast wiring deadline, you know, I don’t know how that works for like, it’s hard to get -inaudible- 

 

Lane: Just gotta plan ahead, you know. I mean,

Pancham Gupta: Yeah. Cool, man. Well, thank you for sharing that. We’ll be back after this message… If you are an accredited investor and have been thinking about putting your money to work for you, then I have a good news for you. I have created an investor club, which I call The Gold Collar Investor Club. I will be putting together investing opportunities exclusively for the group. These are the opportunities where I have done the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on thegoldcollar investor.com/club. I repeat, thegoldcollar investor.com/club. I will reach out to schedule a 30 minute phone conversation to discuss your investing goals. Once you sign up, this can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some passive income. And in case you are wondering, what is an accredited investor, accredited investor is someone who has earned more than $200,000 as filing single or more than $300,000 filing jointly for last two years. Another way to qualify as an accredited investor, if your total net worth is more than $1 million, excluding your personal home, it includes your stocks, 401k’s, IRAs, cards, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up… So, let’s move on to the next section of the show. I call this taking the leap route and ask these four questions to every guest on the show. My first question for you is, when was the first time you invested outside Wall Street?

 

Lane: So, I had bought my first house to live in some accidental landlord, but I changed it from a primary residence to around the property. This is back in 2009. So, it’s kind of lame. Like, I’m not like a lot of people who have to take that leap of faith, I kind of stumbled upon it accidentally. But I kind of went with it. And I think I felt almost uncomfortable investing out of state when I started to invest Birmingham. And then it’s another big step when you start to sign up private placements. You’re going off 50 grand or whatever the minimums are, saying this 150 page document that you, haven’t read most of it. So legal jargon, anyway, can be intimidating. But after a while you get desensitized to it. You don’t worry about it after a while.

 

Pancham Gupta: Right? Yeah, actually, this segues into the next question like, did you have to overcome any fears when you bought that first one? I know you kind of stumbled upon it. But did you have any fears at all?

 

Lane: I think this is the worst. Some engineers like are very like analytical and sometimes it can like work to your detriment where they do analysis, paralysis, and just get so many data that’s inconclusive, and they freeze. But for me, I’m kind of like, I look at the data I make and I’m like, alright, I got to make a decision one way or the other. And for me, I let the numbers drive what I’m going to do, I just map out, like, on a spreadsheet, and I looked at numbers told me what to do. So, to me, it made complete sense that if I bought a rental property, that line money would grow via cash flow markets, paid down appreciation, and get all these tax benefits. Like this is a no brainer. Really the only, the only pause I had is like, why isn’t everybody else doing this? This makes so much sense, right? Am I crazy? Is there something weird about me, right? But then I think that’s where expanding your network with pure passive investors comes into play, because you start to realize you’re not crazy. It’s all those other 99% of people in the cubicle land that are crazy investing into stuff that they did to buy Wall Street.

 

Pancham Gupta: Alright, cool. So, my third question for you is, can you share with us one investment that did not go as expected?

 

Lane: Yeah, I mean, it’s happened to me a couple of times the best thing with the wrong person, I mean, syndicated deals, I feel are stronger, because it’s cash flow, and there is a business plan to value out the property. So, I don’t know why you would do anything else. The only hard thing about syndications is a lot of anybody can kind of do them, right? Anybody who’s working their day job can kind of do this on the side, create a pitch deck. I mean, it’s all marketing, colors at the end of the day. So how do you determine that you’re investing with an honest person, right? Because the only reason these deals fall apart is typically there’s a dishonest person stealing money. I mean, I’ve heard so many stories, and a lot of these stories get untold. It’s all through your personal network and it’s always private. There’s never going to be any website that tells you about who to stay away from. With web to point on the internet, it’s getting a little bit better. But you know, most people don’t want to kind of talk bad about people. So, it’s all going to be in a tread lightly build a network of pure organic relationships, and, you know, always go off for referrals, and especially referrals, where that referral have actually invested with them, sounds obvious, but there are a lot of people that will make referrals that they have invested with the dude. Just want to sound cool. Go figure.

 

Pancham Gupta: So would you say the ones that your investments where there was a person who was dishonest, and you invested passively in the money. Yeah, that was you 

 

Lane: Right. And then one of those in particular, I had gotten a referral from somebody that I didn’t really know and come to find out that person didn’t even have a clue about investing and they didn’t invest their own money. Sort of invalidated the referral. But you know, and that’s all part of the game, right. And that experience I can take for and use it as leverage to build more relationships with other people, hear their stories, their school to stay away from, and you’re not going to have the network to be able to do this at first three years, this is not gonna happen. You’re going to have to kind of take the chances we make possibly make a mistake like how I did, that’s just how it is. But after a while, you start to find the pool of good, honest people to work with and they typically stay stick around with other people. They know other people.

 

Pancham Gupta: Yeah. So true, man. This is relationship game, cool. So, my last question for you is, what is one piece of advice would you give to people who are thinking of investing in main street that is outside of Wall Street?

 

Lane: Hey, you guys want to keep working at your day jobs for 40,50 years and do what everybody else is doing? By all means, do it, right because we know what’s going to happen. We know what the returns are going to be. And we know that they’re taking all this fees, regardless of if they make money for you or not. Why would you not want to do it? Can you sense the sarcasm? No, we’re doing this for the podcast.

 

Pancham Gupta: Yeah, I do. I think I absolutely love you know, this change, because you’re probably my first guest, where we have had some bit of sarcasm here. 

 

Lane: Yeah. This whole system is engineered to keep us all working for 40,50 years. If people just bought a handful of rentals, do exactly what I tell them to do, I mean they’d be on the path to financial freedom and typically in five to 10 years or less. I mean, who would build our bridges, who would get our coffee with programmer Peter thing or chiggers, right? Like, our society needs people to keep working and investing in the 401k and buying houses to live in, right? Now. It really helps the realtors association, for sure. I mean, stop, and think guys, like do the math for yourself. We know what’s going to happen if you keep doing what you’re doing. And we’re not saying like, sure, don’t believe me but try it a little bit for yourself to prove it wrong on yourself. I mean, I don’t care whether you guys do it or not. In fact, I would probably for you guys don’t take action, don’t do anything because if you don’t have money, and you’re not financially free, it was cheaper for me to buy that high end expensive. Why? Because you can’t afford it. You know? I mean, I say that to be a jerk and just to be funny, right? But like, we know what’s going to happen if you keep doing what you’re going to do. And that’s exactly what they want. But, you know, I kind of, one of my missions and kind of the reason why I do what I do is to educate people that are hardworking professionals. It’s like we were the guys when everybody was screwing off at college playing around in the spring quad playing frisbee. I know you, Pancham, like you and I were in the lab slaving away in the basement homework, right? If that resonates with you guys, you guys are doing the same thing when your careers you guys are doing the same exact thing and look you guys need some help. We want to help you guys because you guys deserve it. Or you guys are the people who pay on fairer share your taxes. We didn’t get too much into that today but that’s another topic for another time but yeah. I have a soft spot for other working professionals because I was one

 

Pancham Gupta: Yeah 100% again, great advice there. I love the sarcasm there. And I know you were doing that to make a point and point well taken. I hope the person who’s listening can learn something from that and take some action and get educated. So, thank you, Lane here for your time and really enjoyed having you. How can listeners reach you, connect with you. I see your tribes name all over plus around this, moving background which focus more on than on your face. So how can they connect with you?

 

Lane: They can check out my podcast Simple Passive Cashflow on passive investing my website, simplepassivecashflow.com and my email address is lane@simplepassivecashflow.com. Thanks for having me.


Pancham Gupta: Thank you for listening guys. I think Lane was my first guest where it was pretty sarcastic, but his message was pretty loud and clear. I hope you learned something from it. Thank you for listening. I really appreciate you.  If you have questions, email me at p@thegoldcollarinvestor.com that’s p as in Paul @thegoldcollarinvestor.com.  This is Pancham signing off. Until next time, take care.

Thank you for listening to The Gold Collar Investor Podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at www.thegoldcollar investor.com and follow us on Facebook@thegoldcollarinvestor. The information on this podcast are opinions as always, please consult your own financial team before investing.


Copy of EP #18 - 2 Guests

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