Podcast YouTube Courses About

EP.11 Passive Income Is The Key To Leaving That High Paying W2 Job, With Lane Kawaoka

Passive Income Is The Key To Leaving That High Paying W2 Job, With Lane Kawaoka

 

In this episode, my guest is Lane Kawaoka. He is a Family Office Advisor and Real Estate Syndicator. He is also a Podcaster and Accredited Investor at Simple Passive CashFlow. He has raised over 160M dollars to purchase and control over 1.2 Billion AUM (over 8,000 units) to include apartments, mobile home parks, self-storage, hotels, and other commercial real estate assets. Today, he shares his journey from W2 to Simple Passive CashFlow 

 

Creating Passive Income 

[05:03]

For Lane, wholesaling and house flipping is what people do when they are broke. He says that people who have good-paying jobs must have stuff on the side that is passive. Lane bought turnkey rentals, which became his passive income. When he buys, he looks for a 1% rent-to-value ratio. You take the monthly rents divided by the purchase price, and it needs 1% or higher for the numbers to work for cash flow.

 

Managing Turnkey Rental Properties 

[07:54]

Lane started out buying turnkey rental properties. Lane recommends having a third-party manager handle the day to day. He says it is an excellent way for new investors to put on the training wheels as a landlord. 

 

The Money Problem 

[10:33]

Lane’s first job was working for a conservative company where the quality of life was low but had high pay. He was motivated to save and put down payments on more properties. He realized that 95% of people are bad with their money where they can’t save it. They spend more than they make. 

 

The Saver Mentality 

[12:06]

Lane says that the saver mentality is good for people who don’t make much money or are not good with their personal finances. Many people save lots of money for their 401K even though they should not be doing that. Lane says that people should instead buy big assets with good debt and leverage their debt. 

 

The Peoples Game

[15:56]

When Lane started to build relationships with people, he realized that the world was a “people’s game.” It is all about building relationships with the right operators and building colleagues and peers of other passive investors to know who is legit in the business.

 

Exiting W2

[19:57]

Lane changed jobs a few times, started working for the government, and enjoyed working for them. But he says there is a triangle in management when there is a manager, a worker, and subordinates. 

 

The Savers 

[27:53]

Lane and his company have events for their clients. Deep down, the company’s core is about being savers-they delay, gratify, and get off on that. They invest in very stable assets that cater for the lower middle class. Lane says it is a bit of a grungy demographic where it is not a get-rich-quick scheme. They go in and rehab units slowly as tenants move out. 

 

Issues with the 401K

[31:35]

Lane has issues with the 401K, many of which involve taxes. He says that a lot of the whole dogma is predicated on a person getting older and making less money in the future. At that point, they will be in a lower tax bracket. For Lane, his investors will be successful in the future when they reach a much higher tax bracket. Lane says you should pay your taxes to get up to date while in a lower tax bracket. He emphasizes getting taxes paid immediately. 

 

Lane’s Podcast 

[34:48]

The podcast follows Lane’s journey into real estate. He started back in 2016 when he was buying small rental properties. He would teach people how to buy turnkey rentals. He also has a free guide on www.simplepassivecashflow.com/turnkey. He says that it is a no-brainer to go into syndicated deals if you can build relationships and a community around yourself. 

 

The Challenge in Becoming a High-Level Investor 

[36:20]

You want to just always be improving as an investor and become a professional investor. The trouble is that most people are working their day jobs. So you don’t really have the time. The issue is interacting with the right higher-level people and higher-level investors and getting access to those rooms, which many people don’t have the time for or the network.

 

Morning Routine 

[37:22]

Lane will write things that he needs to do. He isn’t a fan of morning routines like yoga, and he immediately jumps on his emails and puts out the fires. His advice is to just do what works for you. 

 

Is a Mentor Really Necessary? 

[39:56]

Lane says that a coach would be good to have when you are starting out. The trouble is that there are a lot of fake gurus out there that don’t really do anything—they just write books. The guys that teach people mostly prey on people who don’t have money and are desperate. If you’re starting out, there are lots of YouTube videos and podcasts that you can start to absorb. Just focus on getting a community rather than worshiping the gods and the gurus. 

 

Lane’s Advice 

[43:02]

You have to do something with your time. Try and figure out what makes you happy. But you have to go through a period where you don’t do jack for six months to several years, where you just go weightless. You need to save up enough money to buy enough assets to create a passive income where it exceeds your expenses. 

 

Learn more about Lane Kawaoka at: 

 

Listen to his podcast at https://simplepassivecashflow.com/podcast/ 

 

Book a Free-30 Minute Coaching Session with Brian O’Neill 

 

MORE FROM BRIAN:

 

LINKS TO OUR PARTNERS: