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Episodes
Wednesday Feb 28, 2024
ESG Investing in Real Estate Today with Aundre Oldacre
Wednesday Feb 28, 2024
Wednesday Feb 28, 2024
In this episode, Taylor interviews Aundre Oldacre, the managing partner at Aora Development, about sustainable development and its impact on the real estate industry. They discuss the challenges and opportunities of implementing sustainable practices, the role of incentive programs in offsetting development costs, and the importance of evaluating properties based on their sustainability ratings. Aundre shares insights into replacing gas boilers with sustainable alternatives and navigating regulatory red tape. The conversation also touches on the impact of high interest rates and the changing market dynamics in New York City. Overall, the episode provides valuable information for investors interested in sustainable development.
- Incentive programs can help offset the costs of implementing sustainable practices, but they may not cover the entire expense, leading to upward pressure on rents.
- Replacing gas boilers with sustainable alternatives, such as electric boilers or heat pumps, is a key aspect of sustainable development.
- Properties with a sub one Debt Service Coverage Ratio (DSCR) may initially have insufficient net operating income to cover mortgage costs, but strategic cost-cutting measures can improve the financial position.
- Evaluating properties based on their sustainability ratings can help identify potential red flags or opportunities for improvement.
- Rent-regulated properties may present additional challenges and considerations in terms of sustainability and investment potential.
- Sellers may need to adjust pricing to account for the end of tax abatements, and buyers must carefully evaluate the risks associated with these properties.
- Regulatory red tape, such as permitting issues and electrical service limitations, can pose challenges when making sustainable updates to properties.
- The timeframe for completing sustainability updates can vary depending on the scope of work and regulatory requirements.
- There are resources available for individuals interested in learning more about sustainable development and building their skill set in this area.
Tuesday Feb 27, 2024
How to Support Farms with Private Credit with Chris Rawley
Tuesday Feb 27, 2024
Tuesday Feb 27, 2024
Can private credit transform the future of agriculture and help preserve family farms in an era of financial and environmental challenges?
In this enlightening episode of the Passive Wealth Strategy Show, host Taylor Loht welcomes Chris Rawley, founder of Harvest Returns, for a deep dive into the innovative world of private credit within the agriculture sector. Rawley shares his journey from a Navy captain to revolutionizing agricultural finance, offering insights into the challenges and opportunities facing farmers today. Through discussions on loan structures, investment strategies, and the broader implications for the agricultural industry, this episode sheds light on how private credit is becoming a vital tool for growth and sustainability in farming.
While serving as a career naval officer, Chris Rawley visited dozens of war-torn and poverty stricken countries and began to appreciate the importance of agriculture to every single person on earth. As a professional investor with this new found appreciation, he decided to invest in a farm, but quickly discovered that these types of assets were inaccessible to the average person. The problem drove him to create Harvest Returns in 2016 to democratize investments in agriculture.
[00:00:00 - 00:04:59] The Genesis of Harvest Returns
- Introduction to Chris Rawley and Harvest Returns.
- The inspiration behind starting Harvest Returns.
- Challenges in traditional agricultural financing.
- The role of private credit in modern farming.
[00:05:00 - 00:09:59] Navigating the Terrain: Private Credit in Agriculture
- Exploring the types of loans and borrowers.
- The significance of private credit for farmers.
- How Harvest Returns customizes financial solutions.
- The impact of regulations on banking and lending.
[00:10:00 - 00:14:59] Risk Management and Investment Strategies
- Strategies for managing risks in agricultural investments.
- The role of collateral in securing loans.
- Insights into the global influence on agricultural markets
[00:15:00 - 00:19:59] The Future of Farming and Finance
- The potential for innovation in the agricultural sector.
- Challenges of consolidation in farming.
- The importance of sustainable investment practices.
[00:20:00 - 00:23:59] Reflections and Insights
- The value of continuous movement and innovation.
- Lessons from Elon Musk's approach to entrepreneurship.
- The critical role of resilience in personal and professional life.
- Book recommendation: Elon Musk
- Who inspires Chris: Elon Musk
Quotes:
"We're a platform we started... to give people access to investments in farming and ranching and agriculture." - Chris Rawley
"Keep moving, and if you're not moving, you're dying... it's, it's, you know, in your business, in your personal relationships in your investing career, you, you gotta, you gotta be moving forward." - Chris Rawley
Connect with Chris:
Website: https://www.harvestreturns.com/
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Monday Feb 26, 2024
Millionaire by 28 thru Rentals with Ryan Chaw
Monday Feb 26, 2024
Monday Feb 26, 2024
How can renting properties room by room not only maximize your rental income but also provide affordable housing solutions for students, all while navigating the challenges of property management and tenant selection?
In this eye-opening episode of the Passive Wealth Strategy Show, host Taylor Loht interviews Ryan Chaw, a real estate investor who achieved millionaire status by 28 through his innovative room-by-room rental strategy across the country. Ryan shares his journey from a recently retired pharmacist to a real estate mogul, providing invaluable insights into selecting the right markets, managing properties remotely, and strategically catering to college and grad students to create significant cash flows. Discover Ryan's approach to overcoming common landlord challenges, his methods for market analysis, and the systems he's put in place to ensure his investments remain passive yet highly profitable.
Ryan Chaw is a real estate investor with a multiple six-figure real estate portfolio, which he built on the side while working his full-time job. He has previously been featured on sites like Business Insider and BiggerPockets. Ryan also regularly shares his advice on industry podcasts and blogs and speaks at industry events. He graduated with a Doctor of Pharmacy at age 23 and has since been working as an Infectious Diseases and Pediatric Pharmacist.
[00:00:00 - 00:05:00] Breaking the Mold: Room-by-Room Rentals
- Ryan's unique investment strategy focuses on maximizing rental income by renting out individual rooms.
- Targeting college and grad students as tenants offers a stable demand.
- The importance of location and property selection to minimize risks and maximize returns.
[00:05:00 - 00:10:00] The Blueprint to Millionaire Status
- Ryan's path to financial independence through real estate investment.
- How leveraging student housing can lead to significant cash flow.
- Strategies for selecting properties and managing them efficiently to maximize income.
[00:10:00 - 00:15:00] Overcoming Challenges: Tenant Management & Maintenance
- Effective strategies for managing tenant relations and expectations.
- Tips for minimizing maintenance issues and handling repairs.
- The importance of creating a tenant-proof property to reduce wear and tear.
[00:15:00 - 00:20:00] Scaling Up: From Local to National
- Ryan's approach to expanding his investment portfolio across states.
- The critical role of market analysis in identifying new investment opportunities.
- Techniques for remote management and ensuring consistent standards across properties.
[00:20:00 - 00:25:00] Vision for the Future: Goals and Aspirations
- Ryan's long-term vision for his real estate portfolio and impact on affordable student housing.
- The importance of continuous learning and self-improvement in achieving success.
- Ryan's commitment to mentoring and sharing his knowledge with aspiring investors.
- Books recommendation: Millionaire Real Estate Investor, The Traction Book
- Who inspires Ryan?: His grandfather.
Quotes:
"By targeting high-quality students and utilizing strategic locations, we're able to minimize typical landlord headaches while providing value to our tenants." - Ryan Chaw
"Real estate isn't just about investing in properties; it's about investing in communities and making a positive impact." - Ryan Chaw
Connect with Ryan:
Website: www.newbierealestateinvesting.com/guide
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Friday Feb 23, 2024
Tax Loophole Nightmare Story and Case Study
Friday Feb 23, 2024
Friday Feb 23, 2024
Taylor highlights a story from Brandon Hall, a CPA and tax expert specializing in real estate, to unravel a cautionary tale of an investor who unsuccessfully attempted to exploit this tax strategy, illustrating the consequences of improper application. The conversation shines a light on the importance of adhering to IRS guidelines and understanding the nuances of real estate tax law.
Thursday Feb 22, 2024
Full Time Multifamily from Data Science Career with George Roberts
Thursday Feb 22, 2024
Thursday Feb 22, 2024
Why has value-add multifamily investing in tertiary markets provided scalable opportunities for real estate entrepreneurs like George?
Summary: Former data scientist George Roberts shares key lessons from his journey transitioning from single family to becoming a full-time multifamily syndicator. Topics discussed include leveraging virtual assistants, investing in tertiary markets, assessing economic fundamentals, smaller multifamily deals, vetting potential partners, and going "all in" as an entrepreneur.
When he is not running one of his active investments, you can find George hosting
“The Foundery – Where Leaders are Forged Daily!” a podcast devoted to the role that entrepreneurship, leadership, and mindset play in success in the commercial real estate space. He also hosts the weekly “CRE Network at Noon Eastern” Zoom meetup for investors and other commercial real estate players every Wednesday at noon Eastern.
[00:02:00-00:04:00] From Single Family to Multifamily Syndicator
- George started with single-family investing while working in tech, then made a strategic shift into multifamily to invest at scale.
- He immediately hired a virtual assistant agency to build efficient systems and processes.
- George focused on passive multifamily investing so he could keep his full-time job initially.
[00:04:00-00:07:00] Virtual Assistants Enable Lifestyle and Growth
- Instead of writing SOPs, George records videos of processes for the VA to follow. This saves massive time.
- The VA handles podcast editing and other tasks, freeing up George's time for higher priorities.
- George encourages his VAs to improve their expertise in areas like video editing continually.
[00:07:00-00:10:00] Investing in Tertiary Markets
- George targets smaller tertiary markets with economic upside and migration patterns.
- He can find below market value deals from mom-and-pop operators in these markets.
- Less competition allows for negotiating attractive purchase terms.
[00:10:00-00:13:00] Assessing Fundamentals of Tertiary Markets
- George analyzes positive demographic and migration trends pointing to growth.
- He also examines indicators like transportation access and development.
- Favorable supply/demand dynamics are key.
[00:13:00-00:17:00] Smaller Multifamily Deals Offer Advantages
- Deals from 20-80 units have less competition from institutional players.
- This allows for finding off-market opportunities and negotiating attractive terms.
- Smaller deals provide flexibility if the market shifts.
- Book recommendation: The 7 Habits of Highly Effective People
- What inspires George?: Adventure!
Quote:
"When things go wrong, if you're, you have a little less leverage versus the amount of money that you could have put on the side for that rainy day. How long do you get to survive? It's huge" - George Roberts
Connect with George:
Website:
https://robertscapitalenterprises.com/
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Wednesday Feb 21, 2024
From Engineering to Full Time Real Estate - Unexpectedly! with Austin Curry
Wednesday Feb 21, 2024
Wednesday Feb 21, 2024
Austin Curry, a full-time real estate investor, shares his journey of transitioning from a corporate career to real estate investing. He discusses his investment focus, portfolio, and the shift in his investment model. Austin explains why he decided to move away from syndication and focus on smaller properties. He also shares insights on time management as a full-time investor and offers advice for those looking to make the transition from corporate to real estate. Overall, Austin's story highlights the importance of clarity, purpose, and flexibility in building a successful real estate career.
Takeaways
- Focus on markets with strong fundamentals and population/job growth.
- Consider shifting investment strategies based on market conditions and personal goals.
- Create a balance between work and personal life as a full-time investor.
- Give yourself a financial runway and clarity of purpose before transitioning to full-time real estate investing.
Tuesday Feb 20, 2024
Tax Savings through Cost Segregation with Joe Viery
Tuesday Feb 20, 2024
Tuesday Feb 20, 2024
Have you ever wondered how real estate investors save millions on taxes using a method approved by the IRS but not widely understood?
In this enlightening episode, host Taylor Loht invites cost segregation expert Joseph Viery to demystify one of the most potent yet underutilized tools in real estate investment - cost segregation. Joseph breaks down complex tax codes into actionable strategies that can lead to significant tax savings for property owners. Whether you're a seasoned investor or new to real estate, Joe's insights into accelerating depreciation, navigating IRS guidelines, and leveraging cost segregation studies will equip you with the knowledge to enhance your investment returns.
Joseph is the Principal at US Tax Advisors Group, Inc (USTAGI). As a Cost Segregation Professional, he has helped property owners defer or eliminate millions of dollars in income taxes by leveraging cost segregation studies. Joseph has performed thousands of Cost Segregation studies for clients in various industries ranging from $500,000,000 commercial properties to $50,000 single-family residences.
[00:00:00 - 00:04:59] Unlocking Tax Savings: Discover the basics of cost segregation and its history, highlighting how it can transform your tax strategy.
- Cost segregation accelerates depreciation, offering immediate tax savings.
- The practice became widely endorsed by the IRS following a pivotal 1997 court case.
- Understanding IRS guidelines is crucial for a compliant and effective cost segregation study.
[00:05:00 - 00:09:59] Choosing the Right Study: Learn the difference between engineering-based and online cost segregation studies.
- Engineering-based studies offer a robust defense during audits.
- The complexity of a property can dictate the type of study needed.
- Cheaper online options may lack the detailed analysis required by the IRS.
[00:10:00 - 00:14:59] Depreciation Recapture and Strategy: Navigating the implications of selling your property and the strategic role of cost segregation.
- Cost segregation can actually reduce depreciation and recapture taxes.
- The importance of planning for the long-term ownership of properties.
- Utilizing 1031 exchanges to defer taxes further.
[00:15:00 - 00:19:59] Impact of Changing Tax Laws: Discussion on how recent changes in bonus depreciation affect real estate investors.
- Bonus depreciation has been a boon, but the core benefits of cost segregation remain.
- Planning your tax strategy around current laws is essential.
- The value of cost segregation does not diminish with changes in bonus depreciation rates.
[00:20:00 - 00:23:59] Building a Real Estate Team: Joe shares personal anecdotes and the importance of surrounding yourself with experts.
- The right team can save you more than they cost.
- Leveraging the expertise of professionals for better decision-making.
- Joe's journey from starting in finance to becoming a cost segregation expert.
- Book recommendation: Think and Grow Rich
- Who inspires Joseph?: Podcasting and masterminds.
Quotes:
"Owning real estate is powerful and the tax advantages are huge." - Joseph Viery
"Accelerated depreciation has been around for over 50 years, but it's more relevant today than ever." - Joseph Viery
Connect with Joseph:
Website: https://ustagi.com/
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Monday Feb 19, 2024
Debt Investing and the Future with Matt Rodak
Monday Feb 19, 2024
Monday Feb 19, 2024
Is debt investing the hidden gem of real estate wealth building, offering stability and returns in a volatile market?
Host Taylor Loht welcomes Matt Rodak, founder and CEO of Upright, to unravel the complexities and advantages of debt investing in real estate. Matt shares his journey from landscaping for fix-and-flip investors to creating a platform that bridges the gap between active real estate investors and passive debt investors. This episode dives deep into the intricacies of debt versus equity investing, highlighting how individuals can build wealth in real estate by becoming lenders rather than landlords. Through Matt's insights, listeners will explore the strategic benefits of debt investing, including risk management, investment returns, and the evolving landscape of real estate financing.
Matt Rodak is the CEO and Founder of Fund That Flip, which was founded in 2014. Matt developed the premise of this fintech company because he was struggling to get access to stable, reliable, and fast capital for his own real estate projects. Since then, Fund That Flip has grown into an end-to-end financial technology platform that helps real estate entrepreneurs and investors transform their neighborhoods and communities. Matt has been featured on the Bigger Pockets Business Podcast, Forbes magazine, and countless other publications.
[00:00:00-00:05:00] The Genesis of Upright: Matt Rodak's transition from real estate enthusiast to debt investing pioneer.
- Matt's early exposure to real estate through a landscaping business.
- The motivation behind creating a platform for debt investing.
- The impact of peer-to-peer lending on Matt's investment strategy.
[00:05:00-00:10:00] Debt vs. Equity: Analyzing the pros and cons from an investor's perspective.
- The fundamental differences between debt and equity investing.
- Risk and return profiles of debt investments.
- The concept of loan-to-value ratios and their significance.
[00:10:00-00:15:00] Navigating Rising Interest Rates: Adapting strategies in a fluctuating economic environment.
- Impact of federal rate changes on debt investing.
- The evolution of interest rates in Matt's lending practice.
- How Upright remains competitive and relevant amidst economic shifts.
[00:15:00-00:20:00] Project and Borrower Selection: The underwriting process and criteria for successful lending.
- Importance of experience in potential borrowers.
- The shift towards new construction financing.
- How Upright evaluates and selects projects for investment.
[00:20:00-00:25:00] Future of Single-Family Housing: Predictions for the next decade in real estate.
- Demographic trends influencing housing demand.
- Challenges and opportunities in single-family housing development.
- Matt's vision for Upright and the real estate market.
- Book recommendation: How to Win Friends and Influence People
- Who inspires Matt?: His sons.
Quotes:
"We think there's a very long tailwind... around single-family housing." - Matt Rodak
"You can always make more money, but you can't make more time." - Matt Rodak
Connect with Matt:
Website: https://www.upright.us/
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Friday Feb 16, 2024
Why Taking Tax Advice from TikTok is a Terrible Idea
Friday Feb 16, 2024
Friday Feb 16, 2024
Brandon Hall's Twitter post: https://twitter.com/bhallcpa/status/1757117679180148949
In the latest episode of the Passive Wealth Strategy Show, host Taylor dives into the critical topic of tax strategies and investing advice, particularly those trending on social media platforms like TikTok. The conversation revolves around a cautionary tale; an investor who lost an IRS tax case from taking misinformed advice online about luxury car deductibles. The episode calls attention to the importance of seeking professional advice when navigating the nuances of real estate tax laws to avoid potential pitfalls.
Taylor emphasizes the risks of following trending tax advice without proper guidance by highlighting CPA Brandon Hall's thread about a businessman's tax court misadventure. The episode is enriched with crucial steps about correctly documenting business vehicle deductions, reinforcing the notion that real estate offers tax advantages only when leveraged correctly with the help of a professional.
Thursday Feb 15, 2024
Unlocking Self-Storage Success: Navigating Market Trends with Tom Flannigan
Thursday Feb 15, 2024
Thursday Feb 15, 2024
What are the key differences investors should know about when considering self-storage opportunities - from small "mom & pop" facilities to large portfolios owned by REITs?
Self-storage expert investor Tom Flannigan shares his deep knowledge of the self-storage investment landscape, including the pros and cons of small versus large operators, how to evaluate market supply and demand dynamics, passive investing considerations, and more.
Tom Flannigan is the Argus Self Storage Advisors affiliate for Minnesota, Iowa, and the Dakotas. Since 2012, he has specialized in the acquisition, disposition and evaluation of self storage properties of all types and sizes. Tom has successfully represented sellers and buyers of properties ranging from $300K to over $18 million. Tom is the Managing Director of Area CRE Services in Minneapolis and leads a team of Storage Advisors responsible for selling over $500 million of self storage facilities in the Midwest.
[00:02:00] Types of Self Storage Owners
- REITs focus on major markets and stabilized assets in large portfolios
- Deals under $10M are common, with many under $3M - good for smaller buyers
- Direct investing requires operational capabilities - rentals, maintenance, etc.
[00:05:00] What REITs Look For
- REITs pay top dollar for stabilized deals in big portfolios
- Not interested in heavy lifts or value-add deals
- Creates opportunities for mid-sized and smaller operators
[00:09:00] Evaluating Market Supply
- Focus more on achieved rental rates vs. supply metrics
- Do rental rate surveys to estimate actual market rates
- Be wary of posted web rates vs. actual rates
[00:13:00] Why Invest Passively
- Hands-off wealth building compared to direct operating
- Don't have to deal with maintenance, tenants, etc.
- Can get exposure alongside experienced sponsors
[00:16:00] Evaluating Passive Deals
- Deal terms - return splits, fees charged matter
- Sponsor track record essential
- Total package - deal, terms, sponsor
- Book recommendation: The 7 Habits of Highly Effective People
- Who inspires Tom?: His mentors
Quotes:
"At least half of [self-storage] transactions across the country are going to be under $3 million and a lot of those even under $2 million." - Tom Flannigan
"I would be much more fixated on whether the market is achieving 60, 70. 20 per square foot versus like a dollar, 1. 20 per square foot. That's a huge difference." - Tom Flannigan
Connect with Tom:
Website: https://www.selfstorage.com/
X: https://twitter.com/TomStorage
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!