Engineered Wealth Podcast

Chantal Duame is a short-term rental investor and co-owner of Good Neighbor Realty, a boutique real estate brokerage that specializes in short-term rental investments. Chantal grosses multiple six figures passively from her short-term rental investments and has helped over 60 investors purchase short-term rentals in Colorado just last year.

In this conversation, Chantal Duame discusses the pros and cons of transitioning from traditional income to self-employed income through the use of short-term rentals. she advises clients on how to purchase and launch a successful short-term rental business, pointing out that there is a lot more work involved than simply buying a house. She also shares the potential for oversaturation in the short-term rental market, and whether or not regulation is a good idea.

[00:01 - 10:57] Opening Segment

• Introducing Chantal to the show
• Brief background and career
• short-term rental investor and co-owner of Good Neighbors Realty

[10:57 - 24:54] Short Term Rentals

• Short-term rentals vs. buying a house
• Non-professional real estate investors can get into the space by purchasing a brokerage and helping clients purchase short-term rental properties
• Revenue from short-term rentals can be earned between 15% and 20% of the sale price
• Municipalities are struggling to balance the need for residential housing with the increasing popularity of short-term rentals
• The two schools of thought on regulating short-term rentals
  • Those who feel that it will correct itself
  • Those who feel that it needs to be regulated
• Utilizing AirDNA Short-term rentals analytics
  • Gain insight into a property's competition by looking at their listings, reviews, and calendar

[24:55 - 41:36] Making Money through Short Term Rentals

• There are massive companies backing you when it comes to short-term rentals
• Maintaining peace and order in your Airbnb
• How hands-off is a short-term rental?
• The tax benefits of short-term rentals
• The importance of consulting a CPA and learning about the tax implications
• Avoiding apartments and instead buying or leasing a property that qualifies as a commercial asset such as a hotel

Quotes:

"When oversaturation happens from a short-term rental perspective, then the return from a short-term rental investment starts to diminish as well." - Chantal Duame

“Short-term rental really comes down to proximity and quality of design, as well as furniture and style.” - Chantal Duame

Connect with Chantal through LinkedIn, Instagram, Facebook, or visit www.TheGoodNeighbors.com. 

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout.

Maurice Philogene is a real estate investor & entrepreneur, restaurant owner, explorer of 100 countries, public servant (Federal Agent & Police Officer), philanthropist, and lifestyle design/wealth coach. He is a founding managing partner of Quattro Capital with a passion for living life leveraging freedom principles - financial freedom, time freedom, geographic freedom, freedom of purpose, and freedom of relationships. Maurice used real estate and professional careers to generate passive income and build a legacy all while empowering communities and helping others live their best life now through lifestyle design.

In this episode, Joseph and Maurice discuss how to generate passive income in a way that is both fulfilling and meaningful. Maurice Shares his journey of traveling the world and how it has allowed him to develop multiple skills and businesses. Maurice also shares his story of transitioning from a high-income professional to a successful real estate investor. 

[00:01 - 10:10] Opening Segment

• Introducing Maurice to the show
• Brief background and career
• Maurice is a lifestyle design wealth coach and real estate investor who has used his skills to generate passive income and build a legacy
• Maurice's recent purchase of a 210-unit property in the Galleria area of Houston
• Building passive income streams in the early 2000s
• Maurice shares how he was inspired to travel around the world

[10:11 - 23:39] Passive Income and Traveling

• Viewing travel as an opportunity to learn about different cultures and economies
• How this has helped Maurice develop a broader perspective and better understand his motivations
• Dominating the multifamily industry with Quattro Capital
  • Quattro’s four pillars
• Maurice talks about the difficulty of initial investments in real estate

[20:49 - 36:34] Surviving and Thriving in the Real Estate World

• Maurice talks about how flipping is a wonderful way to create upfront equity that can then be turned into long-term money
• The importance of investing in things that will generate a consistent income
• Maurice recommends that people learn how to build ownership in businesses so they can have a free lifestyle
• Not being caught up in certificates, degrees, or titles

[34:35 - 40:10] Closing Segment

• See the links below to connect with Maurice
• Final words

Quotes:

“Education for the sake of education because society said this certification is going to make you more marketable in people’s eyes and it will give you a $5,000 raise.” - Maurice Philogene

“Because schools said you have to be the valedictorian to get recognized, then we want the title to be recognized. And we leave all these other things behind.” - Maurice Philogene

Connect with Maurice through LinkedIn, or visit www.TheQuattroWay.com.

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout.

Christopher is the Founder of JAG Communities which is a vertically integrated multifamily-focused investment firm based in Jacksonville, FL. Chris started investing in real estate in 2016 by attempting to flip houses in Long Island, NY. After months of failing, he attempted out-of-state flips, purchased tax deeds, and finally found his footing in multifamily. Chris JV’ed on over 100 units, before joining Toro Real Estate Partners as their head of Florida operations. During his 4.5 years at Toro, they purchased 4000 units worth $300 mil, with 1000 units in Florida. Chris eventually left Toro in Nov 2020 to start JAG which owns and manages small to mid-sized apartment complexes in Jacksonville, MSA. JAG Communities currently owns and manages 60 units worth over $6.5 million, with another 52 units set to close in Q1/Q2 of 2022 worth over $8.5m. Chris has a 10-year plan to scale to $500 million worth of real estate owned

[00:01 - 14:09] Opening Segment

• Introducing Christopher to the show
• Chris Grig founded JAG communities, a vertically integrated multi-family focused investment firm
• JAG communities own and manage small to medium size apartment complexes in the Jacksonville Florida MSA
• Chris has a 10-year plan to scale JAG communities to 500 million worth of real estate
• How a house flipper turned to real estate investing

[14:10 - 36:00] Transitioning to Becoming an Operator

• Chris talks about the challenges and the rewards of the transition
• Operations are the biggest part of the industry
• Most of the time is spent on deals renovating 
• A potential development project in Houston, Texas 
• Each quadplex would have its private backyard and two or three-story layout

[36:01 - 49:31] How to Create A Successful 10-year Real Estate Plan 

• Chris started looking at buying his deal in early 2020 and was able to find one in orange park, FL within 60 days
• Chris is vertically integrated and plans to buy only a handful of properties per year
• Test your market first
• Chris discusses the importance of market research before starting a business
• Hiring managers and regional representatives

[49:32 - 63:25] Jacksonville's Emerging Market

• Chris discusses the pros and cons of doing smaller deals
• Chris's plans on staying in Jacksonville

[03:26 - 04:53] Closing Segment

• See the links below to connect with Chris
• Final words

Quote/s:

"Just really enjoy this moment you're going through because as you grow and get bigger and bigger you're gonna look back and be like, ‘man those are the best times where at ground zero when you're just forming all this’." - Christopher Grenzig

Connect with Chris on LinkedIn, Facebook, or visit www.jag-communities.com

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout.

In this episode, Brett Swarts discusses the deferred sales trust and how it is a legal tool that allows individuals to defer the taxes that would normally be due on the sale of an asset. As the owner of Capital Gains Tax Solutions, Brett explains that this can be helpful for businesses in cryptocurrency and primary home because it allows for separate ways for partners to separate without any debt re requirements replacement. He also notes that the deferred sales trust can be used for business sales as well as primary home sales. 

[00:00 - 13:48] Opening Segment

• Introducing Brett to the show
  • Brief background
• The deferred sales trust is a tax-advantaged way to sell an asset
• Each individual family in a married couple has their own deferred sales trust, and other investors can have their two
• The 1031 exchange must be approved by all partners, and each partner must agree to the move

[13:48 - 32:57] How to make Deferred Sales Trust an Investment

• A good option for people who want to defer capital gains taxes on a sale, and can be a good way to scale an investment
• A good way to preserve wealth, and can be a good option for people who want to defer capital gains taxes on a sale
• It costs around 1.5% of the gross sales price to set up and has a recurring fee
• The deferred sales trust can help save a failed 1031 exchange

[32:58 - 52:09] The Best Way to Avoid Fees When Exiting a Deal

• Delaware Statutory Trust
• How an LP can defer paying taxes on a sale of a property by using a deferred sales trust
• If the tax code were to change in a way that would make this type of trustless advantageous, it would likely be difficult for LPs to retroactively adjust their plans
• The government is proposing changes to the tax code that could increase taxes on assets such as real estate and cryptocurrency.

[52:10 - 52:51] Closing Segment

• See the links below to know more about Brett
• Final words

Quotes:

"Why not have something like the deferred sales trust in which you have no timing restrictions? So there's no 45,000 180. There's no debt requirement replacement. NTTS can go there. Separate ways. Partnerships can separate. It also works for businesses in cryptocurrency and primary home." - Brett Swarts

"So unless you tell me Joseph if I want to buy a boat in my house and I want to live off the money we can't do that. To be tax-deferred needs to be for business purposes or investment purposes." - Brett Swarts

Connect with Brett through LinkedIn, Facebook, Instagram, or visit www.capitalgainstaxsolutions.com and www.expertcresecrets.com.

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout.

Jade discusses how his background in electrical engineering helped him with acquiring and managing properties. He also recounts how his professional journey as an engineer led him to become a landlord and buy houses in Arkansas. He talks about the challenges of the current market, which forced him to move to Houston in 2012. After 8 years in Houston, Jay decided it was time to move back home and focus on buying properties in Arkansas. Jade became a multifamily investor after working as an attorney, and he now advises investors on apartment investments. 

Jade Laye is an Investor and Attorney who assists investors in obtaining above-market returns through apartment investments. With 10 years of experience in the acquisition, rehab, and operation of 2500+ single and multi-family units in Texas, Arkansas, Memphis TN & Atlanta GA, Jade has acquired $230M+ in real estate assets under control and/or ownership. Jade also has 15+ years of legal/management experience in major law firms.

[00:01 - 06:53] Opening Segment

• Introducing Jade to the show
  • Engineer/attorney
• Assisting investors in obtaining above-market returns through apartment investments 
• Jay’s background as a real estate investor

[16:54 - 33:08] The Best Market Is Always Your Backyard

• It’s always better to start where you’re most comfortable
• Why multifamily is a better investment
• The ability to force appreciation in apartments in a way that isn’t possible with houses

[33:09 - 49:38] Bringing Equity to Multi-Family Portfolio

• Modern-day syndication is more common with larger general partnership teams, where each partner brings in equity
• One of the things that have evolved in modern-day syndication is the structure of the team, with each partner taking on specific responsibilities
• Character and capability are important factors when selecting a syndicate partner
• Sponsors should take a balanced approach to evaluate deals
• Sponsors should also be aware of the risks associated with entering new markets

[49:39 - 57:13] Closing Segment

• Jade’s tips for a successful sponsorship
  • It is important to have a long-term perspective when vetting potential sponsors
  • It is important to partner with people who have experience in the real estate industry
• See the links below to connect with Jade

Quotes:

“Everybody has to have specific roles outlined. Everybody has got to be a team player.” - Jade Laye

"I invest with people I can trust." - Jade Laye

Connect with Jade on LinkedIn, Facebook, or email him at [email protected].

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

Dr. Eric Tait shares the financial independence of transitioning from a career in medicine to owning and operating investment firms. Eric breaks down the different ways an individual can become financially independent, explaining how chose real estate as his path due to the stability and potential for passive income it provides. He also discusses the importance of educating oneself on important financial topics, and how mentorship can be instrumental in achieving success. 

Eric Tait is an Investment Fund Manager with Vernonville Asset Management (VAM) LLC, a private investment firm that helps investors attain or maintain financial independence using alternative assets. Eric is also a Physician who is board-certified in Internal Medicine. Under Eric, VAM has grown to over 150 million dollars in assets internationally and domestically, these include the Hilton Curio Resort in Belize, numerous Triple Net Commercial and Light Industrial assets, multi-family apartment homes, student housing, specialty coffee farms in Boquete, Panama, and dozens of single-family homes, private lending funds, and Angel Investments. 

[00:01 - 12:47] Opening Segment

• Introducing Eric to the show
• Pursuing a career in medicine
• Eric’s educational background

[12:47 - 25:19] Getting Into Real Estate

• Eric shares how he got into real estate
• Houston’s most successful real estate investors

[25:19 - 38:01] The Brain Power Needed for Building Wealth

• You can’t rent an apartment for twice the market average
• How to transition from engineer to real estate investor
• How W2 professionals should transition properly into real estate 
• Being aware of the different types of businesses they are in and what type of risks they are taking

[38:01 - 47:16] How to Navigate the Turbulent Waters of Real Estate

• Being aware of outside factors that can't be controlled by the sponsor or operator
• Deciding what financial life goals you want to achieve, and then finding someone to help them achieve those goals

[47:16 - 50:54] Closing Segment

• See the links below to connect with Eric
• Final words

Quotes:

"I just take what mentors see and what they're doing and apply it to my life. And then I drag my investors along with us if they want to go from that standpoint." - Eric Tait

"When you see a deal that falls in your parameters pull the freaking trigger." - Eric Tait

Connect with Eric on LinkedIn, or visit www.vernonville.com.

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout. 

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

Quotes:

"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 www.hawthornecapital.com

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth, and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout. 

“Make sure you have enough capital to better take care of your needs. Because if you don't, then you're at the mercy of banks, or whoever else you have to deal with.” - George Joseph

On this episode of The Engineering Passive Income Show, Joseph is joined by George Joseph as he discusses the story behind his business ventures and how he ended up with multiple income-generating businesses. He emphasizes how establishing good relationships and maximizing support would provide maximum returns when handled right and how we must strive towards diversifying our income sources for better security.

Currently CEO of Common Bond Bistro Bakery Brassiere as well as Positive Recovery Centers, George’s history includes building a company called The Right Step from 300K in yearly revenue to 35 plus million and from 8 employees to over 300. Right Step was a drug and alcohol rehab company with locations throughout Texas. George sold Right Step to Private Equity backed company in 2012. During his leadership, he was recognized as National Drug and Alcohol Counselor of the Year and National Behavioral Healthcare Champion.

In 2014 during his non-compete phase George started Lightning Step Technologies, a current leader in the addiction field with an all-in-one Electronic Medical Record, Customer Relations Management, Revenue Cycle and Outcome Manager software as a service tool. 

George purchased Common Bond Bakery and Bistro in December 2016. He began this adventure as a passive investor, but in December 2018, he quickly evolved into an active Chief Executive Officer for the continued development of Common Bond’s growth. George decided he was the leader for the job and acquired the company.

In 2017 at the conclusion of his non-compete, George reentered the drug and alcohol rehab space and started Positive Recovery Centers. George’s proven strength is creating a strong culture with the employees, this enables them to feel a connecting company pride that branches out to the consumer, and as a result, maximizes the success of the operations internally. Due to his hard work and commitment to his employees and their mission, he was recently honored as Most Admired CEO by Houston Business Journal.

[00:01 - 11:35] Shifting the Focus Towards Growth

[11:36 - 20:08] Finding Security in Providing Basic Human Needs

[20:09 - 31:53] Maximizing Support and Learnings for Income Diversification

[31:54 - 33:52]  Wrapping Up!

Key Quotes

“The employees are your most important asset, and you got to really take care of them.” - George Joseph

“Focus on the things you can grow… Prove the morale of employees. You're going to be successful.” - George Joseph

Connect with George

Reach out to him on LinkedIn

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout. 

“There's never going to be a right time. There's not going to be this time where like the clouds open up, and the higher power comes and says now's the time.” - Cody Nicholson

On this episode of The Engineering Passive Income Show, Joseph is joined by Cody Nicholson as he reveals his noteworthy story of catching the entrepreneurial bug and coming out successful. Getting into the world of entrepreneurship entails sacrifice and for Cody, it meant quitting his respectable job, eating ramen noodles for two years, heavy planning, and employing lots of strategies, all while having a family to support.

[00:01 - 13:27] Catching the Entrepreneurship “Sickness”

[13:28 - 28:10] The Implications of the Freeing World of Entrepreneurship

[28:11 - 23:29] Risk is Fun For Those with Entrepreneurial Disease

[41:45 - 45:44] Why Consider Betting on Yourself

[45:45 - 48:21]  Wrapping Up!

Key Quotes

“Entrepreneurship is kind of like a sickness, right? It's like a bug that you catch, one day you something clicks, and you say, ‘Wow, this is something I want to do the rest of my life.’.” - Cody Nicholson

“If you get the sickness and you have the disease of an entrepreneur, risk is fun."  - Cody Nicholson

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout. 

“Everything starts with planning, the process that we use to guide individuals through this is called wealth with purpose, which does exactly what it's called, it's to define that goal behind your wealth.” - Ali Nasser

On this episode of The Engineering Passive Income Show, Joseph is joined by Ali Nasser as he discusses the six asset classes to consider in building your wealth and tips in risk management. He stresses the significance of identifying your goals in crafting a roadmap for mindful investing towards a comprehensive financial plan.

Ali Nasser is the Founder and CEO of AltruVista. His passion is to help business owners gain clarity on the most important decisions at the intersection of wealth and life planning. He has helped numerous owners be more intentional with their goals, integrate their team of professional advisors, and create a roadmap to capture their success.

He has a degree in Finance from the Bauer School of Business and is a Certified Financial Planner (CFP), Certified Exit Planning Advisor (CEPA) and an Accredited Estate Planner (AEP). Ali also taught comprehensive financial planning at Rice University from 2014-2019. 

Ali’s upcoming book, “The Business Owner’s Dilemma” is scheduled to release on 2.22.22.

[00:01 - 09:01] The Importance of Value Assets with Intrinsic Measurement

[09:02 - 21:24] Financial Repositioning Considering Risk, Income Streams, and Tax

[21:25 - 29:56] Crafting the Roadmap to Mindful Investing

[29:57 - 40:23] Wrapping Up!

Key Quotes

“It's important to know what you're getting into when you're buying an asset that doesn't necessarily have any intrinsic measurement. .” - Ali Nasser

“Most business owners, especially those that have been highly successful, the majority of their wealth was generated through concentrated risk in one investment.” - Ali Nasser

“You're kind of just diversified and protected in a way that because if you had losses in one area, or one area doesn't perform as you would perfect, as you'd expect, you're covered in other areas.” - Ali Nasser

Connect with Ali

Reach out to him on LinkedIn

Connect with Joseph on LinkedIn, Facebook, Twitter, and Instagram   

Download resources and join our private investor group at www.engineeringpassiveincome.com 

LEAVE A REVIEW + and SHARE this episode with other professionals who want to learn how to generate passive income, grow their wealth and get their time back. Listen to previous episodes on Spotify, Apple Podcasts, or Buzzsprout.