The Passive Investing Show

If you have asked how to generate passive income, you may have heard that you should invest in real estate. Doing so makes sense but can feel intimidating for new investors. What if they fail at it? Who do they turn to for guidance? How will they organize property management?

These are valid questions, and we are here to address them for you.

Our guest is Savannah Arroyo, a registered nurse and multifamily real estate investor. She finds joy in sharing her journey to achieving financial freedom through real estate. She addresses critical questions — such as how to get investors, purchase property, and what to do when establishing property management. Improve your net worth and find financial freedom with real estate. Tune in to the episode now!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[1:38] Savannah’s Journey to Real Estate Syndication

Savannah talks about her dream of being free from financial constraints while being a nurse. This dream led her to dig into real estate investing to generate passive income. Savannah and her husband broadened their reach by finding other people who would do it with them.

[8:46] Seek Expert Help

Moving into syndication and being responsible for growing other people’s investments, Savannah realized the importance of formal coaching, mainly for two things: (1) accountability and (2) expert guidance.

[11:54] Look Into Property Management

Property management is vital to scaling the value of real estate property. Savannah advises looking into the management first before purchasing a property. She also suggests interviewing management teams to establish communication and tour the ground with the property manager.

[14:45] Find the Right Investors

Get into a conversation with potential investors first. Ensure trust, and see to it that they are agreeable with the plans and predictions of the investment.

Notable quotes from the episode:  

[2:45] “We stumbled upon real estate investing for obvious reasons. It’s one of the best ways out there to grow wealth.”

[7:18] “The biggest barrier to people handing over money to one of your investments is trust. They need to be able to trust you.”

[24:10] “If you’re interested in doing something that someone else has done, reach out and connect to them.”

Resources Mentioned:

Savannah Arroyo: Instagram | LinkedIn | Facebook | Twitter | TikTok

The Networth Nurse: Website

BiggerPockets Podcast 

The Passive Investing Show

Ryan Pineda (on real estate and NFT): Website

We’re living in interesting times. The stock market is up, the dollar is down and everyone’s talking about inflation. While it can be tricky to make sense of all the noise, there are definitely opportunities to be had in the current economic environment.

In this episode, J and Ashley talk with Bob Fraser, cofounder of Aspen Funds, on how you can leverage inflation and what asset classes are worth exploring. Join them as they explore the investment and income opportunities in our current economy.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[6:30] Making an Investing Thesis

First, develop a macro thesis. Determine what things you are going to do really well. Then, figure out the best strategies. Finally, find the best ways to invest and hire a skilled operator if needed.

[11:18] Investing in Energy and Real Estate

Investment in energy, oil and gas, and infrastructure has dropped in the last seven years. Energy requires billions of investment to maintain, so we have a massive energy crisis right now.

Inflation can be affected by inflation. Some opportunities include:

[16:46] Macro Trends to Consider

Smart debt is a rich man’s tool. Borrow money at fixed rates below the inflation rate, then invest in inflation-protected assets.

Currently, there’s a massive trend of reshoring and local manufacturing. There will be a need for local manufacturing and inventory in the next year. You must be market-dependent. Look at the location first when searching for investments.

[26:44] Interests, Concerns and Opportunities, and Advice

They are currently investing in short-term rentals. Inflation is both your greatest enemy and greatest tailwind. Get out cash, get good debt, and invest. Pay attention to the energy markets.

Bob also advises to watch The Passive Investing Show—it’s the secret to wealth creation. Tune in to Bob’s podcast, Invest Like a Billionaire, too!

[7:25] “You can’t predict the waves, but you can predict the tides.” 

[10:19] “You can’t have hubris in the investment world.”

[17:31] “Debt is a rich man’s tool.”

Resources Mentioned:

Aspen Funds

Invest Like a Billionaire

The Passive Investing Show

Are you looking to invest your money but don’t want the hassle of doing it yourself? Or are you a business owner looking for a low-cost, low-risk way to expand your brand? Franchising might be the answer for you! Franchising is a great way to build passive investment. With a franchise, you get all the benefits of owning your own business without all the risk and hassle.

In this episode, J and Ashley talk with Nick Friedman, cofounder of College H.U.N.K.S. Hauling Junk and Moving, about how investing in franchises helps you build passive wealth. Join them as they explore the passive income opportunities in franchising and what to expect.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[6:43] Franchising the Business

Being a franchisor isn’t very passive. Not only are they selling the franchise but they are also providing support, tools, marketing, logistics, and technology.

[10:43] Building Passive Income Through Franchising

They saw the opportunity to create an investor model or absentee owner where the owner may have the capital but not the time or bandwidth to run the daily operations. So the franchisor finds a manager to handle the daily operations who may not have had the capital to do so.

Do your research. Look at the International Franchise Association’s website. By filtering your options, you can find a passive franchise investment.

[16:42] What to Expect in Franchising

When investing in a franchise, there will be some involvement. But it’s still passive since you’re not spending every day working on that project.

[22:12] Nick’s Interests, Concerns, and Advice

He’s a passive investor in Franchise123, and so he’s currently invested in that particular model. With interest rates rising, he’s keeping a close eye on the housing market.

Have patience for results but urgency of effort. Invest in what you know. You can also expand what you know. Always give a little bit more than people expect.

Notable Quotes from the Episode:

[4:15] “In order to grow a business, you’ve got to learn how to work on the business, not just in the business. You’ve got to create systems and processes for the business to scale.”

[13:41] “It’s a wide universe out there. And it’s worth doing some research to explore what might be a good fit or good investment opportunity.”

[26:47] “Have patience for results but urgency of effort.”

Resources Mentioned:

The E Myth Revisited by Michael Gerber

Traction by Gino Wickman

International Franchise Association

Kidokinetics

Franchise123

College H.U.N.K.S. Hauling Junk and Moving

Nick Friedman’s website

The Passive Investing Show

Are you a quitter?

Chances are, if you've ever set a goal and failed to achieve it, you answered “yes”. And that’s okay! Quitting often gets a bad rap, but in some cases, it’s the best thing you can do for yourself. So it’s important to know when to quit—to know when to cut your losses and move on to bigger, better things.

In this episode, J and Ashley talk with Tim Rhode and Pat Hiban, the founders of Gobundance and authors of The Quitter’s Manifesto, about knowing when and how to quit. Join them as they explore what you need to figure out and prepare before quitting.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[4:49] How The Quitter’s Manifesto Came to Be

Tim had taught Pat how to quit his job and begin passive investing, allowing him to retire at 46. Their goal was to create a tactical book to teach people when and how to quit their job and build a financial safety net.

[10:09] Making the Big Decision

Quitting is scary. Tim and Pat created the Soul Sucking Audit. Scoring 6 or less means that it’s time to quit. It has five categories:

[14:10] Building Your Quit Team

Your quit team needs four people. First, stakeholders are people who will support you. Second, partners are people who will do well if you do well, such as a business partner.

Third, a mentor is a figure in your industry that has experience and expertise. Lastly, a coach keeps you accountable for meeting your daily goals.

[20:19] Preparing a Safety Net

Getting your finances in order is essential, especially when you’re quitting. Some things you can do to prepare your finances:

[22:34] Advice for Investors

Spend as much time as you can in interest over obligation. Pursue the things that interest you rather than the things you’re obligated to do. And that makes you more productive in doing what you have to do to get to what you want to do.

We are currently living in uncertain times. But accept that some things are out of your control and stay calm.

Notable Quotes from the Episode:

[10:14] “Quitting is scary. You need to come to a conclusion. It is scary. And it’s good that it’s scary because if you’re lackadaisical and not scared when you quit, you might not do as good of a job at whatever you do next.”

[17:13] “If you have a good solid quit team, chances are you’re going to make it.”

[34:39] “Just about everything we do, we don’t have as much control as we really think we do. So you just have to stay calm.”

Resources Mentioned:

Gobundance

1Life Fully Lived

The Quitter’s Manifesto

The Passive Investing Show

TITLE: Tax Benefits & Carbon Credits with Eric Shelly

When it comes to saving money on taxes, one of the most important things to remember is taking advantage of tax benefits. Tax benefits come in different forms, but they all serve the one purpose: to cut down taxes. Carbon credits do the same thing. By offsetting your carbon footprint, you can receive tax breaks and other financial incentives.

In this episode, J and Ashley talk with Eric Shelley, CEO and Fund Manager of Freedom Impact Consulting, about tax benefits and carbon credits. Join them as they investigate taxes, energy investments, and carbon capture technology.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[4:24] Building Investment

Working in real estate didn’t deter Eric from looking for another means to increase his income. He entered the energy sector, which exposed him to oil drilling as a passive investment.

He was introduced to Sita Technology’s equipment that collects oil without drilling. Since it is an oil production project, he took advantage of two benefits as a bonus depreciation in the first year of his passive investment.

[11:32] Managing Profits

Earning money from his passive investment in the energy sector was difficult. It required several annual adjustments to reflect oil output. Thus, his earnings are determined on price fluctuations and revenue streams.

[16:47] Selecting Investors

First, determine whether the investment meets your criteria. Second, confirm that the investor is qualified. Third, determine if the investor has prior expertise.

[18:25] Overcoming Risks

Some of the major issues that you might face or have faced as a passive investor in the energy sector include:

[24:46] Considering Externalities

Watch energy policy. The government is serious about going green while increasing energy utilization today. How they respond to the policy may influence how investors respond to them.

Notable Quotes from the Episode:

[1:39] “I realized that in my early 50s, I was going to have to be responsible for my retirement. So I decided to learn about passive investing.”

[22:46] “One of the things that is created by [carbon capture fund] is that we are giving people a great tax benefit in year one.”

[27:14] “If you get good financing, and then fit the asset to it, … cash flow will cover the investment. And it’ll do what you intended it to do.”

Resources Mentioned:

Chevron

Exxon

Sita Technology

Freedom Impact Consulting

The Passive Investing Show

There are many ways to make money from investing in real estate. One of these is renovating a large house strategically and renting rooms to multiple tenants.

In this episode of Passive Investing Show, the Founder of Newbie Real Estate Investing joins J to discuss reaping high returns by having multiple leases. Join them as they break down the process of property and tenant management and how to make money renting by the room.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[01:16] Renting by the Room

Ryan bought his first house in Stockton, California, for $262,000. He targets large houses close to schools where he can add a fifth or sixth bedroom.

[09:00] His Tenant Base

Ryan targets high-end colleges with well-rounded and responsible professional students. Ensure doing multiple leases is legal in the area. In managing tenant conflicts, he sets house rules for them to follow and empowers them to have a discussion.

[16:29] Additional Expenses

There are little to no additional expenses from an insurance and utility perspective. From a maintenance perspective, Ryan tries to get the seller to pay for the capital expenditure parts. If not, he budgets at least 1% to 2% of the total house cost toward repairs. He informs tenants about the scheduling of upgrades.

[20:38] What the Turnover and Property Management Looks Like

Most tenants stay for over two years, while about 25% come through referrals. The last 10% come through advertising. With a student housing market, you can rent with no difficulty throughout the year.

[29:21] Finding Great Tenants and Streamlining the Maintenance Piece

He uses the PRIME Method for finding tenants. PRIME stands for: Placement of advertisements, Reviewing social media, Identifying the type of tenant, Measuring responsiveness, and Ensuring proof of income.

Notable Quotes from the Episode: 

[01:56] “I knew if I could just start buying properties and planting seeds, it would grow into a forest and that I could retire early, have financial independence for myself and family, and be able to give back to my community later on as well.”

[20:04] “Real estate pays in four ways, right? Appreciation, equity pay down, tax benefits, and cash flow. For me, appreciation was the biggest gainer. I actually made about 50% return on my investment each year from the capital that I invested just through or mainly through appreciation.”

[34:59] “Real estate is like at least a 30% ROI game in the long run per year, so why not take advantage of it now and get started?”

Resources Mentioned:

Connect with Ryan: Instagram

Newbie Real Estate Investing FREE PDF Guide

GoBundance

Rich Dad Poor Dad

Rentometer

Zelle

Rent Ready

TenantCloud

The Passive Investing Show

Investors are always looking for the next big thing. The next property to buy, the next market to invest in, the next way to grow our portfolios. But what we often forget is that without human capital, our investments are worthless.

In this episode of Passive Investing Show, the Founder of Archetype Chetan Bagga joins J and Ashley to explore the importance of human capital both for investors and businesses alike. Join them as they tackle healthcare, software, human capital, and business acceleration.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[07:20] Companies They Work With

They work with software-enabled services companies that augment human capacity at work. There’s more surety in businesses with significant software and a human element in its delivery.

[11:56] Acceleration Timeline

They typically hold companies for a five-year mark. For early growth stage businesses, they give them capital and access to human capital as well. It helps companies accelerate faster until they become self-sufficient and enter the next phase of their corporate life cycle.

[14:53] Industries They Focus On

They focus on healthcare as delivered through the employer’s wide range. It includes providing care, such as home health and childcare, and maximizing employee performance.

[18:17] Creating the Work Environment

While most of their employees are located close to their offices, they don’t require them to come into the office. Rather they prioritize connection and creating a fun, exciting, and great learning environment.

[20:45] Spotting Opportunities and Threats

Home health is a big market with lots of opportunities. The down economy hurts all businesses. Companies will continue to need people, so human capital is important.

[22:42] His Father’s Advice

In life and business, you’ll encounter tough times. Observe your emotions but don’t get too absorbed in them. Recognize sentiment but keep your cool.

Notable Quotes from the Episode:  

[08:25] “We believe that there’s more surety in businesses that have significant software but also have a human element in its delivery.”

[18:57] “It’s really just about creating the environment that people want to come into, making it an exciting, fun, challenging, great learning environment.”

[22:09] “Businesses are going to continue to need people, going to need to continue to treat them great, give them the opportunity to grow.”

Resources Mentioned:

Connect with Chetan: LinkedIn

Archetype

The Passive Investing Show

There’s one investment niche that has held strong for decades and is showing no signs of going away — but you have to do the legwork yourself sometimes.

In this episode of the Passive Investing Show, Ashley and J discuss oil investments with Grant Norwood of the Norwood Energy Corporation. Tune in and learn the ins and outs of investing in the oil and gas industry and what it takes to drill a field.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[2:04] Norwood Energy Corp

Norwood Energy Corp began as a land-and-title storefront before shifting to oil and gas; land and titles are critical to the oil and gas industry. Norwood has two primary strategies: acquire and improve land or a diversified drilling plan.

[5:12] Maximizing Value and Output

Improving the value of an existing asset involves having the expertise and capitalizing on opportunities. But these opportunities won’t fall in your lap — Grant takes every phone call and does a lot of legwork to evaluate potential fields. You have to go out and do the work yourself.

[14:03] Strategizing Investments

Grant's expectations for investment are on a case-by-case basis. He holds some properties for a long time, but others require development. There are some risks in oil — price fluctuations, on-site concerns, geological problems — but ultimately, an oil investor will have to do a lot of direct participation.

[24:12] Timeframes and Cash Flow

Investing in oil has a varying hold timeframe. Norwood Energy Corp holds anywhere from five to twenty years. The length of a hold varies depending on the price of an oil barrel and a company’s financial strategy.

[31:31] Threats to the Industry

According to Grant, COVID is a significant threat to the oil and gas industry. Recessions aren’t a concern because people still have to travel. As of now, alternative energy only contributes 3% to the energy mix.

Notable Quotes from the Episode:

[07:51] "So many times buyers are private, equity-backed or whatever have you, and they want all the data provided to them, or they won't even give it the time of day or look around and try to find these themselves. So they miss out on all the good ones."

[11:17] "There are several different ways you can come up with a completely new concept. And you can back it up with science and data, and then get out there and try a new concept. And I mean, that's where legends are made, you know, you get out there and no one's tried it."

[18:33] “But if people have been drilling in that area, it's known that, say 3000 out of the 10,000 feet, you're drilling, you need to plan for some lost circulation. Well, if you know going into it, then you're not going to lose your well.”

Resources Mentioned:

Norwood Energy Corp: Website

Contact Grant Norwood: Company Website | LinkedIn | Blog | Email

Many passive investment options have emerged in today’s climactic business frontier. But cruising into the many alternative niches does not guarantee success. Learning how to capitalize on them is the key.

In this episode of Passive Investing Show, investment figure MC Laubscher joins J and Ashley to explore different passive investment options and their cash flow benefits. Join them as they tackle family investment strategies, infinite banking, and how to structure your wealth for success.

Here are some power takeaways from today’s conversation:

Notable Quotes from the Episode: 

[14:17] My mission now is how do we share information that is very applicable to the world that's going on right now, that will help folks see just the incredible opportunities that exist and times where, you know, there's a lot of uncertainty.

[22:11] If you find the right folks to partner with, you can have a lot of fun. Meet a lot of incredible people and have a well-diversified portfolio as a passive investor.

[27:20] It [life insurance] gave them a great quality of life towards the end of his [Ed McMahon] life, they didn't have to worry about the financial stress and the money and, and so forth.

[34:28] They buy these policies to essentially position it as a vehicle, as a cash-saving vehicle. Because the money that you're putting into those policies is the principle is guaranteed.

[46:32] As an investor, even if I never invest in any of that stuff, it’s really important to understand it, where capital is moving to, and where it’s going to move from.

[51:56] Excellence is something that needs to be pursued every single day.

Resources Mentioned:

Cashflow Ninja Website | Email | Podcast | Facebook | LinkedIn | YouTube

Producers Wealth

 Rich Dad Poor Dad by Robert Kiyosaki

 The 21 Best Cashflow Niches by MC Laubscher

Connect with MC: LinkedIn | Twitter | Instagram

Episode 9 PIS - Josh MacAllan

 The Passive Investing Show

A reliable return metric is an important aspect when making investment decisions. Not only does it help you visualize potential profit, but it also serves as a point of reference moving forward. While cash on cash return is a staple measuring system, there are other metrics you should know.

In the thirteenth episode of Passive Investing Show, J welcomes Jordan Moorhead, a real estate investor and the owner of The Moorhead Team. Join them as they explore different return metrics and how accreditation can unlock more investment options.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[01:44] Shifting Gears to Passive Investments

Jordan ventured into house hacking after starting a successful business. His interest in maximizing his capital growth led him to build a real estate sales team. His struggle to find good active investments convinced Jordan to use his wealth passively.

He conducted due diligence with the following factors in mind:

[07:53] Managing Returns and Expectations

He expects a lesser monetary return in passive investment. There is more wealth in active businesses, but they also take more work.

The value of depreciation benefits real estate professionals. It equates to a lower tax bill.

[10:46] The Diversity of Return Metrics

If you’re living off passive investments, cash on cash return is a vital metric. However, you need to look at various return metrics, too. You can look at equity growth and tax benefits from depreciation if you aim to grow your wealth.

[14:18] Becoming an Angel Investor

Jordan recently invested in an AI smart chatbot. He uses this product to drive leads on his wholesaling website. 

Supporting a business with an intangible product is risky. He looks at private investments as a wise “gamble.”

[18:07] Plan Ahead

Jordan wants to continue building his business to generate more revenue for the company and its employees. He also plans to build their home-buying company alongside his passive investment.

Accreditation in passive investments unlocks more options for investments. Encompassed with legal structure, accredited investments usually have smaller buy-ins.

[22:38] Jordan’s Advice for Starting Strong

Having a great system of managing money and wealth is foundational. Keeping expenses low and owning an investment account helped Jordan pile up his wealth efficiently.

Notable Quotes from the Episode:

[12:44] “I love real estate because there are so many different ways that you make money that is not just equity growth. There aren’t such wild swings in values compared to the stock market.”

Resources Mentioned:

Global Go Abundance Conference

Ashcroft Capital

Endurance Capital

Connect with Jordan on Instagram or call 512-888-9122

The Passive Investing Show