Mining Bitcoin is not as complicated as it seems. Anyone with a computer can do it. But you might be wondering why you should bother investing in Bitcoin mining when there are so many other ways to make money online.

In the twelfth episode of Passive Investing Show, J and Ashley are joined by Eng Taing. They share their insights on the risks and benefits of investing in Bitcoin mining.

Here are some power takeaways from today’s conversation:

●      Keep your costs low.

●      Consider the risks and benefits of Bitcoin mining.

●      Find cheap and renewable energy sources.

●      Be flexible.

Episode Highlights:

[12:29] How Bitcoin Mining Works

Bitcoin mining uses computers to create Bitcoin and validate transactions. Every 10 minutes, 6.25 Bitcoin is rewarded to miners. Miners pool their resources to get a lot more of it.

The current inflation rate for Bitcoin is 3%. With many industrial size capital investments, there is higher value but diminishing return. Bitcoin mining gets you more Bitcoin over time and offers more benefits. Make sure energy prices are down or as low as possible.

[24:38] What to Expect in Bitcoin Mining

You will invest in the profit stream of miners and they distribute those profits as either Bitcoin or cash. Investors can expect a 90% investment return in year one. The life cycle for one investment is five years.

[31:27] Risks in Bitcoin Mining

The risks in Bitcoin mining are regulatory risks and increasing energy costs. Keep your costs low. Find cheap and renewable energy sources. Given the current mining dip, they are buying a lot of machines and deploying capital wisely. The minimum investment is $50,000.

[36:50] Opportunities, Concerns, and Advice

Oil and gas investments interest him. He believes that renewable energy is the future and fossil fuels will be the bridge to get there.

On the other hand, the Federal Reserve is what concerns him the most. He believes that they are taking inflation and reduction of money supply too far to the point of decimating growth. He advises people to be flexible and explore different things.

Notable Quotes from the Episode:

[12:38] “When you add capital and scale, you get better results and outcomes potentially.”

[37:38] “Fossil fuels will be the bridge to renewable. I truly believe in renewable energy being the future. But there needs to be a bridge to get there.”

[39:22] “When you have higher interest rates, you sort of reduce the ability for investors to invest the money in people because now you have a higher demand hurdle for the investment.”

Resources Mentioned:

Touzi Capital

Eng Taing LinkedIn and Twitter

The Passive Investing Show

Business owners usually stick to one business using an array of conventional but proven tools. But does “playing it safe” survive in an ever-expanding market and updating global trends? Investing in multiple businesses and utilizing new technologies such as crypto can be ideal too.

In this episode of Passive Investing Show, J and Ashley are joined by Ryan Pineda. They share their insights on maximizing wealth and capital preservation using cryptocurrency.

Here are some power takeaways from today’s conversation:

● Aim for passive investing

● Start social media marketing

● Implement a wholesale-heavy model

● Learn more about capital preservation

● Revolutionize real estate through NFTs

Episode Highlights:

[8:03] Passive Investments

Passive income can be achieved through buying rental properties. Rentals are suitable for long-term wealth-building appreciation. Social media helped his business gain more market reach.

[13:15] Building a Passive Investment Portfolio

Ryan is adamant about conquering new business opportunities. He invests in three major areas: crypto, businesses, and real estate. Within his companies, he invests heavily in marketing, hiring, and building technology growth. For future investments, Ryan considers the time and opportunity costs to help guide his decisions.

[30:31] NFTs and the Crypto Space

NFTs are receipts or proofs of ownership that offer security from real estate fraud. So merging blockchain NFT with real estate puts less to almost zero cost when transferring ownership. Due to its rarity and potential, the digital real estate market became the most appealing asset for him to pioneer.

[41:49] Threats to Digital Real Estate

The lack of legal framework for digital real estate and the gray area in short-term rental laws with crypto must be addressed. Some aspects of real estate can be revolutionized with e-technology and blockchain.

Notable Quote from the Episode:

[15:34] “Any business I start today has to be better than the previous businesses because if they’re not, they're not worth my time.”

Resources Mentioned: 

True Books

Future Flipper

Wealthy Agent

Wealthy Way

Pineda Capital

Tykes

Homerun Offer

Lunar Ecom

NFT’s for beginners

The Ryan Pineda Show

The Passive Investing Show

Most people think investing in real estate sounds appealing, but coming up with a large chunk of cash can be scary. If you don’t have that kind of money lying around, it’s easy to write off real estate investment altogether. But what if there was a way to invest in real estate with little or no money?

In this episode of the Passive Investing Show, J and Ashley are joined by Matt Rodak. They talk about crowdfunding, how it works, and how you can use it to finance your next investment.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[08:45] Criteria for the Loan

They are focused on the single-family asset class and investors who are experienced in scale-up. Usually, they will finance about 85% of the project’s total cost to leave the customer some skin in the game.

When structuring the loan, manage risk by considering:

[12:44] Timeframe of an Investment

They try to match the term of the loan and investment to a reasonable amount of time to complete the project. An extension period can be built in.

[19:46] Investment Returns

Duration and rate may correlate. Because they use general solicitation, they can only take on accredited investors. While there is a loss of principal risk, there is a high probability that they will get most of your money back, but it may take longer than intended.

[27:33] Distributions and Taxes

Distributions are made monthly. Principal gets returned at the end of the project or maturity date. At the end of the year, their clients will get a 1099-INT from them.

[34:20] Matt’s Predictions and Advice

There’s a good legislative framework around crowdfunding. But inflation could affect the strength of the consumers and businesses. Never try to be the smartest person in the room. Always surround yourself with people with different knowledge and perspectives so you can keep learning.

Notable Quotes from the Episode:

[09:29] “It’s like small business lending. And we just happen to have collateral on the back end.”

[20:28] “That pricing is going to flow through to our passive investor base based on a number of different criteria that we’re looking at, ultimately price for the risk.”

[35:40] “Try to never be the smartest guy or gal in the room.”

Resources Mentioned:

Fund That Flip

[email protected]

The Passive Investing Show

When we talk about investing, most people would probably think of stocks and bonds. But what about the hotel industry? Investing in hotels can be a great way to build revenue and grow your portfolio.

In this episode of the Passive Investing Show, J and Ashley are joined by Josh McCallen. They talk about the hospitality space and why it would be a good investment. They tackle the factors you must consider and things to expect when investing in hospitality.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[03:48] Getting Into the Hospitality Space

After flipping hotels, Josh realized he wanted to become a hospitality investor. He invested in Renault Winery and built VIVAMEE with his wife. Their mission was to “revive the soul” and spread the gift of love through joy, humility, and ministry.

[14:41] How to Secure Sales

Sales are the solution to any economy. You must be creative and adaptive. Look for properties for which you can guarantee sales. Listen to the full episode to find out how Josh layers revenues!

[20:19] The Pros and Cons of Investing in Hospitality

Eliminate volatility by finding contractual revenue. You can do that through contracts and prepaid. Prices are affordable. Business asset ownership and real estate asset ownership are two ways to beat inflation. Hospitality has both.

[26:58] Their Upcoming Investments

They are constantly looking to scale. Their next asset category would be full-service hotels. They are also bringing multiple assets into one investment to offer diversification to investors.

Find out more about his upcoming hospitality investments and their investment model by listening to the full episode!

[36:27] Pointers For Investing in Hospitality

Know the operator. Determine if they align with your values. Look at the anchor asset and review the business plan. If you like the business plan, it’s worth going for it.

Notable Quotes from the Episode:

[14:48] “Sales are the solution to any economy.”

[33:18] “We love giving investors choices on what level they want to invest at. And we treat them with more generous preferences the more they put in.”

[35:49] “Multi-family is very much science whereas hospitality is a combination of science and art. And it really boils down to how artistic you happen to be.”

Resources Mentioned:

Renault Winery Resort

VIVAMEE Hospitality

Accountable Equity

The Passive Investing Show

If you’re thinking of investing in the energy, precious metals, real estate, or oil industry, it’s important to understand what you can expect. While risks are always involved in any investment, understanding these industries can help you make smarter choices and maximize your profits.

In this episode of the Passive Investing Show, J and Ashley are joined by Mauricio Rauld. They discuss the different asset classes you can invest in. They also tackle how you can leverage them to grow your wealth.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[06:12] Using Precious Metals

Physical precious metals could be insurance. Liquidity is also possible because many capitalized institutions will loan to you on your goal. With that, you could extract equity without having to sell and incur high taxes.

[09:13] Minimizing Tax

Most passive real estate investors look to real estate because of the tax benefits. Aside from that, oil and gas are other assets that can mitigate tax problems. The depreciation component also contributes to the tax benefits.

[16:18] How the Oil and Gas Industry Works

Striking oil gives great rewards. But there’s high risk because if you don’t strike oil, the investment goes down to zero. Proven reserves involve extracting oil from lands that you already know have oil. Lastly, additional oil can be extracted from the land that has depleted oil.

Premier Law Group buys equipment and rents it out to oil companies. The group then has a working interest and share in the oil well profits.

[20:55] What to Expect in Investor Returns

You do not buy equipment and sell it for capital gain since it is a depreciating asset. So it is purely a cash flow play. But with oil and gas being in high demand, it cash flows nicely.  You just have to factor depreciation into the final return. There is also a significant risk in being a General Partner in a limited partnership.

Tax benefits get taken in the first year the equipment is put into service. Cash flow usually starts around six to nine months. The amount of cash flow depends on how much leverage you have.

[26:48] Exploring the Risks

As a General Partner, unlimited exposure might make you uncomfortable. But being a General Partner is only for a limited amount of time. Find a way to limit the personal guarantee to the amount of your investment so you will be safe if things go south.

[26:48] How to Find Oil and Gas Investments

Reach out to Mauricio, and he would be happy to make an introduction. Bitcoin has been on his radar for a while as an area he would potentially invest in. Change in the tax code is the biggest threat to his passive investment strategy. Accredited investor limits are likely to increase.

[38:58] Mauricio’s Final Advice

Building wealth is difficult, but putting your excess paycheck into active or passive investments will help you become more financially independent.

Notable Quote from the Episode: [39:17] “Your wages will make you a living, but your investments will make you a fortune.”

Resources Mentioned:

Premier Law Group

The Real Estate Syndication Show

The Passive Investing Show

Do you want to build wealth? Surely everyone does. But knowing how to start building wealth through real estate can be tricky. It’s important to gain experience and learn from both your successes and losses — or learn from other people in the game.

In the seventh episode of the Passive Investing Show, J and Ashley are joined by Daniel del Real and Aaron West to discuss what you should consider in making investments so that you can build wealth.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[06:16] How to Create Passive Income

Separating themselves from their budget helped Daniel del Real and Aaron West build wealth. Find out what you can live without and what you can invest in for future returns. Invest in people, not in businesses. Make sure to find people who can pivot and adapt quickly when the market shifts.

[12:02] Lessons From Small Balls and Losses

Learn from playing the small ball. Long-term relationships are forged through returns on mental capacity and relationship capital, not investment. Listen to the full episode to learn the criteria Daniel and Aaron look at when investing and how they create long-term relationships!

[21:22] Criteria for Investments

Sometimes a startup idea can be great, but it isn’t the right time, or the wrong person is taking it to the finish line. Determine if you want the property. Make sure the operator has communicative knowledge. Look at their past performance, plan for the long term, and cash.

[28:55] Diversification in Your Passive Portfolio

At some point, your wealth will become more money than your bandwidth can handle. That would be the right time to diversify your portfolio.

Think about how you can be insulated so you can do well even if the market shifts. Diffuse the risk by investing in different assets. Understand that while investing takes mental capacity, you’re learning your capacity and earning your 4Cs to level up assets in the future.

[36:37] Investing Moving Forward

Due to the housing shortage, residential real estate will be as strong as ever. The fundamental housing issue might lead to homeownership becoming a novelty. If you want to buy a house, you should have an infinite mindset.

[39:36] Aaron and Daniel’s Investing Advice

Understand your fundamental principles and objectives. Stick to your principles and values because they are what will lead you to true freedom. Focus on making a base hit, then finding a new deal.

Notable Quotes from the Episode: 

[14:14] “You have to learn the unsexy first and the lessons that you learn playing the small ball and then in 5, 10 years, you’ll have an opportunity to level up.”

[21:46] “A lot of startup ideas are awesome. It’s either not the right time or it’s the wrong person that’s taking it to the finish line.”

[34:12] “If you keep outsourcing as an LP, that ‘C’ of courage, because you’ve never taken down a property yourself, you never find out what your capability is and never find out what your capacity is.”

Resources Mentioned:

@theaaron.west

@daniel_del_real

The Passive Investing Show

Investing in a startup can be risky and quite tricky. If you aren’t careful, you might find yourself losing all your investments. Knowing what to look for in startup companies and how to reduce risk is crucial.

In the sixth episode of the Passive Investing Show, J and Ashley are joined by Neal and Rakesh Gupta to discuss what your expectations and considerations should be in startup investment. They talk about exercising due diligence, reducing risk in investing, and the potential of crypto startups.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[03:41] What KiwiTech Does

KiwiTech engages in software development in exchange for partial equity and partial cash. It provides clients with development at a subsidized rate and a strategic partner to help them grow. They work with seed-stage companies that have software as a key component of their business.

[09:45] Working with KiwiTech

Direct investments are not easy to enter into with early-stage tech; KiwiTech’s platform is a diversified way to do so. Their Demo Days offer a format for portfolio companies to raise money by connecting them to investors and mentors. Initial investors and founders negotiate the investment, but their typical investment size is $250,000.

[13:57] Exercising Due Diligence

Look at the startup’s founding team. Most companies that become successful are the ones that have pivoted and done it well. Investors should also consider looking into the industries they have experience in since they will have a better understanding of how things work. If you want to reduce risk, look for companies with revenue.

[17:42] What to Expect in Startup Investments

When investing in a startup, assets can disappear quickly. Diversification is important; investing in more companies across verticals will reduce the risk of ending up with zero. If you’re investing in an industry that you are not familiar with, consult with experts in that field.

[24:47] Web3 and Crypto

Web3 has growth potential. Decentralized finances allow for more seamless and efficient national and international transactions. Crypto and NFT startups may have significant value creation in the coming years.

Notable Quotes from the Episode: 

[17:56] “In a startup, it can go to zero very quickly. There could be a variety of reasons that happen that are beyond the control of even the founders. So diversification is really important.”

[18:32] “If you invest in five startups, it’s possible you end up with zero because all five could go to zero. But if you end up investing in more, you have a better shot.”

[25:39] “Will Bitcoin go up by 10x in the next year? Probably not. But a crypto startup or an NFT startup could, so there’s opportunity for a lot faster value creation in doing picks and shovels for the gold diggers.”

Resources Mentioned:

KiwiTech

KiwiTech Demo Days

The Passive Investing Show

After years of lock down, people naturally want to go wherever they want for a vacation. The next best thing would be somewhere close by, within a couple of hours from home. This is why investing in RV Parks appeals to many.

In the fifth episode of the Passive Investing Show, J and Ashley are joined by Don Spafford to discuss what investors should expect in making RV Park investments. They talk about rentals, additional income opportunities, overall expenses, risks to face, and multiple other aspects of maintaining and improving an RV Park.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[07:41] Why Invest in RV Parks vs. Other Real Estate

Don Spafford narrows his reasons for liking RV Parks down to two things: first is that there is less competition so it’s easier to keep their purchase prices to a reasonable level and ultimately produce income for the return. The second reason is that RV Parks are something unique and different that other people are not really investing in so they stand out.

[12:47] Adding Value to RV Park Investments

Maintaining a strong online presence and improving your website so more people can find it is crucial. This includes online reservations and dynamic pricing — that alone generally adds at least another 5% to revenue.

Another way to add value to RV Park investments is by creating additional RV storage with more pad sites. It is important to add amenities like WiFi in case tenants want to work remotely.

[17:42] Source of Income

While the bulk of your income will come from rentals, RV Park investments can offer other additional income streams as well. Transient renters usually bring in the highest revenue. Having people coming in every couple of days will generate more income than having tenants for a month at a time.

[23:45] Compressing Cap Rates

When asked whether cap rates were compressing because of COVID, Don shared that while cap rates are indeed compressing, it is not necessarily because of the pandemic. Rather, it’s due to more people entering the RV Park investment space.

Notable Quotes from the Episode:

[39:13] “ [To] my kids and everyone that's looking to start in real estate when they're young, I say, ‘Hey, you’ve got to house hack’. That's the very best way you can get started with very little money and just save that huge living expense and save and invest for more.”

[26:30] “From my perspective, there's very little risk, you know, but of course, I've educated myself enough on this space that I know, but you know, somebody new coming in looking out and saying, oh, I want to maybe invest in that.”

[29:43] “Passive investors in real estate investments also rely on tax advantages.”

Resources Mentioned:

LinkedIn

Happy Camper Capital

The Passive Investing Show

In the fourth episode of the Passive Investing Show, J talks to Alexander Kanen about how crypto and blockchain are ripe to revolutionize the private equity and real estate industries. They talk about the benefits brought about by these new technologies, how we as investors can maximize its potential, and the developments that will be coming in the very near future.

Technology has continuously paved the way in reinventing old processes and concepts. Find out the exciting things that crypto and blockchain currently offer and have in store!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[02:33] Down the Bitcoin Rabbit Hole

Alex started dipping his toes into bitcoin after accommodating a certain client. Gradually, they designed a protocol to conduct a real estate closing using digital asset transactions. While passionate about crypto, Alex is more focused on the technology side of things and advises people to seek professional advice before using crypto.

[07:39] Crypto and Technology in Real Estate

Blockchain brings the benefits found in public markets to the private equity and real estate space. Equity tokens are digital counterparts to existing analog systems and instruments. They fractionalize the entity that owns the real estate, not the real estate itself.

Tokenization allows people to enjoy liquidity and price discovery. When you tokenize 40% of an asset, it grants you access to larger capital pools. It lessens the friction in the paperwork process once you find an investor. It also allows you to automate compliance, building it into the token itself.

[26:36] A Word of Caution

Syndicating to millions of investors may sound tempting, but there are regulatory requirements you need to comply with. Do not exaggerate the value of tokenization and liquidity. Industry-wide standards and secondary markets are necessary for liquidity to become a reality.

[31:53] Current State of the Real Estate Industry

Tokenization is progressing fast in real estate. However, secondary markets and universal standards are still needed to attain true liquidity. Regulation will keep the processes in real estate on track. With crypto and blockchain, ownership becomes sovereign and programmable.

[20:04] “Tokenization offers you to take a piece of your asset. Don’t sell the whole thing.”

[27:34] “It’s important not to exaggerate the value of tokenization. And it’s important not to exaggerate the value of liquidity in some of these cases.”

[36:16] “Little by little, [the advent of AI and blockchain is] transforming our understanding of ownership. Like we said before, it’s sovereign, programmable ownership. It is to disintermediate the gatekeepers, disintermediate the centralized points of vulnerability if you will.”

Resources Mentioned:

LinkedIn

Kanen Law

In the third episode of the Passive Investing Show, Ashley and J look back at an interview with top commercial broker and social media and branding expert Ryan Serhant. J and Ryan discuss how your mindset is one of your greatest assets. Shifting your perspective and changing the way you approach your business can make all the difference. In all of your endeavors, stay hungry!

J and Ryan also talk about building brands and scaling success.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[3:06] Nice Guys Finish First

The entrepreneurial world can be a ruthless place, but if your business fails, you’ll be left with who you are as a person at the end of the day. This is why Ryan strives to be someone who is smart and hardworking — and kind.

Ryan didn’t always think this way. He had a rough start in real estate, but both his desperation and his passion made him the entrepreneur he is today.

[7:50] The Winner’s Mindset

Ryan admits to being money-driven starting out in real estate. Being mentorless and an outsider to New York City shifted his perspective to wanting to self-teach, improve, and become better than everyone else.

Even after having established steady passive income streams through deals and agents, Ryan didn’t falter. He couldn’t stop pursuing business ventures knowing there was still more he could do.

[13:21] Goals and Giving Back

Ryan works hard for his future for the simple reason that he’ll have to live it out someday. It can be easy to want to shirk today’s responsibilities for tomorrow, but you will have to face them eventually.

Ryan admits to being money-driven starting out in real estate. Being mentor-less and an outsider to New York City shifted his perspective to wanting to self-teach, improve, and become better than everyone else.s possible.

[17:00] Ryan’s Passive Investments

Ryan believes strongly in education so he invests a lot into a digital education business — evergreen content. He also invests in real estate and has a rental portfolio.

In spite of COVID, Ryan believes that the real estate market is still going strong. With so much wealth creation as of late, people have been investing more in hard, unique, and alternative assets, and real estate.

Notable Quotes from the Episode: 

[3:41] “If all the business goes away, the world blows up, you're a good person or you're a bad person and I want people around me that like me.”

[10:07] “I love [being ranked eleventh best sales team in New York City]. Because now I only have up to go, and everyone else, one through 10, just gets to fucking wait.”

[14:12] “It's easy to roll through today and, ‘Whatever– I'll get to it tomorrow,’ but pretty soon, tomorrow shows up. And you have to live with the consequences.”

Resources Mentioned:

YouTube