The Professor's Guide to Passive Real Estate Investing with Allen Lomax - REIA 433

So how do we get started with passive real estate investing? Well, if you've dreamed of financial freedom but consider it to be an impossible dream, I've got good news for you. You don't have to be a millionaire to get started. Many people are very, very surprised at how little it takes. People are further surprised they already have the money it takes to create a passive income investment plan that generates substantial residual income.

Welcome to Real Estate Investing Abundance, the show for busy, fulfilled professionals like you to learn how to develop financial independence built on solid passive real estate investments. Now, here is your host, Dr. Allen Lomax.

Hello, enlightened investors, and welcome to our coaching series, Investing with Purpose: The Professor's Guide to Passive Real Estate Investing for the fulfilled and altruistic professional. I'm Dr. Allen Lomax, and I'll be your guide through this series. From early struggles to remarkable success, my life's journey, not unlike many others, is a testament to resilience and the power of perseverance. Despite initial labels of being a slow learner and the advice of a well-meaning high school counselor to pursue a trade rather than a university education, I now hold a PhD in organizational systems psychology and continued to enjoy an engaging, fulfilling career as a professor of psychology. Eventually, I broke the financial constraints of a professor's limited salary by balancing the work of my calling in academia with wealth building through real estate investing. Today, I use my journey to inspire and provide roadmaps to fulfillment, empowering fulfilled professionals to fulfill their passions and flourish abundantly in all areas of life, including dramatically enhancing their financial well-being. Today, I want to explore with you the avenue that changed my financial well-being from dependence on a professor's W-2 income to developing an independent stream of passive income. I hope to inspire you to follow the roadmap that I used on my journey to empower you to follow your passion and at the same time dramatically enhance your financial well-being. Investopia offers 3 simple steps on how to acquire wealth. The many real estate investment professionals I visit with apply all 3. First, they make more money than they spend. Number 2, they avoid debt. And 3, they invest their savings wisely. Many of the guests on my podcast have told me it isn't how much you make that matters All that matters is how much you keep. The 3 steps on how to acquire wealth seem simple enough in theory, but in practice, all 3 can be challenging because they take discipline, focus, and knowledge. Successful professionals of all stripes most certainly do not lack discipline. They're successful professionals because they are disciplined in their fields. An important aspect of discipline is the ability to delay gratification for rewards for long term gains, and successful professionals have these strengths in abundance. Many have spent years acquiring education and expertise before financial rewards of any kind begin to materialize. The years of study not only require discipline and time, but it also requires financial investment. Because of the financial burdens associated with the educational process, many professionals begin their careers buried deep in 6-figure debt. Not only are well-educated professionals behind the 8-ball economically compared to some in other professions with less educational requirements, but they are also behind others due to the later start in their careers. Being buried deep in debt, even with immense amounts of discipline, makes it a challenge to save to invest. Plus, if you're like many successful professionals, your interest and your focus are dedicated to your field, not on the question of how to acquire wealth. In the life of many successful professionals, there has been little time and perhaps even less interest in learning about the field of investing. Lacking investment knowledge, how can one invest wisely? Investopia's 3 simple steps to acquire wealth, when layered with the complexity of real life, can make the attainment of financial freedom seem like the impossible dream. Some even begin to despair that they may never attain financial security, much less wealth, even after 30 to 40 years of work in their fields. Yes, as I have learned from my own experiences, as well as from numerous interviews with professionals who passed through these trials, it is possible to engage in a fulfilling career that contributes to the betterment of humanity and the world at large, while discovering how to acquire wealth. The many financially successful professionals I have interviewed discovered these secrets of wisely investing in real estate by applying their well-developed discipline and acquiring just a basic understanding of real estate investing. They have attained financial well-being. These inspirational stories show us that we can be kind, caring, compassionate human beings committed to using our fields of expertise to solve some of the biggest challenges facing our world, and at the same time we can develop our own financial well-being through real estate investing. As these professionals have learned the power of real estate investing, they have discovered even more avenues to take their field of expertise into the world to provide even more services to a world in great need of their skills and knowledge. What they learned is that with financial wealth, they can pursue their field of interest on their own terms, apply it where they see the greatest need, and they can do so in their own timeframe. In other words, enhanced financial well-being brings time freedom, and with financial and time freedom, they have more resources to do even more than perhaps they had ever thought possible while flourishing not just financially but in all areas of life. Why hands-off passive real estate investing is the right vehicle for busy, fulfilled professionals. According to Forbes, hands-off passive real estate investing is a powerful vehicle for wealth creation. More millionaires have made their fortune through multifamily real estate investing than any other investment asset sector. A 150-year longitudinal study conducted by the Federal Reserve Bank of San Francisco found that real estate investment provided the best returns and more consistently than any other investment vehicle. There are many ways to invest in real estate, but multifamily investing is the most advantageous for passive investors. A good multifamily syndication provides cash flow, tax advantages, equity that grows with appreciation, and that crucial element of leverage. No other investment I know of offers all of these elements in one single investment. So these elements in combination are the force that shifts a basically secure but average-performing investment portfolio into a wealth building machine that can change a comfortable life into a life flourishing with financial well-being. Though the financial benefits are abundant, not all benefits are necessarily tangible. As a passive investor in multifamily properties, we can expect to take pride in ownership of a well-designed and expertly managed apartment complex. We can find fulfillment by being an integral part of the team that transforms a crack house community into one where supervised children can play safely in the playground. We can be a full participant in the effort to solve the current USA housing shortage by providing affordable, comfortable, and aesthetic workforce housing to a community in desperate need. These benefits all come without the headaches of tenants, toilets, and trash. The tangible benefits are also extraordinary. We can expect a regular cash flow on our investment of 8+%. And we can also expect on average, once the investment comes to full fruition, we can expect an average annual rate of return of 16+% and with that comes the equity multiplier of at least 1.7 and generally much, much more than that. We can expect to build wealth to enjoy it now and also We can leave a legacy for our family. We can develop a passive stream of income for time freedom to just do more good and with the short time that we have on this planet. And we can do so with experiencing less fluctuation and higher returns than we could expect in the stock market or bonds. So we can significantly reduce our tax liability And we can rest safe in the knowledge that the asset that secures our capital is a fully insured asset. So how do we get started with passive real estate investing? Well, if you've dreamed of financial freedom but consider it to be an impossible dream, I've got good news for you. Financial freedom is not only possible but also realistic and attainable. It doesn't happen by accident. Becoming financially independent does require a plan. That plan should include learning how to get started with passive real estate investing. The good news, you don't have to be a millionaire to get started. To start a passive investment real estate plan, you do need some money, but many people are very, very surprised at how little it takes to get started in passive real estate investing. People are further surprised to learn that they already have the money it takes to create a passive income. investment plan that generates substantial residual income. In later lessons, we'll discuss the means that you already have at your disposal to invest in passive real estate cash-flowing properties. Well, what is passive real estate investing? Most people think that real estate investing is anything but passive investment. Many people perceive a real estate investor as someone who owns and manages rental property or or buys to fix and flip. HGTV has made this fix and flip a popular topic, and many people perceive it to be ubiquitous with real estate investing. But even though fix and flip is often portrayed as an investment, it is really anything but an investment. It is a second job, and the more of these projects one becomes involved in, the more demands there are on one's time and energy. The other reason this is not an investment is that with each flip of the property, the cycle begins again with the process repeating and repeating itself over and over. And there's no passive buildup or preservation of capital. The other option in single-family real estate endeavors is rather than fix and flip, one can of course fix and hold for rental income. This is an investment as it does produce continuous income. Offers depreciation and produces depreciation and appreciation, and it provides for leveraging the property. Well, that all sounds good, but the problem for busy professionals is that this picture brings to mind tenants, toil, and trash— the 3 big T's of toil, trouble, and torment. These are 3 frustrations that all successful unfulfilled professionals can and very muchly should avoid. The other problem is that it takes a considerable number of single-family units to develop measurable wealth. Though, through tremendous effort and persistence, some have eventually developed considerable wealth through this process, it is not an effective means of substantially scaling one's financial well-being. On my podcast, I've interviewed several hundreds of individuals who began their investment career in this manner but now invest in multifamily. Almost universally, they tell me, I wish I had skipped the single-family process and started with multifamily investing. I could have missed the long days and sleepless nights, and I would be further along in my wealth-building journey. Today I want to introduce you to a game-changing approach to real estate investing. This method can open up a world of opportunities for busy professionals that will allow us to tap into the potential of this lucrative market without the typical hassles and headaches. This approach doesn't involve becoming a full-time landlord or flipping properties. So welcome to the lucrative world of passive real estate investing. Let's delve into the distinction between passive and active real estate investing. Active investing means you're hands-on managing your own properties directly. Conversely, passive investing means owning properties while someone else oversees and manages the property, taking care of the day-to-day operations. We at Steetacher Capital specialize in passive investing through real estate syndications. I understand that at any level, investing in real estate can be intimidating, especially if you're new to the process. There's often a misconception that high returns are associated with shady deals, and terms like syndication can just Confuse the, the matter even further. But let's just clear up one thing. Syndication in its simplest form is just a group of individuals pooling resources to achieve a common goal. Our approach to investing is transparent, it's regulated, and it is fully compliant with Securities and Exchange Commission regulations, ensuring Our investors that they are well taken care of and that our investments are indeed very, very legitimate. Regarding real estate syndication, there are 2 lead players. There's the active investor and the passive investor. The active investors handle property sourcing, underwriting, asset management, and the property oversight. Meanwhile, the passive investor provides the capital without the hands-on responsibility. This means you can reap the rewards of real estate investing without the time and effort of traditional methods. In summary, passive real estate investing through syndication is an innovative, hassle-free choice for busy professionals looking to diversify their investment portfolios and generate passive streams of income. So let's debunk the myths, seize the opportunity, and embark on this passive real estate investment Journey together. To be certain, locating real estate for passive real estate investing is an arduous process. It involves sourcing the property, underwriting due diligence, presenting and negotiating offers, financing, insurance contract negotiations, overall management of the asset, property management, investor relations, and disposition through refinance or sale of the property at the end of the cycle. It is clearly a complex process requiring expertise, time, and persistence, and that is why Steedtaker Capital is here to make the real estate investment a passive process for our equity investors. Steedtaker Capital brings the completed package to the potential investor. And this is what you really need to know at this particular point in time, is that Steedtaker Capital Provides you with everything you need to invest your capital passively and then to just sit back and reap the rewards of that. In future lessons, we will explain the passive investment process from start to finish. Just briefly, I'll provide an overview of the process that we take every investor through to support them in making the decisions whether or not to invest in any particular investment. We always introduce the property via a webinar that describes in detail the property. In this webinar, we break down the underwriting and explain why the investment makes sense financially. We'll talk about the returns that can be expected, and we'll share and discuss the distribution processes. We'll go through an overview of the business plan, That will be employed to add value to the property, and if the information shared in the webinar provokes an interest to invest, we will then schedule private consultations with each potential investor. The consultation will reexamine the investor's values and life purposes to ensure that the investment is appropriate to the investor's goals and expectations. The consultation will also review the 3 critical parts to the offering package, which are the property, Private Placement Memorandum, the Operating Agreement, and the Subscription Agreement. I'd love to hear your thoughts and concerns and would love to have a consultation with you. The easiest way to do that is just to go to our website, steedtucker.com. That is Steed as in the horse and Tucker as I am doing now, steedtucker.com. And in the upper menu, click on the Resource tab. And in the resources, click on the 15-minute free, no-obligation consultation. There you can schedule a time to meet with us and discuss whatever it is you'd like to discuss in conjunction to your aspirations and goals in terms of your financial well-being. Until next time, flourish and live abundantly.

Thank you.

Enlightened investors, wait, wait, don't go just yet. I just want to remind you about our recently launched webinar that you will not want to miss. If you're at all curious and would like to learn more about how real estate investing can diversify your investment portfolio, alleviate the anxiety associated with Wall Street swings, leverage your 401s and IRAs to substantially increase the return on your investment, and do all of this with turnkey, hands-off, passive real estate investments, then Then you'll want to immediately go to stevetalker.com/webinar. In the webinar, we'll also address the common dubious investment schemes that you want to avoid. To access the webinar, go to stevetalker.com/webinar. I look forward to seeing you in the webinar.

Thank you for tuning in to Real Estate Investing Abundance, brought to you by Steve Capital, a company working for passionate professionals like you to develop financial independence built on solid passive real estate investments. As part of our efforts to make the world a better place, Steve Talker Capital contributes to activities and organizations committed to better understand the equine. These endeavors attempt to enhance the human treatment of horses worldwide. Steve Talker Capital, working for a world where all creatures great and small flourish abundantly. For resources to develop your financial independence, connect with us at stevetucker.com.