How to Create Passive Income Without Burnout | Legacy Wealth Plan | Titan Impact Group

Catherine interviews David Hrizak, who spent 29 years in real estate before a near-death experience at 49 prompted him to start Streamline Capital Group at 50. He now focuses on multi-tenant medical office buildings and recently launched a pooled investment fund, emphasizing financial literacy and multiple passive income streams.
Questions this video answers
29 years.
On his 49th birthday.
At his 50th birthday (announced at that event).
They kicked off their first pooled fund 'late last year.'
Oakwood Creative Care (board president).
Chapters
Awesome. Let me get this live streamed for us. Hold on two seconds. Welcome everybody. Super excited to have you here. Super excited to talk with David and all the fun things. Hold on. I am not that tech savvy, but I can get this figured out. Going down to Facebook. So I am love this. Taking what we built on AI and now live streaming this so we can talk about that fun stuff too.
Awesome.
Live stream on Facebook. Two seconds. Come on. Okay. And go live. Here we go. It's being live streamed, says here, but it's waiting here. It's my Internet. Okay. There we go. Okay. So I am super excited to have everybody here and have David with us, which I'm really excited about. So everybody knows I'm Catherine with Titan Impact Group. We leave every personal property and community better than we found them. And everybody knows that. I love to make sure we all have seven streams of passive income. And I like to rent dirt and be the bank. And what's super cool is. David, you and I met, I wanna say it was like March. We met at Raise Fest.
February. Yes.
Yeah, February. Okay. Like it was somewhere in there and I was like struggling with carrying all the stuff back to my car. So you helped carry all the stuff back to my car. And you and I had this incredible conversation about you and your daughter and what you're building and all the things. And. And again, why I love this conversation is because it's about your version of the American dream, which I really love. And we're gonna talk more about that. But do you wanna talk about that conversation that you and I had had on the way back to the car? Cause I thought that that was a pivotal moment in yours and my relationship and then, you know, doing all the things moving forward.
Yeah. So Race Fest, for those of you that don't know, is put on by Hunter Thompson. It's a three day event with what, what would you say, 2,000, 2,500 people in attend around the world. We were fortunate that it was based in Phoenix, our backyard here, so we didn't have to travel. And through three days of speakers on stage, nobody touched me more, moved me more and motivated me more than you did, Catherine. And I knew that I needed to seek you out after you were done speaking. And I knew you were also busy. You were going to a book signing right after that.
Yeah. Yeah. Five international bestselling author. Yeah.
And I said, catherine, can I please have a moment of your time just to understand what you were talking about further. And you said, if you carry this box to my Car, I'll talk to you. And I said, I'll walk on my hands carrying that box as long as I can have a few minutes of your time. And throughout the five minute walk and five minute conversation, we hit it off right away. And I sought you out after that, set up a meeting. We've gone through some great AI training and coaching here at our team at the streamlined companies that you've given us. And it's always a pleasure to be on these calls with you, to see your smiling face, you're always dressed so elegantly, so professionally. Your demeanor, everything about you motivates me. And that's why I asked to be on your show, just so I just so I can learn more from you.
So, and so thank you for all that. And obviously I've loved working with you, love working with your daughter. Like, you know, like all the things you guys are doing and what you're doing and why you're doing it and your heart for doing it. Right. Like that's a really important piece for me. So let's dive in because again, I feel like there's so much more for us to share and I feel like there's a couple more that webinars that we're going to do about this. Let me share my screen with you and then where are we? Share. Okay. Do you see my screen?
I do.
Okay. Beautiful. Okay. So obviously my avatar, and here's what I love about this is my avatar happens to be women. Obviously yours is somebody different. And the whole premise behind how all of this works is still the same, which is really, really cool. Which is when we focus on our ideal client avatar, then we get the right message at the right time, you know, for that particular person, which is really exciting. So again, you just heard about David and my relationship and so let's talk about more about you and like your building your legacy and why you started this company. Like, I really love that story.
Yeah. So I have been in the industry for 29 years. However, after my, let's call it, 25th year, I retired. I had a near death experience while on vacation for my 49th birthday. Ended up in the hospital in Puerto Vallarta with a collapsed lung after being thrown off a horse. Could have been more severely injured had I not been fortunate enough to get up, walk away from that with only a collapsed lung. But while I'm sitting in the hospital in Puerto Vallarta, I said to myself, I have been going nonstop for 25 years. At this point, if I can get home, if I can recover I'm done. My wife had just retired from teaching here in the Arizona system. Our kids were pretty much grown and self sufficient at the time. I needed to reconnect with my wife, live my life with her. That I had kind of put on pause for many, many years of our relationship just because I was building the business and helping people. But after 10 months of that retirement, which I now call a sabbatical, I missed my purpose. And I realized what my purpose was when my current business partner, Scott Roney, came to me looking for a new challenge. I said, Scott, I enjoyed the most thing I. Most important thing I enjoyed in my career was helping others build passive income through real estate, which has made me so successful, which had allowed me to retire at that point because of the cash flow I had coming in from my investments.
So I just want to stop right there. So really important, because you said a couple things that are super important is okay, so one of the things I talk about is the importance of seven streams of passive income. One, it's the average millionaire has seven streams of passive income. But for me, why is it so important? And for you, it's that most families will experience three of the five Ds in their lifetime and if they don't have their financial house in order, they're going to be devastated. Right? So it's death, divorce, diagnosis, downsized, or being dumped. You falling off that horse was a diagnosis, right? Was a really important part. And if you had not had your financial house in order and you know, say, let's just say you were working paycheck to paycheck, that could have potentially been financially devastating. Right? So like you get the impact of creating that financial stability so that when you didn't plan on going and riding a horse and falling off and being in the hospital in another country, Right? But had you not had your financial house in order, that literally could have been devastating.
Absolutely, absolutely. And I was taught at a young age to do that, just like we're trying to teach people right now.
Right. And not a lot of people have been taught that like financial literacy is the unfair advantage. So this is huge, what you're doing inside of this legacy that you're creating moving forward.
So who stepped up to be my head coach in life? This four foot nine little lady that never learned how to drive, taught me how to ride the buses on the south side of Chicago, go downtown, go to the White Sox games, all on the bus. And the grit, determination, loyalty, work ethic, everything that I have today is because of my grandmother that's incredible.
Okay. Really quick. Really quick because people can't see you. How tall are you?
Six foot four.
Okay, you're six foot four. And your grandma, well, she was four.
Foot nine or so. No, I wasn't six foot four when I was being raised, but I was always taller than my grandmother.
Right. I love that. But what a powerful legacy for her to give that to you.
She was tough as nails, but compassionate as well.
Right. Okay, so you. You, after your sabbatical, your partner comes to you and says, you know, hey, I want to do the thing. So let's talk about the thing.
Absolutely. The thing is helping others, teaching others, giving back to others. So we started Streamline Capital group at my 50th birthday party. I said, this is my plan. Are you in? And Scott said, Yes, 100, I'm in. So we. We kicked off Streamline Capital Group to build on my success. In my knowledge, we've done a couple more single assets indications here in Arizona, where we've bought class B and medical office buildings. And I said, scott, let's ramp this up. Late last year, we kicked off our first fund. And the fund is designed to be a pool to go out and buy multiple properties within this same fund, within the same LLC investing entity. So reaching out, meeting new people, teaching new people, building new relationships has been the road that I've been on over the past couple of years. And just today, I had breakfast with a retired NFL player. I never thought I'd be sitting down with an NFL player in my life, let alone breaking bread with him, talking about our families, talking about our upbringing and how similar they really are.
Right. And it must be incredible conversations.
It is. Just to hear their lifestyle, how it used to be in the NFL and how it is today. They're normal people.
Yeah.
It's amazing.
Right. Well. And normal people that had a dream and went for it. Right. Again, it's the whole, like, my company, Titan Impact Group, Titans being the sentinels of the American dream, whatever that looks like for people. It's one of the reasons I love this country. Yes, I'm Canadian. Yes, I have a dual citizenship, but I have a different appreciation for this country and what it's created. So I just want to go back. Really important. So it's interesting inside of having these conversations with these professional football players, like, yes, they're professional inside of what they do, any profession. And the piece of, you know, I mentioned that financial literacy is the unfair advantage. So the piece that I love about, you know what, where you and I align is the addressing people's lack of financial literacy. And now we get address, get to talk about the hard thing. Football players, like, yes, they're professional inside of what they do, any profession. And the piece of, you know, I'd mentioned that financial literacy is the unfair advantage. So the piece that I love about, you know what, where you and I align is the addressing people's lack of financial literacy. And now we get address, get to a talk about the hard things, right? Their fears around investing, the fears of not understanding, feeling stupid, you know, not wanting to ask those questions. And again, the piece that I love is like, that I feel like, you know, like Wall street and stuff. Like, they use the big hard words to have people stay stupid or feel stupid so they don't really fully engage with their money and take responsibility for it. And what you and I both know is that, you know, nobody's your money is. How do I say this? It's like you're the only person who cares. Nobody's going to care more about your money than you 100%.
Right.
You must be educated. And what I love about, again, you know, having conversations with you like, this is where you and I align. It's like bringing the vocabulary, the language, like having people understand, look, it's not that hard. Like, it really is basic math and basic language, and we're just not going to talk to you, you know, over your head. So it's just, you know, helping educate inside of that. So do you want to talk about, like, how you go about educating, you know, people that want to invest with you?
Yeah. One of the easiest things to do is to talk over somebody's head in this industry. I could talk to you about 100% bonus depreciation, what it does for your taxes. But we break it down into simple terms. I love going into the room not being the smartest person because I always want to learn from other people. Right now, when I'm in a room of people talking about investing, I may be or may not be the smartest person in the room about that topic. But it's for me to simplify it into terms that people can understand. And the biggest term, the biggest explanation I could say is the IRS does not reward you for being successful. What they do is they tax you more. The IRS rewards you for having a strategic plan. And that's what we're here to do, is help you with your strategic plan to keep more of your money, invest more of your money. And ultimately, the more money you have, the more you can also give away to Help others. Right. I'd rather give my money to the people I want instead of to the government.
Yes. Let's talk about that for a sec. That's definitely my soapbox, is that, you know, I believe, I firmly believe one money is like oxygen. The more you have, the easier it is to breathe. And the more you have, the easier you can breathe, the bigger the difference in the world you can make. So if you can add commas and you can make a difference, you must do it unapologetically. So let's talk about. I know we're scrolling off, but this is really important because I know like for me, my nonprofits of getting the 120,000 adoptable children, the US foster care system adopted, like I believe that's my purpose on the planet. And I know you, you have a heart to serve inside of that. So like let's talk about that for a second where your heart is and the impact that you're here making.
Yeah. So as I mentioned earlier, my grandmother was the influence of my life. And when she passed away with Alzheimer's, she didn't know who I was. That hurt. So what I'm.
Anybody who hasn't been impacted by Alzheimer's.
If you have not yet been impacted by Alzheimer's dementia, you will. It's unfortunate, but. So what I do is I'm the board president of Oakwood Creative care. It's a 50 year old organization based in Mesa. And we have a series of day clubs where if you have a loved one suffering with this disease, we bring them to our clubs on a daily basis to give them dignity through engagement. Our CEO, Sheri Friend, she has a no bingo policy. She said you're not going to sit down and just watch TV and play bingo. You're going to get up, you're going to dance, we're going to do Zumba, we're going to do arts and crafts, we're going to have our music lessons, we're going to have our own in choir. So it's giving them joy at the time of their life where things are probably the most dark that they ever have been.
Right.
And now Oakwood has expanded to help the caregivers, the loved ones deal with this disease and learn from this disease. We're in the mid, we're in the middle of a build out of their new facility, a 12,000 square foot facility in Chandler that is going to be the biggest location for Oakwood and serve the most people for, for the Southeast Valley. Yeah.
This is extraordinary. I love this.
It's one of the greatest life's experiences is to take care of those who once took care of us.
Right. Yeah. I love that. That was, I know for me having our grand in Canada, we had my grandparents live with us, you know, right up to the time that they passed. And it was like the most precious, beautiful. Never played so many cards so much, so many crib, like we played crib all the time and puzzles and just whatever. But it was that time together that's so precious. But now that obviously a lot of families don't have that ability, you know, doing what you're doing is so important inside of the community.
Yeah. You know, I heard a statistic our generation, you're in mind we're the first time that multi generations aren't living together. Growing up in Chicago, there were two flats everywhere where grandma and grandpa would live on one floor and the family would live on the other. And they would commingle their money and help each other because a lot of us came to this country with nothing. And they built up their families little by little and their businesses and ultimately they saved money. And it's a great way to get investing into real estate when you need to start out small just by living in a property that you could potentially rent out as well. Right?
Yeah. So important. I love this. Okay, so moving forward, what's interesting, let's talk about the medical space that you invest in. I swear, my favorite asset classes. So let's talk about this for a sec.
It's resilient to the economy whether times are good, times are bad. People need a doctor and we invest heavily here in the Phoenix market. Our population is growing, our population is aging. We have medical schools moving into Arizona. We have Arizona State opening their own medical university. We have Mayo Clinic investing billions of dollars to expand healthcare is not going away. It's an industry that will be here forever. And when we have an opportunity to buy a multi tenant medical building, it diversifies our investment by having multiple tenants there. If one were to move or retire. We're not faced with 100% vacancy like a single net single tenant building would be. We love having doctors and medical professionals as our tenants A because they typically invest a lot in their space and they don't like to leave. So they're long term tenants. And in our management philosophy we convert them into triple net leases where they participate in expenses of the building. And ultimately having doctors is just a great investment.
Yeah, absolutely. Again, it's like when we just look at the overall economy and where we're going and what's driving it, you know, again, baby boomers, like, if you just look at that, if you go back and you look at history, right, the. When the baby boomers, when they were born, like, what were the, what were the. How did they drive the economy and what happened? Like, if you think of Gerber, Toys R Us, like all the way through, and if you can get in front of the wave, in front of the curb, like, what's coming next? Medical is a big piece of it.
Absolutely.
Which is really important. And again, to be able to serve and take care of them is super, super important. So, yeah, so David and I are going to be working together on some of these projects, which I'm really excited about. So stay tuned. We're gonna be talking about that and I can't say all the returns and all the things, but yeah, let's just say super happy. And again, David talking about the impact of job creation. This is a piece of leaving every person, property and community better than we found them.
Yeah, we love buying older buildings that need rehabilitation. To them, we invest heavily in capital improvements, tenant improvements. I bought a building two years for $5 million. We immediately put a million dollars of improvements into it. It has taken that and catapulted that property into, I want to say, one of the nicest class B medical office buildings in the valley. And we have such great deal flow right now that's coming my way to invest in our communities, leave them a better place.
Yeah, I love that. So, so for people who are looking to invest again, this is where you and I making it simple, right? So that the average investor, the average person can get in. So what's interesting is there's lots of ways that people can invest through their, you know, and it was, I mean, just recently, what, last week, Trump signed something that people can use their 401k to now invest in deals like this. Like, that's really extraordinary.
Yeah, there's trillions of dollars locked up in 401ks and IRAs that are forced to only invest in stocks and bonds and private investments. Like what we're talking about today has always been something for the elite. Now it's being opened up to the public.
Yeah, this is really important. One of the things I like to talk about is, so I've wrote lots of books myself, but one of the books I didn't write, but I think is super important is this one. It's Tony Ro Robbins, the Holy grail of investing. What I love about this is that he interviewed a bunch of billionaires inside of this and said, what do you invest in? Like, not what you tell, you know, what with Wall street and everybody else tells you to invest in, but what do you personally invest in? And you know, like one of the biggest things, private equity, which is exactly what we do. This is really, really important. So I always like to say success leaves clues. So again, if you do the same as, you know, other successful people, you should get the same, if not similar results. So again, this is a really brilliant book inside of Educating. And he puts it in just layman's terms so that it's not complicated. Anybody can understand this. So again, another resource to understand more about what David and I are talking about and you know, to get you to the next level, which again is all about for us, it's about getting you to that seven streams of passive income. Because I promise you, and I hate to say this, but I'm going to talk about the hard things, is that all families will deal with at least three of the 5Ds in your lifetime. So you want to have your financial house in order. So again, those five Ds, death, divorce, diagnosis, downsize, being dumped. We don't want to talk about it, we don't want to plan for it. But unfortunately, just like David, you didn't plan on falling off that horse and having all those, you know, issues come up. So what I'm really excited about is Thursday we're going to have a Q and A where we're actually going to talk about this. We're going to talk about the medical offices again, one of my favorite asset classes, and working with really good operators who are really good at this particular asset class. So I want you to come back on Thursday. It's at 12:30 Pacific time. We're in the Pacific time zone now. And David, you and I are going to dig in and start talking more about all of this. People can ask questions about us personally too, and we always love that.
Absolutely. I'm an open book. There's nothing I wouldn't talk about. And to simplify things, you use the term passive income a lot. And that's what we're designed to do. People have their own careers, their own businesses. Let us simplify it. Don't. You don't have to deal with tenants toilets and trash. That's our responsibility.
Right. And this is different, obviously, than typical tenants, Toylands and Dash. Oh, let me say this, the other piece, why I love this so much and a lot of people don't understand. There's the whole B2C, which is business to consumer. Then there's B2B. And David, I'm sure you're, you know, again, while you're in this, like, for me and my personality and David, you and your personality, it's just, it's. I prefer to do the business to business relationship rather than the business to consumer. And so that's a huge part of why. I know, for me, the medical offices, it's just nicer, not dealing with tenants and toilets.
Right. We're able to scale by going B2B.
Right? Yeah. So the next steps is, please come to the call on Thursday. You can also go and talk to my clone, Katherine Bell AI, you can reach out to David. We're going to have all the links and we can watch the recording. I'll send this out as well via email. It's also on the YouTube page and on all the social media. But, David, anything else you'd like to share before we let everybody go for the rest of the day? Because I know people have got crazy busy schedules, but I'm super happy for everybody that is here and has joined us for this conversation.
In our industry, there's thousands of operators like myself. What sets myself and you apart from others, Kathryn, is our compassion, our openness, and our ability to lead and help others. We're not in here necessarily just for the goal of making money. We're here to help others. And the byproduct of that is making some money.
Right. Again, it's that whole, like, if you can make a difference, you must.
Exactly right.
And you must do it unapologetically. Like, it's just. It's our responsibility. So I really love that you. You embody that, which is really amazing. So with that, thank you for being here. I can't wait for Thursday for us to continue this conversation. So, people, everybody bring your questions and we're gonna have a whole conversation on Thursday about this. So, David, you're amazing, super happy. I see Maggie here. Maggie's amazing. We love her. That's your. That's his daughter. For all of you who don't know, I have the pleasure of working with all of them. And anyways, so with that, I hope you all have an extraordinary day. David, thank you for being here. And I look forward to having this conversation on Thursday.
Thank you, Catherine. Thank you for the opportunity to help touch people's lives.
Absolutely. Okay, have a great day, everyone. Bye, bye, bye, bye.
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