Lane Kawaoka: Simple Passive Cashflow

Simple Passive Cashflow, with Lane Kawaoka

In today’s podcast, we interview Lane Kawaoka, the “engineer passively investing in real estate”. He controls over 2600 units across ten states, and is the host of Simple Passive Cashflow. He recorded the show from Belize, where he was doing due diligence on some coffee and chocolate farms.

We’re discussing his journey to financial freedom and passive investing secrets for the working professional.

Where Cashflow Investing Fits Into the Cash Flow System

Building income from assets is a big part of creating financial freedom. Because when you have enough income from your investments to cover your monthly expenses, you’re financially free. However, cash flow investing is just one step in the bigger journey to time and money freedom. You have to have good money habits to produce wealth systematically.

Unique Ability Investing

That’s why we have created the 3-step Business Owner’s Cash Roadmap. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Who Is Lane Kawaoka

Lane Kawaoka is a Licensed Professional (PE) with a Masters degree in Civil Engineering with an emphasis in Construction Management. He also holds a Bachelors in Industrial Engineering, both from the University of Washington. As an engineer, Lane has managed over $230 million of capital construction projects in both the public and private sector. Aside from his day job, he controls two manufactured home parks and 15 apartment buildings, and one Assisted-Living Facility, totaling 2,600+ units in 10 US Markets.

Lane Kawaoka: Simple Passive Cashflow

Lane’s passion project,, is a free podcast and online learning resource in passive real estate investing. Working as a high-paid professional in corporate America, and frustrated by the traditional wealth-building dogma, Lane was compelled to inspire and mentor other working professionals on how to do real estate investing and build their portfolios. Lane urges other working professionals to get started by utilizing their highest and best use (their day job) to save for the 20% down payment for a conventional loan to acquire a single-family home rental. The Simple Passive Cashflow method is to only buy investments with a healthy cashflow buffer that can withstand a market downturn.

In addition to mentoring, Lane Kawaoka also partners with beginning investors who want to build their portfolio, but are too busy to handle direct investments. He uses his engineering mind, investing knowledge, and network to crowdsource due-diligence through the 2600+ members of the Hui Deal Pipeline Club. Together they have placed over $15 Million worth of capital.

Conversation Highlights

  • Lane Kawaoka’s path to passive cashflow, starting with his first A-Class property, to building a portfolio with turnkey properties, to syndication and private placements.
  • Ideal rent-to-value ratios should be at least 1% to invest for cash flow. (Rent to Value = Monthly rent/purchase price of the property)
  • Typical conventional financing with Fannie Mae and Freddie Mac loans caps at ten properties per person.
  • How working professionals can get started with investing, based on their financial situation.
  • Building a portfolio quickly is about who you know. Build your network because that determines your net worth.
  • Residential real estate is based on comps, while commercial real estate is about net operating income (NOI = income – expenses).
  • If you raise rents by $100/property in a 100-unit apartment complex, that’s $10,000 extra income/month = $120K extra NOI. Value increase = NOI/Cap rate, so $120K / 10% cap rate = $1.2 Million increase in value.
  • The downside of using a Self-Directed IRA to invest in real estate is that you lose tax advantages like cost segregation and bonus depreciation. You also become subject to UDFI tax on the leveraged portion.

Connect with Lane Kawaoka and Simple Passive Cashflow

Find out more about Simple Passive Cashflow, learn about Lane’s investments through: 

  1. Passive Investor eCourse
  2. Passive Investor Accelerator and Mastermind
  3. HUI Deal Pipeline Club
  4. Tradelines Course

Start Building Your Cash Flow Today

To personally implement Privatized Banking or discover cash flow strategies to keep more of the money you’re making, book a Strategy Call

You’ll discover the one thing that you should do right now to accelerate your path to financial freedom.

Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.

Rachel Marshall

Rachel Marshall is the Co-Founder and Chief Financial Educator of The Money Advantage and President of Marshall's Insurance and Financial Services. She is known for making money simple, fun, and doable. Rachel has built a team of licensed professionals (investment advisors, insurance agents, attorneys, tax strategists) to help her clients create time and money freedom with cash flow strategies, Privatized Banking, and alternative investments. Rachel is the co-host of The Money Advantage podcast, the popular business and personal finance show. She teaches how to keep more of the money you make, protect it, and turn it into cash-flowing assets.
Denis Shapiro

How Accredited Investors Can Increase Income Through Alternative Investments, with Denis Shapiro

By Rachel Marshall | July 19, 2021

Are you frustrated with the volatility, fee structure, and abstract nature of most investments? Do you feel that you’ve outgrown the status quo investing strategy and want to play a bigger game with your investing? Have you heard of alternative investments, but don’t know where to get started? Do you need investments that are built…

Read More
5 Reasons Your Financial Plan Is Failing

5 Reasons Your Financial Plan is Failing

By Rachel Marshall | July 12, 2021

Are you on track for financial freedom? If you don’t know the answer to this question, you’re not alone.  Most people think the answer is how much more they have left before the house is paid off, how much left on the student loans, the balance of their retirement fund, the stock market’s performance, the Federal…

Read More