PassivePockets: The Passive Real Estate Investing Show

Christopher Saylor is the founder and Managing Partner at Pikes Peak Capital, which manages high-return distressed real estate funds. Pikes Peak Capital buys and sells single-family residential real estate across the nation and provides a path to homeownership for low-to-moderate-income individuals.  They typically look for opportunities others dismiss as too difficult or too different and have managed 4 funds with over $10M in transactions in 36 states. In this episode, Christopher discusses how Pikes Peak buys distressed properties and help homeowners stay in their homes while providing quality returns to investors.Christopher talks about his first two funds and the strategy of buying low value single family homes that banks are not typically interested in.  The firm sells the properties to low to moderate income home buyers who are often locked out of financing from banks.  Pikes Peak will help them with the financing rather than the buyer going through a traditional bank and then sell the paper on the secondary market.Christopher discusses how Pikes Peak sets up automatic screens to filter thousands of properties to find the ones they want to perform additional due diligence on. He talks about the original plan of doing all property evaluation in a spreadsheet but realized the team also need to visit the properties which they do through using services who perform this function for them.The third fund – RDMO (Residential Distressed Mortgage Opportunity Fund)– focuses on assets from $100,000 to $750,000 and the source of acquisition is both pre and post foreclosure and NPL (non-performing mortgages).  The strategy for nonperforming mortgages is to work with the borrower to find a mutually beneficial solution.  After the loan is rehabbed, Pikes Peak sells the loans on the secondary market. If they can’t work out the loan with the borrower, cash is offered for deeding the property and if that doesn’t work they go through the foreclosure process or resell the loans on the non performing secondary market.Christopher discusses Home Ownership As A Service – Pikes Peak extends financing to the borrowers and tries to ensure the borrowers are set up for success while providing financial counseling, and offering to buy the houses back from struggling borrowers.Podcasts he recommends:Money Talks The RobCast To connect with Christopher,  email him at christoper@ppch.co  or call or text 719-659-4576.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.  Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Bob Fraser is the Co-Founder & Principal at Aspen Funds, a residential mortgage fund. He worked in tech and in the stock market before starting his notes investing fund eight years ago.  In this episode, he talks about investing in notes, his outlook for the economy, why he is not concerned about inflation and ends with a discussion on Bitcoin and cryptocurrencies.Bob explains that buying notes is just buying mortgages on real estate. He talks about Aspen funds and how they focus on notes on single family homes. Bob discusses the difference between performing notes and non-performing notes. He explains that when they buy non-performing notes, they rehab the loans and once It’s performing again, they sell the paper.Bob talks about the note underwriting process and why they prefer second position mortgages when they are available.  He also discusses the market for re-performing loans and how they find the loans to buy. He then talks about the pandemic and how it did not have a large effect other than causing many people to pay off loans early.Our discussion turned to the economy and Bob explains that he sees a “screaming” economy for the rest of 2021 and 2022 depending on the reactions of the Federal Reserve.  He is not concerned about inflation because the economy is coming up to full capacity and discusses the factors that have prevented inflation in the past even through the massive money printing and how it expects those trends to continue. Bob explains why wages, oil and food have deflationary forces that are helping prevent inflation.Bob discusses how he changed his views on money and is now a believer in Modern Monetary Theory (MMT).  He mentioned that he is not concerned about government deficits because those have historically been reduced and eliminated by inflation.Bob ends the conversation talking about cryptocurrencies and why he prefers Ethereum to Bitcoin and other altcoins. He also discusses proof or work versus proof of stake.Podcast he recommends:Invest Like a BillionaireTo get access Bob’s comprehensive 2021 Economic Forecast go to www.aspenfunds.us/resources. Bob mentions the following book:This Time Is Different: Eight Centuries of Financial Folly To connect with Bob go to www.aspenfunds.us.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.  Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Paul Moore is the Founder & Managing Partner of Wellings Capital, a real estate private equity firm focused on mobile home parks and self-storage facilities.  He is an author, podcaster, a regular contributor to Bigger Pockets and an experienced real estate investor. In this episode, Paul talks about forcing appreciation, speculating versus investing, and some of the metrics he looks at for mobile home parks and self-storage facilities.Paul talks about forcing appreciation and compressing cap rates as reliable ways to increase the value of an investment.  He explains what a cap rate is and how it works when forcing appreciation. He describes commercial real estate investing as buying an income stream and working to increase the income.Paul talks about his decision to move from multifamily to self-storage and mobile home park investing because he saw there was significant undervalued opportunity in those asset classes.  He likes asset classes with mom-and-pop owners because a good operator can dramatically increase efficiencies. He estimates around 85% of mobile home parks and 50% of self-storage facilities are owned by mom-and-pop owners.Paul discusses how he diversifies by operator, asset class and market, as well as how he does due diligence and vets operators.  He also talks about the advantages and disadvantages of investing in funds.Paul talks about the difference between in investing and speculating – investing is when principal is safe with a chance to make a return.  Speculating is when principal is not safe and there is a chance to make a return.  Paul discusses some of the metrics he looks at when evaluating a deal.  For self-storage – he looks at the density of self-storage in an area, requires the property to be on a main road and visible from the road, and the average income for the area should be equal to average income near the facility.  For mobile homes – he only looks at parks in a town with 5000 or more people, within five miles of a Super Walmart, and no private water or sewer.Podcasts he recommends:The Real Estate Guys Radio ShowBigger Pockets Bigger Pockets Business  Books mentioned on the show:Storing Up Profits: Capitalizing on America’s Obsession with STUFF by Investing in Self-Storage The Hands-Off Investor Paul mentions his work fighting against human trafficking, below are the educational resources he recommended:Nefarious Exoduscry.comTo connect with Paul go to wellingscapital.com.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.  Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Gino Barbaro is one of the founders of Jake & Gino, LLC – a real estate education company.  He is a principal at Rand Partners, a multi-family syndication company and a certified professional coach as well as an author and podcast host. In this episode, Gino talks about the importance of mindset, how to evaluate a sponsor and some of the metrics he uses when evaluating a deal.Gino talks about the importance of educating yourself and having the right investing mindset – if you think you can do it, you can. He mentions he took life-coaching classes and it helped him understand you need to find your Why and your How will come.Gino talks about how he transitioned from buying multifamily assets without using outside money to building a brand and raising capital.  He discussed the importance of finding a sponsor you know, like and trust.  He also mentions that to vet a sponsor you need to do the work and evaluate their track record, their business model, their reputation and maybe even go visit them and see properties they own. Gino tells the story of the poor vetting he did when investing with a guy he calls Maserati Mike.  He also discusses the Howey Test and explains how that test applies to syndications. He goes on to say some of the metrics he thinks passive investors should evaluate when considering a multifamily syndication investment.Gino talks about how cashflow gets you out of a W2, but appreciation keeps you out. This is an important factor to consider when analyzing a sponsor and a deal.Gino is a reader rather than a listener, but below are the podcasts from the Jake & Gino Community: Wheelbarrow Profits   Movers & Shakers  Rand CRE Show   Multi-Family Zone Books he recommends:Vivid Vision by Cameron HeroldSeven Habits of Highly Effective People by Stephen CoveyMindset by Carol ZweckTo connect with Gino, you can email him at gino@jakeandgino.com.To get a copy of Gino's e-book, How To Share the Benefits of Multifamily Investing to Create Financial Independence,  send him an email to gino@jakeandgino.com.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.  Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.   

Buck Joffrey is a surgeon turned real estate professional with nearly $1 billion in real estate transactions including $400M in current real estate assets under management.  He is also a financial educator focused on alternative assets.  He runs a fantastic Community called the Wealth Formula Network and is host of the Wealth Formula Podcast as well. In this episode, Buck talks about the keys to forcing equity, investing in multifamily, self-storage and ATMs, and how to vet a sponsor.Buck talks about how good students usually stay on the career path rather than become entrepreneurs and he was on that track until he discovered Cash Flow Quadrant by Robert Kiyosaki. That book helped him realize he wanted to be an entrepreneur and he followed that path which led him to real estate.Buck discusses that the focus of his multifamily investing is not to “buy and hope”, rather to buy and force equity by increasing net operating income.  He mentions that the math is simple, but you need a great operator to make it actually happen. He talks about Western Wealth Capital and their strategy to force equity and they prefer properties that are significantly underperforming which gives them plenty of room to force appreciation and provides velocity of money for investors.Buck talks about self-storage and how the strategy of forcing equity applies there too – he mentions buying underperforming “mom & pop” properties that haven’t kept rent up or have space to build more units to add value to these businesses.  He also mentions that it is sometimes easier to increase rents because the rents are lower in dollar terms than multifamily.Buck discusses ATM’s and why they are a good investment, but not a replacement for real estate investing.  The cash flow and returns are good, but the bonus depreciation is what makes the ATM investment really attractive. He also discusses using life insurance cash value or a HELOC to amplify the returns from ATM investments.Buck talks about how to vet a sponsor and investing with sponsors that you know, like and trust who have a legitimate track records. He also talks about bridge debt and in what situations he would use it.Podcasts he recommends:Wealth Formula Podcast Lex Fridman PodcastThe Portal The Wealthabilty Show Purple Insider To connect with Buck go to wealthformula.com.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.  Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Eric is a Founding Partner of Clear Capital, LLC and an Adjunct Professor with UCLA’s Anderson Graduate School of Management. He is the host of Focus on Facts Podcast and was a guest at the May 24th Left Field Investors monthly meeting.  In this episode, Eric talks about sourcing deals, abundance of liquidity in almost all markets, inflation now and in the future, wealth inequality and how all of these things effect real estate.Eric discusses how he got his start in real estate investing in various asset classes until he got into multifamily apartments, where he has focused his efforts for the past 20 years.Eric talks about the abundance of liquidity right now in almost all markets, not just real estate. He mentions that one of the biggest challenges is sourcing deals in the current market – and that they have to evaluate a lot of deals before they find one that works. Eric discusses inflation and how it is a popular topic right now. He thinks inflation will be around for a year or two because of Covid causing supply chain issues combined strong demand. Longer term there are multiple trends that point to deflation.Eric talks about the Three A’s - Amazon, Automation and AI (Artificial Intelligence) that are increasing productivity and lowering costs. He discusses how these affect multifamily real estate. He discusses housing shortages and difficulties in building affordable workforce housing and introduces the Three H’s – The Haves, Have-Nots and the Homeless.Eric is concerned about the effect of wealth inequality on the economy moving forward – he thinks it’s the single greatest systemic risk to our country. Eric talks about bridge debt and interest rates caps as a way to control expenses if interest rates rise and how to evaluate a sponsor.  He mentions the most important metric in multifamily investing – loss to lease and its Importance in evaluating a deal.Podcasts he recommends:Focus on FactsPassive Investing from Left Field Publication he recommends:The EconomistTo connect with Eric go to www.clearcapllc.com.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com. Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Steve Suh is one of the Founders of Left Field Investors.  He is an ophthalmologist and the host of the Healthy Eyes 101 Podcast.  Steve has invested in a broad range of passive syndications including multifamily and self-storage as well as some more unique assets like underperforming resorts, coffee farms and a Broadway show.  In this episode, Steve talks about how he got started in real estate and syndications, what metrics are important to him when analyzing a deal and some of the unique asset classes he invests in.Steve talks about his first syndication in an oil and gas well that didn’t work out.  He then got into turnkey investing but had multiple property managers for one property and it was not passive enough for him. After he had a loan called through the due on sale clause, he decided that active investing was not for him and he made the change to passive syndications beginning with an investment in Puerto Rico.Steve discusses the seminars he went to and how they helped him confirm that investing passively was his future.  From there, he went on to invest in multifamily, self-storage, underperforming resorts, a wellness resort, coffee farm, ATM’s, a Broadway show and more.  Steve talks about his desire to invest in interesting investments as a way to keep himself motivated and involved.Steve talks about the LFI Deal Analyzer and how it helps him evaluate the risk in a syndication.  Some of his favorite metrics are debt service coverage ratio, break even occupancy, rent growth, and exit cap rate.  He also dives deep into IRR and IRR Partitioning - what it is and why it is important in analyzing a deal.Steve also discusses investing in a Broadway show and how it’s been a good performer for him and an enjoyable investment to follow and how he expects the show to bounce back after the pandemic shut down Broadway.Steve ends with his podcast recommendations and an inspiring take on investing and the quest to build wealth.Podcasts he recommends:The Real Estate Guys Radio Show  How I Built This with Guy Raz   The Happiness Lab  To connect with Steve you can email him at steve@leftfieldinvestors.com. If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com. Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.   Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.   

Alex Breshears is a private money lender, syndication investor, community builder, military spouse and much more. She started a private lending company, Infinite Road Investments, funding first and second position loans on residential property and runs a Facebook Group called Private Lending Lessons. She is also the Fund Investor Relations Manager for Mission First Capital – a company dedicated to providing real estate investment opportunities to active duty and veteran military personnel. In this episode, Alex talks about her journey into private lending and the group she started to help others become private lenders and passive investors.Alex discusses some of the mistakes new investors make in not analyzing their desired lifestyle and current skillset which makes it difficult to find investments that match their desires and skills.  She also talks about how networking led her to private lending and has continued to help her along the way. Alex mentions that early in her career she saw that borrowers have to always pay the mortgage lenders and realized being in the private lending business was a great way to create passive income.  She used her skills to create the lifestyle desired as she knew she wanted to be in real estate, but she did not want to be a landlord or a flipper.Alex describes the difference between private lending and hard money lending. Private lending is borrowing capital directly from the person in control of the funds and making the decisions and hard money is usually backed by a financial institution with strict guidelines and policies when making loans. She also talks about how private lending is very relationship focused and most lenders work in only one or two markets that are familiar to them.Alex talks about the need to find an attorney who knows private lending and she talks about the typical terms and rates used by private lenders.Alex discusses her desire to get more women involved in syndication and private lending and helping the reduce the obstacles women face financially that sometimes inhibits their ability to become passive investors.Alex talks about her work with Mission First Capital which is a investment fund operated by military veterans that allows investors to access syndications with a minimum investment amount of $5000.Podcasts Alex recommends:Cash Flow NinjaCapital HackingMultifamily Real Estate Experiment PodcastTo connect with Alex, go to Private Lending Lessons on Facebook or contact her on LinkedIn or at Mission First Capital.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.   Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Chris Odegard is The Prolific Investor.  Chris worked in corporate America for over 30 years before going full time in alternative investments.  His goal to help improve the financial lives of Americans one blog article at a time through his Prolific Investor blog.  In this episode, Chris talks about how alternative investments allowed him to recover quickly from a massive “illiquidity event”, his Hierarchy of Investors and how alternative investments outperform traditional investments.Chris talks about how he was a conventional investor most of his life until he found real estate and passive investing.  He mentions that his goal is to help people achieve financial freedom so that work is a choice, rather than a necessity.Chris likes multifamily apartments right now because of the undersupply of affordable housing.  He also recommends that everyone swing for the fences in asymmetric return bets with small percentage of your portfolio. He mentioned Palm Beach Research for help in finding some of these potential opportunities.Chris talks about some of the tax law changes for disregarded entities and how those entities are treated and the importance of a quality tax advisor.Chris discusses his Hierarchy of Investors and the importance of insurability and leverage in his investment philosophy.  He compares actual stock market returns to the returns from alternative investment including the tax benefits that really make a difference.  He includes an example of alternative investments compared to a 401k for young investors and explains how leverage and tax treatment of alternative investments can vastly outperform a 401k even with an employer match. Click these links to get access to the Hierarchy of Investments and the 401k vs SFH Rental resources from The Prolific Investor website.Podcast Chris Recommends:Real Estate Guys Radio ShowRich Dad Radio ShowThe WealthAbility ShowPassive Investing from Left FieldTo connect with Chris go to theprolificinvestor.net to schedule a 30 minute virtual coffee.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.   Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.  

Paul Shannon is a real estate entrepreneur specializing in the acquisition of value-add, single-family homes and apartment buildings with a focus on conservative underwriting and cash flow. He is the Principal and Owner of Redhawk Real Estate focusing on providing high quality, affordable rental properties to Central and Southern Indiana communities, while providing stable and predictable long-term income to his investors. He is also a passive investor and a member of the Infielders Community of Left Field Investors and has written several blog posts for our group. In this episode, Paul talks about ditching the W-2 to go full time in real estate, overcoming the 4% rule for retirement savings through active and passive real estate investing, and how relationships and networking have helped his business.Paul talks about how he realized the 4% rule wouldn’t work for early retirement which led him to look past traditional investments and into “alternative” investments such as real estate. He also discusses the self-limiting doubt of the possibility of losing his entire investment if he put money into real estate and how he had to overcome that in order to change his strategy and get more into “Left Field”.Paul discusses the notion that with real estate – passive or active – one major advantage is that if you aren’t forced to sell, you can wait for the market to come back while you continue to collect cash flow during the down market.Paul mentions when you start, the first deal is always the hardest to get into – it gets easier from there.  He also talks about quitting his W-2 before he had replacement income and how the first active deal gave him the confidence to make the change even though the deal didn’t work out exactly as he planned.Paul talks about relationships and networking and how his network helped with some of his decisions, including what markets to invest in and how important it is to find quality partners and how your partners are often the most important part of a deal.Paul discusses his decision to invest passively for diversification of markets, but also to learn as an LP to experience how to be a GP in the future.Podcast Paul recommends:Old Capital PodcastTo connect with Paul go to www.redhawkinvesting.com or you can find him on LinkedIn.If you would like to contact Jim Pfeifer, you can email him at jim@leftfieldinvestors.com or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.   Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.