Interest rates are going up, and that is affecting the housing market. Homeowners with mortgages will have to pay more for their monthly mortgage payments. This will make it more difficult for some people to afford their homes because they will have less money left over from their paychecks. The higher interest rates also affect renters, who may need to pay more in order to keep up with rent increments. They may also need to find a new place to live if they can’t afford the increased rent prices, affecting the occupancy rate in your properties. But is there a way for real estate investors to grow their investments amidst this market situation? Join our today’s conversation with Lane Kawaoka, and he shares some tips with us.
Lane Kawaoka, an ex-Civil Engineer, has been investing passively in Real Estate from Honolulu, Hawaii. His parents got screwed with the 401K and the stock market and gave him a mission to get everyone out of the corrupt Wall Street roller coaster and into Main Street invests with safer, higher returns that benefit America’s middle class. Despite the uncertainties in the real market, Lane has been able to navigate and raise over 160M dollars to purchase and control over $1.2 Billion (over 8,000 units) of apartments, mobile home parks, self-storage, hotels, and other commercial real estate assets.
In this episode, Lane shares his career journey and his overview of the impact of high-interest rates on real estate investing. We touch on the positive and the negative and how optimistic investors can get better financing options for their deals. Lane also tells us why he is passionate about real estate and why you should tap into this asset class.
Let’s jump in!
Highlights from the interview
- Graham’s passion for real estate investing
- The advice Graham gives that leveled up people’s investing practice
- Why real estate is not a race
- What’s the status of the real estate market?
About Lane Kawaoka
Lane Kawaoka is a Licensed Professional (PE) with a Masters degree in Civil Engineering with an emphasis in Construction Management and a bachelor’s in Industrial Engineering both from the University of Washington in Seattle, WA. He currently owns thirty-three apartment buildings, two manufactured home developments, a hotel, and an assisted-living facility totaling 8,500+ units in twelve different statesvalued at $1.2B AUM.
Lane Kawaoka started investing when he was thirteen years old with the $2,000 he earned from his summer job picking pineapples in Maui. He bought a $500 Ukulele and deposited the remaining $1,500 into a Roth IRA via mutual funds. That Ukulele is featured in SimplePassiveCashflow. com podcasts theme song. Lane started his venture in real estate investing in 2009 after living on the road for five years as a construction supervisor. He purchased an A-class rental in Seattle, WA that rented for $2,200 per month. Three years later he was able to acquire a duplex. While looking for a third investment in 2012, the market was rebounding and he realized most investments would yield negative cashflow. Lane decided to convert his portfolio to secondary markets with robust job markets and rent-to- value ratios that would yield $250-$400 monthly profit between rents and all expenses.
In addition to mentoring and mastermind groups, Lane also partners with investors who want to build their portfolios, but are too busy to handle direct investments. He uses his engineering mind, investing knowledge, and network to optimize investment returns for others by operating the Hui Deal Pipeline Club a free investor club where he filters investments and underwrites the numbers and partners. Unlike other investor lists and groups, Lanes investors have personal access to him and know that Lane is personally investing alongside his Investors.
Today, Lane lives in Honolulu, Hawaii where he is bringing solid investment opportunities and bridging the financial gap to the home where he grew up. There he operates ReiAloha: Hawaiis Passive Real Estate.