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Shop Talk - The Real Estate Agent Podcast


Real Estate Agent Podcast Episode 74: Creating Passive Income

Episode 74: Creating Passive Income
August 25, 2021

No matter how much experience you have in the real estate industry, diversifying your investments and creating a passive income is a great way to reach financial freedom.

 
At its core, if you want to call it that, [Passivo] is a private equity real estate investment company.

Lennon Lee

About This Episode

Lennon Lee and Stony Stonebraker met four years ago at a networking event, forging a fast friendship that has blossomed into a business partnership. Passivo REI is the pair’s real estate investment company, which guides individuals on their path to financial freedom through passive income generation.

Find out more about Lennon, Stony, and Passivo REI at PassivoREI.com. Follow them on Instagram @PassivoREI, @Lennonld, and @EverrettStoneBraker

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Episode Transcript

Intro: Hey everyone, welcome to Shoptalk, the real estate show. I’m Brett Van Alstine and today we’re joined by Lennon Lee and Stony Stonebraker, founders of Passivo REI, a private equity real estate investment company that helps individuals diversify their investments and create a passive income.

We discuss how Passivo REI can help you create your own channels of passive income that can lead to financial freedom.

Brett:

Stony and Lennon. Thank you so much for taking the time to chat with me today.

Lennon:

Hey man. Thanks for having us. 

Brett:

All right. So for myself and the listeners, tell us a little bit more about yourself, your previous career experience and you know, how you got here today. 

Lennon:

Stony, want to get it started?

Stony:

Okay. Yeah, I went to school at Georgia Tech Undergraduate electrical engineer. And at the time I happened to be lucky enough to work on the Saturn five and the Apollo program back then. And then after I graduated, I worked in telecommunications in airlines and then utilities and helped them start up some companies in fiber optics, transmission, so forth, and, also read some about real income producing real estate, which I really liked, but I was too busy in that career too. I really invested too much. And just a few years ago, I got started in commercial real estate, so I'll let Lennon explain his background.

Lennon:

Yeah, I'm also an engineer. I'm originally from Venezuela, moved to the United States in 2010, my family. And yeah, we have a small portfolio of properties. I was working in supply chain and logistics for a startup down here in Miami. And basically I was doing that, but also managing the family's portfolio until roughly 2016. We started seeing that the returns were not really very attractive anymore and a lot of work. Okay. So we started looking for more passive investing opportunities and, you know, I figured that commercial real estate cash flow in commercial real estate, specifically multi-family properties, large apartments has made for you know, an awesome vehicle. Then the, the type of structure that we found called real estate “syndications made.” Also a lot of sense because of the passive nature of it for the investors and, and so yeah, we decided to go that route ultimately Stoney and I met at CTIM luncheon event down here in Miami. And we basically hit it out from there and we started investing together in a few deals and, and ultimately a couple but a year and a half ago, roughly we started Passivo and now we're, you know, we were under partners under this brand and, and providing some different opportunities for investors and our families as well.

Brett:

So you guys are together as far as Passivo goes to a relatively young company and you guys kind of have a fresh start right now.

Lennon:

Yes, yes. A hundred percent. So that, so we've been investing for what, almost maybe four and a half years. So at this point it's only four, four and a half. Together, and we've done deals together and everything, but Passivo is basically kind of the way we've formalized our partnership and brought everything under one roof. But yeah, we've been together for a few years now.

Brett:

Sure. Okay. Did it help as far as, you know, forging your friendship and your relationship having that engineering background, both of you, do you think so or not really?

Lennon:

Yeah. That's what a hundred percent, yeah. I think like on a lot of things. So it, you know, it makes the conversation a little bit easier. Sure, sure. There's pros and cons obviously

Brett:

Yeah, that's I mean, that's a pretty cool story for both of you know, Stony, you coming from a pretty technical engineering background and, being involved in such I'd say pretty historical and, and big projects and then, you , Lennon you coming to the U.S. and it's pretty crazy to hear that your family trusted you with that investment. I don't know if my family would do the same for me, but you were clearly doing something right. That's a really great story. And that's cool that you guys ultimately, you know, found each other, forged your relationship and decided to, you know, become business partners and create Passivo.

Stony:

It helps us when we secret shop too. Cause I can go in there and say, I'm looking for an apartment for my son here next to me. That's great, yeah. That tandem works pretty well.

Brett:

So, jumping into Passivo. What are some of the core services that you provide your clients or your customers?

Lennon:

Sure. So Passivo at its core, basically, if you want to call it that it's a, it's a private equity real estate investment company. Right. We raise private capital, and we buy apartment complexes. Okay. Period, cash flow in real, so far, we've, we've focused, we're focused on only multi-family deals. But we have the idea to eventually in the future start looking at other asset classes, but for now, yes, we provide opportunities for accredited and some non-accredited investors to invest passively in cash flow in commercial real estate. We allow them for a vehicle that the way, the way it's structured and all the deals and the way we think about investing a main, main thing before anything else, it's capital preservation.

Brett:

And that comes to what you were mentioning before. It's, it's, it's interesting how your, you know, how your family trusted you with that.

Lennon:

Well, they, they did, but the one thing that they told me is like, “Hey, listen, do whatever you want, you can talk to me about returns and growth and all of that, but I'll lose money.” All right. We were pretty high. And so we that's always been ingrained in what we, in what we do, don't lose money. So we look at everything and our investment philosophy and everything at the CBO it's with that in mind. And then of course, okay, how do we make that money work for you? How do we make, and then how do we grow that money in a way that it's a sustainable long-term and that will create a legacy for your for your family. Because again, we created everything that we would create, all the relationships, the partnerships, and everything have been initially for us, for, for Stoney's family and for mine.

Lennon:

But we figured, well, this has a lot of value in what, the way we're doing. It has a lot of value for other people like us that don't really have the time interest or capacity to they want to be in this, in this investment vehicle, but they don't have the capacity to do it the way we're doing it at the professional level institutional level, should they were doing it if they don't have a team and they'll have the time and, you know, still, we want to take that responsibility off their hands so that they come to us, they trust us, they partner up with us and then we go and deploy our capital together into this commercial real estate deals. Okay.

Brett:

So is there a minimum investment that you require people to, you know, kind of chip in for these projects?

Lennon:

$50,000. Yeah. Typically it depends on the deal, but normally it's $50,000.

Brett:

And you're targeting these assets that are a little more low risk obviously to kind of hold that capital and not, you know, lose anything, correct?

Lennon:

Yeah. So we, we buy workforce housing basically. What we typically call class B apartments typically built in the ‘80s, ‘90, some down to the ‘70s. We have, we also have deals in the 2000s. So it's kind of a wide range, but on average you would say it's, we're in the mid-eighties properties. So these are properties that are stable from day one, meaning they're fully occupied, they're cash flowing, but we want to make sure that when we go and there is some potential for us to implement a certain business plan and add value to the property, basically take advantage of what we call the holy grail of, of commercial real estate, which is the ability to come in invest some, some money into it or throw some money at the deal, you know, implement the plan that is going to ultimately allow you to force the appreciation of the asset rather than just sit back and say, well, let's see what, where the market takes us. Right. But there's appreciation anyway. Sure, sure. So, yeah, that's, that's really like I like to say, I like to say we have a very simple business model. Not easy, definitely not easy, but pretty straight up and simple in terms of understanding. Yeah.

Brett:

Yeah, no, no, that makes, that makes complete sense instead of, you know I mean, you obviously are trying to earn passive income, but at the same time when you're investing in these properties, you are wanting to build that appreciation instead of kind of waiting for it to happen just solely based off location or, you know, other factors that kind of influenced that.

Lennon:

Yeah. A hundred percent. So they were talking to someone that he was a potential investor and he was trying to understand exactly how it was. And he, he basically said, well, so you're basically doing like a big house flipping deal. Right. And, and it is actually, if you see it, if you look at it that way, then it kind -

Brett:

Of is not the nitty-gritty.

Lennon:

Yes, exactly. No, definitely big picture. Right. Because ultimately, I mean, instead of a six-month house flip, we're doing a five-year or three to five, seven years flip. Right. but the thing is, and this comes at this Alliance with the capital preservation thing is that while we're flipping the property, we are cash flowing. And when you're flipping a house like a single family, while you're flipping it, anything goes wrong. There's no money coming in. So there's no cash cashflow. It's a huge part of what, of what we do. But, but yeah, it's, it's kind of a big flip because we're ultimately renovating the property repositioning and adding value to it and then selling it, so.

Brett:

Okay. I mean, but as far as, you know, someone who's listening in and is looking for ways to generate wealth and do it without having to kind of put that legwork in it, this sounds like a great option for people that, you know, might lack those resources.

Lennon:

Yes, yes. A hundred percent. That's what we're trying to again, achieve for our families, but also for our investors and, provide the opportunity for our investors just to build passive income and, and, and achieve what we call definitely financial freedom, but more, more, more importantly time freedom, right? This takes a lot of time, takes a lot of money, a lot of dedication if you want to invest right into what I invest, how you should it's going to take a lot of work. It might be easier for a lot, for some important for some people, especially, you know, our investors to build a relationship with us, you know understand everything, the model and learn from us, but ultimately thrust us and not having to go out there and build a hundred different relationships or travel to a hundred different markets and do all the analysis and everything themselves. We try, that's what we do for them. And, and ultimately, you know, they trust what we do. So, okay.

Stony:

I might add the other two that we, the, the legal that we use, which is an SEC 5 0 6 B typically syndication is perfect for limited partners or, or passive investor with people who don't want to get involved in the day-to-day, you know, toilets and termites, that kind of thing. But they do want to have better returns than typical, you know, or more consistent certainly than the stock market or more consistent. And, and, and frankly, the returns typically can be pretty attractive compared to a stock market sometimes.

Brett:

Yeah, no, I would imagine so, especially, after the year and upcoming year, that everyone's about to have, as far as the real estate market goes. So dialing it back more to just investing as a whole, what does investing mean to both of you and, you know, what does, what do you find the importance for, you know, everyday people to apply that in their lives?

Lennon:

Okay. Yeah. So I guess I'll start. We have, and I already mentioned this before the investment philosophy that we have for everything goes like this first, don't lose money. So protect the downside, whatever that means for you, right. In real estate we can get into specific details of how we reserve capital or at least try to position ourselves in a, in a, in a way that would, when it's going to be very hard to lose money, then, then cash flow. And then lastly okay, how do we grow? Long-Term but capital preservation and cash flow are, are, are the main thing, because if you are someone let's say a real estate agent, right? You, you want to be in real estate, you are already in, in real estate, but you are on the active site, right?

Lennon:

Like you're trading your time for money. Right. Well, that's awesome. That's it could be doing that. You could be a mortgage broker, you could build a business like we did, and on the private equity real estate investment side, or you can just be a physician or a lawyer, whatever it is, you're making money trading your time for, for, for it. Right. So that's that's one thing. So investing is first, you invest your time, then you get money, you build some capital. Then that capital is the one that you don't want to lose. Right. How do I preserve it? How do I protect the downside? Well, you need to identify different vehicles that allow you to okay. Be saved or protect that capital. And then how do I use that capital to achieve financial freedom and time freedom, meaning, well, all that capital works for me while I'm sleeping and I can work or not eventually.

Lennon:

Right. You decide whether you want to continue to work or not. When you hit the threshold where the money that that's working for, you, it's giving you enough income and growing at a rate that it's gonna allow you to be safe for years to come, and then your family and everyone else. Right. So with all that thought process in mind, then what vehicles are out there that are gonna allow you to do that? Sure. Well, we particularly decided that a commercial real estate syndication specifically multi-family is that vehicle for our families and for our investors. But it's definitely not the only one. Right. And then, and then you want to, obviously, depending on where you are in life, how young you are, how old, and depending on your risk tolerance and everything, you need to start determining what percentage of your investment capital you want to have on a you know, pressuring notes versus commercial real estate versus crypto or everything else. So, yeah, that's kind of on my end, that's the way I think about investing in general. So, okay.

Brett:

Stony, what about yourself?

Stony:

I think a lot of people have through their jobs, they might have a retirement plans, 401ks, [Roth] IRAs, that they save into and that's fine, but they typically only allow investments in the products that, that particular supplier, the vendor allows you to have. And a lot of people would like to diversify a bit more from that and not be so they're have their investments bouncing around everyday. Like we like to have, have the last couple of days in fact, in the stock market. Right. But what, what we allow and what I've always wanted to do more than what I have been doing until the last few years is to invest in commercial real estate, because that was, that was a, really a, a business or an investment area that was really kind of secretive to me.

Stony:

I didn't know much about it. And it was a little bit more like a good old boys network that, yeah, you didn't know how to learn about it. And so the last few years there's been a lot more information of course, available on the internet. And a lot more people are learning more about income producing real estate and realizing that that trading your time for money is not necessarily the only way. And shouldn't be the only way to invest your funds. And so what we think is and I, I think that people don't have to become, you know, just solely commercial real estate investors, although there's a lot of people in the business who just love it and because of a lot of reasons, as well as income and so forth. But I think it at nice, at least this offering that we have allows people to diversify into commercial real estate without having to spend a lot of time and, and all the work that we do by putting, going in and vetting the deals, the dealers, the operators, themselves, understanding the markets and the sub-markets, all the demographics and so forth.

Stony:

And we put in a lot of time to make sure that our deals that we do put into that have all those requirements that Lennon was talking about also are, are good deals. And the people that we work with on these, because they are always partnerships that these people are are good people that we've known for a while, a long time and, and develop relationships with as well. So there's a lot to it. But this allows a lot more people to get into that and not really have to spend as much time and, and diversify their their investments. The other thing we could like is, is helping people become more financially literate. And so there's other ways to get passive income that we like as well, that we like to talk about when we have our meetups, where we talk to our people who we get together with our our investors, and we send out our newsletters to them to help help them become more financially literate.

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Brett:

That's awesome. When, you know, like you had said when you look at today's stock market or you look at the crypto market it's a pretty volatile and it's not a very welcoming, it's a little rigid right now. And I think when you look to companies like yourself in other areas of investment, like you just said, as far as diversifying this is a lot more inviting. And especially when you can build a relationship with guys like yourself and have that sort of trust, it makes it a lot easier. And it kind of takes that, that weight off your shoulders. Right.

Stony:

Right. We were talking earlier and I was just in Dallas this past weekend meeting with people who are investing throughout the United States, people who are prospective partners and, and people who might be able to, we might be able to work with and just a good, a good solid group of people that meet fairly regularly, all over the country, in different assets, in different areas. And it's really a lot of folks that are able to help out.

Brett:

Right. Well, and especially for, you know, Texas and Florida right now, where I think the two hotspots, as far as investment goes for commercial real estate, you know, you see Austin and Dallas and you have Miami. And I'm sure plenty of other cities throughout Florida that are just red hot right now. And there's so much investment just pouring into those cities.

Lennon:

Yeah, that's fine. One thing I want to put out there just for people to think about you were mentioned the stock market and the crypto market, like how volatile they are. And there might not be as inviting for some, some people, but the, well, first of all, the liquidity and their, a lot of people have different priorities, right? So the liquidity aspect or the non liquidity aspect of real estate, it's a, for some people, sometimes a challenge as well as the giving up control, right? Like present this type of investments as passive investors or limited partners in the deals that we do, people have to give you 50 a hundred, $200,000, and they're locked in to deal with us for three to four to seven years, depending on the deal. And and it's, non-liquid, you know, they can just blow up their money whenever they want.

Lennon:

Right. I mean, they kind of can, there, there are legal ways to do it, and we, we have done it in the past, but it's not something that you look forward to doing, right. So it's a long-term investment versus on the stock market, no matter how volatile it is, they it's very liquid. So right there, that liquidity gives you the ability to ultimately every single day, every single minute, look at it and see how, how, how it moves. Right. And how volatile it is that volatility is not good, but it's good for people in their mind in terms of it's fun for them and boring and investing the way we think about it is good. But a lot of people think, well, this is fun. And they go in and they trade something. But the bottom line where at the point that I want to make is it's very, very hard if you're going to do, if you're going to be a day trader, right.

Lennon:

Whether it's script or on the stock market because who are you competing with in real estate? It's not a zero sum game. Like if I make money, you can make money. And if I don't have to lose money for someone else to make money, that's what it is in the stock market. In crypto. It's exactly the opposite, right? Like it is a zero sum game. Someone has to lose money for you to make money, period. There's no way around it. So ultimately, who are you competing with? Right. Because again, someone needs to make someone needs to make money and someone's going to lose money. Well, in the same arena with crazy, I don't know, Ray Dalio, right. Are you really expecting to be this hedge fund managers, you know, and, and beat the market yourself. Like, it's probably not going to happen. And I have a lot of friends making money lately and they've been day trading and they've made some money. Yes. Generally speaking. Okay. But big picture. It's not going to happen right now. So just add that in mind, just have that in mind. It's not all about having fun. Oh yeah. And it's when it comes to investing, boring is a, it's a good thing. It's

Brett:

Very much that instant gratification mindset entering the stock market as far as the day trading goes, and you are expecting to see a 10% gain overnight, which is just, does not happen. And you want to, you kind of talk to people about the lack of fundamentals and how, again, it just goes back to people that just want something to happen overnight. And that's not how sound investing works. You know, it's, it's a long-term thing that you need to be patient with. Just like anything else you have to do it the right way to get the rewards that you seek. So we talked a little bit about networking. Stony, you were just talking about how you were in Dallas for an event. What are some ways that you guys like to network? What are some, you know, tried and true ways that you've found success. Do you guys like to network differently? Are you guys on the same page? How does that work for you guys?

Stony:

No, I think partly what is for, you know, conferences like I was at, like I mentioned before, certainly also we have a meetup in Miami that was going on before COVID and we're restarting that shortly in Miami where we meet with other investors who have a similar interest in investing in multifamily and in other, some other segments as well. And so we'd have that. And then we also we also like to get out into the community and support the community and to various aspects, whether it's through through organizations that we volunteer at or just in the public. And we also have a range of, of investors who we've invested with in the past, or, or who have invested with us. And we like to get out with them periodically and and help me. And I have a little fun together, enjoy ourselves, get everybody gets to know each other and as well maybe get together for for a meal. And they're just bringing everybody up to date on what's happening.

Brett:

That's awesome. Yeah. Lennon, are you kind of on board with that?

Lennon:

A hundred percent, right. Like, so the meetup thing has been has been a big deal for us. Here in Miami, again, it's been what almost probably three years at this point, since we stopped doing it a year and a half, anyway, we're gonna, we're gonna get started without again, because that's been at platform for, for people to just join other multifamily and passive commercial real estate investors and understand how do we all become better passive investors? What does that mean? And how do you, again, the fundamentals for capital preservation and how do identify deals and build relationships and ultimately understand that if that, like, there needs to be a connection with what you want in your mind, like what you think you should do or what you think you want and what you actually do in terms of your actions.

Lennon:

Right? Like a lot of people want to have that passive meaning that, that financial freedom, but on the other hand, they, they just don't understand how to give up control. Right. They want to be like, and, and w, and it's weird, right? Because if you talk about the stock market, well, you tell me how you have control. You have liquidity, so you can make a decision today, and then tomorrow you can get out awesome, but you don't really have control, right? Like, you don't know mark soccer, you're invested in failure. You don't know him. Like you, you haven't really met him in person, you know, or anyone else for that matter the most or managers for these companies that you're investing in. So you don't really have control in the stock market, do you well, in when it comes to real estate, that they, I don't know that we, we, we tend to think a little bit different about it. And because you're investing, for example, with Stoney and Lennon is like, okay, well, I'm giving you $200,000 and I'm by no means I'm comparing myself to Mark Zuckerberg.

Lennon:

So, so yeah, I mean, bottom line is that we, we all have this group of investors to like-minded to, to become better passive investors. And that means among other things, too, to be able to give up control and how do you do it in a way that it's going to be safe for, for yourself. And then we do lot of our networking on online as well bigger pockets and Facebook, and, and I'm pretty active on social media. So that's also a huge channel to build relationships with potential investors as well. Sure.

Stony:

And I might add there too, that the investors get a chance. They know that they're not only just have Stony and, and Lennon here that they can talk to, but they can ask us questions about a property. We go buy the property, you know, every, every month we go by different properties that we have, and we and they can ask questions. We also give them, give them monthly updates on the activity. They're they're free, they're free to drive by the property and see it, it's an actual property that they invest it in. So they, they know they have all pieces of that. Property is a physical piece there. And, and it's something that you can actually, you know, answer or ask specific questions about how it's operating. I'm not sure that they're going to get a whole lot of background information on Google or whatever they might invest in. Obviously you can invest in that as well and have the versa for, for portfolio. Yeah.

Brett:

Yeah. When, you know, it's interesting, as far as for networking, when you're dealing with this sort of investment, you obviously want to know the people that you're going into business with and Lennon kind of like how you had said earlier, it's a win-win as far as both of you, you know, getting something out of this deal, it's not a, one of you is going to lose the other's going to win. So you really want to harness that relationship. And I'm sure it's a lot easier as well when you're both kind of going into something and it's more of a team atmosphere almost.

Lennon:

Yeah. Yeah. And, and and it's never, I mean, I always tell people that initially I was thinking that, well, we're not really selling anything. Right. Because ultimately we are investing in these deals ourselves. And it's more like an invitation if you want to join us fine. If not, then whatever. And that helped that attitude, I guess helps a lot. Right. Because again, it's, it, it doesn't feel like you're forcing anyone to, Hey, buy my product. But if you think a little bit more deeper about that, then we are selling something right. Again, what we've, what, what, what are we selling? Well, we're just selling, read them. And as corny or cliche as that sounds, it is what we're selling, right? Because ultimately, listen, this is an opportunity and this we're creating this type of deals and investing in, in deploying our capitals here.

Lennon:

So that ultimately we are all in a position where we don't have to trade our time for money and that when, and we can spend our time more time with our families, or more time, wherever doing whatever you want to do. So that, that freedom that might, and that dream, I look a little bit different for everyone, but I would say that most people would like to get there, have to have that to that point. So that's that, that's what we're selling, you know? And it is important for us to, to be able to build relationships with people and partnerships and structured deals in a way that is going to allow us to get there.

Brett:

Yeah. Yeah. And then it goes along the lines of you really want your money to work for you and not the other way around, you know, that's another cliche to throw out there, but it's true. And ultimately that's, that's kind of what your, your company's mission is.

Stony:

Yeah. And to reiterate the point most of the wealthiest people in the world have at least a significant percentage of their, their wealth in real estate. Right. And, and as I mentioned earlier in the past, that has been a good old boys network. It hasn't been available to the public generally, and now these legal methodologies and these legal capabilities are available. And, and we just think it makes more sense to have more people understand that and know about it, and because we're taking advantage of it. And we, we think it just makes sense for other people as well.

Brett:

Right. Right. That, that access to information is huge. So that we can kind of segue that into, you know, all of the educational resources that you guys provide. You know, if you go on your website, you guys have all these different eBooks and blogs and just really great information that people kind of digest and get to know more about investing, know more about you guys before they make the ultimate decision. But who is it, do you guys create these educational resources? Do you outsource that? How does, what does that process look like?

Lennon:

Yeah, well, we have a, we have a team that helped us put everything together. You know, basically the copy, meaning like making it look and more coherent, and it sounds a little bit better, more professional, right. Down to of course the, the designs and the social media posts, and then all that, you know, the videos and editing and all that. So but the content is created by us of course.

Brett:

Okay. Okay. That's awesome. That's awesome. And do you guys distribute this a lot? Are you kind of actively trying to get the word out almost on what is are the importance of? So

Lennon:

Yeah, we wanna, we wanna, we want to share all this content and we want to, of course we're free and put it out there just to provide education for people. And so that they understand what we do, why it is important for us and why it might be a good idea for, for them and their portfolio. And bottom line, we want to get to talk to people, you know, Hey, here's a book. If there's something that makes sense to you about what we wrote, you know, what we have in this book, then it might make sense for us to talk about it, right. And ultimately what we have is what we call the Passivo investor network. And the idea is to grow that network because through that network, not only people they have access to our investor portal online where they can make reservations for future deals, of course, invest in, in some of the deals that we have live at that particular time you know, point in time.

Lennon:

And we have a network of professionals as well, that we can point you towards, like, Hey, you know, there's a CPA that only focuses on working with real estate investors or retirement account historians. Anyway, just the network of professionals that we've either have worked with in the past, or we know that they are, you know, good at what they do. And that helps a lot. And then of course, I continue. We continue to educate our network and ourselves ultimately know on how to become better passive investors. Right. For example, we have something called the, just the facts, just the facts report every quarter, that it's a very data oriented, very thorough report about a specific topic recorder. And then we do have monthly meet monthly newsletters. And well we have the meetup where YouTube go to the meetup. You will have to be a part of the Passivo investor network. Which again, it's not a, it's just go to the portal, set up your account, set up a call with us and you're in, you know, so it's not a major thing. But but yeah, so that's what we are, that's what we were doing in terms of efforts and marketing really. That's why, that's why we, that's why we're doing it at the end of the day. It's pure marketing. Right.

Brett:

Right. Okay. So for a real estate professionals out there and, you know, our listeners and even including myself, I guess that it really is that simple, as far as, you know, joining your community, your investment community is up on your website. We can cover that later, but helping your website, you know, sign in, create a, create an account, and then you guys can contact with them. Yes. Wow. That's pretty easy. You guys make it easy.

Lennon:

Yeah, yeah. Or, or, or, or you can just when we can touch on that later for one, but we have this ebook, if you go to a Passivo rei.com forward slash dream, you'll be able to download the ebook and then you'll start getting these, you know, these emails that will get you through the process of joining the Passivo investor network. So that's pro that's also an easy way to do it if you want to. Sure, sure.

Brett:

So and this, my, this question might be a little out there as far as, how do you think real estate agents experience could help them with, you know, getting into investing? Is there a bridge that you guys see there, or any sort of I guess prior experience that would help them with that?

Lennon:

Yeah, it's totally. You want to, Stony.

Stony:

Yeah. I, in fact, that's, I, I started out as a real estate agent myself. I think Lennon has too. We both have, and I really started to what I wanted to get more into the income producing real estate investment side. I got my license and worked in that business and really tried to learn a little bit more about the transactions and what marketing was about and so forth like that. And it's really, that's some of the background of, of running a business like we have, but it also helps you understand and see what other people are doing. So I think certainly a lot, a lot of people that are in are investing like us are also, still have, are active in there with their licenses. I'm not myself, but a lot of them are. And, and lot when you see see investors buying properties and making a ton of money, and then looking at the comparison with sometimes what the commission might be on a deal and say, well, maybe I should be doing both, or maybe.

Stony:

So I think there's a lot of realization when you see transactions going on and understanding that that people can invest at the same time that they have their license and the date are helping others. And then they may pick up, I think that's very helpful because in some ways the the people who are in the, in the field every day, doing it for a living have an advantage over those of us investors who are not are doing both the, the marketing side and the investing on specific properties and so forth, right. Because, and they can focus on a particular market segment, a submarket and, and learn all about the properties that are in their area. But I think it also requires some additional education and, and reading, watching videos or, or learning more about underwriting and financial analysis of, of properties as well. So there are some advantages and some insights as well as some other additional requirements to get into those. Yeah.

Lennon:

Yeah know. So as a real estate, as yeah, it's a real estate agent. Well, first of all, it depends on where you are, right? Like, because a real estate agent in Miami versus a real estate agent in Iowa, right. Or wherever else, it's going to be different. What I mean by that is that in Miami well everyone's cousin and their brothers and their sisters and a dog has a real estate license. Right. So, so who are we really talking about? So having a license doesn't make you I mean, I guess, I guess it does. Right. But my point is you, you understand, right. So what I'm talking about real estate agents that are active and that are taking their job seriously, and that it's a full-time gig for them. Right. We're doing it that way. Then you're probably building connections and you're probably building a relationship with the, you know, the clients that are buying you properties or that you were selling properties for.

Lennon:

And all those relationships and all that conversation around real estate and contracts and analyzing or understanding different neighborhoods and, you know, the dynamics of how they've, they've grown in the past few years and analyzing data for your clients. Again, if we're doing, if you're doing it right, that's what you're, that's what you're doing every day. Right. And most importantly, again, being out there trying to get a listing, you know, meeting people, having conversations about real estate and the state of the market and everything else. So that definitely a hundred percent gives you an advantage over someone that it's not in that industry, you know, and it's not having that conversation every day. Right. So there's no exposure to it. Yes. And so, and so, so yeah, so then if you're a real estate agent and you want to be an investor, well, do you want to be a passive investor?

Lennon:

You want to continue to do full-time selling and buying houses for people and earning your commission and making a lot of money that way, and then deploying your capital passively well, passively into what is it? Real estate. Okay. Real estate. In what way is that real estate syndications? Awesome. Is it you want to do private lending, right? You want to just, just keep it to you know, maybe invest in public REITs, private REITs, well, whatever it is, you have different vehicles for passive investing, or do you want to make a transition from a real estate investor, a real estate agent to a real estate investor on the active side, meaning you are going to have to trade more time for money, meaning you want to, maybe you want to do house flipping. You want to do wholesaling. Like, what is it that you want to do? There's so many verticals in real estate in general, as, I mean, not things that you just have to understand what w you know, what options are there and where do you fit in and what, what do you want to do ultimately? But but yeah, it's bottom line, bottom line. That's the long answer to say, yes, you, you definitely have an advantage if you're a serious real estate agent to become a better investor. Yeah.

Brett:

Okay. Well, I mean, frankly, I'm sold, I don't have the real estate background, but I write enough about it. For those that want to connect with you guys want to learn more, what are the best ways that people can reach out you know, get information on Passivo, but also, you know, connect with you guys.

Lennon:

Well, the best way it would be to create your account and register on our website, just go to the top right corner. I think it says login or something, or, or, or, or just hit any of the invest with us buttons on the website that will take you to the investor portal. You can register there and then set up a call with us. You'll be prompted to set up a call when you open up the account on the, on the portal. So that's, that, that would be the best way, but other than that, we're, we're very active on, on or present on social media or we just go to bigger BiggerPockets. You'll find us there. I'm very active on Instagram and is on LinkedIn a lot as well. Yeah, we're all over the internet and our

Stony:

Website is Passivorei.com.

Brett:

Awesome. Okay. Yeah I wanted you guys to be able to you know, speak your piece on that as well.

Lennon:

You want to just shoot us an email direct me that that also works@adminatPassivorei.com and the ebook that I think you'll find it very interesting. You'll understand exactly how we think about investing and capital preservation and cashflow and everything that we do. That's pretty well summarized on that book at my help you or you know, everyone else understand what, what, what we think about investing and just in general. And that's going to be at a CBO, R E I n.com forward slash dream. I think I mentioned that before, but there you go.

Brett:

Oh, and that's perfect. Awesome. Well, thank you guys so much for hopping on this, this call with me today and giving me, you know, a little insider access into Passivo and what you guys are all about and, you know, ultimately hearing your pretty great success story. Both of you, it's, it's been a pleasure.

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