How to Generate Passive Income for Accredited Investors [Hans Box's Blueprint for LP Investing]

Grow Your Cashflow Podcast

Are you new to investing for passive income in private deals? Looking for a blueprint for success?

In this podcast episode of The Legacy Wealth Podcast, I interviewed Hans Box @ Box Wilson Equity to help us understand the concept of creating equity through value-add strategies in real estate deals, the advantages of the current landscape for newcomers and the concept of debt funds and multi-family deals.

// About The Guests:

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Hans is Co-Founder of Box Wilson Equity, a firm that focuses on cash flow and value-add investments and is a Senior Director at Old Capital Lending, a top provider of commercial capital solutions in the Texas market. His background is in the accounting, business strategy consulting and real estate industries. Hans has personally been directly involved in the acquisition, investment, and management of over $350MM in multifamily and self-storage assets, has asset managed ~3,700 multifamily units and has been the GP in ~4,300 multifamily units and ~2,000 units of self-storage. He specializes in structuring, creating, and managing partnerships to acquire multi-million dollar cash flowing assets.

Pascal Wagner is the founder of the Grow Your Cashflow Network which was formed to help accredited investors learn how to earn consistent passive income from private investments. Previously, he was the Fund & Portfolio Manager at Techstars, making over 300 follow-on investment decisions primarily for the Techstars Ventures ‘17 and ‘21 Funds, he founded Walkthrough, which was acquired by PlanOmatic in 2019, he founded Online Ad Labs which was acquired by PosterBrain in 2016, and he has owned a growing portfolio of real estate properties across the United States since 2013.

// About The Show:

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Welcome to The Legacy Wealth Podcast where we help accredited business owners become educated & get access to, private investments that the wealthiest investors in the world utilize to grow their net worth. We do this by providing insight & access to successful fund managers & investors across multiple asset classes.

// Links Related To This Episode:

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- Learn how to earn passive income from private investments: www.growyourcashflow.io

- Get access to our deal database of all 506(c) cashflow opportunities we come across at: https://growyourcashflow.io/investor-club

- Follow Pascal Wagner on Social: www.investwithpascal.com

- Follow The Legacy Wealth Podcast on your favorite platform: https://legacywealthpodcast.transistor.fm/

- Watch the show on YouTube: https://youtu.be/UINZed2nmH8

- Reach out to Hans Box on Linkedin: https://www.linkedin.com/in/hansbox/

- Learn more about Box Wilson Equity: https://boxwilson.com/

// Key Time Stamps & Topics

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00:00 - Intro

01:32 - Hans' background as a partner at Box Wilson Equity

03:05 - Hans' focus on creating passive income and fear of job loss

06:08 - Hans' initial fear as a passive investor.

06:30 - On learning financial statements and due diligence

08:15 - Focus on being conservative and investing for singles and doubles.

09:16 - The challenges with managing a deal

12:00 - Hans discusses branching into self-storage and mobile home parks due to similarities with multifamily and less compressed cap rates

14:01 - The importance of transparency among LPs

16:30 - The concept of creating equity through value-add strategies in real estate deals

18:00 - Why every real estate deal should have a value-add component to create a margin of safety

19:40 - Raising Rents and Curb Appeal

20:50 - Class A vs. Class C

22:15 - Risk and Cap Rate

23:45 - Value in Newer Assets

26:16 - The advantages of the current landscape for newcomers, ,including more common investment opportunities and resources like crowdfunding platforms and podcasts.

27:50 - Hans highlights the value of transparent sponsors who answer questions and provide education for investors

29:19 - Leveraging Modern Resources

30:30 - Balancing Debt Fund Investments

31:30 - Building Confidence with Cash Flow

33:20 - Emphasizing the importance of starting with investments that provide immediate cash flow and results.

35:09 - The concept of debt funds and multi-family deals, comparing payment schedules.

35:30 - Hans emphasizes the significance of cash flow and recommends focusing on it until basic living expenses are covered.

37:30 - the idea of prioritizing sponsors and deal quality while acknowledging that he's less concerned with tax benefits and more focused on risk-adjusted returns.

38:55 - Hans concludes by reiterating his focus on selecting quality deals and sponsors while acknowledging the role of tax benefits as a secondary factor in his investment approach.

40:00 - Hans explains his preference for singles and doubles investments, combining cash flow and equity growth.

41:00 - Hans highlights the flexibility of multi-tenant assets, enabling both equity growth and cash flow.

43:30 - Hans elaborates on his approach of investing in deals based on sponsor and deal quality, rather than adhering to strict allocation percentages.

45:41 - Hans agrees with the importance of velocity of money but warns against letting tax considerations dominate investment choices.

49:30 - Hans recalls some of his early investment experiences and lessons learned, including the importance of focusing on fundamentals.

52:45 - Hans shares his shift from focusing heavily on cash flow to diversifying his investments, including riskier options.

53:45 - Hans explains the benefits of deals that refinance within the first few years, enhancing equity and cash flow.

55:21 - Outro