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In this episode, I talk with Lane Kawaoka, P.E., founder and author of “The Wealth Elevator,” about effective financial strategies for engineers. We also explore how to apply project management principles to real estate by delegating property tasks and conducting in-depth financial analyses.
***The video version of this episode can be viewed here.***
Engineering Quotes:
Here Are Some of the Questions I Ask Lane:
- Could you tell us about your books and what inspired you to write them, especially focusing on your latest book, “The Wealth Elevator”?
- How can engineers and AEC industry professionals, starting with limited financial knowledge or support, achieve a level of wealth like yours?
- How has your engineering and construction management background shaped your approach to project management in real estate development?
- How did you apply project management principles to identify the multi-unit property market in Houston?
- How do you prepare for a market downturn, whether it’s imminent or already underway?
- How can engineers use their project management skills effectively in today’s economy, particularly in real estate investment?
Here Are Some Key Points Discussed in This Episode About the Best Financial Strategies for Engineers in Real Estate:
- “The Wealth Elevator” is a guide to financial success through real estate investments, offering personalized strategies based on your financial situation. It helps you understand where you are financially and how to make smart investment decisions that can lead to long-term wealth.
- Engineers and AEC industry professionals can build wealth by investing in real estate in markets with strong rental value ratios. Using tools like the 1% rule to evaluate properties and choosing locations with favorable landlord laws can help maximize cash flow and financial growth, even with limited financial knowledge or support.
- Lane’s engineering and construction management background strongly influences his approach to real estate project management. He prioritizes efficient decision-making, minimizes bureaucracy, and focuses on swift execution to optimize financial outcomes and project success.
- Project management principles are applied to target the multi-unit property market in Houston through thorough market research and data analysis. This approach involves evaluating rental demand and property performance metrics to identify profitable investment opportunities and drive successful real estate ventures in Houston.
- To prepare for a market downturn, investors should adjust key metrics like vacancy rates and economic occupancy in their financial models to simulate challenging scenarios. By stress-testing investments this way, they can identify vulnerabilities and ensure their properties remain resilient during economic fluctuations, minimizing financial risks.
- Engineers can apply their project management skills effectively in real estate investment by conducting thorough feasibility studies and optimizing property performance through data-driven decision-making. By leveraging their technical expertise and structured approach to planning and risk management, engineers can enhance project outcomes and maximize returns in the real estate sector.
More Details in This Episode…
About Lane Kawaoka, P.E.:
Lane Kawaoka has been investing for over a decade and now controls 10,000+ units ($2.1B+ AUM) with over $45M of distributions to investors. Lane is responsible for finding investment opportunities, analysis, and marketing. He obtained a B.S. in Industrial Engineering and an M.S. in Civil Engineering and Construction Management from the University of Washington. In addition to an analytical engineering background, Lane has real-world experience working as a project manager for over $250 million of capital construction projects in both the public and private sectors. 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 via his Top-50 Investing podcast at The Wealth Elevator.
About the Host: Matthew Douglas
Matthew currently serves as a content creator and host of The Engineering Project Management Podcast. As a civil engineer by trade, Matthew has developed a passion for construction and stormwater management by way of maintenance and rehabilitation services. Matthew has also had experience working under private consulting firms, and public agencies and has even held a role of an educator, as such, he loves to lead, build, mentor, and help those in need.
Most recently, during his time working for the public sector, he has taken the role of Public Works Operations Manager. There he led quite a few public infrastructure rehabilitation projects and implemented new asset management technologies at a very young age. It is here that the passion for “fixing what’s broken” has developed.
Books Mentioned in This Episode:
Sources/References:
The Wealth Elevator
Turnkey Real Estate Property
Syndication Guide
The Wealth Elevator Podcast
Connect with Lane Kawaoka, PE, on LinkedIn
Send Lane Kawaoka, PE, an Email
We would love to hear any questions you might have or stories you can share on financial strategies for engineers in real estate.
Please leave your comments, feedback, or questions in the section below.
To your success,
Matthew Douglas
Co-host of The Engineering Project Management Podcast
