Podcast Summary: Real Estate Investing School Podcast - Episode 235: "Winning in Investing as a Couple with Mike and Caroline Neubauer"

Introduction

In Episode 235 of the Real Estate Investing School Podcast, host Joe Jensen welcomes guests Mike and Caroline Neubauer, a dynamic power couple who have successfully navigated the real estate landscape from different angles. Released on February 10, 2025, this episode delves into their journey from traditional careers to achieving financial freedom through diverse real estate investments.

Background and Journey into Real Estate

Mike Neubauer transitioned from being a firefighter to achieving financial independence in five years through real estate. Starting with short-term rentals, Mike expanded his portfolio to include long-term rentals, midterm rentals, developments, and syndications. Caroline Neubauer, initially a stay-at-home mom, became one of Maui's top realtors, closing approximately $40 million in transactions since 2021.

Key Discussion Points:

1. Synergy in Their Partnership

   • Joe Jensen highlights the couple's success on both investment and agent sides of real estate, prompting a discussion on how their partnership enhances their overall success.

   • Mike explains, “[...] having one of us on the agent side of things was really beneficial” (01:23).

   • Caroline adds, “We've learned a lot too, because of our network” (02:15), emphasizing the advantage of their combined expertise and networking capabilities.

2. Starting in Maui: Choice of Market

   • The Neubauers chose Maui as their starting point despite its high entry costs because it was their backyard, allowing them intimate knowledge of the market.
   • Caroline states, “It was our backyard so it made sense to be able to see it, breathe it, touch it within, you know, a 20-minute radius” (05:36).

3. Investment Strategies and Diversification

   • Mike outlines their strategy to transition from active to passive income by reinvesting returns from short-term rentals into more passive investments like property management and syndications (06:53).
   • They diversified their portfolio by expanding into other states, initially purchasing properties in Arizona and later exploring mid-term rentals and syndications.

4. Outsourcing for Passive Income

   • Recognizing the demanding nature of short-term rentals, the Neubauers opted to outsource management to property management companies, accepting a cash flow reduction to achieve greater time freedom.
   • Mike explains, “I have, I mean I still get up at 4:30 in the morning, but I don't have to, I could sleep until noon if I wanted to” (13:21).

5. Aligning Goals and Sacrifices

   • The couple discusses the importance of aligning their goals to maintain focus on achieving freedom rather than getting bogged down in the day-to-day operations of their investments.
   • Joe Jensen remarks, “freedom's expensive” (09:34), highlighting the necessity of sacrifices to attain long-term freedom.

6. Lifestyle Investing and the “Money Pit”

   • Caroline introduces the concept of lifestyle investing, where investments are chosen not just for financial returns but also for personal fulfillment and lifestyle enhancements.
   • The Neubauers discuss their investment in a piece of land project they refer to as their “money pit,” acknowledging it as both a beautiful endeavor and a significant financial commitment (20:07).

7. Notable Mistakes and Lessons Learned

   • Caroline and Mike candidly share their most expensive and interesting mistakes, such as unexpected renovation challenges in a Maui condo and a failed 1031 exchange.
   • Mike recounts, “We ended up 1031-ing that on the day of the Maui fires” (50:19), illustrating the unpredictable nature of real estate investments.

8. Future Plans and Excitement in Real Estate

   • The couple expresses excitement about ongoing and future projects, including a glamping resort in Virgin, Utah, and potential investments in assisted living and senior care facilities.
   • Mike shares, “We are open to opportunities, and we're excited about the ones that we've seen come down the road” (21:25).

9. Philosophy on Real Estate Investing

   • A recurring theme is their approach to purchasing properties based on whether they'd want to live there, ensuring each investment has intrinsic value and appeal.
   • Mike emphasizes, “if this is something that is exciting to us, it's probably going to be exciting to somebody else too” (28:01).

10. Engaging with the Community and Branding

    • The Neubauers have launched Family Invests, a platform aimed at interviewing other entrepreneurial couples, blending their professional and personal lives.
    • They also run Caroline’s real estate brand, LadyAloha REI, to support buyers and sellers in Maui (45:42).

Notable Quotes:

• Mike Neubauer: “I turn my phone off every day at 5pm I turn my clock off every night. [...] That's what we built” (00:00).

• Caroline Neubauer: “Life is better together” (47:05).

• Mike Neubauer: “If this is something that is exciting to us, it's probably going to be exciting to somebody else too” (28:01).

Conclusions and Insights

Mike and Caroline Neubauer exemplify a strategic and diversified approach to real estate investing. By leveraging each other's strengths and continuously seeking passive income opportunities, they have built a robust portfolio that not only generates substantial cash flow but also affords them the freedom to pursue personal and lifestyle-oriented projects. Their willingness to learn from mistakes and adapt their strategies underscores the importance of resilience and flexibility in real estate.

Final Thoughts

The Neubauers’ journey highlights the significance of partnership, strategic diversification, and aligning investments with personal values and lifestyle goals. Their story serves as an inspiring roadmap for investors aiming to achieve financial freedom while maintaining a balanced and fulfilling personal life.

Follow Mike and Caroline Neubauer:

• Family Invests (Instagram): @familyinvests
• LadyAloha REI: LadyAloha REI Website
• New Podcast (Coming Soon): Interviewing entrepreneurial couples who balance success and family life.

Timestamp Key Points:

• 00:00 – Introduction and early morning routines
• 01:23 – Synergy in their real estate partnership
• 05:36 – Choosing Maui as their market
• 06:53 – Diversification into other states and passive income
• 13:21 – Outsourcing short-term rental management
• 20:07 – Lifestyle investing and the "money pit"
• 28:01 – Philosophy on property selection
• 47:05 – Inspirational message and philosophy
• 50:19 – Discussing mistakes and lessons learned

Note: The timestamps are marked as placeholders (e.g., 00:00) and should correspond to the actual times in the transcript.

Closing Remarks

Mike and Caroline Neubauer’s insightful discussion provides valuable lessons and strategies for both novice and seasoned real estate investors. Their balanced approach between active management and passive income generation serves as an exemplary model for achieving financial freedom without sacrificing personal well-being.

This summary captures the essence of Episode 235, providing listeners and non-listeners alike with a comprehensive understanding of the Neubauers' real estate journey and the key takeaways from their experiences.