Trust This. Season 2 Recap

Episode 42 February 07, 2025 00:22:25
Trust This. Season 2 Recap
Trust This with Joseph Seagle
Trust This. Season 2 Recap

Feb 07 2025 | 00:22:25

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Show Notes

Attorney Joe Seagle reflects on the purpose of the Trust This Podcast, emphasizing the importance of not just legal setups but also business coaching for real estate entrepreneurs. He highlights key insights and strategies shared by guests in Season 2, covering topics such as seller financing, co-living real estate, and offshore trusts for asset protection. The episode serves as a recap of the season's highlights and a reminder of the actionable advice provided to help listeners navigate the complexities of real estate and entrepreneurship.

Highlighted Guests 

John Chin 
Connect with John:
https://InvestorAgent.com
https://www.linkedin.com/in/cris-agents

Mark Monroe
Connect with Mark:
https://www.mark-monroe.com/
https://www.linkedin.com/in/markmonroe/
https://www.facebook.com/mark.a.monroe
Mark's Book: Creative Real Estate Investing: How to Buy Real Estate With NO Money and NO Credit | https://www.amazon.com/dp/B0BJ4NC6ST

Emanuel "E" Premate 
Connect with E: https://www.linkedin.com/in/emanuel-premate/
Email: [email protected]

Attorney Blake Harris
Connect with Blake:
https://blakeharrislaw.com
https://www.youtube.com/@UCk4AgsyoBEZPkUKTq1a86mQ
https://www.facebook.com/blakeharrislaw

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Episode Transcript

[00:00:00] Speaker A: Hey, everybody, this is Joe Siegel, your real estate asset protection and estate planning attorney here in Florida. And we focus on real estate entrepreneurs. And I just really wanted to thank you all for watching Trust this this past season. We just wrapped up season two, and a lot of people ask me why I do this podcast, why we do these videos. And I was explaining the other day, we do it because while I felt like I kept setting up a lot of our clients for great success, from a legal standpoint, I felt like they didn't really have the tools to succeed as a business. For instance, I would go ahead and set up an LLC between two business partners, not related by blood, just two. Two folks who know each other and they decide they're going to go into business. And I would set up their llc. We'd have the buy sell agreement in it. We'd have mediation and arbitration provisions. We would go ahead and everything in there that I would think they would ever need. Then we would do their land trusts. We would, we would take care of everything they need to do to make sure that each property they bought was insulated from each other as well as from themselves and from their llc. We would set up an LLC to act as their operating company, to operate their businesses, to operate their wholesaling company, different things like that. We would do all that only to have them fail. So they were spending all this money with us and all this time and effort to get set up in a legal way that was safe and right and legally righteous, and then they still failed. So I found myself even more and more. I was coaching them during our legal consultations. I found myself coaching them more on business and how to set up your business. As everyone knows, we run on eos, the entrepreneurial operating system here at Aspire Legal Solutions, and my land trustee. So it's a, it's a very simple way to run your business. Gino Wickman wrote the book Traction, and then he's written a few other books about the EOS system. And of course, there are implementers all over the country who will coach you and help you get set up as an. As an outside implementer with EOS and to run your business. You can also self implement if you want. We. I found that I was coaching more on just how to set up your business and how to run your business and things on how to get along and tips and tactics on everything from taxation to disputes to customer service to customer experience and. But I felt like the clients just weren't getting it. So I really wanted to start this podcast the trust this podcast as a way of sort of capturing from other entrepreneurs who have succeeded so that our clients and others, anybody in our audience, could learn from their mistakes, could learn from their successes. And that's what I hope that everyone gets every time they listen to a trustless podcast. Whether it's a master series where you're hearing from someone who has succeeded, you've heard about their failures, how they started out, how they went through mind shifts from, and growth and what they do each day to continue to grow their business and to shift with the changing laws and economics and everything else that happens in life, as well as also how to succeed in life and be healthy. Because it's not just business. You're the goose laying the golden egg every day. So you have to make sure your health is good. So, so we also have had podcasts with physicians and, and others talking about functional medicine, meditation, things like that, so that you also have a better life and relationships. The question I always ask everybody at the end of every podcast is, you know, who is someone who has helped you aspire to a better life? And I do that because I want you to be thinking about those relationships in your life as you listen to these podcasts. I want you to be thinking about those relationships and nurturing those relationships. Don't let them die on the vine and do that. So this season we brought you some amazing guests, cutting edge topics and practical insights to help you navigate the complexities of not only real estate, but asset protection and financial growth. We covered everything from solar financing to co living, real estate, creative investment strategies and even offshore trusts for asset protection. And of course, let's not forget the powerhouse lineup of experts who joined us this season. I want to thank them all for coming on it. I know it takes time and energy to come on these podcasts and be on to share your successes, but also to share your heartbreaks, to share your failures, to share your lessons you learned in that school of hard knocks. [00:04:45] Speaker B: That's. [00:04:46] Speaker A: That takes a lot of humility as well as a lot of fortitude to remember that and bring up those events from your past to have them come on. But everybody brought their own expertise to the table and together we built a season packed with actionable advice that you can trust. So I want everybody to sit back, relax, and let's dive into the hot highlights of season two. Whether you're a seasoned investor or just starting your real estate journey, this episode is going to remind you why Trust. This is your go to podcast for clarity and confidence in real estate and Legal matters. So our first guest that I feel really brought some energy to the podcast was John Chin. John discussed seller financing as an innovative solution for homeowners who are seeking alternative options to traditional home sales. He highlighted how this strategy benefits both sellers and buyers, offering flexibility and unique financial advantages. So here are some clips from my podcast. My interview with John Chin earlier, you pointed out that you're averse to subject to, but I hear leaving the seller's loan in place. So how do you do it? That that's not subject to, but it's still leaving the seller's loan in place. What are you doing? [00:06:06] Speaker C: Yeah, good question. So if we talk about a subject to transaction, that basically means, right, giving the buyer a deed, subject to the first mortgage staying in place for the seller. We don't give the seller, the buyer a deed. We put the deed in a seller's own trust and then the buyer and the seller cooperate together as beneficiaries of that trust. The whole time that that buyer's occupying that property through a lease, the trust doesn't give them occupancy rights. That's just beneficial interest so that they have some security about owning this control of the property. But title stays in the seller's trust until that underlying loan is satisfied from the seller. So the trust lockboxes title to protect title. It also protects the underlying loan for the seller. [00:06:52] Speaker A: Okay, so that's part of that creative financing that you're talking about. [00:06:56] Speaker C: That's how we structure them. Yeah. Even if, interestingly, I got a call, you want to talk about a case study that's really interesting. So I get a call from an agent. He says, hey, I got some friends, they live in New Smyrna. He said, I got some friends who owner finance their paid off house and now they're foreclosing on that buyer. And this sale happened in 2019. So they owned a property in Groveland, Florida that was paid off when they moved to New Smyrna. And they sold this house. They sold it to a buyer and said, yeah, well, I think it was 315,000. They got like $30,000 down and they carried the loan for 285,000. Fast forward the last year. The buyer slash borrower was the current owners weren't able to make the payments. So now they have to go through the foreclosure process because they just lien. The property is their only protection. Right. So they go through the foreclosure process, they get to the tail end of it, like thousands of dollars later, nine months later, they get to the tail end sales supposed to happen, and then boom, the buyer does a skeleton BK automatic stay on the foreclosure sale. So now they're kicking the can down the road. And now the seller's like, they don't want to own the property. They don't want to take it back in the foreclosure sale. They don't want to discount it from the Judgment amount of 335,000 at this point, right? So I said, well, why don't we do this? If you cooperate with me to carry the financing longer, I'm a fix this two ways. You cooperate with me to carry the financing longer. So we'll reset that initial 285,000 loan. I'll put $15,000 in your pocket to recover some of the cash it took to get to this point because they've been paying the taxes and the legal costs, right? And I said, let me talk to the seller, the owner of the property, because they had it listed, but listed for some ridiculous price that was unreasonable and they're trying to hold out for like 120,000 of equity that they don't have realistically, right? So I said, then I went to the buyers and I said, hey, we negotiated with your lender to be able to get you out from underneath this thing, stop the foreclosure, release you from the judgment so that you don't have to worry about the debt forgiveness and them chasing you personally for that judgment if it were to foreclose, for example, and you can get back on your feet again a lot faster and I can get you some cash, it's not going to be what you're holding out for, but I'll give you 40,000, 10,000 up front in your pocket. You finance the other 30,000 at $300 a month principal only payments until that's paid off in about eight years and then we'll get this thing done. And so that's what we negotiated. [00:09:20] Speaker A: Next we had Mark Monroe. Mark focused on cutting edge real estate financing strategies, helping investors identify creative solutions to optimize their portfolios and handle financial challenges in dynamic market conditions. Mark is a dynamic speaker. He's a dynamic coach for real estate entrepreneurs all over the country. He was a great guy and I hope that everyone tuned into that episode where Mark and I had a great discussion about all of his creative financing techniques. And if you didn't, here are some good highlights to give you an idea of what we discussed. You know, you wrote the book, the book Creative Real Estate Investing and you emphasize Purchasing properties with little money, no money, no credit. So what are some of the biggest points out of that book? What are some of your biggest tactics and strategies out of that book that, that people have found most useful? [00:10:16] Speaker D: I would say the number one thing where people really go wrong and they don't go wrong, but they just. When you're doing a seller financing strategy and when you're sitting there and you're talking to a seller, you have to look at it like this. It's like a marriage. You're going to be in a contract with these people. You're in a long term commitment. So the first time when you're talking to these people, you have to think about your spouse. When you first went on that date with your spouse, you guys got to know each other. And that's really what it comes down to. 80% of my conversation is just building rapport and getting to know them. I'll give you a quick example. One of my students slash members of my program had this one gentleman in Georgia and he was open to seller financing. He only wanted, I don't know where in Georgia, I can't remember where it was. But he only wanted $128,000 for this home, but he wanted $30,000 down. It did not make sense putting $30,000 down, $120,000 home. However, I still got on the phone, I had on the phone and my mentor is on there, my mentee. And then I started talking to seller. I got to know like his most important thing at this stage in his life was his dog. I got to know the greed of his dog. Got to know he had five children, he has grandkids. I found out he's a huge Atlanta Falcons fan. I found out he banks with the credit union, he's got good credit, he's retired and he lost his wife. So this conversation, as we're getting to know each other, he's getting to know me as well. So it goes on for about 30 minutes. So I'll go. So I come back and hey, Robert, what do you plan on using with that capital, the $30,000? She goes, oh, I need $25,000 for a camper. And then I needed some spending money. I go camper. I go, what do you plan on doing with the camper? He goes, oh, I'm gonna go to West Virginia in the New River. Then I'm gonna go to Chandori Mountains. Then in Ohio or Tennessee and Ohio. Everybody listening and even yourself. When's the last time you guys been camping? Think about that. And so, and I started when you went camping, where did you go? Just think of yourself right now, where did you go? Who, who did you go with? Did you kayak, did you hike? And then what kind of food did you eat? So as I'm going through that exercise and he's visualizing what his life is like out there camping and spending time because he was going white water rafting, then he was gonna be in a camp, on a camper with a bunch of his friends. So he's starting to visualize his mind what his life is like. So then I come back to him, I go, Robert, I go, I notice that you've been trying to sell this property for about two months and, and you open a self financing. What seems to be the problem? Because everybody's offering me a low down payment on the home, like a much lower and or a down payment. I said, Robert, I'm going to be frank with you. Nobody's going to put $30,000 down when they can go get an investor loan and put less capital down and probably rate about the same, but a property a little bit more desirable. But this what I'll do. You mentioned that you belong with a credit union. You have good credit or they have great rates. I'll give you 30 $500 down, you go ahead and take a loan out for the camper for the $25,000. And what I'll do is on the 20th of every month we'll automatically have the payment pulled directly out of our account, sent directly to the credit union to make the payments on your behalf. And what we'll do is we'll create a Gmail in that portal so whenever there's a notice that goes out, it goes to my bookkeeper and it goes to you. So we got that deal for $3,500 down because I listened to him and I built a rapport with him where he said he had other investors, he had probably 12 other offers from other investors that they didn't listen, they just kind of beat him up. So I understood what his problem was and solve it. So whenever I look at a deal, there's two things I always want to know. Why are they selling and what are they planning on doing with that capital? Because if you can figure that out, that's how you can be creative enough to structure a seller financing deal. [00:14:01] Speaker A: Next clips you're going to hear today are from Emmanuel Primonte. Emmanuel, or Big E delved into the growing trend of co living real estate, emphasizing how platforms like Pad Split offer an innovative Solution for affordable housing while presenting lucrative investment opportunities. Big E shared tips for leveraging this model to create sustainable and profitable housing solutions for workforce housing. Not affordable housing, but workforce housing. He talked about the best neighborhoods, the best types of housing you may want to look for. If you are a real estate entrepreneur who wants to get into co living, the co living space. So here's some great clips from Big E discussing co living and pad split. [00:14:46] Speaker E: Over the last six years, we've developed a very robust playbook of standard operating procedures on how to deal with some of the unique situations that may come up in a co living environment. [00:14:55] Speaker A: By co living we mean multiple people living in one house, having their own bedrooms and a little bit of shared space. What does a, what does a pad split house typically look like inside? If somebody walked into it, what does it look like? [00:15:09] Speaker E: Yeah, so we're really seeing a big boom in co living as a sort of creative, non, nontraditional way to approach affordable housing. And it is very effective at that. And when we say co living, essentially it's communal living, right where we have multiple working class residents, typically who are making between 20 to 60 thousand dollars a year, is, you know, sort of the demographic that we particularly focus on serving. And there's very limited share space on a pad split home. Part of our model is actually converting underutilized space in a home. We call it the pad split conversion. And so that pad split conversion, typically that living room will be converted into a room. Any other underutilized space, maybe like a family room or any open space, is potential opportunity to convert it into a room. We recommend doing this for a couple of different reasons, I should say. For one, it's what makes the business model profit. If you just take a traditional three, two and you have a living room. Because most average weekly room rates are going anywhere from about 130 per week on the low end, upwards of 350 per week on the high end. It just simply won't make economic sense to, you know, to do it, to invest in it. But the moment you take that 3, 2 and perhaps make it a 5, 2 or 6, 2, depending on the square footage and the size of that home. Well, now you not only have something that is profitable, but also something that is filling for need by providing more affordable housing. And in fact, what we find is you want to limit the amount of shared spaces because it can actually lead to disputes, it can lead to a poor member experience because, you know, maybe someone invites someone over that's unauthorized, then they end up crashing the couch where if you just had a wall and had converted that to a room, it now could have also been an income source as well. So, you know, that's part of the model. That's where I can help. I've walked now hundreds of properties and we have various tools and tech in place to be able to kind of get an idea of, you know, where that conversion can be made. Of course, everything has to follow building code. That's where we do lean into our vendor network that we have, which includes license, general contractors, lenders, insurance providers, property managers. Just a whole list of professionals who understand the pad slip model, have gone through a training, they've been vetted by our operations and general manager team. And so, you know, really is offering now a unique opportunity to be able to capitalize on the need for affordable housing. [00:17:36] Speaker A: And our final guest that we're going to highlight for season two is Blake Harris, of course. Blake's a lawyer down in Miami and he explored offshore trusts as a powerful tool for asset protection and wealth management. Blake explained how these trusts provide legal safeguards while enabling investors to preserve and grow their wealth across generations by preserving their money in offshore trusts. Blake was a wealth of information about offshore trusts and how they work, how you create them, how they operate from day to day and from month to month, year to year. Listen in as Blake shares some of his great advice about offshore trusts. So what are the mechanics of that? How do they provide that protection for offshore trust? Exactly what are the steps? What happens whenever maybe you have a large judgment hit you here in the United States or divorce or whatever's happening? What exactly happens in that, that case? [00:18:32] Speaker B: Well, if the trustee goes to the client and says, request a distribution, a domestic trustee, a foreign trustee, could receive a request from the client, from the grantor, from the beneficiary of the trust, and then the trustee can just disregard that request. It's coming from the client. Now, if the court goes directly after the trustee and it's a domestic trustee, that trustee is going to comply because they don't want to be put in jail. The US Court could put a domestic trustee in jail for failing to comply with a U.S. court order. Now, if you send a U.S. court order to the Cook Islands, that court order is going to end up in the trash. And by law, the foreign trustee, the Cook Islands trustee, is not allowed to honor a U.S. court order. So with enough pressure, you can get assets out of a domestic trust. That is not the situation with an offshore trust. It is much, much harder to break into an offshore trust. It's much more expensive. And most plaintiffs are just, quite frankly, not interested in going through that burden. Some cumbersome process of attempting to get off assets out of an offshore trust, especially when they learn about case law, they see how small their chance of success actually are. And what it means for the client is that they get a much better settlement. And that's the name of the game. 99% of all cases settle. And by having an offshore trust, you are buying yourself a very powerful tool to help you negotiate and leverage a settlement. [00:19:53] Speaker A: Well, now, I've heard of people. They've actually, I just got the 8th edition of Asset Protection in Florida, the treatise from the Florida bar today. And one of the things they always put in there is they always say, well, offshore trust don't work because the judge, if you don't get the money from the offshore trust, the judge will just throw you in jail. What is all that about? Does that really happen? [00:20:15] Speaker B: I guarantee you cannot find a case law where a individual created a trust before a lawsuit, complied with the court order, was honest with the court, and was put in jail. That is absolutely not the case. That does not exist. We always have our clients. We always encourage our clients to set up the trust one in advance of any litigation, fund the trust in advance of litigation. And then if a court orders your clients to disclose, we always have our clients disclose their assets. And if the court orders the client to request a distribution or to do anything, we, 100% of the time have clients comply with the court order. As long as a client is complying with a court order, you cannot be held in contempt. Contempt is not a means of punishing someone for doing something the court doesn't like. It's a means of compelling. As long as somebody is compelling, as long as somebody is acting in compliance with whatever they've been ordered to do by the court, they will not be held in jail. They will not be held in contempt. [00:21:12] Speaker A: So as long as the judge has told you, hey, tell your trustee to send this money back to you so you can pay the plaintiff. And as long as you say, yes, I did that, I sent it to the trustee, and the trustee said, no, you're fine. I hope you guys enjoyed this recap of our highlights of season two. We're going to also do some replays for the next few months while we take a little hiatus. I'll still be recording other videos, of course, about information and things, so you'll still see me. We're just not going to have guests probably for a few months. Or so between season two and season three, but we plan to kick off season three in spring 2025 and we look forward to welcoming you all back to the Trust Us Studios with our guests, where we're going to talk even more about real estate entrepreneurship and how you can be successful in your business with the tips, tactics and master's advice that we can present here. Until then, I'll see you later. Thanks for listening to this edition of Trust this if you got something out of it, please press like and subscribe and give us a five star review to help us reach others who can benefit from this series. Until next time, keep aspiring to a better life.

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