* Money Making Secret #1: Getting Motivated Sellers to Call You! No more calling unmotivated sellers and getting rejected more times than a geek for the high school prom!
I’ll show you how for over 28 years, I’ve been able to get deals brought to me and motivated sellers hunting me down to give me their house.
* Money Making Secret #2: The Art of Structuring Deals! I’ve been doing this for 40 years and I love to share how I get sellers to give me the house, a check, and even a jet ski or two.
* Money Making Secret #3: Negotiating Secrets Revealed! I love to negotiate, just ask Matt, one of my hand-picked coaches. We recently went to an estate sale and he witnessed me structuring a deal to buy the house and contents right there on the spot.
* Money Making Secret #4: Trusts Simplified! A little confused on this entire Trust thing? Why to do it? How to do “Subject-To” safely? I’m going to show you my new fundamentals of Trusts training that will simplify the concept of Trusts, so a 9-year-old child can understand it.
* Money Making Secret #5: Develop a Plan for Success in Real Estate. The wealthiest man ever to walk the earth left clues for us on how he amassed his great wealth and kept it.
How to Help People While Helping Yourself – Become a Certified Affordable Housing Provider™
Create Your 10 Million Dollar Retirement Plan – specific formula revealed
Learn Hidden Profits Available in ANY Deal – worth thousand$
How to Take Over the Seller’s Loan with NO Money
How to Have the Seller PAY YOU to Buy Their Home – no kidding!
Buying Without Bank Loans – over forty years and never one bank loan!!
Easy Ways to LEGALLY Raise Big Money for Your Deals
Renovations – Quick Ways to Safely Make Huge Cash Now
Money-Making Management Secrets from a 40 year veteran who manages over 150 now
Accelerating Your Cash Flow – Add built-in “Profit Centers” – extra hundred$ per month
Case Studies: Secrets of How They Were Found, Negotiated and Sold
How to Protect Your Deal from Someone Else Stealing it
Legally Pay ZERO Taxes on Your Real Estate Portfolio – simple structure worth thousands
Having Tenants Leave Your Property in Better Condition than When You Gave It to Them
Why Land and Personal Property Trusts are the Best Privacy and Asset Protection
Benefits of Trusts You Cannot Get With ANY Other Entity
The Due-on-Sale Clause – What it is and How to Avoid it Legally
And MUCH More
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Listen to our Podcast:
Lou Brown (00:01):
Hi! Welcome to our identification of all the good stuff that's happening in real estate. And today we're going to be talking about - Do you have a system that you trust to protect your assets?
Lou Brown (00:29):
There's a lot of news this week. I don't know if you've heard about what's going on with Congress and their infinite wisdom. Not only do they want to pass a $1.9 trillion infrastructure bill, but they want to pass alongside that a $3.5 trillion bill. Now, I don't know if you've ever heard of this, in terms of seconds, but what if you took a million dollars and divided it into a number of seconds, and then you took a billion dollars and divided that into a number of, actually, it's not even seconds, it's days. And how many days would that be? I'll let you do that calculation next week. I'll give you the answer, but it's so much fun to really compare because in your mind, you're hearing a "B," you're hearing an "M," you're hearing a "B," you're hearing a "T" and your mind cannot fathom how much money that is.
Lou Brown (01:25):
But let me tell you something, for people that are in real estate, we know exactly what that means. That means appreciation that real estate is going to go up. And interestingly, I saw a whole presentation last week that gave me comfort in the fact that when you look at what real estate costs now, the average cost of a home, and this can be divided into markets. So particular markets compared to overall inflation, like, how many barrels of oil that it caused back in 1970 to buy a home? How many barrels of oil does it cost today to buy a home? How many gallons of orange juice did it cost in 1970 versus today? How many bars of gold did it cost to buy a house in 1970 versus today? Well, what's interesting is that housing and this is going to surprise you, and you're probably not going to believe me, but housing is actually extremely affordable these days compared to what it used to cost.
Lou Brown (02:31):
So my friend, Jason Hartman, has some great information on this. You got to check him out and he is a scientist. He gets into all the numbers. He breaks it down by market, and it's such good stuff, but I'll tell you it's something to take a look at because when we see the numbers of today, we reflect on the past. We think these numbers are too high, but the truth is they're not all that bad taking into consideration inflation, all the other goods and services that all of us use. So that's a little bit of news for the week, and hopefully given you some inspiration to go out there and buy some real estate right now because the numbers just aren't that bad.
Lou Brown (03:23):
All right. So let's talk about Wins of the Week.We've had so many that I'm actually putting some of them off till next week because there's just so many good things that's happening out there. In fact, let me just share with you this past week. I was in Tampa, Florida, and I was with some amazing people from my past and my present that hopefully are going to be in my future as well. Lots of real estate masterminds, gurus, people that are out there in the world causing things to happen. And I'm so pleased and excited that I got to spend some time with some good friends and meet some new friends in Tampa at what they call the Family Mastermind. In fact, I've got some pictures to share with you. If you've got your camera on, you might be listening to me in the car, but this is none other than Vanilla Ice, y'all! Vanilla Ice with Lou Brown.
Lou Brown (04:23):
And let me tell you something. Vanilla is amazing. He is a real estate investor, and in fact has a show on TV and he did a full-blown show for us. And if you don't remember some of the songs that Vanilla Ice played, you need to look up Vanilla Ice because you're going to remember all the songs that he plays. Because even though he looks extremely young here, and I don't know what he's drinking, I don't know what paste he's putting on his face, but I'm telling you something, he looks about like he did about 30 years ago. Anyway, he is amazing. And he did a full-blown party for us right there on the stage right now. And right behind him is one of my students. In fact, Dusty Keith from Charleston, South Carolina. Dusty joined me and my program 19 years ago.
Lou Brown (05:14):
I'm very proud to say that I'm the reason that he quit college in his fourth year, right before actually graduating, he quit college to start doing what we're doing now. Hey, the rest is history, multimillionaire in real estate, and I'm pleased. This is the gentleman that made it all happen this week. This is none other than Matt Andrews, who put together this whole wonderful event and some amazing people there at the event. So love, love, love Matt. And we had a great time together. Some of you know Connected Investors. This is Mr. Ross Hamilton. He just sold his company in a big way to First American Title. So, Ross is also one of my students from years ago. 19, 20 years ago, he joined me. Alright, so today I wanted to talk about something important to your future. Step number 6 in causing your business to occur.
Lou Brown (06:35):
All right. So my premise for today and my thoughts for today is about trusts. And I said, do you have a system that you trust to protect your assets? And I'll tell you that when I got started in this business, of course, just like everybody, I'm learning about entities, I'm learning what you should do, what you shouldn't do. Is it a C Corp? Is it an S Corp? Is it an LLC? Is it a trust? Gee, I don't know. There's plenty to choose from. And then along comes the family partnership, family limited partnership. Ayayay! It's brain damage. There's so many different things to try to figure out, and then they have the long comes series, LLCs, and so on. So really the question becomes, what's the right answer? And the answer is there's many answers. And for me, I am so pleased and so blessed that I discovered a very hidden nugget, a very hidden secret.
Lou Brown (07:40):
And that's the thing called trusts. And I learned about those when I was young, when I just got started in this business. And I'll tell you, it's one of the best blessings I ever got in my life because trust totally altered what I do, how I do it. In fact, it gave me a path to take that was much more beneficial for myself and for my family. Because one thing that trusts provide to you is not only can it give you. Well, in fact, let me go through the 4 Ps of trust. And 1 is Privacy. So think about your name on public record. Is that a good idea? Because after all, somebody from the comfort of their home, from their own computer that can actually determine that you have assets and they can actually determine through public records about what that asset is worth and about what you owe on it.
Lou Brown (08:35):
And so therefore they see something called equity and whenever an attorney sees equity, they start to drool and it's just disgusting. But you are the mark, my friend. You are the mark whenever you're dealing with somebody else's attorney. And so what you want to do is put yourself in a position to not have assets in your name. And that's a powerful thing. So if somebody wants to sue you, have fun with that. I don't own anything. Now I want to put you in that position, too, because privacy is one of the things that puts you in a position to have some great benefits from this powerful thing called trusts. You can't get that with other types of entities like you can with trusts. All right? So we've got Protection. So imagine that you've got each property in its own trust.
Lou Brown (09:31):
So imagine that that makes it much more difficult for someone to (A.) Find you, and (B.) To actually attack all of your assets at one time. It makes it very difficult to do that. So one of the things that I love about a thing called “land trust'' is the fact that I can put individual properties and individual trusts. Now I want to alert you that paperwork is different. So just because you see the word 'land trust' doesn't mean that you have all of your bases covered. Doesn't mean that you have your T's crossed or your I's dotted because you don't. And I will just tell you that I've reviewed many different land trusts. And I found many holes in those trusts. In fact, about a dozen different holes that I've found in various trusts. So what about it? I've become a student of that and I've discovered things that need to be in the paperwork.
Lou Brown (10:25):
And we created that. All right, the third P would be Probate avoidance. So imagine this that you can, and your parents can, and your grandparents can avoid a thing called probate. Now, what is probate? Probate is the legal process by which the court system takes the dead person's assets and gives it to the rightful living heirs. Well, that can be a complicated, messy process. It can take a very long time and it can be very expensive. One of the great things about trusts is that it passes the asset at death immediately to the successor beneficiary. So let's say that you're the primary beneficiary. A trust takes it to the successor beneficiary as soon as that primary beneficiary is out of the picture, it immediately goes to the successor beneficiary. You see, there's no court needed. There's no attorneys needed. There's no delay needed. There's no expense needed at all when you use this powerful thing called trust.
Lou Brown (11:37):
It is the best thing I've ever found. And if you didn't do it for any other reason, except probate avoidance, you should absolutely learn and master trusts. And then the fourth thing is Profits that you can make money using trusts. And there's a powerful thing that I learned many years ago that I can actually purchase someone's property. And in fact, I could purchase the beneficial interest of their trust that holds the property and in doing so, I could actually continue to make the payments on the existing financing. So that made it a big open door to buy a lot more real estate because I didn't have to go to the bank and didn't have to qualify for loans. I didn't have to spend a fortune to get a loan. And I love that process. And to this day, that's what we do.
Lou Brown (12:32):
So those are the 4 Ps of a wonderful thing called trust, but I want you to take a look at this screen right now that I have in front of you. And it talks about how many cases are going on. This is the U.S. 2020 lawsuit statistics, federal cases only. This doesn't even include the state courts. And imagine this, civil cases are up 16% immigration cases up 28%, contract dispute cases up 16%, ADA cases up 63%. Yeah, and this comes from the administrative office of the United States Courts report for the 12-month period ending March 31, 2020. So just imagine that lawsuits have increased dramatically. Now you add in there state lawsuits, which have also increased dramatically. You realize that it's a very powerful and important thing that you do for yourself, your family, and your business, not to have assets in your name.
Lou Brown (13:36):
And I want to teach you about this amazing thing called trusts. In fact, I have a 4-day event. This 4-day event is coming up next week. We're going to be there on Thursday, the 14th, then the 15th, 16th, and 17th. So that's a 4-day event. Strongly encourage you to be part of that. MaximumAssetShield.com is the place to go to learn more about what's coming up next week. In fact, you can join us at that event. So whether you're joining us live, which I would prefer, and I think you get a lot more out of an event like that live than you do online. However, we're going to be providing that as well.
Lou Brown (14:30):
So if you're interested, we're going to have it available for you. Just go ahead and check into that link and know that I've got a great opportunity for you. Some people have shifted from in-person to online, so we've just had 3 seats open up. So now is the time to take advantage of that and just simply call our office 1-800-578-8580. Let me assure you of something. You can actually come to the full 4-day event and if you don't think it's the best investment you've ever made, I am happy to give you your money back. Now how is that for a risk-free guarantee? And you're going to meet some amazing people there. I already know some of the people that are coming. Multi-millionaires, the room is going to be full of multi-millionaires. You're going to meet some powerful, exciting, interesting people when you come.
Lou Brown (15:23):
So I just want to encourage you to definitely be there in person if you possibly can be. If you can't be, the second best thing is online. So go ahead and touch base with us. Let's see what we can do for you. Love to get you into the event because I know that you're going to get a lot of great information that I can't give in these little capsules on Tuesday afternoon. I can imagine that we have 4 days of really drilling down. Now you are going to bring a deed with you to class, bring your title to your vehicle to class and right there at your seat. You can actually create your own trust as I'm going through it up on the board, you can be creating your own trust right there, live and in person at the event. So we'd want to also bonus you as part of this event.
Lou Brown (16:09):
We're going to give you an amazing piece of software that allows you to put in one page of information and boom. It automatically fills out all of your documents. You press print and boom, boom, boom, boom, boom. Here comes your trust already done for you. So it couldn't be better for you. It's a great opportunity. I've been using trust since 1983. So it's been a long time since I've had experience with these things. And I'd just love to give you my common-man experience with one of the most amazing things I've ever learned in my life. Something that they ought to teach in school, but they don't. And in fact, most attorneys and CPAs really don't know what they're all about. And even financial planners learn from me all the time. So bring your attorney, bring your financial planner, bring your CPA, have them come as well, because they need to learn this stuff as well. Also bring your parents because I can say some things to them that they won't listen to you about, but they will listen to me on. So just to encourage you to take advantage of that and learn about this powerful, powerful concept and entity that's been around since way before LLCs, corporations, or limited partnership. In fact, they've been around for thousands of years, the concept of trust. So once you get into that, you have discovered what the elites use, this powerful thing called trusts.
Scott Paton (17:51):
So, Lou, we had some questions on trusts and I thought this might be a good time to ask them.
So the first one was from Tony. And that was, "You had talked about land trusts. Is that the only type of trust there is?"
Lou Brown (18:10):
Tony, that is a fantastic question. And thank you for asking. There's actually 30 different kinds of trusts out there, maybe even more. And various trusts do various things and they're actually taxed differently and they actually do different things. We're going to be talking about that during the event so people can select which is the right trust for them and their particular situation because based on your situation, it could make sense to do one trust over the other trust. So we're going to take it soup to nuts through the basic trust of the land trust. And then I'm going to contrast that with other types of trusts so that you can see for yourself what makes sense for you and actually have the paperwork to do it right there in class. The paperwork I'm going to be providing is the land trust and the personal property trust. That's what we're really focusing on there, but it will relate to other trusts. In fact, I'm also going to be giving you a living trust as part of the event as well. Thanks for the question, Tony.
Scott Paton (19:18):
Wonderful. So Roger had a question, again, well, we're going to stick it with the land trust for right now. "Do you, let's say you have 5 properties in the city. Do you put all 5 into a land trust or do you have separate land trusts for each property?"
Lou Brown (19:35):
So, Roger, that's a great question. And the answer is you could do either. In other words, you could put all your eggs in one basket. You could put all 5 properties in one trust, but I think what’s better is to create a separate trust for each property. Now, what that does is it separates your assets from one another. So if someone got hurt at a property, if somebody went after a particular property and that they're going to sue that particular trust, well, that's what they sued, but they didn't sue any of the other trusts. So that's an opportunity for you to separate your assets from one another. And it gets you into a powerful position to be able to win. Now, I want to just make the point that I don't teach this to set people up for failure or to give people permission to do the wrong thing out there in the world.
Lou Brown (20:35):
This is an estate planning tool and everyone, regardless of what your motivations are, should have trust and use trust. And I want you to know that I teach these for the good. So this is to protect you from others who don't want to do what you did to get what you got. They just want what you got. So I'm talking about predators, I'm talking about people that want to take your hard work away from you and that you did nothing wrong. And we know that that happens out there in the world. You just have to look at the headlines and you'll see it. In fact, I've got a book around here somewhere called "The Stella Awards" and that the Stella Awards really tell you the facts about some crazy lawsuits that have happened, multi-million dollar lawsuits, where people have actually won the lawsuits that are the craziest things in the world.
Lou Brown (21:32):
You probably remember the McDonald's lawsuit, right? $2.9 million! Excuse me, it was hot coffee. And the award was $2.9 million. I don't think I understand, and there's things like that that happen out there in the world. Well, just imagine this, if you didn't have any assets, they wouldn't file the suit. If you didn't have anything to go after, they wouldn't file the suit. So as you think to yourself, how should I set myself up? The answer is not to own anything in your own name. So if they go after you, good, I'm glad. And by the way, be sure and don't spell my name wrong because you got a judgment against me who owns nothing. And that's a good plan, my friend. Thanks, Roger.
Scott Paton (22:25):
Great answer. So, Gina asked this question, which was, "I understood from someone else who was teaching how to be a real estate investor that I should put my properties into LLCs." And actually you and I were talking about this earlier today. So I just want to jog you in case you aren't going to bring it up. California and LLCs
Lou Brown (22:51):
Nah, I remember for sure because I'll tell you, LLCs are an interesting thing. Now they are, apart from trusts, so trusts were not born at the state level. Trusts were born in the sovereignty of our country. So, literally, trusts came over on the Mayflower. LLCs didn't come over on the Mayflower. Corporations didn't come over on the Mayflower. Trusts came over on the Mayflower. So now we take it from there. Later, each state being its own country, so to speak, each country, each state has its right to create its own laws and its own rules. And that's what they do. So they have created this entity called a "Limited Liability Company," LLC. And limited liability companies, while they're birthed by the state, the state gave them life. The state gave them breath. The state gave them every reason for being and all the rules and regulations of that state are used by that LLC.
Lou Brown (23:59):
Well, think about this. So California, having not seen a tax that they don't like, California has a franchise tax. So if you are an LLC, they charge you $800 to have an LLC in California. By the way, there's also annual dues, annual fees, and annual tax returns that are required as part of those LLCs. Now watch this. So let's say you have 10 properties and you put each property in its own LLC because you like what I said about separating the assets from one another. Well, you certainly can do that, but you'd have to set up one of these state entities for each one of those things. Well, what do you end up with? You end up with an $8,000 annual bill for just the franchise tax on those 10 properties. Now let's contrast that with my land trust concept that you put each property in its own land trust, no annual dues, no annual fees, no franchise tax, and the tax return is filed by the beneficiary, not by the entity.
Lou Brown (25:12):
So you've got some really powerful things that you can do with the trust concept that LLCs would not give you. And it all depends on which state you're in as to how much it costs to actually own and operate that LLC. But just contrast that with this no annual dues, no annual fees, no annual tax returns as with other entities and required by other entities. So, if that is attractive to you, then I strongly encourage you to learn trusts for yourself. Don't turn it over to an attorney. Don't turn it over to a financial advisor. You must learn it for yourself. They just don't know what they don't know. And there's some many strategies that go with how this works and how you can avoid a lot of the costs, expense, headaches, and defeats that do happen with other types of entities.
Scott Paton (26:08):
Lou, you kind of answered part of this next question from Sue, but the question had to do with how hard is it to set up a trust? So let's just say a land trust. How difficult is that compared to let's say an LLC?
Lou Brown (26:30):
All right. So, Sue, it's really not that hard to set up. In fact, it's merely once you have the paperwork, it's merely deeding the property from the name it's in. So let's say it's in your name right now, Sue, and you deed it from Sue You, let's call it Sue You. We transfer it and deed it from Sue You to XYZ Trust. Now, XYZ Trust owns it. Well here in Georgia, that only costs $10 for the first page and $2 for each additional page. So for a total of like $14, you can transfer a property from your name to the trust's name. And so behind that, you do need the trust paperwork, but it's very easy to do once you know what to do and you know how to do it. Now, contrast that with an LLC, you do have to register that with the state.
Lou Brown (27:25):
You do often, you're either going to get a registered agent or you're going to register it yourself. You do have to have an operating agreement and you do have to set up a bank account for that entity. That's not hard to do. You can do it many times. You can go right there to the Secretary of State's website and they actually give you the stuff to do it with yourself. So it's not that hard to do. You do have the fee to set it up and then you have annual fees that go with that. Plus, the state is going to be looking for an annual tax return on that. Plus, they're going to want you to get an identification number, taxpayer identification number from the IRS. So you're going to have the filings annually with the IRS. So those are things to consider as you're comparing the two sides of the coin. There's many benefits, but ease of setting up. It's not that hard to set up an LLC. And it's definitely not that hard to set up a trust, particularly once you set up your first one, after that, you can duplicate it. Great question, Sue.
Scott Paton (28:30):
All right. I forgot who asked this question. I wrote it down. What is ADA?
Lou Brown (28:38):
Okay. ADA is the Americans with Disabilities Act. So there's many requirements under the ADA that passed under George H. W. Bush's administration. And there were many things that were in that act that caused things to change in business. And certain requirements, if they're not met, there's allowances within the American with Disabilities Act for people to sue because those things are not done in a business. So for example, the width of the doors, the ingress and the egress, and did your business actually allow a wheelchair access to the business without having to go through steps and what have you because wheelchairs don't do steps very well. And what they're looking for is self-reliance so that the individual has the ability to do whatever they can do on their own, without assistance. And if you, Mr. Business Owner, if you had done certain things, that person would have been able to be self-reliant instead of needing help to partake in your business. So those are examples of what can happen. And you certainly want to be careful about that in your business practices so that you do take care of what's necessary for ADA purposes.
Scott Paton (30:12):
Yeah, that explains a lot. Thank you, Lou. So we have a question and I'm going to expand on it. It was from Lori and it had to do with probates, but I'm going to kind of take what she asks and expand on it a little bit because one of the things that's been in the news that I've been reading is President Biden is looking at an inheritance tax. He's looking at increasing, well, I guess you can't increase the tax if you haven't, if you don't have it. But, so, and then you talked about probate. So I guess the question is, "If we make the right type of trust and I guess you would work with us to make sure we do that, does that mean that we would not be facing or our heirs would not be facing inheritance taxes?"
Lou Brown (31:02):
Very much, could be. It really depends on the size of the state that you have. And definitely they've, ever since I got into business a long time ago, over 40 years ago, when I joined the ranks of the unemployed, so to speak, where you are in business and you're actually doing business. And one of the things that I've seen them do, for example, when I first got started in business, the tax code was that if the estate was $600,000, $600,000 was the only amount that was exempt from estate taxes. Anything above 600,000 was 55% tax. And that was just at the federal level on top of that was state. So in other words, they were stealing a lot of people's entire wealth. They were, their whole lifetime of work was literally going to the government and their kids had to fend for themselves.
Lou Brown (32:06):
And maybe their kids participated heavily in actually creating that wealth. So it was a very sad thing to see happen. And then as Congress moves and changes, well, right now it's $11.8 million that's exempt from federal taxes. Not now, that's not true at the state level, but that's true at the federal level. So now what do you got? You got something amazing, however, that's exactly and in your point is well-taken Scott. That is exactly what is at work right now, where they're trying to ratchet that way back down. And there's a lot of numbers at play, all the way back down to the $600,000 number when I first got into this business. So just know that it's something to pay attention to, and definitely pay attention to who you vote for because their beliefs are what causes votes. And then when they get there to Congress, their arms are twisted and they're made to do things they otherwise would not do.
Lou Brown (33:09):
So you have to decide who you've really got. And if they're strong enough to say number one, say what they would do. And number two, hold that line versus be corrupted into changing that vote. But in the meantime, there is a solution for that. We do have what we call the "elite trust" and the elite trust is, why do I call it the elite trust? Because it's what the elites use. And there are generations skipping, their generation passing there's dynasty benefits to using certain kinds of trusts that allow the trust to live on past the death of the beneficiaries, past the death of the trustees, and lives on for generation to generation to generation to come. And the growth inside the trust can stay inside the trust and only be taxed when the trust is collapsed, when the trust pays out. So there can be some very long range benefits to using certain types of trusts that can actually, let's say, defer taxes for a very long period of time.
Scott Paton (34:22):
Wonderful. So, Lou, we're coming to the end of our time together today. It just flies by. I just want to remind everybody if you've got a lot out of today's episodes or previous episodes, make sure you click the like, click the subscribe. If you're on YouTube, hit the bell so you'll always be notified when we go live, which is every Tuesday at 5:05 PM Eastern Time.
Lou Brown (34:46):
Check out our new website, StreetSmartInvestor.com. That's a wonderful thing. And those of you who are clients of ours, every Sunday night, 9:00 PM Eastern Time, I do a special training. It's usually 60 to 90 minutes long, and we always answer questions there for our clients as well. So you're welcome to participate in that if you have purchased anything from us and you don't have a link to that, let us know. And we're more than happy to get you into that training as well. And then next week, like I said, we're going to be doing a 4-day national training. We'll have people from all over the country at that event. We encourage you to absolutely learn about trusts. I only give this training one time per year. So it's very important that you don't miss this opportunity to learn about this powerful and amazing entity, the best entity I've ever found on the planet. And one last thing. Yeah, baby, I'll see you soon.
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