Control Your Own Money by Brian Martinez, Nuview Trust || Ginny Bolling

Hey, how's it sound to work less and make more. I am talking about money and there are ways to do that through commercial real estate investing and a lot of people don't know just how easy it is to do nowadays. So this channel, Pivot to Prosperity, will show you how you can do that. It's brought to you by Pivotal Real Estate Investments, where we go find the deals and do the heavy lifting and then bring you the opportunities. So if you want to know when opportunities come available, you need to register at pivotalrealestateinvestments.com every Tuesday at 2 for about 22 minutes. We plan to bring you another video and so like share. Subscribe. Thank you. Hi, Jenny Bowling here with Pivotal Real Estate Investments. And this is the Pivot to Prosperity channel that is geared towards showing you different ways you can put your money to work. And the tagline is make more, work less.

Make more, work less. Yes. Love it.

And I am here today with Brian Martinez from New View. And I didn't actually, I should have asked you for your bio. Lord, it's good to read that. But now you're going to have to tell us. So if you would go ahead. Let me put this in the middle here.

Yeah. So I've been with Newview Trust for almost five years now. My passion is just educating others on the fact that self directed IRAs are out there. Many people that have these IRAs, they think they're limited to the stock market. So spend most of my free time traveling to conferences, being on podcasts and joining RIAs all over the United States and just bringing more awareness to the self directed IRA trillion dollar market that's out there, especially for people that are raising capital and helping, you know, the everyday person understanding how they can take more control of their retirement and be able to retire, you know, at least semi wealthy if they learn about it early enough in life.

Well, we're going to drill down on that because I, as we were just talking about before starting the recording, we have learned that there is a lot more you can do with your money than the typical 401ks that the employers have come to to default to. And it's really a default thing. And I personally think that we all need to lobby more for better control of our money and so taking off on that, what can we do? Do you have some ideas on how we can help you all to build awareness?

There's so many different ways, but I mean the biggest thing is just providing a little bit of education to you, whether it's your Investors or your family or friends or just your community. Even just sharing a post on social media will go a long way. You'll be surprised how much impact it can have. So you a little bit about my story and how I learned about self direction. I was working in the fitness industry for about 10 years and one of my clients started telling me how you can use an IRA and you can invest in a parking lot or an apartment complex or the most random things that I just never knew you can do. And my first reaction was, how come I don't know about this? You know, I've, I've left employers before. I could have used that money and made these types of investments. And my second thing was, this is scam. Like, seriously, why don't I know about this? So I did my research and I did my due diligence and you know, she was working here at nuvu at the time and she invited me to one of the classes. I came, I sat in, I learned and I said, wow, this is a real thing. And I want to tell everyone about it, especially my family, because, you know, everybody's been limited to the stock market. And people think that that's the only way you can invest your money, but that is completely false. You can invest in alternative assets, things that are brick and mortar that you can see, fill and touch and the returns are so many times much better than what you can get in the stock market. Because not everyone knows how to buy and trade and predict mark, you know, stock market trends. You might have a financial advisor, but financial advisors, they take commissions from what they invest. You know, if you win, they win. So course they don't want to lose money, but it happens. And that's kind of like gambling the stock market. And you know, I understand real estate, I know how it works. So why not teach people how they can do it in a tax deferred or even tax free way to, you know, invest.

Exactly. Right, right. So, and why don't you tell us what kinds of assets that come up most of the time or that you all are able to connect people with?

Yeah, so majority of clients since I've been with New you, they love the real estate. And that's why we focus heavily on real estate, because it's not going anywhere. People are always going to need somewhere to live. The good thing with the way the market's going right now is, you know, yeah, interest rates are high, but that's actually working out better for people like multifamily syndicators because more people are being forced to rent longer. Right out of college they might have thought they were going to buy their first home, but you know what, they're renting and they're staying in apartments and there is not enough affordable housing at the moment. So, you know, there's a lot of things that are kind of playing in favor of multifamily and that's one of the asset classes I appreciate. But there's a ton of other things you can do. You know, there's more active type of investing in real estate, like fix and flips, short term rentals, you know, maybe even joint ventures. And then there's other passive investments like buying mortgage notes or tax liens. But I'm more of a passive investor myself. I like to invest in notes currently. But once I get to a certain level, multifamily is where I want to put my money.

Okay, and then you, I believe, also have some, some different ways people can invest in crypto and, and some other things that way too. Gold, silver, minerals.

Yeah, those are some other assets I see clients buy. They're not as prevalent, you know, gold, palladium, silver. I do see clients buying those. I don't understand how those things work. So I don't invest my money in there. And you know, I always tell my clients, no matter what, you have to do your own due diligence and figure out what works for you. Focus on your niche and focus, you know, how understanding that market, that way you can't lose. You know, at least you did your homework before. You just took somebody's word on it and put your money in there. And as far as crypto, you know, that's similar to the stock market. It's up and it's down and it's unpredictable. So that, that's a tough one. I don't want to say I'm not an advocate of crypto. I have invested in crypto myself. I'm just to try it out, but I can't understand it. So if I don't understand it, I really don't want my money in it.

Okay, and so what's the journey of someone that's making that change? They want to take some of their money, say out of an ira. What do they do?

So there's different ways. Most of the time the people that I'm reaching out to or anyone that has ever left an employer, and there's a lot of people, the average person's at least changed employer twice in their life, in their career, and a lot of times that that money that they had from a previous employer, they bring with them to the next employer or they take it as a distribution. I do not suggest taking it as a distribution because then you're paying taxes on it and you're paying penalties on it. I would rather, you know, if you're listening and you know, I don't give financial advice, I'm not a financial advisor, but I do want to make one recommendation is do not take the distribution unless you really, really need it and roll it over to your next retirement plan. Because even though it's in that current employer's plan, it is still eligible to be taken and rolled over to a self directed ira. So, yeah, ideally, move it to a self directed IRA when you're ready and you have enough funds in there. If you ever left an employer, figure out how much you rolled over because while it's still invested, it's still growing and it can be rolled over to a self directed ira. So those are the people that I like educating the most because they do have eligible funds that can be moved to a self directed ira. And not only that, make your contributions annually. This is why the government gave us these limits. And it's not a whole lot about like a traditional Roth IRA. $6,000 a year doesn't sound like a lot, but if you contribute the maximum amount every year it accumulates if you're making the right investments, that's the key to winning the game at the end of the day.

Right. That compounding is critical. It really is. Even if it doesn't seem like it's a lot to contribute each year. And so you have Roth alternatives as well, correct?

Yeah, I'm a big fan of the Roth ira. So if you're listening and you have all your money that's pretax right now, say a traditional IRA or SEP IRA or even a 401k, consider a Roth conversion. If you don't have a Roth, it's a very powerful way of investing. You know, pay the taxes on what you have now rather than pay the taxes later is what a lot of people like to do. And the cool thing is you don't have to convert it all at once. You can do small amounts until you've converted the whole thing. But then going forward, as you invest that money, it's going to grow tax exempt. And when you take it out, you take it out tax free. But not only that, the Roth IRA does not have required minimum distribution. So when you reach the age 72 in like a traditional IRA, you have to start taking that money out, paying taxes on It a Roth does not have that component. The cool thing about that is when you do pass on to your beneficiaries, they're not going to be taxed on that money. It's tax free for them as well. So there's a lot of cool perks that come along with a Roth ira.

Yeah, we've all been very slow to learn about how powerful that is. I think when you think it's been around, what, for 25 years?

Yeah. Over that.

Yes, yes. And then going back just a moment to the different asset types, we kind of skipped over assuming the viewers would know. Talking multifamily is typically a syndication. And that's a word that scares some people, doesn't need to. Technically a syndication is anytime two or more people pull their money, it's papered with legal documents to make it more official and for more investors to come into it. But. But you all help people tremendously with getting involved with the investments on those, it sounds like.

So we do.

Do you have any idea how many investors you have doing that?

Oh, it's too hard to track. But it got to a point where we created a new department. It's called our Syndication solutions department. The reason we created this is because it is in demand. More and more investors are looking at investing into syndication type deals. And just like you defined, you know, it's a group of investors pulling money together and making large investments a lot of times in like commercial property, multifamily. And I enjoy teaching people that this is an option for them. You know, driving down the road, I see so many apartments. And we're in Orlando, Florida. So we see apartments, you see a new paint, new name of the apartment. And you know, that was a syndication deal. You just know because this is a hot market right now, you know, everyone's moving to Florida. It's a beautiful state. There's so much to do here. So when I started learning about syndications, I said, you know, we need to focus on this. We want to be that go to self directed IRA company that understands these syndication deals, people that are raising capital and what their pain points are, we want to help them get that capital faster. So we have invested heavily into digitizing all our documents. We've got a new client portal we'll be launching. Not only that, a lot of people that do get scared from the syndications is because there's leverage involved and there's what's called a UDFI tax. But the cool thing is if you're eligible for a plan like a Solo 401K. You can avoid that UDFI tax because it's the only plan that doesn't have UDFI tax. So you know, those people that are qualified for that plan. You know, a lot of other custodians won't tell you about the Solo 401k, but we offer that here at Newview. And it's one of my favorite plans next to a Roth IRA because you don't have that tax. So I encourage all syndicators to do a little bit of homework on the UDFI tax and solo 401k plan because that's the solution to a lot of investors, you know, issues and why they're a little skeptical about investing in syndications.

Right, right. I'm so glad I started a solo plan and have a Roth and under it too.

Yeah.

Explain what a UDFI is.

So it's unrelated debt finance, income tax. Basically say you're investing and I'm just going to bring it back to like a single family residence because that's the best way to explain it. So I'm buying a single family residence and I don't have enough money in my IRA to buy it. So I borrowed some money, I took a mortgage out, typically a non recourse loan, because there's leverage involved in this. Now I have to pay taxes on some of my profits, but it's only taxed on the borrowed portion of my profit. That's what I'm paying taxes on. Not paying the taxes on my IRA owned portion of it, just the leverage portion. So it's the same thing with the larger deal, like a multifamily deal. There's leverage involved many times. And because there's leverage involved, you're paying taxes on that leverage portion. But the good thing about the multifamily is there's lots of investors involved in this. So your tax is really minimal and does not mean you can't make great profit off the investment.

Right, right. And plus, as a limited partner, your required time is nothing after you make the decision. It's mailbox money. Pretty much. Your exposure for risk is limited. The very max is what you invested. There's all those tax benefits. So your K1, for instance, a lot of the people that just invested in ours are going to get 65% of what they put in on their K1 as a deduction for their taxes. Yeah, it's, it's tremendous, very powerful stuff. So. And going back to one of the things that, that I want to beat the drum about and that's getting more people to realize they can control their money better. And so I think that you, you have confirmed here now that one of the things I can do is put your logo on my website and, and have a hyperlink to help explain to people. When they click on it, it will tell them exactly what to do so that they can go ahead and start transferring money and get control, better control of their funds.

Correct. So one of the biggest things with the syndication solutions department that I wanted to do is be a resource for the syndicators and the sponsors. I wanted to make the process so easy for them that they don't even realize how many people are clicking the button on their website, filling out their documents and, and then getting the cash into the investment. I want to make it so automated that they're going to be so surprised that you know, they're getting investors coming just by visiting their website and you know, maybe having a conversation or seeing them speaking at an event and they go to the website, they say, oh, I have a, I have an ira. Why don't I use a self directed IRA to invest in this deal? And you know, they might not have to have that long conversation or educate them because it's already including videos with walkthroughs through the paperwork, the application process, how to fund the account. And then all the syndicator sponsor has to do is make sure that the subscription agreement on that website, which it's a landing page customized to that sponsor, is up to date. And that way the clients fill out the right investment documents and then we get the funds out there, you know, as soon as they're available.

Yeah, that's great. That is, that is, you could start a syndication directory of other syndicators.

Well, that's something in the future we are working on. So these syndicators and sponsors that have been great referral sources for New View, we're creating a marketplace and I think that's going to be ideal for our clients that are, you know, they have a lot of money and sitting in cash and it's not working for them. And it's coming from other investments they've made in the past. But now they're going to have a place that they can actually go and say, hey, I like investing in self storage. And we have a list of self storage investors that they reach out to. They want to invest in multifamily. We'll have a list of multifamily investments that they can make and it's up to them to do due diligence. So we're going to have lots of disclosures and some agreements they'll have to sign before they can use the marketplace. Because we have to make sure, you know that we're doing our job and not crossing that fiduciary line. But we also want to be able to provide the clients what they want.

Terrific. Okay, so how do people reach you?

Best way to reach me is actually going to reach out to my team. My account executive, Steve Maldonado. The best way to reach my team is email syndicationewviewtrust.com and that will go to anyone on my team. And whoever sees it first will be the fastest to respond and we will get the ball rolling for you.

All right, very good. Well, thank you much. That wraps it up for today. Have a good day.

Thank you so much for having me.

Well, I hope you enjoyed that. If you did, please, like, share. And most importantly, if you want to know, when an opportunity comes available, do register on pivotalrealestateinvestments.com so we can get in touch with you. It's important to have a conversation. Likewise, follow us on Facebook and Instagram. We'll have briefings we pass out time to time. Thank you.