The Confident Investor

Yeah, yeah, Cynthia's telling me right now how to do it. So. Hello, everyone. Stick on here. We're just, we're just trying something new technically for logistics. Go ahead and use the chat. We love to hear from you. Make sure you select everyone from the drop down in the chat. This is going to be recorded. It will be sent out to you guys because always Don and Protect wealth, they have a wealth of knowledge, no pun intended. But it's really true. Like, there's so much information you guys are going to get in the next hour. So we're definitely going to record it and we're definitely going to send it out to you and, and that way you can review it later, you can share it with whoever you want to share it with. It's. This is not private information we have. We both have email lists and audiences of tens of thousands of people. And so we love sharing as much information as we can with everyone who's out there. All right, I'm going to hit record and we're good to go. All right, well, welcome everyone. Thank you for coming to the Asset Protection Investing Master class with Protect wealth and SUO Capital. I'm very happy that you're here. Hello, everyone in LinkedIn land who's watching on the LinkedIn live and hello everyone who's in the zoom. We will be sending out the recording, but feel free to take tons of notes. You're going to learn so much information. Before I kick it off, I want to say two things and then I want you to introduce yourself, Dawn. Two things is that I have done multiple events with Don and his Protect wealth company, these JV masterclasses. The reason I do them over and over again is because after we do this, you know, we offer book a call and I talk to people who have worked with Protect wealth and who have gone to their three day summits and their events. And people always have amazing things to say about Protect wealth and the team over there. And so when I hear amazing things about people I've partnered with for events, I continue to have events with them. If someone says, oh, I worked with that team and they stunk, I never do an event again with them. So I want you to know that, you know, there's no, like affiliate program with this. But I love promoting good people and Don and his company are good people. And we get great feedback from not only my investors who have gone to their courses and worked with the folks on their team, but people who worked with Don and Protect wealth who then came over and, you know, started Investing with Sugo Capital. So I wanted to start off with that and then I'd love to hand it over to you, Dawn. Go ahead, introduce yourself. Let us know who you are and your company and what you guys do and all that.

Well, thank you very much. And likewise, the people that come from your organization have such good things to say and we appreciate that. So I've been teaching asset protection for almost 25 years now. I got into this because, frankly, because I got sued and I got four little kids at home. I have no idea how this is going to play out. I was running a little recreation park down in Southern California and there was a drive by shooting and a little 18 year old girl got hit in the head and I got sued because I was the manager on duty at the time. Oh my gosh. And I have no idea how this is going to play out. And it was three years of hell of depositions and interrogatories and requests for admission and we didn't know if we could move. We didn't know if we'd buy a house. We didn't know it was the uncertainty, I think that made it so uncomfortable. And, and since then we've written five textbooks on asset protection. And I feel very, very grateful to be surrounded by some of the best attorneys in the nation. Some of the best, the coolest entrepreneurs. We had Kevin o' Leary from Shark Tank in August. We've had the former senior trial attorney from the irs. Some of the best people in the nation. If you have, if you, if you want to work for the Chicago Board of Trade, you have to go through classes taught by Mike Coval. Mike's at every one of our. It's just the caliber of people I feel very blessed to be just even on the stage or in the same room with these, these people. So that's what we do. Asset protection, income tax reduction, especially for the real estate investor and how everything ties into an estate plan. So how's that for a summary elevator?

Perfect, thank you. And I see a bunch more people jumped on, so you guys feel free to use the chat. I'm not trying to look shifty, but my eyes are going to be going from the Q and A to the slides to the chat. This is going to be a one hour masterclass. We're going to try to get through content in about the next 50 minutes so that we have time for questions for you. I'm going to go ahead and share my screen and I'm going to kick it off with a few things about different kinds of investments and investing. And then like John, that is specialty is in the asset protection space. So you know, part of your there, there's several steps to your due diligence. So we're going to talk about them today. Oh, let's go. All right, moving my chat. Okay, it's loading, it's loading, it's loading. It's coming up. Okay, so we already talked about asset protection for investors. So what we're going to talk about today is 15 Ways to Make money in real estate. How to do due diligence on those investments, how to keep your investment safe and how to keep yourself safe. So those are all things that you need to know when you're investing. So we all focus super hard on how do we make more money, how do we get more money coming in our door. And then we also need to think about how do we keep more of that. So that's tax strategy. And then also how do we keep more is asset protection, how do we invest it, how do we make it multiply? All while keeping that money safe. All while keeping ourselves safe. So I'm going to start off on the investing side and then I'm going to pass it over to dawn to talk more about the kind of keeping yourself self safe side. So here's Dawn's wonderful bio which has been in the information we sent out. And Dawn, I do want to highlight the very last thing, the three day asset protection summit. So I want to make sure everyone gets invited to that. So as I talk, if you wouldn't mind putting the link in the chat, I think it's a really, really good event and my investors always ask me about asset protection and that's why we're on today. But we only have an hour and I know that there's so much you can't cover in an hour and you guys have some events coming up, so do feel free. I'd love our investors to be able to attend that. If you have a link to sign.

Up, we'll do that and I'll talk about that after you get done. We can put the link in there, but they'll want more information.

Yeah, definitely. Okay, cool. So Sugo Capital, for those of you who are invited here by dawn, for those of you who work with Don, I'd love for you in the chat to write the word dawn or Protect wealth if you've worked with Protect Wealth. I'd love to see who's here. Those of you who don't know me, I'm the founder of Sugo Capital. I'm Sarah Sullivan and I connect investors to passive income opportunities. So what I'm going to talk about today is 15 Ways to Make money in real estate. Not all of them are passive, but for investors who decide they want to be passive, those are the investors I end up working with and partnering with. So we have about 3,600 units under management, and that's all multifamily. That's apartment units, and that's about 450 million assets under management. Investors invest with us in two way. One is direct syndications and the other is via our cash flow fund. Okay, so I'm going to give a little bit of history and why I do what I do. So I grew up working in tech, director of engineering tech startups, and I was investing in real estate because I thought, you know, that's how millionaires are made. I'm making money and I'm going to go put it over in real estate. Well, this is a before and after of one of my investments. And the first picture is actually the before and the second one's the after. Normally in real estate you see the flip flop of before and after pictures. But I live in California, so I was investing out of state. I didn't do proper due diligence on the people involved in the transactions. I was doing the property management company I was hiring, I didn't do proper due diligence. So I, I lost money in single family, home and duplex investing. But I didn't stop there. I didn't go, oh, real estate, you lose money in it, I'm out of here. I said, that's not the right type of investing for me. My lifestyle, my level of effort that I want to put into investing, where I live, my location. And so I continued to explore, and I explored over 15 different types of investing in real estate. And so what I do now is I invest in development, either hotel and apartment developments or syndications. That's value add. And so now my results are much healthier. 18 to 25% returns. And those were my returns as a passive investor. And so I started telling friends and family about the investments I was doing and the returns I was having. And that's when I started to grow. And instead of saying like, oh, who can I talk to one on one in my life, I started putting on events and growing an online audience in order to educate and share the things I was making money at with more and more people. Okay, so, you know, everyone asks like, oh, what is a good thing to invest in right now? There are lots of Fabulous investments right now. There are lots of ways you can make money. The thing is you need to determine what kind of investing is right for you. And that's the first step in making sure that you're protecting your money, is making sure that you're investing in the right kind of investment for you. Because different investments have different cash flow, they have different levels of effort needed to get them going. They have different levels of money needed to get started. They have different levels of risk, they have different levels of appreciation. There's all these things. So you need to think about first is what are your values? What do you need from your investment? And then start looking for those investments and then figure out how to protect them. So step one is vision. So think about where you are in your life. Do you want more passive income so you'd be investing for cash flow or are you investing to build your net worth for the future? So for instance, I have a seven and nine year old, I have a pocket of my investment, my investable assets are for college, for their future. So I don't care about cash flow, I don't care if that pot of money is making money Today, it's for 10 years from now. And so I'm fine if those investments are a long term hold and I care most about how are they going to appreciate. So think about your vision for this money or the vision for your lifestyle. You know, is that passive income or wealth building more important? Also think about the level of effort you want to spend on your investments. So the single family home investing that I did, it actually took a lot of my own personal time to build out that portfolio. You know, individually searching for all these homes and property management and going through the purchase and the REMA and the whatever it was. So I decided that was too much for me. I had a full time job that I was working and so that's why I went into private placement real estate deals where I was a passive investor. Really think about what level of effort you can support given the lifestyle you're looking to maintain. So like my parents for instance, they want something totally hands off. They're retired, they just want to play with their grandkids, which is what they're doing to the today while I'm working and they have off of school. Step three is think about the level of risk that's palatable to you. So besides asset protection, you know, that'll protect you from people coming at you with lawsuits and these sort of things. But also there's just the level of risk of the Asset of losing money in the asset. Some assets can just, you know, lose value 40% in one day. We've seen that in crypto and the stock market. Different real estate asset classes don't do that. So they aren't going to make you 40% in one day, but you're not going to lose 40% in one day. So really think about that while you're figuring out what's right for you and then set the goal. You know, what's the timeframe? It's also really important because some assets are very liquid and some are not liquid. And so you want to make sure that you're incorporating the right liquidity into your investment plan. Okay, disclaimer. Don and I are going to talk about numbers, opinions, investing, legal stuff, maybe some tax stuff. I'm not a cpa. I'm not an attorney. Just saying, hey, this is for educational purposes. Don't make decisions based on what we're saying today. And make sure you do your due diligence and have some one on one conversations with professionals before moving forward in your investing. Okay, so I'm going to go through this next slide really quickly, but it is a lot of information and I have a whole webinar that talks on just this one slide. So I'm not going to go through it, but I want to put it up because it's going to lend to Dawn's conversation about asset protection because there's so many ways to invest in real estate and the way that you're going to protect those investments might be different. So I'm going to quickly just put all these up on the, on the screen. And these are 15 different types of investing that I have either invested in or I've studied, you know, gotten mentorship on. And so I put them all in one slide to compare them so that it can be a fast track for my investors to decide what's right for them. Because single family homes, for instance, I'll take you through this chart. Then I'll go kind of quickly. We all know what that is. You buy a single family home, you rent it out. So there's an annual ROI to all of your investments. And that means, hey, when you exit your investment and you add up everything that you've made during that time and you divide it by the number of years you were in it, what was your roi? So that includes your cash flow and your appreciation. Now, there's also a cash flow element. So single family home rentals, usually people are investing for cash flow. And I suggest you definitely make sure, it cash flows. So when you're looking for a single family home rental to buy, a lot of people talk about this 1% rule. And I say you should follow the 2% rule, which means can you rent this home for 2% of the purchase price every month? And a lot of people go, there's nowhere you can find that for sure. Not in California, but there are plenty of states in the U.S. especially if you're looking at duplexes where you can rent the home for 2% of the purchase price every month. If you do that, then you're going to have strong enough cash flow to cover your incidentals, your taxes, you know, if you need a new roof, your property management fees, et cetera. And that's very healthy. So make sure that you follow the 2% rule, not the 1% rule. We want you to build your wealth, not skim by on skinny cash flow. Level of effort, I say it's high. And so I want you to kind of, if you have some single family homes and you think they're low level of effort, then when you see an L for level of effort low or medium in this chart, you'll know they're really, really hands off. Really, really low level of effort. Risk. I put high. And the reason I put this is because if you have one single family home with one tenant in it and that tenant doesn't pay rent for six months and you have to evict them and pay your legal fees, you still have to pay your mortgage, you still have to pay your taxes, you still have to pay for things. And so you're personally on the hook for that. It's just you. And so when you're doing investments on your own, it's you, you're responsible for everything. When you're in a passive investment, you're hands off, you don't have responsibility. So that's a low level of risk. The cool thing about single family home rentals is the whole period I say your call to touch on the point of liquidity and so can sell your single family home rental this month if you want to. Yes, you can. If you're in a fund that has a one year lockup or a 90 day liquidity period, you need to make sure you're okay with that before you make the investment. So I'm going to run through. Now that you understand the categories, you guys can take a screenshot or look at this later in the replay because it's not really the point of today, but when you're thinking about how are you Protecting your assets? It depends on how your, what kind of assets you have. Are you in syndications? Apartment syndications, which is what I do. Are you in hotel developments? Are you flipping land? Do you have some Airbnb rentals? Do you have individual mobile home rentals? Maybe. You got to think about, depending on the type of asset you have, you might structure how you hold them differently. So I'm going to talk about just really at a high level, what is an apartment syndication? And that's because this is what I do. So when we're talking about asset protection, I'm going to be, since my investors who are here is what they invest in, I'm going to be, you know, making sure we answer questions about how to protect any passive investments you have. So for those of you who don't know what it is, a multifamily syndication is which. This is actually any type of syndication. So what I'm about to say, it applies to any, any type of syndication. So it can be a retail park, a mobile home park, a storage unit facility. Basically, it's where someone, in this case me, goes out to buy an asset. So say I'm going to buy this apartment building and it costs a million dollars. Well, I create an LLC and I hold that apartment building in the llc. The LLC owns that apartment building, and that's the sole function of the llc. It's a business. And the business is to run that apartment building as effectively and efficient, efficiently as possible. Now, to make the purchase, say it was a million dollars, that would be a steal for this apartment building, we need a down payment. We're going to get a loan for usually around 70. Well, it's changing today. Sometimes it's down to 50, but it's usually between 50 and 80% of the purchase price. In this example, we say we get a loan for 700,000. Now, that loan, the investors do not need to sign on the loan. They're not on the deed for this apartment building. My partners and I, we guarantee the loan and we go out to private investors and we say, hey, would you like to participate with us in this investment? So the way the capital stack works is for everything that needs to be provided to make this purchase work. We go out to, let's color code it. There we go, the general partners. So that's like me and my partners, the ones who are putting this together and running the investments. We supply some of the capital. Then we go to limited partners and they supply some of the capital. And then we go get a commercial loan. And that supplies the majority of the capital. So that piece of pie represents where is the money coming from in order to make this purchase. Now the pie on the right hand side reflects the ownership or the equity for the individual parties. So the investors who supply 30% of the capital needed to make the purchase, they get 70%. Collectively they get 70% ownership in the LLC that owns the building. So that's really cool and important to understand when you're a passive investor is what, what kind of percent are you getting? And this is how your, your cash flow can be moderate but your capital gains can be very strong because you're not getting capital gains on 30% ownership. For providing 30% of the price, you're getting to keep 70% of the capital gains of the entire. And so that creates a really strong win win for everyone involved. And so I'd like to say that the, the biggest benefits to investors for a syndication is that you don't have to make any decisions. You're not on the loan, the tenants don't know who you are, the property management company doesn't know who you are and you still get the pass through tax benefits of real estate. So from the property, the depreciation and loss from the property goes to the llc, goes to the individual investor sisters. So it's very cool. Then I'm going to, very quickly, actually I'm going to skip over this because I don't think it quite applies to asset protection. But I wanted to kind of highlight those pieces of it. With that, I'm going to stop sharing and say, don, let's talk about, okay, there's all these ways to invest in real estate. There's I own something individually, I own something with a couple partners. I have some investments that are in some passive stuff, syndications. When you're working with someone, you and your team on, you know, coming up with an asset protection plan or an entity structure for investors, where do you start? What do you look at?

Well, the one thing that I really loved before you go there, I look at risk. And one of the things you mentioned, one of the benefits of being a limited partner is that there's no risk for you other than, you know, the investment you put in. But if something happens on the property slip and fall, they don't sue the investors. You're safe from lawsuits that way. So your investment in this would be considered a safe asset. You can put that in the same legal bubble with your stocks and bonds and mutual funds and gold and silver and paintings and collectibles because there's no inherent risk to you. There's no lawsuits that can penetrate that. It's a safe asset. So what do we do? We like to protect that. If you've got investments and put that in an entity, let's say a limited partnership or an LLC of your own, you could put that in your own name, but then that might be susceptible to a lawsuit. Did that answer your question?

Yeah, I did. And I have a lot of investors who, they invest in their own name because they say, you know, who, who's going to bother with me? And do you think that some people should be worried about protecting their assets and putting their investments in an LLC and other people should not be concerned with it?

You know what, what most accountants and in fact most attorneys will tell you is just carry more insurance and then you're covered. Well, I've got a million dollar brokerage account. Or okay, I'm pretending, but let's look, okay, if, if I run into somebody and it, and, and it hurts them and that exceeds my liability insurance or there's a gap in insurance, I, you know, the policy excludes this or excludes that. Read your homeowner's policy and it'll scare the dickens out of you. Because the first page, the first three or four pages will say, here's what we cover. And the rest of the 27 pages will say, here's what we don't cover, here's all the exclusions, and here's how we interpret things. There is always risk to running a vehicle, to owning a home, to owning any investments. So we always like to safeguard those with a legal bubble that protects things from outside lawsuits. And then we tie that into a, generally into an estate plan like a trust.

And is there a limit to, you know, if someone is all in on passive investing and they have a million dollars and it's split between 10 different syndications at 100k each in each syndication. So is there a point where you suggest people start kind of breaking stuff down and getting more creative or one LLC for all your stuff?

No, not necessarily. My brokerage account could have $10 billion in it and invested in 300 different companies. But that, but that doesn't mean it brings more risk to me. But would I ever take a vehicle and put that in my million dollar brokerage account or in my million dollar limited partnership? No. Or a piece of property. Now I've introduced risk into that otherwise safe bubble. So the very first thing we look at when we're protecting assets is we're separating safe assets from unsafe assets. Rental Properties, if I'm going to hold those, I might separate those each in a separate llc. But as long as safe assets, it's like a brokerage account. As long as all those assets remain safe, and I don't introduce risk, you can have billions of dollars in the same legal bubble that it doesn't affect anything.

Yeah, I think that that's great advice. And does it change by state?

Some states will offer complete anonymity, like Nevada and Wyoming, where I can hold investments. Think about who owns the big casinos in Las Vegas. Well, it's probably the mafia, but we don't know because you can have billions of dollars in a Nevada corporation and it's not tied to, on any public record to you or your name. I mean, the IRS knows. But, but think of how hard it was to get Donald Trump's tax records. That's not a matter of public record. And so we could hold assets in Nevada, Wyoming. Some states offer a lot better charging order protection, which means it's a lot. I can't take that asset away from you. Some, some of the states offer better corporate veil protection. If I, for instance, if I were in California and my corporation, I did something wrong, I'm negligent in some way. Let's say I forget to put on the COVID plate on an electrical outlet a two year old sticks his finger in, am I negligent? Yes. Then they can pierce the veil, come after my personal assets. But in Nevada, Wyoming, I would have to be grossly negligent. That doesn't sound like a lot, but what it means is the plaintiff now has to prove intent. My intent was to lure little two year olds into that cover plate. And, well, that's a standard that's almost virtually unbreakable. Yes, there is a very big difference between estates and what they offer for protection.

And so is it really common that you suggest people have their entities in those states even though they live in different states? States.

Oh, that's a really complicated question. Let's say I've got a brick and mortar grocery store and it's in Tennessee. That's in Tennessee. That, that has to be held there. I'm doing business, I'm advertising, I'm dealing with the people of Tennessee. Clearly that's a Tennessee entity. But then I own again, my million dollar brokerage account. Could that be. That's not tied to any particular state? California Franchise Tax Board might think it is, but, but, but it's really not. No, I could, I could put that in a state that offers better asset protection than most Other states and so jurisdiction. But could I hold, if I had six rental properties, could I hold the tech. Hold those in, let's say Texas or Alabama or Florida. Hold those in single member LLCs. But all those are all held by a Wyoming holding company because Wyoming offers better asset protection, offers protection for single owner LLCs. And it gives me anonymity that the other states don't do. So sometimes we will layer our asset protection and use the state in which where you're doing business, but who owns that business? And then I would layer that in a stronger state. So it's very, very dependent upon you and your situation. There's no real pat answers for that, but it's a good question.

Yeah. And especially because being in California, we have a lot of our investors in California and our properties are not in California. They're in Texas, Georgia, South Carolina and then. But they're passive investors. So where do they. It gets very. You have options there. So choosing the state is often a question I get and I say, oh, I'm managing the investment. I'm not advising on where you should hold your entities.

And that's something. You're right. And we can't give tax and legal advice, but there's certainly a difference between states and that's something that we can help your students identify and say, what are the advantages of Delaware? What are the advantages of South Dakota or Alaska or Wyoming or Nevada? And we're pretty good at that.

Yeah, you mentioned something that not everyone on here. Hi, Ken. Hi, Kevin. Good to see you guys might know what you meant by that. The corporate veil. You said piercing the corporate veil. What is, what does that mean?

You know what? Let me share my screen and I'll show you exactly what that means. Let's figure out how to do that.

There you go. Should be working now.

Okay. Share screen. And I want, I think I want this one. Got too many screens.

Perfect. I see a train.

Yeah, that's okay. No, that's not it. So. Don't want that. Too many slides. Here we go. Let's try this slide. Okay, so it's really good question. And I'll tell you, most, Sarah, most accountants and certainly most attorneys don't understand the difference between corporate veil and charging order protection. So maybe this will make a little difference. A corporation, what it does. A corporate veil. What it does is it protects the business. Protects you from the business. Let's say, for instance, the business gets sued. Oh, am I sharing this? Wrong. Swap presenter view. Okay. Display settings. Okay, There we go. Is that better?

Perfect.

Okay, so the business gets sued, whatever your business is. What we, what we want to do is we want to have a proverbial brick wall between that business. We want to contain the risk in there and, but protect your personal assets. That's called corporate veil. Again, the goal is to attract and attain all the liabilities, but shield the officers and directors and the owners. And there's two different types of businesses that do that really well. That's corporations and limited liability companies. And it doesn't matter if they're single member, multi member, doesn't matter, manager managed. It does matter a little bit, the jurisdiction. But what will determine this is are you keeping the corporate formalities of whatever that business is? If you have a corporation, you're required to have an annual shareholders meeting and a stockholders meeting annually and keep minutes at those and, and keep a stock ledger and issue stock certificates and keep a separate bank account. If you've got an llc, you don't have a lot of those formalities, but you can't commingle fund. If you're required to have a tax return, keep a tax return, pay your taxes on time. If you don't do those, a lawsuit against the corporation, they'll pierce that and come after personal assets. That's what a corporate veil is. And charging orders is very, very different. We would want a corporate veil for anything to do with an operating company. Any business that, that runs a business that is out in front of the public, that has any exposure, we want that good corporate veil protection. Charging order is completely opposite. What that does is it protects the assets from you. If you ever think back and you go, yeah, I could have thought that one out a little bit differently or if there's ever been a lawsuit or you've been accused of a lawsuit. Now I'm interested in, in charging order protection. What this does is let's say the lawsuit comes to you individually. Now what I want is a proverbial brick wall to protect the assets and my ownership interests in LLCs and corporations, in whatever, whatever investments I have, I want that protected from my personal lawsuit. Goal here is to protect business interests and my personal assets. So I own a half of a corporation I own part of a syndication I own. I want those protected from a personal lawsuit. Corporate veil doesn't apply because the corporation didn't get sued, I got sued. They're coming after my assets and I want to protect those. There's two different types of entities that, that do that very well, and that is multi member llc. So now we'll See, with more than one member and family, limited partnerships. And this we always use. We were looking for charging or protection whenever there's real estate holdings, whenever there's investments of my syndications, my brokerage accounts. When this is for holding companies, I want good charging order protection. Not, not, not. Corporate veil. The corporation. Corporate veil is when the corporation gets sued. Charging order is when I get sued and I'm trying to protect the assets. Did that make any sense there, Sarah? Cool. Okay, good. How else can I help your. Your students clarify?

Yeah, I think that's good. Another thing is a trust. So I see some questions in the chat and I have it written down as a topic to cover. And you're still sharing your screen if. I don't know if you have another.

Yeah, I do. So let's. Okay, let's go to a trust.

Yeah.

Okay. There we go. So we talk about a trust all the time. And what people. There's really two estate planning tools that people use is a will or a trust. Will is directions to the probate court as to what to do with your estate. Oh, I gotta change my setting. There we go. Swap for. Okay, so. Thank you. A will's directions to the probate court, which means figure if your estate is going to go through probate or an asset is going to go through, figure about generally 3 to 8% of the value of that right off the top to figure out who owns this. In other words, when I pass away, I want a succession plan that avoids probate. Because wills are going to be contested. 25% across the board is going to throw your estate into probate. Let's say I've got a bank account or a piece of property. When I died, those were in my name. Who owns them now? Well, somebody has to figure out who owns it. And the trust is. Is the ultimate way to avoid probate on the assets because we retitle the assets in the name of the trust. Let me show you how this sort of works. I think most people know if they own a home, they probably ought to be retitled in the name of the trust, because remember, the trust can only control that which it owns. If you didn't put the asset into the trust, it can't control it. So I think most people kind of get that. And if you have bank accounts or if you have brokerage accounts, those could be retitled in the name of the trust. When you die, there's clear succession. The trust owns it. Okay. And therefore the successor trustee carries on. If you've got investments in rental Properties or if you've got vehicles, all of those things can be tied into the trust. What a lot of people don't understand and even attorneys don't get this sometimes is I could take my ira. My IRA I set up for my benefit. I'm the primary beneficiary, but then I listed, let's say my wife as the contingent beneficiary. What I could do is I could make the trust the second contingent instead of making the kids the contingent. And I've got five kids. And so rather than naming them, I put everything into the trust. And it's in the trust where we establish our values. My wife and I go, you know what we value education. So kids or grandkids. If you want money out of the trust, here's what you got to do. You have to have a 3.0 grade point average. You can't be a druggie. You got to read the Bible two times. You got to, I don't know, whatever, whatever you can put into writing, you can put into this Trust and the IRAs. This contingent beneficiary could be the trust. I could do the same thing with life insurance policies. I could take, okay, I'm not the primary beneficiary of my life and policy because I'm not here anymore, my wife is. But then I could make the second contingent or the contingent the trust and put everything into the trust rather than dumping on an 18 year old or a 21 year old kid. Here's half a million dollars of life insurance. We put it in the trust and there's stipulations. Okay, we believe in missionary service. So if you want to do that, then here's this. We believe in military service, but they don't pay very well the first few years. So here's a little stipend if you're in the military or see what we do. We believe in traditional marriage and therefore if you, whatever you can put into writing, you can put into the trust. And we're establishing our values. Where most people even, even with this, where I see most attorneys messing up is they're not tying their business interests into that trust. I helped a lady a couple years ago, they had a four million dollar water drilling company down in Texas that come in, you know, water well, and, and they're doing very well. He dies of a rodeo accident, leaving her as a widow, 38 years old with four little kids. Oh, wait a minute. They didn't own the business. He owned the business. It was a single member llc. Who owns the business now? Well, it's going to go through 12 months of Texas probate to determine that she is the owner of the LLC and that may not be worth $4 million. At the end of Texas probate. We always take your interest in a corporation. Let's say I own a 40% interest in this corporation. What do we don't title the stock certificates in your name. They would be titled in the name of the trust when you die. That the trust didn't die, you did. We take your rights and interests in a limited partnership or an LLC and we always tie those to a trust again so that it's, it's not a matter of public record. Doesn't go through probate, it doesn't get contested. Very rarely can it will a trust get contested. Wills get contested all the time. So that trust is an integral part. We believe it's kind of the foundation upon you which you build your wealth. You begin with the end in mind. And we don't winged in this and we don't leave our kids in a complete mess. My, my wife's great grandparents had this multi billion dollar estate and it was all lost. She remembers her great grandmother. In fact we, I was thinking about this this morning, our wedding gift. We, we had a handwritten note from great grandma but there's nothing left in the estate. It's all gone. This multi million million billion dollar estate and there's nothing there. We always, we begin with the end in mind and that, that's for most people, that's a trust. Cool. And we're gonna, we're going to spend a lot of time at the, at the three day summit teaching how this all comes together and what there's two opportunities for students to attend. If you're from Sugar Campus and want really good information on, on estate planning there, there's two opportunities. One of them is a live stream event coming up November 14th, 15th, 16th. You would register at protectwalt.com forward/sugo or there's one in February. What's critical to me is we get this done because if we can get the business structured when we start In November, by January 1st, we can, we can capture some things, some tax deductions maybe you missed in this year, but maybe we just get you all structured by January 1st of next year. February we lose a little bit because we can't go, we can't do anything about 2022. We could, you know, go back to January 1st. But November for me seems like the most critical time to attend. It's a Monday, Tuesday, Wednesday. Class I don't know how to avoid that. It just. I don't know. It just is. If you go to register, they're going to be asking very simple questions. Your name, your email. So we can send you a zoom link. You choose an option and pick the date. Is that Sarah? How's your. How's that for perfect?

And actually, I like that it's Monday, Tuesday, because then I can go this time when it's on the weekends. You know, I've got little kids. That's kid time. But during the week, they're in school, so I'm like, oh, cool, I can attend this one. The last one was on a weekend, so I couldn't do it.

Yeah, it's really hard to bring the firepower that we bring. The, you know, the, the attorneys and everything that we bring. It's hard to bring them on a weekend. So Monday, Tuesday, Wednesday. I know that's a commitment for a lot of people. The theme of our class has always been a lifetime to accumulate. Three days to protect. There's so much we can teach in three days, but the condition is really, give us three days, because I don't want you to come in half learn a legal strategy or half learn a tax strategy and walk out feeling all powerful, because that makes you very dangerous.

Yes. And I see some questions. Oh, look, there's someone saying it is a fabulous, fabulous event. Yeah. And that's why I really wanted dawn to share it with you guys, because people who said they went, Some of my investors went last time, and they said it was just really powerful. And they ended up shifting a bunch of. Of stuff in their. In their favor. So it's really good. Some questions are asking. Is Dom part of Anderson Advisors? No. But Anderson Advisors will be at the event, right?

Yes. And then Anderson does a lot of this legal structuring for us. We're not part of them. We're a very independent company. There's a lot of things that Anderson does very, very well. But you know what they don't do? Intellectual property. So if you need copyrights and trademarks and patents, we. We send you somewhere else. And if you need offshore trust, Anderson doesn't do that. They don't do charitable remainder trust and family foundations. So. So picture us as an education company, more like a quarterback. Sometimes we both throw the ball here or toss the ball there, hand the ball there. But we're. We're looking for some of the very best of the best in the industry, but for a lot of the structuring for real estate investors. And for syndications, most likely, we will direct you to Anderson. But we get a lot of Anderson's clients to us saying, okay, I've got this legal structure, but I don't really understand how it works. This is what we do best, is explain and strategize. And I'll spend the last two, three hours of each summit going through case studies and say, okay, what if this happens? And what about this? And how does this all fit together? And at the end of this, most of our students can say, okay, do you want this taxed as an S corp or a C corp? Do you want this in an LLC or a corporation? And once we've taught you the principles, most of our students go, okay, oh, I get it. So I'm taking the home and I'm tying this to the trust. I'm taking this. You're starting to see the pieces and how attorneys should think if they understood asset protection.

So, yeah, and I think it's, you know, no one's going to care about your money and your wealth as much as you do. And so even though it's good to have CPAs and attorneys on your extended team, they can't know you as well as you know yourself. And so it's good for you to have enough knowledge to go to them and say, hey, I learned this strategy, or, hey, you know, you, you didn't ask me this question, but let's review my answer. Had you asked it to me, would this change anything? So I, I'm a huge fan of everyone learning enough to be dangerous, but then making sure you work with professionals to execute it in the way that it's appropriate for you, you know, I.

Totally agree with that. And even, even then, you know, if you went to a, to a physician and say, hey, I've got a brain problem. You're not going to go to a podiatrist because they all have specialties. And they'll, and they'll. They're smart enough to know, because they're afraid of the attorneys to know that the attorney probably should. Shouldn't be a podiatrist or a cardiovascular surgeon or. And they all understand that attorneys have a degree of arrogance where they go, oh, this is not my specialty. They don't tell you that. And yet, according to the American bar Association,.6%. So less than 1% of the nation's attorneys specialize in asset protection. And I've seen attorneys give some of the same stupidest advice. Just put all your properties in single member llc. Okay, well, that's good. And you'll get great. You get good protection. No, you get corporate veil protection. But if you personally get sued, I'll come in and walk and take every one of those rental properties away from you. I'll take all your investments, your brokerage accounts, your syndications away from you because of how you hold title to those things. So attorneys, even though they're trained, or CPAs, if you've got a CPA that doesn't understand real estate and you're doing real estate, you got the wrong cpa, buddy. It's just there are specialties in legal and this is what we specialize in.

Yeah, perfect. Love it. There were some questions that I saw, so everyone in the chat, I'd like to hear. I have some more slides around due diligence for the investor investment side. So we talked about, you know, how to choose what kind of investments. Right. For you, how to protect them. But when you're looking at a certain investment and you're doing due diligence, I have a structure for going through the team, the market and the property. Let me know because we have about 10 minutes left. You guys want me to go through that? So it's really about understanding terminology in a private placement if you're going to do a private investment as a passive investor and how to do due diligence. It's a quick due diligence checklist. Let me know in the slack if you guys want to. Want me to bring up my slides and go through that. Those real quick in the last 10 minutes.

Do you want that in the chat screen or the Q and A screen?

In the chat. I got a bunch of yeses, so I'm going to go for it. You got some? Yes, please. Okay, cool. So I'm going to go through terminology for. This is terminology that's important whether you're making. You're evaluating an investment on your own or if you're evaluating an investment with a group. So passive investments normally are presented to you and there's going to be different information. And a lot of times people, if they haven't kind of gone through and first learned what those different terms mean, they misjudge the investment and they get into the investment thinking things are going to be different and then that's when nobody's happy because I've had people come in, oh, I thought the cash on cash was 8% paid quarterly. Yeah, it is. Well, my check was only for 2%. Yes. Because 8 divided by 4 is 2. Oh, I thought it was 8% every quarter. Like, oh, man, that would be a great investment, wouldn't it? But that's not what you signed up for. So part of protecting your wealth is making sure that you understand the investment you're going into. And so part of that is terminology. So I'm going to run through some points. This is not an offering at all. This is just representing what different terms mean when you're looking at different investments. Okay, so if you see an investment and it's talking about cash on cash return, that means what do you get paid either monthly or quarterly, what do you get that's like real time, you know? So like in the case of real estate, that would be monthly checks, or in a private placement, that would be quarterly checks or monthly checks, depending on it, what project you're in. But if you add those up for the year, what would it be? So that's the cash on cash. So an 8% cash on cash means that each year you receive an 8% return on your investment in the form of either quarterly or monthly checks. Now that's going to be really different than the annualized return. So the annualized return on an investment, it takes into account appreciation. So you don't get appreciation in the form of monthly checks. Right. And so the easiest way to think about it is you, you probably done this with the home that you live in. You bought it for $100,000 20 years ago. Now it's worth $200,000. It's appreciated by 100% over the 10 years. Let's say that's 10% per year that it has increased. Your annualized return would be 10% even though you didn't get any cash on cash return from that. You can also have situations where you do get a cash on cash return and you get an annualized return. And that's what syndications do. And so I'll show you in the next slide kind of how that could play out. If you were looking at an investment that had these, these numbers and these scenarios, investment profiles, this is important because it's going to tell you when your returns are paid. So a value add investment means that there is something that exists, it's going to be purchased and it's going to be made better. You're going to add value. There's lots of ways to add value. You can remodel it like a fix and flip. That's value add. You can buy in a market that's going to appreciate, but it's already an existing, existing asset. You can turn over the, the tenants, you can turn over the management. There's all kinds of things that can be a value add, but it means that something existing that you're going to make better, run more efficiently or increase the net operating income and resell. If an investment profile says development or new build, you're not going to get cash flow for a couple years because you're building it. So like a multifamily, you know, apartment complex that has 300 units going to take two years to build it. So you might have great annualized return, but your cash on cash is going to be zero. No one's living in it, you're building it. So these are all important things to know when you're choosing an investment. Like I said, you've got to know what's important to you so you can choose an investment that aligns with your goals. Accredited investor so what this the definition of an accredited investor is either there's three ways you can qualify. Well, there's some more, but you can look it up on the SEC website. But the three main ways are either you make an income of 200,000 or more per year or together with your spouse you make 300,000 or more per year, or you have a net worth of 1 million or more, not including your personal residence. So one of those three ways, if you say yes, that applies to me, then you can qualify as an accredited investor. It's not a test you take or anything like that. So I think it's kind of irrelevant. But you know, they're assuming that you have enough knowledge and enough money to play with and go into these kinds of investments. But it's important to know whether you are accredited or not, so that when you're looking for investments, you make sure that you're looking for investments that are open to you. So if you're not accredited, you would look for a 506B if you're looking for a passive investment or doing something on your own, because then no one's regulating it, you can go do a fix and flip, doesn't matter, those sort of things. Targeted investment, period. This is also very important to understand when you're going into passive investments. So if you're going into a hedge fund and the lockup period is one year and then it's 90 day liquidity to request your money out. You want to make sure you understand that. So you know, if this is for your kid's college fund and they're going to college in three months, then you wouldn't want to go into that investment. If you're going into a multifamily syndication and the investment period is five years. And this is something that you're investing for your retirement in 20 years for from now, then that's fine. You don't need that, you don't need liquidity. So a five year lockup is fine. Then make sure you understand what it is and that it's aligned with the goal of the money you're investing. Yes, Kevin, thank you for that dividing up. That is exactly correct. And then make sure you, you understand before you start doing all your due diligence with the minimum investment. Investment is I have investors all the time who spend a ton of time doing due diligence on an investment, but then it doesn't align with the amount they're looking to invest. And so in the interest of your time, make sure you find someone who's offering a minimum aligned with what you're looking to have as a minimum. So now I'm going to quickly show you what it looks like the previous slide, really demonstrate how that would play out. And again, this is not an offering, this is not an actual investment investment. This is just a model to say if you found an investment that in all the marketing material it said what was on the previous slide, this is how you would get paid. So the previous slide said a five year hold. So we have year one through five. Let's say the minimum investment was 100K. So you invest $100,000 is 8% preferred return, 8% cash on cash in this example. So on $100,000, that means every year you would get $8,000. Excuse me. And as Kevin put in the chat, that would be either quarterly, you'd get a check for $2,000 every quarter, or if it was paying monthly, you'd get a check for $666 every month. Okay, so at the end of five years, there's a sale. And so say from this sale you get $60,000 and then also at the sale you get your principal investment returned. So in effect, what you've done now, you see, there's no taxes taken out in this example. But you will want to understand, depending on how you're holding this investment, you know, if you have it in an llc, if you have it in your ira, if you have it in your trust, you'll want to understand how you get this income and then how it's taxed. But ignoring that, for this example, what you will have received from this investment is $40,000 in cash throughout those five years, $60,000 at the exit, your principal return of $100,000 at the exit. If you add that all up, your 100,000 turned into 200,000 again, not taking into account tax. So what that is is on the previous page it said an annualized return of 20%. So this is an example of how someone would arrive at an annualized return of 20%. Because you've turned your 100k into 200k, that's 100% return over five years. So 100% divided by five is 20% annualized. It doesn't mean that you get 20% per year. That's what the cash on cash was telling you. But it does mean that if you're looking for a long term hold and the highest annualized return, this could be a good, a good type of investment for you. So that's a piece of your due diligence is making sure you understand the terminology when you're looking for passive investments and investing with a group. And then there's also taking a look at the group and the market and then the actual property. So a lot of times yes, Kevin, exactly. An equity multiple of two and yes, the replay will go out. And so a lot of times people look at those numbers and then they make a decision on those numbers. You need to go back and do really solid due diligence on the team. So whether they're the sponsors, the property managers, the extended team, all these people involved can make or break a business plan. So you want to make sure the business plan is good, but you want to make sure the people involved can execute on it, that they're cohesive group, that they're not going to get into situations where they're, you know, having lawsuits against each other or people are having lawsuits on them. You know, you don't want to be involved with people like that. So there's a lot of great ways you can do diligence on these people. And you know, there's Google, there's something called Veravest, which Sigo Capital is on there, which is a site for passive investors. And what they do is they, the verivest, they do due diligence on people and then say, hey, we went, we did background check, we did criminal check, we did fraud check, we did bankruptcy check, Better Business Bureau check on, you know, all the people involved with Sugo Capital. And they put it up in there and give it a stamp and say it's verified. So that's a really great resource for you so you don't have to go do all that yourself. But there's lots of ways to do due Diligence. Super important to choose the team over everything else. Cynthia, can you put verivest in the, in the, in the chat please? Some people were asking for that. So next you want to make sure you choose a good market. So this is no matter what type of real estate you're investing in, don't choose it because it's pretty. Don't choose it because it looks like a place you would live. You want to choose a market that supports your type of investment. So for instance, California. I don't invest in California. A lot of properties have great appreciation, no cash flow or negative cash flow. And I don't invest for negative cash flow. Lots of people do. It baffles me. Lots of people do. But the rent is lower than the mortgage in a lot of parts of California. People still park their money here because they're banking for long term appreciation. So you want to look at the market trends, the population, job announcement, job growth, vacancy rates, market rents and all that kind of stuff before you start looking at individual properties to make sure that it's a good market for the type of asset class you want to go into. Based on that first slide that I did and that it's a really strong, solid market for the amount of time you want to be in your investment. So if you're doing a fix and flip, okay, you're 612 months, you're in and out. It's easier to predict where the market's going to be in six to 12 months. If you're looking to do a buy and hold for 10 years, you really want to do some solid analysis of what kind of jobs and companies are coming to this area. Market research is super, super important as well. And then lastly, you would want to do due diligence on the actual property, on the actual passive investment fund or syndication that you're looking to get into. And normally people do that first. And I want to make it really clear that should be last. It's people market and property is how you should be doing your due diligence, whether you're an active or a passive investor. And then I want to add that, oh, here is the really detailed that we don't have time for. So I'm going to skip through and go to the slide where I offer some time with you guys. So if you, you know, saw some stuff today and you want to go into it some more. Cynthia, if you could put in the chat the link to the four point strategy, call with me. I've done this call with, I don't know now 650 investors. And so I want to invite all of you, most of my folks who are here, we've already gone through this call. But if you're, you know, new to me, you've been invited here by Dawn. I want to offer this for you. Guys, guys, there's no charge for it. I love doing this. But what we do, it's a four point strategy call and so you can click in the chat and you can find some time on my calendar. And what we do is we get really clear on four things for you, and it's based on a lot of what you saw today. So the first thing we do is we get really clear on what type of investing is right for you. So what's right for me, what's right for my mom, what's right for dawn is not necessarily what's right for you. But since I've studied over 15 types of real estate investing, I can make suggestions based on that first chart of what I think would be great for you. Your lifestyle, your vision, your goals. And then we talk about where you can find the money to invest. So lots of times people think, oh, I just have to have cash in the bank. Well, you can use retirement accounts, IRAs, 401ks in order to invest. When does it make sense to. When does it not make sense? Sense too? And how do you turn debt into an asset? So a lot of people are active investors and they want to transition into being a passive investor. And so I've helped hundreds of investors do this and, you know, whether you want to free up more time, more capital, there's lots of strategies I've seen and we can see what might be right for you. We'll also do some financial modeling, the type of investment you'd be able to generate. So a lot of people have assets and I ask what is the cash flow, what is the roi? And they don't know. And so we'll calculate that really quickly and compare it to some other things you might be able to do with that money, with those funds, with that equity that you have built up to see if we can get you higher returns or more appropriate returns. Higher is not always better. When to make sure it's right for you, Right? And then we'll talk about next steps to implement your plan. So like I said, Sugo Capital, we connect investors to, to passive income opportunities. So if we've gone through this and it seems right for you, I'll connect you to opportunities, show you the income you can generate, or if something else is good, for you. I'll connect you to someone else who might have that type of investment for you. And again, there's no fees. I don't have affiliate fees for any of this, so just want to throw it out there. This is something I love doing. It's my way to give back and help people move forward. And if anyone has gone through the four point strategy, call with me and you want to put anything in the chat about it, feel free to do so. And with that, I'm going to stop sharing and say let's open it up for questions and I'm fine to stay on for like 10 more minutes. How about you, Don?

I'm great. I'm happy to stay on. I've just been answering questions that were typed in and I don't know if I've got to all of them, but we've got quite a few series LLCs and jurisdiction and, and S. Corps versus LLCs or. I don't know if I haven't answered your question correctly. What do we charge for our service or our registration to attend the class is free. We used to. This used to be a $3,000 class. Let me be clear, it's not a just a little freebie sales job. It's really, there's a tremendous amount of bulk in this. If you're a cpa, if you're an attorney, you would get continuing education credit. But it wasn't designed for them. It was designed for the average investor, the average business person. But now with zoom, we can open this up to a thousand people, two thousand people at a time. And there's no, we're not traveling, we're not paying for hotels. It opens up the world to, to us. And so we can do what we do. And we're an education company. This is what we do. We, we think every business owner, every investor ought to attend this class. It's that good and so much information. And so we invite you to attend it. It doesn't cost anything. You just go to protect wealth.com forward slash sugar. Yep. And. And sign up for the class.

Perfect. All right. I see some more questions in your syndication, Sarah. Are your distributions a return on investment or of investment? Is the return on investment. That is a great question though, because some people do a return of investment. So. And they're going to be taxed different ways. So make sure that whatever is best for you, that you find an investment, that, that does it that way. Ours is return on investment. We return your principal at the end, at the sale. All right, Jag at What stage in the investor journey does it make sense to put these structures in place, eg, a family trust? How many properties does one need?

Oh, such a good question. And anytime. Okay, every state, and I keep with me, every state has a state minimum. Like in some states, it's $5,000. If your total estate is under $5,000 and you don't own real estate. We don't, we don't want to deal with probate. Just figure it out among the kids. And unless there's a fight, some of the states, like California. Okay, Sarah, you live in California. Your state minimum threshold for probate is $168,000. So if you've got a smaller estate under 168,000 or if you own real estate, if you own real estate, you're going to go through probate. So we look at the state minimums. Some of them will be around 40, $50,000 if your state is under that. But once you get over that, then we start looking at a trust to. And, and picture this. Most of you have a big popcorn Tupperware bowl, right? You know, you never put it in the cabinet empty. You always put all the little Tupperware bowls inside of it, right? And then you put lid on, put it away. That's like your trust. Picture that as your big popcorn Tupperware or. Yes, I own a home, okay? But I retitle that in the name of the trust. Yes, I own an interest in a corporation, but upon my death, I want all my rights and interest to go to the trust and it avoids probate. So. So at what point do you have a trust? There are certain things, like I've got all my money in an ira. Well, there's a beneficiary that is a trust. We don't call it a trust, but we can avoid probate by simply naming the right beneficiary. Life insurance doesn't have to tie into a trust. But when do I need a trust? Number one, whenever I have real estate or whenever I surpass the minimum state, you know, shortcut for probate. Whenever. If you passed away right now, would you. Would you leave your kids in a mess? That's the determining factor for me. And if the answer is yes, a trust is in order.

Yeah. And Don, I want to give some examples. I've had quite a few investors who've passed away. I mean, we have hundreds of investors, so it's inevitable to happen. They luckily have all had their investments in the name of their trust, so we didn't have to do anything. And Their beneficiaries didn't have to do anything. Their trustees contacted us and said Sarah, what should we do? I talked, I contacted my attorney. Nothing. We don't need to do anything because everything was in order and it was in the trust, it stayed in the trust. So payments went back into the bank account associated with the trust when we exited. You know, it was very clean. And, and so that's why I love making sure people understand when they should be using trust because it, it just makes it so graceful should it need to be used which at one point in time you know we're all going to pass on. So it's, it's important to think about. Exactly. Like you said, are you leaving them in or something? Really smooth and easy.

Yeah. And, and a lot of times that's exactly what we do. And, and a lot of these concepts are very, very, very simple. But attorneys tend to complicate it. Whether that's self serving of them or not, I don't know. Oh, that's too, I'll just take care of it for you. And so they don't explain things. What we're really good at is taking very simple concepts. Income taxes is not that complicated if you understand the basic fundamentals. Estate planning, once you understand that what's the difference between a net LLC and a limited partnership and what state to incorporate? Once you understand the basics you go oh well that makes sense. That's the, I think the value of our class more than anything else is because we explain it in non legalized terms. The average people can go oh well obviously I need an S corporation instead of an LLC or whatever. That's what we do best.

I think I see a question from Kathy. Kathy, she opened a trust and she just started in passive investing. Should I go back and change them into the name of the trust rather than individually or as a spouse? Kathy, you might not be able to. It's good you have it so you can make choices going forward. But depending on the passive investment, sometimes you can't change ownership. So I guess check with the general partner on the investment. But lots of times you can't change ownership.

If it's a bank account like a household check. Checking account, yes. You go down to the bank and say here's a copy of the trust or here's a certificate of trust. It's, it's like a one page document that gives them all the information that they need. It's a Cliff Note version of your trust. That's all they need. They, I don't want to Give my, my copy of the trust to the bank. So if I'm just transferring a household checking account into the name of my trust, that little certificate of trust. Here's a Cliff note version banker. I want you to transfer the name to my trust now on your checkbook. When you have a checkbook, it's not going to my checkbook. Doesn't say my trust. See Donna Tam Pendleton right there. If I can open the. Right there, Donna. But the bank account or the bank statement says Donna Tam Pendleton, comma, trustees of the Pendleton family Trust. The checks don't say that. How do you know that the property's been moved into the trust? Look at the property tax notice. And so funding the trust and putting assets in is not a difficult thing. I'll spend a lot of time with you when we get to the summit on that.

Yeah. And if to be a little clearer. So if you were saying like passive investing, if you invested in syndication and.

You want to change, that would be different. Then you got to go back to Sarah and. But a regular household checking account, you can do that. That's different. All right, so many questions.

Yeah. Okay, here's one for you from Kristen. If a person owns rental homes in different states, can they be consolidated into an LLC and Wyoming and put into a trust in Georgia?

Yes. What we do. Okay, I've got a property in Georgia. I'm going to ignore my, my phone call here and turn the volume down a little bit. There we go. Okay, let's say I've got property in Georgia. I would want that owned by a Georgia single member LLC so that I have standing in the state of Georgia. I can enforce contracts, I can evict tenants, I can defend myself in court. But who owns that? Well, I could, that I could move that to a Wyoming holding company where I've got anonymity. Now I own a property in Tennessee. Tennessee single member llc. So I've got standing in that state. I'm by abiding all the laws of Tennessee. But who owns that? Not you. Tennessee doesn't offer charging or protection for single member LLCs, but Wyoming does. So that comes down here. We can own all of these, all of our individual properties IN Single Member LLCs in the state where they're at. But everything is owned by this Wyoming holding company. And the beautiful thing about that is the individual states. I've got corporate veil protection, which means it contains the risk it does. It's not going to topple one estate. It separates the asset assets from each other. But each one of Those are disregarded entities by the IRS. So there's no tax return. So I can have 20 properties and everything comes down to my Wyoming holding company. One tax return for as many properties as you want. And that, by the way, doesn't own any unsafe assets that. That. That LLC in Wyoming could also own all my rights and interests in syndications. It could own all my brokerage accounts and cash accounts because there's no unsafe assets inside of that. So to answer your question, we rely on the state jurisdiction, but then we bring things. Sometimes we'll bring them to Wyoming for stronger asset protection and consolidation. You're right. Okay, what else, Sarah?

I don't know. I think we're doing good.

I think we're running out of time, but I'll answer questions as long as you want.

All right, so I think we can have one more question and I just want to say, Cynthia, I got a message that there were no more times in the four point strategy call if you could open it up for another two weeks. Because I'm traveling that in November. So if you open it for one more week, then there'll be some space for people.

Okay, Sarah, let me ask you a question. What's your minimum investment to be involved?

Usually 100,000.

Okay. And you don't need to be an accredited investor or you do?

Well, some are for accredited investors and some are for non accredited.

So if we've got that and these are secured, these investments are secured by the equity in the property and by the. And by Sugo.

Yes.

So they're safe investments with guaranteed returns. I like what you're doing. I really, really like what you're doing.

I do want to say a caveat, that no returns are guaranteed, but we do have preferred returns, which is the closest thing to a guarantee in the investment space.

You got it? Got it. Okay.

My attorney taught me well to make sure I say perfect, but. Yeah. Okay. So thank you for that, Don. Yes. Let's do this. One other question. Revocable versus irrevocable.

Oh, such a good question. Okay. We can always take revocable, which means I can amend it, I can change it, I can revoke it. I can move assets in and out, in and out, in and out all day. As a result of that, it's a really great estate planning tool because life changes and kids get divorced and people die and. Okay. People make stupid decisions and life changes. Okay, so we like revocable for most things. There are certain assets. When you're doing an irrevocable trust and you add the asset to it, you contribute the asset. You're pouring wet concrete. And this is not going to change. Change. And so for some things like life insurance, this is irrevocably going to my wife and kids. Nothing's going to change that. Great. Okay, so sometimes we'll use an irrevocable trust for, like, the family cabin. This irrevocably is going to go to my kids and grandkids, and nothing's going to change that. I put the family cabin in a little money to sustain it. And, and so, so most of the time when we're, when we're doing estate planning, we like the flexibility of revocable living trusts, and there's a layer of asset protection corporations that will protect it. But the trust, we want it to be flexible and fluid. And again, too many things in life change. So anyway, that's my take on that.

I hope that helped whoever was asking that question, but I get that question a lot. So I think, you know, you answered the question for a lot of people there. So appreciate that. All right, well, I think it's a great time to wrap up. And everyone, the email is going to go out. What's today? It'll go out tomorrow morning. It'll have links to be in contact with Don, his company, Protect wealth, his event. It'll have links to be in contact with me. We're here for you guys. We love to educate, we love to help. So whatever we can do, be in touch with us, watch the replay, share it with anyone that you think might find this valuable. And Don, I want to say thank you so much because, you know, we can teach people how to make smart investments with, you know, how we teach due diligence, etc. But like we always say, right, you need to protect it.

You.

You need to protect whether you're passive or active. And you know, how you structure your trust for your family. So I appreciate what you guys do over at Protect wealth, and thanks for partnering on this event.

Well, and we appreciate you because of your high value in education and taking good care of our students and educating them. And sometimes a particular investment is not right for this person, but you're honest enough and you're clear enough and concise enough to be able to say, look, this works for us. This doesn't. But I love your investment. Investment or your education components of what you're doing.

Yeah. Thank you. Yeah, I turn people away all the time. If it's not right, I'll say, don't invest with me.

Good.

Definitely. All right, well, thanks again, Don. And thank you, audience, for sticking with us for so long. We're looking forward to getting to know each and one of you. Thank you. Have a good one.

All right.