Protecting Your Real Estate Empire with Aaron Young

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This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property. For panties on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close nodes, Scott Carson. Hey, real estate ministers. My name is Scott Carx. I'm known across the country as the note guy. And as somebody who's been a real estate investor living in the Lone Star state for over 20 years now, I often get questions from people looking to invest in Texas, whether they live here in Texas or they live outside of the Lone Star state. Where do we find our distressed leads? Where do we find our foreclosure list? And the number one source is Roddy's list. This list has been around for 20 plus years. George Roddy over here, Smiling Face is a friend and his source for foreclosures on residential or commercial properties, the sheriff's list. The struck off list is second to none because it's just focused on Texas. And if you're looking for Texas deals, which is the fastest state to foreclose in, then you definitely want to check out Roddy's list. You can go to Foreclosure listing service is what it's known for. Flsonline.com if you use the code we close notes. That's right, we close notes. It'll get you $20 off your order. Whether you're ordering a foreclosure list in Dallas county or Harris county or Travis county or Bexar county, whatever county you're looking in, or whatever source list you're trying to buy from them, that'll get you $20 off of the price. Can't beat that. It's a great resource. We use it all the time to find distressed notes, banks with bad debt, private investors who are foreclosing, private individuals who are foreclosing on assets and also potential REOs for us to purchase or our students to buy. So make sure you check it out@flsonline.com that's flsonline.com or foreclosure.info as well. But make sure you tell them at ScottCentra use a discount code. Once again, we close notes to get your $20 off. Hey, good morning, good afternoon and good evening, everybody. Welcome this episode of the Note Closure show. As always, excited to have you today and we've got a very special guest. And whether you're watching this new or you're watching this as a replay. This may be one of the most important episodes that you ever watch especially if you're going to be in business. If you're going to be a real estate investor, unless you're just going to play Monopoly all day long and not buy anything and go around the world and just collect your $200 and try to survive on that, we know that's not going to work. But we as note investors, you're in the business of real estate. Even if you're an entrepreneur doing something else, you've got to make sure that your assets are protected and a lot of things you need to have a cya, a cover your assets aspect to what you're doing because it's, you know, any type of business is not if you're ever going to get sued by a disjointed employee investor thing like that, it's when you're going to get sued and what happens when the shit hits the fan can be kind of a stressful thing. But we are honored to have my good buddy, friend, confident brother from another mother, Mr. Aaron Scott Young joining us here. Now if you don't know who Aaron and he is the CEO of Laughlin and Associates, one of the many things that he does and Laughlin is one of the longest running companies out there. Over 50 years of creating LLCs. Original founder I don't take anything from Aaron but really created the valuable, the Las Vegas LLC out there for you guys looking for protection. So one of the most impactful things you can do is protect your business, protect your assets and create a great foundation to help you go forward. And that's what Aaron is here today to talk about this stuff, some of the ways to protect yourself and why you need to take note and make this a very must watch through from start to finish episode for you, not for me, not for Aaron, but for you and your future business self. So Aaron, what's going on buddy? Glad to have you here today.

It's always good to be with you. Scott. Thanks for having me back on. It's been a little while and I'm really glad to be back because you, you bring so much value to your community and I've, I've been around your, your people, your tribe for years and years now. I mean my goodness, I think we've.

Known each other over 15 years now that I think about it.

I like it. Yeah. Yeah. It's been, I was, I was a young man when I met you and.

You and I are both younger men when we met each other.

It was pre grandchildren. And this summer we will welcome grandchild grandchildren number nine and number ten. So congratulations. It's been a while that we've been together and I'm always delighted to be associated with, with you and, and, and what you're doing here. We have so many people that we've met over the years who've benefited from what they've learned from you. So anyway, great to be here.

Well, vice versa here. I mean, we've got a lot of clients have understood. I mean there's a lot of ways to structure your business and a lot of people have a tendency to do it on the cheap and they end up messing up when something happens, go south. But anyway, we'll get more of that later on. But yeah, we've known each other for a while. We've worked, our businesses work well. We refer a lot of clients to you. We've met a lot of clients at your different events, stuff like that. Our students, I think about 97% of our coaching students are clients. And then we have another one from this past weekend who's working with you to help them with some stuff. But let's, let's dive into this. I mean, unless you, I don't know if you got a presentation. We just talk about this, you know, when people are starting in business or a new business, like a lot of our clients are coming out of the workforce and starting investing part time. What are some of the biggest mistakes that you and your team over at Laughlin see people make or fail to take action on so that they're protected in the long run?

Yeah, that's a, what a perfect place to start. So, yeah, no, I didn't bring a presentation. This is just, we can just have a conversation. So the, the, the biggest there. Okay, let me pontificate for a moment. One of the biggest mistakes, maybe the fundamentally biggest mistake is not thinking in advance about what they're hoping to achieve by investing in notes, by getting into the real estate game, by leaving their W2 job or augmenting their W2 job with something that's more entrepreneurial or more, you know, side hustle or whatever they want to think it is. And I loved what you said in the introduction. If you get into the real estate business and you're buying assets with the idea of either selling them, you know, flipping them for more money or cash flowing from them, or whether that cash flow would be a buy and hold.

Or foreclosing, that's one of the major things we see.

Foreclosing. Yeah. If that's in business. And now you're interacting with the public. And so I think there's. When people think about being a business owner, a lot of times they think about having an office and having employees and so on. But a business is any way that we're buying and selling something with somebody else. Now we're in business, we're doing a deal. And whether it's somebody's very first note or their 150th note or thousandth note there, as soon as you start this, there are some things that you want to do in order to get a couple of benefits. One is the tax benefits that come along with becoming a business. You can even lose money three out of five years, you know, and still be able to be taking some deductions. You can't, you know, just a little hobby may not get it for you. But when you're buying a piece of real estate, buying somebody's deed, you know, buying the note on that property, I mean that's it that you're really in business now. That's a real legitimate asset. Way bigger than just your simple little I think I'll open an Etsy store, right? No offense to the Etsy store people. So the first thing is you get some tax opportunities if you do things right. And then you also get protection. And the biggest protection is the separation of your personal stuff from this business activity. Because a lot of people say, well, I don't have that much value in my business, why do I need to do anything? And I'm saying, well, do you have any value at home? Do you have equity in your house? Do you own your cars? Do you have a savings account? Do you have retirement? Like, because that stuff could be quickly put into jeopardy by one screw up on your, you know, your beginning efforts to get into business. And so you don't need to be afraid of this stuff. You just have to be aware that there are some rules of the game that you need to follow. So when you say where do they, where's the big mistake? The big first mistake is going, okay, well, or not saying, what am I doing this for? What is my goal in getting involved with buying non performing notes in this case? Right? What's my goal? What, how do I know if I'm successful in this? What's. How am I going to be able to demonstrate success? Okay, so in order to demonstrate the success, what's going to be the best way to be in the real estate asset business? Well, probably going to be LLC is not C. Corporations, right? Okay. So I'm going to, I'm going to need LLC. So what are the rules in LLCs? Because if I'm in, if I'm investing in California versus in Tennessee versus in New York State, there may be different rules from state to state. Can I hold them all in one llc? Do I have to have an LLC in that other jurisdiction? These are just things you need to know about and then follow the rules. Oh, I've got a bunch of LLCs now, and some of them are starting to have equity. Like there's, there's a few hundred thousand dollars now in my little portfolio. Well, maybe I now want to create another level of separation. And now you put a management company or holding company in between. And maybe I'm now, now I maybe need to use Nevada or Wyoming. You know, you start to get more complexities, you start getting more value. And for the few hundred dollars you spend to set it up, you're protecting tens or hundreds of thousands or even millions of dollars. We have tons of clients who have millions of dollars of real estate assets that they own. And I mean, they have equity. I don't mean the market value, I mean equity. Their part, their value. So what we want to do is begin with the end in mind. Know what, what are we striving to accomplish? What are the tools that we need to accomplish it? Because here's the deal to everybody that's listening. If I say, look, I'm, I'm going to get into the, I'm going to get into the gravel delivery business, and I, I don't have much money right now, so I'm just going to use what, you know, what's the simplest thing, which is my minivan. So I'm just going to go in there and like, with a shovel, load up the back of my minivan with whatever gravel I can get in the back and then drive it over there and I can't dump it, so I'm gonna have to take it out and put it in a wheelbarrow and struggle through the mud. And, you know, so you can do it in sort of a stupid, inefficient way, or you can do it in a logical, intentional. And what will end up being a lot less expensive way by just getting clear on what is it you're hoping to accomplish, and then just getting the right tools in place so that you get the best tax treatment and the greatest level of asset protection. And that might have seemed like a lot of words to answer a simple question, but I really want to impress upon whomever may be listening to me right now that there's a, there's an old cowboy saying and you guys don't know me and I'm sitting here at my beach house right now talking to you, but I'm a, I'm a, I'm a horseman and we breed horses and sell horses and we've been doing this for many years. And amongst cowboy logic it says good saddles ain't cheap and cheap saddles ain't good. True, true.

Words never spoken.

Get the right tool for what you need because it will end up bend. And they say why? Why is that cheap saddle not good? Well, because if you go on a long ride, you're going to be uncomfortable and your horse is going to get uncomfortable or hurt by a bad saddle. Likewise in business, using the right tools for the job will make the whole job easier and get you the, the right result versus using the wrong tool. Or my brother in law did this, so I just do what they did. Or I watched some YouTube short where somebody said if I set up a, an S corp I could quickly get $250,000 of, of business credit without any personal guarantees. There's all this, these lies going on in the world and we don't want that. We want to get people exactly what they need, no more, no less. So they can do the right job, get the tax benefit, get the asset protection and then have the easiest path forward to focus on buying assets and not focus on fixing mistakes down the road.

You, you also are very well known other besides cowboy logic of saying something, if I remember correctly, where the corporation is not me and I'm not the corporation, or I'm not the corporation, I'm.

Yeah, I'm not the corporation. The corporation's not me. We're separate. It's a separate paper person from you and one of the big mistakes people make. So let's say you go, okay, I know I need an LLC to start doing my note buying. So you go to some service, you come to Laughlin, you do it yourself online, whatever, but then what do you do? You say oh I got it, I have it. At that point, unless you do certain legal obligations, some legal requirements, and if you don't do them, and most people that, that don't use professional services, don't get this done. If you don't have an initial meeting, if you don't have a board meeting, if you don't pass some resolutions, if you don't have an operating agreement, if you don't distribute stock, if you don't Write who got the stock in the stock ledger in your corporate minute book if you don't do these things, and then have regular board meetings at least once a quarter. If you don't do that stuff, if you're ever examined in a, in an audit or in a lawsuit, the, the, your adversary, you know, that auditor or that, that lawyer that's coming after you, they'll look at your corporate minute book and they'll go, oh, you never did any of the stuff that was required to be done. So this company isn't real. You really paid the state for it, but it doesn't give you any of the value, any of the tax benefits, gives you zero asset protection because you didn't follow the rules. And unfortunately, at least amongst the people I come in contact with, and Scott, you know, I come in contact with a lot of people. I speak often, I have a lot of clients. I'm involved in some of the highest level mastermind groups in the country. I mean, I'm involved with business owners all the time. And I would make an argument that maybe 95% of the, of the privately held, no board of directors looking over your shoulder, you know, a third party. So if you have a company, you're probably the one and only member of the board, right? Because somebody has to be, right? So, but I'm talking about where you have oversight from outsiders, investors wanting to see stuff. If it's just you, which is almost all of the 23 million companies out there, if it's just you, the odds are you're not holding board meetings. Okay, well, that makes sense because why would you hold a meeting with yourself for a company you own 100% of and that it's all your money, you're the only one at risk. Why would you hold a board meeting? How stupid is that? How schizophrenic is to have a meeting with yourself? And yet the answer is, why would you do it? Because it's the law. Because the law says you must do it in order for, for you, the person to be separate from it, the business. So if I'm not the corporation, the corporation is not me. The only thing that proves that is the, the documentation and the, and the repetitive meetings, you know, this, this sort of demonstration that I am consistently trying to show that it is separate from my personal stuff. That way I can get the tax benefits of it. That way, if there is a problem, like the business fails, it can die without it taking my personal estate with it and so on. So, yeah, I mean, people, this, this idea Of I'm not the corporation, the corporation is not me or I'm not the llc. The LLC is not me is one that if more small business owners would think about and acknowledge and then go, oh, okay, I know that this money that is sitting here in my cash register belongs to the business, not to me versus me. Just saying, oh, I can take all the cash and stick it in my pocket because it's my business. If you're a sole proprietor, you don't have a corporation or llc, it's just you, then you can do that. You and your business are one and the same. And if you have a problem at the business, all of your stuff is at risk. But if you've created a corporation or LLC and you're following the rules, then problems over there don't affect home or problems at home, like a divorce, like an accident, like medical bills, like, like I said next, like car accidents or something. Those things can't come over and bleed over onto the business. The business can keep going. Even if you lose all your personal stuff, you can still have an operating cash flowing business. So if you want that, you know, kind of belt and suspenders protection, if you don't know if people these days use suspenders, unless you're kind of a. What do they call them? I can't think of it. The guys that have the cool mustaches and the, what do they call those guys that are live in town. These. What am I trying to say? The guys that live in town but wear Carhartt jackets all the times and heavy.

Yeah, yeah, I know you're talking, I.

Think of the expression right now. But anyway though, if you, if you want the double protection, if you want to build an empire where there's real wealth, you use corporate structures, LLCs, C Corps, S Corps foundations, you know, limited partnerships, trusts. You use all these pieces to. Because they're the right tools. Why do you need all these tools? Well, if, if you go to take your car in to get fixed or your truck, you know, because you drive a truck. I think Scott.

Yep.

If you go in there and the mechanic only has one tool, all they have is a hammer. That's it. Well, do you think they're going to do a very, a very excellent job on repairing your transmission with just beating it with a hammer? No, they have that huge giant snap on thing with 9000 tools in it. Right. And then a bunch of other pieces up on the wall. Because you want to have the exact right tool to give you the exact right result. We can do that as Your business gets bigger and stronger and more valuable. Or as you have multiple projects going at one time. But it takes understanding what the tools are, how to use them, when to use them and what. And understand why you would want to use it in the first place. So anyway, shorten these up.

No, no, these are, these are great because it tells the story. Let's, let's, let's define it a little bit better. Going back to our gravel truck example.

Good. Let's go.

So, yeah, most people, they start to gravel, you know, they're going to gravel truck. They use their own car, this case minivan, where it's not very effective, but they're driving down the road. If they hit something.

Yep.

They're going to be just say sued somebody sues them, their personal assets, their house, the, the caravan or whatever they're shoveling the, the gravel into that can get taken away.

Sure.

And then now they get some. They make a little bit of money and they start a company. They go hire a better truck, a gravel truck, better tools to do that. And that same gravel truck, though, let's say a rock flies out of it, hits somebody in a car. That truck can still, I mean, that llc, that company can still get sued. If somebody runs, it can hit suit. But it's separate because that is a. The LLC is the new baby. It's the new entity. And as everything is recorded properly and monthly reports and all that stuff, the board meetings for the baby and its.

Resolutions, everything that goes into proving it's not you.

Yep. Is keeps it separate. So if something happens, it happens. LLC doesn't happen to the person that owns the company as long as they've done the right things. In a lot of cases, too, a lot of these companies will have separate LLCs for different trucks, right?

Oh, yeah. Oh, yeah. It's, that's, that's a big thing that people don't realize is that. Well. Or you can even go further. Well, let me stick to that point because all of a sudden my. I go off on a rabbit trail. Yeah. There. Most people don't realize if they go up snow skiing that the chairlift almost. In almost every case, individual chairlifts are, are owned in different corporations. And the reason is, is because that corporation can have insurance and if something goes wrong, somebody falls out of the chairlift, somebody. The chairlift stops and they get hypothermia. Sitting up there in the cold, the, you know, the wire breaks and the chairs fall. Some horrible thing happens. You don't lose the whole ski resort. You just Lose the value of that chairlift and of the insurance. And so, yes, if you had a whole bunch of heavy machinery like dump trucks. Yes. Not only would you not own them in your name, you don't own them in the name of a company. You may use multiple companies, depending on how much risk and how much value there was, how much can you afford to lose? That's how much value you want to get into any one entity. And when you go, oh, the, my tolerance for risk is met now, then you open a second one. I've got, you know, this much money in this, in this stock account. I think I better open a second account at a different brokerage. And on that. Or crypto is a great example of that right now where some of these exchanges, you know, we've seen a couple of them fail, and then your value just disappears. So you diversify and you don't keep all your eggs in one basket. And for those of you who don't know what that means, people used to have chickens and eggs, and the eggs were valuable and they had them in a basket. So you don't want to keep all the eggs in one basket because if you trip and it falls, you lose all your stuff. If you have two baskets, I mean, we use these expressions, chomping at the bit. That's a horse reference, right?

Yep.

I'm excited. Hold your horses. Rein them in.

All horses.

But people go, what does that exactly mean? Is that R A I n rain? It is.

No R, E, I, G, H. Yeah, exactly.

You need to understand what you're doing. And, and these old, these old sayings still are valuable. Don't keep all your eggs in one vest. Don't keep all your value in one company because you, you will have problems. I remember hearing from the CFO of Intel Corporation that that guy was over several thousand entities that held a contract, a patent, you know, some, some assembly line, some, some little piece that all went into making that chip. Right. They didn't keep it all in Intel Corporation. It was all.

When we see that, all the time happening here in the note business where different funds, different banks will sell notes or assets off of one weird fund. I mean, we were just looking at the foreclosure list earlier today, and all these companies have different series or different fund number one, 234-567 or number 123-4566 depend on what the assets are held into it because it's the same kind of thing. It's like we, if you own a portfolio, rentals, and they're all in your personal name. And you have the contractor fall off, he's coming after you individually. If it's in an llc or you have two, two homes in an LLC and they fall, they can only come after that LLC that holds the two houses, not your personal residence or your whole, as long as it's set up properly with the correct entities.

Yeah, that's right. Exactly. Right.

Now, one of the things too is that people think that they, hey, they go and get an llc, they get an A. And where do you know they're not going out and documenting this stuff? How difficult is it for people to document this stuff, Aaron? Is there a company that does that for people?

Funny you should ask, Scott.

That's right. Softball. Softball.

But thanks for that lob. Well, sure. First of all, people have been doing board meetings and keeping minutes, you know, what's being discussed, passing resolutions, what's been decided, issuing stock. This has been going on for hundreds of years. Okay. The first corporations were set up over 500 years ago, and the rules have not dramatically changed. And most, I mean, what we use is basically under British common law. So most, with the exception of France, I mean, most European countries, certainly the United States of America, all the British Commonwealth countries are all. We're all using British common law. You know, there's, there's an exception. Louisiana. Still uses a lot of French or Napoleonic law. Right. They still use a lot of the French rules. But here's the bottom line is mostly this stuff is all well known how to do it. The deal is most entrepreneurs, one, if you have a brain for being an investor, risk taker, maverick, you know, entrepreneur, you probably don't really like to do paperwork. You probably like to be dreaming of what you're working on, going out and figuring out how to get it done, fulfilling on that, selling on it, getting a bid check, going to Tahiti or going, you know, wherever you like to go, go, go horseback riding or water skiing or whatever you love to do. The idea of sitting around going, I like to call this meeting to order. Let's review the meeting minutes of the last meeting. Okay. Let's go ahead and prove those. All right. You know, people just don't do that. And the vast majority, vast majority of business entities in this country are one or two owners, you know, and it's usually me or me and my spouse, me and my kid, me and my buddy. Right. That's pretty much what they are. And in those situations, which is the vast majority of small businesses, they. They neither have any knowledge of experience with or Inclination toward doing corporate formalities, doing the paperwork. And so we noticed that 20 some years ago and went out and got some legal opinions about, well, what can we do as non lawyers to help our clients meet the legal obligation? And we got a couple of legal opinions around that and we started offering a service that we call the corporate veil. Right. The corporate veil is what keeps, is what separates your personal stuff from your business stuff. Corporate veil. And the corporate veil is the documents that we were just talking about. So we set up something called the corporate veil protection service, which is a done for you service. So we talk to our, our clients every month or every other month, depending on what they want, and sort of interview stuff out of them that they'd been doing, create the appropriate documents, send it back to them to sign, and put in their corporate minute book so that they're always up to date. It's very inexpensive, it's very easy. If you can give us 10 minutes a month, you know, odds are you're going to, you're going to be ahead of the vast majority of companies out there. And it really is super cheap. The first year is a little more expensive because we have. We usually have to go back in time and get them caught up. But on renewal, the second year is like $49 a month. The first year's closer to $80 a month, and then it drops down because we've gotten the old work done and we're just doing the new work. Well, I want people to understand this stuff is not expensive. It's very, very accessible. If you're really in business, it's almost silly. Simply expense or cheap. It's almost silly cheap. If you're just getting started, you know, you don't want to maybe add another bill, but you also maybe don't have much to protect. Decide what do you have to protect at home from this little baby business and decide, is it worth spending a thousand bucks the first year to make sure I'm all dialed in and set up right and following all the rules. And by the way, somebody else is thinking about it, not you, right? You just have to give up 10 minutes a month to talk on the phone. All right? If you have those things in place, you have a almost zero chance as long as there's no fraud. If you've been showing a consistent propensity to do this in a timely way, like the law thinks you ought to be doing it, then you're not going to have your corporate veil pierced. But if they can see that you're not taking it Seriously, what a lot of people say to me, I love this. The thing they say to me, well, we started out really well, and then we kind of slacked off. That is a lie. No offense to all the people that told me that. You didn't ever start off well, you never did anything right? You never did anything because you didn't know what to do. And I'm not picking on anybody. I've been guilty of the same thing when I was starting out. There's no shame in it that, you know, where the shame is, is not going, oh, I didn't know that. I should probably do something about that. If you don't. If you don't, once you learn what you're supposed to do, and you know what? The. It's not like a good idea. It's the law. In all 50 states, the law says you must do this or you don't get the benefits. And so now that you're learning, if you don't do it now, then shame on you. You're the one. You will know. Gosh dang it. I was listening to that show with Scott Carson, and they were talking about this, but I got busy, you know, watching something on YouTube, and I spaced it off. And now here I am losing my home. And I know people who've been through much worse than that, and they come back. I had one guy tell me the other day he lost. What did he tell me? I'm going to be conservative. I think it was more than this. But he said the number $18 million is sticking in my mind. And he said I knew what to do. I had learned it from Laughlin. I had part of the work done, and then I just never finished it. And then I got in a lawsuit, and I lost everything. And I lost $18 million, which I would not have lost in that lawsuit if I just finished setting things up the way they showed me, you know, they wanted me to do. But I got busy. He'd even paid for it. He just hadn't finished it. That's pretty heartbreaking. I didn't finish something that cost me a couple of grand to set up, and I lost $18 million. God, that's a horrible day.

That's a. That's a. That's a bad. But that's the thing is, a lot of people, when you're seeing through all the different things, we don't think a lot of times these things come to mind. But you talk about board meetings, but also, anytime you're doing a new contract or a new lease or new Vendors. There's a. Literally. But you. On previous presentation, you have a slide that goes on for about three minutes with different things that pop up that you need to be recorded.

Yeah, yeah. When I give a talk, I have that one that says, here are just the most common things you need board resolutions for. And all those yellow sticky notes go up. It's always interesting because the first the audience, they watch and then they kind of laugh like, oh, this is a joke. And then they. Then they get quiet and then they're like, huh? Like. And you can tell it's sinking in. Oh, petty cash. You need a board resolution for that. Changing CPAs, changing. Signing a lease, borrowing money. And just. And these are just the common ones. There's well over a thousand things that need a board resolution to be legally done. And I just show maybe 100 of the most common ones. Maybe. Yeah. Folks, if you're listening and it sounds like we're trying to instill fear, we're not.

No, not at all.

But it is important that you become educated on this so that you never have to feel that sickening feeling of really being at risk and having somebody threaten you or come at you with a lawsuit. And you go, I'm unprepared. Dang it. And you can't. At that point, you can't go back and fix it.

No, it's not. And you're also not going to have your local real estate attorney do this stuff for you too, or I have got an attorney they don't want to do. It's not worth their time to do it. And that's why we like bringing on Aaron and his team at lawfully because they do it at a much more affordable rate and they'll actually be very proactive in reaching out to you. Hey, what do you. What do you have this past month? What did you do this month that we need to create something, send it to you to sign and slap it in your free ring.

Yeah. Did you buy something? Did you sell something? You know, are you looking at moving? Are you. Did you change anybody? Did anybody get a pay raise? Did you know, all these little things that are. They're easy to do, but if you don't know the question to ask, if you don't know the format to create, people could say, well, I could do this with AI and you know what? You can. If you know what to document.

Yeah. And how to ask AI correctly, which is a whole different story.

And make sure that when AI goes out and spiders out there into the world and comes back with Something they come back with something that was actually works for your state. Exactly.

Anyway, now you guys do this, you know what's the best way for folks that they're interested in that? I mean everybody should be interested in it. It's one of the most valuable things you can take. Where do they go to? Lawful USA.com is the best website.

Go to lawful USA.com or I mean if they want to just call 775. I'm sure you'll put this in the, in the notes. 77588384847758838484 super easy. Just it's, this is so simple. And you know what, we even go and report to the business credit bureaus for you if you're doing this on a monthly payment instead of a one time payment and, or you can use that 800 and up there. 6480966 and the great thing that you.

Guys do as well too, you've worked with so many note investors out there that you guys, I won't say you have a turnkey but the whole team is familiar with what people are doing as note real estate investors to set things up properly. They won't over set you up with things but they will also look at, it's great to have a third pet, a third set of eyes or fourth set of eyes look at what you're doing, your assets and help you not only just with your real estate stuff, your lc, but help you really protect yourself to help you grow into that other asset protection or estate planning too. Correct?

Yeah, that's correct. Our goal and our experience is that people stay with us for a very long time. Once they start using our services they see how, how simple and straightforward and easy it is to have us deal with it. You notice that where it says Laughlin Since 1972 people we have clients. I've met clients that started with Laughlin back in the 80s. So they've been doing this with us for 40 plus years now. And they're old, they were young when they started, now they're in their old age. But the systems work. So as long as your business stays viable the odds are of you sticking with us are really quite good. And so we don't want to oversell you nor do we want to undersell you where just to collect money you don't actually get the minimum thing that you need. And so but you're talking about hundreds, not thousands of dollars. I mean unless you need Something really complicated, you know, with lots of pieces to it and lots of legal work and so on. You know, a typical, a typical sale where you have your entity, your, your minute book, your initial meeting, your corporate veil protection for a year and so on is, you know, right under a thousand dollars. And so it's a, it's a, it's kind of a no brainer. If you're going to do anything with any real value. If you're, if your company's only going to do, you know, $1,000 a year, well, you know, maybe you can take a risk if it's, but if you're gonna, if you're gonna do anything and make some money and if you're going to engage with the public and you have anything of value that you own personally, putting this, this buffer between your personal estate and your business activities is just prudent business. It's just like, I don't want to be too harsh, so I'll just say dumbbell obvious. So I know that's kind of harsh. But I mean, guys, if you say you're a business owner and you are not willing to spend a little bit of money on making sure that you actually get the value, get the legitimate value, not a free filing. Oh, we'll set you up for free because you're going to pay at least the state fees. And then you don't get a minute book, you don't get initial meeting, you don't get minutes and resolutions, you don't get stock certificates, you don't get anything that makes you real. It's. I noticed you've got a Disney shirt on. I noticed that a minute ago, Scott. It's like if I go to, to Orlando and I buy a ticket to go into the Magic Kingdom and spend, I don't know what it is now, about 115, 120 bucks.

I think it's a little higher than that. But yeah, we'll just say it then.

Let's say it's 120 for me to go to the Magic Kingdom for the day. Forget Park Hopper, right? Just go to the Magic Kingdom. If I go spend that money, which is like filing with the state, and then I turn around and I go to the beach, I go to NASA, I go back to the hotel room and take a nap and I just don't go to the park. Well, I did pay for something and I had the right to do something, but I never got the value that I paid for. Right. And that's when you go do a free filing for your company and that's all you do. What you have is you basically paid a government fee, but you got zero value from the fee. Zero. You think you have something, but you do not have anything. If you don't do the corporate formalities, you don't have a legitimate company, period. The end. That's not overstating, that's just a fact. And so go ahead.

Yeah, no, I just wanna say that's so true. You don't have anything. You have a personal thing that you're doing on the side. You have a hobby, you've got, you know, an online thing that's not a legitimate business that you can sell.

No separation from you.

Yep, yep.

People think people get lulled into this false sense of security. And I was talking to somebody recently who does over 5,000 entity formations a month and they do them for free. And I said, what's, what's your value proposition for yourself? Like, how are you getting value? And he said, oh, it's all in the upsells. So this is just a way to get a bunch of data from people. And then we can either sell the data, we can let people market to that list, or we can sell them stuff once we've kind of captured them. So there's nothing wrong with that, but just be aware that the companies that are doing that, there's nothing wrong with that. But there's more to do after you file.

And it's also more to do besides just going to like legal zoom online or going to the state Secretary, you know, secretary of state website to create an LLC in the state that you're in. And then finally you have to take the different steps to really separate yourself. As Aaron says, or likes to say, I am not the corporation. The corporation is not me. You've got to set that stuff up to start. And I had to start thinking differently too. Versus like, oh, I'm going to pull it from here. Well, no, no. There's things you don't want to do to protect yourself, especially in the long run if you plan on being in business for a long time.

Oh, if you're going to be a business for a long time, which means you're making money, right, you, your, your biggest expense of the year is going to be your taxes. So anything you can do to dramatically reduce taxes legally is better. And a biz, a properly formed business entity that is the correct business entity for the business you're in. There's a reason why there are c. Corporations, S. Corporations, LLCs, four different ways for LLCs. To be taxed, limited partnerships, trusts, a variety of trusts, triple LCs, professional corporations. The reason there's not a one size fits all is because each one of those is like the tool in the snap on toolbox. Right. And so to just go and take a guess at what to do at the Secretary of State's office or at legal zoom where you'll get no consultation is.

Asking for trouble. Asking for trouble.

You might get lucky. You might get lucky and get the right thing. The odds of you getting the right thing are well, at least one in five or six. Because if there's five or six things to choose from and you're going to pick one of them, you might get it right. There's another game like that called Russian roulette.

That's so true. But that's it. You're. You're messing with future issues that you don't know. That's why it's good to get professionals up. Yet whether that's why Lawful Associates and you guys know we don't recommend a company that we don't use or no familiarity with. This is one of the great ways for you. We've looked at other companies in the past. There's no better service out there. You can get somebody on the phone. Whether you're here in the United States or in our neighbors to the north in the 51st state, Canada, who knows? We get a lot of folks from outside the United States that want to do notes and it's a great way to talk to the folks at Lawful and they know what's going on.

They're.

They're going to steer you in the right direction, not upsell you and really help you maybe sleep a little bit better at night or help you find those opportunities. Now you've also got an amazing event besides the corporate veil protection that you guys do.

Oh, we do a lot of things, but yeah, we do the event twice a year. That one is that we want.

Yeah, that your Magnify your wealth event. Let's talk about that for a few minutes here. Because I think it's important. I think it's one of the most valuable events that people can go to, especially as entrepreneurs and business owners.

We. Yeah. So twice a year we do something called the Magnify your wealth summit. There's always at least one of them in San Diego. Sometimes we do both of them. San Diego. Sometimes we. The last one we were in Florida, but that's me when I didn't have a beard. I just noticed. And there's you look at that all right, well, anyway, Magnify youy Wealth is designed to give people the chance to not only hear about these things, but to get details, take notes. And then one of the things we do that's really cool is it magnify your wealth. You can schedule time with the speakers. So if that lawyer or accountant or like, let's say Scott Carson is there speaking, instead of just listening to the fancy speaker up on the stage, you can go out to the registration desk and say, I need to sit with Scott. I need to sit with that lawyer, that accountant, that strategist, that, you know, self directed IRA person or whatever, and, and have a private meeting where they're not talking to everybody, they're just talking to me about my situation. And by the way, another thing we do. So stop right there. Stop right there. So you see, here's Marta Herrick, who's a cpa, and here's Elizabeth Tresp, who's a lawyer. So how often have people gone to an event and they heard something really great from a lawyer and they go home and they try to explain it to their accountant or even explain it to their lawyer or their business partner. And, and they don't exactly know how to explain it. Right. And when they get asked some questions, they can't really answer it correctly because you don't have a complete answer. But at Magnify youy Wealth, we can get the CPA and the lawyer and the strategist all together. Or here's Caleb Gilliams. Here's somebody that might say, here's how we can add a whole life insurance policy to your asset protection strategy. And here's all the tax benefits Marta is going to show you about. So you get a whole picture of what you, what you want to accomplish. And you get to hear from the various professionals, none of whom work for me. They're all their own companies and they can come back and kind of, you know, let them slug it out and give you a path forward that you have all the justification legally, accounting wise, and then what other other things you may need. Jeff, SHADA helps you get loans and, and develop business credit so you're not the personal guarantor and so on. So you can get these. And this is just part of the group that'll be there speaking. You can get these folks teaching and walking you through a solution for you personally. You know, and I, it's funny for me, I'm looking at some of the people on there and the wide variety of businesses that we're looking at just in the Photographs is mindboggling to me.

Yeah, it totally is. I mean you got a ton of not only entrepreneurs, but a lot of real estate investors. You've got people that run funds. There's Sugar Capital, Sarah, I know her.

They do, they do large apartment complexes, but they also do a lot with oil and gas.

Yeah.

You know, and then you got Sterling there to the left. He buys apartment complexes, but with the goal of getting people he wants to help the community to like get better jobs and be able to. I mean he's got this whole kind of mission behind owning apartment complex. The upper left hand corner. Mark Baldes is both a high end, like they build schools and that sort of thing, big buildings. But he also owns a helicopter repair company. You know, the next guy over, Michael Gorton, is the founder of Teladoc, $34 billion company. Then you've got Marcos Jacob or there, the, the, the deed hunter helping you buy, you know, where you do non performing deeds. He does these kind of buried lost tax liens.

Yep.

And it goes on and on right through. So the group of people that you're surrounded with, both in the audience, like these are all audience people, right. And then you've got the speakers. And so the people you're surrounded by are pretty freaking amazing. Yeah. And the, and we keep it small, we keep it to 120 or less people so that there's room for the attendees to sit and meet with the, the speakers and get the answers they want. Get a lot of trouble from people saying that we should be 300, 400 people. And I say, well then you won't be able to meet with the speakers. Do you want to give that up?

No.

Nobody ever wants to give it up.

No. And this is one of the most impactful events. The next one we see on here, April 25th or 27th in San Diego. If you're watching this after this, make sure just to go to magnify your wealth.com because the new state will be up there like twice a year. East coast, west coast. You've held it in Denver for four. It's been great. You know, Orlando or Tampa, stuff like that too. Check it out. Very affordable. We're gonna go to it.

Oh yeah, it's very inexpensive. That's the other thing people say, why don't you charge more? You should charge way more for this. And I say, well, because I want the people that are just getting started to be able to come because they need a lot of this. And the, and if the people that are rich, you know, that are really successful. I've had people that I had one guy come in with a portfolio of free and clear real estate, $750 million worth of real estate that he wanted to do a 1031 on. And he was sitting in the audience. He wasn't one of the speakers, you know, and that's a legitimate guy. His pool in Kauai just won third year in a row, best cool in the western hemisphere for his, his resort there in Kauai. But I mean, these are, these are the people that you may be sitting next to in the audience. And then you might be sitting next to somebody who's got a W2 job and is has their first note that they just bought from through Scott Carson's training. And they're like, I need to really figure this out because I want to buy 150 notes this year.

Yeah, it's one of the great things we hear back from our coaching students. People gone to it. It's eye opening. They see things on a different level. The networking is great, it's a lot of educational stuff, but also you make it bite sizable and understandable. And the ability to sit down with somebody who can review your situation, your assets and where you're at. Not cookie cutter, because we're all different. We all got everything going on is one of the most valuable things there. It would cost you thousands of dollars to meet with other professionals out there, other advisors. This way you can meet with them, talk with them and they put a plan together. Sometimes minimize your plan, sometimes expand your plan depending on where you're at.

Yeah, people, you'll be surprised if you, if you have question marks. I sat in a meeting with a very well heeled husband and wife who we've had as clients for a very long time. And in the past year we had shrunken down their strategy because things had changed and they were like, okay, now we have this new thing we're going to do and they want to know how does the new thing fit into the structure that we built. So it's these things are not set it and forget it. They are dynamic. They need to be considered. And if you do that, they will serve you in the current tax strategy or current tax system. If we've, you know, I mean, Trump came in big, big tax cuts. Biden came in and started adding stuff on top and created all kinds of more debt which you can make. I mean, believe me, I benefited from the COVID government help. But now we have to pay the piper for all that money Right now you've got now, now Biden's out, now Trump's back in and you've got all these new things they're doing, they're slashing departments. And if there's one thing we've learned in, in government over the last 20 years is that the red and the blue teams like to come in and throw out what the other guys did and put in something new. Which means your corporate strategy may need to adjust to the new rule. So coming to something like magnify your wealth gives you an opportunity to hear what's the most recent information and make sure that whatever you're doing still works under the, under the new leadership. Yeah, yeah.

Whether you're buying your first note or you've got a thousand notes, thousand different things, this is a place for you to go to make sure everything is rock and roll in there for you guys. So check it out. Laughlin USA.com is for everything that Laughlin does. But if you want to register for the magnify your wealth, it's real easy. Just go to magnify your wealth.com and check back regularly on that because it's a great, great event to go to, bar none, second to none, a must attend event if you're going to be in real estate long term for sure.

Thank you, Scott. That's a huge endorsement. I really appreciate that.

No problem, no problem. Well, it has been great catching up. Thank you so much for coming on and sharing stuff. I think you've also got some other, there's a other videos on the website to learn more about LLCs and entities and stuff like that. Check it out. It's a wealth of knowledge on there. But pick up the phone, give them a phone call, talk to something at Laughlin, making sure you're set up correctly, properly and it can vary state to state a little bit too out there for you. But go take some action everybody and we'll see at the top. Thanks Aaron.

Bye bye.

Hey real estate investors, if you have ever wanted to dive into the sexy side of real estate and become a note investor, not just somebody that owner finances properties or buys and sells on terms, but somebody who's actually buying debt from lenders, mortgage bankers, hedge funds on distressed real estate on both residential and commercial properties, now is the perfect time. And guess what? We have our upcoming three day workshop here in just a few days on July 25th, 26th and 27th. That's right, that's a Friday, Saturday, Sunday. You can join me live on Zoom and our note Buying for Dummies workshop. We'll go through the Fs of how to find fund and flip non performing notes at huge discounts without having to use your own money. And we'll show you all the different ways that you can make money being a note investor. Day one is all about how we find these deals from banks, hedge funds and and how you can automate the process of connecting with these people and get tapes and listen to you over and over again. Day two is all about raising capital and marketing and we'll show you how to tap into thousands of IRA investors who are looking for deals to fund and how to communicate and how to contact them and get them to fund your deals. And day three is all about the flip the exit strategies putting deals together. We'll mix in due diligence. We'll mix in the marketing side along with the structure side. So much stuff in three days. Live on Zoom with yours truly, the Note guy, Scott Carson. Make sure you get signed up by going to Note buying for dummies.com or click on the three day workshop tab on our Workshop. Get signed up today as we're still running discounts and you too can soon become a no buyer.