WEBVTT
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00:00:43.560Hey guys, Ryan Garland here, founder and chairman of Paradigm.
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00:00:46.280Thank you very much for uh watching this uh episode.
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00:00:52.599We're gonna we're gonna call it episodes because these webinars are just becoming more and more popular and we host them all the time, once a month at least.
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00:00:55.319And as you guys know, I have some of the coolest people ever.
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00:01:11.079And I always uh I always chase down the right talent for everyone to kind of get to know who's involved and what we do and ultimately the the sophistication to help you as an investor potentially position yourself for your future and ultimately know which decisions you need to make and ultimately just know what's out there.
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00:01:20.200And so I uh I'm honored today to be uh to be uh two guest speakers, two people that I've known for a really long time, and I don't want to age us here.
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00:01:20.840Really long.
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00:01:25.079I know, sorry, but we have Karin Hall, which is the director of U Direct.
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00:01:40.920She has actually worked with a lot of our clients for uh the IRAs and self-directed IRAs, and for some of our current network, you guys know that we have a lot of our investors invest into uh and use through uh their IRAs into our funds and into our investments.
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00:01:46.200So I think it's really important because a lot of our clients don't know that you can use an IRA.
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00:01:52.359And with the big blue, beautiful bill that just was released, there's a lot of uh information that I think everybody really needs to know.
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00:01:53.640And Karin's gonna talk on that.
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00:01:56.280So, Karen, thanks for having to be me uh being with us today.
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00:01:57.320Thank you, Ryan.
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00:01:57.960Appreciate it.
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00:02:00.120And Nate, Nate is the like look.
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00:02:01.799So let me just back up with Nate.
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00:02:06.040Not only is Nate and I personal friends, we've got a chance to spend a lot of personal time together.
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00:02:11.159He came out to Mechula and he's out in Dallas now, and he's got a wonderful family.
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00:02:18.120He's kind of hell had a hell of a background, and he just is just one of the most sophisticated security attorneys in the space.
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00:02:22.759And for those of you that are in my network, you guys know I try to surround myself around the town.
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00:02:30.039And and you really want people to protect you and watch over you and make sure you disclose things properly and you're in you're in compliance.
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00:02:46.759And Nate has been just an advocate for us, he's been my biggest fan when it comes to how we operate and protecting us and making sure we're doing things right and really opening up the floodgates of knowledge too, on how we should not only solicit, but how look at the market and which way the direction, which way the world's going.
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00:02:54.360But he works with so many different operators and he sees things that do work and things that don't work, that it's really nice to kind of have him as a as a soundboard.
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00:02:56.920So, Nate, thank you very much for joining us too today.
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00:02:57.719Thank you.
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00:03:00.360And I'm actually starting to blush.
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00:03:03.159So I did say you look good again.
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00:03:06.840I did say you're a handsome man.
00:03:07.000 -->
00:03:08.520I was like, man, you look good every time I see you.
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00:03:11.000I can't believe how good looking you are all the time.
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00:03:12.759So we got to start this off.
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00:03:17.960So I just want you guys, every everyone to know that Karin Hall used to actually have a voice for radio.
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00:03:18.599Oh, yeah.
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00:03:22.280So, Karin, give us just like your best voice before we start off.
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00:03:22.920Okay.
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00:03:24.360Uh, how about this?
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00:03:28.360Smooth jazz 107.5, the oasis.
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00:03:29.640I love it.
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00:03:30.280How cool.
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00:03:31.080Thank you for that.
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00:03:33.240I actually want to listen to that later on this afternoon.
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00:03:34.840Which which radio station was that?
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00:03:45.640Oh man, that was uh the away, it was in Dallas, uh smooth jazz station, been in a few different markets, but that was when I was in my 20s, which was obviously just you know a scant moment ago.
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00:03:47.240That was just a few months ago, right?
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00:03:47.960Correct.
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00:03:48.759I love it.
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00:03:49.479Well, you know what?
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00:03:50.599Let's start, let's start with you.
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00:03:51.719I think this is really important.
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00:03:59.640The majority of our clients, again, are utilizing IRAs and and don't know they can use their IRAs and kind of how the 401k rollovers work and so forth.
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00:04:09.640So we're gonna give you the mic for a few minutes, see if we can add some value to our network and and uh kind of give us kind of an overview of what who you are, background, what you do, and then you can talk on the big, beautiful bill, please.
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00:04:10.599Oh, I'd love to.
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00:04:21.399You know, well, I mean, like we just pointed out, my initial or first career was in radio, which I did, you know, while I did other things, but 17 years I did radio and simultaneously I did other things.
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00:04:40.839I got into real estate eventually as a realtor for one year and uh but property management, managing like big little buildings and then bigger buildings, you know, and it got some of that uh behind uh behind me and then uh moved into mortgages, mortgage loan servicing, loan origination, uh, became a real estate investor.
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00:04:42.599So that was a lot of years too.
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00:04:45.879And and then I got I got out of radio quite some time ago.
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00:04:50.919And then in the Great Recession, like, ah, I can't, I can't do what I know.
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00:04:52.039I need to do something new.
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00:05:01.799And so I found a J O B like a job, and I worked for a self-directed IRA company for two years and then broke off and started Udirect IRA services in 2009.
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00:05:06.279So now we have$1.2 billion under management.
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00:05:09.560So that's that's a that's an under that's an undertaking, and congratulations.
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00:05:15.959I think before we even started this, I had told you how impressed I was about you building awareness of your platform.
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00:05:21.879And I think all of the content, which by the way, I think it's really important to just let everybody know you wrote a book.
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00:05:23.000Oh, yeah, I did.
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00:05:27.319Yeah, in fact, wait, I might actually have it right now in my hands.
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00:05:28.439I think that's really cool.
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00:05:31.560In fact, I want to read it because I think there's a lot I don't know.
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00:05:34.519I'll be honest, I'm kind of a construction guru, you know.
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00:05:36.759I don't know everything there is to know about that stuff.
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00:05:38.279So I I actually want to read it.
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00:05:45.560And so I want to be able to what we'll do is at the end of this, within the content, we'll go ahead and provide uh everyone's contact information where to get it.
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00:05:46.839And I want you to be able to share that.
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00:05:50.279So that's really important when you get to a certain you know level in business.
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00:05:56.599If you're able to truly provide more information for people to really dive deep into it, that's huge.
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00:06:09.639Yeah, and it's uh I did I published this book, co-published with bigger pockets, and so it's it's really a real estate investor's self-directed IRA book, you know, and it's a a guidebook, not a storybook.
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00:06:14.919It's it's something like reference, like open it up, look in the glossary, find what you need to know, and one of those kind of books.
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00:06:15.319So yeah.
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00:06:17.399And that's and that's the marriage right there, right?
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00:06:21.239You know, why why did we bring on one specific person to talk about IRAs?
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00:06:25.959I just have seen you for years work with majority, seems like it's more real estate driven.
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00:06:30.839And that clearly clears up a little bit of the the the question was you know, your background.
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00:06:32.199Obviously, you were in the space.
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00:06:35.159So naturally you're gonna have that type of clientele.
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00:06:44.119Yeah, and and with the self-directed space, the assets you know in self-directed IRAs are like it like seems like about 90% real estate related.
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00:06:48.279If it isn't buying the actual property, it's investing in a syndication.
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00:06:50.039Nate, do you know what those are?
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00:06:51.479Have you ever heard about that?
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00:06:55.879Oh, maybe syndication, maybe more than 10 billion times.
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00:06:58.039Yeah, yeah, sorry.
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00:07:01.239Yeah, the expert in syndications over here.
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00:07:08.279So no, so syndications are the number one asset class for self-directed IRAs, but it uh syndication is a is a contract.
00:07:08.439 -->
00:07:10.839I mean, the underlying assets real estate.
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00:07:14.039Uh you can buy the brick and mortar or you can make loans on real estate.
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00:07:19.879So real estate is really tied to, I'd say, 90% of the assets that people self-direct into.
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00:07:34.759Yeah, and that's really important just because you know, there's so different, so many different ways to invest the IRA into a real estate product, you know, through mortgage-backed securities and trusteed investing into multiple different funds, whether it's debt or equity funds.
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00:07:37.879Uh, what are some other asset classes they can get into?
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00:07:39.959Well, I mean, cryptocurrency, right?
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00:07:41.959Uh that's that's really taking off.
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00:07:45.399And, you know, and and so it's still the Wild West.
00:07:45.799 -->
00:07:47.879It's not fiat currency, is it?
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00:07:53.959It's not backed by anything, it's not like the Holland tulip, you know, craze.
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00:07:58.519I think it's got a little bit more substance than that, or quite a bit more, but uh, but it's it's early days.
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00:08:02.599So, but that is a huge asset class for self-directed investors.
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00:08:08.279People really like it because you can take a little bit of money and just kind of play, you know, stick your foot in the water and see how it goes.
00:08:08.359 -->
00:08:14.279So, and also we're seeing a lot of people in precious metals now, too, uh, with currency being a question.
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00:08:17.959And and currency has always been based on gold, hasn't it?
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00:08:19.959Yeah, and that just spiked a little bit earlier.
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00:08:21.799If you if you can't, I know where Nate was gonna go.
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00:08:22.599Go ahead, Nate.
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00:08:23.560No, no, no.
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00:08:25.079I've I've got a big question.
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00:08:35.639Okay, because we talk about what can invest through the self-directed IRA, but what can't be invested through a self-directed IRA.
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00:08:38.759I think that's just as equally important.
00:08:39.720 -->
00:08:42.600Of course, real estate, you're good to go most of the time.
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00:08:43.080Right.
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00:08:44.279But what can't you do?
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00:08:46.440Well, it's the list is so short.
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00:08:47.799I mean, it'll take two seconds.
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00:08:51.639It's life insurance contracts and collectibles, you know?
00:08:51.879 -->
00:08:52.680So there you go.
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00:08:54.519Life insurance, contracts, and collectibles.
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00:08:55.560Well, that's easy.
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00:08:56.920No, Nate, question for you.
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00:09:06.600How many, how many of your syndicators and your clients and operators do you think are they targeting uh clients and investors with IRAs?
00:09:07.560 -->
00:09:09.879Uh only about 110%.
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00:09:14.680And so how much do you have any data?
00:09:14.759 -->
00:09:18.200And I'm I know that we we haven't even talked about this, so I'm just we're kind of going off the top of our head.
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00:09:28.920Do you have any information on, you know, let's say, for example, someone's raising five million dollars, what the percentages of clients and investors uh are that are utilizing IRAs?
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00:09:37.000Well, I can tell you you're actually capped, you're only allowed to accept so much IRA qualified money.
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00:09:50.280And you can't go beyond, you really shouldn't go beyond 25% of your deal from IRAs or the sponsors or you have a ton of red tape and problems to deal with.
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00:09:59.160So it it kind of is one of those, yeah, get in, get in quick because it's a limited space that the IRAs can actually play.
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00:10:01.399I have a question for you, Nate, if I can.
00:10:01.560 -->
00:10:05.320So is it 25%, even if real estate is the underlying asset?
00:10:05.399 -->
00:10:09.560I thought the 25% was out the window if the underlying asset was real estate.
00:10:09.639 -->
00:10:10.840Am I right about that?
00:10:11.160 -->
00:10:19.320But people aren't investing in real estate, they're investing into an entity that it's investing into real estate, and that's the differentiation.
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00:10:19.879Okay.
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00:10:23.960Little Gene Crowbridge, you know, knowledge there from the past.
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00:10:24.840So, okay.
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00:10:28.280Yeah, and it does matter what they're investing into.
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00:10:32.440So, one comment that I want to make, you know, we work with a lot of syndicators.
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00:10:39.320And I I know, Ryan, you're a great, uh, great guy open to making deals, making things happen.
00:10:39.560 -->
00:10:49.720A big thing that people talk about nowadays, it's called a fund of fund, where uh someone else can put together a fund to invest into someone else's syndication.
00:10:49.960 -->
00:10:59.000So kind of way that you can build a team together, but it's very similar that people think, oh, I'm just investing into real estate, but you're really not.
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00:11:08.440You're investing into an LLC that is investing into an LLC that eventually owns real estate, and people just don't really think step by step through it.
00:11:08.840 -->
00:11:09.399That's true.
00:11:09.560 -->
00:11:11.080You know, do you do you know?
00:11:11.240 -->
00:11:14.040Um how you know, let me ask you this.
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00:11:20.440Are you how many of your requests to start a funds is real estate based, mate?
00:11:21.879 -->
00:11:28.920Uh y it's a vast majority of what we do is real estate and real estate related.
00:11:29.480 -->
00:11:32.040But yeah, I'll be perfectly frank.
00:11:32.200 -->
00:11:35.800The reason that it's like that, you're doing real estate deals.
00:11:35.960 -->
00:11:39.560You do many real estate deals, it's deal after deal after deal after deal.
00:11:39.639 -->
00:11:49.000If I start a company, maybe I do a founder raise and it's limited who gets in, I get funded, and then I'm just focused on the company.
00:11:49.080 -->
00:11:50.680I'm not trying to raise more capital.
00:11:50.920 -->
00:11:54.759So a lot of what we talk about is real estate because that's where the deals are at.
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00:12:03.639Yeah, and you know, and most people want to do SPV, special purpose vehicles for each project that they're involved in, and it's really just because every project has its own merits, you know.
00:12:03.879 -->
00:12:15.720And it seems like that's where we've been successful is kind of streamlining one project that people can really dive into to get comfortable and invest into, really get to know it instead of a portfolio.
00:12:15.800 -->
00:12:25.000We actually tried that with our first reggae, it was kind of a portfolio, and that was also when before the SEC really allowed you to do series with inside the reggae offerings, too, if I recall.
00:12:25.160 -->
00:12:26.200So yeah, that was really good.
00:12:26.360 -->
00:12:27.480And I really wanted to touch on that too.
00:12:27.560 -->
00:12:29.240And thank you for bringing that up because I would have forgot.
00:12:29.320 -->
00:12:42.120You know, the whole fund of fund that's really kind of that family office concept where you have someone who wants to manage money or can manage money or someone that's aligned with, let's just say, us as a as an operator, and say, hey, you know, I have a group of investors, I want to participate in it.
00:12:42.200 -->
00:12:45.879I'm gonna open up a fund, I'm gonna put 100,000 or 200,000 of my own money into it.
00:12:45.960 -->
00:12:51.960And then I have a group of friends and family or you know, some other investors we've done other business with, but I love your model and I want to get in.
00:12:52.120 -->
00:12:55.960So then they manage a fund and then that fund invests into our fund.
00:12:56.040 -->
00:12:58.200And that's what the fund is, right, Nate?
00:12:58.600 -->
00:13:05.639Yeah, it is, but it's like nowadays, like the fund of funds is just kind of uh nomenclature.
00:13:05.800 -->
00:13:16.840Like people will set up a fund to invest into your specific syndication, not a whole bunch of deals like a traditional mutual fund or a private equity fund.
00:13:17.240 -->
00:13:24.440Uh, it's just let's be honest, some people are good at operating business, some people are good at raising capital.
00:13:24.759 -->
00:13:34.440You're one of the outliers that can actually do both, but the guys that raise capital sometimes really shouldn't be doing real estate dealing.
00:13:34.600 -->
00:13:35.399I totally agree there.
00:13:37.080 -->
00:13:44.040We need to work with you and people like you to make sure that they don't get themselves or their investors in trouble.
00:13:44.280 -->
00:13:45.639Yeah, no, I appreciate that.
00:13:45.720 -->
00:13:46.280Thank you very much.
00:13:46.440 -->
00:13:49.000All right, Karin, let's talk a little bit about the big beautiful bill.
00:13:49.080 -->
00:13:58.680I think there's some content we want people to know about, and uh that has kind of been one of those things that we a lot of people are calling us going, hey, we need advice, and legally we can't, you know.
00:13:58.759 -->
00:14:05.240So this has really given us the ability to kind of shed some light and utilize our resources to to paint the yellow brick road.
00:14:05.320 -->
00:14:06.519So if you don't mind, where are we?
00:14:06.759 -->
00:14:08.040Where are we going in the world?
00:14:08.280 -->
00:14:13.800Yeah, you know, it's big, it's beautiful, and it's bringing in alternative assets, but not like self-directed IRAs.
00:14:13.879 -->
00:14:16.120And so there's a lot of misconception about that.
00:14:16.360 -->
00:14:28.759So the what's on the deck right now is that IR 401k is employer plans, 40401k, 403B, 457s, will be able to invest in alternative assets.
00:14:29.000 -->
00:14:31.879With a self-directed IRA, you just go grab that asset.
00:14:32.040 -->
00:14:33.000It won't be like that.
00:14:33.240 -->
00:14:42.600So in order to invest in a lot of these alternative assets, and of course, we've got you know the experts here, uh, Nate, expert of the uh accredited investor.
00:14:42.680 -->
00:14:45.800So you have to be accredited a lot of times to get into these deals, right?
00:14:45.960 -->
00:14:55.399So, say for example, you're working at Home Depot and you've got a 401k and you want your 401k invested in alternative assets, well, you're not accredited, possibly.
00:14:55.480 -->
00:14:58.200You know, you you might not be an accredited investor.
00:14:58.360 -->
00:15:00.759And so you couldn't get into that deal directly.
00:15:00.920 -->
00:15:13.639But what would happen is say, I don't know, say John Hancock is got is got the, you know, is is the plant administrator here, whatever the the big company there, they're going to create a fund of alternative assets.
00:15:13.879 -->
00:15:21.160So it's that level where they're getting in, they're the alternative, or sorry, the they're the accredited investor.
00:15:21.480 -->
00:15:26.920And now got you know, person from Home Depot invests in their fund, not in the asset directly.
00:15:27.080 -->
00:15:27.560You see?
00:15:27.800 -->
00:15:38.360And so that's how you get past the accredited investor portion uh to have people with the 401k work in a regular nine to five job investing in alternative assets in this way.
00:15:38.519 -->
00:15:39.960Uh so there's one thing.
00:15:40.040 -->
00:15:47.639But another thing that's incredibly important is that yes, this bill passed, it did, but there's still some time for oversight.
00:15:47.720 -->
00:15:58.040So the Department of Labor said they're going, they're gonna take a 180-day look at the fiduciary responsibility, you know, because we've we've got companies, we have 401ks for our companies.
00:15:58.200 -->
00:15:59.800So we're a trustee of that plan.
00:15:59.879 -->
00:16:01.560We have a fiduciary duty.
00:16:01.800 -->
00:16:07.240And if we allow our employees to invest in scary assets or dangerous assets, we could be liable.
00:16:07.399 -->
00:16:09.399So the Department of Labor has taken a look at that.
00:16:09.480 -->
00:16:14.600Maybe they're going to indemnify um, you know, plan trustees, like employers.
00:16:14.680 -->
00:16:20.360Uh, so we'll see what they do, but it'll be six months out uh before the DOL is gonna sound off about their findings.
00:16:20.600 -->
00:16:20.920Got it.
00:16:21.000 -->
00:16:25.720Well, let me ask you this, because I kind of I love I'm actually gonna learn a lot with you here.
00:16:25.800 -->
00:16:30.120And I thought I didn't know more a lot, but I I always I'm humble enough to say I don't know everything.
00:16:30.360 -->
00:16:33.160Okay, so let's let's kind of let's dissect that a little bit.
00:16:33.399 -->
00:16:42.840So if you have a 401k, let's say it's it's housed at like uh Fidelity or uh uh what's the other few other ones?
00:16:42.920 -->
00:16:46.360Um Schwab, yeah, Charles Schwab, what have you.
00:16:47.480 -->
00:16:53.160The operator, someone like me that managed the fund manager, we would have to submit that fund, right?
00:16:53.399 -->
00:17:02.120To right, okay, to and get approved on that platform, yes, right, which also requires audited financials and and yearly auditors, right?
00:17:02.360 -->
00:17:04.519Yeah, well, it's TBD, it's early days, right?
00:17:04.599 -->
00:17:06.039It just passed about a month ago.
00:17:06.119 -->
00:17:10.839So well, the standard process now for RIAs and so forth on some of the larger outfits is the same way.
00:17:10.920 -->
00:17:17.160And if you have a reggae, let's say you're non-accredited, I don't think you're talking more of accredited, but even with reggaes, you have to have audited financials, Nate.
00:17:17.240 -->
00:17:18.680If I'm correct me if I'm wrong, yes.
00:17:18.839 -->
00:17:30.919Um, but you you know, if you're gonna go after the accredited space and that custodian, in essence, is operating as uh as the accredited, uh, yeah, so we would definitely need to be uh approved, is kind of where I think would be.
00:17:31.000 -->
00:17:36.039I'm I mean, I may be wrong and you're right that you have to 180 days to have to figure this out, but I think that's probably the process that we want.
00:17:36.759 -->
00:17:46.119They would vet us as a good operator and that we have the right practices in place and they would look at who our securities attorneys are and they would want to see our our uh our infrastructure.
00:17:46.439 -->
00:17:50.759Absolutely, absolutely, because they're in a way they're representing you, aren't they?
00:17:50.839 -->
00:17:52.519Out out to the out to the general public.
00:17:52.599 -->
00:17:58.199So we'll see how this goes, but that that's a logical path because it's sort of the way that things are done already.
00:17:58.439 -->
00:18:14.759You know, and I would say we've lost a lot of investors because they've wanted to use their 401ks and they couldn't because they were either still employed or a lot of FedEx, a lot of law enforcement, you know, um uh people in you know the uh medicine world, you know, so forth uh really got it had to pass on a lot of clients.
00:18:14.839 -->
00:18:16.839And you know, they're like, well, then I'll call you when I retire.
00:18:16.919 -->
00:18:18.359And I'm like, well, when's that?
00:18:18.599 -->
00:18:20.119You know, I can't roll it over.
00:18:20.279 -->
00:18:23.319So okay, any other uh anything else you want to touch on?
00:18:23.639 -->
00:18:33.319Well, I think you know, that's the latest, but I just think briefly, a self-directed IRA, just to say they've been around 50 years, it's nothing new, and it's a simple process.
00:18:33.480 -->
00:18:36.839After you've done your due diligence, you know, then that's the hard part.
00:18:36.919 -->
00:18:49.159Then you open an account, takes 10 minutes, fund the account uh with either a rollover from a previous employer plan, IRA to IRA, you could transfer an IRA, or the third thing you could do is contribute from your own checking account.
00:18:49.240 -->
00:18:51.240So open, fund it, and then invest.
00:18:51.319 -->
00:18:58.359So you give us the docs, you know, and the IRA is the investor, not you, the person, but the IRA entity is the investor.
00:18:58.439 -->
00:19:01.000And then we fund that deal from your IRA.
00:19:01.079 -->
00:19:03.720All the proceeds go back to the IRA that owns it.
00:19:04.119 -->
00:19:14.519And you just have to make sure that those proceed checks are always made payable to the IRA and not, ah, if they're ever accidentally made payable to you, just return that check to your depositor.
00:19:15.159 -->
00:19:16.519Yeah, don't deposit it.
00:19:16.679 -->
00:19:20.359Just nicely send it back, say, oh, little mistake here, let's fix this.
00:19:20.519 -->
00:19:27.399Because if you put that check that belongs to your IRA in your own account, that could be, you know, it could lead to a prohibited transaction.
00:19:27.480 -->
00:19:29.480So just that's an easy way to stay clear.
00:19:29.639 -->
00:19:31.319Open fund invest, basically.
00:19:31.639 -->
00:19:32.919So Rachel has a question.
00:19:33.000 -->
00:19:36.919It says, Can you invest in an oil and gas through an SD IRA?
00:19:37.240 -->
00:19:41.959You can, but uh that is it's a really interesting asset class.
00:19:42.119 -->
00:19:48.039It's interesting because when you invest personally, like outside your IRA, you can get some massive tax breaks.
00:19:48.199 -->
00:19:52.039And it can be great for you to do personally and not with qualified funds.
00:19:52.199 -->
00:20:02.119Now, in qualified funds, a lot of times I know that some of the big uh oil and gas companies that are out there, they'll have a separate asset for self-directed IRA accounts.
00:20:02.199 -->
00:20:05.399Maybe it'll be the land or it will be the business or something.
00:20:05.559 -->
00:20:10.679It won't be the actual oil where you get the rights and the, you know, and those massive tax breaks.
00:20:10.839 -->
00:20:19.240So there are different ways for self-directed IRA to invest in oil and gas that are different than you might, a different way than you might invest in personally.
00:20:19.480 -->
00:20:20.519Yeah, and I think you're right.
00:20:20.679 -->
00:20:24.039There's multiple ways to invest into the oil and gas industry overall.
00:20:24.199 -->
00:20:26.039It just depends like on the nature of the structure.
00:20:26.199 -->
00:20:26.359Great.
00:20:26.439 -->
00:20:27.159I great.
00:20:27.319 -->
00:20:30.039Is there anything else that we want to touch on with the big beautiful bill?
00:20:30.359 -->
00:20:33.319No, I think I think that's how it applies to uh retirement.
00:20:33.399 -->
00:20:39.799Now we had Secure Act 1.0 in 2019, Secure Act 2.0 at the very end of 2022.
00:20:39.959 -->
00:20:43.399So the the federal government has really tweaked retirement plans.
00:20:43.720 -->
00:20:44.519They're kind of done with that.
00:20:44.599 -->
00:20:46.359So I'm very happy it's changed.
00:20:46.439 -->
00:20:47.720We've had some changes.
00:20:47.879 -->
00:20:50.759Um, so that's happened and now we're going forward.
00:20:50.919 -->
00:20:53.319But this isn't going to change self-directed IRAs.
00:20:53.399 -->
00:20:55.000It's going to change the employer plan.
00:20:55.319 -->
00:21:02.919Yeah, you know, and it uh to be to be candid too, you know, a lot of our clients, especially if they've been with us for several years, you kind of get to know them on a personal level.
00:21:03.480 -->
00:21:16.759And I would say, you know, a lot of the I would say institutional trading platforms, they're just not creating the returns to allow people to feel comfortable that they're going to be able to retire and have really the wealth that they need to enjoy their lives.
00:21:16.839 -->
00:21:19.799Or even, you know, most people are trying to get worried about healthcare costs.
00:21:20.119 -->
00:21:21.159It's true.
00:21:21.399 -->
00:21:25.480Yeah, you can self-direct even an HSA, a health savings account.
00:21:25.959 -->
00:21:26.279All right.
00:21:26.359 -->
00:21:29.879Well, it's my turn to moderate because Ryan froze up.
00:21:30.039 -->
00:21:35.000Uh so got a couple of questions for you, uh, myself.
00:21:35.240 -->
00:21:35.559Okay.
00:21:35.720 -->
00:21:38.119Uh, one from Anthony.
00:21:38.519 -->
00:21:44.119You know, there's a lot of uh heavily discounted Roth conversions.
00:21:44.919 -->
00:21:50.519Could you speak a little bit to what a Roth conversion from the IRA to the Roth actually really looks like?
00:21:50.679 -->
00:21:53.799I mean, it's it's something that comes up so unbelievably often.
00:21:54.039 -->
00:21:56.119Yeah, that heavily discounted really hits.
00:21:56.439 -->
00:21:57.639Yeah, I don't know what that even means.
00:21:58.039 -->
00:21:58.439Well, I do.
00:21:58.519 -->
00:22:01.480I mean, if if you're going to say, like, oops, my, oh, guess what?
00:22:01.559 -->
00:22:04.759My traditional, my asset, my traditional IRA really isn't worth that much.
00:22:04.839 -->
00:22:06.119And then I'm gonna put it in a Roth.
00:22:06.359 -->
00:22:07.720Oops, suddenly the value increased.
00:22:07.799 -->
00:22:08.599Like, who knew?
00:22:08.679 -->
00:22:10.119Uh, that looks like Roth fraud.
00:22:10.279 -->
00:22:11.240So don't do that.
00:22:11.399 -->
00:22:22.759But a typical normal, you know, traditional to Roth conversion is simply you open two accounts, a traditional and a Roth, you move the assets, could be cash or assets, you convert them from one account to the other.
00:22:23.000 -->
00:22:34.599And the dollar value, the appraised value of the amount you converted, you're going to get a 1099 with that same number on it, and it will be taxable to you at your regular tax rate.
00:22:34.679 -->
00:22:38.599So you can do that, pay the tax now and not pay the tax later.
00:22:38.679 -->
00:22:41.799So it could be doing your retired self a favor today.
00:22:42.359 -->
00:22:42.679Okay.
00:22:43.000 -->
00:22:44.599So some more questions for you.
00:22:44.839 -->
00:22:46.839Ryan, it it's nice to see you here.
00:22:47.000 -->
00:22:48.279Like, we don't really need you.
00:22:48.679 -->
00:22:51.799I'd like to say I had to use a restroom break, but that really wasn't the case.
00:22:51.959 -->
00:22:52.279No.
00:22:53.159 -->
00:22:53.639All right.
00:22:53.720 -->
00:23:07.639I I know it's so confusing for both investors and operators, like the investment process with an IRA because it's like, oh, I invested.
00:23:07.799 -->
00:23:10.759Well, you did you invest or did the custodian invest?
00:23:11.159 -->
00:23:13.799You fill out the paperwork, do I fill out the paperwork?
00:23:13.959 -->
00:23:16.679And there's just so much confusion around this.
00:23:16.839 -->
00:23:17.079Yeah.
00:23:17.399 -->
00:23:18.919Can you clear the air a little bit?
00:23:19.159 -->
00:23:25.399Oh, I sure sure, but for us, we have people vest as you know, non-trust custodial IRA.
00:23:25.559 -->
00:23:31.559So actually the account holder is signing the docs, you know, in in in representing their IRA.
00:23:31.720 -->
00:23:34.439So that makes things a little bit actually quite a bit easier.
00:23:34.519 -->
00:23:35.799So that that's nice.
00:23:36.039 -->
00:23:40.119Um, but then uh I IRAs aren't difficult.
00:23:40.279 -->
00:23:43.959Once you get the docs, you've you I mean it really can be very, very simple.
00:23:44.039 -->
00:23:45.720Where do you see a snag?
00:23:47.159 -->
00:23:56.119Uh everywhere along the way because you look at like an investment document, and then there's the line that says investor, sign here.
00:23:56.439 -->
00:23:57.000Oh, okay.
00:23:57.240 -->
00:23:58.439So I sign it.
00:23:58.519 -->
00:23:58.679Yeah.
00:23:59.240 -->
00:24:00.199Custodian sign it.
00:24:00.359 -->
00:24:01.559I know they're sending in the money.
00:24:01.639 -->
00:24:02.679I'm not sending in the money.
00:24:02.759 -->
00:24:05.159So it just creates so much havoc.
00:24:05.319 -->
00:24:10.519I know there's even some medallion, and I don't even understand this medallion, but there's even a stamp there.
00:24:10.759 -->
00:24:11.559Yeah, I know.
00:24:11.720 -->
00:24:20.599Well, I think so, so if if it says FBO, so if it's like Nate or if it's the custodian for the benefit of Nate Dodson's IRA, the custodian's going to sign that.
00:24:20.759 -->
00:24:23.319The way we vest is that the account holder can sign.
00:24:23.399 -->
00:24:30.919Now, the the the medallion signatures, and if you don't know what that is, it's sort of like uh like a notary stamp that goes on the transfer document.
00:24:31.079 -->
00:24:34.119And typically that is for moving large amounts of cash.
00:24:34.279 -->
00:24:41.720It's it's kind of an old-fashioned sort of thing, and but still sometimes it's required to transfer from one IRA to another.
00:24:41.799 -->
00:24:44.039That's when a medallion stamp comes into place.
00:24:44.279 -->
00:24:45.319Sometimes that happens.
00:24:45.399 -->
00:24:48.199You can usually get a medallion stamp at a bank if you need one.
00:24:48.759 -->
00:24:54.919So, what you're really saying is if anybody asks for the medallion stamp, they are just old-fashioned.
00:24:55.480 -->
00:25:00.519And they probably should get with the times talk to someone like yourself.
00:25:01.000 -->
00:25:02.679Well, it's about security, you know, it is.
00:25:02.759 -->
00:25:11.559And so every institution or every company is gonna have its own uh you know guidelines, their own security measures, or how they want to do things, or their procedures.
00:25:11.799 -->
00:25:16.599And so uh medallion stamp is one of those procedures, or it could be.
00:25:17.000 -->
00:25:18.839You know, I got a question, Karen, Karin.
00:25:18.919 -->
00:25:20.839We're we're gonna pick on you, I think, the whole time here.
00:25:21.079 -->
00:25:21.319Okay.
00:25:22.359 -->
00:25:25.720So one of our uh one of our sticky uh points has always been processing.
00:25:25.799 -->
00:25:39.720You know, that's one of the reasons why we reached out to you, um, is really trying to uh just make it smoother for the client because really there's a lot of information and content that don't they don't understand and they really don't know where to start, right?
00:25:39.959 -->
00:25:47.079So what would be let's talk about the process with you if let's say someone's gonna move into a self-directed, open up an account with you.
00:25:47.240 -->
00:25:48.199What's the process?
00:25:48.359 -->
00:25:52.199And then what's your um let's uh so there's a couple couple questions.
00:25:52.359 -->
00:25:53.399What's the process?
00:25:53.639 -->
00:26:06.439And then what would be the engagement letter letter uh level with someone like us as far as we refer the client to you, uh investor uh you know opens up an account and then they want to invest into one of our funds.
00:26:06.599 -->
00:26:08.839Kind of what's the standard protocol for you guys?
00:26:09.159 -->
00:26:11.559Well, I it couldn't be it could hardly be easier.
00:26:11.639 -->
00:26:15.559Do you could just you know do an email introduction if we just want to go bare bones?
00:26:15.639 -->
00:26:19.079You could just do an email to introduction, and then from then we pick it up.
00:26:19.159 -->
00:26:26.119We offer always a free consultation with that account holder, that that that investor, and we want to talk to them about well, tell us about the asset.
00:26:26.279 -->
00:26:29.559What are you investing in, and tell us more about who owns the asset?
00:26:29.799 -->
00:26:31.799Because there are rules that we haven't covered yet.
00:26:31.879 -->
00:26:33.480They're called it's what you avoid.
00:26:33.559 -->
00:26:35.240It's not what you do, it's what you don't do.
00:26:35.319 -->
00:26:37.000They're called prohibited transactions.
00:26:37.159 -->
00:26:39.480So we're gonna listen like, hey, is this prohibited?
00:26:39.639 -->
00:26:43.159Um, so you don't have self-dealing, so your IRA doesn't invest in asset.
00:26:43.240 -->
00:26:45.159You own, you know, they're prohibited transactions.
00:26:45.240 -->
00:26:49.319So we're gonna listen to the investor, they're gonna tell us about their deal.
00:26:49.480 -->
00:26:51.159And then we want to answer all their questions.
00:26:51.319 -->
00:26:58.039Maybe they don't understand, uh I don't know, maybe how to do this or the tax deductibility or something like that.
00:26:58.279 -->
00:27:03.879Now, of course, we're not tax professionals, but we can give general, you know, guidance on on uh how that works.
00:27:04.039 -->
00:27:10.519So very simple, you open an account, we have a digital form, and you fill it out, just so easy.
00:27:10.679 -->
00:27:15.559Uh, you move the money in, and we have staff that's going to really hold your hand through that process.
00:27:15.799 -->
00:27:22.119So while the money, while you're waiting, because it can take one to two weeks for another custodian, you know, to move that money.
00:27:22.359 -->
00:27:27.240And so while we're waiting, then we're getting the documentation from the asset sponsor.
00:27:27.480 -->
00:27:28.519We're going to review it.
00:27:28.599 -->
00:27:31.879And typically a lot of this is the same, right, Nate?
00:27:31.959 -->
00:27:35.879And when you're looking at a syndication, there's a certain structure that you're looking at.
00:27:36.039 -->
00:27:38.279So it's not like each one's vastly different.
00:27:38.359 -->
00:27:43.639So it's not that complex for us to look at it and know what needs to go on there.
00:27:43.720 -->
00:27:49.720And so we hold the investor's hand there too, to make sure their docs have the right information in the right place.
00:27:49.959 -->
00:27:56.119And then we also want to take a look and make sure that the investor is actually receiving an asset in exchange for their money.
00:27:56.199 -->
00:27:57.879It's just something that we like to do.
00:27:58.039 -->
00:28:06.199But 100% of the responsibility is on the investor, the account holder, uh, to make sure they don't commit a prohibited transaction and to make sure that they're doing it right.
00:28:06.279 -->
00:28:09.079But we're here just to guide people uh that whole way.
00:28:09.159 -->
00:28:11.399So that that's basically how it goes, soup to nuts.
00:28:11.639 -->
00:28:19.399Yeah, and what we do is we typically will send over the operating agreement, subscription agreement, and they will take a look at it, read it, get to know it.
00:28:19.480 -->
00:28:29.720And then obviously, because the IRA account is making the investment, we have to make sure we get an account number from you guys, we put it on the document, we send it out for signature, and then we send it to you.
00:28:29.799 -->
00:28:35.000So, really, and your team, so really are you signing it or are the investor signing?
00:28:35.399 -->
00:28:41.639Investor signs it, but it's really signing in the behalf of the non-trust custodial IRA, right?
00:28:41.879 -->
00:28:42.759Perfect, got it.
00:28:42.919 -->
00:28:48.439So, as long as we have the account number on there, uh, that's really important, and the name of the custodian, correct?
00:28:48.599 -->
00:28:49.000That's right.
00:28:49.399 -->
00:28:49.720That's right.
00:28:49.799 -->
00:28:55.319And we'll give you every everything, and it won't be a massive mystery at all because it's it's it's very cut and dry.
00:28:55.399 -->
00:28:57.079We do this a hundred times a day at least.
00:28:57.159 -->
00:28:59.639So yeah, I know you guys are a billion dollars in a management.
00:28:59.720 -->
00:29:01.480I can only imagine at least that a day.
00:29:01.720 -->
00:29:03.559So do you have any questions?
00:29:03.879 -->
00:29:05.559Uh yeah, I I've got a question.
00:29:05.720 -->
00:29:07.480Ron's got the same question.
00:29:07.799 -->
00:29:11.159Now I made my investment, I gotta get my money back.
00:29:11.399 -->
00:29:11.799Yeah.
00:29:12.039 -->
00:29:14.679What does it look like working with you?
00:29:15.319 -->
00:29:17.559Can't the syndication just write me a check?
00:29:17.639 -->
00:29:19.879Or like what does that process look like?
00:29:19.959 -->
00:29:21.720Because all of a sudden you're in the middle.
00:29:22.039 -->
00:29:22.279Right.
00:29:22.439 -->
00:29:22.679Okay.
00:29:22.759 -->
00:29:25.159So someone maybe they invest in this in a syndication.
00:29:25.240 -->
00:29:27.959They want to leave, yeah, like an early exit, you mean?
00:29:28.679 -->
00:29:30.359Yeah, yeah.
00:29:30.439 -->
00:29:36.359So we'll ask them to talk to their syndicator, talk to their asset sponsor, and tell them what their needs are.
00:29:36.439 -->
00:29:41.240Because sometimes there is an opportunity for someone to get out of a deal early.
00:29:41.319 -->
00:29:48.119Uh, and so that's something that an investor would negotiate with the actual company they invested with.
00:29:48.279 -->
00:29:52.599And then that company would move the money into the IRA if, you know, once they reach that agreement.
00:29:52.759 -->
00:29:53.879That's how that would work.
00:29:54.199 -->
00:29:55.159Yeah, and that's true.
00:29:55.399 -->
00:29:57.879We get that all the time, especially when people go through hardship, you know.
00:29:58.759 -->
00:30:00.359We get that quite a bit, believe it or not.
00:30:00.439 -->
00:30:04.199You know, there's sometimes we have the ability to do it, and then sometimes we really just don't.
00:30:04.279 -->
00:30:07.639It just depends on the nature of the project and where it's at, and so forth.
00:30:07.959 -->
00:30:09.959You bring up a really huge point.
00:30:10.039 -->
00:30:12.039Uh, it really triggers something for me to say.
00:30:12.119 -->
00:30:22.279And that is sometimes when people invest in uh in syndications, now tell me what you think, but they don't necessarily understand that they're there's no promise to repay that.
00:30:22.439 -->
00:30:32.519And what they're really doing as an investor is like partnering in a way with that asset sponsor, like, hey, we're both going to try to make this work, we're gonna do our very best, but we're sharing the risk.
00:30:32.839 -->
00:30:34.359Yeah, and it's we say the same thing.
00:30:34.439 -->
00:30:36.359We're all in the same boat with the same row.
00:30:36.599 -->
00:30:40.519We're just the one with the strong back and doing all the heavy lift to try to get the deal done.
00:30:41.079 -->
00:30:45.480And that's exactly I love the way you said that because it really that's why they call them limited partners.
00:30:45.639 -->
00:30:48.439You are a partner, you know, in the investment.
00:30:48.599 -->
00:30:49.480So it's it's true.
00:30:49.559 -->
00:31:00.119And then, you know, again, the nature of the investment too, a lot of the times in real estate, depending on the nature of it, uh, and I'm gonna talk really kind of our side because we don't want to construction, right?
00:31:00.199 -->
00:31:07.559We have to build the thing, we have to have a capital event, whether we finish it, refinance it, or sell it, uh, we really can't re return capital.
00:31:07.720 -->
00:31:21.959So it's so important that clients, investors really know what they're getting themselves into and when they part ways, try to stick with the the length of the project, but also know, hey, the world kind of kicks us in the teeth with tariffs and other things.
00:31:22.039 -->
00:31:24.119You know, sometimes it takes longer to build or develop.
00:31:24.199 -->
00:31:25.079And we've had that too.
00:31:25.159 -->
00:31:26.599You know, I mean, we've had a lot of ups and downs.
00:31:26.679 -->
00:31:27.959And hey, you know the stories, man.
00:31:28.039 -->
00:31:29.319You're probably getting it from everybody.
00:31:29.480 -->
00:31:36.919Everybody across the country has issues, and it's hard to get materials and you know, certain uh electrical components, as an example, has been kind of a pain in the butt.
00:31:37.079 -->
00:31:39.000Garage doors for us has been a pain in the butt.
00:31:39.079 -->
00:31:43.639You know, it's just one of those things that for big to make big money, it's not easy.
00:31:43.879 -->
00:31:45.720Somebody always tells you to fight all the way through.
00:31:45.799 -->
00:31:50.919You know, we're just then you got the black swans, like all of a sudden rates go up 4,000% or something like that.
00:31:51.079 -->
00:32:01.159And you didn't really plan for we've seen a lot of uh even today, we have uh IRA account holders, investors who have invested in syndications and they got a capital call.
00:32:01.319 -->
00:32:04.679And some of them don't understand why they would get a capital call.
00:32:04.759 -->
00:32:07.480So it's just so important to understand your asset before you invest.
00:32:07.720 -->
00:32:10.039And that's because it's like, no, you're supposed to pay me.
00:32:10.119 -->
00:32:11.639I don't pay you, you pay me.
00:32:11.799 -->
00:32:13.959And but you know, but you're sharing that risk.
00:32:14.039 -->
00:32:20.679Well, we, you know, we need to do this, and we, you know, because of the rates went up, we had to reinstate our debt at a higher rate.
00:32:20.759 -->
00:32:22.759And so now we've got a different cash flow.
00:32:22.839 -->
00:32:26.759And you know, and then you explain it, we're all gonna win, but we all have to row together.
00:32:26.839 -->
00:32:29.079I think that that's that that's what you say, right?
00:32:29.319 -->
00:32:29.959Yeah, oh yeah.
00:32:30.039 -->
00:32:37.399Well, and in probably in some cases more than that, you know, we really the idea is to understand really kind of those the sticking points of the project.
00:32:37.559 -->
00:32:42.919Um, and then, you know, for again, I'm just kind of speaking for us, you know, with the sticking points of the project, what are the main hurdles?
00:32:43.159 -->
00:32:48.439I think with our experience now, we really can articulate it in a way that pretty much anybody can understand our hurdles, right?
00:32:48.599 -->
00:32:53.319And and that's one of the things too, is we've had people where they're like, well, we really didn't know what we're getting ourselves into.
00:32:53.399 -->
00:32:55.959We're like, okay, we don't want people to feel that way, you know.
00:32:56.119 -->
00:33:11.319So we're spending more time doing these types of things where we're building the content, allowing everybody to take as long time as they want to watch videos, you know, read the documents, ask questions from either anybody on my team or myself, you know, and really kind of give them an overview.
00:33:11.399 -->
00:33:19.079And one of what's what I think helps, and I I say it respectfully, a lot of times I'd like to get to know my investors and kind of have they've invested in something like this before.
00:33:19.319 -->
00:33:20.919How you know, what do you do for a living?
00:33:21.000 -->
00:33:27.639It kind of gives me an idea where they are and knowledge, uh, so I can then touch on things they may not know or what they should know.
00:33:28.679 -->
00:33:30.839Yeah, know your investor is huge, isn't it?
00:33:31.079 -->
00:33:31.480Mm-hmm.
00:33:31.720 -->
00:33:40.119And you know, when you have good, when you have a good, you know, one thing I've realized is that when you communicate well and you're transparent, it's okay when you have hardships.
00:33:40.279 -->
00:33:42.679A lot of people just they they're they're the ride to wave with you.
00:33:42.759 -->
00:33:43.639They're totally okay.
00:33:43.879 -->
00:33:48.279It's the non-communicative holding things back that really creates a problem, right?
00:33:48.359 -->
00:33:56.839So when you when you really do open up to your clients and kind of give them everything to consider on the front end, you can call them down the road and say, hey, are you sitting down or standing up?
00:33:57.639 -->
00:33:58.759Sit down for this one.
00:33:58.919 -->
00:34:01.399But hopefully we have a solution, you know.
00:34:01.639 -->
00:34:06.359Yeah, you know, because some people, it's like their pride, they don't want to say we're having a problem.
00:34:06.519 -->
00:34:14.440And that's when you that's when uh an asset sponsor like you, I mean, you know, you like you need to be a humble guy because you've got to say, you know what, the world isn't perfect.
00:34:14.519 -->
00:34:15.400And here's an example.
00:34:15.480 -->
00:34:20.840Like you said, are you sitting standing up or sitting down, you know, and you've got to think, but we're gonna get through this, and this is how.
00:34:20.920 -->
00:34:24.519And you you show them a plan, a plan forward, and like everybody gets it.
00:34:24.599 -->
00:34:31.079It's you what what hurts is when someone's afraid to say that there's a problem instead of just, hey, you know, life happened, here we go.
00:34:31.240 -->
00:34:35.400So when people are afraid to tell you there's a problem, you need to be knocking on that door as an investor.
00:34:35.559 -->
00:34:38.360Like, look, I know there are problems, just tell me what it is, right?
00:34:38.440 -->
00:34:50.120Yeah, I could speak on this just a little bit because of so much of what I've seen in the syndication and frankly, just economic world, macroeconomics.
00:34:50.920 -->
00:34:58.760It's been tough for a lot of syndicators over the past couple of years with costs going up, inflation, interest rates going up.
00:34:59.240 -->
00:35:05.240But one of the toughest things that people don't recognize is the stock market.
00:35:05.400 -->
00:35:09.240It's been going gangbusters for the past few years.
00:35:09.480 -->
00:35:13.240That's been a lot of where to invest, but now it's like this big bubble.
00:35:14.440 -->
00:35:20.360And there's such a huge risk of that bubble just bursting.
00:35:21.000 -->
00:35:24.120I mean, you talked about the Great Recession 2008, 2009.
00:35:24.200 -->
00:35:26.840I was in the epicenter of Las Vegas at the time.
00:35:27.960 -->
00:35:31.960These things happen, and when they happen, they happen fast.
00:35:32.280 -->
00:35:49.000Yeah, and so it is really right now that you know, if you're heavily in the stock market, investing into those hard assets that regardless of what happens, there's value in the real estate.
00:35:49.160 -->
00:35:53.800There's that perfect saying or that traditional saying, there's never going to be more of it.
00:35:54.200 -->
00:35:55.480Yeah, that's so true.
00:35:55.800 -->
00:36:03.720So I do think over this next year, I mean, it's been a tough time, but interest rates are starting to come down.
00:36:03.960 -->
00:36:09.720The government is at least trying to stabilize pricing to help.
00:36:10.440 -->
00:36:17.000But also, we're going to start, and it's already beginning, having an outflow from the stock market into real estate.
00:36:17.240 -->
00:36:25.000So the gains are starting to well, just frankly, look nicer where the real estate markets are going.
00:36:25.079 -->
00:36:28.039So I just kind of want to give that more macroeconomic.
00:36:28.200 -->
00:36:29.720Let's be honest about what's going on.
00:36:29.960 -->
00:36:32.039You know, Nate, there's so much truth to that.
00:36:32.200 -->
00:36:41.480Um, I would agree with you when you watch Warren Buffett, you know, pull$278 billion out of the stock market, put it into a put it into a uh uh, what was it?
00:36:41.640 -->
00:36:53.800He put it into, I think put it in a JP Morgan, he put it into some sort of uh bank account, in essence, you know, um to just he owns more of the treasury bills than the Federal Reserve does.
00:36:53.960 -->
00:36:54.440Oh yeah.
00:36:54.600 -->
00:36:56.680Like he's pulling out, yeah.
00:36:56.760 -->
00:37:04.360And but did you see what was it, five or eight hundred million dollars in DR Horton and Lenar, and he went wall in.
00:37:04.440 -->
00:37:09.160You know, he he for he went into a cash position for a very long time, and he just started watching.
00:37:09.240 -->
00:37:14.280He goes, All right, I'll go ahead and dump 800 million dollars into you know residential builders.
00:37:14.519 -->
00:37:15.720I thought that was pretty impressive.
00:37:15.800 -->
00:37:19.240And if you look at those builders, you it and that was what I think that's the key.
00:37:19.400 -->
00:37:21.320Like what where is where was the capital going?
00:37:21.400 -->
00:37:25.079That means they're saying something we're not necessarily seeing, which is great to kind of keep an eye on that.
00:37:25.320 -->
00:37:32.280But they invested into two builders that I think are two kind of different worlds, and that was a big eye-opener for me.
00:37:32.440 -->
00:37:42.200Lenar, I would say, is probably a higher end builder, and most times the more primary markets they love kind of an upper class, larger lot, a little higher dollar amount price point.
00:37:42.440 -->
00:37:43.480And then you have D.R.
00:37:43.640 -->
00:37:46.120Horton, which is a little bit more on the attainable side.
00:37:46.280 -->
00:37:51.240So the fact that he just went into residential uh all the way through was really impressive for me.
00:37:51.320 -->
00:37:54.760And that's that's I think that's a testament to what you just said, you know, the stock market.
00:37:54.840 -->
00:38:01.079And then we have clients too that are just so tired of the volatility and the anxiety they get with the with the market going up and down.
00:38:01.240 -->
00:38:05.240People are liquidating now, going, I see it, I feel it, I've been doing this for 20, 30 years.
00:38:05.400 -->
00:38:10.519I need to get into something that's stable, that has a three, four-year run, and I just don't have to worry about it, you know.
00:38:10.600 -->
00:38:15.400But I get some I get some cash flow, maybe they diversify into some accumulation and equity play.
00:38:15.559 -->
00:38:18.760They get some cash flow, they try not to lock up their capital too long.
00:38:18.920 -->
00:38:22.039You know, that type of stuff has been kind of the nature of our conversations lately.
00:38:22.200 -->
00:38:24.120So I really appreciate you talking on that.
00:38:24.440 -->
00:38:28.840Yeah, I mean, after out of the recession, didn't home builders stop building for about 10 years?
00:38:29.000 -->
00:38:33.160Isn't there still like a deficit that that has never been brought level?
00:38:33.240 -->
00:38:35.880I mean, they they just haven't built enough houses.
00:38:35.960 -->
00:38:37.480So I could really see that.
00:38:37.640 -->
00:38:45.000And and uh there's definitely supply and demand and throw in there people, probably like all of us who have houses that are at 2.75%.
00:38:45.320 -->
00:38:45.880Am I right?
00:38:46.039 -->
00:38:48.039And so would we ever sell that house?
00:38:48.200 -->
00:38:49.079No, we wouldn't.
00:38:49.240 -->
00:38:51.000So it it locks up that inventory.
00:38:51.160 -->
00:38:54.039So we we have to build that that makes a lot of sense to me.
00:38:54.280 -->
00:38:55.000You nailed it.
00:38:55.079 -->
00:39:00.440All right, Nate, since we uh we kind of stole this for the last 30 minutes, I really wanted everyone to get to know you more.
00:39:00.600 -->
00:39:04.200So, and I and I and if you don't mind, let's go a little bit about your background.
00:39:04.360 -->
00:39:17.079I think what I love about you the most is not only my personal relationship with you, and I can tee off on that for hours, but I love the fact that you acquired a law firm and that a lot of your old attorneys actually came and now work with you, that you've had work with you in the past.
00:39:17.240 -->
00:39:22.840And so, you know, I think that's a niche in itself that a lot of people don't understand because that's really kind of a private equity play.
00:39:23.000 -->
00:39:24.200I mean, you are that mind.
00:39:24.360 -->
00:39:28.200And then you obviously have the polish in regards to the security side.
00:39:28.360 -->
00:39:35.559So I I just want everyone to really get to know you a little more because I would recommend you, and I already do, as you know, I send as many people as I can your way.
00:39:35.720 -->
00:39:50.360But anybody who's watching this that has thought about opening their first fund or it's a 10th fund or it's a unique structure that you just need other people as an advisor to kind of guide you in the right direction and even bring that insight about the market and will it be successful?
00:39:50.440 -->
00:39:51.720You know, and I think that's really important.
00:39:51.800 -->
00:39:54.200So, Nate, if you mind, give us a little more about your background.
00:39:54.440 -->
00:39:58.440I I will get do the humble brag as good as I can.
00:39:59.079 -->
00:40:02.600But uh no, I I'm not just like that traditional attorney.
00:40:02.680 -->
00:40:03.880I'm not just out there.
00:40:03.960 -->
00:40:09.320I I've honestly actually never even been to court and like argued a motion, it's just not what I do.
00:40:09.559 -->
00:40:21.320I used to be a stockbroker, just selling investments just like Ryan, just like a lot of the syndicators out there going and hey, what makes sense?
00:40:21.640 -->
00:40:24.039How do you move money around?
00:40:24.280 -->
00:40:29.720One of the first lessons I got as a little kid learning how to read on the Wall Street Journal.
00:40:29.960 -->
00:40:34.680If you want to make the money, you got to learn to work with the money, how to invest the money.
00:40:34.920 -->
00:40:39.960So I became a stockbroker after a little while, and then uh we don't need Ryan.
00:40:40.680 -->
00:40:45.559So eventually I end up uh going into law school.
00:40:45.800 -->
00:40:48.920It was actually after the uh internet bubble popped.
00:40:49.000 -->
00:40:52.360So have a lot of experience with bubbles popping.
00:40:52.600 -->
00:41:00.600Ended up becoming an attorney, went right back to doing the investing, but on this side, it's on the representative side.
00:41:00.920 -->
00:41:05.559I was there in uh Las Vegas in 2008, and you know what?
00:41:05.640 -->
00:41:07.880It was the other bubble popping.
00:41:07.960 -->
00:41:10.280Now this was real estate, but you know what?
00:41:10.360 -->
00:41:17.880There were more millionaires made out of that recession than ever before.
00:41:18.039 -->
00:41:20.519Yeah, so it's like that's huge, but you know what?
00:41:20.600 -->
00:41:29.320I'm also a big beneficiary of that because then I started syndicating with partners, and we acquired 4,000 multifamily units over a matter of four years.
00:41:29.480 -->
00:41:34.519I don't even know, Ryan, if you knew this, but uh I knew you were doing it a little bit, but I didn't know you were to that level.
00:41:34.600 -->
00:41:35.000That's huge.
00:41:35.240 -->
00:41:45.000Oh, talk the talk, walk the walk, and then I started buying law firms, and uh actually I have my fifth law firm is closing this week.
00:41:45.240 -->
00:41:47.000Congratulations! How cool!
00:41:47.320 -->
00:41:48.920Entrepreneur through and through.
00:41:49.000 -->
00:41:52.840And I I just I love to help people reach their goals.
00:41:53.000 -->
00:41:59.640I love business, the strategy, the creativity, and how to reach really the new heights.
00:42:00.680 -->
00:42:09.640And I'm here to help you and everybody else that doesn't understand Ubit and whatever else comes to the table, because I think that's one of the most things.
00:42:10.120 -->
00:42:11.960I get asked about that the most.
00:42:12.280 -->
00:42:12.920The most.
00:42:13.320 -->
00:42:14.360Nate, you know what?
00:42:14.440 -->
00:42:15.559So let's talk.
00:42:15.880 -->
00:42:16.920I got a couple questions for you.
00:42:17.000 -->
00:42:22.920So, one someone that's in the real estate space, like an operator like me, let's say it's their first fund.
00:42:23.079 -->
00:42:29.800What is the hardest, what's one of the hardest things to overcome uh for a first-time fund manager?
00:42:30.280 -->
00:42:37.640I'll give you the two worst things in the world is if you open up your own fund, you don't have a track record.
00:42:37.880 -->
00:42:38.760Yeah, yeah.
00:42:39.079 -->
00:42:44.280You're raising capital, you're telling a good story, here's what I plan to do.
00:42:44.440 -->
00:42:47.240But if the proof is in the pudding, they don't have that.
00:42:47.320 -->
00:42:59.800And that's really where it's easier for people that are just getting started to do more of a fund of funds, meaning working with experienced, accomplished operators.
00:42:59.960 -->
00:43:01.960But also, you bring up a fund.
00:43:02.039 -->
00:43:11.320A fund traditionally means I can't even tell you what I'm going to invest into because it's into a bucket of money that I'm gonna invest someplace.
00:43:11.960 -->
00:43:13.400That's way more difficult.
00:43:13.480 -->
00:43:19.240And frankly, investors they don't like it quite as much because they don't know where the money is going.
00:43:19.320 -->
00:43:32.600They're not looking at the land, the demographics, what's getting built there, really able to judge the operator beyond just the hey, I'm gonna raise some money and invest into real estate.
00:43:33.240 -->
00:43:45.000So between the unknown of I don't know what to invest into, and the I don't have a track record either, those are the biggest hurdles of opening up a fund.
00:43:45.079 -->
00:43:45.800And you know what?
00:43:45.880 -->
00:44:03.000To be perfectly honest, that's where both of those biggest hurdles get solved by working with current operators, the guys that have already been there, the guys that can say, This is the property, this is the deal that we're working on, this is my track record.
00:44:03.160 -->
00:44:14.760And then as a new fund manager, you can borrow that credibility because it's not really on you to make the money, it's on these guys to make the money.
00:44:15.000 -->
00:44:16.280Right, totally agree.
00:44:16.440 -->
00:44:20.600Okay, so let's let's talk about, let's say somebody wants to open up a fund.
00:44:20.680 -->
00:44:22.039What's what's the process?
00:44:22.280 -->
00:44:24.920We uh let's say I have a friend I want to introduce to you.
00:44:25.000 -->
00:44:29.480Obviously, we email you, or they contact you guys, or call your call your main line.
00:44:29.559 -->
00:44:32.920What's the first step, if you will, besides an engagement letter?
00:44:33.000 -->
00:44:35.559We all know that happens, but let's talk about what you what do you do?
00:44:35.640 -->
00:44:36.200Is there a consultant?
00:44:36.280 -->
00:44:41.640Is there one is like a consultant, an hour consulting, kind of getting to know who they are and what they're trying to accomplish?
00:44:42.200 -->
00:44:51.559You know, we're unique, so I'm gonna speak about us and then them being all the other attorneys that are out there.
00:44:51.720 -->
00:44:56.600You know, we expect people to just come to the table with a napkin and a dream.
00:44:56.840 -->
00:44:59.960What are you trying to accomplish?
00:45:00.519 -->
00:45:19.320And then we take the time to back into not just what's legal, but the reality of what's going to sell, what are investors into, what terms are expected in the market nowadays because that always shifts and changes.
00:45:19.640 -->
00:45:30.120So great to work with the experienced guys, they know what they're doing, but the new fund operators that I haven't really done this for a long time.
00:45:30.440 -->
00:45:37.800That's a lot of where we take them by the hand, spend that time going through more of a consultative process.
00:45:38.200 -->
00:45:43.160And it's not until somebody says, Okay, I get it, I understand.
00:45:43.320 -->
00:45:45.480Here's the deal, here's the terms.
00:45:45.720 -->
00:45:47.160Now let's go.
00:45:47.559 -->
00:45:49.480And at that point, we get everything together.
00:45:49.640 -->
00:45:53.079It's a couple of weeks because we know what we're doing, and this is all that we do.
00:45:53.240 -->
00:45:53.480Yep.
00:45:53.720 -->
00:46:03.079Then you have a great disclosure package, you kind of think all the way through and let everybody know the risks, which is really important that people know what the risks are before they make the decision to invest.
00:46:03.240 -->
00:46:04.760So I that's one of the things I love about you.
00:46:04.840 -->
00:46:10.600And I think that's where a lot of operators, including myself, when I first started going, hold on, you put all these risks in there, you don't want to scare people away.
00:46:10.760 -->
00:46:18.519But there is, there is, there's so much truth to just full disclosure and explaining to people what they're getting themselves into.
00:46:18.600 -->
00:46:19.880And that's what I love about you guys.
00:46:20.039 -->
00:46:29.800And the more I season myself, and not to say I have this gray hair here, but the more I season myself in the space, the more I actually truly enjoy people believing in my dream.
00:46:29.880 -->
00:46:38.680So it's more like if I can articulate what we're getting ourselves into as best I can, and someone sees it and feels it excited about it, it makes me feel great, even when they know the risks.
00:46:38.760 -->
00:46:40.360You know, they're like, okay, I get it.
00:46:40.519 -->
00:46:46.440And what's nice is that I I it's my own coined term, forgive me, but I call it smart investors.
00:46:46.519 -->
00:46:50.840These are these investors that, you know, know what they're they like, for example, they know the area.
00:46:50.920 -->
00:46:52.760Like I'm gonna use Lake Avisoo, for example.
00:46:52.920 -->
00:46:56.200A lot of my investors, they are from Lake Avasu or they travel out here.
00:46:56.280 -->
00:47:03.079So they know the area, they know the demand, they they already have their own uh experience with that area, right?
00:47:03.320 -->
00:47:11.079So that's what I love about uh working with investors that know what they're getting themselves into, but then also kind of getting into the weeds.
00:47:11.240 -->
00:47:23.640And a lot of times I'm learning that people ask questions about maybe construction that they may not know, but they feel comfortable enough to ask questions that's not really you know relevant to the investment strategy, but they just are curious about what's happening, you know.
00:47:23.720 -->
00:47:34.120And I that's the fun part, you know, and and I think when you get to a point as an operator and as a fund manager where you can have fun with that and you're building those relationships with your clients, that's where you win.
00:47:34.280 -->
00:47:35.240That's where the success is.
00:47:35.320 -->
00:47:43.800And that's when, you know, regardless of what goes on, where you have a win or a loss, you know, a lot of investors will trust in you and keep investing with you, uh, even if you've had some hard times.
00:47:43.880 -->
00:47:46.760And so again, that's that relationship building that I try to teach.
00:47:46.920 -->
00:47:58.440In fact, uh, Karin, when I'm doing the, I'm gonna be in um in Tulum and speaking at Rich's yeah, event, I'm actually going to bring that up about how this is such a relationship business.
00:47:58.600 -->
00:48:09.720If you don't put that first, you're not gonna, you're not gonna be able to really um be successful, you know, all the way down to my contractors and my subs and the city, right, for approvals and planning.
00:48:09.800 -->
00:48:12.280I mean, it's a relationship business from soup to nuts.
00:48:12.440 -->
00:48:16.200So I try to advise people to always make sure that you look at it from that standpoint.
00:48:16.440 -->
00:48:18.519If you start off that way, you'll probably be successful.
00:48:18.840 -->
00:48:21.000People invest in with people they trust.
00:48:21.160 -->
00:48:22.120Yeah, and there's so many.
00:48:22.200 -->
00:48:26.760I tell everybody else, oh, you can log on to social media and find another investment, another syndicator out there.
00:48:27.400 -->
00:48:28.920People invest into the operator.
00:48:29.079 -->
00:48:29.640They really do.
00:48:29.720 -->
00:48:35.800They want to know that that's someone they feel good about, they get the warm and fuzzies, they trust them, and you know, they're gonna protect their investment the best they can.
00:48:35.880 -->
00:48:41.079You know, they can't make promises, but they can make the best, you know, try to do the best they can, and that's always important.
00:48:41.240 -->
00:49:01.559So you know, you bring up social media, and anybody can get on there and see there's 10,000 ads, and but the reality is, is the guys that are promising the world, and so many of them are like, you can get this 25% annualized return in two weeks.
00:49:01.960 -->
00:49:15.640No, I mean you have to look past the the pretty promises that don't really work out, and it truly is about the relationship and about working with the people that of course know, like, and trust.
00:49:15.800 -->
00:49:23.079Yeah, we say that, but it's honestly, I would tell my grandma that make sure you're working with people that you again know like and trust.
00:49:23.480 -->
00:49:24.760Let me ask you this, Nate.
00:49:24.840 -->
00:49:28.600So, one of our funds, our secured income funds, more of an institutionally designed fund.
00:49:28.680 -->
00:49:31.480You know, it's more mortgage-backed securities, it's a lending arm.
00:49:32.120 -->
00:49:34.280You know, Karin, you know a lot about this.
00:49:34.519 -->
00:49:46.519Um we what we what we do is we try to provide a lot of supporting data, why this investment is a good idea or what we see that's relevant, and then let investors see that data as well.
00:49:46.680 -->
00:49:52.840Uh, you know, Green Street Advisors is a great company to pull from for data uh from an institutional level.
00:49:52.920 -->
00:50:07.079They work with pension funds, hedge funds, anybody in the real estate space, um, from you know, hundreds of millions of billions of dollars in in uh in assets to to track, but also provide that type of data to operators to then pass on to their investors.
00:50:07.320 -->
00:50:21.240Would you say that the the fund managers, the operators, the successful, more successful ones are the are the funds that are created with that type of data and third-party reports and transparency components to it?
00:50:21.720 -->
00:50:27.800I I think you just mentioned the most important thing is the transparency for the investors.
00:50:28.200 -->
00:50:30.360Of course, to make the right decision, you need data.
00:50:30.519 -->
00:50:32.840Data is the most important thing in the world.
00:50:33.000 -->
00:50:35.960Uh, people don't even realize that.
00:50:36.120 -->
00:50:39.400I mean, think of all these internet companies, the Amazons.
00:50:39.480 -->
00:50:43.880It's like the reason why they're huge and big is because they have all the data that you don't.
00:50:44.920 -->
00:50:48.360The same thing applies in doing real estate deals.
00:50:48.440 -->
00:50:50.680The data is out there, but you know what?
00:50:50.920 -->
00:51:03.079The institutions, the private equity, the guys that are in the business, they receive it for making the right decisions for their business, but also for the investors.
00:51:03.640 -->
00:51:06.280You should be asking these same questions.
00:51:06.440 -->
00:51:08.600You should be asking for the same data.
00:51:08.760 -->
00:51:14.360And if the guys that you're working with don't have it, maybe they're not making the best decisions.
00:51:15.000 -->
00:51:19.559So having it and communicating it, but also being transparent.
00:51:19.720 -->
00:51:33.880The good, the bad, the ugly, this is what's going on in the world is truly what makes the well, the relationship work from the syndicator to the investor and building that confidence.
00:51:34.440 -->
00:51:38.120Let me ask you this, and this is going to be a little loaded, so I may you may have to think about it.
00:51:38.360 -->
00:51:41.480Which asset class have you seen?
00:51:41.640 -->
00:51:44.519And let's talk about recent because we always have cycles, right?
00:51:44.600 -->
00:51:46.120So let's just talk something about recent.
00:51:46.360 -->
00:51:52.200What with the operators and everyone that you work with opening funds, what asset class seems to be shining the best?
00:51:52.360 -->
00:51:56.200Uh, and and and is a good strategy moving forward?
00:51:57.720 -->
00:51:59.720Hotels, hospitality.
00:52:00.039 -->
00:52:00.680I like that idea.
00:52:01.559 -->
00:52:03.800Is it the whole Airbnb thing too?
00:52:04.200 -->
00:52:06.200Airbnb is actually a thing of the past.
00:52:06.519 -->
00:52:20.200I know it is not the best place to invest today because it's oversaturated, it's expensive, and of course, now the hotels are coming back and saying, you know what, if you're our competition, we're gonna try to squash you.
00:52:20.280 -->
00:52:24.920But we got some money, so we're gonna try to get some regulations to make your life tough as well.
00:52:25.240 -->
00:52:36.120So don't necessarily encourage people to go the Airbnb route, but hotels, hospitality, and also I hate to say this and admit this.
00:52:36.519 -->
00:52:44.200Our economy is great because of the top 20 of the wealthy and the earners.
00:52:44.519 -->
00:52:56.519So luxury condos, luxury, you know, building the the lake barns, like the things that the wealthy can afford.
00:52:56.840 -->
00:52:58.280This is different from the past.
00:52:58.440 -->
00:53:02.120Yeah, like they have the money that can do the deals.
00:53:03.400 -->
00:53:08.120Yeah, so that uh is what I really see working out today that has just been different.
00:53:08.200 -->
00:53:09.640I mean, you talk about cycles.
00:53:09.880 -->
00:53:14.519Here's a cycle of where we're at, and it's really macroeconomic causes.
00:53:15.079 -->
00:53:21.160Are you seeing are you seeing a lot of operators starting to move in different markets geographically as well?
00:53:21.320 -->
00:53:24.440They're not just let's say someone's from Southern California or just Dallas.
00:53:24.600 -->
00:53:27.320Are they starting to venture off into other states and other markets?
00:53:27.400 -->
00:53:29.160Are you seeing that diversification now too?
00:53:29.400 -->
00:53:29.960We see that.
00:53:30.200 -->
00:53:31.960Ish, yeah, yeah, yeah.
00:53:32.039 -->
00:53:33.240Karen, you're seeing that a lot.
00:53:33.480 -->
00:53:39.559I mean, yeah, a lot of it where the hot spot to do the deals, it always moves.
00:53:39.720 -->
00:53:46.280Texas is always a hot market, Nashville has been huge for a long time, Arizona goes back forever, California.
00:53:47.240 -->
00:53:47.880Yeah.
00:53:48.440 -->
00:53:58.760But it is like well, you know, I was thinking about moving back there, but then I bought a place in Spain, and I'm so much happier than I was.
00:53:59.800 -->
00:54:02.039And the price point, I remember when you sent me the video of that place.
00:54:02.120 -->
00:54:04.360I'm like, wait, how much did you buy this for again?
00:54:04.440 -->
00:54:05.160That was awesome.
00:54:05.240 -->
00:54:07.640I mean, you were like, I mean, it's beautiful, it's beautiful.
00:54:07.720 -->
00:54:08.519Good, good for you.
00:54:08.760 -->
00:54:11.640I remember you back towards like tomato Fallbrook, wasn't it?
00:54:11.720 -->
00:54:14.680When you were looking at something out in Fallbrook, you know what?
00:54:14.760 -->
00:54:16.200Just total side story.
00:54:16.280 -->
00:54:23.559Yeah, but the three things that I was looking for near the water with space and a school, good school district.
00:54:23.640 -->
00:54:27.559Yeah, you could have two out of three, but good luck finding all three.
00:54:27.720 -->
00:54:36.039So we kind of settled on well, if we can be right next to the water in Spain, we already got the space in the school district here.
00:54:36.200 -->
00:54:42.039We can just fill in the pieces, and uh, you know, my my girls, my wife, well, you love it.
00:54:42.200 -->
00:54:44.120So looking for our best life.
00:54:44.200 -->
00:54:44.920And you know what?
00:54:45.000 -->
00:54:51.559That's because frankly, we invested smart, we work with the right people, and it's all about partnerships, to be honest.
00:54:51.800 -->
00:54:52.280I love it.
00:54:52.440 -->
00:54:57.400Okay, so let's talk about stuff that also is really important, in my opinion, from a compliance side.
00:54:57.640 -->
00:55:00.519So, you know, what what do you advise your clients?
00:55:00.600 -->
00:55:02.519You know, kind of the best practices.
00:55:02.600 -->
00:55:04.920I know that's kind of a loaded question because it can go a million different ways.
00:55:05.079 -->
00:55:06.600Just whatever's off the top of your head.
00:55:06.760 -->
00:55:09.240What's best practices when it comes to compliance?
00:55:09.320 -->
00:55:13.880Whether it's, you know, from let's just say it's a 506C, uh a private placement memorandum.
00:55:14.039 -->
00:55:17.640Do you advise that they should have audited financials?
00:55:17.720 -->
00:55:24.360Um, or do you, depending on the nature of it, like let's talk a little bit about the compliance, the accredited investor uh side of things as well?
00:55:24.680 -->
00:55:27.960Uh a little bit of a loaded question, as you were saying.
00:55:28.280 -->
00:55:34.680But uh yeah, when we were working with somebody, the first question is where are your investors going to come from?
00:55:34.920 -->
00:55:36.680How are you going to find them?
00:55:36.920 -->
00:55:41.240Because that really dictates what regulation you can work with.
00:55:41.480 -->
00:55:42.039Right.
00:55:42.440 -->
00:55:47.480So accredited, non-accredited, there's there's strategies and styles for all of that.
00:55:47.640 -->
00:55:52.039So best practice is figure out what makes the most sense for your business.
00:55:52.200 -->
00:55:59.240Best practice in working with investors is say what you're gonna do and do it.
00:55:59.480 -->
00:56:06.120You know, and you you guys, I love the fact that you guys are uh for a long time were looking at a lot of our marketing content before we sent it out.
00:56:06.280 -->
00:56:17.960I thought that was really neat and really amazing because you know, when we were first getting into it, we didn't know we had to have certain disclosures on our pitch decks and even some of our marketing content on uh, let's say uh Meta, right?
00:56:18.039 -->
00:56:18.920Or some of that.
00:56:19.240 -->
00:56:26.120And I I thought that was really neat because disclosures are such an important thing when you're dealing with, you know, raising capital and solicitation.
00:56:26.200 -->
00:56:32.039I mean, you're dealing with SEC oversight, and uh, I think a lot of people get in trouble if they're not disclosing it properly.
00:56:32.200 -->
00:57:00.200And I think that is where I try to tell my friends and family they're getting into opening funds and managing that you really want someone that can help you oversee that, but are gonna basically help protect you, but it's at the same time protecting the investor because you're ultimately just providing disclosures of what you need to know before you get involved, but then also saying, hey, look, if your investor signs off on this because they've read everything, then you're protected as well, you know.
00:57:00.280 -->
00:57:01.640And I think that's really important.
00:57:01.720 -->
00:57:10.440And what I was also telling people is a lot of times you have, you know, investors go through hard times that are in a fund, and you have multiple investors in that fund.
00:57:10.600 -->
00:57:18.600And so the last thing you want too is maybe one person that just has gone through a hard time to have now a direct impact on all these other people too, right?
00:57:18.840 -->
00:57:23.400And that is something I think most people don't talk about uh that I wanted to bring up.
00:57:23.480 -->
00:57:28.680That uh, you know, is there is there a standard practice, like let's say, and forgive me, I'm just gonna throw this out there.
00:57:28.840 -->
00:57:41.160You know, if let's say uh if someone has, you know, is raising a million dollars and they have more than four investors, five investors, seven investors, is there like a standard practice to have a disclosure package?
00:57:42.280 -->
00:57:58.680Uh my opinion is two investors, and I don't care if it's a small investment, it really is about disclosing what you're doing, disclosing about yourself, your business plan, and the risks.
00:57:59.160 -->
00:58:02.840People ask, well, when do I need to hire a securities attorney?
00:58:03.000 -->
00:58:09.400Well, the answer is anytime you're pulling together people's money, and you know what, there's not a grandma exemption.
00:58:09.640 -->
00:58:14.440Like even within your family, you gotta pay attention to these things.
00:58:15.000 -->
00:58:31.880But the real reason why to have a disclosure document, even if like legally there's some things that you don't have to disclose, best practice is to make sure it's all disclosed because it's not about when things go right, it's about when things go wrong, right?
00:58:33.000 -->
00:58:51.960And besides pissing off grandma, you gotta make sure that you're protecting your investors to begin with, but ultimately protecting your family and by doing things right, and if you don't disclose what you're doing, things go wrong.
00:58:52.120 -->
00:58:56.519That's when lawsuits happen, that's when complaints, that's when audits happen.
00:58:56.920 -->
00:58:59.559And all of a sudden you say, Well, I told you.
00:58:59.720 -->
00:59:06.760And then the investor says, No, you don't, didn't you told me something else, you lied to me.
00:59:07.079 -->
00:59:10.680Well, now if it's in this disclosure document, this is what I said is gonna happen.
00:59:10.920 -->
00:59:13.079This is what it says is gonna be the risks.
00:59:14.039 -->
00:59:17.559Well, now it's in writing, so don't lie.
00:59:17.720 -->
00:59:19.880There's always a risk in investing.
00:59:20.120 -->
00:59:23.400This is why we always tell people understand your asset.
00:59:23.480 -->
00:59:27.240And I think you just told a self-directed IRA investor how to do their due diligence.
00:59:27.320 -->
00:59:33.800You know, read those disclosures, read the disclosures first, read them carefully, and you'll understand all the risks.
00:59:34.039 -->
00:59:35.720It's so it really is so important.
00:59:35.880 -->
00:59:49.800Now, more on the sophisticated operators, do you guys provide funds that have the correct verbiage for placement agents, RIAs, broker dealers, um, you know, all of that fun stuff that is also a little more complicated?
00:59:49.960 -->
00:59:59.079And then also, you know, can you guys take an operator, let's say someone who's very seasoned and has a track record, do you have the capacity to build out an offering to go public?
00:59:59.800 -->
01:00:10.840Yeah, we we help with, I know we're called crowdfunding lawyers, but we do everything from those little deals all the way up to those IPOs and Pubcos and REITs, and yeah.
01:00:11.079 -->
01:00:27.480I mean, we've we've got some well-known names that we work with that are doing massive, huge deals that they started with a little syndication, and now some of these people are nationwide.
01:00:27.720 -->
01:00:29.240So it it really is, yeah.
01:00:29.559 -->
01:00:31.079And that's part of the planning process.
01:00:31.240 -->
01:00:32.280What are your goals?
01:00:32.360 -->
01:00:38.519And if you're looking to use broker dealers, RIAs, there are certain things that you need to build into it.
01:00:38.680 -->
01:00:39.000Yep.
01:00:39.160 -->
01:00:40.360And again, just don't try.
01:00:40.920 -->
01:00:45.000Trust every syndication attorney because a lot of them are one trick ponies.
01:00:45.240 -->
01:00:49.079Think that you don't need to worry about 25% with real estate.
01:00:52.760 -->
01:00:53.480Well, okay.
01:00:53.640 -->
01:00:59.000So let's let's talk about something even deeper because I really do value our relationship.
01:00:59.079 -->
01:01:08.360And you I and for those of you that can imagine, you know, with an operation that size of ours at this point, we really just need those people to watch over us.
01:01:08.760 -->
01:01:13.079Nate, those guys that started with first syndications and now you've kind of taken zero to a hundred.
01:01:13.400 -->
01:01:15.000How's your relationship with those guys?
01:01:15.079 -->
01:01:15.960Is it more personal?
01:01:16.120 -->
01:01:22.760Do you have in-depth knowledge of their friends and family and talk to them all the time when the market's getting weird and what the hell's going on?
01:01:22.920 -->
01:01:26.120I mean, you're you're you have a personal relationship with your operators.
01:01:26.440 -->
01:01:31.880Uh, I hate to say that is a benefit and an absolute curse.
01:01:32.039 -->
01:01:32.360Yeah.
01:01:32.680 -->
01:01:36.920And absol I still have the same clients from 16 years ago.
01:01:37.079 -->
01:01:37.480Yeah.
01:01:37.720 -->
01:01:48.440Like through the good times and the bad, they have issues that you know, you have a problem with a project, it rolls into family and stress.
01:01:49.320 -->
01:01:53.320So part therapists, part best friends, part drinking buddies.
01:01:53.480 -->
01:01:57.640Yeah, like I could have sworn I didn't get a college that I didn't go to good school to be a cosmetologist.
01:01:57.720 -->
01:01:58.840Jeez, I didn't know.
01:01:59.960 -->
01:02:00.760That's so true.
01:02:00.840 -->
01:02:02.600You're kind of a psychologist all the way through.
01:02:02.840 -->
01:02:03.960Well, I really appreciate that.
01:02:04.039 -->
01:02:08.840Is Nate, is there anything that you want to touch on that maybe I didn't that you want the audience to know?
01:02:10.519 -->
01:02:13.000You're you're covering everything so amazingly.
01:02:13.079 -->
01:02:16.120I'm just here to be that uh, as you mentioned, the pretty face.
01:02:17.880 -->
01:02:18.760Karin, how about you?
01:02:18.840 -->
01:02:20.440Is there anything else you want to touch on?
01:02:20.840 -->
01:02:28.760I think a takeaway with when you think about retirement accounts is make a contribution, you know, invest in yourself.
01:02:28.920 -->
01:02:40.920And as a Amanda Hahn, my my uh CPA and a great uh a great CPA, she says invest uh, you know, invest in yourself and and uh you know and and pay yourself and not the IRS.
01:02:41.000 -->
01:02:42.360So that's what I suggest.
01:02:42.600 -->
01:02:45.480Go make a contribution to your to your retirement account.
01:02:45.800 -->
01:02:46.360I love it.
01:02:46.440 -->
01:02:51.640Now that Ryan's gone again, I his uh internet is probably just having the weirdest time.
01:02:52.120 -->
01:02:53.400Actually, that's why I came home.
01:02:53.559 -->
01:02:56.360I was having problems in my office as well.
01:02:56.600 -->
01:02:57.320So, you know what?
01:02:57.559 -->
01:02:58.519Forget you, Ryan.
01:02:59.000 -->
01:03:04.200Clearly, hey, please share your contact information.
01:03:04.760 -->
01:03:06.920I'll just make it over next time I do this.
01:03:07.079 -->
01:03:08.360If that's what's going on, man.
01:03:08.600 -->
01:03:10.039Jeez, goodness gracious.
01:03:10.200 -->
01:03:14.039I'm like, I know what I'm gonna I went to my house too, thinking I'm gonna have better internet here.
01:03:14.120 -->
01:03:16.360And apparently I wasn't right, so whatever.
01:03:16.440 -->
01:03:17.960Maybe I'll just disclose that next time.
01:03:18.120 -->
01:03:22.600Hey, if I you know, if I just disconnect, it's not because I'm really using the restroom, it's my internet.
01:03:22.760 -->
01:03:24.519So I'll make sure to put the right disclosures in.
01:03:27.079 -->
01:03:29.000This has been gone for a really long time.
01:03:29.240 -->
01:03:30.280Yeah, you know, yeah.
01:03:30.519 -->
01:03:32.760I'm actually sweating, I ran really fast.
01:03:33.000 -->
01:03:34.840So, well, thank you guys so very much.
01:03:34.920 -->
01:03:36.760It's an honor to have you a part of my platform.
01:03:37.000 -->
01:03:40.920I feel I really do feel blessed because I know when I can hand stuff to you guys, I we just don't worry.
01:03:41.000 -->
01:03:42.120You got the best of the best.
01:03:42.280 -->
01:03:46.200And so for those of you that are watching or listening, feel free to reach out to these two.
01:03:46.280 -->
01:03:51.800Uh, if you have questions about your IRAs, just the knowledge that's in this room is is priceless to have in your corner.
01:03:51.880 -->
01:03:52.840So thank you guys very much.
01:03:52.920 -->
01:03:54.519And we'll uh we'll see you guys all soon.
01:03:54.760 -->
01:03:55.079Awesome.
01:03:55.400 -->
01:03:55.720Thank you.
01:03:55.960 -->
01:04:00.760Important thing before you go, Karin, how do we get a hold of you?
01:04:01.000 -->
01:04:04.200Oh man, udirect I R A.com.
01:04:04.280 -->
01:04:08.039We're all over social media, but our website, we have so many blog articles.
01:04:08.120 -->
01:04:10.920If you have a question, we've got it answered in a blog article, I'm sure.
01:04:11.079 -->
01:04:13.960But again, it's udirectira.com.
01:04:14.920 -->
01:04:17.079And I will be a little bit more personal.
01:04:17.160 -->
01:04:21.720Just shoot me an email, Nate Nate at investmentlawyers.com.
01:04:21.960 -->
01:04:23.079Love to hear from you.
01:04:23.400 -->
01:04:23.800Perfect.
01:04:23.960 -->
01:04:24.840Thank you guys very much.
01:04:25.000 -->
01:04:26.840Have a wonderful day, and we'll see you soon.
