Podcast appearances and mentions of michael man

Audra and Raymond are back from an unintentional sabbatical to discuss Neo Noir films from the 1990s. Not to be confused with “Erotic Thrillers,” Neo Noirs echo the first wave of Film Noir in both content and style. Certain American crime thrillers of the ‘40s and ‘50s were dubbed Film Noir by French critics for their similarities: dark subject matter (usually crime mixed with fateful romance), anti-heroes with confused morals, and stylistic use of shadows and low-key lighting. These were often B-movies and almost certainly featured a Femme Fatale to lure the hero down a dark moral alley. Her appeal and danger stemmed from her empowerment. Neo Noir films are intentionally made in this model, dating 1960s to nowsville. In the period of 1989 to early 2001, Neo Noirs surged, paying homage to the classics yet everything was more extreme: explicit sex and violence, and new moral dilemmas with a heightened focus on urban decay and consumerism. Join us as we discuss Michael Man's HEAT (1995), the Wachowskis' BOUND (1996), and Curtis Hanson's L.A. CONFIDENTIAL (1997). Note: we recorded this a couple of months ago. Since then, Audra's wrist has healed and she's had time to fall down the James Ellroy rabbit hole.

In der heutigen Sendung sprechen wir über Aaron Taylor-Johnson, der wahrscheinlich Daniel Craigs Nachfolger und damit der nächste James Bond wird. Außerdem geht es um den Film "Ferrari" von Michael Man mit Adam Driver, Mel Gibsons "Braveheart", das neue Werk aus dem "Star Wars"-Universum "The Acolyte", Luc Besson und vieles mehr. Viel Spaß! Hausaufgabe für nächste Woche: "Poor Things" (Disney Plus) #NapalmAmMorgen

In this episode, Steve, Jess and Glenn met with Michael Man, the founder of the DevSecOps London Gathering and this podcast, to chat about how it all started and the principles and philosophy of the Gathering. We reminisce about some key moments as well as discussing Michael's decision to step down from running the events and the podcast.We hope you enjoy listening to this episode as much as we enjoyed recording it.DSO Overflow is a DevSecOps London Gathering production. Find the audio version on all good podcast sources like Spotify, Apple Podcast and Buzzsprout.Michael's LinkedIn ProfileThis podcast is brought to you by our sponsors:  Prisma Cloud,, and SysdigYour HostsSteve Giguere linkedin.com/in/stevegiguereGlenn Wilson linkedin.com/in/glennwilsonJessica Cregg linkedin.com/in/jessicacreggDevSecOps - London GatheringKeep in touch with our events associated with this podcast via our website.For more about DevSecOps - London Gathering check out https://dsolg.com

In this second episode with Aaron Chapman, we discuss how much interest rates actually matter. Over the past couple of years, low interest rates have allowed people to get into a deal and see immediate cashflow. But with interest rates rising, many are concerned that they are not seeing immediate positive cash flow. Is that a deal breaker? Should investors sit on the sidelines and wait for rates to drop once again? Or should investors be thinking about real estate like other business models and be willing to put their capital into a deal and expect to see profits occur over a longer time horizon? Tune in to hear Aaron's unique take on these questions.    Aaron Chapman is a veteran in the finance industry with 25 years of experience helping clients better understand, source, and finance cash-flow positive investment properties. He advises over 100 clients a month in the acquisition and financing of their investment properties and primary residences. Aaron is ranked in the top 1% of mortgage loan processors in the country, in an industry of over 300,000 licensed loan originators, closing in excess of 100 transactions per month. Episode links: https://apps.apple.com/uy/app/qjo-investment-tool/id1533823468 https://www.aaronbchapman.com/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the remote real estate investor. I'm Michael Albaum and today joining me again, I got Aaron Chapman. And in case you missed, here's prior episodes, definitely go back and give that a listen. But Aaron is a lender in the residential mortgage industry. And he's got a wealth of knowledge and experience under his belt. And today we're talking about how much interest rates actually matter to doing our deals. So let's get into it.   Aaron Chapman, welcome back, man. Good to see you.   Aaron: Good to see you too, man. It's good to be back. In fact, it hasn't been long.   Michael: For those of you that caught our prior episode with Aaron, we are recording this back to back so we figured we just knock it out.   Aaron: I don't I don't have a dozen of these specific shirts for those who are wondering.   Michael: Like, yeah, he bearded his braid exactly the same and wearing the exact same hat and funny, he's in the exact same location. So Aaron, today we're talking about how much rates really matter. And you've been in the mortgage business since 97. For those folks that didn't catch your bio and background go and get that first episode listen to let's talk about like how much rates matter, man, like rates are creeping up, not keeping up but seem to be running up as to where they were previously. And I'm hearing a lot of folks kind of get scared and spooked and want to hang on the sidelines until rates come down. So give us a little bit insight is that right thinking? Is that the wrong thinking help drop some knowledge?   Aaron: Well, it's I like to tell everybody so level of your everything has to do with a level your comfort, right? Your ability to get in there and, and slug it out and make things work? Because it all has to be about interest rate. And are you really a real estate investor, because that's why I work with as a real estate investor, opportunity is only sitting in front of you at the time that it's in front of you. And often people are trying to get the market to line up and I look at that kind of like watching a star football player sitting on the bench on the sidelines, waiting for the perfect time to jump on the field to get on the highlight reel. Well,   Michael: That's such a good analogy.   Aaron: We're on the field at the time the game is being played, right? They're not sitting on the sidelines at all. It's amazing how often people think that they have the capability to time something and most people trying to time it have never time the damn thing in their life. Right. In fact, most of them are fairly new new investors or investors with maybe you've had five or six houses. So you feel like you're a seasoned investor. I've been doing this for 24 years I've been at this since 1997. I'm barely seasoned in what I do. And the reason I feel that I'm barely seasons, because I do over 1300 transactions a year for real estate investors, I get to see where a lot of people are making decisions, or a lot of people are making mistakes and where a lot of people are doing it right where a lot of people failing or a lot of people are succeeding.   What I tell all my all the people I work with is there's this old saying good judgment comes from experience and experience comes from bad judgment, great way to learn on the grade school playground of very, very tough way to learn in real estate. So don't go about trying to figure out things that way yourself. Reach out to me, I got to see for 1000s of people have made decisions. I'll guide you through that telling you stories. I don't answer questions. I tell stories as to what I've seen other people do. So you will have practical data, not speculation in theory, and then hopefully, hopefully, we're able to guide you in a way that makes you successful now is it going to be successful every time you make a decision? No, you're going to hit a brick wall between those brick walls, that just means you got to change your direction and keep moving and keep moving and keep moving.   So then you eventually find success because you become nimble enough become successful, it does not benefit me to close a deal and you fail, because that's only one deal. I need your 100th deal. That's what makes my business work is to do this dozens of time with you not just one time and walk away. That's not the business I built. So when it comes to interest rates, you need to get comfortable with it and understand that you're never the price of money is always going to move. But what we also have is the price of housing is always moving. You know, we talked about in last episode, the average rent is going up by 12%. Year over year. I don't expect that to be sustainable. I think it's probably a go up, you know, maybe seven, but it's going to keep going right? We have we're short how many houses right now in the United States,   Michael: I think like 5.2 million or something of that effect.   Aaron: 5.2 million and what's the building looking like right now people are not there's not a lot of construction going on, compared to what the demand is. We've got a hurricane, they just wiped out on how many houses we don't even know that the full total that devastation and then the ability of the supply chain to be able catch up with that. And then of course there's talk of another pandemic coming which we saw the effects of that one, and how well handled that mess was. You start stacking all these things up rents and quarterly rental increases are here to stay. So when you're on that end of it, and you get to continue to increase your rents effect, let's do the math real quick here. Let's say, let's say you got $100,000. House, you're renting it for $1,000 a month. Right. And now you get to raise the rent by 3%. Well, they're saying you're only getting say 60 bucks a month in cash flow. That's not sexy. You're not getting excited, right?   Michael: That's a couple of Chipotle is with guacamole.   Aaron: Exactly. So 60 bucks right now, not a big deal. So you raise the rents by 3%? What's 3% of 1030 bucks, 30 bucks, nothing. It's actually nobody's excited. Again, what's really cool about is your tenant won't get excited. And I can just up and move and know the night and dump concrete down the toilet. Right? So it went up by 30 bucks. But you're making $60 a month cash flow, you're one now you're making 90. So what percentage did your cashflow go up by?   Michael: 50%.   Aaron: That's a 50% compound growth in your cash flow. So what you start to see here is over time, it's not going to happen right away. You know, it's not, it's not Swift, but it is certain that you will continue to get this compound growth in the double digits a year over year over year. But as we talked about, in the last episode, go back and listen and get my get my my tool, the QJO investment tool, and run these numbers, you're gonna find that you're paying back less and less and less for that set mortgage you have, even if the rates go eight, nine, 10%, you're paying back less, because inflation is eroding the dollar. But yet you're increasing at double digits. As far as your cash flow, there will come a point that one catches the other and you surpass it. It's much like any investment that a person does. It's amazing how we can talk ourselves into getting into other types of investment vehicles, like all but if you stick with it for three, four years, you're gonna see it really grow or 10 years or whatever. But yet you get into a house. And also we think of it as an expense. When it comes to real estate. It's not you're not spending money and going into debt. You're a business owner, that is now the pass through for this capital, you get to increase.   Michael: I love that. I love that. Aaron answer me this because I think it's something that I've been hearing from a lot of people I know for sure, in the Roofstock Academy is folks saying, Michael, five months ago, I could go buy a house for 150 grand and make 100 bucks cash flow at three and a half 4%. Now that same have that same price, the same purchase price is still 150 grand, but now I'm paying seven and a half percent that eroded all my cash flow. Does that mean I should still go buy that deal? And hang on for those first couple of years? Because I'm going to get that double digit compound growth with the rental increase? Or do I just need to go find a new deal? Or potentially a different market?   Aaron: I've got I've got a few answers that I would give right. And I sometimes depends on the individual, right? Because I do ask them Okay, so what do you think right? Now let them tell me, because I want to find out what's going on your head, right? So tell me what your first instinct is. But if they're asked me exactly what I would do, I mean, again, I might get cut out here, guys, when I was gonna have your balls attached or are they there for decoration, right? Nobody has ever made a fortune because they they want out of the gate. Nothing is ever has ever paid what a few things are paid off out of the gate, right. But most times they don't. We had a history of people making this amazing cash on cash return for the last, what 10 years, it was the easiest thing in the world to sell cash on cash return for the real estate sales side of it. I think my personal belief is the real estate sales side of it has actually put themselves in a corner, and they're trying to claw their way out of it. Because we spent so much time talking cash on cash. We never talked about the rest of the ways people made money. It never got discussed.   For the last eight, nine years. I've talked about everything but cash on cash return, if they take that metric and throw it away, take their performance somebody gave you because that's that's Greek for bullcrap. It doesn't mean anything. They made those numbers up. Right? So let's talk about reality. Right? And reality is business is going to cost you something nobody has ever opened up a shoe store was profitable in the first five years, right, you have to have a certain amount of capital to get started, everything needs a certain amount of capital to get started. You're the CEO, the CEO of your startup real estate investment firm, that means you are going to be a lot more discerning about what kind of property you buy, when you're not making $200 a month cash flow out of the gate than you would be when your before making cash no matter what happened because of interest rates are so low, they softened all the blows.   But now, because of things the way they are, you're going to become a better CEO, you're going to sink more, you're going to take more time to understand what you're buying, you're going to buy the right property. And that's what it's all about. What can you keep reasonably rented for the entire time you own it, and what can you raise rents on that's it. If you can get that to line up and that alone, you will continue you will see that compound increase we were talking about. You may have to nurse that that investment along for the first couple of years. But then you're going to get that compound set and forget it kind of growth. And that's where I tell people it's going to teach you to be a real estate investor now. The people that are not real estate investors, they're out we're not gonna have to deal with them anymore. You're not gonna have to fight with the masses of people try To get in on that one deal and bidding at too high, what you're going to have is people gonna be very, very discerning, and you're become a smarter person as a result.   Michael: Yeah, I think it makes a lot of sense. And I was just going to ask you, but I think you kind of beat me to it, do you think we're going to see the investment investor pool thin out, because folks are looking at deals and saying, the numbers don't work, I can't invest in this, or they bought deals two months ago, and are now getting burned by it?   Aaron: Yeah, I think we're going to see people get out of it. And we're gonna have some of the true investors be able to capitalize on it, that people understand what they're getting into, they're gonna jump in there, and they're gonna be able to weather this properly. Because it's about the it's about the real estate itself. It's not about the loan, it never was about the loan, you know, we had the loan was a way of getting a lot of people involved. And probably a lot of people shouldn't have been involved with, they got involved anyway, right. And so they're still going to do well, because what's really cool about that, if you got that in that loan, that 3%, or 4%, or 5%, loan, that is an, that's an asset in itself. That's a massive asset. In fact, any loan for 30 years is a massive asset. But that's even even bigger assets. So now you have a tradable commodity, if you will, because now it's like hey, I can I can hold this house, and I can literally kind of sell this into with a with an owner financing kind of deal or something to that effect.   Now how that will play out, don't say Aaron Chapman said it's okay to do this. You got to check with your lender, make sure you're not putting yourself in a bad spot, talk to an attorney, all that kind of thing. There's instruments to make that happen. I'm not your guy to guide you through that. I'm just saying that that's a valuable thing to lock money up in single digits. Think about that single digits, because if you go back to 1971, all the way till 2009, the average interest rate for somebody living in a house was 9.1%. If you take that 1971 Till now, the average interest rate was 7.76%. For somebody living in the house, that was not real estate investors. The only reason it went down from 9.1 to 7.76. Is because of quantitative easing. When did quantitative easing start, Michael?   Michael: Man, I didn't know I thought it was just gonna be an interview. I didn't know it was gonna be a frickin test. When did it start?   Aaron: I'd love to quiz everybody. Because here's why your mind starts thinking and now you're gonna remember the answer. We're gonna give it to you.   Michael: That's true.   Aaron: Hopefully, because I'm gonna ask you next time. So quantitative easing didn't start till after the crash crash happened in 2008 2008. We'll talk about that in our next time we come together because that right there had to teach resiliency to a lot of people. Well, then the government decided, Okay, we're gonna start this quantitative easing thing, we're gonna take US Treasury capital flowing through the Fed. And we're going to start buying into mortgage backed securities and into treasuries in was a corporate bonds and all of these other things. And as a result to doing that started January 1, 2009, till the end of March 2010, the Fed dumped $1.25 trillion into the market, just in that short window of time to bring interest rates down and start getting the economy going again. But now, they couldn't stop it, and they kept it going and kept going kept going, then you get to the pandemic of 2020. Now, we just talked about 1.25 trillion between March January 2009, to end of March 2010. Now you get to March 20, 2020. From March 20 to march 30. They dumped in another trillion in 10 days to basically bring the market off of where it was because the market crashed. Right. We had a massive meltdown in the in stocks.   What happens? What happens if people have more? Have stocks on margin when stocks dropped that far?   Michael: Oh big problem.   Aaron: Yeah, massive, I've got a margin call, right? Well, banks don't take our money that we deposit and just stick it in the vault, right? They invest it places, they need to make money on that money, they're gonna pay us our little pittance of whatever, right? They're gonna continue to make money on it? Well, a lot of times, they're gonna have that money into the markets and stocks and other equities. And as a result of that, they may have no margin, they did have no margin, they gotta pay a margin call. They can't just go back to the coffers. Because the the vaults empty, they have it all on investment. So they have to sell assets, what assets did they sell, they sold mortgage backed securities. Interest rates spiked during that window of time. It was it was amazing how much they spiked. The fact got to the point, I couldn't lock rates now. Now and again, the rates will be published might have five people on my team all ready to go. And I just kept refreshing the rates all day. As soon as there's ready to go, we could we'd lock 50 loans at a time. And they were ugly rates, but people needed to lock.   And so we had this message that we're going to continue to keep business flowing during that window of time. But then they got that trillion dollars dumped in there, they got seeing semi stable, they're dumping 30 to $40 billion a month in the market, sometimes more hundreds of billions of dollars a month in the market, trying to keep this money flowing. And that's how we got our interest rates down into the threes and fours.   So because of that, all that capital going in there, we had this this run on lower interest rates. So from January 2009. Up until just this last year, we had all this capital dumped into the keep the rate so that's what gave our average that a little bit lower point. But you know, some people are saying well, can we just get an ARM and wait for the rates to go back down? What makes you think they're going back down? The only time they went down from that average of 9.1 was when they dumped eight Point $9 trillion into the markets? Are they doing that again? I think they've learned their lesson not to do that. Michael: Yeah.   Aaron: So if that's the case, and let's just say that's the case, let's say, somebody's actually going to learn from history, and we're not going to erase history, we're not going to call it you know, whatever, whatever make up whatever we want to make up about it and say we're triggered by it, we're actually gonna remember this move was a bad move. I don't see interest rates getting back anything lower than what we have right now, this might be the lowest interest rates that we see in our lifetimes.   Michael: Interesting. Over the last 30-40 years, when we've seen interest rates spike like they have hasn't there been a pretty sharp decline after the fact?   Aaron: We have seen that a lot in our lifetime, just because of what I was just talking about with the Fed manipulating it. But prior to that, we didn't see that very much. We saw interest rates, hovering in fact, I got in the industry in 1997, the interest rates are in the sevens. And then that was for owner occupied. And then when they went down, like 6.875, I got this refi boom going on. In fact, you know, I was working two jobs, I was running heavy equipment in the morning, from 3am till noon, they go to the office from two till 10pm, I sleep four hours a day, for for a full year. But for the until those rates dropped below 7%, I was able to replace my income of 50, whatever, thousand a year at the time, and got full time into this industry. Well, as a result of that, you know, we got this 6% thing going on. And it never really got much lower than that we saw a window where the during the mid 2000s, that I was able to get an adjustable rate loan, like a five year ARM don't like 5.75. But that was it. It wasn't until quantitative easing do we start seeing these enormously low rates.   So we're not seeing these massive swings, like we see now, then the swings happen to be because we have a global market that everybody's tapped in, we get to see everything that's going on in real time, all the time. That's one of the really, really bad things of social media in the way our, our our technology is, what it's done for us has brought us to where we see the slightest thing happened. But on the other side of the world, it kills markets overnight. So that's why I see such massive swings. So some people think, well, if it goes down as we come right back up. We don't know that because there's another black swan waiting right around the corner. Why do we know that because we know what's going to happen in the other country when it happens.   It'd  be one thing we were just a an economy to ourselves. And it was not such a big big market mover. Now we're a global economy. And we have we have crazy people out there running countries, including our own doing stupid things that's causing such a massive swings and so much so much emotion in the market that I can't say it's going to improve. Now it's going to have to I mean, there will be some but to the extent we've seen I don't believe so.   Michael: Yeah. Interesting.   Aaron: Let me just say I pray I'm wrong.   Michael: Yeah. That makes two of us man.   Aaron: You're wrong. We're back in the season. We're good because I'm making another couple million dollars a year.   Michael: I love it. Someone if they didn't have the wisdom of hearing this show five years ago, three years ago, when they got their five, one ARM and now they got two years left on it and they got a 5% They got the ability to lock in a 6% for 30 years say? Or do they roll the dice and let it roll for another two years? See where interest rates land? What are you doing?   Aaron: I think goes back to that are your balls attached situation, just see, see what you're willing to do? Right, you're the ones guy put your head on the pillow at night, you got to be able to understand how you feel about. Me, I love to control things for as long as I can control it. I'll take my lumps. And I'll take that 6% all day long. Because I would much rather allow inflation to erode the dollar over a long period of time. Rather than forcing me in a situation like that. I've had too many people that I've talked to that did the ARM thing in somebody else's request even at my own. I mean, I did the there's something out there right now called the all in one. This is a big deal. Back in the early 2000s. We sold something very, very similar to this. It just wasn't called the all in one.   And when the market freaked out in 2008. And they started freezing these people's credit lines, I got numerous calls saying What did you put me in? Because I didn't know what was going to happen. Now I do know. And everybody says, well, they're not going to do that. What makes you think I'm not going to do that? The banking industry will do whatever the heck they want to do. They'll shut down. They will kill product, they will not honor locks. They'll wipe anything out that makes it work for them on the next day. They don't care about what they committed to today. They care about what it keeps them in existence tomorrow. As a result of that. I know that's what they do. I've seen them do it. I can't in good conscience do anything but tell person Hey, the 30 year fix so far is the only one with a proven track record.   Michael: Yeah, that makes a ton of sense. How did you think about the interest? I know you said it's not all about the interest rate. But let's put that on the shelf for a minute. If someone's got a property that they're not thrilled with its performance, but they've got this outrageously low rate and a 30 year fixed. Do you think time is going to heal that wound or do you think they should maybe look to move into something else at a higher rate, but that they might be a little bit happier with?   Aaron: I think it really, really depends upon the scenario what's making them so unhappy about it, is there a possibility to try to change whatever is making them happy unhappy about that there's something about the property, this specific thing that's creating a difficulty with it, is it just not being rented because of this or because of that, you know, it may be one of those times, we have to spend some time understanding what's happening in the market that's causing that property to be what it is, right? People coming by either I don't want to rent this thing. Because of this, or because of that, it could be a very simple thing. You know, when we own something we don't see with our lens very, very well, we see, hey, this is what the possibility is because we can only see from one angle, but when you get the whole market's angle on a multiple people are willing to come through a look at it, sit them down and ask them, Hey, can you tell me what what about this place? What would have to happen to that make it something so yes, I do want to rent this, or yes, this I can make my home for five years?   Understand that is sometimes you might have to bite the bullet, put a few bucks into it. And next thing, you know, now you have a very low interest rate, which again, that right there is, is is a very, very valuable piece in itself. And then you have whatever changed on this house that now makes it what it needs to be. And its location that might be something's completely, you know, one of these things you can't fix, right? You have to find the one person in the world that wants that and carry a note for them and see if you can swing something like that. But if it's something that's changeable because of aesthetics, or or usability, or it's just whatever that might be, you might have to bite the bullet and fix that one thing.   But investigate it first, before you try and make a very, very big decision. Like leave it as is and suck it up and write it out or dump it and move because I've seen I've got a very good friend of mine, named Joel, he owns a lot of shopping centers. I don't understand shopping centers. This guy's like the walking talking Stephen Hawking of shopping center this guy, just look at it, tell you what's wrong with it, and make it make money overnight. And the guy's amazing at what he's able to do. And because one person can't make it work, you have a guy like Joel come in, he looks at it makes an offer, they sell it cheap. He spends a few bucks. And now that thing's fully rented, and it's worth 10 times what he paid for it. It's just a matter of getting the right perspective. Take the time, understand the market, get the perspective.   Michael: I love that. I love that. Aaron, I want to get you out of here until next time, but in the meantime, where can folks if they didn't catch on the first episode, reach out to learn more about you or get a hold of one of your loans?   Aaron: Just go to aaronchapman.com And if that one doesn't work, go to aaronbchapman.com. Another good place to just Google Aaron Chapman. There's like five of us out there that pop up on Google there's only one bearded redneck lender there is a pastor there's a there's a English soccer player there is a an author and then camera with the other guy is but yeah, there's five and I'm an author as well so you can go to you can look me up on Amazon that kind of stuff. I'm working on another book got a few things cooking.   Michael: Right on man love it. Well hey, this was awesome as always and until next time, looking forward to it be well.   Aaron: Thanks, buddy. Good to see you again.   Michael: Likewise.    Alright everyone that was our episode A big thank you to Aaron for coming on again dropping some fantastic wisdom, insights and knowledge. As always, if you enjoyed the episode, feel free to leave us a rating or review and we look forward to seeing the next one. Happy investing

Mr. Fernandez is President and Chief Executive Officer of 1031 Crowdfunding. Before founding the Company, he was Senior Vice President of Healthcare Real Estate Group in Irvine, California. Since January 2001, Mr. Fernandez has been responsible for researching and compiling accurately verifiable documentation across various industries, including assembling compelling content for marketing materials related to the purchase and acquisition of various real estate holdings. He has over 20 years of inside and outside sales experience. He is personally involved in raising over $800 million of equity from individual and institutional investors through private and public real estate offerings. He hired and trained a national internal wholesaler and external wholesaler sales force. In this episode, he shares how he interprets the current state of the economy and the real estate market; and how his company, 1031 Crowdfunding, creates opportunities to take advantage of during times of uncertainty. Episode Link: https://www.1031crowdfunding.com/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum, and today I'm joined by Ed Fernandez, President and CEO of 1031 Crowdfunding and he's going to be talking to us today about the state of the economy, the market, and his company, 1031 Crowdfunding, and how we all can take advantage of crowdfunding 1031 exchanges. So let's get into it.   Ed what's going on, man, thanks so much for coming on and hanging out with me today. I appreciate it.   Ed: No problem. Michael, thank you so much for having me.   Michael: No, it's really, really my pleasure, I am super excited to chat with you, because you've got a really cool company doing some pretty cool things. So I know a little bit about it but for all of our listeners who aren't familiar with 1031 Crowdfunding give us a little bit of background, what is it that you all are doing?   Ed: Sure, so what we're doing is we're taking real estate, packaging it up and selling it to investors in little pieces. For those investors that are either tired of the tenants, the toilets in the trash, or they run out of this 45 day Id period that you have to actually do for the IRS and so if you're looking for institutional real estate, but you really don't want to go running around trying to find your own property in this limited period of time, you can come to 1031 Crowdfunding, where we have a slew of institutional property for those investors who are looking to be passive, and defer their taxes through a 1031 exchange.   Michael: Man, I love it, we are definitely going to come dig deeper into that because I was under the assumption that you couldn't turn 1031 into a passive investment. So we've got a lot to talk about. But before we get there, I would love if you could give us a little bit of insight into where you see us currently in today's housing market with all the stuff we got going on. We're recording this towards the latter half of September and 2022. What's going on man?   Ed: Well, as you know, yesterday, the Feds hiked rates again to another 75 basis points and so what's so what they're trying to do, obviously, and it's currently not working, by the way, they're trying to slow down in the housing market. But with money continuing to flood the economy, real estate prices are still exceeding and going up and people can afford real estate or housing, because interest rates are going up. So we're in a weird market today, I can say we can go back to 1991- 1992 and kind of look at that market, very similar type of events that are occurring today.   Michael: Okay, and for all of our listeners that weren't plugged in to the to the real estate market back then what was going on back then.   Ed: So back then it was the tech boom, right? Remember the tech bubble that blew up?   Michael: Yeah.   Ed: Prior to that event occurring, interest rates on loans were double digits 12-14% and people were still borrowing and buying houses and getting involved in real estate. But then the bubble burst in the tech industry and all that money flooded into real estate and that's where you had all this appreciation on the real estate side. So in today's market, even though we're not in double digit interest rates, interest rates are higher than what real estate is producing. So we're not as bad as we were. But we're actually pretty close to where, and who knows, we might get there. If the fence keep doing that. So those are the similarities where interest rates exceeded yields on real estate, and real estate just kept going up.   Michael: Yeah, that's so interesting. I mean, I remember hearing about those double digit interest rates, but I also have to think back and you could go park your money in a bank CD and make 6,7,8, 9%, which now is unheard of. So it's, again, we have these super high interest rates, but you can't make a yield, letting your money sit in the bank. It's getting eroded by the high inflation. So it's a really unique time   Ed: And I'm glad you brought that up. You know, what's very interesting is that Treasury bills now you could buy a federal backed treasury bill, fully liquid and get 4% where real estate is producing three and three and a half percent. So you're kind of seeing what's going on in this market.   Michael: Yeah, yeah. Where do you think we're headed? I want you to break out your crystal ball, change the batteries out put fresh ones in there. What's going on in the next two, three years?   Ed: You know, it's, it's, it's a weird market, you know, I'm not gonna get into the political frying pan of who's doing what?   Michael: Yeah…   Ed: Right. But if money continues to flood this economy, I don't know how you put on the brakes on inflation, if that continues to happen. So what has to happen and what I hope happens is that money tightens up so that the feds can kind of slow down and we can get real estate to a level where people can still buy a home, the millennials, those are the first time homebuyers and investors can still get a yield. I don't see that happening at least for another two years. That's where I think we're headed but we'll wait and see.   Michael: Okay and are you thinking that the interest rate hike is going to continue along that two year frame or are we kind of plateauing and we just have to wait a little bit longer for the effects to take hold?   Ed: Well, if Feds continue to raise interest rates, then now we're gonna go into a recession and how do we come out of that? So it's a fine line of how much to push and how much not to push. So we just got to wait and see, look, if I had a crystal ball, and I can tell you exactly what is going on, I would not be on this call. I'd be on my 200 foot yacht in Monaco watching F1. So I'm just letting you know.   Michael: Totally. Yeah, that's a great point to make. All right. Well, I am very curious to see how it all shakes out, I think, as are many others, but and let's transition here and talk about temporary 1031 Crowdfunding.   So someone has an asset to sell. They've, they've seen the skyrocketing appreciation and let's just walk through it like some numbers as an example. Because I find that makes the conversation a bit more concrete. someone's property is worth a million bucks. They got 400,000 and debt on it and they want to go 1031. The thing, so they sell it for 1,000,000 1031 rule says they got to buy something for at least a million, if not more. Where does sentry one crowdfunding come into play here? Does someone have to bring additional 400k that was in debt to the table to invest in have a proper 1031, how does that work?   Ed: No, no, absolutely not. So one of the one of the biggest things of a 1031 exchange is what we call closing risk, right and so you have 45 days to try to find something and then that's not, you know, there's holidays, weekends, that all counts, right? So you're out there, pounding the pavement, trying to find a replacement property within that 45 day period, which makes it very difficult. So in using your example, if an investor had a million dollar sale with $400,000 of debt, they can invest as long as they're an accredited investor and let me define that either an annual income of $200,000 a year for an individual 300,000 per couple or a million dollar net worth excluding the home you live in, you can come to our website and at any given time, we have anywhere between 30 to 50 different options to choose from and these investments are called Delaware statutory Trust, the term we use is DST been around since 2004, directly on the IRS website, and really what the DST is, is very similar to a living or family trust, where there's a trustee managing a trust for the beneficiaries, you as an investor, or a beneficial owner of a trust that's on title real property. So it could be a $50 million apartment building $100 million Amazon distribution center and for as little as $25,000, you can own a piece of this big property, right off all your expenses, like you're doing today, on your schedule II get paid cash flow on a monthly basis every 15th of the month, and when the property is sold, all the investors get 100% of the upside, and you're still in another 1031 exchange. So that's what we do. We're looking for those investors that are looking for passive investments, tired of the tenants and toilets in the trash or running out of time? Those are the ones that give us a call.   Michael: Yeah, no, that makes total sense and it sounds awesome. So if we go back to our example, of the million bucks in the in the 400k in debt, how does it work because like, my understanding is if I'm if I'm selling something for a million, I gotta go replace that with a million dollars of property. So if I go invest with you all, do I have to bring the extra 100,000, how does that work?   Ed: No, here's how it works. I'll give you an analogy. So let's say I'm a trustee. I'm going to go out and buy a $20 million apartment building. I'm going to create this broader. As the trustee, I'm going to the bank. They're approving me as the warm body, and they're underwriting the real estate, let's say they lend me $10 million. I'm the one that signs on the bad boy carve outs, and I'm the one that signs on the loan. So now the profit, I have 10 million of debt, I need another 10 million in cash. So I write a check for 10 million, and I close the property inside that trust. So to make the numbers easy, let's just call it 50%. LTV or loan to value and so let's say you sold your property for a million dollars, and you paid off the loan, and you got $500,000 in cash, and you got to buy something for a million dollars or greater. Well, when you invest in the DST, the DST already has a 50% loan on it and what happens is that it applies that debt to your position, along with the $500,000 of cash that you invest it. Now at closing, you own $1 million of this $20 million property, which allows you to satisfy your exchange.   Michael: No way. Everyone watching this video just watched my brain explode. That is why that is super cool. All right. All right, I dig it and can people invest using an entity? So like, if I have an LLC that I own this property in that I'm now selling? I need to keep that same entity, right as my purchasing as my up leg for the new property can folks use their entities to invest with you all?   Ed: Shoot, Michael, send me your resume I should be hiring you here quickly… Absolutely. So, so yeah. So you have to use the same tax ID number, right. So one of the one of the things we do in process in talking to investors is we ask them, are you owning this as an individual, an LLC, a trust and based on whatever tax ID number they're using on the sale of the property that tax ID number is the purchaser of this DST. So yes, you have to invest the way you sold.   Michael: I love it, I love it and are you I know you said you're passing on cash flows and 100% of the upside, which is insane. We're gonna talk about that in a minute but are you also passing along depreciation to the investors?   Ed: Absolutely. So whatever remaining basis they have from the sale will carry forward to this investment and based on the asset type, if it's an apartment building or residential 27 and a half years, or commercial 39 years, yes, depreciation will carry forward, in addition to that some of the opportunities have what's called a Cost Segregation analysis done on it, where you accelerated depreciation on the personal property in the first year, which is a huge help to shelter cash flow from tax.   Michael: Yeah, I love it, I love it. I've done several of those ad it's just been amazing to see what my taxes look like postclassic.   Ed: Yeah, It's good stuff…   Michael: And just getting back just for a minute on the accredited investor designation, because the question I'm realizing I've had for a while, and we always joke in the podcasts are super self-serving, I get to get educated here along with all of our listeners, we talked about the requirement having 200k as a single or 300k as a couple for the last two years. Is that adjusted gross income or is that net?   Ed: Adjusted.   Michael: Okay adjusted…   Ed: That's adjusted and here's the here's why that's required. It's because the investments in a DST are illiquid, right? So the regulatory environment wants to make sure that if you do have a financial emergency, that you have other funds to go after, and it doesn't have drastically affect your life, because you are in an investment that's illiquid. So that's why the requirements there.   Michael: Yeah, that makes sense and the alternative way to qualify as having a million dollar net worth or more, right…   Ed: Correct, or let's say you're in the financial services industry, and your securities license, and you don't have the net worth or the income, because of your professionalism and the designations that you hold that also actually qualifies as an accredited investor.   Michael: Okay, good to know. I was gonna say, yeah, because it could be kind of interesting. Speaking about cost segregation studies. If someone's got great income, but also has a great tax strategist, their AGI is probably going to be zero, if they know what they're doing and so that they could get discredited that way. But the net worth piece probably comes into play more often than the income piece, I'd imagine.   Ed: It does. Yeah, because we deal our client profile is anywhere between 55 to 90 years old and so they're always saying that they don't have the income, but they definitely have the net worth.   Michael: Yeah. Okay. Why is that? Why is your target demo in that age bracket?   Ed: It's because if you're younger, you know, I'm a control freak, right? I want to control everything. When you're younger, you want to control your destiny. Though most younger real estate investors go by their own deal, they manage their own deal, and they live or die with their performance. But when you get a little older, and you've already built up your net worth, you get tired of those tenants in those toilets in those trash, right and so you are looking for a passive way to continue to kick that can down the street, i.e. taxes and so normally the demographic is 55 years or older, they're kind of slowing down on their real estate investment portfolios.   Michael: Yeah and that makes total sense and so talk to us a little bit about what the exit looks like on some of your deals, because I was looking at your website, before we hopped on, I noticed you have some triple net stuff. So I'm just curious, you know, how are you exiting those assets?   Ed: Sure. So it's got to be accretive to the to the beneficial owner or the investors, I would say triple net lease stuff. Those are bonds. If you're looking for a Walgreens $1, General and Amazon, you shouldn't expect appreciation on those opportunities, you should just expect that coupon plus getting your money back, right? If you're looking for appreciation, which I would call more like a dividend stock. That would be a multi-tenant asset, apartment senior housing, student housing, self-storage, where you have the ability to mark rents to market which gives you that that appreciation. So the exit really is going to be based on the economics is or are the investors making money. If they're not making money, there's no reason to sell because it's still producing the cash flow, right. So as soon as the property starts appreciation to a point where the sponsor or the trustee feels okay, it's time to sell. That's the exit, you put it on the open market, you got a real estate broker, you get the offers coming in, and then you pick the best offer and you sell the property.   Michael: Love it and are you all targeting value add type of stuff, are you getting stabilized assets? What is the mix look like?   Ed: So the DST cannot use value add assets, meaning it can't move walls, and has to be stabilized assets? Unlike a tenant in common, right. 10 in common, you can do that, right, so the DST is all stabilized assets and when I say stabilized, it's either if it's multi-tenant, that's 90% plus occupancy and if it's single tenant, triple net investment grade tenant corporately guarantee and leases.   Michael: And is that regulated by the DSDM, is that a requirement of the entity structure that you're using?   Ed: That is the structure, yes, sir. That's the structure. Because if you if you disqualify the structure, You disqualify the exchange and now, people pay taxes, because it's not approved by the IRS.   Michael: Interesting. So the IRS is actually dictating what type of asset you can own in order to get this 1031 designation and benefits.   Ed: Yeah, if they're, you know, there's a specific structure and a specific way that needs to be structured. That's why a DST should have a legal tax opinion attached to it, from your securities lawyers to show that the structure is complying with this approved structure, that it should not be challenged if you invest and qualify for the deferral of tax via 1031.   Michael: Interesting, are there other vehicles out there that you could do something similar but have a value add component   Ed: Tenant in common. A tick, we call it a tick, the similarities are very similar to the point where you own a fraction of a piece of property. The differences are huge. Tenant and Commons. The investors make all the investment decisions. A tenant in common can have a capital call, a tenant in common can use non stabilized assets, a tenant in common can leverage the property and so back in 2000, and 4,5,6, and seven, the tenant in common was the most primary way of syndicating 1031 exchanges. But then and so, you know, everyone is going to agree as far as the investors are concerned when real estate goes up but in 2008, great recession, you have savvy investors, not so savvy investors. It's called hurting the cats. They disagreed on everything, right and so about six and a half billion dollars went into receivership by tips and so banks will not lend to a tenant in common structure. So your question and previously of how do I replace the debt would not happen in a tenant in common. That's why more tenant in common deals are all cash and the way they address Sit to investors is, hey, all cash, no foreclosure is owned, by the way, we're going to lever you up, pull the cash out and get it back to you tax free. Well, that's what happened in 2008 and everyone lost their money. So ticks in our business is a four letter word.   Michael: Very interesting. Okay, this is really good to know it. I'm curious and maybe some of our listeners are as well, because the investors are getting the cash flow, the investors are getting 100% of the upside, you're doing all the work, how does 1031 Crowdfunding make money, how do you all get paid?   Ed: So it's aggregating a portfolio. So yeah, we charge an acquisition fee, right anywhere between two to 4%, upfront and then we also get asset management fees, it's anywhere between half a percent to 1% off of the cash flow, but you really don't get rich doing that but the idea as a sponsor is, if you're managing $5 billion worth of assets, and you're charging a 1% asset management fee, you're making $50 million a year just unfortunately, watching paint dry.   Michael: It's not a bad business model.   Ed: It's not a bad business model. But you know, there's a lot of work to it. I'm thinking I'm kind of, you know, dumbing it down, but that's how sponsors make their money.   Michael: Okay, all right. This is great. If someone is considering investing with 1031 Crowdfunding or a different syndication, what are some things that they should be looking for? How do they go and educate themselves about the sponsor and about the deal?   Ed: You know, that's, that's a big deal right there and that's a great question because these deals have an upfront expense, we call it the load, right and even though the load doesn't affect an investor's capital accounts, so if you put a million dollars in, you're getting credit for the whole million in your cash flow is based on that whole million. The problem is, is that you overpay for that property. So let's give you that $20 million example that I used earlier, right? Let's say there's a 10% load on it. Even though I bought it for 20 million, I have to offer it to you for 22 million and even though your capital account is not affected, it's when you sell the real estate when that becomes material and so you need to make sure that the real estate can appreciate above its expenses, before entertaining a sale, right? So that at least you come out at par if you're going to invest in these things, and you're using a financial advisor to advise you to do this, the most important question you should ask is, Mr. Advisor, when does this investment overcome its upfront expenses and if that guy is any good, you should be able to tell you that, that's the most important thing when it comes to investing in these DSPs.   Michael: Yeah, that's super, a super great question to be armed with and so are most folks who are investing with you coming to you all via their advisors or via their team or they individuals. I mean, how do you find most of your clients?   Ed: So I'm, we do a lot of marketing, right. So we do a lot of SEO, a lot of SEM, I do things like this, my PR team is working. So we get anywhere between five to 700 new registrations a month on our website and we currently have about 60,000 registered investors today and so they just Google 1031 exchanges, and we pop up. So we're not, we don't use the financial services industry to distribute these products, even though we are in that service. But people normally just find us on their own or an attorney might say a CPA might say their friends might have used us. We have wonderful Google reviews. They just find us that's how they get to us.   Michael: Yeah. Okay, that makes a lot of sense and I'm wondering if you can shed light on like your worst deal ever, how it went wrong, and what happened?   Ed: That's a great so 2020 on the east coast of Florida, apartment building got hit twice by hurricanes within three weeks. Okay and you probably it's right, that time when Maria was coming and all that stuff. The property got flooded. 50% of the units became uninhabitable. Cash Flow stopped to investors, enough cash flow to pay debt service and then you had to get to the insurance companies and get the catastrophic damage insurance payment and the renter's interruption insurance payment and remember, I told you in a DST you can't do construction, right. So how do you fix the unit, right? So there's a term called a springing LLC. That's an every single DST ppm or private placement memorandum and what that what that means is that you dissolve the DST and now you're a member of an LLC, non-taxable event, your exchange is still good but now in an LLC, you can do construction, you can modify loans, you can do all these things to fix the property, right? So you go and you start fixing the property, you release the property, reinstate cash flow, right. But the issue is, you can't go your separate way anymore. You're in an LLC. So the entire LLC has to do an exchange or not. So they don't want to mess up there at 1031. So the LLC sells the property, does an exchange into another property and then two years later, the terms called Safe Harbor, you can convert it back into a DST and then everyone can go their separate ways when the property sells. That is the worst deal that has happened since I've been doing this.   Michael: And did the insurance proceeds cover all of your expenses enough in your business interruption to kind of make you guys hold in during the process?   Ed: Yeah, absolutely. So even though the timeline was delayed, the investors did very, very well. They just lost cashflow for about a year but then when the property was sold, they did well.   Michael: Yeah, I love it, I love and that's one of the things I really love about real estate investing as a whole is if you understand what you're doing the downside just isn't that scary…   Ed: Yeah, I agree. I mean, dirt is never gonna go to zero, right? It's just not gonna happen.   Michael: Right, right, man twice in three weeks. I mean, the only thing that I've heard of comfortable that I'm doing, I'm in the midst of a develop redevelopment project and I had two fires in the same building a week apart, during the course of construction.   Ed: Wow. Oh, that's not good. It's sucked.   Michael: It sucked, so… Oh, man. This has been super fun, man. If people want to find out more about you, continue the conversation invest with you, or what's the best way for them to do that and get a hold of you.   Ed: So you can go to 1031crowdfunding.com , like a crowd of people not a crown on your head, right or you can dial our number 844-533-1031 and you're absolutely you'll be able to find us.   Michael: Good stuff. Well, hey, thanks again for coming on and sharing and helping educate our folks. We'll definitely chat soon.   Ed: Michael, thank you so much. Looking forward to hearing back from you.   Michael: You got it, take care.   All right, everyone. That was our episode a big thank you to Ed for coming on super interesting stuff. I learned a ton. If you are in the middle of a 1031 or thinking about it definitely an interesting option to take advantage of. As always, if you enjoyed the episode, feel free to leave us a rating or review wherever you get your podcasts and we look forward to seeing on the next one. Happy investing…

As a lawyer in Nashville, Tennessee, Brian Boyd helps clients with real estate, construction, and business matters. It is with that knowledge that he and his wife, Dawn, have grown their portfolio to a six-figure income. Brian earned his BA from the University of Tennessee—Chattanooga, a JD from Samford University's Cumberland School of Law, and an LLM in Taxation from Georgetown University Law Center. When not practicing law or working with Dawn on their real estate ventures, Brian can be found on the Brazilian Jiu Jitsu mats at his local gym. His newest book is Replace Your Income: A Lawyer's Guide to Finding, Funding, and Managing Real Estate Investments Today Brian talks about corporate structures, how they differ, and what you could be doing to protect your assets. Episode Links: www.briantboyd.com. www.boydwills.com --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The remote real estate investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum. And today with me, I have Brian Boyd, who is a legal tax professional as well as an author and active investor. He's gonna be talking to us today about what we need to do to protect our rear ends. So let's get into it.   Brian, what's going on, man, thanks so much for taking the time to hang out with me today. I appreciate you.   Brian: Hey, Michael, thanks for having me today. I'm glad to be here.   Michael: I am super excited to chat with you. Because you are a legal attorney and investor something we don't often see too much of.   Brian: Yeah, I am. I started out in Washington, DC as a tax attorney at a company called Ernst and Young. And over the years, I got into real estate and investing because I was representing a lot of contractors and developers and started looking at the way they were doing their businesses. And from there, I started tweaking their models trying to figure out well, how can I make this a little bit more tax efficient, create a little bit more loss with a lot more cash flow. And so that's when my wife and I in 2017, decided to get into real estate investing on our own. And now we're up to 25 doors, and we're cash flowing just fine. You know, in, in fact, maybe in the next year or two, she could step away from her full time job. And we'll just manage real estate.   Michael: Man, I love it. And so is your background in tax or on the legal side of things, or both.   Brian: So I have a JD and I have an LLM, which is a master's degree in, in law. But It specializes in tax. So yes, I do corporate formations. I do business transactions, helping people the real estate, anything and everything to do with businesses, individuals and their finances. In real estate investing. That's what I do. So there was a time I used to go to court, but I don't go to court anymore. My partner goes to court, and I just do business transactions and real estate investing.   Michael: Man, I love it. And before we get everyone's hopes up, you are located out in Tennessee. But is that the only state in which you practice in? Or can you help folks all over the place?   Brian: So I am licensed in Tennessee and Vermont of all places. My partner is licensed in Tennessee in Maryland. But if it has to do with federal law, I can work all over the country. However, if people are asking specifically about California law, I'm not your guy, call a local attorney speak to a local attorney. But from a structural standpoint, I can give you the basics and kind of point you in the right direction. But unless you're in one of those jurisdictions, and you want me to practice in those jurisdictions, those are the jurisdictions I'm limited to.   Michael: Okay. Well, let's talk about that for a minute. Because I think we were chatting before the show, we hit record, and there are a ton of Californians physically moving out to Tennessee. But my guess is they're probably a lot of Californians investing out in Tennessee. And so for those folks that maybe live outside Tennessee, but are investing in Tennessee, in terms of structuring their team around them, should they be thinking about having a local attorney local to them, as well as someone such as yourself or a an attorney located where the property is? How should you be thinking about that?   Brian: No, that's great question. I actually had an attorney contact me a few weeks ago and he is a he's in Chico, California. He called me and said, Hey, I properties in Tennessee. Can you help me on what? Yeah, I'll absolutely be happy to help you. And so what we did is we structured a Tennessee holding company with a wholly owned Tennessee subsidiary. And even though he's out there, he owns the LLC here. And as he invests around the country, like Texas, or Florida, or you know, any of the other states, you know, we'll set up other holding companies to represent those entities. But he can stay in California and own these companies, as long as they're structured properly, to pass through to him over in California.   Michael: Okay, awesome. Well, Brian, give us like, the quick and dirty if there is such a thing of what investors need to know, because I think a lot of our investors are starting to scale their portfolios that got a couple of deals under their belt, and they're really looking for some asset protection. What are some things they need to be aware of and where have you seen people go wrong?   Brian: So I have seen people go wrong with a few misnomers about what they believe series LLCs are and what land trusts are. So a series LLC, I know that everybody hears therefore multiple properties. and they are. But they also don't understand that when you have a series LLC, you have to have a separate bank account, a separate tax ID separate books, all of that creates an administrative burden on you to keep all these bank accounts separate all these books separate all these tax IDs separate. And typically I see those used more efficiently if you're a developer, that way you can develop a series, sell it, and not worry about it. Again, if you're holding your assets in series LLC, and you have series one through 10, for example, that's 10 tax IDs, that's 10 sets of books, that's 10 book keeper entries every month for those separate things.   Whereas if you just have an LLC, and you treat it properly, so your corporate veil cannot be pierced. And a corporate veil is the corporate formalities that you have to adhere to. So your corporate structure is honored by the courts. And typically, here are the things that people get popped for, they'll pay for their groceries out of their LLC, they'll pay their own mortgage out of their LLC, or they'll just treat their LLC like a checkbook. And that's not what it's for. It is a standalone entity, and it has to be treated and respected that way.   So if you don't do those things, you're fine. Your one LLC is going to handle it just fine. For example, my wife and I have, we have a parent company, and that parent company has two LLC is underneath it. And one LLC is for our portfolio over here. And the other LLC is for that portfolio over here. And it all flows up into the holding company, which is a perfectly fine way to structure your holdings. Yes, it is more filing fees every year, it's three filing fees. But if you're trying to get away from filing fees by creating a series, LLC, you're losing the war to win the battle on a filing fee. Because you're gonna pay all these other expenses for tax IDs and book entries and bank statements. And you're just creating a mess. I would not use series LLCs.   Now as it relates to land trust, we mentioned that earlier, I've heard a lot of people say, Well, I want to use a land trust. Why do you want to use a land trust? I understand that land trust, get it out of your name. And I'm well aware of that. But it doesn't really create any protections like an LLC would. A lot of people say, Well, I want the anonymity of an LLC, well, you can have the anonymity, you know, of an LLC without using Land Trust. Many states, Wyoming, Tennessee, Texas, you can file your LLC documents, and your name won't appear anywhere on there as long as you use a registered agent. So you can receive the benefits of the anonymity that comes along with the land trust by simply using the LLC. And you'll get more protections with the LLC.   So I would encourage your listeners to go talk to a lawyer about setting up an LLC to hold their assets, I tend to eschew Land Trust, they don't really provide the protection that people think they do. Unless you're using an irrevocable trust, which is a trust that gets it out of your estate. Not only does it get it out of your estate, it gets it out of your control, and you can't do anything with it, you have to go through a trustee and that trustee is supposed to use their best judgment on what to do for the trust. So think about that, as you move forward. And these these ideas that people read about online, I really like LLCs, my wife and I use them, I encourage my clients to use them. So that's just coming from my experience and what I do day to day in my practice.   Michael: Yeah, from a lot of the folks I've spoken to it sounds like the LLC has come like the Colt 45. For real estate investors. It's reliable, it's standard issue, it can do a lot of the things you need, you need it to do. It's nothing fancy, it just can get the job done.   Brian: No, absolutely. I agree with that statement completely. Okay, cool.   Michael: And, Brian, I think you're a good person to ask because I think we have similar styles of investing and asset protection, which I'm glad to hear. It sounds like you've broken down your portfolios into two separate LLCs What comfort what level of comfort do you have with the size of your portfolio in each LLC, before you want to further break it up or bring additional LLC online?   Brian: And you know, that's a good question. So the way we have treated our LLCs is we go by city, what's in each city. So for example, in Chattanooga, we have an LLC for Chattanooga, and Knoxville and Gatlinburg, we have an LLC for those properties. And in our short term rentals are Montana and the West Tennessee property. We have a separate LLC for that because they're out west So we've kind of broken it down over here, over here and over there. And then we have a parent LLC over top of it. So it's not really a matter of the number of doors or number of properties that have in an LLC. For me, it was geographic, and being able to keep everything separate. And especially for our bookkeeper to know that, hey, these are Chattanooga, they're in that LLC. When you run that k one, it needs to include all these properties. Same over here. So it wasn't a matter of my comfort level with the number of properties, it was just a matter of how can I segregate out all the separate assets that we have and make it user friendly? And also, we're not clumping all of our assets into one LLC. We're spreading them out. But we're doing it geographically.   Michael: Right. Okay. And as you and your wife do start to scale, I mean, is there a number of value that you that you'd see hitting in a particular LLC and saying, oh, that's maybe a little heavy, and that LLC, even if I'm investing in the same geographic area, let me bring online, another LLC, just so I don't have so much value sitting in a singular bucket? Or is not? Is that not really a concern of yours?   Brian: No, that's not really a concern. And here's why it's not a concern. It's because it doesn't really matter how much my entire portfolio is valued at, I'm always going to be deploying that equity somewhere else to get into another deal. And that equity may get deployed into another LLC. So it's not really a matter of oh, we're too heavy in this particular market. If I had 1000 doors in Chattanooga, I would still leave everything in that one LLC.   Michael: Okay, right on. Let's talk about insurance for a minute. Yeah, how much is enough?   Brian: I would tell people, you can't have enough. You can't. So we, we have homeowners insurance on every single property. And then our LLC is have business insurance as well. So we also have business insurance for the LLC. And each property is fully insured. And then we require renters to have homeowners insurance. And on top of that, we require renters to use a product called say Rhino, which is security deposit insurance. So they're not paying us a security deposit that we're holding an escrow for them, they're paying monthly, you know, let's say, you know, a month's rent is $1,000, we typically require two and a half months of rent for a security deposit, will Rhyno only requires them to pay like $8 per 1000. So they would much rather pay 20 to 24 bucks, as opposed to tune $2,500 in security deposit. And over the over the year, it comes out a lot cheaper for them. And we're safe and secure, knowing that as long as they're paying that Rhino insurance. If we have to make a claim, it's there, we've got it, they'll take care of it. So we're we're layering insurance, on insurance, on insurance with every everything we can do. So not only from a corporate standpoint of the company, and the asset, but also the tenants and the security deposit. So that's four layers of insurance.   Michael: Run that by me again, what rino does so so they are basically ensuring the security deposit, then you can make a claim for damage against that security deposit up to that limit.   Brian: Yes, yes, absolutely. That's exactly what they're doing.   Michael: And what about the tenant that goes haywire, decides I'm gonna stop paying rent? I'm not paying this right. No nonsense. So they stopped paying it. They've paid six months to date. How does that work?   Brian: Yeah, we make a claim. Like if, and so we're, we're on top of our rents and our tenants. And it's in our lease that you have to pay all this stuff. And they do. And if they don't we just make a claim immediately.   Michael: And how is your claim experience spin with those folks?   Brian: We haven't had to make a claim yet. But the person Yeah, the person I learned this from, he turned us on to it. And we're like, what, have you ever made a claim? He's like, Yeah, they paid us in four days. I'm like, done. You know,   Michael: Yeah, I'm sold. I gotta go check this company. What's it called?   Brian: Say Rhino. Okay. And, you know, we looked into it. I did my research on it. I think they just did another round of fundraising. And we were sold. We've talked to him, they're easy to work with. They won't reject any of your tenants regardless of credit. As long as you approve them, they're approved. So I take it look, yeah, no longer holding escrow and no longer dealing with security deposits. Let them deal with it. And our experience so far has been great. Let's knock on wood. I don't have to use it. But if I do They'll also pay attorneys fees. So, if you have to let somebody Yeah, go make a claim.   Michael: Man, this podcast just took a wild left turn, but I love it. I've totally here for it.   Brian: Yeah, it's, it's, it's great. And that all goes into ensuring our company, ensuring our tenants making sure everything's taken care of, but also protecting us, because we have put a lot of money a lot of time into these assets. And, you know, we want to protect those assets.   Michael: Yeah, no, it makes total sense. Speaking of Brian, let's talk about this topic for a minute, because you're another good person to ask because you have both short term and long term rentals. Do you see a difference in risk exposure between the two and grouping both asset classes in us in the same LLC?   Brian: No, I don't. The only risk that you run with short term rentals is the seasonal market. In that, you know, we were just talking about Gatlinburg, you know, and people don't realize that the high season is actually summer in Gatlinburg, and it's not winter, which is kind of weird. But yeah, people don't want to go to cabins in the winter. So you've got to be able to weather those low months. But no, I would keep both assets in the same LLC if it's in the same geographic area for me.   Now, that's not to say it's not right for you. And you know, we could also talk about what's best for you. But no, it doesn't matter to me. Because for us, as everything flows up into our tax structure, we've created this, this LLC step tax structure, that everything flows to the top as a pass through. So everything's flown to the top and the parent company pays all the mortgages on everything. So if you have long term rentals that are just, you know, clicking along and you have a week, month, say in Gatlinburg, like we both know that January, February is a week, month in Gatlinburg. You know, there's plenty of money just to go ahead and pay that note. So that's, that's how we do it. And that's what I encourage clients to do. Because you're, you're not really breaching the corporate veil of everything flows up in the parent company's paying for everything. And that's how we structured it. So we're still, you know, adhering to the corporate formalities, respecting those corporate formalities, and everything is paid from the parent company.   Michael: Okay, cool. And then from like a legal risk mitigation perspective, short term rental doesn't sound like it poses any additional risk as compared to a long term rental.   Brian: No, I wouldn't think so. Because the the management companies and I don't know, if you use the management company, but they have them sign all these documents, and they have their own attorneys, or all these waivers in there, and they have to put a security deposit down, you know, to rent the property and, you know, a cleaning deposit. And there's so many different deposits that we tend to get good renters at all the properties.   Michael: Okay. Okay, fantastic. And as someone is thinking about scaling their portfolio into multiple properties, maybe some different asset classes, from an entity structure, is there anything that they should be aware of, or they should be doing differently, if they've already, you know, started using LLC us in the past?   Brian: I would stay with LLCs. If you if you turn to like a C Corp, you get the double layer double layer of tax. If you turn to an S corp, I think you're gonna have to deal with more corporate formalities than you are with an LLC, an LLC is very flexible with what you can do with it. I wouldn't go with a partnership, a general partnership doesn't tend to have the protections nor does a limited liability partnership. You really want the corporate structure of the LLC to stay in place.   So there is no other entity out there that I would encourage people to use other than the LLC. You know, reasonable minds can differ on that. I wrote a chapter in the book on it. But at this point, I am not advising clients to use any other structure other than the LLC, it's very flexible, it's easy to buy and sell assets through and quite frankly, you know, it's it's easily respected in the state of Tennessee and in other states as well, I'm sure you know, LLCs are just common now, you know, as common now as s corpse were in the 60s 70s 80s and up to the 90s.   I would also encourage people to look at Wyoming, Wyoming is on the cutting edge of LLC formation. You know, they recently came out with a new type of LLC that has to do with crypto currencies and blockchain protections. It's it's crazy what they're doing out there. Tennessee follows shortly thereafter and we're all still trying get our heads around it because one, I'm not a crypto guy. I don't know a whole lot about it. But you're starting to deal with like blockchain technology for the way people can vote. It's, it's really fascinating. So I do like Wyoming, I have a Wyoming LLC for one of my assets. And, you know, it's a great state as well.   Michael: I dig it. You mentioned your book, let's talk about that for a minute. What's it called? Where can people find it? And what should they expect to find if they get a   copy?   Brian: Sure. It's, it's called replace your income, a lawyer's guide to finding funding and managing real estate investments. And they can find it on Amazon. Or they can go to www.BrianTBoyd.com. And they can order it through there. So the reason I wrote this book is because I'm having conversations very similar to what we're talking about now, about, how do I form things? What do I form? Why do I form it? Should I put all my assets in one LLC? And this book came about as a compendium of all those conversations I've had over the years with, with clients in real estate investing, how do they get started? How do they find properties? How do they get a loan? You know, what kind of loans are available? What platforms do I use? Do I do I use, Say Rhino? Or do I use Bildium? Or, you know, what's available? How can I do this using technology to leverage efficiency here? And so it's 13 chapters on all of that, including tax benefits, finance tips, how to structure an LLC, what you need to think about when you're putting together an operating agreement? You know, what's the difference between an operating agreement and bylaws? What's the difference between a charter and an articles of organization. I try to break it down. As if I'm talking to my 11 year old son, anybody can understand it. And that's what I want people to know about this book. It's, anybody can invest in real estate. You don't have to be a professional or have, you know, a six figure income, you can be a college student and start house hacking. You can easily you know, get a loan go buy a small two bedroom, one bath apartment somewhere, and get a roommate, move a roommate and then charge them rent and now your house hacking and now your real estate. And so it's possible for everybody.   Michael: Yeah, I love it. I love it. Brian, curveball question here. What's the best compliment you've ever received?   Brian: That I married up?   Michael: Is that Is that a compliment to your wife? Is that a sort of backhanded compliment to you?   Brian: It's probably a backhanded compliment to me, but I I, I could not do what I do without my wife, my wife is, you know, she's an inspiration. She basically runs the entire company. She only lets me talk to people if she can't figure it out. And she is the backbone behind this company. And the funny thing is, I had to drag her into real estate investing, I kept telling her about all the tax benefits of this honey, we can, we can make passive income. And, you know, let me tell you about appreciation and depreciation and how we can, you know, offset some of our income taxes. And she didn't believe me. Now, mind you, I have a master's degree and like, I went to school to do this. And I actually did this for a living for years. And somebody handed her Rich Dad, Poor Dad, and she read it and we're lying in bed when I was like, Hey, did you know that? If we did this, we could pay for a car?   I was like, yeah, she's like, did you know we could write our phone bill up? I'm like, Yeah, I did. She's like, did you know like, we could buy a computer and write it off in one year? I'm like, yes. I've been telling you this. And she doesn't believe it coming from me, the guy who has two graduate degrees and does it for a living, but she believes it from the guy that wrote the book, and I'm like, Okay, well, maybe I need to write a book and she'll she'll listen to, but she still doesn't listen to me. So it is what it is. But she she runs this company. And you know, I couldn't do without her. So when somebody says, I'm married up, I'm like, Yeah, I did. And I'm very lucky I did.   Michael: Amazing. So amazing. Well, Brian, that brings up maybe my last question for you. Before I let you out of here. I think there are a lot of folks probably listening to this that have a partner significant other that aren't interested or aren't involved with a real estate investing, but they would really like them to be or they need them to be. And so you went through this struggle with your wife, how how should people be thinking about bringing their other partner into the fold?   Brian: What I would tell them is you don't have to buy the book. You can look online and see the tax benefits of it. Is that You're going to create positive cash flow. And you're going to create tax deductions that's going to offset not only your cash flow, but your current income tax liability. So if you would like to pay less in income taxes every year, look at real estate investing. Look at it. You know, if you decide not to do and it's not for you, okay, don't do it. There are other things you can invest in. But our Congress has codified our public policy of investing in real estate in our tax code. It is there for you to take advantage of, look, when it comes tax time every year, I always kind of get a little tense, but then I'm like, Okay, well, let's go go buy another property. And then we can cost segregate that property, accelerate the depreciation, and create a larger tax deduction for ourselves, and it's not so painful come tax time.   I'm sure you know that as well that, hey, we can cashflow this property. And, you know, the government actually is encouraging us to go buy real estate, the government is encouraging you to succeed. And that's all I want for anybody is to succeed. You know, this book, I think it's 19.99. It's a lot cheaper than sitting down with me for an hour. And this is everything I've already talked about with people, and I do on a regular basis. So if your spouse is struggling to get on board with your idea of real estate investing, you know, maybe buy the book for them and show them that, hey, this is possible.   You're talking to a guy who worked two jobs to put himself through law school, and then two jobs while I was in graduate school on top of that, and I'm still paying off student loans. But you know what, I paid off a student loan last week. And I did it because we got a refund. That came back to me as a result of the deductions I have through real estate. And the first thing I did with that check was, hey, it's enough. I'm going to pay off that loan. And I did. So it's, it's a real example of how real estate can affect your bottom line.   Michael: I love it. That is awesome. And congrats on getting that loan paid off. That's really exciting.   Brian: Oh, thanks so much.   Michael: You got it. Brian, we're gonna get you out of here. If people want to continue the conversation, learn more about you. What's the best way for them to do so?   Brian: They can get in touch with me at the law firm. The website is www.BoydWills.com. And, you know, you can reach out to me on the Brian T Boyd, Facebook page and on Instagram.   Michael: Okay, amazing. We'll be sure to do that. Brian. Thanks again for sharing some amazing wisdom man. Appreciate you coming on. We'll talk soon.   Brian: Thanks, Michaels. Good to be here.   Michael: You could take care.   All right, everyone. That was our episode. A big thank you to Brian for coming on and sharing some wisdom about LLCs asset protection, tax benefits and some loopholes that we can take advantage of as real estate investors. As always, if you enjoyed the episode, feel free to leave us a rating or review wherever you get your podcasts and we look forward to seeing on the next one. Happy investing

Le film Heat, de Michael Man, avec De Niro et Pacino…vous voyez ?C'est l'histoire éternelle du gendarme et du voleur. Le chat et la souris. Et bien, l'histoire est vraie…Et cette scène, culte, De Niro et Pacino ensemble dans un café…Vous voyez ..Elle aussi est authentique…Texte & Voix : Eric LangeEncore plus de Podcast à écouter ici sur PODCAST STORY

Ce 12 Juin 2022, Adélaïde Charlier, cofondatrice du mouvement «Youth For Climate » nous parle de Michael Man

I sit down with Captain Frank Michael, USN (ret.) Frank is a man in the Arena. He led rescue operations responding to the  Tsunami in Indonesia. A year later he led helicopter operations following Hurricane Katrina. He was later on scene assisting with the rescue of Captain Phillips off Somalia. In retirement he advocates for Veterans and their families at the Military Officers of America Association (MOAA.) 

Matt Faircloth is the co-founder and president of the DeRosa Group, a real estate investment company that specializes in buying and renovating residential and commercial properties. Matt and his wife, Liz, started investing in real estate in 2004 with a $30,000 loan. They founded DeRosa Group in 2005 and have since grown the company to managing more than 370 units throughout the east coast. DeRosa has completed more than $30M in real estate transactions involving private capital—including fix-and-flips, single-family home rentals, mixed-use buildings, apartment buildings, office buildings, and tax lien investments. He is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets' educational webinars. In this episode, Matt shares his background in real estate investing, and a roadmap for investors looking to raise more private capital to close more deals. Additionally, he talks about the reality of running a real estate business.   Episode Links: https://derosagroup.com/ https://www.instagram.com/themattfaircloth/ https://www.linkedin.com/in/mdfaircloth/ https://www.biggerpockets.com/blog/contributors/mattfaircloth --- Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today with me I have Matt Faircloth, author, podcast speaker, co-founder, president, investor, syndicator. He does a lot and we're gonna hear a ton from Matt about what he's been doing in the real estate space, and what he's currently putting together and actually closing on today. So let's get into it.   Matt Faircloth, thank you so much for coming on the show today. Really appreciate you taking the time to hang out with me.   Matt: Michael, I appreciate your time and having me on your show, man. Thank you.   Michael: Absolutely, absolutely. So I know a little bit about you but I would love if you could share with our listeners who maybe have never heard of you. They've been living under a rock for the last couple of years, who you are, where you come from, and what you're doing in real estate?   Matt: Where did you come from…   Um, it's cool that my company's called the DeRosa group and I just love saying this, that we're a company dedicated to transforming lads real estate through real estate transforming lives to real estate. We can get into that in the show if you like. I… where I came from, let's see, I grew up Baltimore, bopped around the East Coast for a minute. Before I landed in Philly, met the woman of my dreams because she put Rich Dad Poor Dad in my hand, and we were still dating, that got me to read that. And that that gave got me to drink the entrepreneur Kool Aid, which I guzzled and quit my job in 2005 to start a real estate company, bumped into a lot of walls, you know, did a lot of it, made a lot of mistakes, made some money and then and then just built it and grew over time and just learned how to run an effective real estate company through the school of hard knocks. And now I've been doing it for 16 years and just apply what I've learned over the years, you know, attracted more and more the right people who work with me and build what I think to be a phenomenal brand now.   Michael: Oh, that's awesome, man. That's awesome. You said that once or twice before I can tell it just rolled off your tongue there so nicely.     Matt: You know, this is not my first podcast. Sometimes people ask me, let's just get real, screw it, man. Let's get real right now…   Michael: Let's do it.   Matt: What I get I go on a lot of podcasts and when you go on a lot of podcasts, people tend to ask the same questions, Michael, right and so when they do, it's almost like I'm that guy, I'm the DJ sing in a DJ booth and then in the in the DJ booth of Matt's brain. And then people ask like, Hey, Matt, tell me about your first deal and I'm like, okay, let's get the first deal track pull the first track.   Michael: Go, pull the file.   Matt: You know, yeah, go pull the file, first deal, right. Tell us about the first time that you raise money, tell us about a mistake you made. Okay, let's go ahead skip, let's go pull up mistake file eight. Okay, let's write that file out, right. So it's more fun to go curveball. You know, like…   Michael: Totally   Matt: Yeah, that was a good curveball in the first five seconds of the show that you and I went down right and you into it, you can't help it you end up just going to a script a lot of times you know talking about things on podcast over and over and over again and I was it that a want to be plastic like that, but you end up like, if I've told that story six times the seventh time it starts to come off the same way over and over again, right.   Michael: I totally get it, and I hope that today is not one of those repetitive podcasts.   Matt: You're getting not to be that show already man, you are curve balling, I love it. Keep it up!   Michael: Well as a follow up Matt, what's your favorite mammal, man?   Matt: It's good one, I am, okay, growing up, I have an eight year old, right, so my eight year old is always: Daddy who would win… I wish he was here because you and me, we would have a ball right now… Daddy who would win when a colossal squid or a great white shark? And I'm like Simon, first of all like, but he'll even be like a gorilla or a colossal squid and like girl is gonna drown buddy battle…   Give me more data, that would depth are we talking about the ocean? Are we talking about like 3000 gorillas... To you question, I probably go a gorilla, if I had to pick or, or maybe I don't know why, but growing up I loved Black Panthers.   Michael: Mm hmm. Okay, pretty majestic animals.   Matt: Yeah, I don't know, I don't know, the majestic, they are majestic animals. Yeah, so that would be my favorite, those are my two favorite man…   Michael: I love it, well so real real quick change because we're already on this rabbit hole. You know that there was a show put on by I think NatGeo or discovery that answered your son's questions they would pit these two animals together in a simulation… like that exists…   Matt: You can google and they would show cuz he would be like, daddy who would win a saltwater… It's just you can google saltwater crocodile versus great white shark…   Michael: Great white shark, I saw that episode…   Matt: It's good, it's good, right. Good job displaying well you see the saltwater croc would try and take the deathroll on this or do that...   Oh, he was my son's itch was scratched with that, you know. I don't know, why he is up to the Komodo dragons. Komodo dragon versus anything you can name, that's what you want to talk about…   Michael: That's a battle royale this century… Oh my god. I love it.   Matt: Well, dragons are badasses man, these are like, there they are… Would you know that?   Michael: Yeah, that's the kiss of death, yeah… Matt: It is! Not only the monstrous lizards like little dinosaurs, but they also the venomous bite, you know…   Michael: It's such a ridiculous concept like, oh, let's take two of like humans worst fears, like, long tailed long tongue lizards, and then give it venom, sounds awesome.   Matt: Right! Give it nasty teeth. Yeah, like a really weird awful roar and give them venom, too…   Michael: Oh my god, so good.   Matt: They're nasty creatures, man. Good thing that'll make them in North America.   Michael: I know, I'm stoked, I'm stoked. All right, well, if we bring it slightly back towards the real estate, you know.   Do you want me to do a whole podcast on mammals like komodo dragons… So you started a company, your real estate company in 2005 and when people hear that, I think it might be ominous to some people, you know, what is a real estate company mean? And so what was the transition, like, I mean, like, what is the DeRosa group do first and foremost and then what was that transition, like going from just owning stuff on your own to now I have a business focusing on it?   Matt: That's interesting, you know, that man, um, interesting concept, because a lot of people out there are running real estate investing, like it's a gig, you know, like, or it's like driving Uber, you know, you could just decide to not do it at some point, you know, I mean, it's not a gig, it's a real estate investing is a business because it's a marathon, unless you're wholesaling or just doing a deal here and there something like that. Not for nothing. This business… the business of real estate investing is a business and you should treat it as such. And we didn't always do that the first couple years, I treated it like a hobby and I bumped into walls and did a bunch of different things but like once I really got my legs underneath me, as a real estate investor and really found the calling found the purpose and got and got and got focused on real estate investing. I got clear that it's a business that is like a living animal it's a it's a living thing…   Michael: It's a living Komodo dragon?...   Matt: Real estate investing is like a Komodo dragon, right, it needs food, you know… It can have a venom's bite and can be nasty and shit and can get the fuck out of you. And a lot of people are scared of it, you know, right… Yeah. People read articles about it only exists in certain places we can keep going. But it is something that needs, you know, if you want to grow real estate investing business and sustain yourself in this, in this industry, and not just make it a hobby, you have to have a company that's got you know, clean books and has a purpose and has a mission and has roles and responsibilities and job descriptions and stuff like that, because there's sucky things in real estate you have to do and it's like, well, you know, and you could look on Instagram. And if you look on Instagram for real estate investing, people think that it either means you close deals every day, because it's the people every time people close stuff, they put it on Instagram, or they go to it's like, Instagram thinks that for real estate investors, all you do is close deals, go to conferences and go on vacation That's what you see people doing on Instagram, the real estate investing, right? But there's actually like, this sucky part of real estate investing, which is sitting on your desk and answering emails and you know, just corresponding and looking for deals and swinging and missing and dealing with knucklehead tenants and stuff like that that want to, you know, recently Michael, we had a tenant, had his girlfriend come in and he must have done something bad because she went, put all his clothes on his bed, dumped gasoline on the bed, lit it on fire, walked out.   Michael: Mike dropped…   Matt: This is what happens, that's real stuff, you know… That did not make on Instagram unfortunately, you know…   Michael: No, that wasn't the highlight reel.   Matt: Living my best life, look it's amazing…   Michael: Well, so you bring up a really great point that and that it should be treated like a business and I, I wholeheartedly agree. But so what about all the people out there that are just getting started that could never see themselves as a business owner as an entrepreneur but hear about real estate investing as a great side gig like you mentioned that what about what about all those folks? Where are they left?   Matt: Okay, they need to decide if they want to do it full time or not, right…And there are people out there that have a day job that they love and it's, it's probably something that's very fulfilling to them, or maybe they went to school for a long time, like a doctor or an MD or whatever. I mean, Jesus, those folks go to school, God bless them for like another 12 years after they get out of college, right? So why would they change careers, right? They want, there are people that really in their heart of hearts probably ought to go passive for real estate investing, as a side gig and as a way to build wealth. And there are people that that are doing it because they want to build up the passive income and become a business owner out of it. So you got to choose if you want to be an investor or be, let's remember Robert Kiyosaki Cashflow Quadrant book, right. Yes, ESBI, remember that thing?   Michael: Mm hmm.   Matt: Do you want to be a B or an I, B= business owner, I= investor. And if you're willing to put in your time and and you know, quit your day job eventually become a business owner and that's what you need to do. But unfortunately, people, a lot of people misunderstood Kiyosaki, to think that to be a real estate investor, you have to be an active operator, you have to do it full time. You can make the passive income all you want as an I-quadrate investor and just passively invest in things. And I think that that's, I think it's probably the most misunderstood function in a lot of his books, people that quit their job that really should have never done that they should have just passively invested their way to financial freedom.   Michael: Yeah, okay. And let's talk about that for a minute because you wrote a book about raising capital and I think capital is so often the biggest obstacle for people, the biggest hurdle people overcome. So do you see the kind of this roadmap for people? Where if passivity, is it really time is the goal, right? That's what everybody is after and we get there by either usually being a B or an I, by being at B that sounds terrible, don't be a B. So if people are capital is their obstacle, using real estate as a active vehicle to then take a backseat and invest passively?   Matt: Yeah, well, that's I mean, my book talks about that and then it goes back to like, let's just keep walking to the B and I road, right. So if you're a B quadrant business owner, we're rising D quadrant business owner for real estate, and you either want to do it full time, you already are doing it full time, then at some point, unless you win the lottery, or unless, like, you know, you just got a silver spoon in your mouth, and you got billions of dollars waiting on the sidelines, from your friends from your family or something like that. You're going to need capital, right? You're gonna run out man you are. And so on the other side of it, you've got I quadrate investors, and they have either retirement accounts, real estate equity, cash, any of those things that they want to put to work and not have to put in the time to make that money, you make that money, do what it's supposed to do, you know, then they can those two can marry up the B quadrant business owner of real estate versus the quadrate investor that wants to make a return on their money without trading money for time. Those two can have a really happy partnership. My book talks about all those things, how those two things can get structured together and how the why in my book are called the cash provider, as SI quadrant investor.   Robert Kiyosaki is a good guy, but he probably sue the hell out of me if I use his terms of my books. I didn't use that, I did, I did the the deal provider and the cache provider. The deal provider is the D Quadra business owner, the cache provider is the I quadric investor.   Michael: Okay, awesome and what is your book called?   Matt: Raising private capital. So funny Michael you asked that it happens to be right here behind… They can get it on Amazon or they can get it on biggerpockets.com.   Michael: I was just gonna ask. Alright, so it's called raising private capital and without giving the book away. What can people expect to find in it?   Matt: Along with a lot of my personal story on on you know how I got from guy that quit his job in oh five to you know, running a company that runs that owns, you know, multi 1000 doors of multifamily real estate. It's got that journey in there. And and that but also it's it's got a lot of tools and lessons, it's a how to really on how do you look in your own personal network as an investor, I'm sorry, as a B quadrant designer, it's how to look in your personal network to find the money, you need to do deals because you don't have to go to private lender, or you don't have to go to hard money lenders, you know, if you go and go more corporate level, or sell your soul to get the money you need for the deal that you're trying to do. You can look in your own network to find that money and raising private capital talks about how to find the money you need for deals in your own personal network.   Michael: Okay, all right, Matt can we do something kind of a silly exercise?   Matt: Please.   Michael: Can you because, I think a lot of people are really nervous to have that conversation and I think they feel slimy or gross. Can you pitch me on a deal that you're putting together as someone that would be in your your kind of sphere of influence? Let's let's see. Let's see what that sounds like and feels like.   Matt: Well, it depends if you're accredited, or not, Michael, because if you're not accredited, we have substantial relationship. But if you're accredited, I can talk to you, I can do a Facebook ad that you notice, right? All joking aside, let's pretend you and I are friends. We already know each other you already like and trust me, because I'm me, right and my book recommends that those are your first targets. You know, and that so hey, Michael, how you doing today?   Michael: I'm doing pretty good, what about you, man?   Matt: I'm awesome, man. Hey, listen, I happen to remember you saying that you were working over a company XYZ. You did a great job, didn't you. It's good. But you better get an opportunity to come up with ABC Company. And I'm really grateful for that you were able to move over to that did take on that new job. How's it going?   Michael: It's going really well. XYZ was terrible, ABC is infinitely better. Thank you so much for man, remembering you've got a killer memory.   Matt: No, it's great, I swear to you… I also barely remember going further, Michael, is that XYZ day as much as you hated what they did, and you know, and I'm so grateful you got out of there. But XYZ had a great comp package they did as I remember, you told me they paid you a really great 401k program.   Michael: Yes, yeah, it was pretty.   Matt: Those markets been taken off lately, right. So no, it's maybe maybe hit a top here and is starting to get a little squirrely and everything like that. So I want to tell you that we did you happen to know, Michael, you can take your retirement account and invested in things not Wall Street, you know, in that retirement account you have with XYZ company because you don't work there anymore that retirement account could be put to work in real estate. Did you know that?   Michael: I had heard that. But I didn't really know that I could do anything about it…   Matt: Well, you can now that you've left XYZ company, right, you can take that retirement account that they have, and they probably were paying you and lots of company stock, take the chips, man, take the chips off the table cash in, sell that company stock and roll that and roll that retirement account, which is now by the way was a 401k. Now it was an IRA. And you can roll that IRA over to a third party IRA custodian and you can do all kinds of cool stuff you can buy, you know, shares of companies, you can buy your own your own real estate investments, you can lend that money out and you can also invest it in deals like we have, I, we are right now Michael buying 670 units in two states, five apartment buildings in two states. That's the deal, we're in the middle of right now, produces phenomenal returns, produces, we're going to fix these buildings up and we're going to refinance them over time and as we refinance them, we're going to give some of that money back to you to your retirement account. So you can then take it and parlayed invest in another stuff. It's a great return.   I know a lot of people that we work with are really happy with work that we've done as a company. So you and I should talk further as a matter of fact, I have some Ira custodians that can handle this whole thing for you, if you'd like, I'd like to introduce you to a few of them that I love. You know, and then they we do a lot of work with them. So they give us white glove treatment. Can I introduce you to them for you?   Michael: Yeah, that'd be great, man, thanks so much for doing that. I appreciate it.   Matt: Yeah, and I'm going to mail you the offering. And if you don't, if you're not happy with my, if you don't like the returns, and you're you're nervous, whatever, it's okay, I get other things I can send you over to, I really want to help you build your wealth while I build my business. Because we're building a great real estate company and we're, our mission is to transform lives through real estate, I want you to help me do that. By me helping you earn money with your retirement account. Well, we do the work. So we can do that for you. And if it doesn't work out, that's okay. I have plenty of other friends for this awesome network called biggerpockets.com, you should check out and you can look on BiggerPockets to and find other things to invest in, like private loans and other cool things that can show you that are not real, like that real estate that I mentioned, even though that's a great deal. There's other things you can do to and I'll hold your hand the whole way. What do you think?   Michael: Oh, sign me up, man, I'll be looking for your email.   Matt: Cool, no problem.   Michael: Man, that was awesome. That was so so so good.   Matt: Thank you, thank you…   Michael: So firstly, for first and first and foremost, you've now got to send me that email because I'm sold. But secondly, what I love about what you did is the conversation felt very much, let me help you, let me put provide value for you educate me around what I could do with my retirement funds, which I might have not even been aware of, and then to tell me how you're able to help me, before even the you being helped in the process, being able to your own deals be my financing was even mentioned.   Matt: Yeah, well, so is a few facts, right, um, of the $10 trillion, that's currently in IRAs, right now, not 401k, it's just IRAs of the $10 trillion, it's out there. 4% of us invested in anything else outside of Wall Street and so if you're looking to get your capital game going, the easiest low hanging fruit, and the thing that everybody has is a retirement account that has if they've got a job, and they used to work at one company, and they now work at another company, their retirement account, they had the first company is now eligible to get rolled over to an IRA. And with the big run up the stock markets had it that's what you should be talking to people about, is like, hey, you used to work over here. Now you work here, don't you are you got laid off, you quit whatever it is, they don't have you there them a job. Now they just have to use to have a job. It's such an easy, low hanging fruit conversation and it speaks to their needs too. Because everybody's get a little squirrely and where Wall Street's going, it's just been a great run. You know, it's had a great run over the last 12 years. But now it might be time to pull a few chips back. So I think that that's something that's probably the most underutilized conversation out there. For those looking to raise money, is to talk to anybody that's got a job about investing their retirement account with them with their real estate company.   Michael: That's so good. I think so many people when when thinking about having that conversation, think, well, I don't know anyone who has money, because they might not be in cash assets or liquid assets on the you know, in a taxable account, but the retirement side of things brings into focus a whole another option.   Matt: Yeah. Yeah. Well, you can and there's other ways you can go about it, too. You can kind of sniff out, my book talks about like how to sniff out people that are in your network that likely have a lot of cash. What does what are the signs that a lot of cash leaves, you know, my book talks about that, my book talks about, there's another vehicle that they can they can invest with you and as those are people with free and clear real estate.   Last time I looked, Michael 30% of America owns their home, their primary residence free clear 30%. You know, but they don't. It's not it's not to get paid to ask a different color when it's paid off. It's hard to tell. Like all the purple houses in America are free and clear. Yeah, no, I don't know. So, but my book talks about the signs to look for free and clear real estate. And I also can tell you, here's the free clear real estate conversation. Here's the those with cash conversation and here's the retirement account conversation to have. I just pulled that into my playbook because it seemed like the most obvious one to go for is retirement account is probably the most, it's the most underutilized one. But I think it's the one that's most unnecessary right now, in today's world.   Michael: That makes so much sense, that makes so much sense. Matt, you mentioned before we hit record here that you are actually in the midst of closing the biggest deal that you've ever done to date today. Can you talk to us a little bit about what that looks like?   Matt: That was a by the way, Michael that was it bullshit. That was a real deal. I was pitching you on for your retirement account when you were working for XYZ comm your XYZ IRA could be invested in the deal that we're closing part of right now. Yeah, it's 670 units. It's in it's in two states. It is a five apartment buildings and we're closing two of those today. The other three close in a couple of weeks.   Michael: Amazing, okay, and what attracted you to this deal?   Matt: Um, that okay, so two of the buildings are in Winston Salem, North Carolina, and that is a company that is city we're already heavily invested in and it's a city that's showing phenomenal growth, 14% rent growth last year, RD on pace to do at least 12 this year percent rent growth and this owner hasn't increases rents in the last two. So he hasn't seen any of the rental upside that's been happening, the rent growth has been happening in that market has not been realized on those properties. So great opportunity, we already have property management in that town lined up and Lexington we own six other apartment buildings. So we are a niche down company. We're not going to just invest anywhere that is a good deal. We invest in super specific markets, so those are there were three markets Lexington, Kentucky, the Piedmont triad in North Carolina, and in Lancaster, Pennsylvania, of all places. Those are the three markets that we're in. That's it   Michael: If it works, it works…   Matt: So…I like about it. I also like that it's diverse meaning like it's it's different geographies, different management strategies, even different property conditions. I like all those things about it that it brings a lot of things to the table, that make it more of a stable asset.   Michael: Okay, okay..   Matt: But it's stable investment, like stable here, but poised to go up.   Michael: Okay and we've had a lot of folks on the show recently talking about passive investments. And you know how you're really evaluating the operator more so than the deal itself. But can you give folks listening some tips about how to evaluate maybe the deal? I mean, what, what details of the deal itself should people be looking at to feel comfortable?   Matt: Yeah, um, you should look at…, I'll tell you why I'll tell you, what people will do to make their deal look better than earlier is, you have to look at what their exit criteria is. That meaning like, they might be saying, okay, we're going to buy the property for this number, and then we're going to invest this and then we're going to sell it for this, like that nine times you paid for it, then you investors aren't going to make any money till we sell it, or you're not going to make very much money until we sell it, if the majority of investor returns are projected to come through the sale and the end, the syndicator is assuming that the markets gonna stay very stagnant, that cap rates are gonna stay down and streets gonna stay down, yada, yada, then they're kind of making a lot of assumptions that may or may not come true. So that's one thing to be concerned over. So make sure that they're conservative that their crystal ball is is, you know, that they're looking into has some conservatism's as it in it, because that's one thing. That's one thing, as indeed a syndicator can do is they can predict that the markets going to be super favorable at some point in the future when they go to sell and that makes the deal look really good right now.   Michael: Right, right…   Matt: Yeah, make sure there's a lot of there's some experience on the team that have been it's okay to have new new and to work with new people, because we're all new at some point. But make sure somewhere on their team, there's some deep, there's a deep bench of experience.   Michael: That's great, that's great. Yeah, no, I love those points, I love those points. I think I've seen that too and a bunch of syndication deals like oh yeah, we're gonna buy it at a six cap and we're gonna exit at a three cap and it's like, really look.   Matt: Phenomenal… 22% IRR man, what's the cash flow? Oh, it's only gonna pay like 3% cash on cash. But you know, magic fairy dust, get sprinkled on the deal, and it's gonna get sold and you're gonna make you're gonna triple your money. You know, three right now when I sell it, and that's how it's gonna go, right… When the crypto rises, you know…   Michael: No, that's a great point, those are great points, Matt. And I'm curious to know what do you you know, in your book, I'm sure talks about this but for anyone listening, that's thinking about starting to raise money but doesn't really have experience. They've you know, they've got the hustle, but they don't have the experience and they don't have the capital. You know, what should those people be doing right now?   Matt: Okay, I'm getting smudge get as much exposure as you can. Some folks do that through investing some some people that I know, that are very successful, syndicators now got started investing in other people's deals to learn the ropes, right. And that's it, do that get some exposure, we know why you can to other people's deals, you know, network, do what I did. But to start small, like we're on our 50 we're closing, this is our 15th syndication that we've done. But our first syndication was a guy my wife went to college with put in 50k into it into one into a deal that we did, we bought two single family homes with his 50k, right, that was our first syndication. So you can start small, find the one person that has some capital to work with in your in your network, and do a deal and then expand it out, do another deal, expand it out, do another deal, expand that out, do another deal. So for those that are looking to get started, it's okay to start small. It's not sexy to start small, but it's also okay and there's a lot further there's there's a lot smaller distance to fall and a lot easier to course correct on a small deal than it would be to correct on a behemoth issue first. Michael: Yep, I think that's such a good point, I think that's such a good point. I know I've spoken to people and I thought, well, my first deal would be a 10 year multifamily, because multifamily is the best everyone's talking about it. It's like yeah, okay, well, have you done a single family deal? Well, no…   Matt: I'm telling you, I hear people like, oh, I'm gonna do 100 unit multifamily deal. You know, like, that's my first deal I want to do, I've never done a deal before my life. But I want to close 100 units is my first deal. I get it and I want that, too for you, you know. But you might have to bang your head against the wall a lot. Where you could just go and syndicate a duplex right or syndicate like get your Mama to go give you a couple give me a couple of dollars and you and your Mama would go buy a duplex right, you know…   Michael: But then I can't post it on Instagram. No one wants to see me my mom and me doing deals…   Matt: I can't fake it till I make it that right, you know, or pose next to the Lamborghini that I just bought because I've been, I've been investing in real estate for the last few months.   Michael: So good. The last question I have for you before I let you out of here is, you were talking at the beginning of the show about how you did all these things and kind of rally different directions and then you really niche down and you got really focused. How did you do that? I mean, how did you, what did it take for you to get hyper focused? Because I think so many of us as they get started real estate like, oh, I could do long term buy and hold or I could do flipping or I could do wholesaling or I could do burr investing. And there's so many different ways to go. How do you know when you found the right one?   Matt: Well, first of all, Michael, I just got I just get tired to get my ass kicked, you know…   I'd like to wholesale deals going on at for fix and flips going, I was buying a bunch of rentals and everything like that, and it wasn't sleeping awake, you know and I was doing everything media doing a mediocre level, any of those three things that I was doing, I was involved in some other stuff, too. Any of those three things that I was doing could have gotten to me to my financial goals. But the mistake that I made with all this tribe was doing a bunch of things, mediocre lee versus doing one thing really well, right. And so I found that I was, you know, good at being a landlord, because with the landlord properties that we had raised very well. And it's also good at raising money and explaining what I do land lording in a very simple fashion to people and so I was like, okay, well, I'm awesome at those two things. Let me just focus on those. And the more I focused on those, guess what, Michael, the more money I made, like, money's good. I like making money. I do enjoy my family. You know, that's good. So how about anymore, though? Yeah, I'm not good at managing contractors, some too nice that I believe them when they tell me that their car broke down. And that's why they couldn't show up on the job site, but they still need me to give them 10 grand, you know, and I believe them. Okay, here you go. And that, so I just knew I didn't have people in my network to outsource that to at the time and so it made sense. I had tried partners to run that fix and flip division, my company didn't work out. So I needed to abandon the things that weren't working, and focus on the things that were and for those that are looking to niche down and focus. It doesn't have to it doesn't have to be apartment buildings, believe me, don't listen to Instagram does not have to be apartment buildings. It can be other things, I promise.   But figure out what you were calling your core genius, right? Your God given talents, what are you gonna call it, figure that find out those and how you can best bring those to the real estate table and even better, how they are benefiting your business today. And then just easy, Michael, do more of that. How about that, there's two more of those things, if it's working, you do more of it, and less of the things that aren't, you know, it could be that simple and that's kind of how we grow in and I found people that were able to sit in the seats that I needed for me to focus more on raising money and more on the land lording , and I'd filled in those seats and I got it, you know, tight and I expand that up and I was like okay, land lording is amazing, but I could probably scale faster if I outsource that and hire third party management companies. So we did that I could focus on raising money and I could focus on building the team and enrolling and inspiring and being the leader of my team. Now that's really all I do is I lead my team and I raise money and I talk to you…   Michael: I love it, I love it. That, this has been so much fun Matt, if people have questions for you want to reach out to you are interested in investing in some of your deals, what's the best way for people to get in touch with you?   Matt: There's a ton of stuff on my LinkedIn bio. My LinkedIn is the Matt Faircloth, I'm sure there's plenty of other Matt Faircloth in the world but my Instagram handle…   Michael: You stake your claim…   Matt: I've claimed it, there also the Instagram I'm the only Matt Faircloth, @themattfaircloth and there's a there's a link in my bio on Instagram and there's a ton of stuff there you can go and invest in my and you can hear about investing in deals with us if you're an accredited investor you can join our mailing list because you do a non-accredited deal sometimes for those that are that we have a preexisting relationship with so you can join that list or you know hear more about that. You can buy a copy of my book there you can you know join all kinds of different cool things we have going on and Masterminds webinars, all that jazz is on the link in my bio on Instagram.       Michael: Sweet, well Matt thank you again, man, from Komodo dragons to passive investing, this has been a blast. I'm sure we'll be chatting soon.   Matt: My family and I play a game at dinner called: True two truths and a lie and I'm going to slay it right in two true and a lie there that I was on an interview and me and this guy talked about Komodo dragons. Nobody's gonna believe that. But I totally got my family, totally gonna crush them at true two truths and a lie tonight…   Michael: I love it, I love it. Well, I am glad I could be a part of it.   Matt: Thank you.   Michael: Awesome, take care man.   Alright everyone, that was our episode. A big thank you to Matt for coming on. It was super fun from Komodo dragons to real estate syndication. I didn't think we'd be able to get there but we kept it on the rails. As always, if you liked the episode, please feel free to leave us a rating or review wherever it is you get your podcasts and we look forward to seeing you on the next one. Happy investing!

Leaders get stuck inside a box of their own perceptions. They struggle to see things from other people's point of view and this hinders them from improving and growing their business.   In today's Construction Genius episode, Michael Girdley — an investor and entrepreneur who has built, incubated and sold several businesses — joins us to give his insights about leadership and how great leaders impact their business.   Some of the highlights we deep dive into are the following:   • Why leaders fail when hiring people and how to make the hiring process more effective,   • Balancing the need for sympathy and empathy in leadership,   • Plus many more…   Join me and Michael and discover how great leaders benefit greatly from learning to look at things from other people's perspectives!   Discussion Points:   • 0:00 Introduction   • 5:00 Building a following? Why you should and shouldn't consider Twitter   • 8:07 What do most leaders get wrong about people?   • 9:54 Sympathy, empathy, and leadership   • 14:11 Common misconceptions about a leader that can be damaging   • 15:08 How to become a better listener   • 16:24 Why it's essential to have a team that shares the same perspectives with the leader   • 18:04 Most people asking for advice don't want to have their minds changed   • 19:31 Being able to give constructive criticism without coming off as offensive   • 22:12 Questions leaders need to ask to get honest feedback from the team   • 26:20 Responding to feedback and handling it as a great leader would   • 30:10 How great leaders move on from failure without the loss of enthusiasm   • 32:09 When is the right time to quit?   • 34:25 What successful entrepreneurs focus on that attract and develop young talent   • 36:13 For leaders who are reluctant to invest in their people   • 37:37 The need for assessments when you're hiring   • 40:51 Why qualified CEOs fail   • 43:11 Identifying your vision for the company and pointing it towards that direction   • 48:14 For leaders who know they need to improve, here's where you can start   About Our Guest:   Michael Girdley is the Chairman and co-founder of Dura Software, the second-largest software company in San Antonio. Michael is also a partner at the Geekdom Fund, a seed-stage tech venture capital fund that has invested in over 50 high-growth tech companies. Most recently, Michael led a private equity transaction that created the largest private tech company in San Antonio with Jungledisk buying a set of technology products out of global conglomerate, J2.   In 2015, the San Antonio Business Journal named Michael “Man of the Year,” and in 2016, Geekdom presented him with their first-ever “Geek of the Year” award.  Michael has also authored several books on computer programming which have been translated into four languages.   His passions are his kids, his lovely wife, and growing San Antonio's startup ecosystem.   Resources:   • Michael Girdley's Website: https://girdley.com/playbook/   • Michael Girdley's Twitter: https://twitter.com/girdley   • Michael Girdley LinkedIn: https://www.linkedin.com/in/michaelgirdley/   • Restaurant Recommendation: https://www.losbarriosrestaurant.com/   Do Your Project Executives Need to Become Better Leaders?   • Book a 10-minute call with Eric Anderton to see if/how he can help (https://10minutes.youcanbook.me/)   Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to the Construction Genius: A Leadership Master-Class Podcast on Apple Podcasts, Spotify, and Stitcher.   Thank you for tuning in!

Ava Shearer (pictured) features in a story from The Sydney Morning Herald: “Student claims HSBC's Great Barrier Reef ad a ‘blatant greenwash'”; Two stories from The Melbourne Age: “As Australia's climate policy disappoints, hope is found in court”; “Climate pledges put world on ‘catastrophic pathway' to hotter future, UN says”; From France24: “Climate change could push 100 million into poverty by 2030, World Bank report says”; Two stories from Inside Climate News: “Warming Trends: Shakespeare, Dogs and Climate Change on British TV; Less Crowded Hiking Trails; and Toilet Paper Flunks Out”; “The Rate of Global Warming During Next 25 Years Could Be Double What it Was in the Previous 50, a Renowned Climate Scientist Warns”; Listen as Michael Mann talks about “Climate Crisis and Extreme Weather Events”; From The Globe it's: “Is this the beginning of the Category 6 hurricane?”; And this website tells us: “Net Zero Festival: Michael E Mann confirmed as first keynote speaker, BusinessGreen”; Here's a chance to hear Michael Man speak: “Urgency & Agency in the Battle to Avert a Climate Crisis”; And the ABC News asks the question: “The world is hungry for solar panels. Why did we stop making them?”; Five stories from Medium: “Climate Action Planning at the Local Level”; “The tech bros are coming. How should climate activists deal with them?”; “Why Battery Storage Is Turbocharging Renewable Energy”; “We can't just plant our way out of the climate crisis”; “The Good, the Bad, and the Ugly of Bioenergy”; And from the Australian Government: “Australia's making positive energy”; The New Daily reports: “Amid a global pandemic, the climate emergency is well upon us”; Here's four stories from The Guardian: “‘I don't think many people know they exist': how mistaken identity threatens the Baudin's cockatoo”; “‘Like nothing in my lifetime': researchers race to unravel the mystery of Australia's dying frogs”; “Facebook steps up fight against climate misinformation – but critics say effort falls short”; “Want to save the Earth? Then don't buy that shiny new iPhone”; And from Zurich: “Perfect storm: how climate change is making natural hazards worse”; Four stories from Drilled News: “Jay Rosen and Nicholas Johnson on What the Media Can Do About Disinformation”; “Gulf Coast Oil Workers Are Building America's Offshore Wind Industry”; “Climate Accountability Is a Solution—Why Isn't It Treated Like One?”; “The Supreme Court's Obscure Procedural Ruling in Baltimore's Climate Case, Explained”; From Euro News: “Europe's Mediterranean leaders pledge climate cooperation”; And from the Museletter: “The Only Long-Range Solution to Climate Change”; From the Sydney Environment Institute: “Introducing the Extraction Series: Discussing the Future of Australia's Energy Sector”; The Behavioural Scientist: ““Urgency and Agency”: Michael Mann on Conquering Climate Despair”; On Yahoo News it's: “Rolls-Royce's all-electric aircraft completes 15-minute maiden voyage”; AP News tells readers: “As leaders reconvene at UN, climate and COVID top the list”; You'll have to pay for this, but for some it will be worth it: “Online One-Day Event:Creating a sustainable Future”; From Inside Climate News: “Does Nature Have Rights? A Burgeoning Legal Movement Says Rivers, Forests and Wildlife Have Standing, Too”; Two stories from Desmog: “Oil Industry Wages Major Lobbying Campaign to Kill Proposed Methane Fee”; “In the Louisiana Bayou, Dolphin Victims of Hurricane Ida Set the Stage for a Political Fight Over Coastal Restoration”; And there are two stories from RenewEconomy: “Australian renewables hit record share of 59.8 per cent on main grid on Sunday”; “Morrison's coal lump supplier, former advisor, appointed Australian OECD ambassador”; Here's the opening paragraphs to a story from the Financial Review that gives the gist of what its about - sadly you have to pay to read the whole story: “Banks are two-faced when it comes to climate action: Market Forces”. Enjoy "Music for a Warming World". Support the show: https://www.patreon.com/climateconversations

Episode 54 is coming from the vaults as I interviewed fellow activist Paul McCormack Cooney a few months ago. Paul is another absolutely wonderful human I got to know through Extinction Rebellion. He recently started a blog called Climate Dad which despite being a work in progress, I definitely recommend checking out! And you can follow Paul on Twitter @PaulMcCC or Instagram @climatedad.ie.We cover some everyday topics like parenting, but we also touch on the ever-lasting, controversial CETA, a trade agreement you may have heard of… Have a listen and let me know what you think![04:15] A bit about Paul & what sparked his eco consciousness.[10:10] Cool Planet & Extinction Rebellion.[18:00] Linking Paul's work in the Pension sector to our climate action perception.[23:30] Starting his blog, Climate Dad.[25:35] Talking to his kids about Climate Change.[31:35] Dealing with burnout.[34:50] A quick guide to CETA.[41:30] Random questions!As mentioned, CETA is a big, complicated topic but I recommend checking out Paul's blogpost on it, and searching and signing all the petitions you can find about it, & emailing TDs.Also mentioned:Al Gore Inconvenient Truth.David Wallace Wells article The Uninhabitable Earth.YouTube Interview with David Wells and Michael Man.Shannon LNG.Greta Saves the World game.I Am Greta Documentary.Kiss The Ground Documentary. Get bonus content on PatreonSupport this show http://supporter.acast.com/bookofleaves. See acast.com/privacy for privacy and opt-out information.

In this episode, Michael and Emil speak with real estate lawyer Kellie Chrisman about the pros and cons of LLCs and Legal entities in regards to protecting your investments.    --- Transcript Michael: Hey, everybody. Welcome to another episode of remote real estate investor. I'm Mike Albaum and as always, I'm joined by..   Emil: The good ol' Emil Shour   Michael: And today we've got a very special guest in Kellie Chrisman, who is actually a real estate attorney. So today we're going to dive deep into all things LLC and trust related. And Kelly is going to answer a ton of our questions. And for those of you who can't make it through the episode, cause it does get a little bit long, make sure to listen to the end of the episode where she gives her contact information in case you have any real estate specific questions for Kellie. So let's go ahead and jump right in to it.   Michael: Kellie. Thank you so much for taking the time for joining us today. We really appreciate it.   Kellie: Yeah, no problem. Thanks for having me guys.   Michael: Absolutely. So I was hoping you could give our listeners a little bit of background on you, you know, where do you come from? What kind of law do you practice and we'll start with there.   Kellie: All right. Sounds good. So I'm originally from Northern California, Chico and I have been practicing in California for seven years college at UCLA and couldn't leave LA and we stayed down there with Loyola Law school lived in Santa Monica, practice down there, my first, probably four or five years, and then moved back to Sacramento to be closer to family and go all over California and practice all sorts of exciting law that no one usually likes to talk about unless I get real estate people, or unfortunately somebody's going through a hard situation. So I do trust the States business planning and then estate planning as well. And they all kind of intermingle and go together. And it's interesting.   Michael: It's very interesting. And in full disclosure, Kellie and I have done quite a bit of work together in the real estate arena and the trust arena. And now I think Emil has now as well, right?   Emil: Yes. From your referral. So thank you.   Michael: Another convert to team Kellie.   Kellie: That's right. But I can't confirm unless you guys can confirm. Attorney client privileges.   Michael: Awesome. Well, Kellie, I was hoping we could jump into kind of the meat and potatoes of what we want to talk about today and start with some definitions to give folks, because I think so often in the real estate realm/arena, people throw around terms without really defining what they are. So for those of our listeners that have no idea, I would love to just run through some definitions of maybe sole proprietorship, LLCs, S Corps, C Corp and trusts. Can you break down for everybody? What those are?   Kellie: For me, I am a visual learner, which doesn't work necessarily here, but I can at least try and break it down. And I always have to give the disclaimer, I'm not getting legal advice, getting general recommendation based on things that I know. And we can always talk more detailed than I can get legal advice. I see those as two different things. So a trust is, is in its own category from the sole proprietorship partnership, LLCs, Corporations S Corp C Corp, cause they're really accomplishing two different things. So on the most basic level, the trust is something that's going to plan for worst case scenario. So something bad happens, who's in charge where everything is going and what you want that. Then we get onto the other side, the entity side, every other kind of thing we've mentioned. And that's the type of business or entity protection liability protection. So sole proprietorship is if you are going to own a rental property and you don't do anything, you are automatically. So if there's nothing you want to do, you can of course draft stuff and make it more.   But on its most basic level can do nothing. That's what, no, if you do nothing with someone else, then you are a partnership. You can automatically be a partnership. If you do nothing, or you can spend a lot of money to draft beautiful documents and be a general partnership. They're taxed at the individual level, LLC is a limited liability company. And a corporation is both of those. Together are something you file with a secretary of state, whatever state you live in and they give you liability protection so they can have one member. It can be just you, it can be you and a sibling or you want a friend or it can be in corporations and Apple has countless shareholders. So it can go from there, LLCs, the incorporations provide that protection. And then within a corporation you can be two different texts, escort, which is a closely held corporation or a C Corp, which is what we're most commonly used to. So like an Apple or a year, it can be somebody small.   Michael: So if I'm hearing you right, if I just bought the property and do nothing, I take title in my personal name. I'm a sole proprietor. Yep. Okay, cool.   Kellie: And if you do nothing with a friend, then you're a partnership.   Michael: Got it. Okay.   Emil: Yeah. I was going to ask. Okay. So I think for people listening, what are you potentially opening yourself up to? If you're a sole proprietorship owning real estate, what are the risks?   Kellie: Okay.   Michael: How deep do we want to go down that dark dark?   Kellie: Don't ask the lawyer that question. So I don't like to scare people, but I always like to be realistic and everybody has their own comfort level. If you are a sole proprietorship, you are leaving everything on the line. So to put it in real estate terms, you, if it's a commercial property, somebody walks into your tenants property and they slip and fall on the curb. You are technically responsible in certain situations, most situations for keeping that curve maintained and safe. So if you get sued, everything you own is on the line, your home, all your other property, your retirement, your income, and it can follow you. So you can get a judgment that you might not have a lot now, but in a little while. Well, so the risk, if you have nothing, that's huge is everything. However, how common that? It's not so, but not so uncommon. I mean, it can be something as simple. If you have a rental property, I had clients that their tenant had a party to make people on the balcony and somebody moved on the ledge. And once we went over and got hurt, whether they're reliable or not, they're included in the lawsuit. So there can be a lot of expense just to prove you're not liable.   Michael: Versus going the LLC or corporation routes. Now that's a very different scenario that we're looking at.   Kellie: Yeah. So then we're looking at the only thing on the line is what's owned in that corporation or LLC. So you cap your liability and we'll talk, I'm sure a little bit about how that happened and how to maintain that. But if I don't have something in place, everything you own is on the line. If you do have a corporation or an LLC, then just whatever is held in that corporation of the LLC. And so a lot of times you'll see corporations or LLC get sued and then they go bankrupt because they're not going to put more assets into that and they'll have to be other risks. If you just have to go back to the most question, if you just have a sole proprietorship or partnership, you know, if you don't get along with with your partner, if you die, what happens to it? If something tax wise, there's a lot of stuff you can do within this corporation, that instruction. So it gets very strategic and fun if I can say that.   Michael: Yeah. So it just sounds like you have, from a very high level inside an entity structure, as opposed to a sole proprietorship, more options and more liability protection than if you're just a sole proprietorship, is that accurate or fair to say?   Kellie: Yeah, I think that's fair to say. There's a lot more that you can do and there's a level of comfort that comes with it.   Michael: Sure. Okay. And so I get the question all the time of Michael, do I need an LLC to invest in real estate? And I think in the real estate community, there's this very hotly debated topic of pro LLC. No, LLC. So it sounds like we touched on, you know, what the pros are of having an LLC. Are there any pros to just being a sole proprietorship that you really lose out on if you have an LLC?   Kellie: Yeah. So, and it's funny cause I I'm preaching all of this and, and I just went through it as an attorney. You know, whether I want to become an LLC, a limited liability corporation or whether I want to stay the sole proprietor. And when I talk with my accountant, who is usually my they're usually the person that I work with clients tax wise, there can be consequences. So if you do create an LLC, obviously the first thing is that there's a cost associated with it, just filing it with the state. The state has asked me, um, to create it. Usually you're, you're going to need to either pay somebody to do it, or you're going to buy a package online to do it. And there's some things that come within each state that you have to do. So in California, for example, you have to then start paying payroll taxes. So rather than in a sole proprietorship where I just pull my stake and then I get taxed at my own level, I now have a couple of additional tax requirements, but at a point it becomes worth. So that's where I always recommend working with a CPA or a tax professional.   Michael: Okay, great.   Emil Like let's say I buy a property in Florida. I decided to put an LLC, you can set up the LLC in Florida, but California will still require you pay like the franchise tax fee. Like you're an LLC, here right?   Kellie: The problem is, the government writes the law, um, and they always find a way to get their fingers on a little bit of something. So if you have a corporation or an entity in another state and you live in California and you're essentially running it out of California, which is, I own a rental property that I rent, but I received my rent and my California bank account, you have to register as a foreign entity and you pay a small fee to do that. But that's one of the costs of doing the upside of that liability protection.   Emil: Totally   Michael: Wait. So did I, maybe I misunderstood that. So if I own property in Ohio, but I live in California and I registered my, I created my LLC in Ohio and registered it as a foreign entity in California. Should I be paying the $800 annual California franchise tax fee?   Kellie: You do what it is for a foreign corporation, whatever they require for that.   Michael: I got, I got to take a closer look at that. Cause if I've been overpaying, I got to talk to somebody that's ridiculous.   Kellie: That's why I say, talk to your tax professional. Michael: Right, right. Right. All right. Cool. Well, I will definitely have to look into that then, but so for, in California, I mean, there's really no way to get around telling California that we have even a foreign entity in California if we're living here, right?   Kellie: Yeah. They're going to figure it out because the second you file your income taxes, you're going to have that income from the corporation. And they're going to say, Hey, right. So it's a small price. You take my lawyer hat off. And $800 is not a small price for me, but I put my lawyer hat back on and I say, this is $800 is a small price to pay. But when you're looking at the amount of money that you're investing in, what you're building and hoping to gain from creating an entity in front of investing in multiple properties, it's really a drop, hopefully, in the bucket in the grand scheme of things.   Michael: Sure. And kind of getting back to that original two camps, right? The pro LLC, the new LLC. I think the biggest argument that the no LLC camp makes is that, Hey, I can get the same type of asset protection of liability protection with high liability insurance limits and then get an umbrella on top of that. What are your thoughts around that?   Kellie: Yes, super common. It just… This is such a lawyer answer. It just depends. So I worked with a medium sized firm here in Sacramento and that's what the partner is. He would tell clients, you know, why spend $800 a year when I can buy you a hell of an umbrella policy? And I agree with that in some situations, and I don't agree with it and others. So there's no the person that, you know, maybe they bought their first house and they're going to keep it and buy their next house. Never going to be a longterm investor. That makes sense. You know, if it's a single family home that you're renting, that's a good amount of insurance. But if somebody slips and falls in that house, I mean, slip and falls was one of many things that can happen. It's just common place. Example. You're hoping, and you're, you're gambling that you bought enough insurance to cover that lawsuit and your lawyer fees.   Because if you didn't, then now everything was on the line. Now that dream home you bought is on the line for this rental home that you have. A lot of times it works in, comes down to, and I'll probably touch on this throughout. It's how risk averse, how well you're going to sleep at night. Wonder, I always use the example of my husband. And so I I'm a little bit of a gambler. We had one property. I don't know if I put it in an LLC. I probably would seeing, having seen other things that I had done and worked on my husband is extremely risky because he's an engineering he would, before we bought the property, he would have an LLC set up. He would make sure everything was like perfect and Excel and everything. And it would be, everything would be in separate LLC, which I'm sure we'll talk about too. So it depends.   Michael: Yeah. I love that answer. Cause I think so many people approach it with a one size fits all, but it sounds like you can't look at it through that lens.   Kellie: No. And every situation is different. Every set of facts, if it's commercial property and they're going to be multiple people on this property every day, if there's going to be any kind of manufacturing, any kind of longterm structure to me, that's a no brainer. I would advise my clients to immediately do it and have an entity in place. But it just depends if there's an accident.   Emil: Yeah. So one of the questions we wanted to ask you is how do you handle insurance if you're using an LLC, does it differ if you're a sole proprietor versus LLC, do insurance companies look at those differently?   Kellie: So you talked to your insurance agent and each insurance company is going to handle them differently. A lot of times you will insure the LLC itself or the entity LLC, or corporation, and then insure yourself separately. So you can, I mean, if you're extremely risk averse and we send it, my husband would probably have insurance on the LLC and then we'd have an umbrella personally, over ourselves as owners of the LLC as well. So you're, you're double protected, but each insurance company saying that a little differently.   Emil: So you don't insure the property, you insure the LLC. So if I acquire more..   Kellie: So you would insure the property, but the property is going to be owned by the LLC itself. So if you're insuring you can insure business and then you can insure the property, but you're likely going to do both. And if you have a mortgage on the property, they're likely going to require that you meet the minimum requirements, ensuring that properties.   Emil: Right. Got it.   Michael: So let's just take an example. I've got two properties, both in the same city, both currently insured with the same insurance carrier and I move one of those properties into an LLC. Can I use that same policy, so to speak, that'll cover both properties or do I need now a separate insurance policy for the LLC property and then a separate insurance policy for my, the one I own my personal name.   Kellie: Yeah. So I'm going to punt to your insurance agent, i'ts going to depend on what they want to do. So, and it's interesting because this area of law is something that's rapidly developing and becoming more common. I think that a lot of smaller investors are becoming more sophisticated. And so now they're looking into these LLC avenues and now lenders and insurance agents are catching up. So I've had clients who, that's not a problem. They're able to do that and just list the entity as a second finer or additional party. And then some insurance companies will say no way, you're not touching separate policies now. So it's just gonna depend on your insurance agent.   Micheal: Okay. Something that I know we've talked about in the past, Kelly is commingling funds and we'll kind of get there in a minute, but I want to talk about maybe commingling insurance. So if the insurance company is okay with it, right, they're happy to write both my LLC property and my property owned in my personal name on the same policy. Can someone look at that and say, Hey, look, he's insuring these two things on the same policy just cause the insurance company is okay with it. Does that mean it's, I'm safe from a legal perspective.   Kellie: That is one that I have not encountered before. I believe you would be okay. Simply because you are, you're listing them separately as separate entities. I mean, if you want it to be perfectly safe, have no, you know, gray line. I wouldn't have them completely separate because obviously that's the easiest way to never have it come up in court. There's even an insurance policy that's owned, but I don't, we're looking at the commingling is whether we it's, what's called pierce the corporate veil. And I don't think that the insurance policy would do that on its own. You would have to also be doing additional things. So if that's the only thing you're, you're doing that it shares an insurance policy. I don't think it would be a problem. I don't think that would be enough for the court to look at you and say, Hey, he's treating this corporation or this entity as if it's his own personal bank account as if it doesn't really exist. However, if you're also buying all of your groceries out of the bank account and paying your, your home mortgage and buying all of your diapers, that's going to be like completely different analysis. From the court's perspective.   Michael: I thought I told you, I haven't worn diapers in years.   Kellie: I didn't know. You know, it's this whole quarantine thing.   Michael: This is kind of a nice segue into bank accounts.   Emil: Okay. So if I'm using an entity structure like an LLC, do I need a separate bank account for that?   Kellie: Yes, it's very quickly. So the biggest thing that you want to do, and then the purpose of the corporation is going to call corporation LLC interchangeably. Unless we're talking about structure, purpose of the entity is to protect you. And we have to create the corporate veil. We have to create the entity and maintain it as if it is a real thing, because it is. So one of the things, the most basic thing to do to do that is to create a bank account, which is very easy to do. They usually want what you filed with the secretary of state. And what's called an EIN number, employer identification number, which is it's very easy to obtain, or your attorney can do it. You can really do it. It's a little dicey. One of those things that might be worth having your tax professional or attorney do and the bank will create it.   That shows that you are intending to treat them separately. You are intending to honor the law and keep things separate. So it's the first line of defense that I just show that you have created the entity. It also makes me, so you set up your entity, you create your bank account and now, you know, what's coming in and the most basic level, you put all your income for the business, they're all your rent checks. And then you pull all of your premiums for insurance or whatever you need out. And then you can pull your hat when the time comes. So, I mean, I told her the first thing that I recommend the clients do and I recommend they do it.   Michael: I often get the question, you know, how do I pull money out of this LLC account? Cause I'm the LLC owner. I'm ultimately the owner, but I'm setting up this corporation a structure to limit the liability exposure. So once I received the rent, all the expenses get paid out of that account. Can then I just move that money from the account into my personal bank account.   Kellie: Mhhmm. So by putting it in the business bank account, first, you're creating a record. You're saying, Hey, this money, this check that I cash was right. And here's where I put it in. And here's where I pulled it out. And this is my thing. So if you are non-graded record keeping and your accountant is not going to, it's going to make it easier for them to do their job for you to pay your taxes. And it also from a legal perspective, shows that you are, you know, you're, you've created an entity in your needs, so you have honored it. You've used it. You've put it in there. You've pulled out the money to yourself. You're not using that business account as nerd ATM or debit card.   Michael: Okay. So if I wanted to take $50 from my business to go buy groceries, instead of going to use my business debit card at the grocery store, I should simply move the $50 out of my business account into my personal account and then pay for it with my personal debit card.   Kellie: Yeah. Or put it on your personal credit card and then use the business account down the road. So you pay yourself and then you can pay that off. Okay. Now, if we had a CPA on or an accountant, they'd be saying, well, what are you buying? You know, are you buying, you know, the business expense can now, can we have them leave? I mean, that's my dream. CPA is trying to figure out how exactly they can make it work with business expense. But the point is that you are not intermingling your day to day life with your business life. You're keeping them separate.   Michael: Got it. You touched on it a little bit ago and I just want to circle back to it. So let's say somebody is interested now in setting up an LLC, what do they do? Who do they call? I mean, they can obviously call you, we'll give everyone your contact information at the end of this, but what are the steps involved with setting up an LLC?   Kellie: Yeah. So this is an ongoing debate. And I love talking about this because in the most common thing I hear is why can't I just go out and buy this package that I found online for $95, that's going to do it all for me. Why would I pay you? And it's as simple as you just need to file the required documents with the state that you want to create your entity. That's what you have to do on the most basic level that creates your entity. And then from there, you need to build off. So depending on whether you have an LLC or corporation, there are certain documents that need to go into place. So when you file either your articles of incorporation or articles of organization, so organization is the LLC corporation is corporation with the secretary of state. From there, you're going to need that EIN number to help you set up the bank account.   You're going to need the documentation to support and show that you created. So just like we create the business account and we don't intermingle funds where we're showing we've created it by having that business account. We're also showing we've created the entity by having the paperwork that supports it and actually creates it in place. It's fairly common that I have clients come in and all they've done is file. Well, I created it and I'm paying my yearly fee and that's all I have. And when I asked them, you know, who's in charge, if you die or what happens if you and your partner disagree or who, you know, who's the treasurer, who's this, then people go, I don't know. I didn't do that. In that time I bought packaged. I didn't thought paperwork, or I just signed it. I bought that, but I didn't read it.   I don't understand it. Yeah. They have the skeleton in place, but not the details. So I mean, ideally what you're setting up when you, when you do it, you're filing and you're setting up the background paperwork and getting all of the documents. You need to have a successful business going forward. If you do it right at the beginning, you build on it and you have, and you're confident in this round foundation. So if you're going to invest the money to do it at all and the best, the annual fees, then why not just do it a little bit more into it. Right. So that you don't ever have [inaudible].   Michael: Yeah and if we did have an accountant on the show, they would tell us that that's a startup expense. So keep track of it.   Emil: I think we need a follow up with an accountant and Kellie!   Kellie: Love that.   Emil: Imagine the nuggets we're going to get out of that one.   Michael: Oh, the fireworks will be flying.   Kellie: I'm sure. Just agreeing with each other. I'm sure.   Michael: Right, right, right.   Emil: I actually want to run through my personal scenario. I think there's some stuff we can pull out for listeners. So when you and I started working together, I had almost all of my properties in my personal name. And I got married a couple of years ago, had a daughter and realized everything sitting in my name there's issues with that. Right. There's… if something happens to me, obviously that doesn't happen. But something happens to me. There's something called probate that I wanted to avoid. Can you really quickly just touch on what probate is?   Kellie: Yeah, so it's the thing people don't like to talk about.   Emil: I'll explain where I'm going with this after.   Kellie: Super important, because I mean, so probate in its most simple form is a court monitored administration of an estate, of somebody's assets. Once they die, it is not the state taking a percentage of what you want. That's the most common thing I hear probate is a nightmare for a host of reasons, mostly being that it's lengthy, it's public, so everything you all is public and open to really looking at it. And in some situations, if you have nothing in place, it goes according to law. So it's going to your kid. Right. And who's getting it in the meantime. You know, if your kid is, you know, one or two, like I know I have, you know, who's watching it for her and do I want my 18 year old getting access to everything that I own at 18 years old? No. So probate is a little bit, but a fun nightmare.   Emil: Yeah. And I had a family member deal with it and which is why the alarm sounded off for me personally. And so that's why I decided to put these properties in a trust again, moving them out of just my name, avoiding any headaches. If anything happened to me, you touched on what an LLC is just real quickly again, what is the advantage of the trust?   Kellie: Yeah. So the trust is going to say where everything goes when you die and it avoids probate. So they work together a trust and an LLC. They're not a trust is not going to give you liability protection. I wish it could. I could save my clients so much money. I can trust you liability protection, but a basic revokable trust does not. And really for anybody young, that's all I'm recommending because you don't want to buy property you can't sell. The trust is going to allow you to say, if something happens to me, here's where I want it to go. I want it to go to my daughter. When she reaches the age of 25. If she goes to college, I want everything paid for, you know, she needs a car.   She can have a camry she doesn't need a Ferrari -- because her dad likes cars. And you know, she graduates from college. She can have 10% or it's a little incentive if I'm not there to help her. But if you don't have kids, it can become even more important. You know, where do you want it to go? You want parents to have it. Do you want your siblings to have it? Do you want your girlfriend to have it? Do you want a charity to get half? You can be super creative. And then from, I think a more important level, if you are in an accident and you're in a coma, who's maintaining everything that you have. And so we want to make sure someone's collecting the right on your property. So once paying your insurance premiums so that you're in a coma, and if you have the worst year ever with 2020, you never know you're in a coma and your property catches on fire. We want to make sure that your transplants are paid and everything is contained. So when you wake up, your life is the same.   Emil: Awesome. Yeah.   Michael: And are there any financial benefits to not going through probate?   Kellie: Yeah. So probate, the fees are set by law. So especially here in California, a percentage of your estate goes to your attorney and a percentage of your States into the person that's running it. So it's an executor administrator. They get it generally is about two to 3% of your estate goes to your administrator. And two to 3% goes to their attorney, being an attorney that practices this all the time. I don't handle a probate that I don't pick up. The probate code. There is always something weird. There's never, and it's kind of a running joke about people that do this area of law. I don't think it's boring and it's, it's shocking how not boring and bizarre. And it's so it's hard to go through without an attorney. So I've worked for firms that they get great deals on wills because a will is perfect.   The trust is not people go, wow, you paid $300 for a will. Or I paid 3000 for a trust. That's ridiculous. I'm getting a will. And the reason attorneys are doing that is because down the road, they're going to be making a lot more money off of you, probating your will. Then they're going to now, if you set up your trust and do it right the first time, not a little attorney, we of, we joke in our, in our industry kind of about, you know, people oftentimes will go do it themselves. And I always tell clients, great, go do it yourself. And then let's have a free consultation. I'll read through what you put together and I'll tell you, honestly, you know, I'm not going to charge somebody money if I don't need you. That's not why I'm in this area of law. But a lot of times people will do it themselves. Think they've done it and they don't execute it. Right. They put something in there. They don't intend. So we hear their properties going where they don't want it to, or it's not valid at all. And the attorneys then making more money than they would have the probate, because now we're fixing what you did wrong through whatever software was cheaper around, seemed like it was cheaper, I should say.   Michael: So. I mean, we just kind of glided over that fact, but I want to circle back to it. If I have a will in place that does not help me avoid probate, I might be able to dictate where things go and to whom and when, but I still got to go through probate. Well, my, whoever is around has to go through probate. If I've got a trust, I can also dictate where things go to whom and when. And I can avoid paying that two to 3% fee   Kellie: In the probate. It's attorney's fees and administrator executor fees. So probate is if I have nothing in place, then it's probated and it goes disposition or where it's going. My state, it goes according to law and the law assumes your kids are going to get it as soon as their legal is in 32. And if I don't have to, it goes to my parents. And if I don't have my parents, because my is, and news is full. That's how you hear these people that didn't long loss, fifth cousins or whatever.   Emil: I remember when we were going through the process of doing this with you. And I'm like, after this person, I just don't know who else at this point   Kellie: We always, so in that case, what we always do and you'll see in any well drafted will, it will always say, and if everybody's gone to their heirs at law, because if I'm going to keep making, like, I call it like the worst car accident. So if you tell me, okay, I want it to go to my wife and my daughter. And then I go, okay, well, great. You know what? If they're dead and you say, okay, well then I want it to go to my brother and sister. And I go, okay, great. What if they're dead too? And it doesn't matter how many people you tell me I'm going to kill them. Everybody loves talking to lawyers and everyone loves talking about death. So people love talking to me.   Because I, I try to joke with clients and make it light. Cause it's a hard topic. A lot of times, you know, if there's a, everybody that you can name, I'm going to stick them on an airplane or some terrible accident. Cause these things happen. Right. And not super uncommon. I like to use the example of, do you ever go to dinner and do you drive in the same car? And if the answer is yes, then you need a second person or you need to be okay with it going, you know, if I'm off. So if you have nothing in place, the law has something is simple. And if you put together a will, so in a little can be as simple as you can write out, depending on your state, you can write out before you get on the airplane and you sign and date where you want things to go, or you can pay $10,000 to the best attorney in the world and have a 50 page will. And it's still going perfect in that case to go back to my example of, well, I want my daughter to get it at 25 or if she graduates from college, 10% early, she can do that in a little. I can do that through probate, but I have to wait through that year and a half long process.   I'm paying about three to 6% depending if the administrator has an attorney of my estate and what am I gaining? You know, I could've put that same energy and that money into a trust fund given more than my daughter down the road. So it makes total sense. The trust is that I think a gift to the family.   Emil: I agree. Yeah. That's why I decided to do that. And I know Michael, you've done the same. So my next, and probably the last question on this one is, okay, so right now I have all my properties in a trust. Let's say I go out at some point and I start buying properties in an LLC. Do you move the LLC into the trust? How do you get those properties into the trust as well?   Kellie: Yeah. So your, your LLC is going to own the property. And then your trust is going to own the LLC, or you can assign your LLC interests into the task. So in that case, it would take effect. If something happened to you down the road, we're pulling it in to the trust itself. So we're avoiding probate by doing it that way. So if I could draw it out, I would have the trust at the top. Well, really you're at the top. And then I'd have a line down. Then we bought a bubble with your trust, uh, the, a mill trust. And then we've got a line down to a bubble with the mill LLC. And now it shows ownership who has control of what? So it doesn't go the other way. So the LLC doesn't have control over the trust and the trust doesn't have control over you.   You have control over everything. And so for each complete protection, really for you and your family, you have the LLC to protect you. Somebody sees you, they can't go past that first bubble, unless you are buying your diapers every single day out of your LLC, you're breaching the corporate veil. So it stops at the LLC level. And then if something happens and you pass away, then we've got everything in place to protect your family. So you're covering both sides and I joke with clients, but this is the scary truth is that none of us get out alive and in a trust, in a will or nothing or probate, we're all headed in that direction. There's, you know, in this crazy world, everything that's going on, the one thing we all have in common and people don't like to talk about it, people don't like to acknowledge it, but accidents happen and aging happens. And so it's something that if you put it together right now, you can build on it for a lifetime and never have the expense.   Emil: Yep.   Michael: Awesome. I just wanna ask a clarifying question. When a meal says that he owns the trust, owns his property. What's the name on the title? Is it a meals trust or is it Emil as a person?   Kellie: When, and your trust owns the property? So when I bought my house, I had Ellie Chrisman. I was married. So Kellie Chrisman and married woman as joint tenants with the husband. Now, when we put our trust together, which as any good attorney does, I want you to talk with me before I close and to put together, I then transferred. Once we closed into Kellie Chrisman as trustee of the Chrisman family trust, those are the goals of the words that place it into the trust. So when you want something to be owned by the trust, when there's a title document to it, what we do to accomplish that is that you own it. You, the individual as trustee of your trust.   Michael: Okay? Yeah. So if I already own five rental properties and I want to see in my own personal name, and I want to now put them into a trust, we're going to have to change the title of those five properties.   Kellie: Yep. That could be a whole podcast in itself is if I want to try and do this on my own, where am I most likely to mess up? Titling is number one. So you created a trust or you kind of attorney create it for you. That's half the battle. Now we need to fund it. So now we need to make sure your title to your properties and anything that can be retitled is federal correct. So we're transferring it from you as an individual to us trustee and the deed has to be done correctly. It has to be recorded and usually that's included. And so a lot of times you'll see, Oh, this trust is a hundred dollars and this attorney's 1500, this attorney's 5,000. What's the difference. And it's what they're including for you within the trust package. So the funding should, in my opinion, always be included in done for you. I mean, that's the last thing you want to do is spend the time to go through all of this legal stuff and then have a ton of homework to do, including a legally complex thing like titling.   Michael: Okay. So Kelly. So just so I understand. So if I've got those five properties in an LLC and I want assign, you know, put all those into the trust as well, I don't have to change the title on those five properties. I can simply assign the interest of the LLC to the trust. Is that right?   Kellie: Yeah. You don't want to change the title. So if you move it out of the LLC, the issue then becomes that. Now you don't have that protection. It's no longer owned by the LLC. So you want the trust to own the LLC. And whether you do that by assigning it, or, I mean, so I always have a good veteran best, right? So good is listed as an asset. It's find your schedule of assets of your trust. Better is you assign the LLC to the trust itself. And that is the workable solution for most of my clients. Best is within the LLC paperwork itself, the setup of the entity, you have the trust. So you as trustee of your family, trust, owning the LLC interest itself, and that will get the LLC and therefore, anything else you own. So those five properties into your trust,   Michael: Man, we could go on with this stuff for like probably days, but we're getting along. And the two that I want to be very conscientious of your time. I think the last question that I want to ask, and then I'll give them a chance to ask is, you know, where do you see new investors getting into trouble legally?   Kellie: Yeah. So saving the penny. And I hate to say that that seems like such a lawyer answer to, Oh, hire me, but it's not just that. I mean, obviously that's ultimately how I make my money, but, but the reason I did this area of law is that I feel like the law gets in people's way so often. And it prevents somebody that has a great idea or a great investment portfolio from protecting themselves correctly. And then people either say, I'm just not going to worry about it. I'm just going to jump over this hurdle of law. I don't have time to deal with it or they try and do it themselves and it makes it worse or they skimp on what ends up being the most important thing and putting everything else on the line. So if you're setting up a investment strategy and you're going to buy hopefully hundreds of thousands of dollars in property and be making significant income, why not invest in an attorney's time?   And it doesn't have to be a lot of attorneys will offer a free consultation and the right attorney is going to work with you to make it affordable. And it's the best investment, the best foundation you can do. And I think the thing that saves people the most money over time, you will end up spending more fixing it, but then you will just doing it, right. I mean, UCLA Bruin. And I like to quote John Wooden as we all do. And then he said, if you don't have time to do it right the first time, when are you going to have time to do it over? And that's something that I always try to put into my own personal, my personal life and my practice. But I think a good attorney is going to work with you. They're going to make sure that you're comfortable. They're going to make sure that you're not surprised. And that's the goal is to make sure that you're empowered to do what you can do, what you can do, right. And then hire when you need to.   Michael: Awesome love that.   Emil: I don't know if it's a question, more of a clarification. I know we didn't get to one thing I think people should think about as they're considering personal LLC, all those things. If you're going out to get financing, it's a little bit different with an LLC. Most of the 30 year fixed rate, Fannie Freddie government backed mortgages. Those aren't available. If you take the property in an LLC, C I'll usually have to go to a different type of lender, commercial lender, different type of product, but just something else I think is important to consider as you're evaluating all this and navigating it.   Kellie: I found with clients that I've worked with in the past. So having an attorney that's read through your stuff, or, you know, if I have a client that I'm helping, I can work with the lender, my dad's a small business lender. So I kind of heard that my whole life in my ear. And so I will work with lenders to do whatever we need to do. And sometimes it's, you know, you're going to take the property in the mortgage in your own name, and we're going to let the lender know, Hey, we're transferring it into an LLC. And they're going to give us a letter that that's okay, or they're going to tell us their procedure, or they might want something else from me. So they might just say, Hey Kellie, can you give us, you know, a letter on your letterhead with your signature that says, you know, they have an entity, here's all the information. It's kind of their way to be past liability to me. But also sometimes it's ridiculous as it is just having the, the Esquire, the attorney at law, after my name, I can write the things you need to do and note that it more weight, but it's just that extra team player in your pocket so that you have all the tools that you need [inaudible]   Michael: Yeah. Great. Awesome. So Kellie, this has been so awesome. Thank you. So, so, so much if people have additional questions, want to form a trust, need help with an LLC, how legal type questions what's the best way.   Kellie: So email's always great. Or, you know, check out my website Avvo is a nationwide attorney referral website. It's kind of like a Yelp for attorneys, how exciting!  But taylorchrismanlaw.com. Um, and then my email is just my name. I tried to make it easy. Kellie, K E L L I E @ taylorchrismanlaw.com . And I always liked to have a conversation. I always tell clients, don't be afraid that I'm going to charge you. I'll tell you before I charge you. I never want to surprise clients with a bill. That's my worst case scenario.   Emil: Yeah. I can attest to that   Kellie: I'll talk to you about the weather. Kellie. How much are we paying you for this? And maybe it's because I'm a little selfish and I like to know my clients, but you know, always happy to have a conversation and then no, somebody doesn't go with me or they go with legal zoom or they do it. I'm always happy to look at what they've got. And I mean, to me, the biggest compliment is down the road. If they refer me to somebody else, you know, that's huge. And so whatever I can do to help, I'm more than happy to be there. And I'll tell you if I charge you and if I don't do it, I'm going to send you to somebody. I'm not just going to say, Oh, sorry, good luck. I'm going to try and find you that person that can help you wherever you are.   Michael: Great. And can you just spell your last name? So everybody ensures they have the proper spelling   Kellie: It's like a Chris and a man stuck together. So it's C H R I S M A N.   Michael: Kellie. Thank you so much for sharing your contact information. You're a California attorney. We've got listeners all over the country and I think a lot of international as well. Can those folks reach out to you if they don't live in California for help with their legal type stuff?   Kellie: Yeah. So my restriction is, you know, I know California law the best, and if I'm ever uncomfortable, I'm going to send you or refer you to somebody in your own state. But I regularly handle stuff for clients that either live in California and are investing in property, out of state for clients that live out of state or investing in property in another state. And then I'm helping them through the legal process. So I can draft deeds, you know, all over the country in a trust. You're just going to pick California law. And in this area of law, it's not really that dissimilar from state to state. And so it's something I can help people with and have a conversation. And if it's ever something I can't do it's I refer you out and I'll let you know that I can handle whatever it may be.   Michael: Fantastic. And before we let you go, what is your favorite kind of pizza?   Kellie: So pepperoni, jalapeno. And now I want pizza.   Michael: I've never heard of that combo, but I like it.   Kellie: Aye. That's what Adam and I used to order   Michael: Pepperoni and jalapeno. I've got a quick follow up for the group. A question for the group. How do we feel about pineapple on the pizza?   Kellie: No, that's a strong no.   Emil: So a little bit of a long winded answer. I used to work at my first job in high school was Domino's. I worked at Domino's   Michael: Awesome.   Emil: Both making pizza and delivering. So I have tried every single type of pizza. You could imagine, like triple Decker, pizza and Kelly. You just reminded me how good pepperoni jalapeno is. I haven't had that since I, I worked at Domino's in high school and it's incredible. I'm gonna have to get that next time. I order some pizza. I do not like pineapple anymore. I think I got pineapples out at Domino's back in. That might happen.   Michael: I'm a strong pineapple advocate. I just like the sweet and the salty together. Pierre, what's your take pineapple on pizza, yea or nea?   Pierre: I'm just not into pizza.   Michael: I don't like pineapple and I don't like pizza.   Emil: Pierre's too shredded for, for pizza.   Pierre: No it's one of those things where I never crave it, but I'll enjoy it when it's there, but I will always make a choice over pizza if it's me choosing, but I don't see what the big rage against pineapple is either though. I'm…   Michael: Kellie's face is make a barf.   Kellie: It's not supposed to be hot. It's just not.   Pierre: But barbecued pineapple is pretty darn good. I got to say, got to say, but I agree jalapenos on everything. I eat a jalapeno a day. Every single day. I have a fresh one,   Michael: Keeps the doctor away.   Pierre: I don't know. Yeah. I mean probably.   Michael: Awesome. Kellie, thank you so much for coming on and we will have to have you back at some point down the road because there is just so much good meat here to dig into. Emil any final thoughts before we let Kellie out of here?   Emil: No, thank you so much, Kellie. I know you've always been very helpful for me with all the legal questions I send you. So thank you on a personal level. And thanks for coming on the podcast.   Kellie: I can always tell when I'm in the right area. Cause I'm exciting.   Michael: Awesome. Well, Kellie, I'm sure we'll be chatting soon, but until then have yourself a great one stay safe. Alright.   Kellie: Thanks guys.   Michael: Well, everyone, that was our episode. A massive, massive, massive thank you to Kellie. As we mentioned, the sheer number of time we could go on for hours, days, maybe even years about this stuff. I think that's why law school is so long, but we would absolutely love to have Kellie back another episode. Hopefully everybody got a little bit of value out of this and realize just how complicated things can get and how quickly. So I've always touted it. I think Emil would agree. Go get legal advice, go get tax professional advice. Don't try to do this stuff yourself. Just like you're taking your car to the mechanic. They're professionals. Let the professionals handle it. Feel free, if you'd like the episode, to give us a rating and review wherever you listen to your podcasts, go ahead and subscribe. If you want to get automatic downloads on the episodes that come out twice a week. Thanks again for listening. We'll see you on the next one. Happy investing.   Emil: Happy investing.  

Steve Giguere of Aqua Security met Michael Man, the creator and organizer of the DevSecOps London Gathering Meetup, who just won the DevSecCon Security leadership award for OUTSTANDING DEVSECOPS COMMUNITY OF 2019. Listen to this podcast to learn about these London-based events, how it all started and where it's going. Related Links: DevSecOps London Gathering Meetup https://www.meetup.com/DevSecOps-London-Gathering/ Follow Michael Man on Twitter https://twitter.com/DevSecOps_LG Follow Michael Man on LinkedIn https://www.linkedin.com/in/michael-man-3851734

Michael Mann is in Australia to give keynote address at a gathering of financiers who are contemplating the risks their businesses face from a worsening climate crisis.Dr Mann is attached to the American Penn State University and repeatedly warned the world about the dangers of unmitigated climate change.The idea that the council from the City of Greater Shepparton was raised and discussed in an article in the Shepparton News with one of the trio of activists, John Pettigrew (pictured) articulating their concerns.

Greg Radies has returned to talk about the great Michael Man film Collateral! It is MUCH shorter than HEAT and I like that! Check it out now wherever you get your podcasts! Sponsored by Brewquet.ca! Rate! Review! Subscribe! *NEW EPISODES EVERY MONDAY* Email: letswatchthatpodcast@gmail.com Twitter/Instagram: @letswatchpod film, movies, humor, tv, reviews, podcast, Bryce Logan, Vancouver, guests, film school, arts, jokes, funny, entertainment, podcast, theatre, DVD, Blu-ray, Netflix, screening, question, interview, Oscars, humour, actors, film festival, film review, IMDB, lets watch that, podcasting, pod, cast, director, writer, scripts, screenplay, iTunes, google play, Spotify, Reddit, BC, Canada, New Westminster, comedy, horror, action, drama, romance, sci-fi, mystery

We discuss the idea of being a black executive in Corporate America with Frost Bank President Michael Williams.Michael Williams' LinkedInHelp Beat Triple Negative DCIS Breast CancerTRANSCRIPTZach: It was a dream job, the type of assignment that could make or break the career of an ambitious executive with an eye towards the top. "It was my first big promotion," says Bernard J. Tyson, the 57-year-old CEO of Kaiser Permanente, a health care company with nearly $60 billion in annual revenue. The year was 1992, and Tyson, then in his early thirties, had been named administrator of one of Kaiser's newest hospitals in Santa Rosa, California. "Everyone knew this was the hospital to lead," he says. His physician partner, an elderly white gentleman named Dr. Richard Stein, was less excited by the news. "It was one of those "Guess who's coming to dinner?" sort of welcomes," Tyson recalls, and it went downhill from there. The two men were constantly at odds, unable to collaborate, with most conversations ending in angry standoffs. "He would say something, and I would react," says Tyson. "It was the most difficult relationship I have ever had." Failure seemed inevitable. One day, Stein invited Tyson for a walk. "He said, "I have to confess something to you, something that may end our relationship,"" Tyson recalls. "I have never worked with a black man like this." He meant as a peer. Stein, it seems, didn't know what to say, to act, what to expect. Tyson saw it for the opening it was. "It was this moment I realized the majority of the population doesn't have any sort of mental road map for how to relate to and work with someone different from themselves." This is an excerpt from Why Race and Culture Matter in the C-Suite, an article written by Ellen McGirt, for Fortune Magazine, and I believe it highlights the reality many people of color in leadership face every day. Being in spaces where few of us are present is challenging enough, but compounding that with the task of leading teams, as in telling them what to do? How does one succeed in that environment? Further, what does success even look like? This is Zach, and you're listening to Living Corporate.Zach: So today we're talking about what it means to be a leader of people while also being a person of color in Corporate America.Ade: Yeah. So to be honest, I usually get so focused on making sure that I'm good in my career and navigating all the nonsense involved with making sure that my individual contributions are recognized. I usually don't even think about what it means to lead a team full of people who don't look, think, or behave like I do.Zach: I know, right? And to your point, all of those things you just mentioned, they're critical and of course very important and really don't change as you become a leader, but it's interesting because when you look at that article that I read by Ellen McGirt, it highlights Bernard Tyson's experience about white men having to engage him as a equal. So I'm a manager, so I'm not an executive. I'm not a CEO. Nothing fancy like that. I'm the manager, but even as my managerial experience, I can say that beyond leading a team, being in a position where folks who would typically have to--or typically would overlook me actually have to submit to listening to my ideas and my proposals and my direction. It's been a really interesting experience. Ade: Hm. So I hear you, I get your point, but do you perhaps have any examples for us?Zach: For sure. So a few years ago I was working on a project where I was dealing with a manager, and I was telling them what the approach should be for a specific task. I was walking them through the methodology and just the reason and rationale behind why we were gonna make this approach, and as I'm talking to him his face starts just turning bright red. Ade: What? [laughs]Zach: Yeah. [laughs] Like, it's like he ate, like, a habanero pepper or a ghost pepper, and he's trying to hold it in that it's not spicy. Like, he doesn't want anyone to know it's spicy, right? So he's just sitting in there, and his head is shaking, and he's got a little vein bulging out the side of his head. I'm like--Ade: What in the world?Zach: I know! And so I'm talking to him, and I'm just kind of--I'm just having my normal--I'm not talking at him, right? I'm just talking to him. I'm having a normal exchange, and I'm trying to, like, keep up the same casual cadence of my talk while seeing him clearly, clearly be uncomfortable.Ade: Huh. So I'm just curious. Like, was there anyone else in the room who saw this? Who, like, witnessed what was going on and pointing it out?Zach: Yeah. So I was in the room, then my manager was in the room, and he was in the room of course. So they saw this the whole time, and it wasn't like a one-time occurrence, right? So for those folks listening like, "Well, maybe it was just a one-time thing. Maybe he had a hard day." He had multiple hard days, okay? Ade: [laughs] It be like that sometimes.Zach: [laughs] Right? It happened so many times. It happened, like, literally every time we spoke. We spoke once a week for, like, two months, two or three months, and I'm like, "This happens every single time." So now--even when I spoke to my manager about it, I'm like, "Hey, are you noticing this?" Like, "Do you see what's happening here?" You know, she was even reluctant to admit and acknowledge, like, "Oh, I do notice this," and so why she was so uncomfortable talking about the situation and why she was even more reticent to talk to other people about the situation, including, like, our project manager, is for another podcast, but needless to say it was pretty weird.Ade: Okay. Well, I know that you've had experiences as a manager. I personally have not. I am, like we've said multiple times, at the beginning of my career, but wouldn't it be great if we had someone on the show who had about 20 years of experience as an executive within the finance industry, which--Zach: 20 years?Ade: 20. I would argue that the finance industry is one of the most politically-charged spaces, but you didn't hear that from me. So I'm not sure. I feel like it would be good if we had someone who has had to climb multiple ladders, maybe build coalitions of support, maybe who has had active participation as a leader in his community and has acted as a mentor to other people of color.Zach: Hm. You mean like--wait a minute, let me check my notes--you mean like our guest Michael Williams?Ade and Zach: Whaaaat?Zach: [imitating air horns]Ade: Never gonna get tired of that. [laughs] All right, so next we're going to get into our interview with our guest Michael Williams. Hope you guys enjoy.Zach: And we're back. And as Ade said, we have Michael Williams on the show. Michael, thank you for joining us. Welcome to the pod, man.Michael: Man, thank you so much for inviting me.Zach: Absolutely. So for those of us who don't know you, would you mind sharing a little bit about your background?Michael: Sure, sure. I guess--where to start? I'm originally from Dallas, but I moved here and attended Texas Southern University and the University of Houston. Met my wife, who is an only child, and guess what? I was gonna stay a Houstonian. So after school--I had always wanted to be in banking, so I started down that line of pursuing a career in banking, and I have not looked back since. I guess it's been going on 27 years. 26, 27 years. Somewhere in there. I need to do the math. It's in there.Zach: [laughing] That's awesome. So when did you first start leading and managing teams in Corporate America?Michael: So I've been leading a team of corporate bankers for about eight years now, and I actually--for the bank I'm currently employed, I actually am what's called a market president. I run the entire [Southwood?] side for the bank. So I have a team of 13 commercial lenders that work directly for me, and the way we're structured, while I don't do anything in the branches, I have three branches--excuse me, five branches where my people are located, but all of those individuals have a dotted line responsibility under me as well. So while I in effect manage 13 directly, I have actually management I guess authority for somewhere over about 40, 45 people.Zach: Wow, that's amazing. So, you know, this show we're talking about--we're talking about leading while black, and so can you explain a bit for the audience--and shoot, for myself as well--the difference between being a manager and being an executive? And in your career, how do you manage that shift?Michael: Sure, sure. You know, it's--one of the things I continue to do is just aspire to read. I'm an avid reader, and I've read many books on not only how to manage but also--frankly, if someone would have told me management was more about managing the people relative to how they coexist, I would've actually got--instead of getting a degree in finance, I would've gotten a degree in psychology, because really that's where the buck stops. If you can understand that you have influence as a manager, you can easily--and I don't mean just regular influence. I mean you have to understand that everything you do has the ability to set the table up for your future, and those decisions that you make, you need to be calculating because you have the ability to influence people without you even knowing it. And so when I made the switch is when I decided to get an advocate for me at a senior level that allowed that person to see me and my skill set and be able to be my advocate above my pay grade to allow people to say, "Okay, this guy, he not only knows what he's doing, but he's also someone that we can actually incorporate into our senior management team."Zach: That's really interesting. Can you talk a little bit more about when you say advocate and really what you mean when you say advocate, and what were some of the things that they were able to do for you as you were able to transition into that next level of leadership?Michael: Sure. Here's the one thing we all have to--the people who--the vast majority of your audience needs to understand. As a minority--and I'm African-American, so as an African-American minority, the one thing that we don't have is direct access to the highest levels of any corporation, and in many instances, as it stands today, there are not gonna be a lot of people that look like us. And so I remember back when I was at another institution and there was one senior-level African-American gentleman there. That individual decided that it was in his own best interest not to uplift and promote and advocate for younger African-Americans. It was a sad--it was a sad sight to see. It was a very difficult experience to go through personally, but what I learned from that, I took away from that is I will never do that to anyone.Zach: Amen.Michael: Because people sitting back trying to figure out how to gain more ability--excuse me, more control and/or allow their skill set to show that they have the ability to be at the next table, and he would block them 100%.Zach: Wow.Michael: And so my career has been all about making sure that I help those coming behind me who have the requisite skill set and the requisite training. That's first and foremost. So in terms of--in terms of understanding your point, how you make that switch, the biggest thing is you need to--I said find an advocate, but you also, in my mind, have to bring people up behind you that are highly competent and qualified, and now you've got this team of people around you, and if you have that advocate, they see that and they want talent. They want talent absolutely. They just have not been used to having talent, and they certainly--in terms of African-American talent. So they don't necessarily embrace that, but what they do is they lead those people to the side to try to figure out who's on first, what's on second, and how you actually get to tell them you're on first and John is on second and Theodore is on third or whatever the case is is you have to embrace getting someone to get to know you. So in my--in my (life?) career, when I figured that out in my previous institution, I actually had the chairman of the bank--excuse me, the president of the bank here in Texas as my mentor. Today, I've got the president of the bank as my mentor. He is the #2 in the bank. We meet on a quarterly basis. I don't ask him for anything. I ask him for his time, and I want to share his--I want him to share his thoughts, and he wants to hear my thoughts about a various, just a various amount of things. It has nothing to do directly with "How do I get promoted?" "How do I do this?" It's all about just communication, because what I'm trying to do and what I have learned, if you break those walls down and are able to communicate, then that allows that person to see you as someone that they can feel comfortable with, and that really is the biggest barrier to any minority trying to break into the upper levels of executive management if it's not your company because they don't know us as a people, as a rule. All they do is listen to, unfortunately, Fox News and other similar detracting and negative news accounts about us as a people in general, and they make these generalizations without knowing you individually.Zach: We introed the show talking about and sharing a story from Bernard Tyson, who is the CEO of Kaiser Permanente, his experience in having to deal with individuals who had never worked with a black man as a peer. So I'm curious to know how many instances you've had where you've said, "Wow, you've clearly never worked with a black man before." Like, has that happened? And if so, would you mind sharing a story or two?Michael: Sure, sure. That has absolutely happened, and you could see it coming 100% down the line. It's amazing. I've had it happen so many times, but I remember a couple of different instances. I'll give you a couple stories. One, as a young analyst, you know, all of us who come through commercial lending, investment banking, all of these corporate-type lending groups, we all have to go through this vetting process and this training process, and it's generally about a year, and we'd learn all this stuff, and then we're out--we're put into these groups, and we're analysts, so we're at the bottom of the rung, right? We're [runts?]. And so I'm in this group, and this--[laughs] calling him a gentleman is good. It's way above where he was in [inaudible], however this gentleman ran the group, and this was--this was in the early '90s. And so this guy--to give you kind of just an overall view of who he is, this guy would smoke in his office. It was illegal to smoke inside of the building, but he would smoke in his office. But he was an old head, he was a successful old head, and senior management didn't bother him. So they let him smoke in his office. Well, okay. So this guy, the manager of group, he was clear that he did not like me, and he made himself clear by several different things that he did. And I'll give you one nice example. So I am in the habit of drinking a gallon of water today, and actually I still do that to this day, and I had my jug that had a lot of water in it, and we were in meetings, and he turns to me in front of everybody and says, "Why do you have all that water?" "Because I like to drink a lot of water." He said, "Well, you know what? That is so sophomoric of you. It's like you're a little kid with a jug." I was like, "Whoa. Okay, this is just water." So we go forward. I take that as a note and I keep moving. Of course I didn't get rid of my water. I just decided to hide it from him all of the time. So there was an instance where when we get into work in the morning we would go get something to eat for breakfast, 'cause typically we'd have to get in early, so we typically would get something to eat for breakfast. My counterpart, the young analyst that was with me, would go--she would check into the office, sit down, turn her computer on, and then go get something to eat. I would go get something to eat, come back, check in and sit down and get something--and start working. I was told that I was habitually late. Now, mind you, I got in before it was the normal working hours all of the time, but because I got breakfast first, came back to my desk, she came to her desk, checked in, meaning face time--and I'm using total air quotes right now--Zach: Right. [laughs]Michael: Meaning face time. It was acceptable to do what she was doing and unacceptable to do what I was doing, and these are very small, minor things, right? Well, one thing everyone needs to take away from anything--if you don't take anything else away from what I'm saying, it is absolutely this - you cannot progress, move up, move forward in any career unless management likes you. Period. Stop. End of story. You could be the most highly-qualified, the brightest--have the brightest mind, have the best work ethic, but if your manager does not like you you will not be able to move up. As a matter of fact, your job is in peril and you don't even know it.Zach: So that was when you were, you know, a new analyst. You were coming in. You were getting hired. You're working for the old head. Was there anybody--was there any instance or experience you had as a leader where you were like, "Wow. Okay, you've clearly never dealt with a person of color before." Michael: Oh, sure. Sure. So we're working on a very sizeable transaction, and my team is managing--I am managing my team, and it's one of my lender's opportunities, and this deal is north of $100 million, so it's gonna be a nice year--Zach: Whoa, whoa, whoa, whoa. Whoa, whoa, whoa. You said one zero zero million dollars?Michael: Yes, sir. Yes, sir. I do corporate lendings, so, I mean, I've worked on several significant-sized transactions for many publicly-traded companies in my past.Zach: Wow.Michael: So at any rate, this is gonna be our year. This deal is basically gonna make our year. So this is my deal. We're working on it, and unbeknownst to me there was some chatter in the background by a counterpart, so another manager, and this person made some questionable comments about me and my ability to lead us through the closing of this deal. I had never even interacted with this guy, so the things that he was saying about me and my inefficiencies. He went on about being efficient, not having ever done a deal of this size before, it actually needs to be done by him and his group. Zach: Wow.Michael: You know? And I sat back and I said, "Wow, interesting." For me, one of the things I'm real keen on is documentation, and so along the way of that particular process I was able to have my documentation in order so that the president, who was the final arbiter, came down to find out what was going on and why we were having some discord, and I simply said, "I'm not sure." And this is another nice little note here. Michelle Obama said it best. "When they go low, we go high." Never get into the mud when people are throwing mud at you. Never. Never. Because you will never win that situation as a minority. You will never win that situation. Even if you win that situation, you've lost. You've just lost because they're already afraid of you, they don't know you, and then now you've got quote-unquote real with somebody, oh, they don't want you around. They don't want you around. That scares the living crap out of them.Zach: But this is my thing. So Michael--like, for those--you know, I've known you, or at least I've known of you for a while, and so I know--but you are a keep it real type of dude, and you're definitely not, like, a back down kind of guy. So let's talk about this documentation and how you stood up for yourself, right? 'Cause I know that's not who you are, so let's keep it real, right? Like, let's--Michael: [laughs] Oh, you are so real with it, and I will admit 100% to have always been an enforcer. I'm just gonna be clear about that. I'm not gonna lie about who I am as a person. Zach: Amen. [laughs]Michael: I grew up--I didn't give you all of the background, but I grew up in the projects of south Dallas. So I grew up fighting. I know how to fight, man. That's not even a question. These hands are real good. These hands are real good. However, what I've--what I've learned over my career is that in order for me to be who I want to be--and now, maybe earlier on I probably would've put hands on him or done something that probably would have not allowed me to move forward as far as I have today, however he caught me at a time in my life where I know better, and I know that I am--my level of intelligence taught me early on, through my mistakes probably, but I wanted to be able to be smarter, more intelligent, and more calculating. I can't say that enough. Here's my phrase that I say all of the time. "I play chess, not checkers." And in life and in Corporate America, it's always chess. If you think you're playing checkers, you've just lost. It's always chess. You've got to think two to three steps ahead and why is that going on and why did that just happen? See, it just didn't happen for a reason. Something happened. And oh, by the way, there are multiple conversations going on without you even knowing about it. You don't even know conversations are happening and they're happening. So it's not about trying to be paranoid or being paranoid. It's all about realizing that they're having these conversations, making these judgments, making some assumptions about you without you even knowing about it. So go back to your question. I have always documented what's going on, and I've always done that to the point of understanding two things. One, it helps me to make sure I'm clear about what's going on, and then two, there's a little saying--although I've never been soothed, there's a little saying that says, "Everything is discoverable," meaning I look at--I look at every situation like there's a lawsuit pending, and as long as I'm looking at it like there's a lawsuit pending or this could promote a lawsuit, I make sure that not only am I keeping my ducks in a row, but I make sure I limit the things that I say that are a part of public record, be it in writing or orally, because I want to limit my exposure while documenting and keeping up with what everybody else is doing.Zach: See, the thing about it is I'm kind of--I'm kind of shook, to be honest with you. Right? [laughs] I'm kind of like, "Okay." Like, I'm listening to you, and honestly I'm hoping that my sound man puts a little bit of House of Cards type music in the background because I'm hearing what you're saying. I don't disagree, right? So this is just good information to have, and I'm a few rungs down the ladder, and so politically understanding how to navigate these spaces--and there are plenty of people who are listening to this show who are aspiring to get there. I'm curious though. We have folks in our spaces, and I think as you know when you look at the history of civil rights and just black liberation, you have to have allies. You have to have folks that don't look like you who are advocating for you. You talked about advocacy at the beginning of our interview. I'm curious to know--you know, there are people who do look like us, but there are people who don't look like us also who listen to this show who are passionate about diversity and inclusion, who are passionate about being supportive and really leading that next generation. What advice do you have, right, for our non-Wakandan brothers and sisters listening in?Michael: As I cross my arms and let my fists down.Zach: And bounce your shoulders a little bit. [laughs]Michael: [laughs] Right, bounce up a little bit. Let me tell you this. The thing that I can say is judge people--I mean, it's funny. MLK said it best. "Judge people for the content of their character, not for the color of their skin." Yes. Are there people out there that have--are trying to run a [gang?] Maybe not as qualified but have snuck into the door, yes, but guess what? That's on both sides. Zach: Hm.Michael: That is not exclusive to minorities, and in particular African-American minorities. That's on both sides of the equation. So judge people for their content, their capacity, and their intellect. That's how you--that's how someone with aspirations of being an advocate can do--get work in whatever their chosen field of human endeavor is, because there--first of all, there's not enough room at the top for everyone. Period. Stop. End of story. Full stop. However, people get passed over for reasons that, in a lot of instances, didn't have to be necessarily. But it happens because that's life, right? You know, life is truly Mike Tyson's big ol' heavy hands. It just keeps coming at you, and you're gonna get your butt knocked down, and you gotta figure out whether or not you can get up and/or have the will and the power to get up because they gonna come right back at you. Those people who get up, those people who have that fighting instinct, who are intelligent, who are hungry, those are the individuals. If you can just look at them for who they are and what they bring to the table, that's a good deal.Zach: Absolutely. I'm curious--I'm curious about this, kind of as a follow-up to really what you just said. You know, are there any--are there any specific experiences or points of advice you've received in your career that have stuck with you and really helped you drive and continue forward to the place where you are today?Michael: One, have that drive, have that inquisitive nature. Always ask the question. You don't ever know what the answer is, nor should you think you would know the answer, but you've got to be willing to ask the question. And once you ask the question? Oh, by the way, learn and don't repeat whatever it is you did before. Okay? So I'm a big one-time guy. Ask me the question or let me ask the question one time or tell me one time, I got it. I've got to move forward. Now, the responsibility thereafter is on me 'cause you told me. So now I want to demonstrate whatever it is. I have the capacity not only to remember what's supposed to happen here but to incorporate it into what I'm doing and move forward. That's one. Two, more important than anything else, never ever lose yourself. Whoever you are, it is you. God brought you into this world. Your experiences up to whatever that point is have made you who you are. Never lose yourself. Learn to navigate within the political world that we live in, especially in Corporate America, and refine your edges. Like you said, you've known me. You guessed that I was a fighter, [laughs] but I've learned to smooth my edges out and to be able to be--to walk in any room and strike up a conversation. Insert name here, insert title here puts his pants on every single day like I do, one leg at a time. So he's no more special than I am in that regard. All he has done is he has made himself or have been able to get the breaks to make himself--put himself in a leadership position. Maybe at the top of the company. Maybe at the next level. It doesn't matter. He's still a person who puts his clothes on--his pants on one leg at a time, therefore I have the ability to interact with this person and find maybe some level of commonness that would allow us to engage in conversation and then, again, continuing to erode any kind of preconceived notions and ideals about who I am simply because I showed up and my skin was a little bit darker than yours. Zach: This is just so helpful, Michael. Thank you so much for joining us today. Before we let you go though, do you have any plugs? Any shout outs?Michael: Oh, what could I shout out? I could shout out my wife's foundation. I lost my wife now seven years ago to breast cancer, and I started a foundation for her in an effort to help find a cure for this dreaded, horrible cancer called triple negative DCIS cancer. It is one of the most aggressive forms of breast cancer for--unfortunately for African-American women, and we have an annual walk to celebrate her life, but also to raise funds. We raise funds through corporate giving as well. The website is www.YEF.org, and that stands for Yolanda E. Williams Foundation. YEF.org. You can go on the site. We're preparing for our October walk now. The date has not been set. We will be doing that in a matter of weeks, and you can go on the site and check that out. And so my plug is help me figure out, through raising funds and donating to research, how to get rid of this scourge called triple negative DCIS breast cancer. I don't want anything else.Zach: Amen. So this is what we're gonna do. So first of all, we'll make sure that we have that website in our show notes, and we'll shout that out when we publish this, and then what we'll also do is when you confirm the date, Michael, let us know, and we'll make sure that we shout that out on the podcast as well.Michael: I will do just that.Zach: Okay. Well, first of all, just thank you so much for joining the call. I appreciate you joining the show. I appreciate the insights and just stories that you've been able to share. We wouldn't have had you on the show if we didn't know and trust that you would give us honest, frank, transparent conversation, and I believe we've had that today. We'd like to think you're a friend of the show, and I want to thank you again, and we hope to have you back real soon.Michael: I look forward to it.Zach: All right, Michael.Michael: Count me as a friend.Zach: I will. All right, now. Peace.Michael: All right. Thank you.Ade: And we're back. Zach, that was a great interview. One thing it did remind me of though was the fact that we interviewed a black man, but because the way the system is set up--you know, sexism, racism, and all of the other -isms--I believe that if we had had a black woman on the show talking about this we might've had a slightly different conversation due to the relationship of being a black woman in positions of authority.Zach: You know what, I agree. If you don't mind though, go ahead and expound on that.Ade: Right. So I'm sure you've heard of intersectionality, although for those of our listeners who haven't, it's simply the idea that there are--that your identity form different axes of the way you relate with the world, and so that means your relationships with the world and with certain aspects of the world such as Corporate America as a black man differs from mine as a black woman, and there are different aspects of that. So your sexuality also interacts with that. Your age interacts with that. Your class interacts with that. And so all of that said, I think that if we think about things like the angry black woman trope and how that would reflect in being a leader and how, for example, black women usually aren't allowed to get angry or to express dissatisfaction with anything, otherwise it's "Oh, she's so bitter. She's so angry," as opposed to "No, I'm rightly disappointed in your work product," and all the other ways in which that could affect, you know, the final outcome as a--as a leader. I definitely would like to have that conversation with a black woman in maybe a part two, you know?Zach: You know what? That's a good point, and I agree. Let's make sure that we get a part two on the schedule and get going on that.Ade: Most def. I definitely want to interview, like, an Oprah. Trying to get my auntie on the show. Maybe a Viola Davis. Let's see what we can pop on. How are you feeling?Zach: I feel great about that. You said a Viola Davis?Ade: Or an Oprah. You know, I'm not too picky.Zach: An Ava DuVernay, perhaps?Ade: Ava DuVer--see? [inaudible]Zach: Maybe an Issa Rae?Ade: Stop it. I have a girl crush on her. I have a crush crush on her, but I also have a girl crush on her.Zach: I have an artistic cross on Issa Rae for sure. I was gonna say Issa DuVernay, which would be an amazing combination if both of those, like, fused into one person. My gosh.Ade: Oh, my God. Think of awkward black girl but [shot by?]--[Sound Man throws in a swerve sound effect]Zach: What?Ade: [laughs] Okay, now we're going down different tangents. Okay, anyway. Today we have a listener letter, so as a reminder to everybody at home, we encourage conversation, and so we're looking forward to reading any letters, comments, questions from everyone. So let's get into it. So today we have this letter. We're gonna call this listener Nicole, and let's read Nicole's thoughts. Okay, so it says, "Hi, guys." Hi. "I love your podcast and your insightful advice. This is a career question." All right, let's go. "I usually don't ask anyone I don't personally know about advice, but when I told my circle of friends about this particular situation they were stumped. They didn't know what to say, so here we go. I've been at my job for close to three years, and I've adapted to the many changes that came within my department. A year in, I got switched to a different sector of my department, which meant that I was part of a team of two - the manager and I. My manager has been working with this company for close to ten years and is jaded by all of the politics that comes with working at a large company and in our department. She's much older than me and has been working in this particular industry for decades. My manager and I obviously make for a small department since it's just the two of us, but we're overloaded with work and last-minute projects, which sucks, but it's part of the inner workings of the culture. Anyway, very recently my manager was having a meeting with the director during which the convo switched to me. I was not attending the meeting, but my name came up. The director then asked my manager, "How are you expanding her role?" It seemed as though it was a slew of questions about my potential and what my manager was doing for me in order to make that happen. This didn't seem to go over too well. When I came back from lunch, my manager was venting to me about this meeting. She basically told the director that if she, being my manager, is unclear of her own role and didn't see how she could advance in the company, how could she advance me? And this is just a paraphrasing of the events. And so while she was venting I was simply nodding my head because what else could I say to someone who feels stuck in their job and is managing me? For someone who is much older, I thought she was gonna be a good example, but I've come to realize she isn't. Lately I've been looking for new jobs that pay better because even though my department seems to make millions for the higher-ups, they're stingy when it comes to raises. I've only received one raise, which equated to pennies in my paycheck." Pennies? Oh, Lord. Okay, all right. Anyway. "Should I hit the pavement looking for a new job that pays more or should I try to stick it out and work with my jaded manager? Thanks again, and I hope to get some encouraging advice. Nicole." My goodness. Okay, Nicole. There's so much happening here. I don't--I hate to sound like a typical situation, but this really did rock Zach and I when we gave this a first read-through. And so, Zach, if you don't mind, I'm just gonna go ahead and give my thoughts on it. Or did you want to go first?Zach: The floor is yours.Ade: Okay. So as I see it, there are, like, several different layers of suck here. I'm sorry that--first of all, I'm sorry that you're going through this. It's not a fun or funny situation when you feel as though your career is in the hands of someone who doesn't care about you, but like I said, there are several different layers, and I think it would be best to separate all of those things. So on the one hand, you have a situation where--and at the beginning of Living Corporate, we actually had--I believe it's our very first episode--where we were talking about separating your sponsors for your mentors, knowing the two and leveraging the two. Currently I believe what you need is a sponsor, not a mentor. Your current mentor isn't doing her job. And then the other issue is the matter of your money and getting a new job. So I'm just gonna address them one after the other. So I believe you need to go on the hunt for a sponsor, whether that is within your company, somebody who has a role that you eventually see yourself taking. So obviously this requires first figuring out what you want your trajectory to be at this current moment. That doesn't mean that it can't change, but I believe that everybody needs a five-year plan for themselves. And so in five years, where do you see yourself? In ten years, where do you see yourself? And find people who have optimized their career and go talk to them, whether it's within your company or without. Go on coffee dates. Hit people up on LinkedIn. And I promise you that's not a weird thing. I just came to realize that myself. Like, I'll hit up people on LinkedIn and just kind of ask them to go for coffee or, you know, get their thoughts on certain things. So that's one. The other is that, you know, I understand that you might be feeling hurt, but what your manager is going through is about her and not you, and so although it feels as though she's kind of set herself up as a barrier instead of helping you in your career, I wouldn't take that too personally. Don't let that reflect in your work. If anything, allow that to spur more conversations with, again, those sponsors that you're looking for because they're the ones--within your company, they're the ones who will be putting you on new projects, who will be putting you in places, in rooms, in situations where they feel you have the potential to progress. And outside of your company, those sponsors are the ones who will slide you those job links like, "Hey, I saw this come up. I think you'd be a perfect fit in this situation. What do you think? Go ahead and apply," which brings me to my next point. Any raise that's pennies per paycheck--Zach: Yeah. If that's literal then yeah, that's a pause-worthy statement.Ade: Yeah, that's not it. That's not the lifestyle that I'm hoping and praying for for all my people. I was actually just having this conversation with a group of my friends that closed mouths don't get fed, and it's very typical, particularly of people of color, particularly of women of color, to feel as though we should be grateful for, you know, the pennies as opposed to asking for the thousands, and I don't know if that's gonna, for you, look like--and this is all gonna be personal to you, whether you feel as though you need to be in this company and so you need to figure out how to have the conversation about raises or if you need to step outside and start looking for new jobs. And to that I would say optimize your LinkedIn, get your resume together. If you need to find a professional to look at your resume for you or if, again, those sponsors that you're looking for can take a look at your resume and help you in that regard. But I would definitely say you should start networking. Go to industry events. So whatever your industry is, Meetup is a really good place to find organizations or groups where you can network and meet people and kind of--if you have business cards--give your business cards out, ask people out to coffee at those events. People there are open and willing to mentor you, but you just have to ask. And so those would be my two biggest recommendations for you, and definitely, definitely, definitely keep your head up because this is something that I can relate to personally, and I'm sure Zach has, in some form or fashion, been in a position where he's had to advocate for himself, but you are always your own best advocate, and so this is just a matter of fine-tuning the language and finding the people who are willing to listen to you. Zach, what you got?Zach: Yeah. I mean, one I absolutely agree with your point, right? With all the points that you've made. Ultimately, just to keep it a little bit more succinct, I think it comes down to two things. First of all, you are your best advocate, and then two it's your own career. So it's really one point, right? So you have a couple things here, right? So you have challenges internally where you have your manager who's a bit frustrated and jaded to the language that you're used to, and you now have concerns if they're going to be able to advocate for you. Well, like to what we've been saying, rejecting the premise that anyone else is responsible for advocating for you and that you own your career, it starts with you saying, "Okay, what is it that I want to achieve here?" And then just talking to people, knocking on doors inside your company and being like, "Look, this is what I want to do. This is how I want to do it. Can you help me?" And be comfortable with the people who say no. And they may say no by just flat out saying no. They may say no by just not following up. They may say no by some long-winded answer, but just be comfortable with the people saying no 'cause eventually you'll find someone saying yes. Now, if you can't find the yes internally then it is time to leave, and you already were talking about the fact that you're looking for--you're exploring another opportunity. So your salary--like, your salary is a personal problem. So what do I mean by that? Your salary is a personal problem, meaning you having an issue with your salary, that's an issue between you and you. So you need to figure out a way how you're gonna answer that question. So are you going to get put together a case internally and say, "Hey, look. This is the number I'm looking for because I haven't had a raise in this many years," or "I've only had this one raise," or whatever the case is, or are you going to find another job, right? So plenty of studies show that when it comes to job hunting, you know, you're gonna get a bigger bump transitioning away from a company than you are staying inside. And I'll--there might be people who argue or disagree with me on that. If you do, please send in a letter, send in your comments. And there's more to a job than just your salary, but my point is you have to figure out a way to address that for yourself, right? And, like, I'm not attacking you. I definitely understand where you're coming from. I've definitely been there, where I've got caught up in the illusion of waiting for people to advocate for me, but I realized that people only advocate for you as much as it helps themselves. And so your manager who has her frustrations and things of that nature, that's perfectly human, and she shouldn't be shamed for that. At the same time, that's not your problem. Your problem is how are you gonna make sure that you take care of yourself? So Nicole, like, we're really excited about you sending us another letter, like, letting us know what's going on. We definitely are praying for the best. There's definitely a lot going on for sure, but yeah, advocate for yourself. And we actually have an article dropping on Living Corporate soon about strategic self-advocacy, so keep an eye out for that. If you have any additional questions, just reach back out and we'll make sure to chop it up. Offline.Ade: And definitely thank you for writing us and trusting us with this. So that about wraps it up for our listener letter portion of the segment. As a reminder, we do encourage conversation, so please reach out if you have any questions, comments, or concerns for us.[segment break]Ade: All right, y'all. It is another episode of Favorite Things. So I have a confession actually, guys. Please, please, please keep this on the downlow, as I say this on a podcast. I had my first bite of mac and cheese recently. I know. I know.Zach: Your first bite? Like, you've just now--you've just now tried--Ade: I just--like, I literally just tried mac and cheese, and it was--and I feel like the only real reason that I liked it was because it was a seafood mac and cheese because I've always been really, really averse to cheese, but I've only recently started being okay with it. Like, it doesn't automatically make me nauseous. And so, like, I had my--my friend made--there was a kickback, and my friend made seafood mac and cheese, and I was like, "Seafood? I guess I can give it a shot." I don't know what that voice was. [laughs] But I gave it a shot and I ate it, and it was good. Like, it was really, really good, and I was like, "Hold on, wait a minute. Are you telling me that I've been missing out on deliciousness this whole time?" I was like, "No, this is probably a one-off. It's because of the seafood." And then I went to another event with friends, and my friend made just regular old mac and cheese, and I was like, "You know what? I'm gonna give it another shot," and it was astounding.Zach: [laughs] It was astounding?Ade: Astounding. Astounding. Are you kidding me? And so now I am mad that I have wasted all of these years of my life not eating cheese, specifically not eating mac and cheese, especially since I apparently make good mac and cheese, but I've never eaten it because I've always been afraid of what it does to my life afterwards--of what cheese does to my life. And so now I'm just trying to spend all this time, like, making up for lost time.Zach: With cheese.Ade: With mac and cheese, to be specific. Zach: With mac and cheese, to be specific. Okay. First of all, that's very funny. Ade: [laughs]Zach: Because mac and cheese is--first of all, it's just such a common dish from my perspective, right? But at the same time I'm excited for you, and I actually think what we should do is maybe add a fun segment from time to time just called Ade's Cheese, right? Like, where you try, like, a new cheese, right? So, like, maybe next time you try Gouda, and then another time you try feta. Ade: Actually--it's so funny you say that because I bought a smoked Gouda from the Amish [inaudible] market in my apartment, and it's in my fridge right now, okay?Zach: Okay. So okay, great. So look, let's take a note 'cause the next time--the next time we're together we'll bring up your review on Gouda. Ade: Look, listen. I actually already took a slice of it with some pepper jelly, and I want to fight every single one of my friends who did not inform me that cheese was this good.Zach: Right. Now, look, cheese is--cheese is good. Like, it's a seller for a reason.Ade: I want y'all to know that there's no way you love me and left me out of the secret for this long.Zach: Nah, see--actually, I challenge that, right? I challenge that because they could've been holding you back from cheese purely for the health reasons, right? Like, there's no--Ade: Nah, forget all that, because, like, they watch me eat three slices of cake and they actually encourage me. Like, "Here, have my slice of cake." Zach: Okay. Well, then I understand your frustration.Ade: See? Mm-hmm. They're not loyal. Not a single one of 'em. [laughs] My only other thing this week, it's a book called Perfect Peace by Daniel Black. So it's a book about what happens--there are several different themes. Part of it is gender. Part of it is, like, family betrayal. And so, like, the plot is it's this family in the rural south. Mama has six boys already, and she's pregnant with her seventh, and she, the whole time, is thinking, "Oh, this is gonna be my girl." She has a lot of issues surrounding her relationship with her mother, and so she wants to really, like, nurture a girl, a daughter. Turns out that she has a son, and so what she decides to do is raise her son as a daughter, and so she names this boy Perfect. Their family's called Peace. And so Perfect is raised, up until he's 8, as a girl. It's just this really, really gripping story about, like, love and family and what it means to--like, what gender means and what family means and what truth means and all of these other things, and you find yourself just, like, shocked every other page. But yeah, that's my favorite thing, and that was a whole lot, but I hope y'all take a look. What about you, Zach?Zach: Well, first of all, that's cool. We've got to make sure that we add Perfect Peace to our reading list.Ade: Oh, yeah.Zach: That's right. Make sure you check out our reading list. It's great. So sticking with my record of aggressive book titles, my favorite thing right now has to be this book I'm rereading called This Nonviolent Stuff'll Get You Killed by Charles Cobb. It explores the history of nonviolence during the civil rights era and its function. It also breaks down the history and culture of gun ownership for black people in America. It's a really interesting read. Academic while not being too heavy. It's just a really approachable book, and it's also on our reading list, so make sure you check that out.Ade: And that's our show. Thank you for joining us on the Living Corporate podcast. Make sure to follow us on Instagram at LivingCorporate, Twitter at LivingCorp_Pod, and subscribe to our newsletter through www.living-corporate.com. If you have a question you'd like us to answer and read on the show, please make sure you email us at livingcorporatepodcast@gmail.com. Also, don't forget to check out our Patreon at LivingCorporate as well. And that does it for this show. My name's Ade.Zach: And this has been Zach.Ade and Zach: Peace.Kiara: Living Corporate is a podcast by Living Corporate, LLC. Our logo was designed by David Dawkins. Our theme music was produced by Ken Brown. Additional music production by Antoine Franklin from Musical Elevation. Post-production is handled by Jeremy Jackson. Got a topic suggestion? Email us at livingcorporatepodcast@gmail.com. You can find us online on Twitter, Facebook, Instagram, and living-corporate.com. Thanks for listening. Stay tuned.

MilAir Scanning is different depending on where it is you live. Today's guest, Michael Man, is a big fan of Military Air monitoring.  Since he lives close to a few training facilities, MilAir Scanning is one of this favorite past times. Michael is lucky enough to live near several practice areas where he can listen to dog fights, refueling exercises, and other ground exercises. Any scanner that can monitor the MilAir bands and a good outdoor antenna is all that is needed to enjoy MilAir Scanning. MilAir VHF Frequencies: 118 MHz -136 MHz (AM and FM) MilAir UHF Frequencies: 225 MHz - 380 MHz (AM) All session notes can be found on our website at www.scannerschool.com/session27 Please support the Scanner School podcast.  Visit www.scannerschool.com/support to see how you can help us.  Some of the ways you can support us won't cost you any additional money!