BONUS! How to Take Your Investing to the Next Level (Our Story: Part 6)

Bonus episode. Our story. I guess, part six. This is the advanced
strategies and how to build your investment
business the right way. Let’s dive into it. Hey, everybody. I’m Clayton Morris. I’m Natalie Morris. And welcome in to the
Investing in Real Estate show. We are, for the very
first time, if you’re watching the video
version of this today, we do a lot of
different content. We do video and audio
totally separate, but today we’re doing a
video version of the show in our brand new studio. This is exciting. We are. Very exciting. I’m excited with
the lighting set up. This is still coming together. So the lighting’s not all done. In fact, our crew is going to
be here later this afternoon to kind of tweak
everything, the computers. I’m super excited about it. Finally. Did we get a key grip? Did we remember to– What is a key grip? It’s just something
that grips stuff? I think they hold the boom. Well, if it’s someone who holds
the boom and grips things, then that’s me. OK. You’re overpaid for that job. I just grip stuff
and hold lights. OK. Good. So no, we don’t have that. But we are– I’m really
excited about the new studio. So we’re going to be doing
a ton of great content from the studio. Live streams. We’ve got the 4K set up,
so live video streaming. We’re going to be
doing Q&A sessions around real estate, wealth
building, tax strategy, all of those things. We’re going to have great
guests here on the show. We’ll have some of our tax
guests, our legal guests. So if you’re new to the show,
that’s what we talk about. We talk about real estate. We talk about passive income. Buy and hold real estate
for the purposes of creating cash flow every month. And this is kind
of a bonus episode. What were the first
five parts of this? So we started the year by taking
you through our journey, where we came from. No money and some hard
times, and how we built it all the way until
the present time where we were able to stick it
to the man, quit our day jobs. And now we are a full time
real estate investors. And so we wanted
you to understand how we built what we built and
how we learned what we know. And we sort of ended
last week with the, like, and then we’re done. We have now about 50 doors. We own them. Life is great. But it’s not that easy. And so we’ve been
talking about, not just how we got there, but then
what it takes to thrive once you get there. Because I can imagine
plenty of people would, if they had this amount
of investment real estate, it would drown them, right? Drown them? Yeah, I think so. I mean, because a lot of people
say it’s passive income, right? So the monthly income
is cash flow is passive. But there is work. You don’t just sit back sipping
drinks out of a coconut. You’ve got to put some
leg work into making sure that your systems are right,
that your legal structures are proper, that your trust
is proper for your family. What happens if you have an
eviction on your property? Right now in our– we have two New Jersey
properties that have evictions. The holidays are
difficult for people. And we had two tenants, no
pay during the holidays. And so the property
management company is working with those tenants
to get them caught up. If they don’t get
caught up, then they’re going to be evicted. So what lawyer do you hire? Do you need to hire a lawyer? Are you in a state that you
need to have these things? Exactly. Right. So originally we began
investing in our own names. We just invested as
sole proprietors. And– excuse me– the first
few properties that we owned were owned actually just in
Clayton Morris, The Dude. That’s me. Right. It didn’t say The
Dude on the deed. It’s not The Big Lebowski. But– I just wear a robe and
drink White Russians. The Dude abides. Is that what he
drinks, White Russians? I think so. Let me tell you
something about The Dude. I’ve distracted myself
with this movie reference. So when we first
purchased properties, we just purchased them. We didn’t know any better. We bought them in our own
name as sole proprietors. And so the goal was to continue
to do so because those checks were coming in. And we put it in our own
personal checking account. And then used that money
to pay our mortgage. And that was great, because it
was easy to access the money. But what we weren’t doing
was taking full advantage of the tax code the
way it’s written because the tax code
does, in fact, encourage entrepreneurship. And we weren’t taking advantage
of all other kinds of ways that you can own depreciation. We just didn’t have the
right team in place for that. Because our accountant
before was– he specialized in
media personalities. He was a broadcast guy. A lot of his clients
were on Access Hollywood or other network news reporters. So what he was
good at was helping freelancers, or people who
had, sort of, media type jobs. So he understood that I
could write off my make up. But when it came to
investment real estate, he wasn’t actually all
that knowledgeable. And he even said to us,
don’t buy your real estate in all these different
LLCs because then I’ll have to file a different
tax return for every LLC. Well, that wasn’t
all that great advice because it expanded
our exposure, right? If we owned all 50
doors in one LLC, and then we did someone wrong
on one of our properties, like we were negligent. They asked to fixed something
and we didn’t and they fell and got hurt. And it went beyond the scope
of our insurance policy. And the property
management agreement. The property management
agreement pretty much protects you as an owner. That’s one level of protection. And then you’ve got insurance. That’s the next
level of protection. It went beyond that. Then they’d come after
your own personal worth. We’re assuming that we’ve
done something really dumb. We try not to, but let’s assume
that we have done something wrong by way of
our tenant, right? And then that person
could come after us for the amount of
our properties. If we own them as
sole proprietors, they could come after us all the
way down to our kids’ college savings plans even. But because we own
them in the LLC, then we were exposed
with everything that was inside the LLC. So Clayton one day was
walking, as he is wont to do, and listening to a podcast,
as he usually does. It’s funny, our neighbors
are like, I saw your husband walking with his ear buds in. If you live in our neighborhood,
you’ve seen that many a times. That’s how I stay so svelte. Right. Exactly. And he came back and
he’s like, you’ve got to listen to this
guy Tom Wheelwright. He was talking
about the tax code and how real estate
really favors– or I’m sorry, the tax code
favors real estate investors if they do things right. And I listened to
the episode, and I was like, this guy’s
on to something. And I just really liked him. And I read his book. And now we’ve become friends. Right. Well, I think I reached out
to him after that, right? How did that happen? This actually has happened
to us a lot in our lives. Is that we read someone’s book
and then we go and find them. And we’re like, I
love what you’ve done. We’re friends now. I can think of many people– Susan Lassiter-Lyons,
Robert Kiyosaki, Right. Robert Shemin, who’s one of
my mentors in real estate. [? Laura Lynn ?]
Jackson, Russell Wilde. And we’re fortunate
because we’ve got a lot of people who’ve
read our book on how to pay off your mortgage in five years. But why don’t people want
to be our friends like that? They do. I don’t know. They have reached out to us. You’re very, very
kind when you send us notes about
having read the book, so that’s very kind of you. So there’s a natural–
you’re spending that amount of time
going through someone’s brain in a way. And so we spent
that amount of time going through Tom
Wheelwright’s brain, listening to him on
shows, reading his book. And one of the
things he talks about is, if you’re a real
estate investor, you should not be paying taxes. You should not own properties
as a sole proprietor. The tax code is
written to benefit you as a real estate investor. And guess what, now it’s 2018. We just saw the new tax
code go into effect. It’s even better than
when Tom originally wrote his first book,
Tax Free Wealth. He has a new version of the
book coming out, which addresses these changes in the tax code. So if you’re not taking
advantage of the tax code as a business owner
who owns real estate, you’re missing out big time. You’re making a huge mistake. Now, so often I have
people who write to me through my own website. And they say this,
I understand what you’re saying about how the
tax code favors real estate investors, but my
accountant says that I can’t write this
off because of this, right? And Tom’s whole strategy is that
if you don’t have a person who understands the ins and
outs of how the code favors real estate specifically,
you’ve got the wrong person. Now, we’ve talked a
couple episodes ago– honestly, this is three or four
months ago– about passive loss and whether or not
that affects you. Clearly your accountant
will know that. But there are so many
ways to use the tax code to your advantage. And you have to have someone
who really understands it. And so basically what I
did was I read the book and I took it to our guy. And I’m like, can you
explain these things? And I showed him passages. I sat in his office
and he was like, no, I don’t have
time to read that. And one of the things
that Tom says in his book is take some of these
things to your accountant. And if they are
willing to read it, go through it, then, OK, maybe
this accountant is salvageable. But if they’re literally too
busy to read ways in which they can save their client’s
money using the tax code to their advantage
in real estate, you’ve got to kick
them to the curb. I mean, you’re just not
doing yourself a service by wasting money on an
accountant like that. Look, and I know people
want to save money. I know when you work with
someone like Tom at ProVision or some of the other accounting
firms that are out there, sometimes they’re going to
charge a few thousand dollars upfront to get a consultation
and work with them. So you are paying
for what you get. It’s like hiring
a person, right? Like hiring additional
people on your team. You can be cheap about it. Or when someone comes
to you and says, hey, I’ve been working hard. I think I really
deserve this raise. And you look at it
and say, yes, you know what, you do
deserve that raise. You do deserve the extra money
that I’m going to pay you. You pay for what you get. And when you try to
cheap out, it comes back. Yes, that’s absolutely true. And Tom makes the point that you
upgrade everything in your life as you become more successful. You don’t drive the
same car, you probably don’t wear the same
clothes, you probably– I’m wearing the same t-shirt
that I’ve had for a few years. Can you tell? I don’t think that’s true. That’s one of your
Bombfell shirts. Oh, well, I don’t know. It’s one of your
designer– don’t pretend. I think it’s a
legit– it’s an old– I’ve had it for a few years. Anyway. I’m not exactly the
modicum of fashion. Well, no comment there. You keep distracting me. Stay focused, Natalie. So anyway, his point
was that you should also upgrade your experts. And in my experience, that
is really, really important because there’s
been so many things that I’ve tried to figure out
on my own and I can’t get there. Even when you are
setting up your own LLC, and you want your LLC to
report to another LLC. I’m not even completely
sure how to do that on a website of any given state. And I’m not sure that I
clicked the right thing. I don’t understand the
questions they’re asking me. And so I understand
where I want to go. And then I cannot execute
on most of these things. Like something we
learned last year was called captive insurance. Actually, we will have a
whole episode about that. I understand what it means. I understand where I want to go. But I can’t institute that. No way, no how. So you need to make sure
that you have experts who can do those things for you. Now, we called up Tom as
soon as I finish the book. And I would read the book and
I’d go, Clayton, this, that, and the other. How come we didn’t do that? And he was like, yeah. So I called them
up and they gave us this quote of how
much it would cost to start to do our
estate planning and plan out our investments
and all of that stuff. And we couldn’t
afford it that year. So I wrote it in my journal. And it remained there
for nine months. Your vision board, really. It was in my vision board. It was like, at the end
of the year we are going to afford to employ ProVision. What’s amazing is
that you had that in your vision board and a
couple of other things, right? And I had a couple of things
in my vision board and journal for the year, things that
I wanted to accomplish around passive income. And that year we
both hit our goals. We kind of got together
towards the end of the year near new
years and we’re like, oh my God, we acquired
this number of properties. And you said, guess what, we
were able to hire ProVision. We were able to do this in order
to set us on the right course financially, and with
our accounting team, so that we’re making
the right decisions. It was pretty amazing. That was great. So what they did was they were
able to look at everything that we owned and
sort of pair it with what we were
making with our day jobs and our side jobs and
all our side hustle. And they were able
to say, OK, this– it was kind of crazy because we
had one LLC that owned like 12 real estate investments. And that LLC also was our
freelance broadcast jobs went through there. And also– Speaking engagements. Speaking engagements,
the speed reading app. Like it was just
an LLC full of– it was like the kitchen sink. It was like a junk drawer. Yeah, it was like
a junk drawer LLC because our accountant
didn’t understand the nuances of these
different types of businesses. And he only wanted to
file one tax return. And we were like, OK, fine. And so they gave us a plan. They gave us what’s called
the structure diagram. And they were like,
these houses have to be owned by this LLC, which
is then owned by this LLC. And they said, you have to talk
to an estate planning lawyer to execute on all of this. And so they actually
didn’t open all of those. They sent us over to– York Howell & Guymon is
the law firm that we use. And I mean, really, any law firm
that focuses in estate planning works would be fine. But again, I found
Andrew Howell. And I read his book
called Entrusted, about how to pass down not
only your wealth in money, but your wealth in knowledge
and your values as a family. And I was like, OK,
this guy, we’re aligned. So we became friends and
we started working together because of their book. And the book is great. Again, she read it. Now, I read a lot
of books, but when it gets into some of
these tax cody stuff, like she dives into that
stuff, and I’m just like, my eyes glaze over. We know what our strengths are. And so we would
be driving and she was telling me about
these things in this book. She said, for an
estate planning book, this is incredibly well-written. And his vision for family
and how money is transferred is incredible. And the ideas in that, that
I don’t think a lot of people even think about. I know we didn’t think about it. That, OK, that’s fine that
you’ve got a bunch of siblings, you’ve got extended family,
mother, father, sister, brother, all scattered
around the country. Who then is responsible
for the wealth? And who’s then responsible for
the social side of your family if, God forbid, something
should happen, right? Is there someone in your family
who is savvier with money? Perhaps that is the
person that should be in charge then
of distributing the wealth in your family. Is there someone who’s
better with children? Maybe that person should– so it
was a lot of thought about how to structure your trust
to protect yourself, to make sure that people– at what age do
you want your kids to have access to their wealth? To their trust fund. How to set up a trust fund. Right. And if you think
about a trust fund it sounds like, oh,
trust fund baby. But look, if you’ve got
one rental property, that should be in a trust. If you’ve got two rental– like
so this idea of a trust fund is like Richie Rich or
something, or Daddy Warbucks. That’s not what we’re
talking about here. We’re talking about
those assets that you’ve purchased, those cash flowing
passive income performing assets, those should
be in a trust. And, yes, they should go
to your trust fund baby. I mean, that’s the bottom line. Right. Right. And so my mother, she has
worked in escrow and title for over 40 years. She’s retiring this year. I’m so proud of her. But she has dealt
with so many times when property is owned by a sole
proprietor and that person dies and the property
then goes to probate because it wasn’t in a trust. And it’s really, really hard
for the heirs to get it out of probate, because it’s
like you’ve sort of buried some treasure and then you
send out some bureaucrats to find it with shovels. Like that’s no way for them to
really get your assets to where you intend them to go. Do you want a judge handling
where this asset goes? Or do you want
members of your family that you know, like, and
trust, to be able to dole out, OK, these five properties
are going to these children, this money is going
to this child? Or do you want it
handled by a judge who doesn’t know your family
at all, and is just going to look at it as a line
item thing on a piece of paper. I’ve done a lot of
properties in the state of New Jersey, hundreds of
properties that have sat. And when we know that
they’re in probate, it kind of puts
the brakes on it. It’s like a screeching
halt because you know it could just be locked up
by these bureaucrats for years even. Especially if you’ve got all
these family members that aren’t getting along. Remember that one house that I
had in East Orange, New Jersey? Oh, with the nine kids? Well, that was another one. But I was thinking about this
one where like the one brother they like hated
the other brother. He couldn’t even
get a hold of him. And they were trying
to sell this house. And I was trying
to buy it and like going to do the
renovations with the team. And they didn’t even
know that there were all these back taxes on it. And they couldn’t get
a hold of each other. And I was like,
look, Darrell, you’ve got to talk to your brother. He’s like, I know,
it’s going to be hard. I got to call him. Yeah, I remember that. That’s why it was
stuck in probate. But this type of planning is not
really planning for your death, it’s planning for
your life because it talks about how you communicate
this wealth to your children and your surrounding family
and how you then help them to– they talk a lot about the
spark and the flame, right? Because what we’ve
got now is the flame, it’s the money that’s
resulted in the spark, right? But you can’t really pass
down flame, that dies. Your kids have their own spark. And you want to allow them
to feel safe enough for that to become its own flame, right? So you don’t want
to pass down– you don’t want to give them
enough to do nothing. What’s the quote? Give your kids enough
to do something, but not enough to do nothing. I think that’s Bill Gates. Is it? Is it Bill Gates
or Warren Buffett? It’s one of those two. I don’t know. Bill Bradley, Bill Clinton. I have no idea. Who’s Bill Bradley? He was a senator, famous
basketball player. I don’t think he said that
because I don’t know who he is. Well, I know Bill Clinton,
one of his famous statements about the Welfare
to Work program, the whole thing was
give people a hand– don’t give people a handout,
give them a helping hand. Help them up. Give them enough to get started. But you’re not just handing
money out to your kids where they have no
frame of reference, they don’t go out and
work on their own. I want my kids to work hard. Because kids find
money really confusing. The other day my son asked me,
how does a credit card work? He thought you could just
swipe this credit card and have things. And his friend in the
back, [? Attikis, ?] was like, you know you have
to pay the money on the credit card later? And Miles was like,
no, you don’t. It’s like, you absolutely do. You can’t just use the
credit card and get things. He was like, mommy,
how does that work? So to him– Are we failing our kids? I’m a magician. Well, he understands bank
accounts and dollars. He’s just learning
to count money. He’s seven. But he didn’t understand
that the idea of credit made no sense to them. Child psychologists
often say that adults can do all these things that
children don’t understand, so so much of it is like magic. So they don’t know how– like, your reference
point is off. So he’s like, oh, my mom just– I don’t know, maybe he thought
like I had a stronger credit card than other people,
that I could buy things. I don’t understand. I don’t know. It’s a magical Harry
Potter credit card. And so too often we fail them
by not understanding that, not explaining these things. They don’t know why we have
things that other people don’t have, or why other people
don’t have these things, or it’s confusing to them. And this book helps
a lot to make sure that you’re clear about
what your wealth is from in your family. Because, no, wealth
doesn’t come from– I’m not going to finish that. Went a different direction. You go ahead. Well, thank you for
taking us down that– That was a strong
point I just made. Thank you for taking us
down that cul-de-sac. I wanted to say something like,
dumb people aren’t wealthy, but that’s certainly not true. There are plenty of dumb
people that are wealthy. That’s true. Do they hold onto wealth though? Are they the create
generational wealth? I don’t know. I don’t want to– Probably not. No, no. But that’s the point, right? But I wanted to say
wealth as in like wealth has that all encompassing, like
you’re wealthy in knowledge, not just dollars. Dumb people do come into money
and then they lose it quickly. Right? So without financial IQ,
without financial education, then, of course,
they lose it quickly. They don’t have
the things in place that we’re talking about here. They don’t have the
proper legal experts in place for estate planning. So let’s go through these again
and see if we missed anything. So we think about one
of the first things we knew that we were failing
out once we had accumulated a number of
properties was, we’ve got to get these in the
right entities, the business entities, right? OK, once we get them in the
right business entities, we’re not really utilizing
the tax code the way that we know that
we can, which is where a really smart CPA and
a tax team comes into place. So that was our
next strategy, which is how are we going to
start saving all this money. We know we shouldn’t
be paying taxes as a real estate investor. How do we offset
the other income that we had coming
in from other places? Then, OK, once we understood
our sort of structure for our entities, now
we had to go and build them, which was then we needed
the right lawyers to build them properly. You can try to go and
do it through websites. You can use things like
LegalZoom and that other stuff. That’s fine for setting up
sort of individual LLCs. But when you want to start
putting on place like a holding company that’s talking
to that LLC correctly, they need to be reporting
to each other correctly as a passive and
one as an active. So you’ve got to
do them correctly. Otherwise, you’re going to
get dinged come tax time. And then the IRS comes knocking. Is it a C Corp or an S Corp? Or is it a C Corp
taxed as an S Corp? I have to be honest
with you, I’m not even completely sure
which ones are which in our– But, again, this is why
you should hire people. This is why you can’t
do it all yourself. You’re not an island. So don’t try to do
it all of yourself. We realized it. Around the new year,
we were so thankful. We got calls from ProVision,
our accounting team, with the changes that were
coming from the tax code. They were calling
us letting us know that these changes are coming,
do this instead of that. And we just looked at each
other over dinner, we’re like, my God, thank God, we have
smart people around us that can help us take
things to the next level. And our guy at ProVision
that actually works with us is not Tom Wheelwright. He doesn’t really work in
the trenches all that much anymore for clients. And for obvious reasons. It’s not scalable
to have one person. Right. He’s the visionary. He’s the guy who’s
reading the tax code and coming up with
strategies overall, but he doesn’t actually work
one on one with people as much anymore. Unless something big happens,
and then our guy’s like, I’m going to bring
Tom in on this. And Tom makes the decision. So he’s still the big guns. But our guy there will
sometimes call us. And he braces for
it, like, he’ll give me this, like,
Natalie, you’ve to do this. And I’m like, OK,
thanks goodness for you. And I can hear him go, whoosh. He thought that I was
going to yell at him. But, yeah, these things are
hard that he asks me to do. He’s always asking me to
learn a new skill that’s hard to implement, but
I’m grateful for it. It’s a challenge. You don’t grow unless you
have these challenges. We have him to– that’s why we hired them
for these– so like we said, this captive insurance or the
accelerated depreciation, which we have a whole episode on. What is it called? What? Cost segregation. Cost segregation. Thank you. Not captive segregation. So these are really
advanced tricks that we’re using now because
we have a large portfolio. And these are things that
expert real estate investors are using all the time. But now it’s time
for us to do that too because we have a
big enough portfolio. Right. So hopefully you found this
little bonus episode useful. If you’re not already a
subscriber to the channel, please subscribe, share it with
any loved ones that you know might benefit from
building wealth. If you’ve got that brother, that
uncle who’s just always kind of sitting on the couch
playing Xbox, and you’re like, God, I wish uncle Jim
would get off his butt and learn something
and take action, build some wealth in his life. We all have those people
in our lives, don’t we? So go out there, share this
podcast with other people. It would mean the world to us. And I’m sure it would mean
the world to those loved ones. We’d love all of your comments
when you leave your comments. Thank you so much for
getting in on this dialogue. We’re super excited
for the studio. We’re going to be doing a
ton of great shows here live. So we’re going to be doing a
lot more live shows that we can interact and jump
in the comment stream and have discussions, things
that are tripping you up about real estate investing
and wealth building, things that you just can’t
really wrap your head around. We get tons of e-mails
with those questions, so I’m sure that there’s
many more of you who have that one sticking point
question that you need answers to, right? I suppose so. Yeah, that you absolutely do,
because we see those e-mails. Much love to you all. We’ll see you back here on the
next episode of the Investing in Real Estate show. Now, go out there, take
action, and nudge uncle Jimmy off the couch to become
a real estate investor. We’ll see you next
time, everyone. OK, three– I bet you miss
your news crew now. Yeah, I do. You have to do
everything yourself. I do. Hey, Dave, floor manager–
oh, wait, that’s you. Yeah.

74 thoughts on “BONUS! How to Take Your Investing to the Next Level (Our Story: Part 6)

  • Wow, so much information…hopefully I will be able to get to that level…I just closed on my 2nd home investment property….if I get 5 by the end of the year I know this is for me! All your videos have been super informative. Just today I told 2 good friends about real estate..they were intrigued. I have told coworkers about it before and they were just not interested at all lol. Oh Also! A buddy of mine that I met overseas while working is also into real estate now. I havent seen him in 3 yrs then several mnths ago we met for dinner and the conversation was MAHVELOUS! Hes on my level and doing the same things…I told him about you guys and he is amazed….we both in the past were kinda just saving up for the next rental, uh uh, not anymore 🙂 Thank you!

  • 50 doors paid off.. Good lord, roll that equity into a large multifamily property. You could potentially double your cashflow in one purchase.

    EDIT: I suppose I should ask. Why don't you do the above? What's your reasoning for not using leverage?

  • Thank You both for this bonus for the end of our Monday. My wife and I are still in the beginning stages of our hopeful last days working for our last bosses as opposed to working with them building new companies.
    After watching your videos I posted last week we were going to go out and look at our second investment property to which you commented good luck.
    We looked and as it turns out those rental properties are plentiful in my area and we decided instead to go for our own house to live in bringing our first rental property to a ROI of $250 per month and later we can go for financing to get all the rental properties we want in the $700-$750 per month range.

  • I love all these ways to take investing to the next level, but it also opens up the fact that theres actually so many ways to lose out on oppurtunities by just not knowing these things. Alot of loopholes that ppl can take advantage of to screw over a property owner that I havent heard about before as well. I guess theres always a trade off between how well you can do in an industry and how many hidden dangers there can be as well.

    Im glad I can learn these things years in advance so I don't end up starting off on the wrong foot.

  • Warren Buffett in a 1986 Fortune magazine interview: ''enough money so that they would feel they could do anything, but not so much that they could do nothing.''

  • Been watching you both for while AND ' Love 💙 you folks. AM an investor and own Rental property myself Free & CLEAR $ .living in North hollywood Calif and want to invest more , so your out of state property are something am interested in.Been watching you " Daily and connect to what your saying. THANK YOU ..👤 FRANCO

  • Your videos are so AWESOME….I have some questions. I'm an only child and my mom currently own her home and it is paid for and she has a Will where everything will come to me. Should she get a trust for me?, or will the Will be enough? Also, my hubby and I have one invest property but plan on purchasing more in the future. Would you suggest we get an LLC for this one investment property or wait until we get two or more? Do you think I should just ask my mom to go on and put her home in my name and if you suggest we get a LLC put her home int he LLC? I'm sorry if my questions seem stupid or not clear, but when I was listening to this video I had a lot of taught's coming to mind. Thanking you in advance for your time. TFS and keep doing what ya'll are doing it is a great help to ALL your viewers.

  • Hey love your videos and hoping I can do future business with yous. I'm 17 and plan on building around 40k dollars in 3 years time from day trading stocks (safely). My only problem is im overseas in the UK and its overpriced over here so im thinking of buying property in america. I just can't be flying back to check up renovations and tenants so could you give me some advice? Keep pumpin them videos 🙂

  • I love how you do things the right way. As much as I want to work with Provision, they quoted me $15k to lay out a 3 month plan. That's a large fee.

  • Thank you both for all that you do. I just purchased my 6th door, which is our primary residence. I'm setting my self up to purchase my firsts it of state rental through Morris Invest later this year. I have a few questions.

    1. Do you own your primary residence in an LLC?
    2. Do you leverage your primary residence to purchase investments?
    3. Could you explain or point us in the direction that explains how/why an LLC is better than owning rental income in your own name?

    Thanks again, I look forward to setting up an appointment soon & expanding my portfolio and increasing my passive income.

  • Just discovered the Series LLC down here in Texas – unlimited segregation and identical protections of an LLC so I can place each property into its own "LLC" but only have to pay one filling fee.

    Only certain states have this, check yours!

  • Thank you both for this great content you provide! Is it possible for you to do an episode on how to use your first property, that's in an LLC, to get the next property to create a snowball effect in acquiring more properties?
    I have enough money for the first property, but I'm having trouble figuring out how to get more properties using the equity from the first property given that you said banks will not lend to an LLC.

  • Hey Guys love the information you put on your page. I had a question? if you purchase your primary home already can you put it in an LLC? If so will i lose out on the interest I pay come tax time?

  • Hey Clayton,

    Suppose a property is worth 30k with 12k in expenses and i buy it from you at 42k all in.

    Do you provide me the bills for the repairs? So that i can deduct it as an expense?
    As that 12k would be a good deduction to offset the cashflow.


  • I love you Guys both. Thanks for sharing your experiences and I hope to meet you one day in person. I found you both a few weeks ago and I'm watching all your videos. I record your videos and I watch them on the trains while I am going to my meetings. Love them!I am trying to train my wife in getting passionate about properties but I wish one day she will be as passionate as Natali. I've learned so much from you and you open up my strategies. As a matter of fact most of the people and realtors i was dealing with they were making jokes of me buying old properties on the 40k in order to refurbish them and you inspired me. I have just one question about and maybe you could do a video about it. Often time I found out insurance companies reluctante or negative about insuring my old properties. How do you do? Is there an escape when insurance companies do not want to insure an old property? Since you told me you have in your portfolio old properties how did you sort it out?

  • Good video! I know Nalati mentioned that the two of you started with no money but, if I can remember, from your other video she mentioned that each of you were making six figures from TV networks. I really don't think you started with nothing when you also used your 401k to invest in RE, in addition to using your our reserve funds. Clayton was the only one who experienced the financial hardship… but great video and keep it coming.

  • Great video, appreciate all of the free education you give your followers.

    I’m a little confused and need clarification.

    I have cash to invest in a property. If I wanted to buy a property and refi to pull the cash out to repeat. How do you do that if you place it into an LLC from the start?

  • Thanks Clayton and Natalie. What type of structure would you recommend for someone about to acquire their first 1-5 properties?

  • Morris Team! I absolutely love your videos and appreciate what you provide the youtube community for free. But is there any reason why you steered away from short videos 10-20mins? I try to educate myself constantly and sometimes a 1hr video is a bit challenging to fit in during my busy day. Thanks

  • I stumbled upon one of your videos by accident and now Im watching all of them. I like the chemistry, the delivery and you guys seem very humble. The way you reached out to Robert and Tom I will be reaching out to you in hopes to learn and possibly work together.

  • I think that after watching many episodes, when Clayton distracts Natalie and she says she is forgetting what she was talking about, it is so very funny. Love the show. Long live!

  • Do I need to put my rentals in a trust before I put them in a LLC? Oh yes, I want to be your friend. LOL Loved you on Fox news.

  • Seems like you guys have quite a leg up on the normal person out there trying to get started. I mean really you just happen to go seek out Robert kiyosaki and other wealthy individuals and become friends with them?? C'mon if any of us try that they would have us arrested for stalking lol. I love the information you guys provide but the average person isn't rubbing shoulders with millionaires. Or has access to the funds required to pay cash for their first property.

    I am closing on my primary residence in a A class neighborhood next month. Kinda wishing I save that down payment on that and bought something with more cash flow.

    I just subscribed !

  • My husband talked to one of your agent and we've decided to move forward. We're getting our fund from our home equity for our first rental. Should we start our LLC before the purchase?

  • Hello. I just wanted to introduce myself. My name is Nancy. I’ve been following you guys for about a year now. Around the same time, I alsoI honed in on another real estate investment team and another investor. I am currently a student majoring in accounting, minoring in finance. I do currently self-manage my own investments, which are minimal. Last year my income took a $60k hit. I’ve spent the past year paying down debt, increasing my creator score. This fall I should be able to just about double my current income which will allow me to save for closing costs and a small down payment. Hopefully I will be a home owner by the spring of 2019. My ultimate goal is to be the CPA of my own companies; real estate investment (multi unit properties), property management, and expand my CPA services to other real estate investors. My boyfriend has been flipping houses for years (whole sale mostly) so we are a great team. Anyway, we are starting over almost from scratch. I just wanted to let you know how adorable you two are and I love your podcast. Take care.

  • I am confused! As a self proprietor, you can deduct depreciation. You can do that right of schedule E. why do you have to do LLC to take depreciation? Can you please explain?

  • You mentioned in one of your videos Garrett Sutton an expert on LLC's you mentioned to go to iTunes to listen to that video. What about those of us that have Android's…where can we go to listen to that episode? BTW I'm a new listener and I'm listening to all your videos. God Bless!

  • Thanks for my new reading list!

    Also I literally walked by my brother before watching this and thought to myself “man I wish he would get off the couch and do something!” Hahahahhahaha! Yes, we all have them!
    Great job guys thank you!

  • Lol! she's talking to herself! 10:32 "stay focus natalie!" love it! I couldn't focus after that! LMAO! I have the same thing happen to me all the time as well!

  • Y’all are exactly like my wife and I, minus cussing and 4 pit bulls milling around us at all times. I’m gonna check out the new tax code. Thanks you guys!

  • I have a commercial property in California worth over two million,
    the only protection I have is liability insurance, is that enough? or I have to do a LLC.(it's sole proprietor right now).

  • Who do you recommend I talk to or hire when just starting out? I am currently under contract on my first rental. Don't own any other real estate other than my primary residence that we only have 3 months living in as first time home buyers.

  • Thank you for all the advice and book references! I am ordering the books today. I am also referring you both to my sister! Thanks again! 🤗💖

  • What are the name of the books again? I want to buy and also what is your books? I want to start soon I don't know how. Thanks

  • That is my boyfriend, refuses to continue learning. I’ll always send him videos to watch about Real Estate investing but nope. Sighh

  • I just started following you guys. Love the channel. My wife and I love real estate. We’re both Navy vets in California. Natalie is TOO cool. She says, “stick it to the man” and MEAN it. Continued success.

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