0:15
Well, Hi, everybody know, we're just getting started. So, maybe there'll be a few people joining us, but this is more of a continuation from the discussion we had Thursday about how to use easements on real estate, and specifically how to use them for investing, and possibly rescuing real estate that's financially distressed.
0:33
So we'll just, um, let some people join here.
0:57
Hey, Christine!
1:24
Yeah, OK.
1:52
Right.
2:07
Sean, thanks for joining. I haven't ever done this before. I never tried the live feed on YouTube, but I guess that made it easier. So, people like me just had to click a few buttons.
2:17
But, um, I thought it was an interesting discussion on Thursday, and so I was gonna do a summary of it. And that's what I'm gonna do. I'm gonna do a summary of that on what I was talking about.
2:29
Did you guys get to hear it?
2:38
You should be able to hear me. Yeah, OK. It's shown. It's showing up.
2:44
You're welcome to post a comment, or even I think you can say something. I'm not sure.
2:49
I'm sure that works.
2:57
It's making me learn more.
3:00
All right.
3:02
Go back to that.
3:07
OK, well, so that's how I'm gonna do, and I guess this is being recorded, so then, I'll see how this works out. But, as we're discussing on Thursday, I gave kind of general couple ideas on the real estate.
3:19
So, instead of trying to control the title, we can control the use of the property through Lean rides that cannot be exhausted.
3:28
There are a couple of ways of doing that.
3:29
one is with a homeowner's association, The homeowners covenant the H a a covenant is going to be a lien this not exhausted during the foreclosure It's not effect.
3:42
It's not affected by a foreclosure of any kind, it's always going to remain there, until the H way withdraws it.
3:49
All right. It has to, it has to dissolve the highway and or remove the lean or amend the lean or something like that.
3:56
That's effective.
3:58
But it's just as easy. I mean, you could do an ... for one property or a whole neighborhood, but it's just as easy in my opinion to use an easement.
4:08
We already have easements.
4:10
But I can guarantee you that no one's using them in the way I'm gonna describe.
4:12
So let's say someone is suffering a foreclosure.
4:18
You could go to the property owner. and negotiate.
4:21
Now you don't have to explain what you're doing, because most people don't understand this stuff, but you can, you could, you could Negotiate a situation where the person can either stay there, or you can take the property, and you can sell it.
4:35
You can, you can do all kinds of things, OK, You can, you can rent it back to the one person who wants to stay that, right, by controlling the property. Not controlling the title.
4:46
Once you control the property through a lien, which cannot be exhausted, The use of the property goes from the titleholder to the lien holder. Let's call it the one who received the lien, right.
4:59
So it's important that we capture all the use rights of the property in the lien.
5:07
We have to describe it very well and that D, lienholder, lienholder or the benefiting party, it's not the title holder, OK? The one who's doing this easement process, it cannot be the same person as the title holder.
5:22
So, for many people, we would just use a trust and, or, I would even go as far as to use a trust and a limited liability company that's situated in the same state where the property is situated.
5:34
I just think, I mean, you don't have to do it that way. I just, I would do it that way.
5:37
And then, the purse, the person gets foreclosed upon his name gets divested from the title, but because he has, because of his association, with the, let's call it the Serbian Estate, OK, the the other party on the easement.
5:53
There is a new party now in the title, that person who wasn't the title who got foreclosed Upon, is now enjoying the same use of the property as he did before but as the easement rights holder.
6:08
So, what, where does that leave, the new titleholder? Sorry!
6:13
You're not going to be able to get possession. You should have looked at public records. The easement follows the title.
6:20
You can't remove it.
6:21
Without the, that parties consent.
6:26
That party used to be the title holder.
6:30
So, now that party is the easement lean right holder, OK, let's call that party, the servian Estate, and that's serving the state is going to stay there, as long as he wants to stay there.
6:41
Now, of course, he can give up those lien rights.
6:44
He can abandon them, he can negotiate the withdrawal of them, he can amend them, in that case.
6:51
If someone wants to go ahead and take the title, he just can't take possession.
6:55
It's not going to affect the person who wants possession, who has possession, and the rights are there.
7:00
So let's say there was the foreclosure and then the person becomes the title holder and then he wants to do a ....
7:09
An ejectment, right, like an eviction.
7:13
He must, he wants to take possession. And he goes to the Court.
7:16
He's not going to be able to do that, because the person against whom he's seeking to take possession has a perpetual lean, right?
7:25
In an easement, that's a matter of public record.
7:27
And that was the, that was the situation before the person acquired the title. He didn't have to acquire the title.
7:33
He chose to in view of, or having the opportunity to look at the fact that he was inheriting an easement, right?
7:41
That wasn't his.
7:42
Yeah.
7:44
So, imagine that, imagine if you got a perfected description of the use of the property, and you went around, defining distressed properties and you negotiated some sort of arrangement without money out of Pocket, but you're able to protect that the use of the property.
7:59
Let's call it any interests that's not consistent with your own, or with however you want it.
8:07
Make a list of them. It's going to be the property tax people. It's going to be the city code county code, IRS all of them.
8:14
I would even imagine civil asset forfeiture. It doesn't really matter any any any types of foreclosure.
8:21
Does those do not affect the lien an easement right?
8:26
So let's take it a step further And why could we not do this with commercial real estate?
8:34
You just have to negotiate with the title holder. A lot of times, they'll be corporations and that sort of thing.
8:39
They might look at you funny, their attorneys will look at your funny, This is why I like to have to, I like to criticize the attorneys. Because you have to understand what you're dealing with.
8:49
Because a lot of times, I'm not saying that you should accept everything I'm telling you, but don't go to an attorney and say is this guy right. He's never gonna agree with me, mostly. Now, the ones that that have retired and they don't care anymore, they'll tell you, they'll say, yeah, yeah, that's cool.
9:04
We won't do that as lawyers, but he's right.
9:06
Don't ask me that in front of the court, though, you know, Because they're not going to tell you they're not going to tell you these things. They're not going to tell you how to exercise and protect your property rights.
9:14
So, in any case, that is just one example.
9:18
You got these shopping malls that are abandoned. You got commercial real estate. I don't know what you should make of them. I mean, sure you can control the property.
9:28
then what?
9:29
But you could do it at such a low cost. If, if at all, at all that, why wouldn't you write, just pick, pick a property in your neighborhood when you can acquire the use of the property, you control. Everything, is basically your own domain, right?
9:42
So imagine if you had, in my example, during the call, imagine if you had 10 acres, 50 acres or whatever.
9:50
Who cares what the zoning is? Who cares? if it's agriculture?
9:53
It's just, it's just land.
9:56
Or it has fixtures on it, maybe it has a warehouse on there, maybe it has, maybe it has a manufacturing facility, maybe it's an industrial type operation, OK.
10:04
I don't see any distinction, I don't see that easement rights care go ahead and negotiate your easement rights because it will serve the people that are there, possibly, that can be done or not.
10:17
I mean, you can just become the person that uses easement rights to do what you want to do. But let's just say you have a clear title to something, or it doesn't matter, Let's see, You acquire the title The right to. You acquire the, right to sell real estate, that's 10 acres. Meaning, I don't care if you bought it in the name of a company or trust or in your name, it doesn't matter.
10:36
Whatever, if you have control the title and you have the right to sell it, you have the right to give easement rights on the property And what are those rights while they're rights that you have.
10:46
If you don't have those rights, you can't include them in the Easement someone asked me about mineral rights.
10:51
Yeah, you'd have to have the Mineral rights before you can include the rights those rights and the easement. OK, pretty simple. But imagine if you had this land or a facility and you're you created an Easement.
11:07
Well, let's say you created it.
11:08
Let's say you want different uses of the property.
11:11
So maybe you need funding for a thing on the property. But it's not going to be the whole entire parcel of land, let's say. So I just need funding for this part over here. No need funding for this part over here. Let's just say two things going on. And I would do an easement. Here's why I could do an easement.
11:28
Because it's a lien, right.
11:30
Much like a mortgage, except it's more solid. It's never gonna go. It's not gonna go away. It's not gonna be exhausted by foreclosure or debt or something like that.
11:37
But if I have an easement and I can make the easement expire, and the easement says that the, a person who has the easement right, who is going to be given the easement right, has the right, two, develop, or fund, or pay for, or whatever it wants to do, whatever he wants to do, on that property, under those easement rights, which cannot be interrupted.
12:00
And they could expire or not, or they could be renewed, OK. There's all kinds of things you can do with an easement, right.
12:05
But, the nice thing is, if, if you want to raise capital on some real estate, it's probably gonna have to be hard money.
12:12
But then, that's, that person's problem as to whether or not he goes to the bank.
12:15
And if he comes to you with hard money, he can put up the money and have completely secured interest that he has all the value retained.
12:26
And he can develop the property and do all these things.
12:28
So, it makes sense if, let's say, for example, I sell an easement right to somebody and he develops the property well.
12:36
When he does that, let's say the easement right, is reasonably worth a fifth of what it would be, after you put the money in. So you take a fifth of its value, that's enough to develop the property right? Well, that's his motivation. If I can, if I can know that the money I put in there is one fifth of what it's going to be worth after I spent that money to develop it.
12:58
Of course, I'd have to, you know, there's little bit more than the, the price of the easement, but I'm just saying that person is certainly it's a it's a no brainer, right.
13:06
It's, it's, it's certainly, it's a good investment, That's what I would think but this gives you something too present to a lender and while that project may be going on, you could have some other project that's identified in some other easement contract And you can add these, you know, overlaid on top of it really doesn't matter. You just record them and that instrument becomes the security for the money that's used to whatever they want to do, right?
13:32
It's just an idea that you know.
13:35
OK, you get your license. All right, yeah, you know, it's interesting.
13:38
Um, you can sell real estate, You know without a license. You just can't, you can't do it unless you have an interest in the property and one way to get an interest in the property is to get an option to buy it. So as long as you have an options contract, you just, you have to go through somebody else to get access to the MLS.
13:56
But there's so much good software out there, like Home Snap, for example, Hulme, Snap.
14:00
Home Snap is awesome, because you can just, you can just point your phone, at the front door of a house you're looking at, and within one second, you're gonna get the debt service. You're gonna get the history, the property, get everything right there.
14:12
In fact, it's so fast and comprehensive, that with Home Snap, you could just do that photo of the house as you're walking up and looking at it, and you can make an offer to this to the owner, if that's you know, what your, what your game is.
14:26
So, I like to make that comment, when, when someone says he or she is a, an agent.
14:31
Your, your uniqueness is that you have the MLS, but today we kinda don't care.
14:36
But that's interesting, I know they wouldn't, they wouldn't tell you to use an easement right the way I'm describing, but I'm thinking, you're not going to learn that in school. They're gonna probably just teach you how to fill out documents and things of that nature.
14:47
They probably won't tell you about, like, investing, I don't know. I mean, maybe you have special schooling or whatnot, but this is just one of the problems that investors have.
14:56
I don't know if it's a problem, is, just unique to that, the profession is raising money, and I just think this is a better way to raise money.
15:05
And it gives you a lot of power over the property, Right.
15:08
Um, I've heard of so many really cool, effective strategies for, like, for example, getting into the second lien position, so you can negotiate with the first lien position and get control the title. And you know wholesaling, and all these things.
15:21
But if you were to factor in this idea of establishing an easement on the property and everyone understands what's going on, I think you really have a lot of power. And maybe we have a need for this. because look what's happening, You know? We've got these insane corporations.
15:36
Yeah, I mean, I don't know. Did you want to ask? I mean, you're homeless.
15:40
You're asking about how to advertize yourself for what to, because you want to sell property.
15:47
I mean what I would suggest to you if you if you want to get some some deals, I mean you can stay in the market that you're in. You can stay. There's all kinds of things.
15:56
You can do, but um, yeah, OK, So you want it's a numbers game, right? You want to be able to sell property, So who wants to sell a property, right? I can suggest to you there's a service this is this is a service. It's not mine It's a disguise a well-known real estate investor his name is Ron Legrand.
16:15
I believe he has his hub in Atlanta, now if you go through Georgia, real estate investors association, you're going to find lots of nice tools, lots of really interesting people, Investors, and they will help you, but this process of bird *******, as they call it, right? To find out that, That eager seller. That's what you want. Right? So, um, and you're gonna find more of those, and what I would suggest to you, homeless, is, one of the strategies you may want to look into, is something that I really didn't like when it came out. But it was, sometimes it was a good deal for people, which is called a short sale.
16:47
This is going to be a thing again, if it isn't, if it isn't already.
16:51
So I would look at that, but I would also look at lead generation through a service like Ron Legrand has. He's got several of them, and some of them are very sophisticated involving software. And now what's nice is, instead of you doing all the legwork, he's already got people that are trained that do this sort of thing and you just pay a monthly subscription.
17:08
Mean it's pretty affordable, in my opinion. I mean, you gotta, you gotta weigh it against your time.
17:14
Right.
17:14
I mean, while someone's doing that for you, you could be closing that really hot deal. That, you know, you spent six months finding this worth $5 million. You know, it could be something like that.
17:24
Does that help you?
17:27
Florida good. Florida. You're gonna have a pretty solid. I think you have pretty solid results in Florida. I mean yeah, you have that. You have a diminishment in the home value.
17:36
I think if you're looking at, if you look at residential real estate but it's not as steep as the other states, and as you can look at the map, I think you're gonna find that horse country.
17:46
Marion County, it's pretty stable.
17:49
All right, but the surrounding counties have lost a little bit of value, but that's probably a good thing, You know, people like to sell, they get motivated. Right?
17:58
Well, I appreciate that, and I'm not a real estate investor, but I'm telling you, I borrow, if you will, understandings of real estate from my clients and partners, they, they help with a lot of this stuff. What I do, is I come in there with the contracts and legal strategies. There's one gentleman who's a high net worth wholesaler.
18:17
And I restructured his organization. So that he can always do closings and the money's always moving around and it's not he's never incurring a tax liability or he's not getting taxed twice.
18:29
So, yeah, that's, that's my involvement. I'm not, I'm not the guy that goes out there and does that, but I'm aware of all these tools.
18:37
But yeah, anyways, I, it seems like a pretty simple thing. Like OK, yeah, go ahead and do it. Um, I am working on an Easement right now. It could be a standard one that can be used in different contracts. I would like to go slowly. If I, if you guys wanna bring me a deal, I'll help you with it.
18:54
I just don't want to say here's a document.
18:57
Enjoy, because it, all bad things happen in those situations.
19:03
So, yeah, I would just look at that, try to try to get into a situation where you can find distressed properties.
19:12
The software out there is fantastic. Home Snap is, is one of the better ones. Even the, even the free subscription is good, but the paid one is, is the deal, that's really what you want.
19:23
Something else, I mean, I don't know if you guys have some cash to park, but one of the things I suggest sometimes is, um, and I don't wanna get too far off on this, but, uh, would be the tax lien Certificates, all right, tax deeds, and tax lien certificates, that is a nice place to hold.
19:39
Cash.
19:40
And, it's a nice way with you, If you put cash there, you need a way to work that portfolio. So, sometimes you can buy the entire portfolio, or you can do it, 1 Z 2 Z, I would just hire an assistant to do all that, but, after a time, you might acquire a nice portfolio. And what that would allow you to do is, that is not the end in itself. And, my opinion, what I would do is borrow against that portfolio.
20:01
So, let's say you had one point five million dollars with a paper. You know, tax lien certificates.
20:07
That is way better than anything in the stock market. Because, as you imagine, there is no stock market. Just start there, OK, and, and gold and silver, they're never gonna let us make money on that. We gotta make money on cash flow, So tax lien certificates is cash flow.
20:21
It takes a little work, It takes some hourly labor to deal with that. But it's it's a good, safe, secure place. But what's nice is that portfolio of tax lien certificates looks great on a balance sheet.
20:34
And you can pick different states, like, Florida has a 16% return face value. I'm not saying that's what you're gonna get when you, when you get them, because there's always a discount rate. And then you go to Illinois: 36%. So you gotta be careful on how you're getting them because sometimes they get to the auction. Some of those auctions, and we know they're not supposed to be but they're kind of rigged. So just be aware that that's why I'd rather go and buy someone's portfolio if I have a bunch of cash to park.
21:00
So, yeah, Taxanes, I mean, it depends, I mean, I don't you can you can get a wide range of face value returns. like like I said, Florida, is what, 16% or 9% I can't remember.
21:13
Maybe it's 16% tax lien certificates. And then you go to Illinois and it's 36%. But the thing is, when you acquire the tax lien, there's been discount rates, depending on where you are in that that process. Maybe you're the second person, right.
21:27
So the discount rate would determine your actual return also, though the speed at which you get the money recovered before, you have to do much on the property that also affects your, the value of your return. So, it is a bit variable in there. So, like, if, I'm just gonna say to you, OK, the highest tax lien certificates return rate of return is going to be Illinois.
21:49
Maybe OK, so on at face value is 36%.
21:53
In Florida, it's 16%.
21:55
So but the benefit of it is it doesn't matter.
22:00
All you're trying to do is have a portfolio of things that are guaranteed by the government that have regular cash flow. And I'm just going to suggest to you, a million dollars portfolio, like that is probably worth three times that.
22:18
Yeah, appreciate that. I appreciate that. Crow. Rising, I'm sorry.
22:21
I don't get your name there but that was a blast. I enjoyed that interview so.
22:27
I don't know if you are you following what we're talking about on um the The Pre-nuptial, the Post Nuptial divorcing, the State.
22:36
Then how to use the Highway Covenant And then now we're talking about the easements. I mean this has been the trend lately. What we're doing is, we're doing security agreements on our biometric data that's being collected by everybody. So that way we're, we're imposing a mortgage, basically, or a licensing agreement on all the collection of that.
22:53
So that way, all these organizations that are collecting our data are going to end up with public lean's, and it's going to show up in their balance sheets, one we're going to do with that. So yeah, let me know. It'd be, it'd be a fun conversation.
23:08
So I just really wanted to, um, I didn't want to bring up the whole discussion. It was a really good one on Thursday. But I just wanted to summarize these points. And, if you want to join the discussion, I know we're going to talk about this again on this coming Thursday, which is tomorrow, we're gonna cover this again. It just seems like a really hot topic.
23:25
Alright, so, um, I'm gonna, I'm gonna end this now, This is actually my first time recording on YouTube, so I'm just, I'm trying to learn how this works. So, I appreciate you all joining in.
23:37
Thank you so much and look forward to our next time.