Hey, what's going on guys super excited for today's episode, you saw the title, so you know you're in for an amazing treat. But before we get there, I want to take care of a couple housekeeping items. Number one, I want to really recognize our partners at the National Coalition for homeless veterans this giving, seizing if you can find it in your heart to give we appreciate the support that you give to those who are out there working hard to fight against veteran homelessness. We still have about 38,000 plus homeless veterans that are suffering in the streets with a whole bunch of things from PTSD to substance abuse to you name it and they need the support out there. National Coalition for the homeless vets do an amazing job at it. And you can find information on how you can support down below in the show notes page.
Lastly, I want to take a moment to highlight a five star review I haven't done in a while. So I want to bring this back. This one's from June Madigan was posted a month ago… says 100% recommend for all military if you are active duty or retired military, you should definitely check these podcasts out. Real Estate Investing has so many benefits as an investment, especially for military. This podcast helped me get a running start for real estate investing in early September when I first started listening every morning on the way to work it made me want to learn more. Now, seven weeks later, I am in the process of closing on my first house. I cannot say for sure that I would be here if my perspective hadn't changed. Thanks, Mike. And looking forward to it. more episodes.
Thanks so much again, Jim. Really appreciate it. And we appreciated having you on the podcast later on. Wishing you best of luck and success out there. And to all of you listening. Thank you so much for all your time and support and we appreciate your reviews. Please go out there and leave us a comment. Let us know how we're doing and let us know. Know how we can continue to serve you. Alright guys, without further ado, let's kick the show. We've got Garrett Sutton coming on. And I am super excited to bring him to you. Let's do it.
Hey, freedom fighters. Welcome to the Active Duty Passive Income Podcast. The only place where military members, veterans and their families learn how to build wealth through real estate investing. I'm your host Mike Foster, and I'm here to show you how to stop wasting your benefits. Now, get off your ass. Step up to the firing line and make ready for today's lesson.
Today’s Guest: Garrett Sutton
Shooter standby. Hey, what's going on guys? Welcome to the Active Duty Passive Income Podcast. I am super, super excited today to share with you one of the legends in the game. His name is Garrett Sutton you know him as Robert Kiyosaki is legal advisor. He is the author of loopholes of real estate amongst many other amazing books. And he is the CEO of corporate direct. Garrett. How are you doing?
Good, Mike. Thanks for having me today.
Thank you so much for being on our show. So this is an absolute honor and a pleasure, and I am super excited to be here just talking with you.
Well, there's a lot to learn about real estate investing is you know, so I'm happy to share whatever I can with you and your listeners. So again, thanks for having me.
Awesome. Well, I know that our listeners are super excited to hear from you. And I can't wait so do you want upside? I'll call you sir. This entire podcast began to you.
Can you give us a little background on you and how you got started in Real Estate investing?
Sure. Well, I grew up in the San Francisco Bay Area. I went to Berkeley and for undergrad and then I went across the bay to Hastings College of the law. That's the University of California is law school in San Francisco and I studied law and passed the California bar and decided to move up to Nevada is a great state for setting up entities so it was good for that and you know I practice law here in Reno where I'm located and how did I get started in real estate investing? Well, it's kind of funny Mike.
I bought my first house and then got married and we needed a bigger house and so you know typically you think that you would sell the first house so you could buy the second but it If I sold the first house, I would have lost money on it. So I decided, you know, let's just keep it as a rental. And so we kept the first house as a rental and that's where I first cut my teeth on real estate investing and it turned out to be a good thing because the market went up. And, you know, by the time I sold it, it appreciated quite a bit. So, I was kind of just luckily forced into it. And that was my first exposure. And then I joined Robert Kiyosaki Rich Dad advisor group. And, you know, one of the things that Robert is, is keen on, you know, my keys, a marine first and foremost, first and foremost, Robert Kiyosaki is a marine. And he holds us accountable for a lot of things and you are not going to be one of his teachers unless you practice What you preach and so and Robert encouraged me to be continue with real estate investing. And so I bought some apartment buildings and have learned a great deal about real estate investing just from doing it. And so that's how I got into real estate investing initially is an accident and then with Robert Kiyosaki insistence if you will you know by investing in larger properties and it's been a good thing if your listeners are just starting out you know just know that getting into the real estate game they're going to be some ups and downs but at the end of your career when you need that passive income to sustain you because social security is not going to be there for any of us to have that passive income at the end of the day is really going to be a good thing your spouse is going to be thinking you're pretty darn smart for Having invested in real estate along the way that is that is so true. And I think that we lower ourselves into this false sense of security that, you know, the pension or the, the, you know, I guess Social Security, right. We'll be there for long term stability.
But you're right. I mean, it's not, you know, these things are kind of volatile. So having that backup plan is the smart way to go about building your retirement and really crazy how Robert Kiyosaki was the one that help nudge you get further along into the journey That's awesome. Yep. You know, and these pensions like you say, Mike, the state of California has promised x and funded why and the difference between x and y is a trillion dollars so they're underfunded by $1 trillion and the state of California can print money like the US government. And so there's a day of reckoning coming with all these pensions. And I think people just have to be aware that, you know, it's prudent not to rely on the government and you've got to take steps to forge your own way and provide for your own retirement, independent of government, pensions and payouts, right?
Wow. Oh my goodness. That's crazy. Yeah, well, yeah. So definitely, if you're listening guys, make sure you take notes, the time to start is now and getting educated.
Can you share with us some Real Estate investing challenges you faced along the way?
Well, one of the challenges was just dealing with tenants. You know, when I when I talked about that first house, I had someone in there that was you know, was kind of a flight and you know, my parents always raised me to You know, pay your bills on time and to be prudent and things and then you'll deal with some of these tenants and, you know, they weren't raised the same way I was, you know, they'd rather pay their cable bill than their rent. So you just have to be able to deal with these tenants. And some states like California are really difficult for evicting tenants. I mean, tenants can string you out for two or three months of free rent before you can see victim Nevada on the other hand, it's good you can you can get someone out in five days. But, you know, it's important to understand is your that is the state where you're investing in real estate, is it tenant friendly or landlord friendly and some of these states have got have bent over backwards to, you know, accommodate the tenants and certainly people have problems and all and that
That's understandable. But you know, as a landlord, I've got to make the mortgage, right? And so the tenant that doesn't pay me is forcing me to come out of pocket to make that mortgage. So you really want to choose your tenants carefully. You want to do background checks, you know, in someone who's willing to pay the rent, but doesn't have a good background check, you know, you're going to pay that extra 50 bucks and find out if this person has been evicted from other places has good credit, you really want to bring in the right kind of tenant because the bad kind of tenant they're going to string you out on the rent, they're going to destroy the property. And this is not to say that you shouldn't invest in real estate I think you should. But there are issues associated with real estate investing, and we'll talk about the asset protection but right now when you asked about the challenges I had, Mike One of the top ones was just learning to get the right tenant into my properties, right? And did you manage your properties yourself?
The first rental I did, and then the apartment building that I bought, I had a management. I had a manager in there for a while, and then I brought in a management company. But it's not something it's not a hands-off thing. Even though you have a management company involved, you've got to be looking over their shoulder to just make sure that everything is done properly. A true That is very true, right. The phrase that we hear often in the military is trust, but verify and you want to make sure that you're not, you know, putting all of your assets in the hands of other folks and I think that that's part of the reason why we end up having these huge you know, issues when it comes to investing because people want that hands off approach but they don't. Go through the extra steps and making sure that their money's in the right place. And it's being taken care of. Right? A lot of dough in the hand. Go ahead. No, no, please go ahead. Well, that the hands-off approach, you know, works in some types of real estate investments. A triple net lease property, where you have you own a building that Arby's is in and its triple net, meaning Arby's pays everything and then deposit a check in your account at the end of the month. And, you know, it's pretty easy, and it's pretty hands off. But those are the kind of properties that you get towards the end of your career. I think at the start, you're going to pay less, you're going to have more management activity. But a good place to start is, you know, initially a single-family home or a duplex and then you can build up to the triple net lease properties at the end of your career when you really don't want to be hands on all the time.
So at the start these are all issues you're gonna have to deal with. Okay? Got it. Yeah. So it kind of escalates right? A baby step. Yeah. as it were, right? Right. Yeah. start somewhere. Make sense? Okay. Well alright guys there it is another reason to take action now while you're young, right? That's it. Yeah. Yeah, I wish I'd known about real estate investing. When I was in my 20s. I didn't get into it until I was in my late 30s. But I have clients that have read Rich Dad, Poor Dad and loopholes of real estate and have taken to it and you know, some of these guys in their 20s have 10 or 15 properties. And I think it's terrific that they have taken the steps early on in their career and learned how to buy real estate and manage real estate as well as hold real estate and I can tell you by the time they're in their 50s and 60s they're going to be doing Just fine with passive income.
Amen. That is exactly why we're trying to encourage as many folks as we can on our side, too, because we know that the influence of buying and holding properties can build you that right.
Can you offer some advice to those military members who move often and hold onto their property? What sort of things should they be thinking about, specifically for asset protection?
Well, in terms of asset protection, Mike, they should have an LLC that's the best way to hold real estate title now they should have an LLC on title to that property. So you're stationed in Georgia we would have a Georgia LLC for the Georgia property and typically then we have the Georgia LLC owned by one Wyoming LLC. And we can talk about why Wyoming, then you move to Oklahoma, and you buy a property in Oklahoma, the title to the Oklahoma property would be in an Oklahoma LLC owned by that same Wyoming LLC. We don't need to set up a new Wyoming every time, but you would set up a new Oklahoma LLC to own the Oklahoma property. And then you would just do that for each property as you move around. And then, you know, if you've moved from Georgia to Oklahoma, you probably would have a management company a good local management company handle management of the Georgia real estate. And again, you want to be able to look over the management company shoulders, so either you or maybe a friend who's still stationed in Georgia Can you know, can look in on the property and assist you in that regard. But Mike, I've had clients that have moved to various bases around the country. And they picked up a property here and there, their strategy is to buy and hold, and it's worked out well for them. I mean, part of the advantage is that if you have real estate near a base, there's always a need for housing. Right?
I agree. That's right.
And so, you know, that they're, they're going to be guys coming into ga that are going to need a place to live if they're not on the base. And so, you know, when you keep the network alive, and people will rent from you because you're in the service. So, you know, it's a good strategy, it's a great strategy and that's exactly what we try and encourage it.
Thank you for all for that advice.
Is it enough to just transfer your assets into an LLC, or is there a special way you need to do it?
Well, there's more to it than that. And to take a step back, Mike, people will form the LLC and then forget to transfer title to the property into the LLC. So you got it. You know, once you set up the LLC, then you have to take the affirmative step of going to the County Recorder and transferring title from the you know, from your name individually if you bought the property that way into the name of the new LLC, but then you asked a really good question. Okay, we've got the title to the Georgia property in the GA LLC. Is that enough? know there are requirements every year that you have to follow. They're called the corporate formalities they apply to corporations and LLC, and you have to take steps every year to follow these formalities, which include holding a meeting once a year, every state says you've got to hold a meeting once a year. We help you with that we prepare the meeting minutes. We also give you a book that shows you how to do it yourself. But a lot of people never get around to it. It's kind of like going to the dentist the hill, it's just not something they want to do. So we'll help you with that. But you have to do that. According to state law, you need to have a resident or registered agent in the state of Georgia or Oklahoma or wherever your LLC is, and that's a person that will accept Service of Process meaning a lawsuit so you need to have someone resident in the state that can accept notice of a lawsuit. If you don't, that can create real problems. You may never get notice of a lawsuit and then someone can get a default judgment meaning they may win without you even getting to present your case. You need to pay your fees to the state you need to do a separate tax return in some cases. So these are all the formalities that you have. have to follow. They're not hard to follow, but if you don't follow them, then someone can pierce the veil and get at you personally. So we've set up a corporation or an LLC and for real estate will use an LLC we've set up an LLC to provide limited liability protection if a tenant Sue's they can't get beyond the LLC to get your personal assets, they can just get what's inside that LLC. But if we don't do the minutes if we don't pay the state, see if we don't have a Registered Agent, they can pierce through the veil and get at your personal assets. And we don't want that we've set up the LLC so they can't get your personal assets. Right. We just have to follow these formalities every year to make sure that that veil of protection stays up and strong.
Wow. Yeah, that is extremely important.
And I'm assuming now it's not just, you know, as easy as going to say something like LegalZoom then right and just setting up your LLC online. And then, you know, just making sure you do all these things, or is it important, our legal team, some of the online services I have a problem with, because they'll just take your information and they will give you advice, whether you should be a corporation or an LLC, or whatever, right. And so we provide the same service at about the same price. And we're lawyers, we understand the importance of some of these corporate formalities at all. So, you know, I think it's important to work with someone who appreciates the law. And then again, you know, some of your listeners are going to have unique situations where you know, it helps to get on the phone with a lawyer and talk through the situation and come up with a plan specifically tailored to your unique situation so you know I get on the line with people Mike and it's $175 for half an hour and in half an hour we can usually come up with a solution but if you know you just need a Georgia LLC you know just call the office it's very inexpensive to set it up and you don't even need to talk to an attorney in that case if you're buying a piece of real estate in in Georgia or Texas or wherever you know you need to Texas LLC for the Texas property just call us up and we can set up that entity awesome well alright so you guys so make sure you taking notes and we will definitely have, you know, links to your website carrots, make sure that folks can get in touch with you because it is very important and I think this is something that a lot of folks don't realize as well that that corporate veil right can be pierced right. Yeah, can be peers. So we just want to follow the formalities every year.
Exactly. I kind of want to touch on just some of the risks. Maybe in your experience…
Can you give us a story or two on some of the risks that can possibly happen?
Yeah. Mike, I tell this one a lot, because it was really sad. This lady came up to me. I was teaching a seminar in San Francisco, and she just bought a duplex and she wanted to put it into an LLC, the property was in California, so you've got to pay California fees on that. And in California, the fee for an LLC is $800 per year. Other states are not that expensive. Wyoming, which we use is only $50 a year but California is $800 a year and I said you know, I'm Happy to set up the LLC will transfer title from you your name into the LLC. But it's going to cost you $800 a year for that LLC. And she goes, Oh, I can't afford that. And I go, I'm sorry. Those are the rules of the state of California. It's $800 a year. She goes, Okay, well, I'm just going to keep the property in my individual name. And so the next time Mike, I was doing a seminar in San Francisco, she came up to me and she says, you know, a tenant sued me I'd like to set up that LLC now. Well, at that point, it's too late. Your title to the property is in your individual name and there's an accident on the property you can't put it into an LLC later and hope to be protected at that point it's too late so she you know, by not setting up the LLC right at the start she was personally respond. Suitable for that tenant claim and it was not a happy situation for, so you know, a lot of guys think, Wow, I'll do this later I just want to buy the property and get title in my name and I'll transfer it into an LLC. Later what happens Mike and I have plenty of horror stories to show this is they forget to transfer it into the LLC you know, they just they move on to other things they forget to do the transfer and then they get sued and at that point they're personally responsible so you got to take steps right at the start right to protect yourself right Wow. Oh my goodness. Well, I I'm praying for that lady. I'm hoping things
it's really sad. But yeah, guys, make sure that you do it right. I mean, Garrett is absolutely right.
I mean, if you're going to do this, right, you might as well do it the right way. There's no reason to, you know, risk not doing it the right way. And then later on something bad happens, especially when you're, let's say, in the middle of deployment, you know, I mean, right came to imagine what the repercussions would be. If you're getting sued, you don't show up, you don't even know about it. And now you have this responsibility as soon as you come back. That's crazy right now. The other thing Mike is when you transfer title from your name into the LLC, you'll probably have the insurance and your individual name and then when you want to transfer title to the LLC you want the insurance company to know that title is in the name of the LLC they'll use the fact that titles in the name of the LLC and insurances in your individual name to deny coverage you know these insurance companies find every excuse they can denied coverage you know you're paying the premium is but how dare you make a claim so what you have to do is you'll talk to the insurance company and you'll say look title To the property is now in the LLC name. I'd like to have insurance under the LLC name. And what they'll say is okay, the LLC is a business entity, we have to charge you a higher insurance premium because it's in a business entity, which of course is nonsense. I mean, the risk of a fire at the duplex is the same whether it's in the insurance policies in your name, or in an LLC name. There's no difference of risk. But here's how you skin the cat. You say, Okay, leave the insurance in my name, but lists the LLC as an additional insured, meaning the insurance covers not only you but the LLC, which is on title to the property so that's how we get around that insurance snafu.
Okay, that is awesome. Oh, nice. That is definitely good guys. I really hope you took notes on that. I just did I think I'm going to start doing that too. No on That's incredible. Okay. And that doesn't change the price at all or I guess know, in my experience the insurance company says and you want a good agent on your team, you know, I mean, you're going to have a lawyer, a CPA, and certainly a good insurance agent is a key team members, someone who's on your side, you know, but the insurance companies will charge the premium as if it's in your individual name. And then you get to list the additional insured which is make sure it's exactly it's the name of the exact LLC. That's on title. Right. Okay. Got it…
Staying on the topic of an LLC, when transferring the title and the property over to the business name, does that cause and issue with the bank?
That's a really good question. I get that a lot Mike. So here's what happens. You say you Buy the duplex and you have a mortgage on it. And then you transfer it into the name of the LLC. If you ask the bank a lot of times they say, no, they're getting a little better. But a lot of times they say, Oh, no, that's due on sale clause, meaning you've transferred the property as if you've sold it. And the loan is do well, first of all, you haven't sold the property, you've just transferred it from your name to your LLC name, right? So there's no sale there. And the insurance company still has your personal guarantee on the note that doesn't go away. They still have a first deed of trust against the property that stays the same. So the FHA allows it, they call it continuity of obligation. And so your listeners should write this term down if it ever comes up its continuity of obligation because You still are personally guaranteeing the loan you still the bank still has a first deed of trust against the property. The obligation that you have to the bank has not changed. It's continuous. So continuity of obligation is what is what you'll use if it ever becomes an issue. Typically, though, I tell my clients to just make the transfer right from your name into the LLC name, and then you'll make the mortgage payments with a check that is in the name of the LLC. So the bank will accept that check. And they're kind of waving their argument over time of accepting the LLC check.
Okay, and so, you know, is it better to ask permission or forgiveness
that's fair. Certainly, it's better to ask for forgiveness. Oh, I'm sorry. I didn't know I couldn't do that. And then we have a we have a little strategy for the bank.
Does that but Mike, I've got to tell you, I just don't see it happening. The banks are getting used to the idea that LLC these are how people want to hold title and frankly it's better for the bank to have title in the name of the LLC because if the individual gets sued, it's going to disrupt everything. It's much better if the LLC gets sued, right, the bank is better protected. So typically it doesn't become an issue. If you ask for permission, though it could become an issue because some of the people you're dealing with you know, they don't know the ins and outs and you know, you may have to play the level game where you go from you know, bank manager to bank Vice President and right this is another reason you want a bank or on your team to you know, you want someone who will understand that you need an LLC for asset protection and the bank is still going to get paid in that scenario. So it's just not that big of an issue. Although a lot of people, Mike are concerned about it, when you when you get into it, it just you'll see it's not that much of an issue, the bank will accept your check drawn from the LLC account. Thank you. Thank you for shedding light on that. That is definitely something that we've heard come across the group multiple times. And I think that this is that fear that everyone has associated with banks because, you know, it can be very burdensome, burdensome, you go into the bank seeing that giant schedule and as much money that you're in debt now and they fear that they're going to have to come out of pocket, you know, 100 or 200,000 in the event that they do anything wrong so well. And, you know, if they if the bank does somehow come back and say, you know, we're going to exercise is due on sale clause. First of all, you're going to make the argument you never sold the price. But then if the bank is that determine you would say well okay I'll transfer back to my individual name right okay that's what they want and you know but it won't get to that point it just in my experience I've and all these entities it I just don't see it happening and honestly guys this is definitely something valuable because I mean Garrett he I'm sure you do what like thousands probably in a year right your company I mean this is we do a lot of them you can write out this is not something that is just you are a super professional and a legend in this so we definitely die the experience so guys take notes and I had definitely wrote down that continuity of obligation because that's all right I'll keep my pocket in case that does that's the key term.
All right so I know we've mentioned a couple times about different states right entities in different states but…
Are there states that have better protection than others?
Well, as we mentioned that structure where we had the Georgia LLC and the Oklahoma LLC owned by one Wyoming LLC, and the reason we like that structure is if you get sued by a tenant in Oklahoma, Oklahoma law applies, right? So we're, we don't need the Wyoming for that one. But like, let's say you get in a car wreck, and it has nothing to do with the Georgia property or the Oklahoma property. You know, someone has a claim against you for a car wreck, then they would want to come after the LLC that you have to get it the real estate that's where the Wyoming comes into play. Wyoming provides excellent asset protection, as does Nevada and Delaware. But we'll talk about Wyoming is better so if someone is suing you personally does Have it doesn't involve a real estate, they want to get at the real estate though, so someone suing you personally, they have to fight through the Wyoming LLC in Wyoming. The exclusive remedy is the charging order, which is a lien on distributions. Unlike California, LLC, where the court says have added Mr. car wreck victim, go sell all the California real estate. We don't want that we want Wyoming in place. Wyoming says okay, you have a claim against Mike, but you don't get to go in and force the sale. The real estate you're just going to get whatever Mike district is receives and distributions well, Mike may not receive anything in distributions under this structure as well. The attorney who's on a contingency meaning they get a percentage of what's collected. They don't want to sit around and have to fight with a Wyoming court and see what kind of distributions are made.
So we always recommend that you have insurance and you'll have car and home insurance. And on top of that, you can get what's called an umbrella policy which covers other claims, but really provides extra coverage if you get in a car wreck or if someone falls at your property. And typically, you know, an extra million dollars of umbrella policy coverage is only $400 a year you know, so it's pretty it's pretty inexpensive insurance by having regular insurance and an umbrella policy the attorneys know how to get at the insurance money right they're really good at that they're not very good at getting at LLC interest it's a pain is that it takes extra time they'd rather move on to the next case that had insurance money because they know how to get it that so we use insurance and then entities insurance or the first line it's fence entities are the second line of defense. And so we want to have it structured so that someone can collect on insurance. And then they're dissuaded from going after the entities will. Wyoming, Nevada and Delaware are really good when it comes to that charging order protection that lean on distributions. The reason we like Wyoming over Nevada and Delaware is, as we mentioned, Mike, Wyoming is only $50 a year. Right? Right. So all you have to pay to the state and then we're your Resident Agent up there in Jackson Hole, Wyoming, and that's only 125 a year. So for 175 a year, it's like another form of insurance, you have that Wyoming protection as well. Wyoming does not list your name on the state website as being an owner of the LLC. So you have privacy there too, if someone's looking to see what you all in anticipation of a lawsuit, they go to the Wyoming website, they're not going to see that you own XYZ LLC. Your name doesn't appear anywhere. So that's why we like Wyoming, good asset protection, affordable fees $50 a year and privacy Your name is not listed on the state website so that's why I like Wyoming is the best state certain states are pretty weak California as we mentioned New York. Utah's really weak so we don't want to set up the holding entity in one of those states because they're weak states
Wow that's incredible and it's really interesting because you know you see real estate booming in places like New York and California right but I mean that the protection I wonder I guess you know, that's probably where they go they go to states like Wyoming right where there's a lot of strength behind that or insurance,
Yeah, and so You buy a property in New York, it's going to be held in a New York LLC. But then the New York LLC is owned by the Wyoming LLC. So in the car wreck example, they have to fight through Wyoming to get it New York and fighting through Wyoming is not a winning proposition. Wow, that is awesome.
Guys make sure you take notes on this. This is incredible wisdom. Thank you so much, Garrett.
Can I ask another question?
I get a lot of questions about S corporations. You mentioned a lot about LLCs, but can you offer some advice on S corporations?
Sure, Yeah, the S corp with the S corp taxation, you're going to be paying more in taxes than you would with just using an LLC is a disregarded entity or if you have, you know, two partners as an LLC taxes a partnership. So also sometimes when you need to transfer title in and out of the entity with an LLC, it comes in and out of its basis. There's no tax involved when you transfer property out of an S corp, that's considered a sale of the property and you have to pay tax on that. So I much rather have my clients just use the LLC for holding real estate. The S corp has its place as corpse are great if you run a business and you can have an LLC taxed as an S corp or a C Corp if you want. The LLC is really flexible. It can be taxed however you want. But the S corp is really good for business in the sense that you pay yourself a reasonable salary and you pay those darn payroll taxes on that and then the rest can flow through now. salary but as a distribution, and you save that 15 for 15.3% to the IRS on the payroll taxes. And I know this is kind of complicated, but I wrote about it in the book start your own Corporation some of its also in loopholes of real estate. So but as a general rule for your listeners, and there are certainly exceptions, but as the general rule for your listeners, you're going to use an LLC to hold real estate title, you're going to use an LLC, taxed as an S corp to conduct business or if you're involved in flips, that can also work for flips.
So again, there, you know, the government gives us all sorts of choices. You know, you could be an LLC, a limited partnership, a C Corp, an S corp, it's great. They give us all these choices. They don't teach it in school, of course, to go out and to learn it yourself, but at least they've given us the choices. And so you'll, you'll come to learn which entities that you know you should use in this circumstance or that circumstance. And again, if you have questions, I can just get on the phone with your listeners at 275 for half an hour, we can go through what the best choices for you and your specific situation.
Wow. All right, we'll see. There you go. definitely make sure that you get the help that you need and deserve because setting it up right the first time can go you know, leaps and bounds and you don't have to worry about that headache. So that is awesome. Thank you so much, Garrett. We really appreciate your time for this podcast. This has been amazing and you've given us so much wisdom.
I honestly would love to, you know, hear more about you know, corporate direct and what you guys are doing and I'm sure our listeners you know, would love to hear kind of what other services you may offer and if you User eco friendly yet corporate direct is our company that provides LLC and corporate formation services. And as we mentioned with the corporate formalities, we also provide the maintenance services. Once you've set up the entity, you have to maintain it. So we help you with that at corporate direct if you have an LLC or a corporation where you haven't done the minutes for a few years Don't tell anyone but we can we can clean it up for you so that your current we have a clean-up service and then we provide the Resident Agent service in all 50 states. So say you have an LLC and you don't like the Resident Agent, they're not responsive or whatever, you can switch over to us and we'd be happy to work with you on that basis. So the website is corporate direct. com or you know, you can get on the line with one of our paralegals we provide a free 15 minute console about what we offer and how we can help you. And so you can call 800-600-1760 and just asked to speak with one of the account reps. Now, I will mention Mike that, you know, we do value our service members and, you know. Robert Kiyosaki is a marine certainly appreciates what all of your listeners do. And so if you mentioned Rich Dad, when you call up for setting up an entity will give you 100 hundred dollar discount. So the regular price is $695 for setting up an entity. If you mentioned Rich Dad, it's just $595 plus the filing fees which vary from state to state, but the 595 prices the package price and includes everything and includes the articles have filed with the state. It includes tailoring your operating agreement for your specific situation… we do the minutes we issue the certificates not many of these online guys issue the certificates and if the stock certificates if the IRS comes calling you want to have those issues that's a big thing for them to see so we do the whole package and we would love to work with your listeners Mike cuz we appreciate all you guys do.
Wow thank you so much Garrett, that is amazing and I really hope you guys take it take please take that that is incredible and amazing quality you know service like this You definitely want to take lightly guys so make sure that you write that down and know that will also be in the show notes for you guys to check out as well as the number in the in the website link to go check out corporate direct and all the great things that they're doing out there for us thank you really appreciate right well thank you Mike for allowing me to speak with your listeners today and I'm I encourage All of them too and it sounds like they are you know consider pursuing real estate as a you know passive income generator for you throughout your life absolutely but before you go I gotta take you to the bonus round otherwise my all right definitely hate me for this one so…
What is your favorite book?
You know I read this book when I was in college and it's just it's always been one of my favorites and it's called a man called intrepid and it dealt with William Stevenson who helped defeat Nazi Germany by being this spy in Europe and he came up he, you know, came up with the What was the name of the code, you know, he cracked the code and the Allies were able to Understand what Hitler was doing because he got one of these Enigma codes over to Britain. And the stories in this book are just incredible. So it's called a man called intrepid by William Stevenson. All right. definitely gonna look that one up.
That is amazing. Now, that's a great story. Yeah, that's incredible. Okay, Linda Stephenson. All right...
Who is our favorite hero and why?
Well, I always like Teddy Roosevelt. I thought he was he, you know, he had a unique American energy. He helped bring the country into the I guess then the 20th century he just he's always appealed to me. In fact, I named my son Theodore because I always liked that he wrote you go as awesome.
What are three nuggets of wisdom you would tell those looking to get started in Real Estate investing?
Well, a couple. Yeah, the three would be one, you know, pay your real estate broker don't try and, you know, chance him on the, on the fees treat your real estate broker, right? They're going to bring deals to you name it, they're going to know that they can work with you that they're going to get the commission that they've earned, you're not going to chisel them on it. So just treat your real estate broker, right and they'll bring other deals to you in return.
Another thing would be just to you know, at some point you're going to read, you're going to go to seminars you're going to learn but at some point you gotta do you know, a lot of people get stymied, they call it the it's called the paralysis of analysis, you know, and they just want to know every single number and it prevents them from going out and actually buying real estate and just know you're going to make some mistakes on the first day. Couple deals. It's okay. Right? You're supposed to make mistakes, it's normal. So just get out there after, you know, after a reasonable amount of time of learning, get out there and do it. You're going to learn more by doing it than ever reading a book.
So the, the third one would be just as we said on the show, Mike, protect yourself right from the start. You know, the people who say, I'll get that LLC later. It's funny how it works out, but they're the ones who gets sued by a tenant when title is in their individual name. You just need to do this right from the start and be protected.
Wow, amen. Amen. That is so true. And an amazing nuggets. definitely take heed, guys, this is sage advice from a legend, so this is incredible. Again, thank you so much, Garrett, to really, really appreciate. Your time get wow I'm Florida I've gotten so many notes on my page I know I'm going to go in and there's some things I got to implement here now in my in my strategy investing so but then anyway I'll let you go I know you're very busy thank you so much again and guys make sure you get in touch with Garrett Sutton.
Incredible all right thank you Mike and thanks for having me on the show and good luck to all of your listeners in your real estate investing all right thank you.
Wow What an incredible interview and what an incredible guy definitely get in touch with Garrett and his company they will take care of you and there is something to be said about setting it up right and setting up right the first time okay make sure you take heed to have a good principles lessons in this episode. If you guys are ready to get started investing in your future and taking action reach out to us www. Activity passive income. com check out our military real estate Academy.
We catered it just for you because we want to make sure that you get off to a good start and get off to the races. Make sure you check out the show notes page to all of Garrett's resources and for a link to set up your financial freedom, call with me. I want to hear from you. I want to hear your goals. I want to hear what's going on. So please get in touch and let's figure it out and make it happen. Alright guys, I'm running out of time. I'm out of here. Take action today and go make stuff happen in your life.