Real Estate Revealed

#1 - Introducing Real Estate Revealed

Dave Seymour
November 24, 2020

SUMMARY KEYWORDS

capital,commercial real estate, real estate, investors, people, money, north shore,opportunity, investments, created, world, talking, retail investor, important,marketplace, individual, forbearance, financial, sec, buy

SPEAKERS

Dave Seymour, Intro Voice Over

 

Intro Voice Over  00:00

Have you ever wanted to create cash flow outside of your job income or retirement plan? Have you considered large commercial real estate assets? Do you know about alternative investment strategies? Keep listening. This is real estate revealed hosted by Dave Seymour, the star of any living Boston and CEO of freedom venture investments in Denver. Get the real deal about investing in commercial real estate to create long term stable financial wealth smarten up your real estate skills now.

 

Dave Seymour 00:35

WellHello there and welcome. Hi, this is Dave Sema, I am your host of real estaterevealed very excited about what we have going on. Welcome to the show. Welcometo be a listener here. I know it's a Saturday afternoon maybe making a littlelunch for the kitties. Maybe you're about to tee off on the first hole. Maybeyou're out there in a little leaf peeping right now whatever it is that youhave going on, I do appreciate you dialing in and listening to us. Listen tothe information that we can share with you guys. The idea is to be some kind ofservice open up the windows air out some ideas and suggestions around realestate real estate investing. What do we know? What don't we know? You know,when I balked upon this journey to to be able to share some of this informationwith you talking with the folks here at 104 point nine there was a void in myopinion, there was a void in some of the strategies that I've used in my owncareer as a real estate investor. Some of the techniques some of the ideas thatkind of bent the the reality of what was normal for me, it's it's amazing to mehow you know, we're all following a very similar pattern, I think based off ofthe information that we are given as as young adults and we work our way intomiddle aged adults and the journey continues so you know real estate revealedis a show that's designed to I'll tell you what it isn't Why don't we go therehis his what real estate revealed is not it's not going to be HGTV fluffingbuff it's not going to be the honey do project you know put up the new lightslet's let's change the paint and carpet. Why don't we do? Why don't we go downto the to the big box store and buy some plants and put some new plants inoutside? How does? How does the pumpkin pile look today? Do we have the strawscarecrow? Do we have the the moms is it moms it is right it's mums. At thistime of year that we have the mums out that's not what real estate is about.For me, we might touch on some of that stuff. We might touch on, you know someof the tips and tricks and techniques that I've learned in my own career as aas a single family real estate investor. But my goal is to elevate this game alittle bit, you know, what would it be like if if cash flow income if you willwas not generated from a from a j ob? What if What if cash flow was notgenerated from trading time for money? You know, what, what if what ifretirement accounts were able to grow at a higher rate of speed, if you will,what we call in our line of work, the velocity of capital, how fast it goes towork, you know what, what could that be like? So real estate revealed is awindow if you will an insight into what I've done in my own career, like Isaid, starting out as a single family real estate investor. After serving bythe way 16 years in the city of Lynn, Massachusetts as a firefighter and aparamedic and being able to transition from that to where I am today. I'vefound that there are a lot and I mean that sincerely a lot of opportunities togive people just some some insight some education that maybe you can't find ina book, maybe some education that you're you're not freely given to you as a asa member of a great great society. Like I've got a different playbook and youknow real estate revealed is a is an insight into that playbook. So look, Ithink it's always important to to at least get a little feel for who it is thatyou're listening to. I am Dave Seymour. As I said and some of you may recognizemy my dulcet tones my my special accent from the hit TV show flipping Boston.We did four seasons 29 episodes on on a&e network seems like such a longtime ago. Oh by the way, if you are a prime subscriber, I know that they arecurrently airing episodes of flipping Boston on Amazon. Hey, my I made it tothe big time I'm on amazon prime. But I spent a good portion of my career inthat arena, buying properties throughout the North Shore, from Newburyport toto Lynn to North Andover all across our towns and areas, my my partner and I,Peter would buy these properties, we'd fix them up, and we deliver the dramathat was s. Li, necessary for a reality TV show. And I think there's a tie inhere, I think it's important that I emphasize the word TV show sh o w, becausethat's what it was, it was designed for entertainment. It was designed forpeople to dial in and, and let the let the journey just kind of wash over them.So look, it gave me the credibility, if you will, to be able to, to share a lotof my own experiences in real estate, buy, fix and flip and sell for profit.And we we were exceptionally successful in doing that. But what a What aninteresting point is, is that throughout my 12 plus year career, I was alwaysinvolved in what is called the commercial real estate world. Now for some folkswho have never experienced or entertained what commercial real estate is. Itcomes in many, many shapes and forms. It comes in landlording if you've got athree Decca in Linn or a three Decker in eastie, and you live in one and yourcash flow to then basically you're kind of like dealing in a commercial realestate marketplace. Technically, it's over four units and above. but you getthe point. You know, there are a lot of landlords out there in our in our greatCommonwealth who understand the power, if you will have a cash flowing piece ofreal estate. So I personally was was always involved in that experience, I wasable to it's funny, I was looking through some emails, and a very dear friendof mine. Mr. Moynahan will just leave it at that I know that that the Moynahanfamily has, has aligned themselves with this this radio station. So I think Ican I can I can mention that name. But, you know, one of the minor hands wasvery instrumental in my early career. And we we purchased some some real estatetogether, you know, I property managed it in Linn back in the day. And thefinancing component came from came from one of the more enhance, and it openedmy eyes to a whole new world of wealth generation. Now, I think it'sinteresting to think about the scalability. And we'll talk a lot about thisover at time together. We can't cover it all in one hour, I promise you. Butthere are amazing, amazing strategies and processes in the commercial worldthat have been just just powerful. And I use that word purposefully, the powerof real estate, the ability to have commercial real estate, take care of myliabilities, the ability to have commercial real estate, take care of myfamily. And if I could do it on a small scale, and we could do it on a largescale. So that commercial real estate world has always been in my DNA, it'salready always been in my wheelhouse. And we'll discover some of that stufftogether. You know, there's a lot of thoughts, if you will, around real estate,in the sense of what is called a barrier to entry. And a lot of people thinkthat, you know, only large real estate deals are for the ultra wealthy, andit's been that way for generations, but times are changing, you know, barrierto entry, finding good deals, what does a good commercial, real estatetransaction look like? What does it feel like? You know, we all get up everyday, we want to live a decent existence, I think we have the the liberty forfreedom and happiness. And I guess that's what we're all striving for. And, youknow, how do you how do you explore? How do you journey into these these otherrealms of wealth creation through commercial real estate? You know, it's it'sinteresting to look at the various categories. You know, for me, the mostfamiliar and the most comfortable has always been commercial real estate, inthe sense of cash flowing assets. Today, we're involved heavily in largeapartment complexes, and we don't buy them in bulk them, because they don'tmake so much sense for us in Boston, and we'll talk about that later on. Butfreedom venture investments is the name of our investment company. They've beenestablished and the key players in our company have north of 30 plus years ofexperience in the real estate game, from mortgages to singles to commercial tonew construction, new construction complexes. So that's where we like to focusour time and attention now some investors out there say, Well, what aboutretail? And what about owning a strip mall? What about owning a piece of of theNorth Shore Mark, can I buy a piece of the North Shore mall Dave? I, youprobably could right now at a at a discounted rate. We'll talk about some ofthose things later on. But commercial real estate has come in many shapes andsizes. And I think what we'll discover together over at time together, youknow, and things will change as as economy changes as time changes. But, youknow, over our time together, we're gonna have an opportunity to really delveinto these different asset classes. And you as an investor, if you are aninvestor will have an opportunity to begin to see what it looks like to live inthe world of targeted double digit returns, following the rules and theregulations that are laid out by the government at the Securities and ExchangeCommission.

 

Intro Voice Over  11:27

RealEstate revealed We'll be right back. Steve vilasa.

 

11:33

SoSolaris realty has intimate knowledge of the North Shore market with over adecade of experience and 300 real estate transactions. When it's time to buy orsell property, give Steve a call directly at 617-763-1001. That's 617-763-1001Steve glasses of Solaris realty 617-763-1001.

 

Intro Voice Over  12:01

Thinkingof purchasing a new home, second home or investment property, or mayberefinancing to get a lower rate, consolidate debts, drop PMI, or need cash outto do home improvements. George cuartos mortgage Officer of cross country mortgagein Denver is just the loan officer you will need as Essex County's top loanofficer with more than 8000 past happy clients in over 30 years experience.George and his team will be happy to assist you with rates the lowest inhistory don't have that paid act now you may be able to save thousands ofdollars call George at 978-777-4663. You're listening to real estate revealedwith Dave Seymour from Amy's living Boston

 

Dave Seymour 12:41

securitiesexchange commission. You know, that's the that's the big world when when Imentioned the SEC, you know, a lot of people think about you know, thoseindividuals on Wall Street misbehaving themselves and we all know who they beenin our in our adult lives. But you know, that's in a different scale. There's macroand there's micro markets, you know, and the North Shore isn't of itself itsown micro market. And within every within every geographic area nationwide,there are there are players right there. There are executed in the world ofreal estate. I'm going to give a plug to a friend of mine, I think it's a greatopportunity to do this. I've been involved with this gentleman in my own careerfor many years now. You know, I told you I was in the single family business aswell as now large scale commercial. But in that single family world, I playedtwo roles or I wore two hats. I will the invest the hats on the buy side of atransaction property needed a lot of love. But then I also will the hat of aseller. And maybe you're a seller. Maybe you're a single family home owner atyour primary residence. You know that the market is in a crazy place right now.And it's a great opportunity to sell real estate. So who would you sell itwith? What expert would you bring in I want to put my friend I'm going tonominate a very dear friend of mine. His name is Steve palesa steeple SS hasworked with Solaris realty for many, many years. He's intimate knowledge of theNorth Shore market with over a decade of experience, like I said, and a recordof 300 real estate transactions. Think about that for a second 300 real estatetransactions. You know when it's time to buy or sell properties, you know,reach out to my friend Steve call him directly his phone number is617-763-1001. Again, state blesses. You know, I've learned in my career thatthere is no I in team. There is no such thing as a self made millionaire. Ifthey say that I think they're bending the truth a little bit to be able toexecute on any plan takes takes teamwork. So I think what we'll do is as youget an idea, you really do you get an idea of who I am, my flavor may be alittle bit different from what you've heard in the past. As I loosen up alittle bit, we'll have a few more gigs. goes along the way. But the big pictureidea is this is that we're going to look at real estate, for its financialpower, not just the fact that it's a home, we're gonna look at real estate forthe impact that can have not only on my life, but the generational wealth of mychildren and my grandchildren. Because when it's done, right, when real estateis used as a vehicle of wealth creation, it will genuinely impact generationsof the family. I always say in a in a joking matter, you know, if somebodyasked me, you know, what, what do you want to leave as a legacy, David, I wouldsay to them, I just want maybe my grandkids on my great grandkids, to log on togenealogy dot whatever it is, right? Like everybody's out there right nowtrying to find out what their family tree is all about. I just want them tolook up the family tree. And they they see me they see my face, and they say,that's the guy. That was the see more, that broke the the trading time formoney, mold, he learned the power of what if what if money could go to workinstead of dad. And, you know, we'll explore those things together goingforward. But let's let's dial it back in. We're in a, an unprecedented time inour lives right now. We have been affected obviously, by this horrific virusCOVID-19 where it came from how it got here, that's for somebody else todebate. That's not my wheelhouse. But what we have seen as a direct result ofthat is a an incredibly volatile marketplace, in the sense of socially andeconomically. It's created a lot of fear. in our, in our communities, it'screated a lot of fear in our leadership. And when fear is a is a dominatingemotion. Human beings tend to make decisions that look, they're not alwaysbased in fundamentals. And I think it's important in any financial perspective,I think it's important in any, you know, opportunity that is created to reallylook at the look at the landscape. How are we doing? You know, if you look upand down your street, you might say, you know what, you know, my neighborhoodin Danvers, overbury, St. John's prep looks pretty darn good. You might say, myneighborhood over in Wakefield, I'm okay, my neighborhood in Linfield, I'mlooking pretty good. But there might be other areas not only here on the NorthShore, but also nationwide where things are beginning to change. And thesethings, these factors are a current, if you will, that will absolutely create atorrent as as things begin to change around us. So what what are the things I'mtalking about, I'm talking about money and real estate in in conjunction witheach other. When we can remove when we can remove the morality around money,and we look at it purely as a as a as a tool to be used, we can start lookingat what what what's influencing the use of this tool is capital that we have inthe real estate world. And there's a few things that I have decided that I wantedto pull up. I think the President I personally believe that they're incrediblyimportant to the discussion that we're having. And we'll start first of allwith the interest rates. Now. When we look at interest rates, basically thereis a you know, a base number, the live bore that is created, and then thebanking institutions, what they do is, as we all know, is they they add alittle bit on top of what it is that it costs them to, to have access tocapital, and then they lend that money out and they they make money on themoney. I mean, that that's how it works. And if we begin to look at theinterest rates that we are, we are, you know, exposed to the or offered in oursociety today. I'm going to let you in our little secret. It's ridiculouslycheap. Now, it's a little crazy with some of the challenges that COVID hascreated that single family properties are moving at a high rate of speed and toan excessively high price. I'll say it again, they're moving at a high rate ofspeed and a high price that what is the economics behind that? What are thefundamentals behind it? Well, money is made and created when money moves. It'sthe velocity of capital. And the markets right now are keeping the interestrates incredibly low for an absolute reason, and that is there will be achallenge in the market. marketplace, I predict maybe to fall q1, there will bea challenge in the marketplace, where we begin to see a correction in singlefamilies. Look, guys, I don't know, I just explained to you, I was running intoburning buildings in the city of Lynn, about 20 to 23 years ago, 2223 yearslater, I'm pontificating on my, my breakdown of economics. But here's one thingI will promise you. I bring a blue collar attitude to a white collar world. AndI have to look at the fundamentals. So interest rates are incredibly low. Now,that's a good thing some people might say, and some people might say, it'smaybe not such a good thing. Again, it's macro micro markets, you know, in yourown marketplace, if you can afford more property, because of a lower interestrate might be a good thing for you. If you're looking to move capital at a highrate of speed, and you're looking for a higher rate of return, it could be goodfor you. So look, we have some challenges out there. And here's one that I'llexplain to you as well. I read an article recently, it came out by JP Morgan,and they stated clearly that there is approximately 31 trillion with a Ttrillion dollars worth of negative yield bonds in the bond market right now.Negative yield, what does that mean? It means that the interest that is paid onthese things is so low, because the Fed kept the rates so low, that the rate ofinflation is higher than the rate of return on capital. So investors are goinginto the bond market for security. And yet nobody's educating them along thelines of well, maybe that bond market is such a low rate of return, thatinflation is higher, you're killing money. So again, these are just datapoints. These are ideas, these are discussions. What is an alternativeinvestment? Because if I can't put it in the bond market, because I get anegative yield? Well, what is an alternative investment, and that's a whole newworld as well. There's a lot of people are very powerful in the in the, in theBitcoin world, and that and the currency world, and gold is up and gold isdown. And there's so much information out there. I've always been very fond,like I said, of the fundamentals of sticks and bricks, so I've got low interestrates, but because of COVID, I have high unemployment, I run employment wasaround 3.2, I believe, pre COVID. And we're still hovering around 7.9nationally, so we more than double their unemployment rate. So when people areon employed, kind of hanging in there for their own employment, and yet, youknow, the the stimulus packages are not coming as fast as we would like, or notlike, again, depending on your opinion. What does that mean? What is it? Howdoes that impact us? It means that GDP has been reduced dramatically, there isno, there is no transfer of goods and services. And if there are no transfer ofgoods and services, then how is it that money is being moved? Well, it's beingmoved at a rate, which is a constriction of where it was pre COVID. So we'renot moving as well as we thought we weren't. Now let's take this take this intoconsideration. I've got high unemployment. I've got a reduction or constrictionof GDP gross domestic product, the movement of goods and services is not whatit was. And now on top of that, that we came out, we said, Hey, you know whatwe're going to do, we're going to take care of each other said the government.And we're going to put together a stimulus packet. And we're going to put inthere a what's called a forbearance and we're going to allow individuals to nothave to pay their mortgages back to the banking industry. Now, I'm not sayingthis from a position of opinion, but I am bringing it up as a position ofconsequence. All right, it's not the morality, we already agreed to take themorality of money out of the equation, there's a consequence for every actionin life. We all know that. And the consequences were intended to be to helppeople to stay in their homes and it will for some, but there will be amajority or a percentage, if you will of people who may not benefit directlyfrom the forbearance because when it is lifted, and our own governor CharlieBaker has decided that an extension of the forbearance and also the evictionmoratorium. He considers that to not be the best financial move, if you will,for our state going forward. Baker said on Tuesday, extending the evictionmoratorium would deepen debt for tenants and landlords. And these remarks justcame a couple of days after a new strategy if you will, was put to to theCommonwealth 100 and 12 million in new funding and this funding plan wasdesigned to help with the eviction court processes to put new judges on there.There has been a proposal out there to bring almost sorry 170 1 million to beable to address the the eviction process that's going to take place. Now, I'mnot Chicken Little The sky's fallen, you know, I have my own beliefs now bringthem to this show. Like it or don't like it. I'm always gonna be opinionated, Iguess. But the idea behind not extending forbearances not extending evictionswas to say, Hey, you know what, we've got to get back to some semblance offinancial normalcy, rather than just keep on putting capital out there. Becausewhen when the government is consistently handing out capital without goods andservices, you know, it's creating a devaluation of money. I mean, that that'sthe truth as well, right? That the dollar is not worth what it used to be goingforward. And, you know, I don't want to scare anybody any more than I maybealready have is that there is there is a silver lining, but there's a websitethat I visit, just to keep me on point, it's called the US debt clock.org. Andif you go there at any one time, you can see exactly what the the the p&l,the profit and loss of the United States of America is. And this COVID is, ascreated just the an even more of a challenge on an extremely challenged system$27 trillion in national debt. You know, US tech tax reserve brings in justover 3 trillion and yet we spend 6.2 trillion, you know that if that was a business,any other business, it would be out of business. But you know, all of thesethings in combined force, along with with the COVID challenges, create a lot ofdistress, and I don't think we're going to be able to avoid it. Because whenthe forbearances are lifted, that homeowner is going to be looking at asituation where the bank will say, okay, you're six months behind, it's time tocatch up. And we know that a lot of Americans are living that paycheck topaycheck mentality. I was talking recently, I don't know if anybody resonateswith this, but sockin recently with a gentleman who kind of bit of a aneconomics guy, you know, an insightful individual. And he said to me, he said,there's a, what did he call it? He called it the sandwich generation. And Isaid, What on earth, you're talking about Baba sandwich generation, he said,Dave, that's the family in America right now, that takes care of their parentsand takes care of the children. So new generation where this inability to, youknow, the younger generation to flee the nasty and get out into the workforce,and then the older generation not being able to prepare for retirement, it'screating this, this this new bottleneck, so forbearances and evictions willhappen. They have to how it happens is interesting, because of the consequencesof all of those actions. So when I look at all of this landscape, you know, Iwas talking recently in a gentleman said to me, he said, You know, there's anopportunity, you know, what is the definition of luck in business? And he said,it's, it's when preparedness meets opportunity, is the definition of luck. Sojust just just Milan there for a second, when when opportunity meetspreparedness is the definition of luck. And I think that's a an old Easternproverb if that's the right term to use, but I always found that kind ofinteresting. Is there an opportunity in the middle of all of this, this ispotential pain that we're going to be facing? And if there is, and we can agreethat there is, well, what do we need to do to be prepared for it?

 

Intro Voice Over  29:24

RealEstate revealed We'll be right back. Steve vilasa.

 

29:31

SoSolaris realty has intimate knowledge of the North Shore market with over adecade of experience and 300 real estate transactions. When it's time to buy orsell property. Give Steve a call directly at 617-763-1001 that's 617-763-1001Steve blossoms of Solaris roofing 617-763-1001

 

Intro Voice Over  29:56

thinkingof purchasing a new home second home for investment For maybe refinancing toget a lower rate, consolidate debts drop PMI or need cash out to do HomeImprovements George kudos mortgage Officer of cross country mortgage in Danversis just the loan officer you will need as Essex County's top loan officer withmore than 8000 past happy clients in over 30 years experience George and histeam will be happy to assist you with rates the lowest in history Don'thesitate act now you may be able to save thousands of dollars call George at978-777-4663 you're listening to real estate revealed with Dave Seymour fromAmy's living Boston saw preparedness

 

Dave Seymour 30:38

meets anopportunity. You know, I I went through the the financial crisis Personally, Iwent through it in 2008. I had myself suffered from what I call financialilliteracy, and I'm speaking about myself. In 2000, and 456, I played the samegame that a lot of Americans played was, you know, my primary residence was wasalways going to be a bank. You know, you deserve the cars, boats and leathercoats, you got to keep up with the Joneses. You got to get two day delivery.No, I need one day delivery, I need this I need that I need I need I need Ineed and in essence, my needs what needs they will wants and yet I was it'sfunny. It's not funny. We hear a lot about herd immunity, right as a as a toolas a as a way to get out of COVID. And we know what that means big picture. ButI'm going to focus on that word hurt for a second because, you know, I followeda herd mentality in my finances. Personally back then, where, you know, it'sAmerica. I'm a naturalized citizen of this country. I came from London, whichis why the accents a little bizarre, but, you know, I came to this country, andI found out that you could actually spend more money than you aren't. I told mydad that back in England, and he asked me why I wasn't in jail. And I said, Idon't know, man, it's it's America that they do things differently out here.But I paid a price for that I wasn't prepared for any opportunities, because Iwas following a herd mentality of kind of like keeping up with the Joneses. Andyou know, the credit card roller, roller derby, if you will. And there's a lotof there's a lot of financial information out there. And, you know, I wastaught that debt was bad. You don't want to be in debt. It's bad. But I alsolearned in my own career, that there is good debt and bad debt. And if I canuse good debt to create some kind of income, then it's not like we said before,the cost of capital, it's the return on the capital going to work is what wasimportant to me. So, you know, opportunity and preparedness. Who are theplayers in this game? You know, we're, we're airing this first show in, we'rein still in October, October of 2020. And as you know, in a few weeks, youknow, so there's going to be a pretty pretty major decision in our country. AndI don't have an intent to make this any kind of a political show. It's it's notagain, my wheelhouse. But what is my wheelhouse is beginning to understand thatI need to be prepared for whatever opportunity is next. So we begin to look atthe red team and the blue team. And we'll leave it at that. I was going to say,you know, terrible Trump and sleepy Joe and but that would probably, you know,get some people unhappy. So I won't say that. But on a on a serious matter whatwhat Washington Does, does affect us. It affects us on Wall Street, it affectsus on Main Street, it affects our small businesses, it affects my my child'seducation right here in Dallas, it affects the way that I look at how mycapital works. And I take it from from from a position of purely resistance ofmovement of capital. Typically, and again, this is these are big picture ideas.These are not these are not finger pointers or anything of that nature. But youknow, the red team and the blue team has a track record of being biggergovernment and smaller government of regulation and deregulation. I'm just oneguy. My one vote is my one vote. And I cast my ballot with pride and doing myown duty diligence. But I also pay attention to what what's going on bigpicture. So when I, when I talk about big government, small governmentregulation and deregulation, you know, we can we can have a million discussionsthat spin off of that. But let's talk about our retirements. Let's talk aboutour cash flow. Let's talk about financial positions. You know, if my onlystrategy is to allow a 401k, for example, to be my retirement planning, maybe alittle bit of a government pension as well, how much control? Do I really haveover that? And what are the restrictions going on inside those kinds ofcontrols? And what is what is Washington want to do with it? I'm not going toanswer that question for anybody. I think it's important that we all we all doour own due diligence on it. So big government, smaller government regulation,deregulation. So let's go to the other side, on the other deregulated side ofthe equation, you know, let's say just for argument's sake, that because of thethe the background in business of the guy in the in the big house right now,that was a Friday and slip, not big house, I'm at White House, the chairman isin the white house right now. You know, with a business background, one couldargue that the deregulation that they have proposed and continue to propose, isdesigned to keep business moving forward at a higher rate of speed. So thequestion always is this again, if I can take morality out of money? And I canlook at what is the fastest way to grow capital to grow a retirement? What Whatif I could grow my retirement? By being in control of all of that capitalmyself? What if I could, what if I could benefit from the same ease of capitaldeployment that institutions have had the grace to use that whole Korea'sinstitutional capital moves at a pretty high rate of speed? when it sees anopportunity? It moves into it capitalizes on it moves out of it, money in moneyout money made? What if I could take my own earnings? My own savings, my ownequities, if you will? What if I could put those into vehicles that haveconsistently through investment? Look back 20 year look back 10 year, lookback? What if I could put that that capital into investments that haveconsistently outperformed all other investment strategies that we may befamiliar with? What side of the equation would we want to be on? Do we want tobe on the equation that makes it easier to make money and move money, althoughwe want to be on the side of the equation that maybe slows down the process,but also has these additional socially challenged components to them? I'mtrying to be incredibly diplomatic. But you understand what I'm saying. Ipersonally, in my business model, I like speed of execution, I like to seemoney move fast. Now I weigh up all of my choices when it comes to thepolitical landscape, personally, professionally, and then begin to make mydecisions from there. But the reason that I'm bringing that piece up is becausemiss some some infamous, interesting, interesting moves that are being maderight now. I recently was talking with our own sec Securities and Exchange Commissionattorneys that manage or have oversights, if you will on the creation of ourfund. As I said, at the beginning of the show, I am the CEO of freedom ventureinvestments. We are a private equity fund, we raise capital, we deploy thatcapital into large commercial real estate assets. We leverage that capital nomore than 65%. So our investors come in, they get the rewards, if you will, ofbeing commercial real estate owners and returns. But what was interesting wasis that when I was talking with our sec team, a very interesting little nuggetcame out of there. And this was a nugget around raising capital C My company iswhat's called a 506 c regulation D fund and you don't have to get too crazywith that. But basically what that means is, is that the SEC has to approve memy team methodology are offering and say, Yeah, that makes sense. Okay, you cango raise capital for for your projects. Now, what happened was this is thatthere are two kinds of types of investors that are out there. And I'm going tobe incredibly general. There are what we call retail investors. And then thereare what we call institutional investors. The typical retail investor is whatwe call an accredited investor. an accredited investor again, according to theSEC is an individual that earns $200,000 a year, and has an expectation pasttwo years and an expectation to earn the same amount of capital the next comingyear, or a family unit that earns 300,000. And or a an individual with amillion dollars in net worth, not including a primary residence. Now the SECcreates that avatar, if you will, a description of an accredited investor. Andthen what they say is this is because that individual is accredited, thatindividual can have access to these institutional type deals. These sweet dealsare as my Chief Investment Officer Walter Novick, he says, and I'll interviewhim on the show one day, you'll get an blast out of talking with Walter. But hesays these are the these are the Country Club deals, these are the ones thattake place on the 10th hole on the golf course. And it gives me a wry smile.But what the SEC says is this is that that that retail investor is maybe adoctor, a lawyer, the business owner, Attorney, an engineer, somebody just whois compensated well for their skill sets, but they still have to go out everyday and deploy that skill set in the marketplace. You know, our frontline firstresponders right now are working 24. Seven, to keep us all safe, they don'thave time to go find these kinds of assets, these kinds of investmentopportunities. But what is the other side of the equation, which is interestingis if a, an institutional type investor wants to come to work, they don't theydon't have to, they don't have to jump through so many hoops. Now to getinformation to a retail investor. As I'm sure you guys are familiar, there aremany, many folks out there that a licensed will say as money managers, theremay be what you might call your financial advisor, or a registered investmentadvisor. They work under a banner called FINRA, which is really just thegrouping of individuals who can, you know, raise capital because they've takenthe right tests, they've passed the right understanding of what's calledfiduciary responsibility. It's interesting again, 1617 years ago, you know, 20years ago, fighting fires, and 20 plus years later, I now have a fiduciaryresponsibility for 100 million 100 million dollar real estate fund. And itamazes me how that blue collar attitude but the retail investor has beenincredibly useful to me in managing that fund and being a fiduciary,responsible party, because every dollar I think about it as my own. Now, what'sinteresting is, is that these these these FINRA brokers, they can becompensated for bringing that relationship between a farm manager likeourselves and a retail investor. I'm sure some of you listening to this show,know full well, you know that those people exist, you may you may very wellhave your own advisor to help you with with your financial planning. Well,those advisors can can share these kinds of opportunities. But his his mypoint, and this is this is incredibly, incredibly important. The next stimulusplan, to the best of our knowledge, according to my legal team, the nextstimulus plan is actually going to have a component in it, where they willderegulate people who can raise capital for what we call alternativeinvestments. The investors who come into our fund are investing in alternativeinvestments because they're investing in commercial real estate assets within ourfund, which is not something which is a cookie cutter, and I say thatrespectfully to all money managers, but a cookie cutter approach for forgrowing, you know, retirements and capital. And what they've done is they'vesaid let's deregulate that, and now we can work with advisors, people who arefinders for want of a better term where they can work in a capacity to to makea connection between a retail investor and a fund like ours. Now, if you're inmy line of work, if you're in my line of avesta, you know, preservation ofprinciple and growth of capital, if you're in that world, then you know howpowerful a decision like that is. Because what that does is it opens up thefloodgates to allow capital to go to work at a high rate of return. It'simportant, ease of movement of money is incredibly, incredibly important now,because as we really pull off the band aid from COVID, and we begin to feel itsfull effects. He or she who can move money at a high rate of speed number one,and also at a high rate of velocity, or return better than the average returnsis what's always targeted, then that allows the economy to stay fluid. Andthese things are, you know, that part of my wheelhouse, if you will, prettymuch every day because it's it's it's what we focus on, we focus on, like Isaid, preservation of investor capital, and at the same time offeringaggressive rates of returns, because investors are owning a piece of a tangibleasset. So a stimulus package isn't just giving somebody $600 a week $400 aweek. A stimulus package isn't just a forbearance position on on mortgages. Astimulus package is not just evictions moratorium being being enforced, astimulus package, and its word alone stimulus to stimulate, to move to bringfluidity to the financial markets will be as important and as powerful as as,as any other part of the package going forward. So, you know, where where canyou get this capital to go to work? We're going to take a short break, butafter this break, it might be worth tuning in and listening hard because I'mgoing to share with you a few things that I've been amazed now to know thatpeople are not aware of the fact that there is a vehicle out there it'sactually called a self directed individual retirement account is a vehicle outthere right now, which is called a solo 401k. Not only offering immense taxbenefits combined with the tax benefits that are there for real estateinvesting in general, but the ability to to make some financial decisionsthemselves, and then watch the watch the fruits of those decisions. As they goto work, so self directed individual retirement accounts.

 

Intro Voice Over  48:18

RealEstate revealed We'll be right back. Steve valassis

 

48:25

ofSolaris realty has intimate knowledge of the North Shore market with over a decadeof experience and 300 real estate transactions. When it's time to buy or sellproperty. Give Steve call directly at 617-763-1001. That's 617-763-1001 Steveblossoms of Solaris realty 617-763-1001.

 

Intro Voice Over  48:51

Thinkingof purchasing a new home second home or investment property or mayberefinancing to get a lower rate, consolidate debts drop PMI or need cash out todo home improvements. George cuartos mortgage Officer of cross country mortgagein Denver is just the loan officer you will need as Essex County's top loanofficer with more than 8000 past happy clients in over 30 years experience.George and his team will be happy to assist you with rates the lowest inhistory don't have that paid act now you may be able to save thousands ofdollars. Call George at 978-777-4663. You're listening to real estate revealedwith Dave Seymour from Amy's living Boston.

 

Dave Seymour 49:31

I gaveyou a little what we call a teaser in this world. Right? It's a tease they doit. I was on the Today show a couple of times. And we used to go on there anddo the HGTV fluff and buff stuff. But they that was the first time I everlearned it. It's a teaser. When we get back from the break we're going to showyou oh and you knew it had to be something exciting. So I kind of teased alittle bit before we went into that break. But now Now I'm going to bring itinto some reality. The first time I heard what I'm going to share with you now,I was I was a little upset because I kind of I kind of, I wanted to know why Ididn't know what I was learning at that moment in time. And maybe you'llresonate with that when I share this with you. We're very familiar with withcompany plans, right? 401 K's company pension plans. You know, as a cityworker, I was very familiar with the city pension plan. All very, very, youknow, cut and paste. How old do you go into this plan? low risk? How old? Doyou go into this plan? medium risk? How old do you go into this plan high risk.And that was pretty much as much as I learned about finances back then. Butthen then I became an investor, then I became educated and I became inspired,then I became motivated. And I learned from a gentleman that there is a vehicleIt's called a self directed individual retirement account. And a self directedindividual retirement account gives you the investor the power to drive theinvestments inside that account. Now, let's say an individual will use reality.Let's say somebody has lost a job because of COVID. And they have a retirementplan a 401k, or something of that nature. Well, at the time that employment isis ended, that that retirement account can now rollover. Now most people justhave it sit there for a little while, which is what the plan administratorsprefer. And then they roll it over into the into the new employee employeeprogram, when they get rehired. But that is a window of opportunity wheresomebody can look at that and say, you know what I would like to give thatretirement capital over to a custodian company I use is called horizon trust.The CEO and founder of that company is a very dear friend of mine, I think whatwe'll do is we'll actually bring him on and interview him on one of theseepisodes. And he'll share with you exactly the power of investing with selfdirected accounts. But what that does is, is because it was a tax deferred ortax free contribution, it stays that way, when it rolls over into a selfdirected account, but now the alternative investments are available to theinvestor. Now the investor can look at a single real estate transaction canlook at a private equity fund as we as we run, they can look at being a capitallender in the real estate marketplace. However, the individual obviously has tohave the skill set to know what a good deal looks like. Or they rely onsomebody else's expertise. And then they're able to move their capital, as wetalked about before, with some velocity, and self directed retirement accountswas was an absolute game changer. For me personally, it gave me access tocapital that I didn't realize I had, I was always under the assumption that tomake money, you need money. Yeah, but you know what, you can also make money ifyou can identify what you have for lazy money, kick it in the rear end, get itoff the couch, and get it out to work at a higher higher rate of return. So theaccess to capital is, is is a it's a it's a mental barriers, sometimes Ibelieve more than a physical barrier. So the self directed individualretirement account is a strategy that's, that's used by by a lot of investorsat very high levels. And what it does is it creates the the generational wealthpiece, and we could talk about that I think we'll definitely dedicate one ofour shows to that how you can disseminate inside of that retirement account,maybe a Roth portion, as compared to a traditional portion. You know, one hastax free distributions at time of retirement. One has tax free contributions.So it all depends on on what the investors specific strategy is. And we have ateam that can can absolutely help with information on those kinds ofstrategies. Now, the other one is really, really exciting. And this issomething that, that, that, again, it's a little known secret. It's it's beenkind of like part of the elite plan, if you will, and that's what's called asolo 401k. Now a solo 401k. According to the to the, to the code, if you will,all the rules and regulations of creating one of these things is as anindividual 401k plan, but it's solo 401k meaning one person, one business oneemployee. If you are a consultant of some kind, you can open up a business andget yourself a solo 401k plan. What that allows is in my age group, I know it'shard to believe if you look at the picture of me on the back end of the 104point nine website but I am over 50 years old I know that's hard to believe Iget it. You know God was Good to get to me gave me good genes but but see Imake a joke about myself in Africa what I was talking about oh solo 401k I canmake up to I believe it is $62,000 in tax free contributions into thatretirement vehicle. Think about that compare that to you know, anyone IRAindividual retirement account, I think those max out 5500 in contributions, soit's almost 10 times plus the amount of capital that I can contribute. Well,what's the advantage of that? Well, now I've got capital I can put to worknumber one, but number two, that's capital, which is not exposed to the tax manright now. And I'm not going to do the, you know, the morality and taxesdiscussion today. But if there is a rulebook, and I learned the rules of thegame, and I stick by the rules of the game, I personally feel learn the rulesof the game and then make decisions from there going forward. I didn't make therules of these games. I don't sit in Washington. I'm not a member of Congress,determining the tax laws that we live by in our country. But I do have aresponsibility as an intelligent human being to learn the game, and then makemy decisions around whether I want to participate. I know I've talked a lottoday next week. And next show is a special show right out of the gate. Wecouldn't coordinate for the first show. But when I put a private equity fundtogether, there is no I in team. The team members are what make us critical.And I'm very proud to say and excited to welcome as our chief advisory boardmember, a gentleman by the name of Kevin Harrington, and Kevin is going to joinus next week on the show. Kevin was one of the original sharks on Shark Tank.Kevin was your original Ginsu knife guy, he was your original infomercial. Andas seen on TV, a business acumen that is pretty much unmatched, over $500billion worth of sales in his career, internationally. And I'm very excited tohave Kevin be a part of our project at freedom venture investments, so pleasemake sure you want to tune in for that one. He's got insight, he could talknearly as much as I can. So there's not a lot of oxygen in the room when we'reboth when we're both together. But having will be joining us next week. Solook, if I've, if I've enticed you in any way if I've, if I've began to open upsome channels in your in your brain, where you want more information, where youbelieve that you know what you're doing right now may not be to the very best,financially investment wise for you, then we have an opportunity for you tospend some time with us. I'm very excited about some smaller events that we'rerunning. And again, it's COVID compliant. I've known the owners, Danny andDaniella Mola, the owners of polana, steakhouse, MP buddy, if you've ever eatena pylon, as you know, you know, it's tough draw top shelf, as we used to sayback in England. And on November the seventh, we will be running an investorluncheon, where we will delve in, in depth into exactly what it is that we doat freedom venture investments, we'll show you how we help investors getvelocity of capital, you get to be a part of this team to invest alongside usand with us. In our fund. To get into the event, you will need to put a littlebit of work in First, you will need to go to info at freedom venture.com slashpolana p e Ll a na info at freedom venture, slash polona freedom mentor.comslash puzzolana. There you'll be asked two or three questions. Those questionsare all confidential. And they'd be able to grab one of the seats at the at theinvestor luncheon. I'm buying steaks, I'm buying fish, I'll even buy your firstround of drinks. They're all on me. But it's a great opportunity to meet usface to face, to rub elbows a little bit learn about what it is that we do, andwhy we believe and I say this with all sincerity, that the pain of COVID iscommon. And yet we can be of service in our communities and, and nationally tobe able to offer a decent clean affordable housing to the people that will needit. And then we on the other side of the equation as investors are able to getreturns that the most other vehicles aren't given out there right now. So Iappreciate you tuning in with us. This is your host, Dave seamark real estateinvesting revealed and I look forward to to be with you this time next week.Don't forget Kevin Harrington and hopefully I'll see you at polana Steakhouseon November the seventh

 

1:00:15

12 tothree

 

Intro Voice Over  1:00:16

take anysecurities being offered are under an exemption provided by sec regulation Drule 506 c only accredited investors who meet the SEC regulation d 501.accredited investor accreditation standards often provide suitable verificationof accredited status may invest into these offerings. Any historicalperformance data represents path forward, past performance does not guaranteefuture results. Tune in again next Saturday at noon for real estate revealedhosted by Dave Seymour, the star of age living Boston and CEO of freedomventure investments in Denver.

 

1:00:54

Theprior show was a paid program that does not express the views, opinions orbeliefs of North Shore 1049. The station management its employees or staff