Mauricio Rauld: Exposing the Laws the Govern Syndications and Real Estate Funds

In this episode of "The Gould Mine," join us as we explore the critical aspects of investment success with expert Mauricio Rauld. We delve into why thorough research and questioning are essential for successful investments, focusing on the importance of understanding operations and the localized nature of real estate markets. Mauricio highlights the significance of vetting the investment team, and cautions about the risks of Ponzi schemes in the investment sector. Discover how leveraging social media can broaden your investor base. Additionally, Mauricio, a renowned Securities Law expert, offers insights into the complexities of asset protection and navigating securities laws for passive investors. This episode is a must-listen for anyone interested in deepening their understanding of real estate investing and legal intricacies.

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Transcript

•  What's up gold binders. In today's episode. We welcome securi attorney Mauricio rul Mauricio has positioned himself as one of the four most experts online in Securities Law. Now you might be asking yourself why on Earth do we have a Securities attorney on a real estate investing podcast well. In today's episode Mauricio breaks down his role both in real estate syndications and real estate funds. Lots of cool decks for both. General partners and limited partners who are either invested in deals currently or who will be investing in deals in the future so without further Ado everyone welcome to the show Mauricio R Mauricio welcome to the gold mine hey thanks for having me I'm really really excited about the show today well so am I and you know for someone who's tuning in right now and they're like why like what do a what does an attorney have to do with real estate. Investing. It seems very like you know at a left field. So so why should people pay P attention to this episode yeah. That's a great question know you know I help I help Real Estate Investors you know who are raising capital. I help them stay out of jail basically because all these guys are selling securities and that's a question. I get all the time like wait a minute. Mara why why are these people why is Securities an Exchange Commission in my business. I'm just buying a piece of property. A piece of real estate. Why do I need to talk to somebody like Mauricio and the answer to that question is because the SEC or the Securities and Exchange Commission. They Define a security super broadly so it doesn't really matter if you're investing really estate if you're investing in crypto if you're investing in businesses if you're investing whatever anytime you take money from passive investors where the returns are generated by your efforts meaning you're doing all the work and you're basically just taking money from past investors that is going to be a security which means you fall into the landmines or the the nightmare of Securities laws which is why you need somebody like me to make sure that you're raising capital in full compliance with not only Federal Securities laws but also your States you got to think about too so for the most part you deal with the sponsors or the general partners of the syndication not necessarily too much with the limited partners cor 100% yeah. So my clients are all out there raising Capital. They're all raising capital for real estate deals and uh the only time I really interact with sort of The Limited partner side is either they've got a question about the docs right and so the sponsor asked me to come online and and help them ask. You know answer some of the legal questions. They may have about the the disclosure documents or I sometimes I'm a former asset protection attorney. So with on my when I put my asset protection hat on. I have a lot of limited partners who are obviously you also investing in real estate directly and so they've got all kinds of questions about entity formations and just how to how to structure their entities to maximize their protection. Because they spent all this time and energy accumulating real estate. They want to make sure they don't lose it if they get into some car accident or they get some frivolous lawsuit against them so that's actually a really great segue because I do want to spend a little bit of time here cuz. There's a wide variety of of people who listen to this show. You know people who are passive investors people that are syndicators. So for when it comes to asset protection I actually watched a video of yours. It was uh the six layers I believe right of of asset protection and so thank you yeah can you um and it was a really awesome. Video can you break down. Maybe give a spark notes version of what that is and maybe we could link that video uh down below because it's a good one. No that's a great question because you know one of my pet peeves is especially in the real estate world. Right people are like oh. I don't need to set up an LL I've got insurance right or oh. I don't need insurance because I've got an LLC or I've got you know I've got privacy or. I got you and they come up with all these things and what I think people need to understand is that first of all there's no strategy that is foolproof right no matter what you can give me any strategy from an asset protection standpoint. You want. I will poke a hole in it like there's always an issue and so I think of asset protection.
•  I think the video was doing the analogy of like layers of clothing like you say well. Do. I need a coat or do. I need a sweater or it's like well depends on how the day is right. If you're you know if it's. It's a beautiful day. Today is a beautiful day in Southern California. You know I might be able to get away with wearing a t-shirt right but later on tonight. I may that might I might get too cold. So I may have to put some kind of a sweater on and then as it gets colder and colder. If I live in you know Minnesota or something I might have to put a jacket on right and if it's like where my wife lives in Chicago in middle of in the blizzard of winter. Then I'm putting on a winter coat right and so each layer gives you additional protection especially when some other layer doesn't and so I did this video where I talked about the six layers and again it wasn't meant for this layer is better than other. It was mostly so to say hey here are the benefits of each layers but here are the holes in them which is why a lot of these strategies that asset protection attorneys put together is really a combination of these layers right so real quick. First. Layer I talked about was just kind of the free layer. There's there's a bunch of stuff that happens automatically or I shouldn't say automatically that is free. So. For example you know your your home equity. There's something called the hom set exemption so Most states will protect some level of the equity in your home. It's not a lot like sometimes it's five Grand or 10 grand or 20 grand which is better than nothing but you know with real estate prices. These days that's not a lot um you know some of them like Florida is unlimited. So this is why if you uh you know if you know anything about OJ Simpson or those guys like they they may owe owe hundreds of millions of dollars but they have a house in Florida that's completely protected. Uh 401K plans are generally protected. Some portion of your wages are protected but you sometimes have to make some affirmative steps. You might have to file something to get the protection so I wanted to outline that first that's kind of your free layer. Then the next layer is insurance. Right I always say that insurance is always your first layer defense. Everybody should have insurance but I think a lot of people misplace their trust. On insurance. They think oh I got an insurance policy. I'm covered well not so fast because number one a lot of people are woefully underinsured right. So they've got a million-- dollar policy and they think covered and then suddenly you know. They they own an apartment building and the you know the balcony collapses. Six people die you know that million dollars is going to be worth nothing right or maybe you a car accident. It's like a lot of so so that's one thing under insurance and then of course. The big one for me on on insurance is just all the exclusion that's probably my number. One pet peev with insurance is that everybody's making their payments right your premium payments every single month and you think you're covered for something and then when that something happens you realize oh crap. My insurance policy has a bunch of exclusions. Things that you're not covered for that people have no clue about and that's usually one of the reasons. Why the first thing an insurance company typically will do is send you a denial letter because they're like oh it's covered by exclusion and I've had so many experiences where I've had to had had to actually go hire an insurance attorney to enforce my insurance policy because the insurance compan is trying to rely on one of these exclusions to kind of get out of it. So that's that's really my big pick beef. So insurance is great it. Everybody should have insurance but don't think it's the ANL be all that because I've got insurance I'm covered. I don't need to worry about it. So that's your first line of defense when that doesn't work because you're underinsured or there's an exclusion or it wasn't covered or they went bankrupt or whatever the issue is you want to have a back stop which is kind of layer number three. I think which was uh entity formation. So llc's limited Partnerships. Those are great structure especially for Real Estate Investors. Uh most of the time we're putting our real estate and limited liability companies right llc's. They provide pretty good protection especially if you're covered with a with an insurance policy right. So you got insurance first if that they get past that now you've got an entity formation which is great but that isn't perfect either right. There's you know there are you know some especially here in California. There's a lot of Judges that start are piercing the corporate veil so even though you technically don't own the house and so somebody slips and falls in the house. Really the owner should be respons responsible which is the LLC but somehow they the judges are allowing them to sort of penetrate that and get to the owner the ultimate owner which is not great and then on the flip side. There's something called the charging order protection which is the Cornerstone of of llc's but some states recognize them. Some states don't again California is notorious for not applying you know the state where the formation happened and so they may apply California law and they California has terrible hasset protection laws. So again it just isn't isn't super clean. Uh privacy is another layer that I like Now privacy in of itself. Isn't like the really doesn't do anything other than makes it really difficult for plaintive lawyers to come after you because they don't know a if you have anything uh number and B they may even not know who you are so like somebody. May slip and fall in your apartment building or your home. They look at the the corporate record the public record is they don't even they see an entity that owns it. They don't know who the owner of that is so. Privacy is a great layer that everybody again privacy in conjunction with insurance in conjunction with llc's would be a great little combination then as you get more and more um you know you're doing better and better for yourself.
•  The size of your estate grows then you start looking at things like asset protection trusts. That's a like kind of Next Level stuff and to be honest with you. If everybody could get an asset protection trust. They should the problem is they're expensive and they're expensive to maintain and they usually don't make sense unless you have some level of wealth right if you. If you've got a portfolio and your whole thatb worth is half a million or a million bucks you know spending $30,000 on a on an asset protection trust and $5,000 a year and maintenance. You know probably doesn't make any sense right but certainly if you're now you know doing really well or a high high earning individual or a doctor or somebody's really high risk. Asset protection trust uh started Mi up which by the way it's different from a living trust. This is a big misconception. A living trust has no asset protection value whatsoever that is merely a tool to to avoid probate which is a whole different discussion. But an asset protection trust is an irrevocable trust that gives you that asset protection uh component and then the ultimate one I think that really are more advanced clients will do is some kind of what we call an equity stripping strategy which which allows you to basically put leans on your. Properties or or maybe uh uh you know rent out properties and and so we're able to strip away the equity from the home we can put a line of credit on it almost like a bank. You know. The bank gives you a loan and puts a second lead on your property and that basically removes that Equity from the property you could do that with your own lending company. So the bottom line is though is just I just I it really drives me crazy especially on social media. There's so much misinformation but when somebody says oh I don't need insurance because I've got an LLC. No. Hey I don't need an LLC because I have insurance no. It's like oh I've got privacy. I'm covered like all these things and and like I mentioned every single. One of them has a hole that I can poke through and so the idea is you either layer them uh or the other analogy. People use is sort of that layers of onion. Like the more layers you can you know you can put around your property or your assets or yourself. The better you are because I've got to peel it out and it's just harder and harder to get to you so that that's why the sort of it's really a strategy more than anything. It's not necessarily just uh. Hey let me just go get an LLC. You know where do you set up the LLC who should own it who should manage. It should you act as your own register. Like all these questions come up when when setting up these strategies sorry. I know that was a lot and but I wanted to get it all in there because it's uh. It was a good video if you guys want to link it yeah 100%. And we will link that uh Down Below in the description and you know there. There's I mean we could spend hours on just that. But I think for the purposes of this you know just wrapping. You know bring bring that to a wrap and and and you know one of one of the things that stood out to me. There with the with asset. Protection is you know when you think about when you think about like from a from a a real estate investing standpoint. I think you know a lot of Real Estate Investors. They go on YouTube and they like find the whatever. Guru's like advice on on how to uh conduct their investing business but um or their investing strategy. But you know from from your perspective Mauricio because you've been involved in a lot of I mean you've you've seen. It all now at this point right from from the investing standpoint. What are the what are the strategies that you've seen from an invest from a real estate investing standpoint. What are the strategies that you've seen work the best from a for Passive investors people that don't want to be like actively involved in their uh investing like what what are some of the the the best kept secrets if you will or the best strategies that you see in general or specific to asset protection. Uh no in general in general. I'm talking like I'm talking investing strategies not asset protection yeah. Look I mean if you're a passive investor which by the way I am as well. I mean this is just a great vehicle to to to put your money to work. I mean the that's like kind of the ultimate leverage right that I'm able to give somebody that I trust a sponsor I can give them portion of my my my net worth and they're going to grow it and I don't have to do anything. I literally I do work up front but then I basically it's just mailbox money. I think it's one of the Great things but um I think the the the ones that I know that are most successful and I like to think that I'm one of them. Uh they they put in the work obviously on the front end right so on the front end of an investment. That's really where you put all your work and and and the thing you want to do is ask the right questions to sponsors right. You want to be asking the right questions prior to selecting a sponsor selecting an investment all that stuff and hands down. The most important thing you need to do as a limited partner is is find out and do your due diligence on a particular sponsor. Everybody tends to focus on the property first oh look at the property it looks great. The numbers are great the Market's great whatever but at the end of the day you've got to go back and say hey what is the experience level of this person or this team of people that are going to put this together because remember you're going to give them your money and they're going to take that money go buy something add value to that and then bring you rents and increase the value and sell it and profits and all that stuff. They've got to be able to pull that off right and so one of the things you spent as a past investor. I spent all my time on the front is vetting all the different sponsor. So I get comfortable do. They have the proper experience. Uh have they done this before. What's their experience in this particular Marketplace. What's their particular experience in this particular asset class because sometimes people are like hey. I'm the apartment King i' I've got a lot of Apartments but this particular deal happens to be a mobile home park great. What's your level of experience. There or at least is there somebody on your team that does mobile home parks or self storage or what have you so. I spend 90% of my time focusing on those types of questions so that I get comfortable with a particular sponsor and the nice thing is you do it once right because once you feel comfortable you know you do your due diligence you go down you visit with them you look at their team.
•  You you you figure you know what are their operations like and once you've done that then and you do your first investment well the second time you don't have to do that again right you've already put in the work to to do that but that to me is by far the most important thing. Then you want to start moving into and this is one of the things you're looking into. That is you know what's their investment. Philosophy does it match with yours. Is there alignment. There. You know if you're a cash flow investor. You probably don't want to associate with a somebody who's more of a developer nothing wrong with Developers. They just they're not going to give you cash flow for a little. While then it might be more of a capital gains play and vice versa. If I'm just looking you know for big capital gains. I don't care about cash flows so just making sure the alignment is. There you know. I might be a a c you know the sponsor might love cclass or d-class or zclass properties and you're like that makes you a little nervous and I like to like to play in like the a class or B Class so just make sure there's an alignment with that um and then you want to look at the actual Market that they're invested in right because again you know to me. Real estate is is there's really no such thing as a real estate Market. It's all localized right each state each each County each City and sometimes even which side of the street so just getting crystal clear on you know once you figured out what the right sponsor is and figure out. Then you know what's what markets do you like and are they aligned with the same markets um and then you know what what's their team look like that's. That's kind of the next step for me is like you know is it just them is it a one man or one woman show or do. They have a a team of people what are their level of experience who's actually going to be managing the day-to-day. All those kind of questions that I like to ask and then the last thing I look at which is important to look at but that's the first thing I do I'm not saying it's not important. But the last thing I look is out of the property. Now once I've vetted the sponsor. Once I they're in the market that I like obviously an asset class presum that you like I mean there's no point in being in Self Storage. If you don't like that asset class but assuming you've got the asset class you got the sponsor you got the market. Now you can look at the property and you can obviously ask the questions about you know what does that look like and the performa but again the performers and the business plans. They're just a lot of times just pretty pitch teexs. Right anybody can put together pretty presentations. The question is. Can this team of sponsors pull that off so I think again a lot of great the great LPS that I that I know of do all that work ahead of time because as you guys know or as you know once you write that check as a past investors. You're that's it you don't have any say in the thing. It's that's the whole point like you're actually you're you're giving them your money. Then you're trusting the team to go deliver on whatever promises and and projections and business plan that they put together on yeah so that's that reminds me of the saying you know uh trust the jockey not the or yes trust. The jockey not the horse yeah bet on BET on the jockey you're betting on the or you're betting on the jocking at the horse or yeah. One of those I use as I was butcher yeah yeah yeah yeah yeah. That's that's that comes into play a lot more by the way you know when people invest in funds right the the when you're investing in a fund which has become super popular over the last five years um. You know you don't have a a pro you know you're not looking at a property specifically. So I I don't look at I I don't know what Market it's I mean you kind of. I don't know exactly where it's located. I don't know what it looks like I don't know how big. It is how small it is what the game plan is what the purchase price is. It's literally I'm going to go buy hotels or I'm going to go buy multif family or I'm going to go buy this and so now it's even be even becomes more important to get your due diligence on the sponsor because you literally are now betting on the you know on the jockey or the horse right. Uh because you have you there's nothing for you to look at other than the criteria and really at that point. You're just trusting the sponsor uh because at least with the Project Specific I can at least look at the asset right I can look at the property and say hey I can challenge your assumptions. You can be assuming that your rents are going to go up 2% every year or you're going to be able to get this type of rents and I can be like. I don't think so I think rents you'll be lucky if they stabilize and are zero for the next five years and I can kind of mess around with your assumptions and then I can say I still like the deal like even if even if I'm a little bit more conservative. It's I still like the deal when it's a fund. I'm completely relying on the sponsor because I have I have an idea what they're going to go buy. But I don't actually get to see it before they buy it.
•  I'm sure being in your position. You've seen a lot of crazy stuff in your time. What is like one of the most interesting stories that say LPS and GPS could collectively learn from. Wow about a crazy story um man. You're you're making me dig deep into the to the stuff. I mean I I've seen a few you know and and these are are not far and few between. But I've seen a few Ponzi schemes out there right. So that's something that you've got to be aware of a lot of times when something doesn't seem quite right or it seems too good to be true. Uh you know it might be right and so that's probably the one of the I've got one in specific that I that I can't really get into too much detail. But but there's definitely Ponzi schams out there right and so you just got to be super again. This goes back to the due diligence and the on the sponsor and the team and everything making sure that you know you you get some some background on them. But uh there's been a few pwn pwn that I've seen and also other people that there there seems to be more and more Ponzi sches happening out there. So that's just something you want to be careful of not only as an LP but also as a sponsor because maybe that's another crazy thing that's going on. But you know now that sponsors are are are partnering with so many other sponsors right which I think is actually crazy. But that's another reason to be careful because now you you partner with. Someone you got to make sure that that person is who they say they are you want to be doing the due diligence on your co-sponsors as well because if you don't you might get stuck uh and and in a GP scen you know you've got unlimited exposure amongst everyone so if you have you know if you're if you're getting together with six people and you don't know very well and one of them turns out to be a bad apple. That's going to get imputed to you yeah. That's a really good point and actually something that you know I think probably I mean just seeing how I mean like you said. This has really been like a like over the last five years thing because like man back in 2017 like no one was like it was not as as popular or as common. Why why do you think that is do you think it's. It's. It's the social media effect like there's some popular people on social media that are doing it and now they've they've made it like the the cool thing to do is it like. Rising prices now. It's harder for an individual to buy you know a building let's say and so it's it's really more of a collective effort. Now like what where do you think that the core kind of um reasoning behind the the popularization of funds and syndications well. I think it all started actually a while ago. But it's what is it now. It's it's a decade just over a decade. So in 2013 they actually changed the laws right. So in the old days 10 years ago. You weren't able to advertise your deals right. You had to like limit limit yours to your your friends and family and people. You you knew really well and then what happened in 2013 with the jobs. Act is they introduced this this idea which when you think about it makes no sense. But it's there which that you know even though it was still considered a private offer. You were now allowed to go advertise right. You can go on podcast. You go put ads certainly you know back then social media just started taking off uh but now you can start posting things on social media. Going on pod. I mean podcast is a relatively new thing as well uh and so that all started to be legal back in September of 2013 and I think as social media has gotten bigger and bigger and bigger than the popularity and it just it becomes easier to go find people that you don't know because in the old days you had to go get on a plane or go to a Meetup or go to a seminar and today you can get really good at becoming an influencer meaning getting eyeballs on your content that then allows you to to to reach more people easier for you to put together a webinar easier for you to attract people. So I think that's part of it. Now that's got it. I think it's getting to the point where it's getting a little ugly in the sense. That and this is something I've been thinking about quite a bit and I haven't really talked about it too much on podcast. So. This might be a sort of a a primer on this but you know the whole idea behind raising.
•  Capital has always been you're really good at something right you're you're good at multif family or hotels or you know self storage and you start doing this on your own. Then you're so good that you'd like to go bigger. But you just don't have the capital. You're constrained with the capital or maybe. You don't want to tie up your Capital so you bring in other investors to help fund what you are really good at and expand and and there therefore you can instead of doing 50 units or 60 units. You can do a thousand units 10,000 units because you're just that good right. But what's starting to happen now is people are just starting to raise money for the sake of raising money like they have no. They have no necessarily no Talent or no you know nothing other than the ability because they're either an influence or because um. They're just good at teaching people how to raise money but then which is bringing in all these people into the syndication world that don't really know anything about they wouldn't be able to go buy a piece of property on their own. Like if they're going to go invest in multif family. They wouldn't know the first thing about going to buy a multi family building on their own and if you just handed them a check and said hey here's a check go do it. So uh there was a stat I saw it actually a year ago so it may have changed a little bit. But a year ago there was a stat that said that 70% of syndicators meaning people are out there. Raising money 7 % of syndicators had three years of experience or less and I think that's just part of that phenomenal postco or maybe during Co people got excited and started learning about it and now you know there's a lot of programs that are coming out a lot of people teaching this and so you just you're just getting a lot of people who really just want to go raise money and again. My my thought was always that the main thing is the main thing which is you know acquiring an asset whether it's real estate or a business or whatever and you just needed. You know needed the help of other investors to help you go do that now people are just raising money to go raise money to give it to other people. They're they're basically a lot of times acting like Brokers. It's like you should just go get your broker's license because you're you might be really good at raising money. But you're not really doing anything other than raising money right right and that's one of the things that I've seen a lot lately and I think that's going to end up in in some bad news sooner rather than later. You know that's uh that's a really good point and something that I actually noticed just over like the last five years and and actually perfect not the pick on him right. But Cardone is great marketer yeah and that's actually how I found out about realistic. I didn't even know I I'd been in real estate for many years. But I did not know about real estate syndications until I researched him and what he was doing and all that good stuff and then I really started to understand and go down that rabbit hole. But I had a real estate background and I still didn't even know that this sort of investing vehicle existed and I and and that's actually still the case. A lot of my realtor friends. I would say the majority of my realtor friends still don't know like they're like how what are you doing like what what is this indication. What is this fun thing like I don't understand it so and think did not you know I know a lot of people. Don't like Grant I don't know Grant. But I I you know I like Grant enough. I mean I think he started. I mean he was well known for his his sales coaching or whatever. But he also was doing real estate and he was doing really well actually and then once this happened. In 2013 he started raising capital from really high net worth individuals. I remember the minimums were two 250 or 500 Grand I mean. This is really high net worth individuals under the under 506c and then obviously as he's gotten bigger and bigger and bigger and bigger. He's able to now tap into the the smaller and sort of the the really. The people just fans of Grant. He's he's he's been able to tap into some some new. Uh rules that allow him to go you know take $5,000 $3,000 from those little guys. But he did start to Grant's credit. He did start I know exactly how much he amassed but he' be a good example somebody who had amassed a certain level of success in real estate but using his own money so he was constrained. Now. He's been able to raise money from more people. He's able to obviously acquire a lot more properties than he would have done if he was doing it on his own and so I think that's a good example of using social media. You could argue with. It's the right way the wrong way but he had a skill and now he's got more Capital so he can go do. Bigger deals. There's just so many people out there that don't know the first thing about multif family or self storage or hotels or mobile home parks and they're just raising money for them because they're partnering with somebody else or just giving them the money and it just becomes this industry of raising Capital not necessarily doing the thing yeah. That's and that's a really good point and I think that there definitely are some dangers because for for every instance like we just talked about with with card Dons like yeah. There's like 10 copycats out there that are you know great marketers yeah and don't actually know the thing and so it actually places an emphasis on who's got the best Instagram and not who's the best operator you know like. For example you know you know I know you do you do a lot of hotels like I don't know I don't know anything about hotels right. But I would like to think I'm not going to do it because I don't I don't like competing with my clients. But I'd like to think that I have the ability to go raise a million. I could probably go raise a million dollars and then give it to you say. Hey you know Daddy's knows how to do this thing. Let me go raise a million dollars from my people that that that know like and trust me and I'm you know I know you. I trust you so let me give the money to you. But I don't know anything about hotel. So. I'm literally being a capital raiser in that sense right and there's ways that you can structure it where you can kind of get away with that. Uh a little bit more than I think uh The Regulators would like to like to see but um but that's that that would be an example of how you know. I I have the ability to go raise money and then I can give it to somebody else who can then go do. The thing or I can partner with somebody who go do the thing yeah absolutely and you know even in my instance. Too. I have I've not been shy about saying like you know I'm not new I am newer to hotels. I'm not new to real estate but like I also understand the importance of of partnering with people that have way more experience than I do like the people that are in my in my group. Like my partners have like double digit hotels each right so like and and that's and that's honestly like that's part of that's part of the journey. Right like you're going to learn. I've learned the hard way before you you if you try and do it all yourself all on your own. You're going to fail miserably and you're gonna all this.
•  I'd rather take Les pie and and learn and learn from from the experts you know y um so so yeah well. You know we're coming up close on time here. Marce I want to be respectful of the time uh two last things for you here first one you know you you touched on the accreditation standards and and you know 506c 506b and and if you don't know what that is unfortunately we're not going to cover that on this episode but the accreditation standards are changing how do you see that impacting the future of syndication and funds uh or I don't know are they changing are they not changing uh. Is it just they're definitely going to change. We don't know what the exact changes will be. They. They it sounds like they're going to kick it down. The can again till till early next year but the SEC is is. It's on their agenda to revisit the definition of a credit investor. Uh I think they're going to jack it up significantly probably to about a right. Now. It's a million dollars basically on net worth excluding your primary residents. I think that number is going to go up maybe two or three million um. If you adjust you know. This came out in 1982 so a million dollars in 1982. If you adjust for inflation today is about two .8 million so to Me 3 million makes a lot of sense but but concurrently with that so there's going to be a lot of people obviously who are no longer going to be accredited right. Maybe more commensurate how it was back in 1982 whatever the small percentage in 1982 is going to be somewhat now in today's dollars but there's going to be another Avenue right. There's this this already legislation going through Congress and the SEC itself has passed a rule that they just haven't implemented which will allow people to take a test right and become accredited through a through a certification program or taking a test kind of like a Security's license type test that you're going to have to study for and you have to learn all this stuff but then you take this test you pass and that's how you're going to become an credit investor irregardless of your net worth. So I think and I've been talking about this for a while. Now that there's going to be the sort of the the the free pass version which is like hey. I've got a certain amount of of of of net worth which is going to be higher. Now. It's not going to be a million might be two might be three but that's the automatic way and if I can qualify through that higher number over here I've got an alternate path which is let me go take the test and be in a CR investor that way. But it's going to be a little bit. Painful. I don't know how many people you know I think you look if I'm accredited and I've been investing in in stuff and and now. I'm suddenly not accredited. I'm probably going to go take a test so that I can become accredited. Otherwise I won't have access to a lot of these. These deals that are limited to accredits only I suspect that in you know whenever this passes and everything I suspect that eventually a lot of the people that unlock accreditation the accreditation standards will have already been like licensed. They'll already have the license because that's how they kind accumulate that wealth or that's one of the ways that they do that so well traditional bum fashion.
•  Mauricio a quick final gold nugget for the audience oh gold nugget for the audience. Let's see I would um oh there's so many there's so many gold nuggets you know one of the things that I've started to do uh. It's been a while now but um I've I don't know how if you're a morning person or not Danny but like everybody that I know that does fairly well. They get up early and I would encourage people if you guys are not getting up forget about this 5: a.m. stuff but at least maybe the 5:00 A.M I usually get up around 4: but you just get so much done uh between those early hours. When everybody's you know they're not you. They're not emailing you. They're not calling you. They're not doing you get that time to yourself and I've really given myself permission. I've been expanding that morning time like it used to be an hour. Two hours now I basically myself four hours in the morning where nothing else can distract me I'm working on my one thing or what's the most important thing to drive your business forward. Uh. But whether it's the morning or the evening just set aside that block of time I like to do in the morning because like I said nobody else is emailing me you know I'm fresh. I'm you know just you know I've Gott a good night's sleep uh. But if you can take that time get up early before everybody else does and get that even if it's just 90 minutes in the morning uh you just you know multiply that by five days by 365 days you know after a while you're G to have such a big advantage over somebody else. That you know that that that Leverage is going to take you to hopefully whatever you're wherever you're trying to get to that's awesome well. I could not agree more and I've definitely found that to be true in my business so thanks for your time Mauricio. This is awesome and hopefully. We'll have you back on uh again at some point in the future. No I'd love to I'd love to come back.