Real Estate Nerds 58 | Asset Protection for Real Estate Investors : Royal Legal Solutions

Real Estate Nerds 58:

Bad Beats

"Market Downturn vs Not Downturn"

Kevin Bupp
Real Estate Investing Expert
Real Estate Nerds
Episode 58: "Bad Beats"

Listen to the Podcast Here:

In todays episode of Real Estate Nerds Scott is joined by Kevin Bupp, real estate investor and CEO of Sunrise Capital Investors, to go over his ‘Bad Beat’ which like many investors is the year 2008. In this discussion they cover the current state of the real estate market and what investors should do in response to it. Kevin also shares some insight into his approach to stress testing deals and the ‘downturn’ vs ‘not downturn’ debate.

Market Downturn vs Not Downturn

Introduction to Kevin and his history in real estate.

[3:22] Scott and Kevin get into todays ‘Bad Beat’ which is a deal that taught Kevin a lot about the real estate game.

[4:43] Scott and Kevin briefly discuss the “bubbles” in the market and if the current market is similar to 2008.

[7:32] Kevin’s stress/sensitivity test for making smart decisions on deals:

  • Run out hypothetical scenarios of what the future may bring.
  • Mapping out the short term and long term game plan.
  • Determining the type of debt it will qualify for today.

[9:30] Example of the stress test in action.

[13:13] Kevin talks about another instance he encountered in 08 involving single family homes…

[15:00] …and what he did in response to it:

  • Emphasizing the importance of relationships
  • Maintaining honesty and transparency
[18:17] The passionate split between investors on the status of the market (‘downturn’ vs ‘not downturn’) and whether it actually matters.

[21:52] Investment strategies for the current market as well as looking long term.

[28:00] Scott mentions the #1 BIG thing that he sees separating successful and unsuccessful investors.

[28:20] Scott and Kevin touch back on the ‘downturn’ vs ‘not downturn’ debate.

[31:27] How to connect with Kevin and who he is looking to connect with:
  • kevinbupp.com
  • sunrisecapitalinvestors.com

Listener Resources

Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook.

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Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions

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If you have questions about our content or suggestions for future episodes or guests, reach our podcast team at podcast@royallegalsolutions.com

About Kevin Bupp

Kevin has been in real estate investing since the age of 20. He completed a degree in business at a small community college in PA, but eventually he decided to focus all of his energy on real estate. This turned out to be a good move, because for more than thirteen years he has been investing and consulting with tremendous results, having completed in excess of $40 million in real estate transactions. Currently he is a candidate for CCIM, the highest commercial real estate designation around. 

Kevin has owned a successful mortgage company, and has started a number of other successful businesses, including an events company that hosts running events in 8 different states, a printing company, and marketing consulting.

Here is a quote from Kevin to give you an idea of what he is about: “I love life. I love my family, and my friends. I love meeting new people and taking calculated risks and inspiring growth. I love that my upbringing gave me the ability to pick myself up after a fall. Passion is the key, I think. Without it, ideas die before they have a chance to thrive, people don’t start their own businesses, and success remains a speck on the horizon.”

Connect

Connect with Kevin via his websites or podcasts:

  • kevinbupp.com
  • sunrisecapitalinvestors.com
  • “Mobile Home Park Investing”
  • “Real Estate Investing For Cash Flow Hosted by Kevin Bupp”

When making business decisions that affect your long-term goals, like what types of investments to make with your retirement dollars and which vehicles to use, it really is best to be aware of all of your options. We frequently talk about the Solo 401(k) and Self-Directed IRA as tools for funding your retirement. But what about life insurance? And what about the stock market? What if we told you there is a tool that allows to to reap some benefits of both? It’s called Indexed Universal Life Insurance–and some investors have found it a useful addition to their retirement plans.

What Is Indexed Universal Life Insurance?

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How much money do policyholders stand to make? Historically, returns run between 5-9%. The S&P Index has actually returned at 9-11%, but the upside limit on UILs stems from the account’s cap rate. For this reason, many advisors argue that the UIL can make a wise addition to a retirement or estate plan once more traditional and self-directed accounts are maxed out.

Tax Benefits of Indexed Universal Life Insurance (IUL) Plans

There are three key tax benefits of IULs. First, you may pay into the policy with pre-tax or after-tax funds. Withdrawals from the policy may be made tax-free if you are under 59 1/2. Such withdrawals are regarded as loans, with your death benefit serving as collateral. Any funds paid out to the beneficiary are also tax-free, including normal benefits upon your passing. This is true regardless of their value.

Ask the Experts at Royal Legal Solutions About Your Retirement Planning Options

Regardless of where you are in the retirement planning process, Royal Legal Solutions an assist you. We have extensive experience educating investors about self-directed investment options. Many of our investor-clients love our Solo 401k information, product, and compliance services. Our Self-Directed IRA services can also be helpful for retirement planning, as the SDIRA is yet another vehicle that allows you to diversify and take total control of your investments. To determine which of the available retirement planning strategies are best for you, consult with one of our experts at Royal Legal Solutions. You may also contact us with any questions you may have about your options.

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