Welcome to another episode. Today, we’re thrilled to have Mauricio J. Rauld, a premier real estate syndication attorney with over 22 years of securities experience. Known for his ability to simplify complex legal concepts, Mauricio helps real estate syndicators and those looking to tokenize their real estate offerings stay compliant with Federal and State securities laws. He was recently featured on the cover of the Top 100 Magazine as a Top 100 Attorney and has been recognized as one of the top California attorneys under 40 by SuperLawyers magazine.
In this enlightening discussion, Mauricio shares essential strategies for asset protection, emphasizing the importance of legal compliance and safeguarding your investments. He delves into the current investing environment, lessons for passive investors, and offers practical advice on how to protect your assets in today’s market.
Mauricio’s insights are invaluable for anyone looking to invest wisely and protect their wealth. Whether you’re a seasoned investor or just starting, this episode provides key takeaways to help you navigate the complexities of asset protection and legal compliance.
Tune in now to gain exclusive access to Mauricio Rauld’s expertise and discover how to cover your assets effectively!
Get my new book: https://bronsonequity.com/fireyourself
Full Transcript:
Bronson Hill: This is the Mailbox Money Podcast and I am Bronson Hill. As a busy professional, I wrestled with how to grow my income without taking up more of my precious time.
I learned that managing real estate, actively trading stocks, or being unable to scale up investments is not passive investing. This is the place where you’ll discover new asset classes, develop investing skills, and learn from experts how to become financially free with less work than you thought possible. And now, get ready for truly passive income.
All right, so it’s time to cover your assets, right? It’s important as a passive investor, that you know how to protect yourself, especially if you’re a higher net worth person, you have a business, you have multiple investments. If you don’t, you are a walking liability.
Everywhere you go, you could back the car out of the driveway and hit the neighbor’s kid, and all of a sudden, all of the assets, all the things that you have protected in an entity or even in your investments, they’re all at risk. And so, one of the challenges of our legal system is that anybody can sue anybody. And so, it’s important to be able to have some legal protection in what you do.
So my friend, Mauricio Rauld, is awesome. It’s a great interview, talking through how you protect your assets, what’s happening in the current environment, and what are some lessons we can learn as passive investors or operators. Because again, if we don’t learn, we’re just simply going through the same things.
We don’t have a chance to step back and say, you know, this is the learning from this, right? And it’s easy when a deal goes bad to blame someone else, but the learning is to say, well, what can I learn? I chose to invest in this deal.
So what can I learn here, right? So those are all things we’re going to jump into. I think you’re going to like it.
All right, welcome back to the Mailbox Money Show. I am super excited to be here with my good friend, Mauricio Rauld, who’s on the road in a hotel, speaking all over the country. He’s the attorney everybody wants to talk to because he speaks English.
And he’s an amazing guy. Welcome Mauricio. How are you doing, brother?
Mauricio Rauld: It’s great to be back, my friend. Looking forward to this episode.
Bronson Hill: Me too, man. I know you have some news. You’ve got a new book out.
Mauricio Rauld: I do. I got it right here. It’s my first, you know, I’ve written a couple of chapters in a couple of books and you may as well with our buddy, Kyle. But this is the first full-fledged book, Legal Strategies for Everyone, that our mutual friend Ken McElroy asked me to write.
You know, I’m one of his legal advisors. And so, he’s putting out a series of books called the strategies book series, the strategy series. So, Kenny’s doing real estate strategies for everyone.
I’ll do the legal strategies and then Eric does the tax strategies and it’s going to continue with more sales. So it was, it was a fun process for me. I’ve never written a book from scratch.
It’s a lot more involved than I thought it was, but in the end, I’m super proud of it. And I can’t wait to write the next one.
Bronson Hill: Well, I want to hear more about that. I just made a decision, you know, that Tony Robbins has this quote. He says it’s in your moments a decision that your destiny is shaped.
So, I decided to write a book at a Tony Robbins event, ironically, almost two years ago. And then just two days ago, I made a decision. I’m going to write another book.
I’m going to a book camp and going to write another book. So, I’m thinking of investing in yourself or passive investment, passive investing myth, and getting into more of the stuff on investing. But I had a method that I used to write my book, right?
I’d set the timer for 60 minutes, five days a week. And I would just write, I would just stay there and write for 60 minutes. By the time we’re off, I’d be done.
And I go into something else. Then a couple of months later, I pretty much had most of my book done, but did you, what was your strategy to write? How did you kind of…
Mauricio Rauld: You need to write a book called, writing book strategies for everyone or something like that. Like I am the worst, you know, everybody thinks I’m super disciplined on it. I’m really bad at discipline.
And so no, I am a procrastinator. So, this way until the absolute last minute, I think I had like five weeks or four weeks, three, whatever it was. Like I was really stressed.
And I had the outline. So, my thing was I started with the outline. So, I knew all 10 chapters.
So, I had an idea, well, this chapter is going to be on a state plan. This chapter is going to be an introduction to asset protection. This chapter is going to be on insurance, you know, whatever.
But then it was like, okay, well, I got to write it. You know, I’ve got 10 weeks to go. And that means that’s a, I got one week per chapter.
And then it was, so I literally crammed it all at the end and just, you know, and that’s what lawyers do. And I did that in law school. I did that at the law firm.
I mean, we pulled all-nighters all the time. I mean, we are literally when the, I act best. It’s, I don’t like doing it, but I’m, I usually act best when I’m crunched for the pressure, really it shouldn’t.
And it’s no different from the book. And I, you know, I got it in on right under the wire. And there’s definitely, I’m not recommending that strategy for everyone.
Bronson Hill: Yeah, well, I think it’s good.
You know, a lot of people listening may want to write a book someday. And it’s just like, how do you write a book? And there are different methods.
And of course, we’ve got the method I mentioned, there’s the method you mentioned. And, if you give yourself deadlines and I got to get it done, whatever. And you, I mean, you just got to do however you got to do it.
So, I think if you commit to it, it can be great. But, so tell us legal strategies for everybody. One thing I’ve admired about you is you do, you’re able to break things down in a way that everybody can understand.
And, and we say, you know, we’re in a few lawyers actually speak English because a lot of lawyers are good at making things as complex as possible. But tell us like, what, what are some things from the book that people will get when they pick it up?
Mauricio Rauld: Well, I think you’re right. So for example, one of my favorite quotes right now that I’m using is it’s really what’s caught, not taught. So just because somebody teaches you something, if you don’t actually take it in and take notes and capture it, it doesn’t really matter if you, all the information come your way, but you’ve got to be able to articulate it.
So that is one of my, one of my things I spent a lot of time, as you know, Bronson, you know, before I was full-time syndication attorney, I was a pretty prolific asset protection attorney. So I’m one of them, I think one of the more, more foremost experts. I don’t do it anymore.
Which is a lot of fun cause I don’t have a dog in the fight. Like I’m not here to sell you an LLC or a series LLC or anything. So, a lot of this is about asset protection, but I think, especially for your audience, which is sort of either passive investors or real estate investors, it’s really important to understand this idea or this concept to sort of separate yourself from the asset, you know John Rockefeller, I think it was, who said, you know to own nothing and control everything.
And that really is the overarching principle of asset protection. You want to make sure that when you’re investing, whether it’s real estate or any other asset, or you have a business, you want to make sure that that business and that property is, is being conducted in a separate legal entity, separate from yourself. That way, if something does happen on something, God forbid it happens, but you know what, it is going to happen.
So, if you’re a real estate investor, guess what? Tenants going to slip and fall, and your oil is going to explode. Some horrific things going to happen.
Hopefully not catastrophic, but those do happen as well. I’ll tell you stories some other time about the things I’ve heard of on apartment buildings of things that have happened, but you want to make sure that when that happens, you are protected, meaning that the liability is really limited to whatever structure, you know, LLC or corporation, if it’s a business, you want to make sure that that liability is not going to extend to you personally. Cause you want to make sure you hold on to your hard-earned wealth.
Not really is what asset protection is. And what I think most people forget in this kind of the overarching principle is that when you’re thinking of asset protection, and let’s just use real estate, cause most of the audience here, and that’s, that’s what you and I specialize in. There are really two angles to things that people have to think through.
One is the inside attack, right? Something happens to your property as we just discussed. And in that scenario, there’s a, there’s a set of principles and a set of things we can do.
But in addition to that, we have to worry about the outside attack, meaning something happens to you unrelated to your property, unrelated to your business, you know, you get into a car accident is the classic example, and now there’s a judgment against Bronson. I’m going to pick on Bronson. I have a judgment now against Bronson and unrelated to all your real estate holdings or all your assets.
And now I want to go execute and actually collect on that. And that’s where a different set of principles. That’s where you hear things like charging order protection.
That’s where you hear things like Wyoming entities Nevada entities and Delaware entities. So depending on what angle I’m looking at, what I’m trying to address, we’ll have different strategies to do, but at a very minimum, you want to make sure you do not hold your properties in your personal name, a lot of people do, or another interesting thing that people do is they create the LLC for their properties, but they never actually get around to transferring title from their personal name and transferring it to the title of the LLC. But at the minimum, you want to have that because otherwise, you have what we call unlimited exposure.
So, no matter how little equity is in your home, if something catastrophic happens in your property and you don’t have insurance or the insurance isn’t enough, then it doesn’t matter that there’s only a hundred thousand dollars in equity in the property or 50,000 or 200, you’re going to have an unlimited, you could have a multi, multi a hundred million dollar judgment against you. And you’re going to be on the hook for that.
Bronson Hill: Yeah, no, that’s interesting. And we, we talk about that with a lot of our investors about asset protection. And again, some people have a net worth of 50 million and they’re not working anymore.
And it’s like, okay, obviously I need some asset protection here just because I’m a walking liability. I could back over, you know, the neighbor’s kid or, you know, you just never know. And then all of a sudden you have all this and there are people, especially where we live in California that are just go after people with assets that just find a way to, to just cause, you know, law sue them and you can sue anybody.
That’s the downside of our, of our legal system. But what is like, I guess, because again, some people just starting out, I’ve seen people, oh, I’ve got a 50 K net worth. And I, I got to set up all these things.
And I’m like, well, I don’t know if it really makes sense at this point, but what’s the timing to do that and what levels, you know, because again, if somebody’s 50 K is like, okay, maybe you do an LC, but you don’t these other things. And then, you know, what, what, what are some of the things people do and maybe different thresholds?
Mauricio Rauld: Beautiful question. I actually talk about these in layers. I talk about the six layers of asset protection because you’re right.
If you’re just starting out, if you have two jobs and this is your first ever rental property and it’s a little duplex and you know, you’re putting 10K down or no money, whatever, that’s a lot different than your example of now I’m retired. I have a $50 million in net worth. I mean, that’s going to look a lot different.
You’re not going to set up a fancy offshore asset protection trust, fancy, all that stuff. If you’re the w two guys or gal who just bought their first property, but on the other hand, insurance alone is not going to cover the guy with 50 million, right? So, it really doesn’t tend to your point, but I think it all starts first of all insurance.
I mean, I think that’s your first layer of defense, no matter what at a bare minimum, you want to have insurance. Everybody should have to be your first layer defense. Now I hate insurance companies, maybe hate is a strong word, but I have a lot of issues with insurance companies for a variety of different reasons.
And so, you need a backstop in the event that the insurance either isn’t there because there’s an exclusion, which is one of the issues where you think your cover turns out that you’re excluded or just the number isn’t enough. You only have a million-dollar policy or a half-a-million-dollar policy. This is a $10 million judgment in the event.
The insurance is in there. You want to backstop and that backstop is the LLC, the limited liability company. So, at a bare minimum, I think an insurance policy covered by an LLC, if nothing else, would be your first layer, your first step for somebody just starting out.
Now, as you accumulate more and more properties, you start getting a little bit more complicated. You start having multiple LLCs and that’s where I would start worrying about setting up LLCs and in states that are really, you know, that are advantageous to you. So you hear about these, you know, I love Wyoming myself or Nevada, they have what’s called charging order protection, which is really, really important because it’s a situation where if somebody does end up suing you, Bronson personally, and they want the judge to hand over those LLCs to say, I’m suing you to me to satisfy my judgment.
The judge is not going to do that. They’re going to limit me to a charging order means I’m just going to get your financial distributions that you would have received, but I’m not going to get control of your assets or either ownership of the asset. So that’s a big deal, but that doesn’t really happen until you get a little bit more involved.
And then of course, as you get more and more sophisticated and more and more when your estate grows, right? You gave an example of the $50 million guy. That’s when you start looking at asset protection trusts, which are really the gold standard of asset protection.
The problem is they’re just expensive. Doesn’t make any sense to go spend, you know, 30, 40, $50,000 to set up an offshore trust and pay a trustee. And when you’re only trying to protect 100 grand or 200 grand.
So, depending on how, you know, how likely it is that you’re going to get sued, a doctor, for example, there’s going to be a much higher liability than, you know, a completely passive investor who really doesn’t do much other than passively invest. So, it just depends on a lot of those factors. But you’re right.
It does depend on where you are in your life and your career and you just got to build upon that.
Bronson Hill: Yeah, it’s interesting too. There’s kind of this asset protection, you know, based on your level of activity, how much privacy you have. It’s nice to think about these private deals.
If you’re a passive investor, it’s not disclosed. People don’t know that you have millions of dollars invested in deals, which is great. Something that’s awesome about passive deals.
But let’s talk a little bit about it, I want to shift a little bit, talk about kind of what’s happening now in the investing environment. We’ve seen, you know, rates rise the fastest we’ve seen in over 40 years. I know you actually have a podcast, Drunk Real Estate, where you guys chat with a bunch of awesome dudes and you talk, and give updates on economics and all that.
So, you guys have conversations around this, but I know you’re seeing it from both sides. You’re seeing it from operators that have struggled and you’re seeing it from investors that are going through deals where there are potential losses or losses or capital calls. Can you speak to just kind of what that looks like and how kind of the environment you’re seeing and kind of what investors can do in this, you know?
Mauricio Rauld: And as you know, my bread and butters, I represent, you know, GPs or sponsors. That’s really who my clients are, but I’ll tell you the LPs, which are the investors, the passive investors, they’re pissed. We were, I think it may end for you there, but I was at the best ever conference and there was a whole day on an LP.
So I got a lot of feedback from limited partners and they’re upset because not only are deals not going well, obviously, which is something that you don’t necessarily control, but more importantly, a lot of the GPs, you know, obviously we have had a lot of cash calls, which obviously nobody likes cash calls, but there’s been a lot of cash call requests because people need more capital, but GPs have tended to kind of disappear in this time of need. That’s the feedback I’m getting from LPs. So, you know, something isn’t going great, okay, everybody understands, but the level of communication between the GP to their investors has really gone down.
And that’s unfortunate because I always preach and I got this from my buddy Kenny MacElroy he says, you know, communication builds trust. Yeah, so when things aren’t going well, that is the time to double, if not triple your communication with your investors.
And unfortunately, a lot of sponsors are literally sticking their heads in the sand and not only not communicating with their LPs. We’re talking a little bit about this offline as well, but also I’m getting a lot of people talking to me about some of my clients that are that they’re cutting off communication with their co-GPs, meaning the sponsor, right? There’s a lead sponsor, but not communicating or actually cutting off meeting access or document access to their partners.
And so that’s, you know, that’s separate and apart from weather, hey, interest rates. I mean, everybody, I think everybody understands interest rates have gone up, not only gone up substantially, but in the timeline that they have, they’ve gone up so fast, so quickly, but a lot of people got off guard. The insurance policies that people are buying, these rate caps, though those are expired, expiring, or maybe they weren’t covering again, anybody expecting them to go this quickly, this fast, go up this fast.
And so I understand there’s some distress, but I think LPs are a little upset or a lot upset because of the way that they’ve been handled. They’re not getting access to information, not getting access to communications. So that’s something that I think will come back to bite a lot of sponsors because they remember, I don’t know if you’re a GP, listen to this I will confide that there are a lot of LP-only groups out there, whether they’re Facebook groups or LinkedIn groups, they don’t let in any of the GP that’s only limited and they talk amongst each other.
And so, when one sponsor is doing something that it gets, that message gets around. And so I just think it’s going to be, if you’re, if you have a chance to over-communicate, I would do it because otherwise it’s going to affect your ability, I think, to raise capital in the future because word’s going to get around like, hey, this is the guy that when things didn’t go well, instead of handling it a certain way, you know, with communication, with doing everything possible, we just never heard from him or her again, that’s going to, I think, be, make it harder and harder for sponsors to raise capital the next, the next cycle.
Bronson Hill: Yeah, I agree. It is really, and as a GP who’s been through a couple of deals that have struggled, it’s, you know, it is more where you get these calls and it’s uncomfortable. You get people, hey, what’s going to, you know, how secure is this or what’s going on?
But I think this is, you know, it’s funny, I was a youth pastor for like five years and, you know, you have a lot of deep conversations over there talking about spirituality and talking about God and things like that. But when it comes to money, these are deep conversations as well, because people that, you know, have potential loss or are going through stuff. I mean, if you’re there and you can help people, even if you’re not, you know, it’s not good news, like you said, you know, Ken, our friend Ken MacElroy delivering bad news or, you know, bad news early builds trust, you know, and really having the, hey, this is where we’re at.
And this is what, and if you know those listening to know Ken, I mean, he’s just what you see is what you get kind of guy, like he doesn’t really sugarcoat it and he’s always what’s going on, whatever. And he just, I think that’s how we can actually get better. And I’ve seen a lot of investors as well.
I think there are a lot of lessons here, both for GPs and for LPs. And I think the tendency as an LP is like, well, you guys lost or you may lose money or you lost money. So, it’s your fault.
But the issue is like, as an LP, I chose to invest in this deal. So I have to say, well, what did I learn? And I’ll say for me as a GP and an LP, I’ve learned I don’t want to do any more real estate deals without fixed long-term debt, five to 10-year debt.
I don’t want to do any more of this two-year stuff because, you know, sooner or later, there’s going to be another situation where rates rise quickly. And even though 2010 to 2020, like it was, you were a genius if you owned property. It didn’t really matter.
You were just there. But, you know, the tide has come out and you can see it has been swimming naked. So, it’s important to say, oh, wow, like there’s something I can learn here.
Can you speak to that? Just the idea of the lessons that we can kind of see along the way.
Mauricio Rauld: You’re starting to see it already. I mean, the lessons are people are starting to focus on areas of, say, the operating agreement or the structure of the deal that they wouldn’t even pay attention to two years ago. But I think in the next round, they are starting.
So, for example, the cash call provisions are obviously a big one this year that’s going around now. So in the past, nobody really knew or paid attention to the cash call provisions. But obviously now, even our clients, when they’re, you know, needing to do or even thinking about doing a capital call, they’ll reach out to us and say, hey, we need to raise more money.
What do we do? Or how do we do it? And I said, well, we’ve got to look at the operating agreement.
So that applies to everyone. So if you’re thinking about doing a cash call, step one is to pull your operating agreement. And if you’re an LP too, you pull your operating agreement and look at the process.
There’s going to be a section in the operating agreement that lays out the step by step on how to do a cash call. And some of them are all, they’re all different, right? So some of them have big dilution provisions in there.
So if you don’t contribute a capital call, your interest in the deal will dilute. Others give more power to managers to go get loans from outside companies and really dilute you. So you’ve got to really pay attention to those.
And then the other provision people are paying attention to a lot is the communication part. So, there’s always a section in there that says what kind of reporting the sponsor has to give their investors. And everybody’s like, oh, I’m just going to get a report every quarter.
Now I’m hearing LP say things like, well, now when I’m investing with a sponsor, I want to see a copy of the prior, the types of communications, or the types of reports that have been given in the past. And now I want to actually see the type of reporting, am I just going to get a one-page Word document that says, hey, things are going great? Here’s your money.
Or am I going to get a really detailed breakdown with proformas and how it should have been going and how the actual and that’s becoming something important where three years ago, four years ago, nobody cared? They just they just used some provisions in there. And so little lessons like that.
I think people are starting to focus on parts of the deal that they wouldn’t have thought about a few years ago.
Bronson Hill: Yeah, I think that’s really true. I think that, you know, it’s the learning, right? It’s investing in ourselves as well.
It’s the growth that happens while we, you know, we learn some things go well and we learn things don’t go as well. And I think the sponsor is especially that, you know, really communicate well. I think, you know, we talk about two things.
You know, there’s a performance of a deal and there’s communication and the performance can be great. But if the communication is terrible, it’s not a good experience. People don’t reinvest and the communication is great, but the performance is terrible.
It’s like, well, that’s great. You’re reporting all the time on something that’s just like a turd, you know, it’s not working.
Mauricio Rauld: And don’t forget, like, if you’re an LP, just think of it from the sponsor standpoint, but think of your LPs. They’re probably invested in multiple deals, right? And so, it’s going to be rare for you to have an LP now that hasn’t had an issue with their deals, like at least a cash call or some trouble, whether they lost a deal or lost money, maybe not, but they’re going to have an issue.
And so, they’re now learning, like, hey, I’ve lost, I know you people lose money. I understand that, but then how do they handle that on the communication? I think that is going to be something they’re going to be looking at the next time around.
So be prepared to answer those questions. Hey, how did you communicate? And they’re going to talk to your other LPs like, hey, I did Bronson do that last time things weren’t going perfectly.
Did he communicate? Did he not do it? And if the answer is, dude, I couldn’t get a hold of this person and they just disappeared, that’s going to affect you.
So, I just want people to be aware of that because it is going to be part of the conversation on the next capital raising cycle.
Bronson Hill: Well, and it’s funny, it’s interesting to go through it both as a passive investor and seeing a deal struggle versus also being a GP. I mean, when things are, when, you know, I think it’s very glamorous to be like, oh, you raise all this capital and you do this and it’s great, whatever. And then, you know, if you’re somebody who raises capital and you’ve got partners, and our goal is to basically, you know, obviously, we have fun to fund or co-GP on some things so we’re involved.
But my goal over time is to like to own everything and really operate nothing, right? I just kind of feel more like being able to travel and do this stuff. But when something’s not going well, those are very different conversations and you go, you kind of go from being a hero to being a zero in some people’s eyes.
And it’s just, it’s a struggle and I’ve watched different, you know, you kind of get to see what someone’s character is when something’s going difficult. And I’ve seen co-GPs I’ve had on a deal that struggled where they’ve like, I’ve really seen them shine and just really come forward. And I’ve acknowledged, man, like, this is really awesome to see you just come forward, and really like the way you’ve presented yourself.
But other ones, like you said, they hide, they run away, they become, they blame, they do other things. I’ve even found, actually, I know, I’ll give an example. I won’t share who it is, but there’s a past investor I know who invested $700,000.
I think, pretty basically almost a first-time investor or very new investor in a deal. It had a loss of, I think, all of them, most of the capital or potential loss of all the capital. And this guy said he’s like, well, I trusted this co-GP, it wasn’t me, but trusted this co-GP or this sponsor.
I trusted that they’re the expert in this and I, and I, but, you know, as a limited partner, you can’t just trust someone else with your investment that, you know, I think it’s been said that no one cares about your investments the way that you do. And that’s why the education piece is so, so, so important. What are some ways you found that you know, people can grow their education in this space?
I know there are many ways, but what are some ways you recommend?
Mauricio Rauld: I mean, let me just make a quick point about that because as a past investor, obviously, once you make the investment, there’s not much, you’re along for the ride, but all of your work has to happen at that, when that trust party, that’s where your due diligence really had to kick in. Like you had to do your due diligence on the particular sponsor, not only the co-GP they were talking to but who’s the lead GP? What is their level of experience?
What is their level of experience in that particular asset class? I mean, there’s so many things that you should be looking at because once you write that check and leave, you’ve got nothing, you’ve got nothing to do. So yeah, you blindly trust somebody, maybe the first time when you do all that work and the friend like, when you spend a lot of time doing your due diligence the first time and you do that and you get to know them and you’re comfortable with it, and then maybe the second time, well, I’ve already done the due diligence, I can trust them because I’ve already done the work, but to blindly send your money over there without doing any due diligence, I would say there’s some fault there on the LP side and LPs have to understand that just like any investment, there’s risk and that nobody’s going to bat a thousand. And so, there’s an argument to be made that you want to diversify your LP investments.
Hopefully, you have 10 LP investments out there and maybe one or two of them didn’t go well, but you’ve got the other eight that are doing okay in the different asset classes. And then from an educational standpoint, I mean, look, I don’t want to get too fancy on this. I mean, literally, the advent of YouTube and all of this, I mean, nobody’s dying for information these days, whether it’s YouTube or Google.
I mean, there are ways for you to get educated. You don’t have to go to a fancy college or university anymore. Like you can get all of this amazing, in fact, you can actually get courses that are like, I’ve taken courses at Harvard that are just on YouTube.
Like literal courses when you’re trying to educate yourself, if you’re a brand new LP or maybe you said, look, I’ve been trusting people. I want to learn a little bit more about what I can do. I mean, I’ve even put down account and I represent sponsors, but, you know, questions to ask, you know, sponsors prior to investing.
I know a lot of people have done that. So, it’s not that difficult if you put some time in it to just find that the information is out there if you want to go find it.
Bronson Hill: Yeah, exactly. I mean, I think that’s the issue and I get it comes down to just personal development, which we’re taking full responsibility for your life, right? And for what you want to do it’s always easier to blame but then we don’t learn.
Mauricio Rauld: So I want to commend you on saying that because you did mention like, look, you can either blame somebody else or you can learn from it. And I think those of us and I know you’re being in the personal development like I am, we not only like to take responsibility. You know, there’s a great book called Extreme Ownership, right, from Jockman.
That’s an amazing book. But yeah, I mean, you got to learn from it. That way, it’ll enhance your next time around and you’ll learn.
If you can learn from these mistakes or whatever you want to call them, then you’re much less likely to fall into that mistake the next time and then you can continue to grow your portfolio. So anyway.
Bronson Hill: Yeah, I actually give the example. There are two investors that you know, you’ve been to our meetup, a local meetup here in Glendale, California. But years ago, we had a meetup and the speaker had asked his name, Jay Massey.
He does a lot of stuff in the short-term rental space and he said, you know, how many of you have lost maybe room 50 people? How many of you lost more than $100,000 in a single real estate deal? And it was like, maybe a few hands go off.
Maybe he started with $50,000 and a few, you know, four or five hands go up. Or how many of you lost more than $100,000? How many of you lost more?
Just keep your hand up. And then you’ve got all the way to like, how many of you lost more than half a million? And then he said, how many of you lost more than a million dollars in a single real estate deal?
Just like, just like, I’m like gasping. Oh my gosh. And just two hands up and it’s Jay Massey and then Christina, who’s the co-leader of that and they’re both kind of worthy people.
So, but it’s all learning. If we allow ourselves I lost $70,000 in one day in an options trading strategy, right? It’s a little embarrassing, but it happened and I learned from it.
I learned I’m not a good options trader, right? So I learned the things that I need to learn. And obviously, there are different lessons that we have.
So, awesome. Well, how can people, I know you’ve got all kinds of stuff you’re doing. You’re tied in with Brandon Turner and Ken MacElroy and all this stuff.
What are some things? What’s kind of next for you? I know you’ve got the book you’re promoting.
What are some things that you’re developing and just some ways people can expect you’re doing?
Mauricio Rauld: I’m really focusing on the sort of the, as you said, I love the teaching and the education and I do have that. I’ve just accepted it. People tell me it was like my secret sauce or whatever.
It’s just something I’m really good at taking complex matters and making them easy. So I’m really doubling down. I’ve got two podcasts and I’m talking about doing a third.
So I’ve got Drunk Real Estate with my co-hosts J Scott, AJ Osborne, and Kyle Wilson. Not that Kyle Wilson, Ashley Wilson.
Bronson Hill: The other Kyle Wilson.
Mauricio Rauld: And the other Kyle Wilson. And then I got my own podcast Real Estate Syndicate Alive that right now is on YouTube only and I’m planning to then move that over to also a podcast platform. And then I’m in some discussions with others to do a third podcast.
So, I’m really trying to really grow the sort of the media side of it because I think that’s the best way to serve. I think it’s a win-win for everyone. You add value to the community and then also that indirectly helps me in so many different ways whether it’s financial or just from a personal development standpoint.
You know this because you do this as well. But the amount of energy and satisfaction and sense of accomplishment that I get after spending an hour just doing an AMA with people. I’ll do and I do AMAs twice a week and for an hour and there’s like 40, 50 people on there and they’ll just grill me with questions and all I do is answer them.
I get so much satisfaction and personal growth from that. I think I get more out of that than the people that actually show up and they get a lot of value out of it. So, I’m going to continue that.
We’re looking at where we’re obviously not but we’re scaling our company trying to get from seven to eight figures and really enjoying building that. A lot of personal development is involved in trying to scale. There’s stuff you need to do to get your business to seven figures and then there’s something different you do to multiply seven and then getting to eight figures like I need to become somebody more.
I need to read more and get more coaches. I’ve got a lot of personal development to get me to that next level there. So, I’m excited about doing that over the next few years.
Bronson Hill: Yeah, there’s a book it’s 10X is easier than 2X and the guy makes the case that is it easier to double the size of your business or 10X the size of your business. Most people would say it’s easier to double and he says no, it’s actually much harder because you actually have to spend if you’re working 40 hours a week you got to work 80 hours a week and you got to do just more of what you’re doing. When you 10X you have to let go of about 80% of what you’re doing and you just kind of describe it you actually have to become a different person.
So people who go 10X are good at embracing a new identity, right? So you as a seven-figure Mauricio look different as an eight-figure, right?
Mauricio Rauld: Yeah, it’s fun because I’m really trying to step into those shoes. I’m trying to think not try shouldn’t even say try. I am walking around as if I’m an eight-figure entrepreneur.
Like what does an eight-figure entrepreneur do? They don’t open their emails. They don’t go by posts like what does that person do?
What do they read? Who do they listen to? What are their day-to-day habits?
And that’s really where I’m getting into. But yeah, it’s a different skill set that I’m in the process of acquiring and I’m looking forward to that journey.
Bronson Hill: Yeah, that’s awesome, man. Well, I commend you for doing it and I think I look at people like you and I think of leaders. I think of leaders like, you know, Warren Buffett and Mark Cuban and some of these guys, you know, they read all the time, right?
They find ways to invest in themselves and read and do more and more. And so, I think the busier I get, the more I try to realize my part-time job is learning and reading and finding more to do. And so, I love all the value you’re adding, man.
I always appreciate how approachable you are and how kind of straight-shooting you are. I encourage everybody to reach out to Mauricio. We appreciate you being here, brother.
And we’ll hopefully have you back here again soon and wish you the best on your travels there. And thanks for joining the Mailbox Money Show.
Mauricio Rauld: Thank you for having me. Appreciate it.
Bronson Hill: Thanks, man.
All right. So love this interview with Mauricio. Love how down to earth he is. And again, coming back to just some of those things of investing in yourself you know, choosing to learn the lessons to reflect, to not stop investing.
If you have one deal that goes bad, it doesn’t mean investing is bad or that you’re not good at investing. It just means there’s a lesson there. And so, the story of the example I gave where you had two investors that had lost over a million dollars each.
But each of these people was worth, you know, a lot more, you know, over 10 million. There’s a high net worth each of these people had. And so, you know, they use it as education and I’ve used losses in my life to educate and help to not define, you know, I’d say, oh, I’m a failure. I’m a success based on how something goes.
But everything is learning and everything is education. So, my hope is that for you, friend, that you learn, that you grow, that you invest in yourself no matter how things go, and that you will continue to get better and better.
Just like my book Fire Yourself says you can learn to become a better and better investor and you will grow with it. So, I hope you enjoyed this. Love to hear any comments.
Love for you to share this and feel free to reach out. If there’s any way we can help you. If you haven’t joined our investment club, love for you to join that and hear about some of the unique deals that we’re doing.
I look forward to catching you on the next episode of the Mailbox Money Show.
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