ERN Monthly call
AAdmin AprilJul 13, 2023 at 5:12 pm1h 23min
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00:00Speaker 1
I'm just going to jump in into this and this could have worked. So what I'm going to do today is I'm going to give you some background, open overview about the niche market work some of you guys are familiar with. And then at the end, I will present what the package is. We do have a certification. So national certification there many of our real estate agents go through it. We have about 14,000 people that will be certified throughout the country. And I'll show you guys the these are the costs and all that. And like I said, you can make a decision whether this is something you guys want to use, bring to your team. And then we can make arrangements for that. And so that's pretty much okay, so the link is on the chat. If you guys click on the link, you can download the eBook. Just take a second and do that real quick. So that way you guys have the notes
Unknown Speaker
and make sure that everyone is
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00:56Speaker 1
doing that. So just taking a couple of seconds with you guys to get that information. It will take what I'm what I'm going to do today is I'm going to cover about, it's about 90 minutes worth of it but then again, you can stay as long as you want as long as you want and if you have to go I understand. So again, click on the link, download the nails so you can have him and that will take care of everything. All right. So, just really quick. My name is Mike Torres. I'm one of the cofounders of MTI education. I've been in this business for over 20 years. Previously before I got an undergraduate degree in real estate, I have a graduate degree in education. So before I got into real estate, I was a former teacher for the longest Unified School District so I took two of my passions, education and real estate and combined them and that's how MTI was born. One of the other co founders is Molly choice. My wife she has been very experiences which she and I have done a lot of properties in the property world. So we understand this niche market very well. In we here at Mt education, we design what we call the ultimate proper real estate system. So the system has three major components. The first component of course, is the education. That's the heart of it. So we have your system. We developed the curriculum based on all these years of experience. And this curriculum has been used by 1000s of people across the country. So not only we develop the curriculum, but also as being a former educator. I understand the importance to have support in the back end. So all of our students have access to a support system. And the support system is components and many different tools that we have for them. Now once we finish the support system and it was in place and the next thing was for us to be able to teach people how to get access to this leads. So when you think of our our system and the ultimate prognosis system is education, with the support and the lease, always working together as an ecosystem, so that the students use all the tools at all times and that's what creates the success that we have based on one of our some of our students that uses our programs. Now a little bit about ourselves who we are we certify over 14,000 Real estate agents across the country closing 1000s of provisions to actions per year, we developed the ultimate private real estate system exclusively designed for the real estate professional. We all offer the only national certification employment real estate goals, secrets, and secret stands for Certified probate. Real estate specialist. Today secrets is recognized by probate courts, real estate boards, judges and attorneys across the country. MTI has the largest network of certified probate real estate specialists in America and we are the strongest national brand in profitable staging, excuse me education. So a little bit about who we are. Another question that comes up quite a bit among people is like what's so special about probate real estate? So those of you who aren't experienced, you're familiar with this, but if you don't, if you have, you know, Jim Skiba background if you don't have a lot of experience in probate real estate, the first thing is this information is free. This is public information. And he's very, very easy to obtain. When I teach this, I tell people, the easiest way to get access to this latest release is really simple. First of all, step number one is you got to get access to our case number and to get access to a case number today, with all this technology available to us. You can use basically any search engine. For example, right now I'm standing in the LA County area. So if I want to look for a case number in the LA County, I just go to Google and I will type Los Angeles County legal newspapers. And the reason why I use legal newspapers is because every probate there is pile at any courthouse in this country has to be published in a legal newspaper letting the community know that this person has passed away. So whenever I find that case number, I'd be able to go to step number two, which is pulling this information directly from the probate court. So again, going back to my example, if I go to Los Angeles scan the legal newspapers, it will give me different choices. I click on one of them. One of the ones the website open up, I'm looking at all the different parts of them or that specific legal newspaper. So I'm looking for the link within the says classify section. Once I click on the classify section, it will show me all the legal postings and then once I find that area, I'm looking for a posting this says Minister of state of blank person, case number blank. That's how I get access to a case number. So that's the first step in the process. Once the I find the case number, I write it down on a piece of paper. Step number two, I go to my local County probate court. So again, using the LA County as an example, I go back to Google and I will type Los Angeles County probate court, and it's going to give me the probate court website. I click on it once I'm on the website. I'm looking for the link that will say case summaries or online cases something along those lines. Once I find the link, I'm going to click on it and it's going to ask me for a case number. I'll take the case number that I found on the legal newspaper. I plugged that in and it's going to give me two choices either is going to show me the entirety case online, or it's going to show me a summary of the case. If I can find the entire case online, then I don't have to go to the courthouse to pull this information. But if I only see a summary of the case, that means the my county that I'm looking at is going to ask me to go directly to the probate court to pull this manually. So that's one option nowadays, somewhat account is occasionally more tech savvy. But they also discovered that if I give you this information for free, we lose in revenue. So they are getting smarter. What they're doing is now they're charging you a fee that per page, or they can charge you a membership to pay to be able to access this information online. So it's still in the transition phase for some of the core classes across the country. So that's how you get access to this information. This information is free. There's really hardly any competition. This is really interesting. This is one of the niches their competition is very low. And the reason being is because most people don't understand what we call the probate timeline. And the probate timeline is the key to being successful in this niche market. And I'll show you guys in a few minutes. The probate timeline, very low close to client acquisition in terms of expense 90% of people who manage an estate will sell the property. So this is a very highly motivated sellers niche market. And when you sell the list and the ears become buying prospects, so this is again, another unique piece of being in this niche market that once you're working with the families and your prospect and in the case, once you finally just list the property and you sell it, these people who you are interacting with rather process they become heirs and now they're getting inheritance. So some of these individuals now they're having 50 $100,000 in their pocket, and now they're going you know what, it's time for me to buy my first home, it's time for me to upgrade him upside maybe it's just I want to start an investment portfolio. So it's really interesting. We can generate multiple Commission checks and have just one specific cases. And I have students, one student Brad Bregman, no San Diego, he got five bank commission checks. I was just one case just working with the family members was really interesting. So it's a very unique niche. Especially if you have a large team of people that you're working with this will be a great for them. Also, you have access to qualify buyers without investing any money and this niche market is not driven by the economy is truly recession proof. Right now one of the biggest challenges that many people are telling me I just finished actually a meeting with Georgia about an hour and a half ago. And I was asking them what was the biggest challenge that we're going through and they keep saying, you know, buyers trying to find sellers they really need to move forward. And what I was explaining to them and I said look, a regular seller in a probate seller is two worlds apart. The regular selling have a choice. They that they're selling because maybe they downsize the upsize. Maybe they have a job relocation, you know And right now, the way the market is they're sitting on the properties with a very low interest rate. You know, they're going to three, three and a half percent 30 year and the way they market is the deadline. They're not selling so that's the bottleneck. They have a choice. They probably sell it. On the opposite side. They have choices. I mean, so they don't have a choice. The regular citizen have a choice. The province really doesn't, because they are right now they're managing an estate. They have responsibilities to pay the State bills, they have to pay creditors, they have to file taxes depends on how much money is involved in the state. Now they're dealing with property taxes. So there's a lot of moving pieces that they have to manage any they don't have the money. They have to liquidate This is when 90% of these people always sell in the real estate piece because the most valuable asset to the estate is the property. And I show you in a few minutes. What is going on within this niche. It's just there's so many moving pieces. So when you think of a regular seller, they have a choice to do they stay in the game, or just get out of the game. He probably seller don't have a choice. They have a responsibility. They have a legal responsibility to the estate and to all the people involved. So it's a different it's a different world. So when I talk about probate real estate is very unique on its own.
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10:16Speaker 1
Now, let me keep showing you more information. So I did recently I did a survey is asking people across the country, what was the biggest challenge and it was really interesting as the survey came back and here's the biggest five challenges that most real estate agents are going through in their business they say there's really no unique selling proposition to differentiate myself from the crowd. I need access to the tools creating today's new top producers difficult to be located as relative to the high competition in the marketplace. And when I saw this, I'm thinking the right I mean we have about 1.3 million real estate license across this country and everyone is chasing the same inventory so it's very competitive. When you're looking at the market as a whole. They also say difficult to locate a qualified listing opportunity and the real estate market is totally unpredictable. subpoena a former educator, I always like to do research, I mean research really gives a clearer picture of what you're looking at. And I found this chart this is by NAR simply showing the real estate market behavior over the years. And as you can tell you guys are very experienced people the real estate market is constantly moving. So I can my next question is like, Okay, how does this niche market probing fits within the real estate arena and it was really an eye opening the difference? First of all, the real estate market always moves cyclical, but in probate is very stable. This is one of the very stable niches within real estate because it's all connected to the lifecycle. And that is the key here. You want consistency, consistent flow of inventory. This is a beautiful niche to get in. So I did my research and let me share with you guys what I found. This is a study by the US Bureau of the Census. And this is a study of population 60 years or older. And as you can see, at the beginning of a decade, we had about 77 million seniors was 60 years or older. They projected by 2030. We're gonna have about 92 million seniors 60 plus so here's the key. This telling us that luxury is near horizon, it's not uncommon for us to reach 8090, even 100 years. So that is one of the greatest things for human for humans. The problem is, the longer we live, what happens to our financial resources over time, it diminishes. People never plan to live this long. That is a huge problem. This is why we have reverse mortgages in the open market because people are running out of cash and their most valuable asset to the estate is their homes. 70% of all the properties they go through the probate court is free and clear. That's what the money's sitting in equity. So people are tapping into their own homes to be able to supplement their income as they get older. Now here's the the effect after effect of this is that as people pass it on, now you have this state it's going to go through the probate courts and the person who's in charge realize that there's no liquidity all the money is gone. But there's two things you cannot avoid in this country debt and taxes. So how am I going to pay taxes? How am I going to pay the creditors, how we're going to pay medical bills, funeral expenses, how am I going to pay for the attorney fees so that's what they're going like, I need to have something I need to sell something. And that's why 90% of these people are liquidating and their most valuable asset to the estate is always going to be the real property. This is why there's such a high turnover in terms of people liquidating all these properties because they people that are using all their money, there's no money at the end of the day. We have a lot of cash, bullet states cash for that acid poor, and that's what the opportunity comes in. So here's more stats as of 2021 According to the census thereby 91,330,000 I'm sorry, 830,845 homeowners in the United States, that's what I call the inventory. So the national NAR says that about 5.3 million homes are sold in the US per year on average. So when I start finding this information, I'm looking at this map Okay, so we have about 91 million homeowners and according to Nar about 5.3 million of these homeowners will sell so what is the percentage at the end of the day? Then I realized that only 6% of homeowners across this country are selling their homes. So I can tell you that on January 1 only ever. Six out of 100 people are going to be selling their homes this year. And this is why my survey people were saying is very competitive. It's very crowded, because everyone is going after the same thing. That's why let me show you something different. This is what makes this niche market so unique.
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15:05Speaker 1
According to the CDC, as of 2021, about 3.4 million people die each year in the United States, according to the census 65% of these people they pass away. They own at least one house. Again, it's just a math problem. What is 65% and 3.4 million that creates a 2.2 million potential probate listings in this country. And we know based on stats 90% of these people liquidate these homes because again, like I say people are living longer the longer you live, financial resources diminished. So what is 90% or 2.2 million as a 1.9 million properties being sold across this country cheers from this niche market or property real estate and people think they will dispute about probate. That means that somebody died not necessarily in probate, we have people who are alive, but they liquidate in their homes. So this is bigger than what people really think it is. So when you put the numbers together if I have a 5.3 million according to Nar been houses being sold across this country, and based on the statistics about 1.9 million more this property is coming from this niche market or property real estate, I can safely I can safely say that about 30% of all the homes being sold across America comes in this market this niche market or property real estate hopefully this making sense guys, I'm throwing a lot of numbers. But that's basically what it is. When you look at all these statistics. This niche market is bigger than what people used to think of. It's just there's there's a massive number. And the other part is that we have a huge generation coming through the baby boomers generation is the wealthiest and largest living generation today. And this is why we see so much real estate going through the probate courts today and I'll give you more information in a couple of minutes. Now here's your average probate house in order to get access to this. Just need a case number and find out where your local Probate Court is located. You can do this in LA you can do this in Texas, you can do this in Utah. You can do this in New Jersey. Basically, if people are living there, there's always going to be a probate court so there is real estate available in your own backyard every single day. I overheard with somebody who's from the Chicago area cook county to county is huge. Oh my gosh, there's so much profit because to just Cook County alone. So it's a great place to do business, especially up in Chicago. Now there's two ways you can settle on a state in America. Either the person died with a fully vested leave in short, or people die with a will or nowhere. The only way to avoid probate is if the person had a fully vested trust upon death. Let's call a little bit deeper into this. So a trust is something is a legal document that is put together by an attorney once the trust is completed, now the owner of the trust will have to move all of their personal assets from their personal name to the trust name so they have the house into the trust. They have investment properties into the trust. Anything that is appreciating assets will be moving to the trust once everything is completed. Now we have a fully funded trust. If the person passes on, this travel goes to the attorney's office and between the attorney and the trustee. They will liquidate the estate. That's how it works. Now here's a common mistake. People says the trust everything's done correctly, they fund the trust. Later on, they decide to refinance. So they take the house out of the trust, they refinance and they forgot to put it back in when something is left out of the trust or time on death in this situation. They have to take the leave insurance, but I leave with the probate court asking the court to put that asset back in it. And now the court will have to make a decision based on the intent. What was the intent of the deceased person to put it inside of the trust or to leave it out? If they put it back? Into the trust, everything goes back to the attorney's office and he continues if they leave that acid outside of insurance now this asset will be probated all the way through. Now, that's a common mistake that people make. But if only 5% of Americans have a fully vested leave insurance, therefore 95% of the people that die in this country there is they get settled with the probate courts. And that's what the opportunity is is incredible. Now, let me show you I did a little research. Someone I went back a year and a half ago two years ago, told me that probably wouldn't work for them because there are farm areas area was there were a lot of well to do people educated people. They didn't think that probably worked for them. So when they gave me that information, I'm thinking Let me see let me do a little bit more digging to see that is true. So I put a collage of people who their estate went through probate, and I'm going to share that with you just to make a point here. Probate does not discriminate. The fact is less than 5% of Americans have a fully vested trend, therefore, everybody else has to go through probate. If you have a Will you go through probate if there's no wheel, you still go through probate because the only way to avoid it is a fully trust a living trust. So and let me share with you guys this collage, every single person this collage, their estate went through the probate court. And as you can see, I mean there's the one that I was a little surprised is the one on the upper right corner that was kind of took me a little bit. I was I was kind of shocked. I was like I can't believe this man didn't have everything done correctly. He knew he was dying. He was he had a live insurance. He was putting everything on the trust. Once he passed away. The next step in the process is is taking inventory of all the assets. So the trustee the attorney would take an inventory with Steve state. And they found one account that he was not inside of the trust at time of death. And this account had about $300 million worth of Apple stock in it and he was not inside of the trust. So in a situation like this, they went to Santa Clara County, California. They filed with the probate court asking the court to put their account back in it. And the court will have to make a decision based on the intent what the intent was to put everything in the trust. He just missed one. So they put everything back into the trust and he went back to the attorney's office but the moment you file any documents at any courthouse in this country becomes a public record. So you can literally go to Santa Clara County and pull the Steve Jobs case, read the trust write down exactly what happened was the attorney who was the trustee, so all this information is available to you and that's where you can generate really good qualify leads. Then you have from the disk over some of these people from the upper right. Upper left corner from left to right you have when the Houston Pablo Picasso Sonny Bono, Michael Jackson, Michael Jackson's estate was in probate for almost 10 years and the biggest problem on the estate was having estate it was a Bitcoin going on. So it was a fight between the royalties the music, they all the wealthiest he was coming from the music companies and the companies didn't want to pay and the estate was fighting know that money should go into the estate so they were millions of dollars coming you know coming in into the the estate because of the royalties of his music. And that's the reason why it took so long to settle. Everyone's tried to come to an agreement. So the probate court eventually found an agreement among everyone that everyone was happy, but it dragged on for almost 10 years. And who made most of the money, the attorneys. That's the fact it's really sad. Then you have next to him. Mohammed Lee Howard Hughes, Steve Jobs, James Gandolfini. Heath Ledger. Did you guys recognize who is in the middle there? The guy with the top hat? Take a take a wild guess who that is? To see if you guys can recognize him typing on the chat just for fun.
Unknown Speaker
It's a famous banker.
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