The Residual Real Estate Agent Show

SB 9 Explained: Build 4 Units on One Property

Most people think SB 9 explained means understanding a law. What it actually means is understanding why you might be sitting on $400K in land value and not even know it. My guest Eric Paul Escobar, CEO of Esco Builders, has actually completed an SB 9 lot split in Downey, California. Not theorized it. Not coached about it. Done it. It cost $50,000 and produced a back lot worth $300K to $400K. We break down exactly how that happened and whether it makes sense for you. Here is what we cover: ✅ What SB 9 explained really looks like when someone builds it from the ground up, not just how the law reads ✅ The difference between an SB 9 unit vs ADU when it comes to appraisals, ARV, and refinancing, and why this matters more than most investors realize ✅ The full SB 9 permitting process step by step, surveyor, architect, planning department, civil engineering, county recording, and permits in the right order ✅ Why the lot split process steps California investors need to follow are different in every city and why getting that information in writing is non-negotiable ✅ How to subdivide land in California using SB 9 with or without a lot split, and which lot types give you the best shot ✅ The honest truth about ADU vs duplex investment value when it comes to comparables and what lenders actually look at ✅ Why very few people are doing lot split California real estate deals right now and what that means for the investors who are willing to be patient ✅ How Senate Bill 9 California real estate law stacks with ADUs to get you up to 4 units on a single family lot This is not beginner content. But if you are ready to go deeper than ADUs, this is where the real land value is being created right now.

They Said $10M Was Unrealistic. He Did $200M.

Most agents building a real estate team from scratch make the same wrong first move before they ever hire a single agent. Cyrus Moseni was told his $10M goal was unrealistic two weeks into getting his license. He put his iced tea down, thanked the man, and told him he'd be at a different brokerage within 90 days. Year one he closed $30M. Year two, $52M. Today the Keystone Team does over $200M a year with under 40 agents and every single one of them closes deals. In this conversation Cyrus breaks down exactly how he did it, with real numbers and zero fluff. ✅ Why building a real estate team from scratch starts with a VA hire, not an agent hire ✅ The real estate team structure that lets his admin handle every offer, every showing schedule, every piece of paperwork so agents only do what makes money ✅ The real estate team splits math that actually works, and why the pie goes negative 10% if you get the order wrong ✅ How he uses a real estate lead generation system combining Zillow, Meta ads, and an ISA model to give every agent on his team a live pipeline on day one ✅ His real estate prospecting system before paid leads existed: 4 hours cold calling, 2 hours door knocking, 80 calls an hour on expireds and FSBOs ✅ Exactly how to hire a broker of record to launch an independent brokerage without holding your own broker's license, and what percentage structure to expect ✅ The honest breakdown of real estate team vs independent brokerage from someone who has run both, including when ancillary services are the only reason the numbers work ✅ Where to find the best VAs for real estate, including which countries and platforms actually deliver when hiring virtual assistants for a growing team This is what it actually looks like to build from zero to $200M with a lean team, a tight system, and no agents sitting on the bench.

How I'd Buy a Rental at 2% When Rates Are at 7%

You keep running the numbers on rental properties and walking away because nothing cash flows at these rates. This subject to transaction explained is the episode I wish I had when I first heard about this strategy. I sat down with Marcus from Surf 1st Realty, a transaction coordinator who has structured these deals from start to finish, and we broke down every single piece of how subject to real estate actually works, not the surface level stuff, but the full picture both sides of the table need to understand before moving forward. Here is what we cover: ✅ What it actually means to buy a property using subject to mortgage investing and why it is not the same as a loan assumption ✅ Why sellers facing foreclosure use this strategy to sell fast and walk away with their credit saved and actually helped, not just protected ✅ How these deals can close in as few as 10 days with no appraisal and no bank qualification ✅ The difference between a land contract vs subject to and when each one makes sense ✅ How a performance deed works and what it does to protect the seller if a buyer ever defaults ✅ The due on sale clause, what actually triggers it, and why insurance is the number one thing to get right ✅ How inheriting a 2% mortgage through creative financing real estate changes the cash flow math entirely when new loans are sitting at 7% ✅ What sellers need to know about qualifying for a future mortgage after doing a subject to deal ✅ Who the ideal buyer and seller are and what the subject to real estate California market looks like for this strategy right now If you are a seller trying to figure out how to avoid foreclosure without destroying your credit for a decade, or an investor who wants to understand subject to vs loan assumption before structuring your first deal, this episode is built for you. Marcus can be reached directly at 916-496-4512 or marcus@creativetcservices.com.

Sell Your Rental Without a 1031 and Pay Zero Tax

The spendthrift trust explained, and why it might be the most powerful tax strategy real estate investors are sleeping on. I sat down with Don Thornton, a real estate investor who has been using this trust to legally eliminate taxes on rental income and capital gains. Not defer them. Eliminate them. When your properties are held inside a spendthrift trust for real estate, the rent your tenants pay comes into the trust as passive income and it is not a taxable event. When you sell an asset inside the trust, there is no capital gains tax. No 1031 required. No moving to Puerto Rico. The money just comes in clean. Here is what we cover in this episode: ✅ What the non-grantor irrevocable trust structure actually is and why every word in the name matters for your taxes ✅ How the trust leaseback strategy lets you move up to 97% of your business net taxable income out of reach of the IRS legally ✅ Why this trust offers stronger asset protection for real estate than any LLC on the market, a good attorney can crack an LLC, but they are not cracking this ✅ How eminent domain protection inside a trust works and why the government literally cannot force you to sell land held as a trust asset ✅ The IRS Code 643(b) provision that makes all of this legal, backed by an IRS opinion letter and 33 years of returns with zero audits ✅ How to avoid capital gains tax on real estate sales without being chained to another exchange ✅ Real examples including how Don moved from paying massive tax bills to using the trust to cover his living expenses, his kids, and his assets If you have been writing big checks to the IRS every year and feeling like there has to be a better way, there is. This is it. Drop a comment below with your biggest tax question and make sure you subscribe so you never miss an episode of the Morales Group Show.

Assume a VA Loan With Only $25K Down

If you've been looking at assumable loans and hitting a wall because you don't have $150K or $200K cash to cover the gap, this episode is for you. I brought in Mike Yates, Senior VP at My Home Lending, to break down a real program that solves the biggest problem buyers run into with assumable loan down payment requirements. Most people find a home with a 2.5% VA or FHA loan and then walk away when they see what they need to bring to the table. What Mike shared is a no-brainer if you're in that situation. Here is what we cover: ✅ How a HELOC in second position can bridge the gap on a VA or FHA assumable loan so you bring in as little as $25K instead of $200K ✅ How the assumable mortgage second mortgage structure works, what the rates look like, and how the interest-only draw period gives you flexibility ✅ Why the blended rate on a combined assumable plus HELOC loan often beats a brand new 30-year mortgage at today's rates ✅ What the assumable loan qualification process actually looks like, including debt-to-income requirements and servicer approval ✅ How taking over a loan that is already years into its amortization schedule is a massive advantage most buyers completely overlook ✅ The role of assumption specialists and why having one in your corner matters now that assumable mortgage programs are coming back in a big way This is assumable loan gap financing done right. The gap is not a dead end. There is a real program, a real lender, and real numbers that make this work. If this helped you, hit subscribe and share it with someone who is stuck on that same gap. More episodes like this coming.