November 5, 2025 • 38 mins
Home values are up, but so are the risks! We break down how to protect the equity you’ve worked so hard to build in both your primary home and your rentals. From legal shields to financial strategies—don’t miss these essential steps to keep what’s yours… yours!
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:08):
Do I look okay, everything's good.
Speaker 2 (00:10):
Okay, good Tuesday afternoon to you.
Speaker 3 (00:14):
Welcome to the John Sanchez Show on News Talk seven
eighty k which it's a pole pleasure to be with
you and a pleasure to be with my co hosts.
Let's go around the horn, mister Corey Edge of Edge Really, Hey,
you doing big c.
Speaker 4 (00:24):
I'm doing fantastic, sir.
Speaker 2 (00:26):
How are you no complaints whatsoever? Hiland's mortgage? How are you?
Speaker 4 (00:30):
I'm doing fantastic, doing fantastic.
Speaker 2 (00:33):
Glad to hear it is the Fed your friend. We'll
see right.
Speaker 4 (00:37):
I don't know.
Speaker 1 (00:38):
I'm just I'm so over them right now. John, It's it's.
Speaker 2 (00:41):
Crazy, but I hear you.
Speaker 1 (00:45):
Are you Are you still a fan of Jerome Poward?
Speaker 4 (00:48):
Do you think he's missed a few? Yeah?
Speaker 2 (00:50):
I still am. I I think I think.
Speaker 3 (00:55):
I think at this point, to be honest with you,
it's almost like all of us felt our senior year
in high school.
Speaker 2 (01:00):
Right.
Speaker 3 (01:00):
We sat back and he's like, I know I'm going
to be out, Like in another month, Am I going
to really do anything to screw up and cause a
lot of volatility in our lives and stuff. I think
that's the way he's looking at it right now. It's like,
I'm going to pretty much give the street what they want.
And I, like we said when he had the the
press conference last week, Dwight, I honestly do not think
whatsoever that the FED is not going to give us
(01:22):
a cut in December. I think one hundred percent they
will no matter what he said. I think it's I
think it's absolutely.
Speaker 1 (01:28):
What's the probability that you're showing right now? I think
you were like you were like in the seventies.
Speaker 3 (01:32):
I thought before the mid low sixties, low sixties, sixties. Check, Yeah,
that's that's been. That's been a while on that one.
But yeah, nothing, I haven't seen anything recently. So we
will see, you know, we will see. But but the
bottom line is, you know it is what it is.
But tell you we we had one of those days today,
guys where you wake up and, like I warn everybody about,
(01:54):
and everybody all of a sudden just wakes up and
you know, everything was fine yesterday and you wake up
today and everyone's like, you know what, I'm really concerned
about valuations of the stock market, and specifically valuations of
of AI related names and so on and so forth.
And you know, we sold off on the news. So
(02:14):
this is this ongoing thing that we keep doing. Is
one day everyone just loves AI and the next areaone's going, boy,
things are getting a little crazy and the you know
the levels and Palanteer was the was the the real
culprit today is I'll you know, talk about you know,
there are Ford priced earnings ratios to two hundred times
what their stock is trading at.
Speaker 2 (02:33):
So again it goes back to oh geez, that sounds.
Speaker 3 (02:37):
Familiar back in the dot com era, right where you're
getting these crazy, crazy priced earnings ratios. We mean the
stock is expensive relative to its earnings and where the
stock is trading, and so on and so forth. And
then everybody all of a sudden wakes up and you know, Palenter,
you know, tanked almost eight percent today, but it brought
down then the videos and advanced micro devices and so
on and so forth, and so all it takes is
one company. But you know, yesterday, I'll tell you guys
(03:00):
and and folks, please go back and listen to the podcast.
Speaker 2 (03:03):
If you missed the show yesterday.
Speaker 3 (03:06):
You know the amount of money north of a trillion
dollars guys that open Aye, the parent of chat GPT
is on the hook for meaning deals that they have
struck with the likes of Oracle and so many other companies.
It was about one point three trillion dollars. Like Jason
and I were saying on the show yesterday, guess what,
you know, all it takes is someone to stumble, right,
one of the companies providing the chips and the GPUs.
(03:29):
All it takes is one of them to stumble or
chat GPT. The work comes out, Oh we weren't able
to make a payment to one of these companies, and
that whole house of cards begins to get very wobbly.
And so, like I said, it's all about the valuations.
What do you think about that, Corey?
Speaker 4 (03:42):
I totally agree with you. And it's very interesting if
you look, I'm sure you looked at how all these
things kind of stack up. Obviously, you've got Nvidia at
the bottom. None of this happens without Nvidia. Yes, you
know one day that it might change. But then you've
got the Microsofts and the other ones, and the open
AI is kind of somewhere and they're at the bottom,
but they're I thought I found it very interesting to
read how their business works with all this money that
(04:05):
they're semi allocating that they don't really have out to
these AI data centers. But then you know, the three
of us could start a uh some kind of tiny
little company and we can build it on their stack
real quick, and it can have you know, AI intelligence,
and we can create an app and we can have
it you know, on Apple the next day and build.
(04:26):
But there's no real I'm trying to think the right
way to put it. There's nothing behind it. There's no
real revenue behind Everything is run off of open AI
and all of these little deals. So as you mentioned,
one little hiccup down there at the bottom, and it
is just a house of cards that I'm not saying
it's going to happen, but that's how it's built right now.
Speaker 3 (04:44):
Yeah, because because AI is is obviously the driving force
to today's market activity, right and I say to I
mean this this year to date, if it wasn't for that, yeah,
we'd probably just be having kind of an average year
or maybe even you know, a lackluster year, maybe even
a negative year. Because as you look at it, the
country is pretty upset about the government shutdown, and you know,
some of the different things going on in Washington and
(05:06):
obviously tariffs and all the negative things. But yet you
got this Ai sitting out there as the outlier and
goes that's you know, that's the shiny object that we
want to go towards and find ourselves.
Speaker 1 (05:16):
So, John, you you've often referred to kind of as
dot com, do you still see it as like of
our time now what we're in dot com? So some
will survive, some will.
Speaker 3 (05:28):
Go absolutely absolutely yeah, and a lot of similarities. Like
I said a moment ago, valuations that's always a concern, right,
we all learned that, you know, inevitably a company has
to have the earnings to support its price level of
its stock right based upon valuations, and we don't.
Speaker 2 (05:45):
Have that with a lot of these names.
Speaker 3 (05:46):
Now you take the Navidia's, the Microsoft's, metas sure they've
got the earnings numbers, but you take some you know,
you go a few layers down the chain and you've
got a lot of companies that again open Ai, which
is you know, without open Ai, we wouldn't be having
this conversation whatsoever because they're the ones that are doing
the deals with everybody, right, and remember they're they're not
a publicly traded company.
Speaker 2 (06:07):
Are the revenues growing? Yes?
Speaker 3 (06:09):
But can they can they pay the bills? Can they
Can they have enough revenue eventually? The way they're growing,
The answer seems to be yes, but we don't know.
Like Corey just said, Dwight, it's all on paper right
now that you know, the growth will eventually or the
revenue will eventually catch up with the growth and so
on and so forth.
Speaker 2 (06:27):
But we just don't know.
Speaker 3 (06:28):
And you know, I get nervous when we have days
like this, right, and you kind of sit back and
you go, man, all it takes is again one of
these companies not to give a bad earnings warning or say,
hey we didn't get our payment from open Ai or
whatever the deal they struck with them.
Speaker 2 (06:41):
It's not going well.
Speaker 3 (06:43):
And then, like Cory said, the house of cards begins
to slip away on us here. So, yeah, a lot
of a lot of similarities to to dot com, a
lot of some alargies. And then you know, so that's
how we started. Right. We had Palunteary report really good
numbers after the close yesterday, and then that stock started
to come down, and then you saw that the other
(07:03):
semiconductor names you begin to falter and then we had
the CEOs of Morgan Stanley and Goldman Sachs at a
conference and I believe is in Hong Kong, both of
them saying, you know, over the next hold to twenty
four months, they're predicting anywhere between attend to twenty percent
market correction, right because of the valuations I just mentioned.
So those kind of things don't help the market whatsoever
(07:23):
when you get major Wall Street firms calling for correction
at some point. So, but again, twelve months to twenty
four months, I.
Speaker 4 (07:29):
Mean a lifetime can make that.
Speaker 3 (07:31):
Yeah, it's a lifetime exactly. So yeah, it was just
kind of one of those days. But I'll go through
some of the details, but let me tell you what
we really have lined up after the stock market recap
for you so really excited about this topic. You all
know in Corey Dwight absolutely know it is very, very important.
Speaker 2 (07:49):
That we understand the aspects of building wealth. Right.
Speaker 3 (07:52):
We work hard, we save, we invest, we do all
the things that are supposed to do and before you
know what, you wake up and you got a pretty
nice personal balance sheet. But there is just not enough
attention given to protecting that personal balance sheet. Asset protection
is what I'm talking about. But we're going to focus,
of course on asset protection for the real estate side
of things.
Speaker 2 (08:12):
Today we have home values that are up.
Speaker 3 (08:14):
But also as home values go up, I guess what
so are the risk Right, So today what we're gonna
do is we're going to break down how to protect
the equity in your primary home and also time permitting,
how to protect the equity in your investment properties. If
we can't get to the investment property side, we'll kick
that forward till Thursday's show. But we're going to talk
(08:35):
about legal shields, financial strategies, etc. Personal residents, and again
on the investment side, because right Corey, there are a
few overlaps as far as the strategies that you and
I put together on this list. There are some strategies
that overlap, but there are some that are very unique
to the investment side of the house.
Speaker 4 (08:53):
There's some that are unique to the investment side, and
there's some that are unique and very powerful to the
owner occupy side, the primary residence side, which we'll get into.
And I don't know the last time we've talked about this,
if ever, but number one on the list, I won't
give it away but that's a huge one, and it is.
I find people don't ask me about it till it's
really never too late, but until they have a problem
(09:14):
where they have to address it. And you know, same
with attorneys I talk to, like, it's always the thing
people don't think about until they need it.
Speaker 3 (09:22):
Well, I'll just left to get out of the bag
for you. I appreciate you holding that back, but we're
talking to homestead exemption. Absolutely, we have one of the
most liberal ones here in the state of Nevada.
Speaker 2 (09:29):
Yea. But to your point you mentioned about attorneys.
Speaker 3 (09:32):
I've had attorneys as clients that haven't done it sure
in their own home, so you know, but you're right,
very few people know about these I've been an advocate
for them for so long. I mean, what does it
cost Cory twenty or what is it? I think it's
down to fifteen bucks or something.
Speaker 4 (09:47):
Now. Yeah, the recording fees on up a couple of
years ago. I don't know honestly exactly, but it's under
thirty dollars.
Speaker 2 (09:54):
Under thirty dollars.
Speaker 3 (09:54):
Yeah, So as you'll learn, with our first strategy of
asset protection for your primary home for under thirty dollars,
you can protect the equity in your home up to
a certain limit that will go through just by filing
a form.
Speaker 2 (10:06):
I mean, it's really that simple.
Speaker 3 (10:07):
And so that's what we're going to be discussing, because again,
the last thing we want to have happen is you
lose your life's work because of a frivolous lawsuit. Or
maybe it was a legitimate lawsuit. But Corey, real quick,
before we go to break. You deal a lot with attorneys.
You know the legal system as well as anybody. I
always tell the audience, and I always tell my clients
the first thing when you are involved in a lawsuit,
(10:29):
the first thing the planet's attorney, if you're the defendant,
the first thing the planet's attorney is going to do is.
Speaker 2 (10:33):
They're going to try to find out all of your
what insurance and what else? Equity, equity in assets law, Yeah, yeah, yeah, exactly.
You got to disclose those. You got to disclose those.
Speaker 4 (10:45):
You got to disclose them by a lot. And the
insurance too, we'll get into you have to disclose. I
was dealing with one of these unfortunately not that long ago,
for a client of mine, and they thought, well, nobody
knows this policy. You legally have to disclose that. If
it's there, you have to tell them that that's right.
Speaker 3 (11:01):
I've all all shared the story of a very dear
friend of mine who retired and wrote his financial plan
for his years in retirement, and that was on the
list as we always put for our clients to get
the homestead exemption done. Thank god he did, because about
a week later, one of his children got involved in
a car accident and the car was registered in my
client's name because the son was a it was a
(11:23):
miner at that point. And when he got served in
that paperwork, when he called me when he got served,
need a list of all of your assets. And thank
goodness that we did the homestead exemption and another strategy
that we talked about, and before we knew it, lawsuit
went away. Insurance companies settled and he obviously kept his
entire estate in play, but he could have been wiped up.
(11:44):
I mean, can you guys imagine you work your whole
life to retire, you built everything up, and then one
simple lawsuit and it's done, and it's done. So it's
this is the real life stuff, folks. It really happens,
all right. So we'll come back do a brief stock
market recap, and then we'll get into our strategies again.
Protect what you have built. It is how we've titled
today's show. Let's turn it over to Christens Now she's
in the right now traffic center. Kristen, Welcome back to
(12:09):
the John Sanchez Show on Newstalk seven eighty K which
with Dwight Mallard of Highlands Mortgage Cory Edge of his reality.
All right, here's how we finished up for the day,
a two fifty one decline on the dow point five
to three percent to a close of forty seven thousand
and eighty five. Now's that down four hundred and eighty
eight points two point zero four percent, and the SMP
gave up eighty points or one.
Speaker 2 (12:26):
Point one seven percent.
Speaker 3 (12:28):
On the commodity side, oil forty two cent pullback sixty
to fifty eight a barrel goal down fifty two dollars
and twenty cents to a close of three thousand, nine
hundred and sixty one dollars and sixty cents an ounce,
and mister Millard just a two basis point decline on
the ten year treasury yield, brewinging that yield for the
day to a level of four point zero nine percent,
how do we do on the mortgage sete?
Speaker 1 (12:49):
So it's just been a big old yawn, John. We
were at six point three to three, that's what we
were last week.
Speaker 2 (12:54):
Yeah, so we haven't moved much.
Speaker 1 (12:56):
I mean, the fifteen years looking nice at five point
eight and then you're a governments, you know, are just
slightly above six percent. So I mean, we were clearly
back into the fives. But we're gonna have to wait now.
Speaker 3 (13:08):
And it's like this bond market just can't make any
moves without any economic reports.
Speaker 2 (13:12):
Have you noticed how stagnant?
Speaker 1 (13:14):
Isn't that that is strange?
Speaker 2 (13:16):
Yeah, it really is, it really is.
Speaker 3 (13:18):
I was wondering how many bond traders even go to work,
you know, sitting. And for those of you that have
not been following the government shut down, here's a little
stat for you. Today ties the longest time the government
has been shut down. So obviously tomorrow will be a
brand new one. I will tell you. I wrote down
this gentleman's name. His name is Mark Wayne Mullen. He's
(13:40):
a senator out of Oklahoma, and he was on CNBC.
I don't know if you saw this, Core. He was
on CNBC this morning, and he made a very bold call.
He said the government will reopen by this Friday. And
the host on CNBC said, well, what do you know
that we don't know?
Speaker 2 (13:54):
He goes, there's just.
Speaker 3 (13:55):
A lot of chatter going on that among his Democratic friends,
as he called them at after today's election in New York,
that a deal will get down here the next couple
of days and the government will reopen on Friday. So
that's mister Mullen's prediction. Then we don't asked him twice.
Speaker 4 (14:12):
We don't know who's caving, We don't know under what circumstance.
Speaker 3 (14:15):
Well, you know how these go, Corey, that neither side
will cave. They'll say, oh, we got our part, they
got their part, and we all you know, came together
for you know, we shut down for no reason.
Speaker 2 (14:25):
Bottom that's why it's going.
Speaker 4 (14:26):
To be well, I will tell you, and I shared
with the affair last week, and without getting into all
the details, I had no like you hear the snippets
of what the Democrats are arguing over, and the healthcare
and this and that, my healthcare premiums. I got to notice.
I cried at the perfect time last week. One hundred
percent increase for the exact same plan starting in January
for no exactly, for no reason. I mean, John, it's
(14:49):
over three thousand dollars a month for a family of
five for a self employed guy. Like, how crazy is
that to think about? And we don't go to the
doctor right now? It's nuts.
Speaker 2 (15:00):
Yeah.
Speaker 1 (15:00):
Well, remember Corey, there was some chatter remember a couple
years ago about having to add that into a SUN
employment debt to income ratio. Can you imagine what that
would do to a lot of.
Speaker 2 (15:13):
M mortgas pain right right?
Speaker 4 (15:14):
Yeah, oh yeah exactly. I mean it's it's nuts. But yeah,
so not that I you know, I think the whole
thing is a bunch of bs. But somebody does need
to get this healthcare system under control because it's just
it's just wacked.
Speaker 2 (15:27):
Crazy numbers, crazy numbers.
Speaker 3 (15:29):
All right, just a couple more things, Like I said,
today was a bit of a week day across the bord,
as you heard me say mentioned a minute ago when
came back from break. So Valenteer was again the driving
force again. Good earnings report after the close yesterday, but
report itself just not real strong as far as you
know going forward. Just market evaluation, market evaluation, market evaluation,
(15:52):
So Palenteer on the day down sixteen dollars and forty
five cents seven point ninety four percent lost. In one
ninety seventy three, the video gave up eight dollars and
nineteen cents point ninety six percent, closing it one ninety
eight sixty nine. Advanced micro Devices down nine dollars and
sixty cents a three point seven percent, Tesla down five
point one twenty four dollars and eleven cent loss to
four forty four to twenty six Corey. Have you have
(16:13):
you noticed how many pension funds and things are coming
out and saying they're voting against Elon musk one?
Speaker 4 (16:20):
I have. I haven't read all the articles, but the
headlines have been a lot of big have you whoever
has a lot of votes?
Speaker 3 (16:26):
Yeah, yep, yep, they're voting against it, and that vote
should be coming here in the next couple of days.
Speaker 4 (16:30):
But didn't he say if he doesn't get the vote,
he's out of here.
Speaker 2 (16:33):
Yeah?
Speaker 3 (16:34):
He did, But you know, I made the comment on
the show that the day that he made that, I'm like,
you know, folks, it's like it's like when China said
we're gonna dump all of our bonds that we own
of the US and I said, let's stop and think
about this. It's like shooting yourself in your own foot. Sure,
and so I'll use it with Elon Musk, right. Obviously,
(16:56):
his other companies are very you know, very valuable.
Speaker 2 (17:01):
They're not publicly traded. Tesla is. But he's borrowed.
Speaker 3 (17:04):
I mean, I don't know the exact amount, but it's
in the billions of dollars from what I've seen in
the past of what he's borrowed against his Tesla's shares
right to fund by buying Twitter, which is now X
and so and so.
Speaker 2 (17:16):
I mean, that's that's his net worth. So what do
you think what happened to the stock?
Speaker 3 (17:20):
If he goes, oh, you guys didn't give me my
pay package, I'm resigning, right, Tesla's all years I'm resigning.
He'd be bankrupt.
Speaker 2 (17:28):
So he's not gonna go anywhere. He's too invested.
Speaker 3 (17:31):
No matter, it's just a threat like negotiation, I guess
you can say, but I don't. I absolutely do not
think that that that's gonna happen whatsoever on.
Speaker 2 (17:40):
That side of it.
Speaker 3 (17:41):
So all right, guys, well, let's get a couple of
minute jump start on our topic today, which again as
we set at the open and we're gonna be talking
about protect what you have built, meaning the equity in
your primary home and the equity in your rental real estate.
So we're gonna start today on the equity in your
primary home. So, mister Edge, here we go. You and
I let the get out of the bag. As the
saying goes, the homestead exemption. Use your state's homestead exemption
(18:05):
to legally protect a significant portion of the equity in
your primary home.
Speaker 2 (18:11):
How much is that equity in state of Nevada?
Speaker 4 (18:13):
Now six hundred and five thousand dollars?
Speaker 2 (18:16):
You go.
Speaker 3 (18:16):
I remember when I started talking about it was like
a couple hundred thousand years ago. Looks this is one
of the easiest, easiest things that you can do. And
Corey will walk you through the steps here in a moment.
To protect the equity in your primary home from creditors.
Does not protect you against the irs, but it protects
you against creditors. So Corey, always, when I'm describing this
(18:38):
to a client, I always like to give an example.
Let's say you've got five hundred thousand dollars of equity
in your home and you get sued. First thing the
attorney's going to do besides say, okay, give me a
list of all your assets, they're going to do a
title search. So they're going to see do you have
a homestead exemption on your home. Let's say you've got
six hundred Actually, let me change it. Let's say you've
got six hundred thousand dollars worth of equity. They're not
going to go after your home and even or no,
(19:01):
let me phrase it. Let's say you've got seven hundred
thousand dollars with evacuity, but you got you're protected. You
filed your homestead exemption, and you got six hundred and
five thousand that's protected out of the seven hundred thousand.
They're not going to mess with it. It's not worth
their time. So right then and there by, filing the
fee with the county recorder. It's a very very simple form.
We have them in our office. If you need one,
to contact my office, or you can go to the
(19:22):
Washoll County Recorder or whatever county that you're in, go
to the recorder's website. Almost all of them have them
on their website. You fill out the form, you submit it,
you pay the fee and Corey take it from there.
Speaker 2 (19:32):
How does it go on the deed?
Speaker 4 (19:34):
So it won't go on the deed, It'll be a
recorded document that is basically recorded after your deed. So
your deed is going to say who owns the property,
how they hold title. This is going to be a
recorded document, you know, further back, further down in time
that says you are hereby declaring it as your homestead
exemption and you have to have to verify under penalty
of perjury. I think that it's your primary residence, who
(19:57):
lives there has to be notarized and record it, and
again that it used to be a per page recording
number or a dollar amount, and now I think there's
a package that's like under thirty bucks. And I don't know, John,
I should know. They used to not notarize stuff for you.
In the Recorder's office in the county complex, they have notaries.
(20:17):
I don't know if that's changed or not, but I
always tell people, Hey, if you go down there with
that already notarized, you're going to be in better shape
than not. But they will help you. The people at
the washer Kennon Recorders office are incredible, incredibly helpful. So
if you go down there and have no idea, they
will They won't give you legal advice, but they will
help you if you tell them what you're trying to do,
(20:37):
they will help you get through the process.
Speaker 2 (20:39):
That's right, that's right, John.
Speaker 1 (20:41):
I want to add to that too, at least you know,
and this is experience, you know, in the state of Texas,
a homestead actually gives you a little benefit on your
property taxes. So you get a little yeah, so you've
got the protection, plus you get a little bit of
a It's nothing huge, but it's something they've given you back.
Speaker 2 (20:55):
So and we should mention that you make sure Texas
to white.
Speaker 3 (20:58):
We should mention that for those of you that during
California and other states.
Speaker 2 (21:02):
It varies from state to state.
Speaker 3 (21:05):
So you know, we're telling you what it isnt to
that of the six hundred and five thousand.
Speaker 2 (21:09):
What is it in Texas to ight, I don't know.
Speaker 1 (21:11):
I'd have to look it up, but it's it's so
encouraged here. It's it's it's amazing, you know, because and
I think that's why they give that little bit of
a property tax relief for filing the homestead.
Speaker 3 (21:24):
And then a little speaking of real life stuff that
we'll mention before we go to break.
Speaker 2 (21:29):
Is this.
Speaker 3 (21:31):
So let's say you buy your home in twenty twenty five. Okay,
and you're smart you and don't fall for one of
these services by the way that say, oh, we'll file
the homestead exemption for it, Corey shaking his head, Yeah,
for you know, one hundred and eighty two hundred bucks
or whatever it is.
Speaker 2 (21:43):
And you don't need that.
Speaker 3 (21:45):
So you buy the hell home in twenty twenty five,
you file the homestead exemption again, up to six hundred
and five thousand equities protected from creditor.
Speaker 2 (21:51):
Beautiful simple.
Speaker 3 (21:52):
But let's say a couple of years ago, Biden, you
call it Dwight and go, hey, my house is now
worth you know, I bought it for six It's not
worth whatever eight hundred thousand.
Speaker 2 (21:59):
I want to reef an in.
Speaker 3 (22:01):
Dwight and Corey, what happens to that homestead exemption when
you refinance?
Speaker 4 (22:05):
They're going to put a new deed of trust on there,
So you may have to refile after the deed of
trust is put on the new the updated date of trust.
Speaker 3 (22:14):
Right, if you ever refinance, make sure that you tell
your your scrow officer, et cetera. Or look on the
county recorders website if that, if that homestead remained or
to Corey's point, you may have to file a new one.
Speaker 1 (22:29):
And I'm pretty certain it comes off right, Corey, I'm almost.
Speaker 3 (22:32):
I've never seen Yeah, I was gonna say I've never
I don't want to go against you, but I've never
seen where it did not come off.
Speaker 4 (22:37):
Yeah. So that is and people have to kind of
realize when you get a county recorder and you look
at the documents, the documents never disappear, that will be
there forever. So it goes first in time, first in line,
first in time, whatever the saying is. So you have
to look at that deed of trust. The other thing too,
John is and I'm not I should know this, but
(22:57):
when you record a living trust, if you go from
Joe Bob to Joe Bob living trust, and you want
to ask that attorney to make sure do I need
the homestead and did the one I filed prior to
this get it doesn't get expunged? But do I need
to file an updated one since now I've retitled my
property and when we get back from break. There's a
few other important things on homestead, So we should probably
(23:18):
stick to it because it's there's a lot of stuff
people don't realize.
Speaker 3 (23:21):
Beautiful love it all right, we're talking about how to
protect the equity in your primary home as our first
topic turned over to Jack Sabin, News, Traffic and weather.
Jem Welcome back to the John Sanchez Show on New
Talk seven eighty k O, which with Dwight Mallard of
Highlands Mortgage Creatividuality. Once again, we finished down two fifty
one on the DALL last four eighty six on the NASDAK,
and eighty point decline on the S ANDP. You know,
(23:43):
we're just getting into our discussion of protecting the equity
in your home. But earlier in the show, we were
talking about this volatility we experienced today and some of
the reasons we were just chatting off air. One thing
I was going to throw in Corey and I forgot
or you know, to both of your points, and that
is tomorrow the Supreme Court.
Speaker 4 (24:01):
Meets Oh on the terraffs. That's a big one.
Speaker 2 (24:05):
That's a real big one. Yeah, exactly.
Speaker 3 (24:09):
And so they're saying probably will take a couple of
weeks before they issue decision, but that's going to weigh
on the markets.
Speaker 4 (24:17):
I wonder if that is going to be live, because
you don't they can always tell. I don't know if
you've ever watched them, but a lot of the pundits
you can always tell by the questions they're asking kind
of how they're leaning. Not that it's the decision, but
you can get a sense of what they're thinking. So, yeah,
that'll be that's interesting for I didn't know that was tomorrow.
Speaker 2 (24:35):
Yeah, it's a big one.
Speaker 3 (24:36):
All right, let's get back to our asset protection strategies
for our primary home. I guarantee we're not going to
get to our rental property once. We'll continue that on Thursday.
But core you said you had a few more points
you want to mention on the homestead once again, Folks,
in the state of Nevadi, you'll protect up to six
hundred and five thousand the equity in your primary home.
I remember it's only primary home. Follow the forum cost
you a few bucks to do it. Your equity is
(24:57):
protected other than from the irs.
Speaker 2 (24:59):
And whether.
Speaker 3 (25:02):
I think will you won't protect you if I remember, right, Corey,
it doesn't protect you on other type of leans and
things like that, right, So.
Speaker 4 (25:10):
That's why I was just gonna mention everybody. It protects
you from unsecured debts. So if you have a mortgage
or anything that you put on the house, it does
not protect you against that. Clearly, the mortgage holder's still there.
Nobody gets protected from the irs. They take whatever they
want regardless of what you have. But unsecured debt, as
you mentioned, car accident lawsuits, civil lawsuits, credit card debt,
(25:31):
those kind of things. It stops them from coming in
and taking their equity to settle it. The other thing,
and again always consult with your attorney, is if let's
say that something happened and tomorrow you get served with
the lawsuit, don't panic as in, wow, it's too late
to file it. I believe, check with your attorney. You
have up until the time that the judgment is entered,
(25:51):
so you have some time to file. A good attorney
is going to tell you to go file it right
away anyway, but you're not too late to do it.
The other thing, and I've had this, I've seen as
up in a couple of times. It's kind of rare.
We're not really rare. We'll get into it a little
bit down the road, but in your example, if you
have seven hundred thousand inequity and you have six oh
five that is protected. Sometimes if you get the judgment
(26:13):
against you, they will force a sell of that house.
You get to keep a six hundred five thousand dollars check,
but they get to keep the balance. So there is
some strategy into how much debt you have to lower?
Speaker 2 (26:27):
Correct exactly?
Speaker 3 (26:28):
Yeah, you're right, all right, Well let's go to the
second one. Not to that point, but Corey, let's talk
about in Dwight. Let's talk about the proper titling. Right,
what's the best way to hold your the title of
your home? Joint tenants, community property, living trust, so on
and so forth.
Speaker 4 (26:43):
Yeah, and this will be up to not everybody needs
to go see attorney to do this. Most people I've
met will always hold joint tendancy with the writer survivorship
if you have a spouse. I've been told by tax
attorneys in Nevada it's better to hold a community property
with the writer survivorship for tax reasons in case somebody
passes away. And kind of how the step up works,
(27:03):
I would I would ask an accountant or an attorney
that question. But ideally you're going to have a living trust,
and that's where it should be titled. So if you
already have a trust, then you're probably titled the correct
way to begin with. And I wouldn't worry about the
other two.
Speaker 2 (27:19):
Do anything you want to add to that. Do what
you get yourself. Muted, Corey.
Speaker 1 (27:23):
Can somebody hold title in a foundation?
Speaker 4 (27:28):
I'm sure, well you can kind of hold title anyway
you want, but I don't know if it'd be beneficial
in your primary residence.
Speaker 1 (27:35):
I mean, I'm just saying, I don't you know, I'm
starting to see this, I mean in just different things.
Speaker 4 (27:40):
I'm reading this whole thing.
Speaker 1 (27:41):
John, Are you seeing the people creating foundations for tax purposes?
Speaker 4 (27:46):
I don't know.
Speaker 1 (27:47):
Maybe it's yeah, yeah, yeah an anytime, yeah, an foundations.
Speaker 4 (27:55):
Anytime you see some scheme to not pay the I
R S. I would run from it. You're better off
just paying the airs, the everything with that too. And
I've helped out with attorneys that get into this. People
set up these schemes and they've got this partner, this
and that. Then they die and then they can't unwind it,
and then you've got to go to court just to
figure out, well, who does have the right to say, so,
(28:16):
don't complicate what's this thing at all?
Speaker 3 (28:20):
All right, I'll handle the next points guys three and
four of the insurance side of things. So as we
tell our clients, and these guys tell their clients too,
forget about everything else other than your homestead EXEMPTIONU. We're
going to tell you this is by far the best
asset protection strategy, and this will apply. We'll talk about
it on Thursday when we talk about the rental. That
(28:41):
you can do not only for your home, but just
your personal life and your personal assets, and that is
obtain an umbrella liability insurance policy.
Speaker 2 (28:50):
Now what is that? Well, just visualize.
Speaker 3 (28:52):
An umbrella is designed to keep the rain off of you,
and umbrella insurance policies designed to keep all of your
life protected from lawsuits. So an umbrella policy, in real
simple terms, provides excess liability protection above and beyond your
auto and your home policy.
Speaker 2 (29:09):
Okay, so first.
Speaker 3 (29:11):
Fundamental thing, you buy it in one million dollar increments, folks,
it's dirt cheap. Three four five hundred bucks per million
is typically what I see with clients. Generally, you have
to be with the same insurance company to that insurance
that insures your auto, they will be the ones that
issue the umbrella if you qualify for it. Okay, so
keep that in mind. You got to combine kind of everything.
(29:33):
But how does it help in real life? So here's
the example I always tell our clients. Let's say you're
driving down the road, God forbid, you get into a
car accident and it's your fault. Right, you crash into
a car, it burst into flames, it had a family
in there. Well you know dog one. Well, that family's
estate is going to sue you. So let's say you're
insured currently just a normal insurance policy by XYZ insurance company. Well,
(29:55):
let's say it's a million dollar lawsuit. Most people have
three hundred thousand dollars liability in their normal insurance policy
on their car. So you're at fault. Yeah, maybe you
how to blow out whatever the case is. And you know,
the accident is deemed your fault. So the planeff's attorney
is going to come after you. Your insurance company, XYZ
is going to write a check for three hundred thousand.
But wait a minute, John, you said the liability or
(30:17):
the lawsuits for a million dollars, what about that other
one hundred and seven thousand. Guess what once that insurance
company writes the check, there's no legal representation.
Speaker 2 (30:25):
They're not going to do anything.
Speaker 3 (30:25):
You've now got to pay to go defend yourself against
that additional seven hundred thousand. Okay, then you've got to
come up with the assets if you lose the court
or lose the lawsuit.
Speaker 2 (30:37):
Disaster.
Speaker 3 (30:37):
It's where most people file for bankruptcy have an umbrella policy.
Completely different. So the first thing that people don't know
Corey and Dwight is this. When you have an umbrella
policy through XYZ insurance company, again, you buy it and
you can only buy it in a million dollars increments.
Is there the insurance company is going to provide the
(30:59):
legal parteent and representation for you at no cost.
Speaker 2 (31:03):
Now why real simple.
Speaker 3 (31:05):
They're on the hook for a million two whatever the
value of your umbrella policy is. So you're getting free
legal representation if you lose that lawsuit, and they're going
to be again the ones defending you if you lose
that lawsuit. Guess what they're going to be the ones
that write to check in this example for the million dollars,
the playoff's attorney most likely is not going to come
(31:25):
after you. Let's say it was a two million dollar lawsuit,
but you are let's say a million and a half lawsuit,
They're probably not going to come after you for that
other five hundred thousand. You know, our dear friend Jamie Colik,
you guys, the rest in peace, Jamie. But you know
he remember he used to always tell us, is like
first thing a planets attorney does.
Speaker 2 (31:42):
They decide do an asset check.
Speaker 3 (31:43):
They're gonna see if you have a umbrella interns if
you are, they call that the low hanging fruit that
they're going to go after and kind of leave leave
you alone after that, Right, they can settle real quickly
on that they don't want to go after and try to,
you know, take everything else away from me. In most
cases there's exemptions. But that's what an umbrella polsy does.
But last thing I'll mention is it also so that
(32:04):
was an auto exam example, but it also protects you
for what I call crazy life events. Okay, we all
remember the Sunny Bono story, right, skiing down in Heavenly
crashes into somebody, goes into a tree and he dies. Right,
what if you were that person that pushed Sunny bono
into that pine tree that killed him. Your auto's not
gonna protect you, your home's not gonna protect you. Umbrella
(32:24):
would still literally anything other than intentionally killing somebody or
getting drunk and killing somebody, your umbrella insurance is going
to cover you. So another example I give. Let's say
you're being a real nice guy. You go to a casino.
You open the door for that little elderly lady. The
wind comes, the door slams closed, she crashes into the door,
falls to the ground, conkers her head, and she dies. Well,
(32:46):
probably the casino is gonna get sued, but you are too.
Auto and home's not going to cover you. But that's
where umbrella. So again it covers you, and hence where
the term umbrella comes from. It covers you for areas
above and beyond your auto and your home policy. Again,
I could go on and on and on. Contact your
insurance agent. Most of them will never offer it to
you because they don't make a lot of money commission
wise on it, which is a shame. But you go
(33:08):
to them and tell them you want it. And again,
based upon the size of your state, what liability risk
you have, tell them you.
Speaker 2 (33:13):
Want an umbrella policy. And get it.
Speaker 3 (33:16):
I can't emphasize it enough. So a couple look and
take this break and I'm so late dog on it.
All right, let's wrap it up with Christa snow right
now traffic center.
Speaker 2 (33:24):
Chris did.
Speaker 3 (33:28):
Welcome back to the John Sanchez Show on Newstalk seven
to eighty K. Wait's mister Malard, your phone number.
Speaker 1 (33:32):
Serve absolutely seven seven five two four zero two zero
two two.
Speaker 2 (33:36):
Thank you, Astray.
Speaker 4 (33:37):
Edge six seven three six seven zero zero.
Speaker 3 (33:40):
Thank you boys to appreciate it all right. Umbrella insurance
final point. I want to mention for those of you
that have investment real estate, talk to your insurance agent
and make sure that you get a writer on your
umbrella insurance policy that you own personally on your investment property.
(34:00):
Not expensive to do. I know some insurance companies, and
again this is where your insurance pro will come in.
They may recommend that you get a separate umbrella policy,
especially if you have a multiple amount of rentals or
ranch or something like that. But you want to again
make sure every asset that you own is covered under
as far as real estate is covered under that umbrella policy.
Speaker 2 (34:21):
Anything, guys that you want to add.
Speaker 4 (34:22):
To that, No, I just we were talking off air.
They're very wide reaching. So any of the things you
think that they wouldn't cover, they do.
Speaker 2 (34:31):
Share those stories about OJ and Bill Clinton.
Speaker 4 (34:34):
Well, yeah, I had an attorney time. It's a few
years ago. It blew my mind. But OJ Simpson his
legal defense when all that stuff happened, when he you know,
allegedly murdered his ex wife, that was covered by his
own homeowners police. His umbrella policy covered his defense. Bill
Clinton when he got sued civilly by for who knows
what he was doing, his umbrella policy kicks in and
covers his legal defense. So they are very, very wide reaching, very.
Speaker 2 (34:58):
Wide reaching are as. They are.
Speaker 3 (35:01):
All right, guys, let's go to since we're on the insurance,
I'll cover number four, the adequate homeowners coverage. I've emphasized
this one so many times, and it's I always like
to do it when we have you know, we're in
fire season here in northern Nevada. Make sure you have
adequate homeowners coverage. Revisit your coverage annually to reflect your
rising home values, hopefully especially with inflation, market appreciation, et cetera.
(35:26):
I remember, guys, as clear as like it was yesterday.
When I was doing this show. But it was on Saturdays,
years and years and years ago, and the fire and
South Lake Tahoe broke out and Myers and all that,
and I remember sitting here it was that day.
Speaker 2 (35:41):
And I'm looking to the smoke.
Speaker 3 (35:42):
My office was up on Kingsbury Grade and I'm looking
across the base and seeing the smoke over there. I'm like, folks, listen,
make sure you have enough coverage, right, because so many
people just they have coverage.
Speaker 2 (35:55):
They bought years ago and rarely do insurance.
Speaker 3 (35:59):
I mean, a good agent will call you each and
every year mind does and says, hey, we need to
sit down and go through everything. Let's see where everything is.
Most companies don't, especially the eight hundred number of companies.
And you may think you're insured for plenty of value,
and in reality you're not.
Speaker 2 (36:13):
Right, so very very important, So John.
Speaker 1 (36:16):
A quick question on that. Then, if going into buying
the house, you got your your you basically have guaranteed
replacement mm hm. Is that it's still wise to keep
doing a check up because that does I mean, I
get a little guarantee.
Speaker 3 (36:32):
I've seen those slip off, Dwight. I've seen those slip
off like when a policy renewal. I mean, come on,
let's be honest. Every year when your policy renewals, do
you read the fine print? Most people don't, And so
I've seen that where insurance companies will accidentally quote quote
remove that, or the agent does where it's not replacement,
it's market value. And again, you may be insured for
half a million, but your home's really worth a million,
and lord knows, if you go to rebuild it, it's
(36:53):
gonna cost you one and.
Speaker 2 (36:54):
A half million.
Speaker 3 (36:55):
And you're sure that's why so many people walked away
from their homes up in Tillo.
Speaker 2 (36:58):
When it happens everywhere everybody.
Speaker 4 (36:59):
Well, I think it's some important to mention too. We
were talking about alfair in Nevada starting this year will
be the only state that's going to allow insurance policies
that don't cover you for wildfires. Doesn't mean that every
policy won't do it, but Nevada is going to allow
it now. So make sure to get some great deal like, wow,
this policy is super cheap. There's probably a reason. Make
sure you know what you're covering for.
Speaker 2 (37:19):
Thank you Corey, Thank you Dwight.
Speaker 3 (37:21):
We'll continue this discussion on Thursday with the boys, have
a great afternoon. God bless we'll see tomorrow. The John
Sanchez Show.
Speaker 2 (37:31):
Dwight Millard n MLSID number two four one two five
nine a licensed mortgage loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender and MLSID number one three
four eight seven one.
Speaker 3 (37:43):
The information shared on this live broadcast is for general
information purposes only and does not constitute financial or mortgage advice.
Speaker 2 (37:50):
Listeners should consult directly with a license mortgage professional for
guidance tailored to their specific situation. All loans are subject
to credit approval and program guidelines. Not all applicants will qualify.
Loan terms and availability may vary by state and are
subject to change without notice. Highlands Residential Mortgage Limited is
licensed in multiple states.
Speaker 3 (38:09):
For a full list of state licenses and disclosures, please
visit https slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highlands Residential
Mortgage Limited.
Do I look okay, everything's good.
Speaker 2 (00:10):
Okay, good Tuesday afternoon to you.
Speaker 3 (00:14):
Welcome to the John Sanchez Show on News Talk seven
eighty k which it's a pole pleasure to be with
you and a pleasure to be with my co hosts.
Let's go around the horn, mister Corey Edge of Edge Really, Hey,
you doing big c.
Speaker 4 (00:24):
I'm doing fantastic, sir.
Speaker 2 (00:26):
How are you no complaints whatsoever? Hiland's mortgage? How are you?
Speaker 4 (00:30):
I'm doing fantastic, doing fantastic.
Speaker 2 (00:33):
Glad to hear it is the Fed your friend. We'll
see right.
Speaker 4 (00:37):
I don't know.
Speaker 1 (00:38):
I'm just I'm so over them right now. John, It's it's.
Speaker 2 (00:41):
Crazy, but I hear you.
Speaker 1 (00:45):
Are you Are you still a fan of Jerome Poward?
Speaker 4 (00:48):
Do you think he's missed a few? Yeah?
Speaker 2 (00:50):
I still am. I I think I think.
Speaker 3 (00:55):
I think at this point, to be honest with you,
it's almost like all of us felt our senior year
in high school.
Speaker 2 (01:00):
Right.
Speaker 3 (01:00):
We sat back and he's like, I know I'm going
to be out, Like in another month, Am I going
to really do anything to screw up and cause a
lot of volatility in our lives and stuff. I think
that's the way he's looking at it right now. It's like,
I'm going to pretty much give the street what they want.
And I, like we said when he had the the
press conference last week, Dwight, I honestly do not think
whatsoever that the FED is not going to give us
(01:22):
a cut in December. I think one hundred percent they
will no matter what he said. I think it's I
think it's absolutely.
Speaker 1 (01:28):
What's the probability that you're showing right now? I think
you were like you were like in the seventies.
Speaker 3 (01:32):
I thought before the mid low sixties, low sixties, sixties. Check, Yeah,
that's that's been. That's been a while on that one.
But yeah, nothing, I haven't seen anything recently. So we
will see, you know, we will see. But but the
bottom line is, you know it is what it is.
But tell you we we had one of those days today,
guys where you wake up and, like I warn everybody about,
(01:54):
and everybody all of a sudden just wakes up and
you know, everything was fine yesterday and you wake up
today and everyone's like, you know what, I'm really concerned
about valuations of the stock market, and specifically valuations of
of AI related names and so on and so forth.
And you know, we sold off on the news. So
(02:14):
this is this ongoing thing that we keep doing. Is
one day everyone just loves AI and the next areaone's going, boy,
things are getting a little crazy and the you know
the levels and Palanteer was the was the the real
culprit today is I'll you know, talk about you know,
there are Ford priced earnings ratios to two hundred times
what their stock is trading at.
Speaker 2 (02:33):
So again it goes back to oh geez, that sounds.
Speaker 3 (02:37):
Familiar back in the dot com era, right where you're
getting these crazy, crazy priced earnings ratios. We mean the
stock is expensive relative to its earnings and where the
stock is trading, and so on and so forth. And
then everybody all of a sudden wakes up and you know, Palenter,
you know, tanked almost eight percent today, but it brought
down then the videos and advanced micro devices and so
on and so forth, and so all it takes is
one company. But you know, yesterday, I'll tell you guys
(03:00):
and and folks, please go back and listen to the podcast.
Speaker 2 (03:03):
If you missed the show yesterday.
Speaker 3 (03:06):
You know the amount of money north of a trillion
dollars guys that open Aye, the parent of chat GPT
is on the hook for meaning deals that they have
struck with the likes of Oracle and so many other companies.
It was about one point three trillion dollars. Like Jason
and I were saying on the show yesterday, guess what,
you know, all it takes is someone to stumble, right,
one of the companies providing the chips and the GPUs.
(03:29):
All it takes is one of them to stumble or
chat GPT. The work comes out, Oh we weren't able
to make a payment to one of these companies, and
that whole house of cards begins to get very wobbly.
And so, like I said, it's all about the valuations.
What do you think about that, Corey?
Speaker 4 (03:42):
I totally agree with you. And it's very interesting if
you look, I'm sure you looked at how all these
things kind of stack up. Obviously, you've got Nvidia at
the bottom. None of this happens without Nvidia. Yes, you
know one day that it might change. But then you've
got the Microsofts and the other ones, and the open
AI is kind of somewhere and they're at the bottom,
but they're I thought I found it very interesting to
read how their business works with all this money that
(04:05):
they're semi allocating that they don't really have out to
these AI data centers. But then you know, the three
of us could start a uh some kind of tiny
little company and we can build it on their stack
real quick, and it can have you know, AI intelligence,
and we can create an app and we can have
it you know, on Apple the next day and build.
(04:26):
But there's no real I'm trying to think the right
way to put it. There's nothing behind it. There's no
real revenue behind Everything is run off of open AI
and all of these little deals. So as you mentioned,
one little hiccup down there at the bottom, and it
is just a house of cards that I'm not saying
it's going to happen, but that's how it's built right now.
Speaker 3 (04:44):
Yeah, because because AI is is obviously the driving force
to today's market activity, right and I say to I
mean this this year to date, if it wasn't for that, yeah,
we'd probably just be having kind of an average year
or maybe even you know, a lackluster year, maybe even
a negative year. Because as you look at it, the
country is pretty upset about the government shutdown, and you know,
some of the different things going on in Washington and
(05:06):
obviously tariffs and all the negative things. But yet you
got this Ai sitting out there as the outlier and
goes that's you know, that's the shiny object that we
want to go towards and find ourselves.
Speaker 1 (05:16):
So, John, you you've often referred to kind of as
dot com, do you still see it as like of
our time now what we're in dot com? So some
will survive, some will.
Speaker 3 (05:28):
Go absolutely absolutely yeah, and a lot of similarities. Like
I said a moment ago, valuations that's always a concern, right,
we all learned that, you know, inevitably a company has
to have the earnings to support its price level of
its stock right based upon valuations, and we don't.
Speaker 2 (05:45):
Have that with a lot of these names.
Speaker 3 (05:46):
Now you take the Navidia's, the Microsoft's, metas sure they've
got the earnings numbers, but you take some you know,
you go a few layers down the chain and you've
got a lot of companies that again open Ai, which
is you know, without open Ai, we wouldn't be having
this conversation whatsoever because they're the ones that are doing
the deals with everybody, right, and remember they're they're not
a publicly traded company.
Speaker 2 (06:07):
Are the revenues growing? Yes?
Speaker 3 (06:09):
But can they can they pay the bills? Can they
Can they have enough revenue eventually? The way they're growing,
The answer seems to be yes, but we don't know.
Like Corey just said, Dwight, it's all on paper right
now that you know, the growth will eventually or the
revenue will eventually catch up with the growth and so
on and so forth.
Speaker 2 (06:27):
But we just don't know.
Speaker 3 (06:28):
And you know, I get nervous when we have days
like this, right, and you kind of sit back and
you go, man, all it takes is again one of
these companies not to give a bad earnings warning or say,
hey we didn't get our payment from open Ai or
whatever the deal they struck with them.
Speaker 2 (06:41):
It's not going well.
Speaker 3 (06:43):
And then, like Cory said, the house of cards begins
to slip away on us here. So, yeah, a lot
of a lot of similarities to to dot com, a
lot of some alargies. And then you know, so that's
how we started. Right. We had Palunteary report really good
numbers after the close yesterday, and then that stock started
to come down, and then you saw that the other
(07:03):
semiconductor names you begin to falter and then we had
the CEOs of Morgan Stanley and Goldman Sachs at a
conference and I believe is in Hong Kong, both of
them saying, you know, over the next hold to twenty
four months, they're predicting anywhere between attend to twenty percent
market correction, right because of the valuations I just mentioned.
So those kind of things don't help the market whatsoever
(07:23):
when you get major Wall Street firms calling for correction
at some point. So, but again, twelve months to twenty
four months, I.
Speaker 4 (07:29):
Mean a lifetime can make that.
Speaker 3 (07:31):
Yeah, it's a lifetime exactly. So yeah, it was just
kind of one of those days. But I'll go through
some of the details, but let me tell you what
we really have lined up after the stock market recap
for you so really excited about this topic. You all
know in Corey Dwight absolutely know it is very, very important.
Speaker 2 (07:49):
That we understand the aspects of building wealth. Right.
Speaker 3 (07:52):
We work hard, we save, we invest, we do all
the things that are supposed to do and before you
know what, you wake up and you got a pretty
nice personal balance sheet. But there is just not enough
attention given to protecting that personal balance sheet. Asset protection
is what I'm talking about. But we're going to focus,
of course on asset protection for the real estate side
of things.
Speaker 2 (08:12):
Today we have home values that are up.
Speaker 3 (08:14):
But also as home values go up, I guess what
so are the risk Right, So today what we're gonna
do is we're going to break down how to protect
the equity in your primary home and also time permitting,
how to protect the equity in your investment properties. If
we can't get to the investment property side, we'll kick
that forward till Thursday's show. But we're going to talk
(08:35):
about legal shields, financial strategies, etc. Personal residents, and again
on the investment side, because right Corey, there are a
few overlaps as far as the strategies that you and
I put together on this list. There are some strategies
that overlap, but there are some that are very unique
to the investment side of the house.
Speaker 4 (08:53):
There's some that are unique to the investment side, and
there's some that are unique and very powerful to the
owner occupy side, the primary residence side, which we'll get into.
And I don't know the last time we've talked about this,
if ever, but number one on the list, I won't
give it away but that's a huge one, and it is.
I find people don't ask me about it till it's
really never too late, but until they have a problem
(09:14):
where they have to address it. And you know, same
with attorneys I talk to, like, it's always the thing
people don't think about until they need it.
Speaker 3 (09:22):
Well, I'll just left to get out of the bag
for you. I appreciate you holding that back, but we're
talking to homestead exemption. Absolutely, we have one of the
most liberal ones here in the state of Nevada.
Speaker 2 (09:29):
Yea. But to your point you mentioned about attorneys.
Speaker 3 (09:32):
I've had attorneys as clients that haven't done it sure
in their own home, so you know, but you're right,
very few people know about these I've been an advocate
for them for so long. I mean, what does it
cost Cory twenty or what is it? I think it's
down to fifteen bucks or something.
Speaker 4 (09:47):
Now. Yeah, the recording fees on up a couple of
years ago. I don't know honestly exactly, but it's under
thirty dollars.
Speaker 2 (09:54):
Under thirty dollars.
Speaker 3 (09:54):
Yeah, So as you'll learn, with our first strategy of
asset protection for your primary home for under thirty dollars,
you can protect the equity in your home up to
a certain limit that will go through just by filing
a form.
Speaker 2 (10:06):
I mean, it's really that simple.
Speaker 3 (10:07):
And so that's what we're going to be discussing, because again,
the last thing we want to have happen is you
lose your life's work because of a frivolous lawsuit. Or
maybe it was a legitimate lawsuit. But Corey, real quick,
before we go to break. You deal a lot with attorneys.
You know the legal system as well as anybody. I
always tell the audience, and I always tell my clients
the first thing when you are involved in a lawsuit,
(10:29):
the first thing the planet's attorney, if you're the defendant,
the first thing the planet's attorney is going to do is.
Speaker 2 (10:33):
They're going to try to find out all of your
what insurance and what else? Equity, equity in assets law, Yeah, yeah, yeah, exactly.
You got to disclose those. You got to disclose those.
Speaker 4 (10:45):
You got to disclose them by a lot. And the
insurance too, we'll get into you have to disclose. I
was dealing with one of these unfortunately not that long ago,
for a client of mine, and they thought, well, nobody
knows this policy. You legally have to disclose that. If
it's there, you have to tell them that that's right.
Speaker 3 (11:01):
I've all all shared the story of a very dear
friend of mine who retired and wrote his financial plan
for his years in retirement, and that was on the
list as we always put for our clients to get
the homestead exemption done. Thank god he did, because about
a week later, one of his children got involved in
a car accident and the car was registered in my
client's name because the son was a it was a
(11:23):
miner at that point. And when he got served in
that paperwork, when he called me when he got served,
need a list of all of your assets. And thank
goodness that we did the homestead exemption and another strategy
that we talked about, and before we knew it, lawsuit
went away. Insurance companies settled and he obviously kept his
entire estate in play, but he could have been wiped up.
(11:44):
I mean, can you guys imagine you work your whole
life to retire, you built everything up, and then one
simple lawsuit and it's done, and it's done. So it's
this is the real life stuff, folks. It really happens,
all right. So we'll come back do a brief stock
market recap, and then we'll get into our strategies again.
Protect what you have built. It is how we've titled
today's show. Let's turn it over to Christens Now she's
in the right now traffic center. Kristen, Welcome back to
(12:09):
the John Sanchez Show on Newstalk seven eighty K which
with Dwight Mallard of Highlands Mortgage Cory Edge of his reality.
All right, here's how we finished up for the day,
a two fifty one decline on the dow point five
to three percent to a close of forty seven thousand
and eighty five. Now's that down four hundred and eighty
eight points two point zero four percent, and the SMP
gave up eighty points or one.
Speaker 2 (12:26):
Point one seven percent.
Speaker 3 (12:28):
On the commodity side, oil forty two cent pullback sixty
to fifty eight a barrel goal down fifty two dollars
and twenty cents to a close of three thousand, nine
hundred and sixty one dollars and sixty cents an ounce,
and mister Millard just a two basis point decline on
the ten year treasury yield, brewinging that yield for the
day to a level of four point zero nine percent,
how do we do on the mortgage sete?
Speaker 1 (12:49):
So it's just been a big old yawn, John. We
were at six point three to three, that's what we
were last week.
Speaker 2 (12:54):
Yeah, so we haven't moved much.
Speaker 1 (12:56):
I mean, the fifteen years looking nice at five point
eight and then you're a governments, you know, are just
slightly above six percent. So I mean, we were clearly
back into the fives. But we're gonna have to wait now.
Speaker 3 (13:08):
And it's like this bond market just can't make any
moves without any economic reports.
Speaker 2 (13:12):
Have you noticed how stagnant?
Speaker 1 (13:14):
Isn't that that is strange?
Speaker 2 (13:16):
Yeah, it really is, it really is.
Speaker 3 (13:18):
I was wondering how many bond traders even go to work,
you know, sitting. And for those of you that have
not been following the government shut down, here's a little
stat for you. Today ties the longest time the government
has been shut down. So obviously tomorrow will be a
brand new one. I will tell you. I wrote down
this gentleman's name. His name is Mark Wayne Mullen. He's
(13:40):
a senator out of Oklahoma, and he was on CNBC.
I don't know if you saw this, Core. He was
on CNBC this morning, and he made a very bold call.
He said the government will reopen by this Friday. And
the host on CNBC said, well, what do you know
that we don't know?
Speaker 2 (13:54):
He goes, there's just.
Speaker 3 (13:55):
A lot of chatter going on that among his Democratic friends,
as he called them at after today's election in New York,
that a deal will get down here the next couple
of days and the government will reopen on Friday. So
that's mister Mullen's prediction. Then we don't asked him twice.
Speaker 4 (14:12):
We don't know who's caving, We don't know under what circumstance.
Speaker 3 (14:15):
Well, you know how these go, Corey, that neither side
will cave. They'll say, oh, we got our part, they
got their part, and we all you know, came together
for you know, we shut down for no reason.
Speaker 2 (14:25):
Bottom that's why it's going.
Speaker 4 (14:26):
To be well, I will tell you, and I shared
with the affair last week, and without getting into all
the details, I had no like you hear the snippets
of what the Democrats are arguing over, and the healthcare
and this and that, my healthcare premiums. I got to notice.
I cried at the perfect time last week. One hundred
percent increase for the exact same plan starting in January
for no exactly, for no reason. I mean, John, it's
(14:49):
over three thousand dollars a month for a family of
five for a self employed guy. Like, how crazy is
that to think about? And we don't go to the
doctor right now? It's nuts.
Speaker 2 (15:00):
Yeah.
Speaker 1 (15:00):
Well, remember Corey, there was some chatter remember a couple
years ago about having to add that into a SUN
employment debt to income ratio. Can you imagine what that
would do to a lot of.
Speaker 2 (15:13):
M mortgas pain right right?
Speaker 4 (15:14):
Yeah, oh yeah exactly. I mean it's it's nuts. But yeah,
so not that I you know, I think the whole
thing is a bunch of bs. But somebody does need
to get this healthcare system under control because it's just
it's just wacked.
Speaker 2 (15:27):
Crazy numbers, crazy numbers.
Speaker 3 (15:29):
All right, just a couple more things, Like I said,
today was a bit of a week day across the bord,
as you heard me say mentioned a minute ago when
came back from break. So Valenteer was again the driving
force again. Good earnings report after the close yesterday, but
report itself just not real strong as far as you
know going forward. Just market evaluation, market evaluation, market evaluation,
(15:52):
So Palenteer on the day down sixteen dollars and forty
five cents seven point ninety four percent lost. In one
ninety seventy three, the video gave up eight dollars and
nineteen cents point ninety six percent, closing it one ninety
eight sixty nine. Advanced micro Devices down nine dollars and
sixty cents a three point seven percent, Tesla down five
point one twenty four dollars and eleven cent loss to
four forty four to twenty six Corey. Have you have
(16:13):
you noticed how many pension funds and things are coming
out and saying they're voting against Elon musk one?
Speaker 4 (16:20):
I have. I haven't read all the articles, but the
headlines have been a lot of big have you whoever
has a lot of votes?
Speaker 3 (16:26):
Yeah, yep, yep, they're voting against it, and that vote
should be coming here in the next couple of days.
Speaker 4 (16:30):
But didn't he say if he doesn't get the vote,
he's out of here.
Speaker 2 (16:33):
Yeah?
Speaker 3 (16:34):
He did, But you know, I made the comment on
the show that the day that he made that, I'm like,
you know, folks, it's like it's like when China said
we're gonna dump all of our bonds that we own
of the US and I said, let's stop and think
about this. It's like shooting yourself in your own foot. Sure,
and so I'll use it with Elon Musk, right. Obviously,
(16:56):
his other companies are very you know, very valuable.
Speaker 2 (17:01):
They're not publicly traded. Tesla is. But he's borrowed.
Speaker 3 (17:04):
I mean, I don't know the exact amount, but it's
in the billions of dollars from what I've seen in
the past of what he's borrowed against his Tesla's shares
right to fund by buying Twitter, which is now X
and so and so.
Speaker 2 (17:16):
I mean, that's that's his net worth. So what do
you think what happened to the stock?
Speaker 3 (17:20):
If he goes, oh, you guys didn't give me my
pay package, I'm resigning, right, Tesla's all years I'm resigning.
He'd be bankrupt.
Speaker 2 (17:28):
So he's not gonna go anywhere. He's too invested.
Speaker 3 (17:31):
No matter, it's just a threat like negotiation, I guess
you can say, but I don't. I absolutely do not
think that that that's gonna happen whatsoever on.
Speaker 2 (17:40):
That side of it.
Speaker 3 (17:41):
So all right, guys, well, let's get a couple of
minute jump start on our topic today, which again as
we set at the open and we're gonna be talking
about protect what you have built, meaning the equity in
your primary home and the equity in your rental real estate.
So we're gonna start today on the equity in your
primary home. So, mister Edge, here we go. You and
I let the get out of the bag. As the
saying goes, the homestead exemption. Use your state's homestead exemption
(18:05):
to legally protect a significant portion of the equity in
your primary home.
Speaker 2 (18:11):
How much is that equity in state of Nevada?
Speaker 4 (18:13):
Now six hundred and five thousand dollars?
Speaker 2 (18:16):
You go.
Speaker 3 (18:16):
I remember when I started talking about it was like
a couple hundred thousand years ago. Looks this is one
of the easiest, easiest things that you can do. And
Corey will walk you through the steps here in a moment.
To protect the equity in your primary home from creditors.
Does not protect you against the irs, but it protects
you against creditors. So Corey, always, when I'm describing this
(18:38):
to a client, I always like to give an example.
Let's say you've got five hundred thousand dollars of equity
in your home and you get sued. First thing the
attorney's going to do besides say, okay, give me a
list of all your assets, they're going to do a
title search. So they're going to see do you have
a homestead exemption on your home. Let's say you've got
six hundred Actually, let me change it. Let's say you've
got six hundred thousand dollars worth of equity. They're not
going to go after your home and even or no,
(19:01):
let me phrase it. Let's say you've got seven hundred
thousand dollars with evacuity, but you got you're protected. You
filed your homestead exemption, and you got six hundred and
five thousand that's protected out of the seven hundred thousand.
They're not going to mess with it. It's not worth
their time. So right then and there by, filing the
fee with the county recorder. It's a very very simple form.
We have them in our office. If you need one,
to contact my office, or you can go to the
(19:22):
Washoll County Recorder or whatever county that you're in, go
to the recorder's website. Almost all of them have them
on their website. You fill out the form, you submit it,
you pay the fee and Corey take it from there.
Speaker 2 (19:32):
How does it go on the deed?
Speaker 4 (19:34):
So it won't go on the deed, It'll be a
recorded document that is basically recorded after your deed. So
your deed is going to say who owns the property,
how they hold title. This is going to be a
recorded document, you know, further back, further down in time
that says you are hereby declaring it as your homestead
exemption and you have to have to verify under penalty
of perjury. I think that it's your primary residence, who
(19:57):
lives there has to be notarized and record it, and
again that it used to be a per page recording
number or a dollar amount, and now I think there's
a package that's like under thirty bucks. And I don't know, John,
I should know. They used to not notarize stuff for you.
In the Recorder's office in the county complex, they have notaries.
(20:17):
I don't know if that's changed or not, but I
always tell people, Hey, if you go down there with
that already notarized, you're going to be in better shape
than not. But they will help you. The people at
the washer Kennon Recorders office are incredible, incredibly helpful. So
if you go down there and have no idea, they
will They won't give you legal advice, but they will
help you if you tell them what you're trying to do,
(20:37):
they will help you get through the process.
Speaker 2 (20:39):
That's right, that's right, John.
Speaker 1 (20:41):
I want to add to that too, at least you know,
and this is experience, you know, in the state of Texas,
a homestead actually gives you a little benefit on your
property taxes. So you get a little yeah, so you've
got the protection, plus you get a little bit of
a It's nothing huge, but it's something they've given you back.
Speaker 2 (20:55):
So and we should mention that you make sure Texas
to white.
Speaker 3 (20:58):
We should mention that for those of you that during
California and other states.
Speaker 2 (21:02):
It varies from state to state.
Speaker 3 (21:05):
So you know, we're telling you what it isnt to
that of the six hundred and five thousand.
Speaker 2 (21:09):
What is it in Texas to ight, I don't know.
Speaker 1 (21:11):
I'd have to look it up, but it's it's so
encouraged here. It's it's it's amazing, you know, because and
I think that's why they give that little bit of
a property tax relief for filing the homestead.
Speaker 3 (21:24):
And then a little speaking of real life stuff that
we'll mention before we go to break.
Speaker 2 (21:29):
Is this.
Speaker 3 (21:31):
So let's say you buy your home in twenty twenty five. Okay,
and you're smart you and don't fall for one of
these services by the way that say, oh, we'll file
the homestead exemption for it, Corey shaking his head, Yeah,
for you know, one hundred and eighty two hundred bucks
or whatever it is.
Speaker 2 (21:43):
And you don't need that.
Speaker 3 (21:45):
So you buy the hell home in twenty twenty five,
you file the homestead exemption again, up to six hundred
and five thousand equities protected from creditor.
Speaker 2 (21:51):
Beautiful simple.
Speaker 3 (21:52):
But let's say a couple of years ago, Biden, you
call it Dwight and go, hey, my house is now
worth you know, I bought it for six It's not
worth whatever eight hundred thousand.
Speaker 2 (21:59):
I want to reef an in.
Speaker 3 (22:01):
Dwight and Corey, what happens to that homestead exemption when
you refinance?
Speaker 4 (22:05):
They're going to put a new deed of trust on there,
So you may have to refile after the deed of
trust is put on the new the updated date of trust.
Speaker 3 (22:14):
Right, if you ever refinance, make sure that you tell
your your scrow officer, et cetera. Or look on the
county recorders website if that, if that homestead remained or
to Corey's point, you may have to file a new one.
Speaker 1 (22:29):
And I'm pretty certain it comes off right, Corey, I'm almost.
Speaker 3 (22:32):
I've never seen Yeah, I was gonna say I've never
I don't want to go against you, but I've never
seen where it did not come off.
Speaker 4 (22:37):
Yeah. So that is and people have to kind of
realize when you get a county recorder and you look
at the documents, the documents never disappear, that will be
there forever. So it goes first in time, first in line,
first in time, whatever the saying is. So you have
to look at that deed of trust. The other thing too,
John is and I'm not I should know this, but
(22:57):
when you record a living trust, if you go from
Joe Bob to Joe Bob living trust, and you want
to ask that attorney to make sure do I need
the homestead and did the one I filed prior to
this get it doesn't get expunged? But do I need
to file an updated one since now I've retitled my
property and when we get back from break. There's a
few other important things on homestead, So we should probably
(23:18):
stick to it because it's there's a lot of stuff
people don't realize.
Speaker 3 (23:21):
Beautiful love it all right, we're talking about how to
protect the equity in your primary home as our first
topic turned over to Jack Sabin, News, Traffic and weather.
Jem Welcome back to the John Sanchez Show on New
Talk seven eighty k O, which with Dwight Mallard of
Highlands Mortgage Creatividuality. Once again, we finished down two fifty
one on the DALL last four eighty six on the NASDAK,
and eighty point decline on the S ANDP. You know,
(23:43):
we're just getting into our discussion of protecting the equity
in your home. But earlier in the show, we were
talking about this volatility we experienced today and some of
the reasons we were just chatting off air. One thing
I was going to throw in Corey and I forgot
or you know, to both of your points, and that
is tomorrow the Supreme Court.
Speaker 4 (24:01):
Meets Oh on the terraffs. That's a big one.
Speaker 2 (24:05):
That's a real big one. Yeah, exactly.
Speaker 3 (24:09):
And so they're saying probably will take a couple of
weeks before they issue decision, but that's going to weigh
on the markets.
Speaker 4 (24:17):
I wonder if that is going to be live, because
you don't they can always tell. I don't know if
you've ever watched them, but a lot of the pundits
you can always tell by the questions they're asking kind
of how they're leaning. Not that it's the decision, but
you can get a sense of what they're thinking. So, yeah,
that'll be that's interesting for I didn't know that was tomorrow.
Speaker 2 (24:35):
Yeah, it's a big one.
Speaker 3 (24:36):
All right, let's get back to our asset protection strategies
for our primary home. I guarantee we're not going to
get to our rental property once. We'll continue that on Thursday.
But core you said you had a few more points
you want to mention on the homestead once again, Folks,
in the state of Nevadi, you'll protect up to six
hundred and five thousand the equity in your primary home.
I remember it's only primary home. Follow the forum cost
you a few bucks to do it. Your equity is
(24:57):
protected other than from the irs.
Speaker 2 (24:59):
And whether.
Speaker 3 (25:02):
I think will you won't protect you if I remember, right, Corey,
it doesn't protect you on other type of leans and
things like that, right, So.
Speaker 4 (25:10):
That's why I was just gonna mention everybody. It protects
you from unsecured debts. So if you have a mortgage
or anything that you put on the house, it does
not protect you against that. Clearly, the mortgage holder's still there.
Nobody gets protected from the irs. They take whatever they
want regardless of what you have. But unsecured debt, as
you mentioned, car accident lawsuits, civil lawsuits, credit card debt,
(25:31):
those kind of things. It stops them from coming in
and taking their equity to settle it. The other thing,
and again always consult with your attorney, is if let's
say that something happened and tomorrow you get served with
the lawsuit, don't panic as in, wow, it's too late
to file it. I believe, check with your attorney. You
have up until the time that the judgment is entered,
(25:51):
so you have some time to file. A good attorney
is going to tell you to go file it right
away anyway, but you're not too late to do it.
The other thing, and I've had this, I've seen as
up in a couple of times. It's kind of rare.
We're not really rare. We'll get into it a little
bit down the road, but in your example, if you
have seven hundred thousand inequity and you have six oh
five that is protected. Sometimes if you get the judgment
(26:13):
against you, they will force a sell of that house.
You get to keep a six hundred five thousand dollars check,
but they get to keep the balance. So there is
some strategy into how much debt you have to lower?
Speaker 2 (26:27):
Correct exactly?
Speaker 3 (26:28):
Yeah, you're right, all right, Well let's go to the
second one. Not to that point, but Corey, let's talk
about in Dwight. Let's talk about the proper titling. Right,
what's the best way to hold your the title of
your home? Joint tenants, community property, living trust, so on
and so forth.
Speaker 4 (26:43):
Yeah, and this will be up to not everybody needs
to go see attorney to do this. Most people I've
met will always hold joint tendancy with the writer survivorship
if you have a spouse. I've been told by tax
attorneys in Nevada it's better to hold a community property
with the writer survivorship for tax reasons in case somebody
passes away. And kind of how the step up works,
(27:03):
I would I would ask an accountant or an attorney
that question. But ideally you're going to have a living trust,
and that's where it should be titled. So if you
already have a trust, then you're probably titled the correct
way to begin with. And I wouldn't worry about the
other two.
Speaker 2 (27:19):
Do anything you want to add to that. Do what
you get yourself. Muted, Corey.
Speaker 1 (27:23):
Can somebody hold title in a foundation?
Speaker 4 (27:28):
I'm sure, well you can kind of hold title anyway
you want, but I don't know if it'd be beneficial
in your primary residence.
Speaker 1 (27:35):
I mean, I'm just saying, I don't you know, I'm
starting to see this, I mean in just different things.
Speaker 4 (27:40):
I'm reading this whole thing.
Speaker 1 (27:41):
John, Are you seeing the people creating foundations for tax purposes?
Speaker 4 (27:46):
I don't know.
Speaker 1 (27:47):
Maybe it's yeah, yeah, yeah an anytime, yeah, an foundations.
Speaker 4 (27:55):
Anytime you see some scheme to not pay the I
R S. I would run from it. You're better off
just paying the airs, the everything with that too. And
I've helped out with attorneys that get into this. People
set up these schemes and they've got this partner, this
and that. Then they die and then they can't unwind it,
and then you've got to go to court just to
figure out, well, who does have the right to say, so,
(28:16):
don't complicate what's this thing at all?
Speaker 3 (28:20):
All right, I'll handle the next points guys three and
four of the insurance side of things. So as we
tell our clients, and these guys tell their clients too,
forget about everything else other than your homestead EXEMPTIONU. We're
going to tell you this is by far the best
asset protection strategy, and this will apply. We'll talk about
it on Thursday when we talk about the rental. That
(28:41):
you can do not only for your home, but just
your personal life and your personal assets, and that is
obtain an umbrella liability insurance policy.
Speaker 2 (28:50):
Now what is that? Well, just visualize.
Speaker 3 (28:52):
An umbrella is designed to keep the rain off of you,
and umbrella insurance policies designed to keep all of your
life protected from lawsuits. So an umbrella policy, in real
simple terms, provides excess liability protection above and beyond your
auto and your home policy.
Speaker 2 (29:09):
Okay, so first.
Speaker 3 (29:11):
Fundamental thing, you buy it in one million dollar increments, folks,
it's dirt cheap. Three four five hundred bucks per million
is typically what I see with clients. Generally, you have
to be with the same insurance company to that insurance
that insures your auto, they will be the ones that
issue the umbrella if you qualify for it. Okay, so
keep that in mind. You got to combine kind of everything.
(29:33):
But how does it help in real life? So here's
the example I always tell our clients. Let's say you're
driving down the road, God forbid, you get into a
car accident and it's your fault. Right, you crash into
a car, it burst into flames, it had a family
in there. Well you know dog one. Well, that family's
estate is going to sue you. So let's say you're
insured currently just a normal insurance policy by XYZ insurance company. Well,
(29:55):
let's say it's a million dollar lawsuit. Most people have
three hundred thousand dollars liability in their normal insurance policy
on their car. So you're at fault. Yeah, maybe you
how to blow out whatever the case is. And you know,
the accident is deemed your fault. So the planeff's attorney
is going to come after you. Your insurance company, XYZ
is going to write a check for three hundred thousand.
But wait a minute, John, you said the liability or
(30:17):
the lawsuits for a million dollars, what about that other
one hundred and seven thousand. Guess what once that insurance
company writes the check, there's no legal representation.
Speaker 2 (30:25):
They're not going to do anything.
Speaker 3 (30:25):
You've now got to pay to go defend yourself against
that additional seven hundred thousand. Okay, then you've got to
come up with the assets if you lose the court
or lose the lawsuit.
Speaker 2 (30:37):
Disaster.
Speaker 3 (30:37):
It's where most people file for bankruptcy have an umbrella policy.
Completely different. So the first thing that people don't know
Corey and Dwight is this. When you have an umbrella
policy through XYZ insurance company, again, you buy it and
you can only buy it in a million dollars increments.
Is there the insurance company is going to provide the
(30:59):
legal parteent and representation for you at no cost.
Speaker 2 (31:03):
Now why real simple.
Speaker 3 (31:05):
They're on the hook for a million two whatever the
value of your umbrella policy is. So you're getting free
legal representation if you lose that lawsuit, and they're going
to be again the ones defending you if you lose
that lawsuit. Guess what they're going to be the ones
that write to check in this example for the million dollars,
the playoff's attorney most likely is not going to come
(31:25):
after you. Let's say it was a two million dollar lawsuit,
but you are let's say a million and a half lawsuit,
They're probably not going to come after you for that
other five hundred thousand. You know, our dear friend Jamie Colik,
you guys, the rest in peace, Jamie. But you know
he remember he used to always tell us, is like
first thing a planets attorney does.
Speaker 2 (31:42):
They decide do an asset check.
Speaker 3 (31:43):
They're gonna see if you have a umbrella interns if
you are, they call that the low hanging fruit that
they're going to go after and kind of leave leave
you alone after that, Right, they can settle real quickly
on that they don't want to go after and try to,
you know, take everything else away from me. In most
cases there's exemptions. But that's what an umbrella polsy does.
But last thing I'll mention is it also so that
(32:04):
was an auto exam example, but it also protects you
for what I call crazy life events. Okay, we all
remember the Sunny Bono story, right, skiing down in Heavenly
crashes into somebody, goes into a tree and he dies. Right,
what if you were that person that pushed Sunny bono
into that pine tree that killed him. Your auto's not
gonna protect you, your home's not gonna protect you. Umbrella
(32:24):
would still literally anything other than intentionally killing somebody or
getting drunk and killing somebody, your umbrella insurance is going
to cover you. So another example I give. Let's say
you're being a real nice guy. You go to a casino.
You open the door for that little elderly lady. The
wind comes, the door slams closed, she crashes into the door,
falls to the ground, conkers her head, and she dies. Well,
(32:46):
probably the casino is gonna get sued, but you are too.
Auto and home's not going to cover you. But that's
where umbrella. So again it covers you, and hence where
the term umbrella comes from. It covers you for areas
above and beyond your auto and your home policy. Again,
I could go on and on and on. Contact your
insurance agent. Most of them will never offer it to
you because they don't make a lot of money commission
wise on it, which is a shame. But you go
(33:08):
to them and tell them you want it. And again,
based upon the size of your state, what liability risk
you have, tell them you.
Speaker 2 (33:13):
Want an umbrella policy. And get it.
Speaker 3 (33:16):
I can't emphasize it enough. So a couple look and
take this break and I'm so late dog on it.
All right, let's wrap it up with Christa snow right
now traffic center.
Speaker 2 (33:24):
Chris did.
Speaker 3 (33:28):
Welcome back to the John Sanchez Show on Newstalk seven
to eighty K. Wait's mister Malard, your phone number.
Speaker 1 (33:32):
Serve absolutely seven seven five two four zero two zero
two two.
Speaker 2 (33:36):
Thank you, Astray.
Speaker 4 (33:37):
Edge six seven three six seven zero zero.
Speaker 3 (33:40):
Thank you boys to appreciate it all right. Umbrella insurance
final point. I want to mention for those of you
that have investment real estate, talk to your insurance agent
and make sure that you get a writer on your
umbrella insurance policy that you own personally on your investment property.
(34:00):
Not expensive to do. I know some insurance companies, and
again this is where your insurance pro will come in.
They may recommend that you get a separate umbrella policy,
especially if you have a multiple amount of rentals or
ranch or something like that. But you want to again
make sure every asset that you own is covered under
as far as real estate is covered under that umbrella policy.
Speaker 2 (34:21):
Anything, guys that you want to add.
Speaker 4 (34:22):
To that, No, I just we were talking off air.
They're very wide reaching. So any of the things you
think that they wouldn't cover, they do.
Speaker 2 (34:31):
Share those stories about OJ and Bill Clinton.
Speaker 4 (34:34):
Well, yeah, I had an attorney time. It's a few
years ago. It blew my mind. But OJ Simpson his
legal defense when all that stuff happened, when he you know,
allegedly murdered his ex wife, that was covered by his
own homeowners police. His umbrella policy covered his defense. Bill
Clinton when he got sued civilly by for who knows
what he was doing, his umbrella policy kicks in and
covers his legal defense. So they are very, very wide reaching, very.
Speaker 2 (34:58):
Wide reaching are as. They are.
Speaker 3 (35:01):
All right, guys, let's go to since we're on the insurance,
I'll cover number four, the adequate homeowners coverage. I've emphasized
this one so many times, and it's I always like
to do it when we have you know, we're in
fire season here in northern Nevada. Make sure you have
adequate homeowners coverage. Revisit your coverage annually to reflect your
rising home values, hopefully especially with inflation, market appreciation, et cetera.
(35:26):
I remember, guys, as clear as like it was yesterday.
When I was doing this show. But it was on Saturdays,
years and years and years ago, and the fire and
South Lake Tahoe broke out and Myers and all that,
and I remember sitting here it was that day.
Speaker 2 (35:41):
And I'm looking to the smoke.
Speaker 3 (35:42):
My office was up on Kingsbury Grade and I'm looking
across the base and seeing the smoke over there. I'm like, folks, listen,
make sure you have enough coverage, right, because so many
people just they have coverage.
Speaker 2 (35:55):
They bought years ago and rarely do insurance.
Speaker 3 (35:59):
I mean, a good agent will call you each and
every year mind does and says, hey, we need to
sit down and go through everything. Let's see where everything is.
Most companies don't, especially the eight hundred number of companies.
And you may think you're insured for plenty of value,
and in reality you're not.
Speaker 2 (36:13):
Right, so very very important, So John.
Speaker 1 (36:16):
A quick question on that. Then, if going into buying
the house, you got your your you basically have guaranteed
replacement mm hm. Is that it's still wise to keep
doing a check up because that does I mean, I
get a little guarantee.
Speaker 3 (36:32):
I've seen those slip off, Dwight. I've seen those slip
off like when a policy renewal. I mean, come on,
let's be honest. Every year when your policy renewals, do
you read the fine print? Most people don't, And so
I've seen that where insurance companies will accidentally quote quote
remove that, or the agent does where it's not replacement,
it's market value. And again, you may be insured for
half a million, but your home's really worth a million,
and lord knows, if you go to rebuild it, it's
(36:53):
gonna cost you one and.
Speaker 2 (36:54):
A half million.
Speaker 3 (36:55):
And you're sure that's why so many people walked away
from their homes up in Tillo.
Speaker 2 (36:58):
When it happens everywhere everybody.
Speaker 4 (36:59):
Well, I think it's some important to mention too. We
were talking about alfair in Nevada starting this year will
be the only state that's going to allow insurance policies
that don't cover you for wildfires. Doesn't mean that every
policy won't do it, but Nevada is going to allow
it now. So make sure to get some great deal like, wow,
this policy is super cheap. There's probably a reason. Make
sure you know what you're covering for.
Speaker 2 (37:19):
Thank you Corey, Thank you Dwight.
Speaker 3 (37:21):
We'll continue this discussion on Thursday with the boys, have
a great afternoon. God bless we'll see tomorrow. The John
Sanchez Show.
Speaker 2 (37:31):
Dwight Millard n MLSID number two four one two five
nine a licensed mortgage loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender and MLSID number one three
four eight seven one.
Speaker 3 (37:43):
The information shared on this live broadcast is for general
information purposes only and does not constitute financial or mortgage advice.
Speaker 2 (37:50):
Listeners should consult directly with a license mortgage professional for
guidance tailored to their specific situation. All loans are subject
to credit approval and program guidelines. Not all applicants will qualify.
Loan terms and availability may vary by state and are
subject to change without notice. Highlands Residential Mortgage Limited is
licensed in multiple states.
Speaker 3 (38:09):
For a full list of state licenses and disclosures, please
visit https slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highlands Residential
Mortgage Limited.
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