On October 25, 2017 Rod joined Jordan Beal, President of Beal Real Estate, and The American Dream TV Show Host Craig Sewing to discuss the state of the San Diego real estate market and cover the importance of having an estate plan.
Click here to watch the Cox Channel 4 San Diego segment.
With Rod calling it like it is, “I tell clients if you don’t have a plan in place, the State of California has one for you. It’s called probate.” We are pleased to provide the transcript of the interview.
Craig Sewing: Welcome to another episode of the American Dream. I’m your host Craig Sewing. This is the only show of its kind going against the grain of negative media. Got a great show lined up for you today. Every single day, you’re consumed with information. With a 24/7 negative news cycle and a pop culture that’s polluting the airways, to all selling out the ratings game, well guess what, there’s a more positive way to look at life. You live in the greatest city in the greatest country on the planet. Every day with our elite network of professionals, our goal is to educate, empower and engage and now it’s time to fight for your American dream. The American Dream is ours collectively and we’d love to hear from you. Follow us online at americandreamnetwork.tv.
Now we’re going to dive into the real estate market and estate planning. Joining us on the show now, award winning realtor Jordan Beal from Beal Real Estate and Rod Hatley from Hatley Law Group Estate Planning. Jordan, good to have you on the show.
Jordan Beal: Great to be here Craig, thanks.
Craig Sewing: We’re also going to talk a little bit more about how real estate expands into the other side of finance. I look at you guys as like the hub of the wheel. But then there’s the mortgage and tax plan, the estate plan, the financial plan. Rod Hatley, good to have you on the show again, our legal expert, to talk a little bit about the estate planning today.
Rod Hatley: Pleasure to be here, thank you.
Craig Sewing: How is the real estate market?
Jordan Beal: Booming. We have not slowed down. Low interest rates, it’s low demand. High demand and low supplies. We don’t see any correction anytime soon especially in the North County.
Craig Sewing: What do you expect to see?
Jordan Beal: You know, people usually see a slowdown, but December has been my biggest month three years in a row. We see a slight decline in prices, price correction. So, we get a little nervous after the school year. But for our buyers, that’s when we kind of sweep things up and then you’ll see it come picking up again in January.
Craig Sewing: If we’re here next year, how do you think we’ll be talking?
Jordan Beal: You know, no one has got a crystal ball. I can see 12 to 24 months out. And we’re not going anywhere.
Craig Sewing: Think we’re doing all right?
Jordan Beal: Yeah, we’ll be just fine.
Craig Sewing: So talk to me about the importance of having an estate plan. You and Rod kind of make a one- two-punch on that side of the business. It’s so important when we talk about real estate and realtors — you don’t just want a realtor, you want a resource — Rod is an extension of you. How important is it to connect with him in the estate plan?
Jordan Beal: I mean it’s incredibly important, right. You know, as a realtor, you’re not just helping someone buy and sell a home, but you are kind of planning their life. So, it’s really important for me to have resources like Rod, situations come up where we have multi-generational clients. We’re passing something along and want to make sure that that’s done correctly. Having a background myself as an in-house attorney, I’m kind of a jack-of-all-trades. You need to know when to call in the specialists and the estate planning and tax planning is a specialty. Whether it’s an investment property that someone needs protection from or a rental property or a commercial property, you need to make sure that you’re planning correct and that’s where guys like Rod come in.
Craig Sewing: It seems to me Rod, that a lot of people just don’t get their estate plan in place. I think people might think an estate plan means you have to have real estate — surely — you know, it’s not.
Rod Hatley: You make an excellent point. And the frustration is — people just don’t do the planning and they should, obviously. I’m reminded of the Woody Allen observation that I’m not afraid of death. I just don’t want to be there when it happens. The idea is we need to get out ahead of this and talk to clients. I mean we’re talking about disability, death and dying. Not easy conversations to have, but important conversations to have.
I think if we can start to have that conversation. If we can have a little fun talking about the subject, then we can move clients to a point where they have a plan in place to provide for their possible incapacity. Certainly, they’re going to pass on some day and how would they like their assets to be transferred to their children and their grandchildren etc.
Craig Sewing: When I think about an estate plan, I didn’t – “not enjoy the experience” at all. I thought it was kind of empowering. You know you’re looking at — you want to make decisions. Who do you want to leave things too? I mean you’re really talking about your legacy. I think if we just had a little paradigm shift on what it really is.
Rod Hatley: And I think that’s the important point to help them understand — you’re in the driver seat now. You’re not leaving things to chance. And I tell people, part of my back-story, I worked in the courts. Yeah, I went through a seven-year probate when my Dad passed away and that’s not what Dad wanted. But because he was sick with leukemia, he couldn’t do anymore planning. He was afraid. And he couldn’t do anymore planning than what he had done.
I bring to bear this story. I tell people, look, don’t put your families through the probate process. You know, it’s not a pleasant experience. Let’s get out ahead of this. Wouldn’t you like to be in the driver seat, and you get to decide, not the court. You get to decide when the kids get the assets and how they get them and more.
Craig Sewing: That’s a key point as well. I just mentioned the word legacy. Do you really want your family arguing over your finances? And I think that people might just believe that well, if something were to happen, this is the natural progression. But a lot of times the court doesn’t necessarily agree with what you think might be in the natural progression.
Rod Hatley: Exactly right. I tell clients if you don’t have a plan in place, the State of California has one for you. It’s called probate. And I always ask the question, how many financially responsible 18-year old’s do you know? I don’t know very many. I mean rather than have the kids get the assets at 18, I think it’s valuable — let’s have a plan in place and maybe 30 is a proper age to receive the assets.
And then up until age 30, they can have access to the assets for whatever they need. And then at age 30, we can offer whatever they want. But I think it’s valuable to have that conversation, help them understand they have choices. I think most clients don’t even know what they could do. It’s helpful to have that conversation, get them up to speed on what their choices are and let them make informed decisions.
Craig Sewing: Awesome. You know, real estate is blowing up.
Jordan Beal: Blowing up!
Craig Sewing: Is it big out in your headquarters?
Jordan Beal: Yeah, we’re moving into 2500 square feet on the corner of Cedros Solana Santa Fe which was the gateway to Cedros building. But we’ll be rebranding it and part of that 2500 square feet, we’re taking over the management of all 8000 square feet of the building adding to Beal Real Estates commercial portfolio management. And that will be doing the leasing too, so it’s exciting.
Craig Sewing: So residential real estate, legal background, commercial.
Jordan Beal: Full service.
Craig Sewing: Jack-of-all-trades. What are your goals? You are a business owner. I know we talk about real estate on this show. But as they — as a successful entrepreneur, in real estate, what are your goals?
Jordan Beal: Other than world domination, I’m in Southern California. Yes, we’re looking to service all North County and all of San Diego eventually starting in my own backyard in North County.
Craig Sewing: Cool man, you’re making a big impact, coming in here and talking about the market, what’s going on in real estate, certainly the importance of an estate plan. Rod, I appreciate you coming on here as well.
Rod Hatley: My pleasure. Thank you!
Craig Sewing: Connect with these guys if you have any questions about this stuff. It is so important to get this stuff in place and these are two of the best in the business. That’s all for today’s episode of the American Dream. Hope you enjoyed it.