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Show Summary
In this episode of the Investor Fuel Podcast, host Leo Wehdeking speaks with Ricky Guerrero, a real estate attorney, about his law firm’s focus on residential and commercial real estate closings. They discuss the importance of client engagement, navigating complex transactions, and the need for education in the real estate market. Ricky shares insights on building relationships and the significance of honesty in business dealings, emphasizing the need for transparency and knowledge among investors and buyers.
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Investor Fuel Show Transcript:
Ricky Guerrero (00:00)
so there’s a transaction that happened where the seller was a Puerto Rican entity. Now, due to my tax background, majority of people would not know this, but I caught that it was a Puerto Rican entity and I affirmed that applied, which is the Foreign Investor Real Property Tax Act of 15%.I had to go look at case law and the federal tax code to argue with the attorney on the other side because they believed that FERPTA did not apply. Luckily, they understood I was correct and FERPTA did apply and the 50 % was saved on the buyer’s end because the seller paid at the time of closing.
Leo Wehdeking (02:04)
everyone, welcome to Investor Fuel Podcast. I’m your host, Leo Wehdeking and today I am joined by someone I’ve been looking forward to chatting with, Ricky, who’s been making serious moves in the real estate business. Glad to have you here, Ricky.Ricky Guerrero (02:18)
Glad to be here. Thank you for the opportunity, Leo.Leo Wehdeking (02:21)
Excellent, excellent. ⁓ I think our listeners are really going to take something away from how you’re ⁓ approaching your law firm. Alright, so let’s dive in and ⁓ so first of all ⁓ for people who may not be familiar with your world can you give us the short version on what’s your main focus these days?Ricky Guerrero (02:42)
Sure, so our law firm is called the G Law Firm and our main focus is residential and commercial real estate closings. That’s the short form of it.Leo Wehdeking (02:50)
That’s the short version. ⁓ perfect, perfect. And Ricky, in what markets are you operating in right now?Ricky Guerrero (02:57)
So our main office is in Coconut Grove, South Florida, but we do transactions all throughout Florida, from the Keys all the way to Jacksonville to the top of Florida.Leo Wehdeking (03:06)
Right, love it, love it. ⁓ Ricky, do you mind being a little bit more specific about what you do and what your law firm ⁓ does to help real estate investors?Ricky Guerrero (03:20)
Sure, so we are a real estate law firm that really focuses on educating and service. know, educating coming from our part where we know specifically, you know, tax situations, we know how to defer taxes with them that are on exchange, we know how to protect their investments through structures, and then on the contract side, preparing the contract to protect them and their interests and protect their assets as well.Leo Wehdeking (03:42)
Okay, perfect, Now, ⁓ Rick, what’s been the key to keep your law firm running smoothly?Ricky Guerrero (03:53)
Service. For us, we are answering emails probably within 20, 30 minutes maximum. We are working over the weekends, overnight. Majority of my clients have my personal cell phone number. I believe ⁓ contact with the client is privity because it is important that they do not make a mistake and then call me after. It’s important that I let them know what they need to do or how to do it prior to them doing something that I have to fix it after.Leo Wehdeking (04:20)
Alright, alright now Ricky every operator that I know has a moment where things got real Alright, maybe a deal that went sideways or a time that they had to pivot real fast Do you mind sharing one of those moments?Ricky Guerrero (04:39)
Sure,so there’s a transaction that happened where the seller was a Puerto Rican entity. Now, due to my tax background, majority of people would not know this, but I caught that it was a Puerto Rican entity and I affirmed that applied, which is the Foreign Investor Real Property Tax Act of 15%.
I had to go look at case law and the federal tax code to argue with the attorney on the other side because they believed that FERPTA did not apply. Luckily, they understood I was correct and FERPTA did apply and the 50 % was saved on the buyer’s end because the seller paid at the time of closing.
And what’s funny is that attorney told me that that Puerto Rican entity did about three or four transactions prior to this one and FERPTA was not collected. So those other buyers will now be on the hook and I was not part of that transaction. Those transactions, but the other buyers are going be on the hook with a payment that was
collected on this other side.
Leo Wehdeking (06:17)
Wow,wow, that’s ⁓ Rick, let me ask you this. What are you most focused on solving or scaling next?
Ricky Guerrero (06:28)
Number one is growing the firm. Number two, solving is I believe that there is a lack of knowledge on the investor or buyer’s end. I believe that agents fill out the contract, buyers sign it, and majority of the time they don’t even know what they’re signing or getting into. So I think educating both the buyers and the seller a little bit more is probably what we’re going more towards because they don’t really know exactly what’s going on in the transaction, on any residential transaction.Leo Wehdeking (07:30)
Exactly, exactly. Now, ⁓ I know that a lot of people listening are either early in their journey or looking to level up and I think they will benefit from hearing this. Now, when it comes about building relationships and growing your network, what’s made the biggest difference for you?Ricky Guerrero (07:48)
Sure.The biggest difference for me is being very truthful and honest. Not everyone wants to hear things at the times that they want to hear things, but it’s better to be truthful and honest and you’re not going to know everything. So it’s okay to tell them, I don’t know, but I will figure it out for you and I will get the answer for you. And I think the power of I don’t know and being truthful and honest will build relationships more than you believe.
Leo Wehdeking (08:15)
Yeah,that’s actually something that you cannot fake, right? Relationships are everything. Not only…
Ricky Guerrero (08:18)
Yeah. No, it’ll comeout eventually. I mean, if you don’t know and you mess up, it’ll come out eventually.
Leo Wehdeking (08:24)
Yeah exactly, Now Rick before we wrap up if someone wanted to reach out to you, connect with you, maybe collaborate or learn more about what you’re doing, what’s the best way for them to reach out to you?Ricky Guerrero (08:38)
Sure, could email us at info at the gfirm.com. They could follow us on social media. Our Instagram is at the glawfirm.com. Either one of those are the best way to contact us, and I’d be more than happy to join and talk to them.Leo Wehdeking (09:31)
Perfect, perfect. Well, listen Ricky, ⁓ I really appreciate your time, your story and your perspective, alright? We need more people in this space who are actually doing it the right way. So thanks again for being over here. And for those of you who are just tuning in, if you got value from this, make sure you’re subscribed, okay? We got more conversations coming with operators just like Ricky Guerrero, okay? Who are out there building real businesses, alright? So we’ll see you on the next episode.Ricky Guerrero (10:02)
Thank very much, Lee. I appreciate it.
