The Family Trust Strategy Every Real Estate Investor Needs to Know | Aaron Chapman
6/11/202651 min
Most real estate investors are stuck choosing between flipping for income and holding for wealth but 30-year industry veteran Aaron Chapman says you don't have to choose. In this episode of The M.O.R.E. Show, Justin Colby sits down with Aaron Chapman, mortgage expert, real estate investor, and author, to break down how to run a flipping business and a holding portfolio simultaneously without coming out of pocket, how to use family trusts to protect and pass down real estate wealth across generations, and why the foundation you build your business on matters more than how fast you grow it.
KEY TOPICS COVERED:
- How to flip houses and hold assets at the same time using the right entity structure.
- Family trust strategy explained: grantor, trustee, and beneficiary roles.
- How Aaron structured his children's homes inside a trust to build generational wealth.
- Why growing too fast without a strong foundation will eventually collapse your business.
- The legacy mindset: ensuring every bloodline never wonders where they will live.
- How to use life insurance and compounding inside a trust to create unstoppable family wealth.
TIMESTAMPS:
00:00 — Aaron's daughter calls him landlord instead of dad — the trust conversation
01:21 — Introduction: Aaron Chapman, 30-year real estate professional and author
02:07 — Why building fast without a foundation is the most dangerous move in real estate
03:48 — Aaron's background: in the game since 1997
07:00 — Entity structure and financing: how to flip and hold simultaneously
15:00 — Family trust breakdown: grantor, trustee, and beneficiary explained
25:00 — How Aaron built homes for his children inside a trust
35:00 — Legacy, faith, and centering a family around shared values
47:00 — Using business enterprise structures for tax deductions and family benefit
49:00 — Ensuring your bloodline never lacks for housing
49:53 — Aaron's book: Redneck — available on Amazon
Connect with Aaron Chapman:
Book: Redneckonomics — https://www.amazon.com/Redneckonomics...
Youtube - @AaronChapmanSGOC
About The M.O.R.E. Show:
The M.O.R.E. Show is hosted by Justin Colby and is dedicated to helping real estate professionals, investors, and entrepreneurs maximize opportunity in any market. New episodes every week.
Learn more: www.timeformore.com
Invest with Elevest Capital: www.elevestcapital.com
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Clips
Transcript preview
First 90 secondsAaron Chapman· Guest0:00
And she calls me up one day and she goes, "Can I talk to my dad instead of my landlord?" I go, "Yeah, what's on your mind?" She goes, "I'm reading the lease." She goes, "By the time I'm done paying payments on this house because of what the lease can do, in 30 years I'll have paid well over a million dollars for this home." I'm like, "How are you coming up with that?" The lease has capability to increase the rents by 3% per year. Well, she's doing that 3% and she's starting to- Every year ... understand compound, right?
Justin Colby· Host0:19
Sure.
Aaron Chapman· Guest0:19
Compound gets huge. And she's thinking this is indefinite. She's not looking at it from the perspective of what the m- you know, mortgage payoff and all these things. She goes, "I'm actually just gonna rent an apartment." I'm like, "Wait a minute, you're gonna..." She goes, "Yes, I found apartment. It's gonna be about the same price, and I don't have to deal with this million dollar thing." I was like, "We need to stop here for a second. Do you understand how this thing is structured?" She goes, "Yeah, it's held by the trust, you own the trust, and I'm your tenant." Like, no. A trust has three different real main components as far as the people in it. You have a grantor, you've got a trustee, and you've got a beneficiary. "So which one am I?" She goes, "Well, you're the owner." I'm gonna say, "No, I'm the grantor, which means I give everything to the trust."
Justin Colby· Host0:54
Right.
Aaron Chapman· Guest0:54
"I create it and I give it. But I'm the trustee, that means I get to direct it. But then there's a beneficiary. Do you know who that is?" She goes, "No." I said, "That's you. You benefit from all these things. We also formed a board with your siblings. You guys get to vote on how we do these things. Now, I get to veto everything, but the last thing I'm gonna do is try and take a million dollars from my daughter."
Justin Colby· Host1:12
[upbeat music] What is up, The Moore Show family? We are back with another incredible guest. Now, as always, these guests come directly into The Moore Club