Writing books and educating clients drive this Titan.

The beauty of real estate investing, Garrett Sutton says, is there is something for everyone’s interests.

“Some people want to get in there and develop. Some people want to get in there and manage and raise rents and do all that. And then others, like myself—I’m busy with a law practice—don’t have time to do that,” he said. “There’s kind of a spectrum for people who want different levels of involvement.”

Sutton is the owner and operator of Sutton Law Center and Corporate Direct Inc., both based in Reno, Nevada. Ever since attending UC Hastings Law in San Francisco, he’s been interested in corporations and has built both businesses around that core: helping business owners incorporate to protect themselves and their assets.

In addition to his day job, Sutton and his wife, Jenny, are real estate investors. He said that after law school, he “realized that real estate was a good way to provide for my family’s future.”

In the beginning, he invested in apartment buildings. Though they worked with a management company, Jenny, a radiation oncologist, felt she spent too much time managing the management, he said. The couple transitioned to triple net leases, which suit them as a far more passive investment. (A triple net lease agreement is one in which the tenant agrees to pay all property expenses, including real estate taxes, building insurance, and maintenance, in addition to rent.) In many cases, a franchisor sells its building and lot to an investor who becomes the landlord.

Sutton has parlayed his breadth of experience into an elite advisory role: He serves as a “Rich Dad Advisor” for bestselling author Robert Kiyosaki.

Ted Sutton (son), Robert Kiyosaki (author, “Rich Dad Poor Dad”) and Garrett Sutton

Becoming a “Rich Dad” Expert

Kiyosaki is the author of “Rich Dad Poor Dad,” the all-time No. 1 personal finance book. He’s built an entire network on the book’s popularity, including a team of seasoned experts who comprise the Rich Dad Advisors.

Sutton said he connected with Kiyosaki around 2000, when the author was looking for an attorney to join his advisory group. Sutton’s corporate expertise was appealing, but he also shared a mutual interest with Kiyosaki: rugby. Kiyosaki is a big fan of the sport and played for the Hawaii Harlequins; Sutton had played during law school. Their love of the game has taken them to a number of rugby World Cup games around the globe, Sutton said.

Off the pitch, Sutton became the Rich Dad Advisor on entities and asset protection, and soon he was asked to write a book for the brand “Start Your Own Corporation.”

“I always wanted to write a book anyway,” Sutton said. “I just put myself in a room and got it done in three weeks.”

His first book dealt with the basics of incorporating and became one of the top 10 bestselling business books in 2000. Since then, he’s written six additional titles for the Rich Dad brand, including “Loopholes of Real Estate,” which covers legal and some tax aspects of investing in real estate.

“You know, they don’t teach any of this in school, unfortunately, so you have to get the information on your own,” he said.

Sutton has another book coming out in March 2022, “Veil Not Fail,” that discusses the corporate veil of protection and how to keep it intact. The book features tips as well as horror stories about instances where the veil was pierced.

“Too many of these books are written in legalese. It’s hard to take in,” he said. “My preference is to tell stories about situations and then apply the law to the story.”

Lawsuits succeed in piercing the corporate veil in almost half of all cases, Sutton said, which means many business owners aren’t taking the right steps to protect their assets: “We don’t want the veil to fail.”

In addition to writing, Sutton serves as a speaker at Rich Dad seminars. He said he’s also a student when he attends, learning from the other experts. He’s even brought his son, Ted, to the events, allowing him to absorb lessons in business that will serve him well once he graduates from law school in Wyoming and joins Sutton’s practice.

Caution for Corporations

Currently, Sutton is educating his clients on a new law that goes into effect in January 2022. The Corporate Transparency Act is recognized as an amendment to the Anti-Money Laundering Act.

Though lawmakers may have had good intentions, Sutton said, the reality is the new rule will create a huge filing burden for nearly all corporations and LLCs in the country. The CTA requires all companies to report on an annual basis the beneficial owner, owner’s date of birth, business address, and an identifying number from a state-issued ID such as a passport or driver’s license. The information will be stored in a database maintained by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network.

Sutton said penalties for not filing or filing false information will be severe, including fines up to $10,000 or two years in jail. Complicating matters, the Treasury has been slow to release guidance on how to file the required information, Sutton said.

Sutton’s firm will offer a new service to help businesses file this information and remain in compliance. He’s well-suited to help companies nationwide: The firm already offers a resident agent service in all 50 states.

That offering “aids in the efficiency of justice,” Sutton said, by making it easy for someone suing a company to make contact. Some business owners mistakenly think that if they can’t be found, they can’t be sued. In fact, Sutton said, that scenario makes it more likely that the entity suing will receive a default judgment and win the case. “Hiding is not a good idea,” he said.

Reflecting on Success

Though he’s gained Titan status in his industry, Sutton said the real measure of success is the satisfaction he’s found through writing books and educating clients.

“If you provide a good service, the money takes care of itself. So, I’ve never really worried about that part of it,” he said.

He says he’s satisfied in life, being able to travel and provide opportunities for his son and twin daughters, Emily and Sarah. Sutton also has been able to invest his time in causes that resonate with him. He’s on the executive committee of the Nevada Museum of Art in Reno, the only accredited art museum in Nevada. He’s on the boards of Sierra Kids Foundation as well as the American Baseball Foundation, which he has worked with for more than 25 years. His love of the game has spurred another project: a baseball documentary that will be released in the spring.

Advice from a Titan

Sutton looks to titans of history for inspiration, saying he particularly admires George Washington’s leadership and character that played a pivotal role in defining the U.S. and the role of president.

For those who may look to him for advice, Sutton recommends starting small to anyone interested in real estate investing.

“You don’t need to—and probably shouldn’t—do a big deal at the start,” he said. “Learn about real estate and your market by starting with smaller properties. Avoid the paralysis of analysis. Too many potential investors focus just on the numbers and let the opportunities to learn and grow pass them by.

“Know that you are going to make some mistakes at the start. Everyone does! You are creating future war stories and learning by doing to be a better investor.”