On the show today we talk… about Secrets of Capital Gains Tax Solutions with Brett Swarts!
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Show notes: Secrets of Capital Gains Tax Solutions with Brett Swarts!
Julie is getting all of her new years things going on, and spending a lot of money. Joe is still trying to sell the van.
What is Brett’s background
He grew up in the real estate world of California.
Down the road he got to learn from a really good Marcus and Millichap real estate company while in college.
Around 2009 they were having some trouble with real estate, and got a job at the Cheesecake Factory to pay the bills. This happened for 2 years, and things were scary. It was a financial struggle.
He knew a client that had 50 million in real estate and lost everything. He had overpaid, over leveraged, and didn’t have enough liquidity.
These days Brett coaches and trains and works with high level investors
What kinds of things can you do other than 1031
There are a lot of options. The question is what are you trying to do, what are you goals…. Why sell the property? What are the reasons?
There are 77 million baby boomers in the US along and there’s the largest wealth transfer in the history of the planet about to happen.
The question becomes, what’s a good plan for what these people are trying to do. But there are a lot of people that don’t want to own real estate anymore.
Often times Brett increases people’s cash flow by 60%.
There’s always risk, but you can diversify.
There has to be a better way than the 1031 Blockbuster.
What is the Netflix vs. Blockbuster analogy
Blockbuster is the 1031, and it’s not a good idea right now. You can find good ones, but they aren’t very common right now
Brett tells a deal story on the podcast. Listen in to hear the story.
Once Brett’s company sits down with clients they can set things up to unlock freedoms that isn’t available with 1031’s.
Seller financed deal vs. an deferred sales trust
Instead of financing the buyer, the deferred sales trust, the buyer is going to finance the trust. You ask the buyer to cooperate with the trust. The net funds go into the trust.
Is there a reasonable payment from the trust
Yep, or you can let the interest build up.
Payments can be monthly, quarterly, annually. That are usually the same every interval. But the payments can be adjusted.
Why wouldn’t someone do this (Brett)
You have to work with a trustee. They are a qualified intermediary. The money can’t stay in your hands because that would be taxable. You need approval from the trustee to do anything with the money.
There is an option for being completely passive, or partnering with the trust.
What does partnering with the trust mean
A lot of people already have investments. Brett gives some examples.
The cool part is that you can diversify.
There is a 3rd party financial advisor that can help people with their investment strategy.
It’s customizable.
What if you’re a limited partner in a real estate sale
The answer is YES!
In a traditional 1031 the whole entity needs to move.
It works for just about any asset you can think of.
It needs to be 1 million net proceeds and 1 million net gains. The ROI is really only a home run at these numbers.
The David Sloan example deal https://capitalgainstaxsolutions.com/deferred-sales-trust-client-shares-his-experience-and-his-new-multifamily-deal-with-david-sloan/
Debt over basis issue
Checkout the show to hear how this works.
IT’S ALL ABOUT CASH FLOW AND TAX FLOW
You get paid to the amount that you solve problems
It helps when you have options like this.
Sometimes that commercial real estate investors are old dogs and don’t like new tricks.
The secret is that most brokers and 1031 companies don’t want you to know about this. That’s why you want to work with Capital Gains Tax Solutions with Brett.
How can people work with Brett
Checkout Brett’s YouTube and Master Class – New BOOK coming out soon! Building a Capital Gains Tax Solutions Plan
When does this need to be setup
It all depends. Ideally you’re getting with Brett right now, and add them to your team. They work on a conditional basis. If you don’t use the trust, you don’t pay anything.
It’s too late if you receive the funds in your account.
If there are still contingencies in the sale, you can do this.
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