HOW BRETT GET INTO REAL ESTATE, AND CAPITAL GAIN TAX SOLUTIONS

[Brett P Swarts]

Rachel Marshall:

Brett, let's go ahead and start back from the beginning. Tell us how did you get into this space specifically with real estate, capital gains, and taxes? How did that all come to be for you?

Brett Swarts:

Yes, great question. Thanks for having me on the show. So most high net worth individuals who own commercial real estate, they struggle with capital gains tax. It started in 2005 - 2006, at Marcus and Millichap, when people buy and sell an investment or real estate, as I learned the brokerage side of things. That was during the time when the market was very, very, let's say, seller's market prices were high, people were making a lot of money. They were doing a lot of 1031 exchanges. As a part of that 1031 exchange, they love to be the seller, but they load being the buyer. Right? They felt like they were overpaying, taking on too much debt equal or greater value chasing deals, we call that the shotgun 1031 wedding. Getting engaged in 45 days, and you're getting married and 180. Then the music stops, right, and it stops in an abrupt place.

Now in 2008, we saw a lot of friends, family, and clients lose half or some of them lost everything. At the time, too, I was kind of just new to the brokerage business. I was just trying to make it myself. I don't know if you've ever been in this position where you're working so hard at something and you're so in love with what you're doing. But you're not having a lot of traction financially, that's where I was I was newly married, had my first daughter at home, and during this period where I started to get some success and then it hit that brick wall 2008 but it wasn't just my own brick wall and my wife and my family's financial brick wall. But it was also the brick wall for a lot of these clients who had worked, you know, blood, sweat, and tears for 10 to 30 years.

I have these properties, own these properties through multiple exchanges, only to find that they weren't diversified. They weren't liquid, there's I think the banks had overpaid for properties and see most of them knew they were overpaying at the time in the sense that they thought it was a seller's market, but they felt they had no choice, they felt they were trapped by the capital gains tax. So I did what every good entrepreneur does, and you try to figure out a way to help your clients and had to face that ever again. But also how to keep the finances coming in. So I guess side job, side hustle at a place called Cheesecake Factory, my wife’s favorite restaurant. So by day, I will be baking calls trying to help you negotiate with things or my clients and or with the city and county for taxes. By night I've been trying to serve cheesecake and keep the lights on in my house. So that was a really trying time. So the Manager at Cheesecake Factory said “Hey, look, you have two degrees in the minor your success, you're trying to be successful in real estate looks like you had some success. But now you're in a tough spot. I want you here for two years. As long as you stay for two years, I will hire you.” So I give him that commitment. And for sure for two years in one day. By day I was trying to figure out how to make it work. And so I learned about the deferred sales trust with my manager, actually, at the time in Sacramento, brought in a gentleman to speak and he's now my business partner you name is Robert. And he's kind of the co-founder of the deferred sales trust. He's a financial advisor in this role. And he went on to tell us about how the deferred sales trust could solve those limitations. The 1031 exchange often forces people to overpay. So fast forward, I learned about it, and I expect to apply it to my business. And as I started to apply it and I rolled it out to my clients, I can see my business grow because I started to add value beyond just what a lot of other brokers were just talking about, which was just the 1031 exchange. That's where we have five kids live here in Roseville, California Sacramento still and we've been able to keep my wife from full-time. That's her love and her passion, to raise our five kids, and life has never been the same. Now I coach and train and teach Financial Advisors, Business Brokers, Commercial Real Estate Agents, and syndicators as well as luxury real estate on how to help their clients escaped the capital gains tax 1031 race as well.

Learn more about Deferred Sales Trust
Visit: www.capitalgainstaxsolutions.com