Why Fewer people Know About The Deferred Sales Trust

[Brett P Swarts]

Gino Barbaro:

So, Brett, you may not be able to answer this question. But to me, it seems like it's almost like the self-directed IRAs of the world. Not many people know about them. Everyone should. Why don't more people know about the deferred sales trust?

Brett Swarts:

Yeah, you're absolutely right. We're kind of like a 1031. We're kind of like a self-directed IRA account, like a 401k. The reason is that it takes a group of professionals to actually execute this, it's not like just forming an LLC, okay. And when I first started 11 years ago, I didn't know a thing, right. But after 10,000 hours with the tax attorneys, going through the CPAs, you know, all of the overcoming all the false beliefs of is this thing legal? It's too good to be true. You know, it's that belief part. And it's actually seen the deals close, that creates the momentum for people to do things right until they have a guide or a coach. And it's not unlike probably what you guys do for people buying their first multifamily property, or their first 100 units, or their first indication, right? It's too good to be true. I can't do it until somebody does it. And so the answer is (a) it's proprietary to also answer your question, right? There's literally one law firm in the entire United States that were my business partners that do this. There's just a handful of individuals like myself are forming the trusteeships. And the last thing is we have financial advisors, thousands now across the nation that also offer it for their clients.

The best way to really answer that question is by telling you another story of a gentleman who worked for PIMCO, and this gentleman, if you have a guy named Bill Gross, but Bill Gross is one of the most respect he's like a Warren Buffett for the financial advisor world, you want the most respected guys, and he had five guys that took PIMCO about 20 years ago from about 80 billion to 1.2 trillion. And then they all retired, got a big payday? Well, for the five got bored. and gentlemen, particularly in David Young, got bored, and they formed a group called Anfield Capital. And realize these guys have been in business for 30 years, they get approached with stuff all the time, and especially tax strategies, and they just say no to everything. About two and a half years ago, they get approached the deferred sales trust, and they have the exact same question. Why isn't everyone knows about this? Why isn't everyone doing this seems too good to be true? But they did their due diligence, and they just didn't do it for a month or two, they did a full two-year due diligence. And they brought the legal team they bought, you know all of their folks, and sat down with the tax attorney laid it all out for two days on a table. And after that two days, they walked out with two conclusions. The first thing is this, and which is what everyone I think has come to realize once they meet with my business partner, that's the smartest guy we've ever met. And two, we're all in. Not only is it legal, but we were willing to put our names on this and they became a part of the inner circle. They are the advisory team. So the simple question is this if it's good enough for David Young, 30 years in the business, his entire legal team, is it good enough for you? And sometimes the answer might be “No” because some folks say I need to have my trust in general, you know, CPA says yes, but he's just a general practitioner. He's not a brain surgeon deferred sales trust capital gains tax expert, and that's really the rub there. It's that emotional thing of getting over. I don't know because I've never had a friend do it or my trusted advisor doesn't know about it. However, we will do no cost due diligence and will help train and coach those CPAs once they sign the NDA is and oftentimes they end up joining us.

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