All Forum Posts by: Brett P Swarts

Michael- thank you for sharing your thoughts. How about you come on my podcast (Capital Gains Tax Solutions Podcast) and we can discuss it in detail? No worries if not. If yes, I will send you a link to book a time. I would love to dig in with you on this and hear about the capital gains tax strategies you really like to use for your clients! I will DM you a link 

@Michael Plaks thanks for the thoughts. As far as victory, the MIS is now on the IRS watch list ( aka the Dirty Dozen list) as of about 9 months ago. Yes lets see if Crow can have the MIS removed from the list. 

In the meantime the Deferred Sales Trust still has a perfect 27+ year track record, has a PLR, has never been on the IRS Dirty Dozen watch list or any IRS list and over 25 no-change successful audits.  

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Jerel - I work with clients to structure the Deferred Sales Trust. Do you have a client who is interested? If yes, and after they have signed a conditional engagement agreement with us, the documents can be shared with them and their attorney. Happy to help. Feel free to reach out to me. 

@Thomas Rutkowski  Curious if you saw this and what your thoughts were? https://www.irs.gov/newsroom/i....

Charles Carillo:

So give us a little bit about what your firm capital gains tax solutions do. And are you focusing? Well? Let us know.

Brett Swarts:

So most high net worth individuals who own cryptocurrency primary homes investment real estate have a failed 1031 Exchange or primary home. They struggle with capital gains tax and are somewhere between 30 and 50% of their gain depending on the depreciation recapture what state they're in. Oh, by the way, Biden might be proposing to double that potentially from 20 to 40%. And take away or limit the 1031 Exchange. So we use a deferred sales trust, which eliminates the need for the 1031 Exchange forever. It works for cryptocurrency it works for stock, it works for primary homes, also our clients can create and preserve more wealth. And as a part of that vision, we train and coach commercial real estate operators syndicators, financial advisors, Business Brokers, Luxury realtors on how to use this tool to grow their business. So it's kind of dual, we have people who call us direct, and then we'll find you know them solid real estate professional, or we have the actual business professional college director come and help alongside with their clients.

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

Charles Carillo:

So give us a little bit about your background both personally and professionally prior to starting your current firm.

Brett Swarts:

Yeah, so I grew up in Northern California, the Bay Area, and Sacramento. And I grew up learning about business and real estate from a young age my dad and mom, own real estate, they developed real estate. And so I had a chance to one of the sticks and bricks behind all things real estate, it was during the 1980s. It was MC Hammer days. And back MC Hammer had this huge house on the hill. And we'd always look at as we drove to the job site, my brother and I would you know, drive the bobcat with my dad and hammer nails move bricks and kind of just learned a lot about that. So I knew real estate was going to be in my world moving forward. And so fast forward, I went to college, studying business as well as playing some basketball on scholarship, which is a big passion of mine personally, and then had a chance to take an internship at a company called Marcus & Millichap and so I started to learn the investment underwriting the cash flow, the negotiations, the way to structure deals and, and add value and then started to learn learn, but it wasn't always easy, right? Because in the very beginning, I was brand new in the business. And the days of real estate with my dad, my mom, everything is a big shift you they got divorced when I was young. So I went from being with a lot of wealth to like no wealth overnight because my dad didn't really say pay the child support as he should have, right. So my mom, and so I live in my mom most of the time, but I knew at a young age that I wanted to have a lot of margin within my finances, and I wanted to be successful. So that was the focus of Marcus & Millichap was the way, big commercial real estate agent makes a lot of money. Learn how to how to underwrite and buy deals, and some working and it's 2006. And the marketplace is going red hot. It's on fire, things are going great. I start to learn a little bit, learn a little bit start to grow, start to get my business just going because it's 100% sink or swims business. There are no benefits, no commission, but I went from making a little bit of money to like nothing overnight on 08 crash hit, I looked around going oh my gosh, what I'm gonna do go get a real job or continue on. 

But I was learning and growing so much. But I just wanted to keep, keep it going. So I did what every good entrepreneur commercial real estate broker does when you're faced with a very tough thing. And the tough thing was this, I was now married, baby at home. And so I'm going to my wife, and I'm like, honey, like, I can either, you know, kind of give up on this initial career dream or are we can live with my brother and I can get a side job and hustle. So that's what I did. He's like, well, let's keep this thing going. So I moved in my brother and a small condo and with our first baby daughter, and they start working at Cheesecake Factory nights and weekends. And so my dad made cold calls. But I was going through this financial challenge myself. So were my clients except on a different level. They were fighting with the banks, renegotiating had too much debt, not enough liquidity, none of the diversification. And so and by night, I'd worked Cheesecake Factory to keep my keep the lights on. So I'd negotiate with banks helping them out along this journey. My manager brings in a gentleman to speak about the Deferred Sales Trust. And that's where everything changed. At that point. I had something that could solve the problems for my clients that they didn't have a couple of years ago right because they fought felt forced by this 1031 Exchange to overpay per property in a very low inventory marketplace, right take on too much debt. So I started to apply this strategy, talk to it with people, my listings and my deals started to grow. My influence started to grow. Fast forward. 10 years later, I was able to retire from the Cheesecake Factory. My wife, I have five kids. We've been keeping the whole estate home full time with our kids. It's been her passion. And I've been very successful in real estate and this Deferred Sales Trust world.

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

Jake:

My question is, if capital gains go close to 40%, what happens to your business?

Brett:

Even before this, it already was just booming, $2 billion. So, Biden, we've been tracking that for a while. Let's just see if he actually gets that passed, what you're referring to is going from 20 to basically 40% federal, which is just kind of staggering to think about. Then also the potential of the elimination of the 1031 exchange, if you make a certain amount to step out of it a million. I want to take you guys even back before this, we call this the perfect storm and according to the American Bankers Association, there's about $17 to $20 trillion. That's going to pass from one generation to the next in the next 20 years. This is our parents’ guys. These are the baby boomers. Who is looking to retire from toilet trash and liability? In fact, the same study found that there are about 77 million baby boomers in the US alone, and every day about 10,000 are turning 65. And 50% of their net worth is tied to high-end primary homes, investment, real estate, commercial real estate, and private equity businesses. what are they faced with? They're faced with 30 to 50%. Now potentially 50 to 70% in capital gains tax and depreciation recapture when they go to sell these assets. And they don't know how to get out of the toilet, trash, liability to diversify, get out of the debt without getting hammered by the tax. That's the big problem. This has already been happening even before this before Biden came in and before the proposals, and we've been busy for over 25 years now. I learned about 11 years. I say, my business partners. I'm just the trustee. I'm just the nurse, I take your pulse and I check you in for surgery to the tax attorneys who are brilliant and what they do, and collectively we helped to close the transaction. So it's already been happening and yes, it just throws fuel on the fire there, Jake.

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

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Jeffrey Brogger:

In the last five years, what new belief behaviour or habit has most improved your life?

Brett Swarts:

In the last five years? I would say the biggest one was to I'll do, I'll give you a business one, and then I'll give you a spiritual one. For the business one, it's “Hi, my name is Brett Swarts. I'm a control holic.” Hi, I'm Brett Swarts, and I want to hire the who instead of being the how. Realizing that as entrepreneurs or as real estate professionals, we're very typically very, very driven people who want to do an amazing job, and believe what we can do better than anybody else. I'm very competitive, and I'm like I can do I can figure this thing out, I can do it anybody else. However, the challenge with that is it can typically be your time, your energy, and your stress. We have five kids and two podcasts, two businesses, and all this stuff, and what I found is I have to manage not only my time, but my energy, and I have to get out of my way of myself to be like what, go hire the who don't be the how. What does that mean? That means getting coaching, that means getting mentors, that means hiring teams.

I have, five on my team now, or how many will probably be 10 by the end of the year, and I had to give up that control, and practically what does that mean? That means giving information and giving permission for others to make decisions. When you can do that you can instil confidence in people and help them develop even if they're gonna make mistakes. Even though I can do as well as you are. That's okay. Why? Because eventually, they will own that area, and what does that you know, video editing, online, social media, underwriting properties, marketing packages. My highest and best use is to be in front of clients, connecting with them one on one, creating content, doing podcasts like this, and that's the thing I also love to do. I would say that's the biggest thing, hire the who don't be now on the spiritual side.

It's really for me, what I found is accepting and not only accepting but embracing, and for me, it's my Christian faith, the truth of God's word, not my feelings are what the world thinks, and I think there's a verse in the Bible, it's like let like God be true in every man a liar. It's like there are so many things that are vying for our attention and our hearts and our and want to take it even though I struggle with things that I don't want. I don't want it to take me there. I know it's not best for me. It's literally like saying like, the only that I believe but it's like I'm all in on accepting even when I don't feel like you're even when my logic sometimes doesn't necessarily add up per se on the things of God's Word. So that's I just accepting him, and when I did that, and I've done that, and again, it's not it's a constant thing. It's helped me to feel like be more centred, more grounded, more present for my family, and again, be able to maximize the gifts I've been given.

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