How Millionaires Use Deferred Sales Trusts
To Make And Save Them Millions
In this episode of the Millionaire Mindcast, an amazing guest, Brett Swarts who shares information about Deferred Sales Trust, the tools and techniques that will create and preserve more wealth, and tips to attract high net worth. If you’re one of the people who want to have more time, travel, liquidity and pay off some debts through selling property, then this thing is for you!
Brett Swarts is an entrepreneur, real estate broker/investor, podcaster, a deferred sales trust educator/trustee, the Founder of Commercial Realty Apartment Advisors, and CEO of Capital Gains Tax Solutions – an educational platform inspires and helps business professionals like Venture Capitalists, Financial Advisors, Business Brokers, CRE Syndicators, and Realtors help their clients or partners execute a passive capital gains tax deferral wealth plan of their own. His experience includes numerous Deferred Sales Trust, Delaware Statutory Trusts, 1031 exchanges and $85,000,000 in closed commercial real estate brokerage transactions.
Swarts has been featured in various notable podcasts across the web, including The Best Ever Real Estate Podcast with Joe Fairless, Lifetime Cashflow through Real Estate Investing with Rod Khleif, Apartment Building Investing with Michael Blank, The Real Estate Espresso Podcast with Victor Menace, RE Investing for Cash Flow with Kevin Bupp, The Project Egg Show and many more. Brett is a guest speaker every year, who trains 100’s of business professionals at companies such as Marcus & Millichap, Keller Williams, Western International Securities, Multifamily Investing Academy & Equilus Financial Group, Inc.
Brett observed that most high net worth individuals, tech entrepreneurs, commercial or real estate owners struggle with capital gains tax in the amount of 30-50% of their gain when they sell their highly appreciated assets. Therefore, bring a solution and arrived at his mission to educate everyone on this area and empower them with the strategy so that they could use it to unlock capital not only tax-deferred. Therefore, people could create and preserve more wealth and can give more freedom to choose to allocate their money in alignment with their goals.
Together with this, Brett explains Deferred Sales Trusts and gives tips and something a way to differentiate yourself from all of the competition in the marketplace. For him, it’s important to not be focused on 1031 Exchange but look for options and find out what’s the why behind what you’re doing. Find out what’s best for you have given your current source of funds, given your current goals, and dreams. Aside from this, be cautious not to take on the dumb debt but take on the smart debt and have a clear business plan.
At this moment, Brett is happy with so much time and energy. Aside from having a successful business career, he is also giving value to his healthy – body, mind, and spiritual being. Brett makes sure everything is balanced and stays focused on what’s most important. Trying to be more passive with his estate deals and gives importance to taking care of his kids and wife. Brett believes that marriage and family are the two best things that God has given to us.
Some Questions I Ask:
- What Deferred Sales Trusts is and why should you use it? (02:27)
- Any scenario that you could give for someone to really understand the power of this thing? (04:09)
- Is there a threshold of deals to use the Deferred Sales Trusts? (08:29)
- Why don’t more CPAs and don’t more people don’t know about some of these very lucrative and unique strategies to save a lot of money, and create and generate more wealth? (10:38)
- Is this work for businesses or is it only tangible assets? (12:12)
- If someone is interested in this, what are the costs associated with it? What should be their first step to see if this fits their goals? (16:03)
- What’s the downside of deferred sales trust? (18:49)
- Do you have any resources or tools that contain more information about all the things that you’ve been talking about? (21:36)
- What’s your overall feeling in this real estate industry and the world of opportunity or lack thereof that you’re seeing right now? (22:29)
- What are some of the things that people don’t ask that they should be asking you in regard to tools or resources like the deferred sales trust or anything else that you think might be a value to them? (27:53)
- Tell me a little bit more about where your mindset in regard to your own wealth-building plan and in your own family legacy? (31:15)
- In regard to the disciplines and habits that have served you well in your business, what are some of the things that you’re looking to pass on to your kids outside of just money? (32:57)
- How have you found ways to scale and grow your business? (37:17)
- What it is that you’re chasing? What’s your ultimate definition or vision of wealth that you’re marching towards? (40:15)
In This Episode, You Will Learn:
- Peter’s story. (04:33)
- The ‘goal find yourself’. (13:25)
- How do you know the funds are protected? (15:38)
- The 3 sets of fees of 1031 Exchange. (17:00)
- The benefits of deferred sales trust. (20:03)
- The Dumb Debt. (24:42)
- How to attract high net worth. (25:52)
- The takeaway from this episode. (27:02)
- Things that help Brett grow and stay on track. (33:09)
- The financial intelligence that Brett wants to be passed on as part of his family legacy. (34:31)
- “We want to harvest our gains when it makes sense.”
- “The fees that we charge offset the savings.”
- “I’m in this world.”
- “No close unless you closed the deals.”
- “You always got to look at each sub-market and each opportunity.”
- “Bring a solution.”
- “We’re not going to hit something that’s hard to gain in a long time.”
- “Look for deals, be patient, and be diligent not to take on too much debt.”
- “Asking is a way so much as timing.”
- “Be early.”
- “Our biggest taxes is our biggest expense.”
- “Go out and get empowered by each strategy.”
- “I believed we’ve been given one life, and one opportunity to live out the gifts and talents we’ve been given.”
- “Focus on the majors.”
- “Start there, just take the first step.”
- “Go, do those things that you set out to do.”
- “Fatigue makes cowards of a soul.”
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Do you have a primary home, business or investment real estate you are considering selling?