Everything Real Estate. Norther California. DST, 1031, Funds (cash only investments), investment properties. Also does acquisitions for Industrial and logistics across the western States.
Episode Highlights Here:
James
This DST gives another layer of kind of risk deferral, to the investors who do not necessarily know all the different investors that are coming into a trust.
Brett
What is the number one secret to growing wealth? But with that, with that type of deep DST
James
growing well, that’s basically what a deal DST started out. And I think that’s the focus. When I came into the DST world, they started with kingsbarn and 2020. And the DSPS, were roughly doing about two and a half billion annually. And now this year to date, we’re roughly about 8 billion. So it’s really taken off, we were a backup strategy a lot of the times when we first came out and then or, Hey, if you have leftover cash flow and a 1031, it was a great option to just make sure that you’re dealing with it. But the biggest benefit I would say is the wealth building. Part of it is you’re getting cash flow, it’s truly passive cash flow. So when you invest in a Delaware statutory trust, you’re getting a pro rata share ownership of we acquire buildings between 20 million and 120 million, we put them inside of a trust at Delaware statutory trusts. The only reason why we use a DST Delaware statutory trust is because it’s the only 1031 Exchange Accommodator trust. So we put it inside of the trust, we put reserves there, we’re not only able to do capital calls, if you’re familiar with 2007-2008, where a lot of deals blew up that were tenoning tips and partnerships, etc. If one person had a problem, we all had a problem. This DST gives another layer of kind of risk deferral, to the investors who do not necessarily know all the different investors that are coming into a trust. So
Brett
excellent. So you can have the capital gains tax deferral for excellent investment. Real estate is truly completely passive, right? You’re not. You’re just a percentage owner in the trust. And also they’ve cleaned up what was the tip days, right? It’s the tenant in common days where a lot of people get hurt. And so it sounds like they had the reserves in place to keep those protections. Is that a fair summary so far?
James
Yeah, that’s it. And we’re a sponsor. So that’s what you call us. We’re directly with the sponsor, myself, and force Serato, who’s also the reason why he’s president in Northern California, we both really focus on the individual, because every deal is going to be different. But every solution that we provide is pretty paralleled with each other. So if they need to, say bonus depreciation, and they want to take advantage of it, we do a cost analysis on every single product that we do, before we put them in, we do a little bit extra reserves on every deal, because we are a little bit more conservative. Let’s say we don’t use the reserves. But we still give that back to the investor. We’ve never sold at a loss. We’ve never, we’ve never missed a distribution. So far. kingsbarn really puts its real estate hat on we’re not a DST, the T stands for trust, trust is a security. I’m not a securities broker. But right now in California, we have a loophole. And that’s what Forrest and I really focus on is talking to real estate brokers and their clients in California. So we are the only real estate or only sponsor that pays real estate brokers 3% on any equity they bring into our DSPs.
Brett
That’s incredible, right? Because in the past, you’d have to get your series 22 or 63 or seven or different licenses, and then beyond with a broker dealer in order to get paid the securities fees, which is part of the Delaware statutory trust is but what you’re saying now, is that if you’re a real estate broker in California, and I believe also if the clients inside California, right, and doesn’t matter where the property they’re buying, but if you if you refer the business to you as the sponsor, you have to pay a 3% commission on whatever equity they put in. Is that a fair summary?
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About James Yoder
James Yoder is Kingsbarn’s Regional Vice President managing the South Bay Area markets in Northern California. James educates agents and investors about strategic 1031 exchange opportunities by providing the Kingsbarn investment portfolio with customizable secure investments. James brings experience from the CRE brokerage sector where he spent the past four years at Colliers International in San Jose. James portfolio included over 500K sq. ft. of property representing private and public funds.
James is a Bay Area native and he attended Valley Christian High School and Menlo College, where he graduated with a business marketing degree. Real Estate Law classes and family CRE roots led him into brokerage after graduation. James worked at DAYoder CRES for two years before joining Colliers International in late 2016 and finally moved to the Kingsbarn Real Estate Capital team in 2020.
Outside of work, James spends his time with his beautiful wife and children in their hometown of Willow Glen, escaping to Tahoe on the weekends.
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