Leveraging Tech with Yaakov Zar

Yaakov Zar is the founder and CEO of Lev, one of the nation’s fastest-growing commercial mortgage brokerages. Lev helps commercial real estate owners and investors get the best financing for their properties by supercharging the industry’s leading capital markets advisors with machine learning and artificial intelligence tools.

Before starting Lev, Yaakov was a co-founder and Chief of Strategy at Dispatch, a workforce management platform for enterprise home service businesses, where he led product and sales to large accounts nationwide. In 2018, Vista Equity Partners acquired Dispatch.

Yaakov graduated from Boston University in 2012 with a focus on Entrepreneurship and lived with his wife and daughter on New York’s Lower East Side. Yaakov & Dassi Zar serve as Shluchim at Chabad House Bowery.

Episode Highlights Here:

Yaakov Zar:

There’s a concept where if you start a business, you get paid effectively no tax on a significant portion of it.

Pierce:

When you sell your business, your liquidity event, so did you have a significant capital gains tax on that sale?

Yaakov Zar:

So for most of it, we actually were able to take advantage of the QSPS tax rule and are familiar with it. Now, there’s, there’s a concept where if you, if you start a business, you get paid effectively, no tax on a portion, a significant portion of it. And we have no capital gains tax on a significant portion of it. So we could take advantage of that for a lot of it. And, you know, obviously constantly figuring out what the right tech solutions are for, you know, on a day-to-day basis.

Pierce:

So how does that the cuter you call it QSPQ? SBS USBs? Okay, so how does that work?

Yaakov Zar:

It’s like an IRS code about to encourage small businesses. I don’t know the origin of it. But uh, it’s, it’s an interesting concept where you pay, like, up to a certain amount of capital gains tax is is is completely deferred and deferred, I guess. You pay zero capital gains on a portion. Qualified Small Business stock, it’s called.

Pierce:

USBs. Write that down. Yeah. Interesting. Okay. So one of the things that we do over here is we use what’s called a deferred sales trust. And what’s cool about that is it works for businesses. Still, it also works for highly appreciated stock or commercial real estate, or primary residence, or crypto or whatever, any highly appreciated asset. And if it doesn’t qualify for, you know, something like 1031, or, like USBs or, or, you know, the 121 exclusion or it’s above and beyond, like, you know, you can use the deferred sales trust. And essentially, what you can do is you can, can sell a highly appreciated asset. And then you can almost, like 1030, want into a self-directed IRA account. So it gives you control over timing, it gives you control over the, it’s like kinda agnostic as well. So it’s like, with 1031, you got 45 days to identify the property and 180 days to close with this. You have no time limits. You have no light time constraints. So you go, you can sell a stock, and you can go into business, or you can sell a business and go into real estate stocks and bonds and crypto, or you can sell crypto and go into a business venture and real estate, it doesn’t matter. You can do whatever. And it’s super flexible, interchangeable, and all that stuff. And so, it’s a phenomenal tool that can be used. When when when you have those big liquidity events. It’s awesome. Yeah, it’s really cool. Here’s we have a mastermind every Friday at 10 am. Pacific 1 pm. Eastern. I’ll invite you so you can come and ask questions, bring CPAs and check it out. It’s a weekly thing. So if anyone else is interested, you can go to capital gains tax solutions.com