Story Of How I Learned The Deferred Sales Trust
It wasn’t easy. In fact, it was really challenging. You see the marketplace was a lot like what it is today and that it’s highly appreciated low inventory, and prices were through the roof and had a lot of sellers wanting to sell, but didn’t know how to 1031 Exchange without having to overpay for a property. That’s when it all hit in 2008, a couple of years later, and everything kind of came back and people had overpaid got caught, and then Warren Buffett has a really cool quote, he says, “When the tide comes out, you see who’s been skinny dipping”, I saw firsthand on the ground, here in Sacramento, California, friends, family and clients either lose half of their wealth or all of their wealth. When it came to real estate investing because they had too much debt, they had overpaid for properties, and the heart of it was they felt trapped by capital gains tax.
I’m just a brand new broker and I’m just trying to make it in the business and newly married wife at home with our baby daughter and Nikki next to zero and a very competitive 100% commission environment brokerage community at the time, and so I had to figure out a way to make it in the business. I don’t know if you’ve ever been so scared that you’re not sure how you’re going to support your family, financially. Growing up, I didn’t have a lot as well, financially may, in fact, my parents were divorced when I was young, and my dad had a lot of money. I sold that my mom did have a lot, and so I live mostly 90% of the time with my mom. So I saw kind of both sides of wealth and not having wealth and group count with a scarcity mind mentality. So during these challenging times, I was really felt pressured to go get, I will a lot of people call a real job or a W-2 job more of a corporate job. But I love the business, and I wanted to succeed, and I wanted to make it in the business, and so I had some amazing mentors that helped push me and challenge me and encourage me along the way, and this is my story of how I learned about the Deferred Sales Trust, and so with anything in life, I found that if you have good mentors, and good coaches, good teachers, good professors, good parents, that is the next opportunity to if we’re humble enough to learn to grow if we apply the lessons of wisdom from folks that are ahead of us, and so this is the story of how I learned about the Deferred Sales Trust.
Back to the 2008 kind of crash. This is like around 2009. My management Marcus and Millichap brought in a gentleman who spoke on the Deferred Sales Trust, his name is Robert Binkele. He is now my business partner. But more than that, he’s my friend, and he’s actually the co-founder of the Deferred Sales Trust. My success in my knowledge of the Deferred Sales Trust, along with is really owed to him and owed to the tax attorney and created the structure, and so as a team, we help folks to execute the Deferred Sales Trust. But if it wasn’t for Bob and Robert, speaking on the Deferred Sales Trust, I wouldn’t be here today. He came into the office, and he spoke to about 30 different agents, and we sat there and like a lot of people scratching their heads saying how does this really work? Is it too good to be true is this thing legal, and we weren’t sure if (A) would work for clients or (B) if it worked for our business. But what I loved about what Robert did for me, and he had a great background, he actually played for the 49ers, and growing up in the Bay Area, I was a big 49er fan, Jerry Rice, Joe Montana, those are the kind of the glory days for 49ers fans, and he actually played with Jerry Rice, and so we both had a love for football and a love for sports, and love just working on teams. What I love about Bob is he knows how to help people work on teams. That’s one of the first lessons I learned from Bob, which was how to take something that’s complex, and that is very specialized, and then be able to apply it to different business professions and to help clients who are selling something. That’s how we appreciate it.
For me, I was a commercial real estate broker, and the challenge was the 1031 exchange wasn’t always a suitable option for clients. What he helped me do is apply the Deferred Sales Trust. The first thing I would do is call and talk about it and just say, “Hey, have you heard about this alternative to 1031 Exchange?” And people say “No, never heard of it? Is that a tenant in common? Is that a Delaware Statutory Trust?” I said no. “It’s called a Deferred Sales Trust”, and they said, “Sounds too good to be true”. Or sometimes they’d say, “Let me talk to my CPA”. In fact, we had a huge deal in Napa, California was about a $30 million deal. This gentleman’s plan was actually not to buy a property, he was just going to retire, and I think his liability was around $10 million. He had a zero basis on this property, and his plan, I called him up and said, “Hey, it looks like you’re selling your property. What is your plan to do a 1031 Exchange is a very common call we would make”. He said actually, “No, I’m not gonna buy anything. I’m just gonna pay the taxes” “Oh, Wow. What’s your tax?” He’s about 10 million. I said, “Oh, that’s a lot. Have you considered a Deferred Sales Trust?” And he says, “What’s that?” And I said, “Well, it’s an alternative to 1031 exchange. We actually just learned about it. A few months ago and you don’t have to pay the tax, you can put it into stocks, bonds, mutual funds or alternative investments or real estate at your own timing”, he says is “Too good to be true. I don’t think it’s true. I don’t know”. “I think it is true and I think you should check it out. But I’m not a tax professional, but maybe you talk to your CPA”. He says, “Okay, I’ll talk with my CPA” and that CPA happened to be a gentleman named Lou Weller, and Lou Weller was with Deloitte Touche. Deloitte Touche is one of the most respected law firms, especially for real estate and taxation. Lou is at the top of that legacy for that firm.
We got on the phones and Lou is one of the smartest guys we talked with, and we walked through it with him. He was very skeptical. But he was open. The client at the time said, “Look, if Lou says, Yes, I’ll do the deal”. Because Lou is one of the smartest guys I know if he says, “Yes, I’ll do the deal”. So fast forward about three months of due diligence and documents back and forth and going through it. Lou wrote an opinion letter and essentially said, “I think it works. It looks good”. He’s never done one before. I’ve had a client do it before, but there’s nothing that’s red flags that would pull him back from using it, or having his client use it. That was a huge win for us. So just when I thought, the business was going to explode. I had this new deal story. It was a huge, very respected gentleman with industrial property in Napa, California. He said he’d use it. Guess what he said? He said, “Actually, no, I’m not gonna do it”. And I said, “Well, we spent all this time energy work when you threw it, you commit it, you would have Lou said yes”. And he goes, “Honestly, I didn’t think Lou would say yes, but I’m still saying no”. He still said no, and he actually paid the tax. That was around 2011. That was devastating. Because I thought I finally figured it out. It was one of those moments where just like, you pour everything into this, you’re all in on a strategy on a solution for a client. The client gives you his word that he does it if there’s if a tax professional says yes, and yet he still doesn’t do it.
That’s really my initial story of how I learned the Deferred Sales Trust. Fast forward now been using the structure and educating people, for now, that’s another nine years. So over 10 years, almost 11 years now. The business has never been the same I’ve been has been lots of bumps and bruises learned a lot over the years, I’ve definitely spent the 10,000 hours with my mentors and learning about the Deferred Sales Trust. I’m glad I have now because now we’re closing close 40 deals this year, and around 87 million total of gross sales price, and including businesses primary homes, investment, real estate, we’ve saved 1031 Exchanges, and businesses keep growing. But it would not have been possible out without my mentors without Robert without the Deferred Sales Trust tax attorneys, you credit the structure and so many others who encouraged me along the way to not give up on my dream. I would encourage you today, if you have something that maybe not everyone believes in, everyone’s on board. Maybe you have doubts about whether you can do it, I want to encourage you to keep pushing through to keep focused on the value that your potential solution can solve for your clients even if the clients aren’t seeing it yet, even if it might take you 3, 4, 5, 10 years. Keep pushing through and persevere and get with mentors who can coach you and encourage you along the way.
Thank you so much for watching this video and giving me a chance to share a little bit about my mom about my story about how I learned about the Deferred Sales Trust. If we can help you in any way going to CapitalGainsTaxSolutions.com To learn more about how to escape feeling trapped by capital gains tax and or if you’re a business professional, you can go to eXpertTaxSecrets.com and you can learn about how to use the Deferred Sales Trust to actually explode your business whether you’re a primary realtor or a primary home realtor, luxury realtor, commercial real estate broker syndicator financial advisor business broker, the deferred sales trust is a great solution to defer capital gains tax with that I appreciate you watching the video everybody.
Closed Deal Story
Can I Save Capital Gains Tax When Selling Cryptocurrency? The answer is, “YES.”
Silicon Valley Technology Expert Finds A ‘Deferred Sales Trust’ To Break Open A Clear Path To Sell Cryptocurrency To Defer Capital Gains Tax
Can I save capital gains tax when selling cryptocurrency? The answer is, “yes.” About 7 years ago, Peter and his wife purchased their first Ethereum. Who would have anticipated that the value would have increased by thousands of percent in just a few years? Peter, who has worked in the technology field for more than 20 years, saw a great opportunity to sell in late 2017, however, without a clear legal plan to defer the large capital gains tax, found himself feeling trapped by the consequences of selling.
Peter held on to his belief in the fundamental value of ethereum and the potential business opportunities it brought to end-users during the 2018 crash when the value of ETH fell from $1,432 to below $90. “That was a tough pill to swallow,” Peter continued. Fortunately, everything returned in 2021, and much more. In early 2021, Peter met Jessica Lanning of Lanning Financial who told him about the Deferred Sales Trust and introduced him to Brett Swarts of Capital Gains Tax Solutions. Then in May of 2021, ETH reached an all-time high of $4362. “I knew it was time to sell at least a big portion of my stock since I didn’t want to miss this opportunity again. Let’s just say it’s been a long three years since the high in 2018.”
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Want to learn more? Check Out The Blogs Below!
- Can a Deferred Sales Trust Be Used for Mergers and Acquisitions?
- How to Defer Capital Gains Tax When Selling Your Cryptocurrencies
- Need An Exit Strategy? The Deferred Sales Trust Might Be the Answer
