Sunday Conversation: Selling Fremont CRE with Joseph Cervantes

Joseph Cervantes Joseph is a commercial real estate expert and broker, and he will speak to sit over there because he is going he’s with a PDF commercial in Fremont, California; small world, and anyone from Fremont in here. Is anyone from Fremont besides? We got one. So my brother and I grew up in the bay area from Fremont Mission San Jose, originally, then Sacramento, but Joseph is in Fremont practicing commercial real estate. And he’s going to be talking a little bit about what’s changing in that environment. So that being said, are we ready to get going? Absolutely. Okay, thanks. All right. So we’ll start with anyone clean. And you know, for those who don’t get it and don’t know you quite yet, would you give us a little bit more about your story and your current focus?

Episode Highlights Here:

Joseph:

It’s about educating the client and, you know, going to you guys that SME, you know, subject matter expert.

Brett:

You know, sometimes 1031 exchanges don’t work out, right? And we, as brokers, want to do that as best as we can. But other times there, maybe prices are too high, or interests are too high, right, and the deal just doesn’t fit together. So, you know, part of capital gains tax versus our values is to offer the deferred sales trust as an alternative or a rescue for failing 1031 exchanges. And so, I’m curious about your thoughts on the deferred sales trust and how that can help your clients create and preserve more wealth moving forward.

Joseph:

So many of my clients are concerned about it because they don’t understand it. But as we’ve done our due diligence with DSPs, we’ve seen it as a viable solution for marriage. And it’s about educating the client and, you know, going to you as that SME, you know, subject matter expert. We appreciate it because I know we’ve had some conversations within the PDF group in your organization. And we’re looking forward to educating our clients with you on their options for DSD.

Brett:

Yeah. And to that point, too, for some who don’t know that, or the nuanced that at 1031. Exchange only works for investment. Real estate doesn’t work for business transactions, cryptocurrency exits, primary homes, or, you know, carried interest or artwork, or NF T’s. And so talking about this, the opportunity for those to invest into commercial real estate through other assets that there sound like a tech company in Silicon Valley, and to defer that tax and new investment opportunities, like a shopping center or multifamily properties.

Joseph:

So to your point, I just had the conversation today. It was a business I was putting up for sale. So we make this business opportunity sales and mergers and acquisitions. We have to do a UCC when and see which assets carry a note. The DST can be used for that, you know, that portion of those assets in the sale of the business, which allows us to really help out the client, you know, and also help the buyer in using your vehicle and educate them how the DST can benefit them in regards to not paying an enormous fee up front, and kind of spacing it out. Yeah, yeah. And you know what, I, where I am right now, is I’m educating myself through, you know, being affiliated with you. So I can educate my clients on all their options. Like right now, we’re in CL here in Berkeley, and they work with many artists. The artists are interested in how they can sell their artwork. Yeah, I just returned from a European trip and bought some artwork. So I’m going to have to talk to you about how I can turn that into an NFT and sell it one day and use the DSC solution.

Brett:

Yeah, exactly. Yeah. And those, those, those little nuances are so important. And the key is, Hey, do you put SME as the subject matter expert? And the key is to collaborate and work as a team to solve the problem and always think of it like a Rubik’s cube. And every client, every situation is a little bit different, with colors on different sides and a little bit out of order. And a part of our job is to help them imagine what congruent colors on all sides connected, right, look like. And then the next question is, well, how are we going to get there? Right? How are we going to make those shifts it’s by bringing the subject matter experts to solve that problem, whether it be capital gains tax, estate tax, whether it be, you know, a 1031 exchange, whether it be a Delaware statutory trust or deferred sales, trust, all of these things are the challenges and then you have the solutions. And sometimes it’s the combination of one or two or both. But having that guide has that subject matter expert to help you. This is part of why we love what we do.