Brett Swarts, is the Founder of Capital Gains Tax Solutions where he serves as a Deferred Sales Trust Trustee and has closed over ½ Billion in DST’s and Real Estate. He was the first to help Bitcoin owners exit millions of gains and defer their capital gains tax using a DST. He is an Author of Amazon #1 best seller of Building a Capital Gains Tax Exit Plan. He brings a unique approach to capital gains tax exit planning using the DST, real estate investment and wealth management.

Subscribe to EOFire

Apple | Spotify | iHeart

Guest Resources

Capital Tax Gains Solutions – Multipy Freedom and Impact Using Using a Deferred Sales Trust.

Brett Swarts Web Page – Check out Brett’s page and find links to his Youtube channel, Podcasts and Books.

Build It To Billions – Check out Brett’s Podcast.

3 Value Bombs

1) The key is to slow down, prepare and do a little bit of planning.

2) When you are going to real estate it is important to have a 3-dimensional view of the cash flow, tax flow and debt flow.

3) Hire the ”who” and don’t be the “how”. Hire the team that excel on things we are not great at doing.

Sponsor

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: Innovative Methods for Maximizing Investment Returns While Minimizing Tax Liabilities

[1:26] – Brett shares something that he believes about becoming successful that most people disagree with.

You need to work harder on yourself than you do in your job if you want to be successful.

[2:49] – Brett talks about his humble beginnings as a broke CRE real estate broker wannabe.

He got into the tax game not by choice but by fire. He started as a real estate broker wannabe trying to help people buy and sell multi-family real estate properties in 2006 when things are going well. Everything came to a crash and halt in 2008 and he went from making a little bit of money to nothing over night and learned the hard way to build wealth.
Seeing his friends and family lost almost half of their wealth on that crash, it made him think that there must be a better way for entrepreneurs on real estate than overpaying for properties. During this pain, they reflected on a better way to do it.

[4:42]– Brett talks about the massive problem of an $84T that entrepreneurs and baby boomers might face over the next 17 years.

Government spends $35T today which means we all have a tax problem. According to banks, $100T will be transferred in the next 17 years mainly for the baby boomers who owns commercial real estate and businesses and likely is the most amount of wealth that’s going to be transferred.
Entrepreneurs are stuck and not sure of what to do if they will sell, retire or start a new business because of capital gain taxes and considering that this transfer is going to happen in the next 20 years.

[7:10] – Brett shares why he believes we need to be building a Capital Gains Tax Exit Plan with the mindset of tax flow and not just cash flow.

Imagine building your business for the 5-20 years, amassing millions of dollars of revenue just for the government to take 15-20% of their closing. That’s why he wants entrepreneurs to focus on a tax flow mindset.
A lot of entrepreneurs are stuck on selling their business to millions of dollars but they don’t spend 5 hours to build a capital gains tax exit plan prior to closing their business that will net them 20-50% more that can work for them and compound their wealth, impact and freedom.
The key is to slow down, prepare and do a little bit of planning that can make a huge difference.

[9:17] – Brett gives an example of a capital gains tax exit plan.

California, New Jersey and New York has 40% capital gains tax on that amount but it can be as high as 65% or it can be lower too. If you build $100M and you want to exit with no planning, expect $60M to work with but if you do a little planning, you can have a full $10M working for you. Defer the tax and let the money work for you. Think of it as an interest-free loan from the government.
The idea here is to preservewealth for ourselves and create more jobs which means more tax revenues.
One thing that you can’t do is to go to your primary home or any personal consumption because that is taxable.

[11:48] – A timeout to thank our sponsors.

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

[14:34] – Brett talks about some techniques for leveraging real estate to build true, lasting wealth.

You have to understand what is the clear outcome to that investment.
When you are going to real estate it is important to have a 3-dimensional view of the cash flow, tax flow and debt flow.
Focus on buying well for the right reasons and understanding what its about.
For example, buying a multi family property today , you had a bonus appreciation of abouit 60% and you can use it in a way to offset active income. This is a tax flow mindset.
Find something that you can add value to and where you hold some keys to the control. Not just giving up the ability build the wealth by giving it to other hands to manage the property for you.
Have the team members with their local expertise to do that. People get in trouble because they don’t have “the who” and just make themselves all “the how” and they get frustrated.
Investing passively with those experts who are experts on the field.
He built his business focusing on capital tax gains solutions and his real estate holding all has passive operators because he doesn’t want to be active.
They become passive investors to some of the best in the world and let them do the scaling. They invest in jobs that are growing and has huge massive migration.

[17:53] – Brett shares another practical tip for investors who are looking to navigate complex tax landscapes.

Hire the ”who” and don’t be the “how” and realize that sometimes your CPA is not the “who” all the way and they’re not going to solve the massive capital gains tax who can help you with the large exits.
Find someone not to replace them but to add to the team that can give you great wisdom to decisions. Grow your inner circle to help you with this.
The government will continue to spend and our taxes will go higher and higher so we’ve got to be proactive. Have a plan and have the team members .

[19:39] – Brett shares his unique approach that combines that combines financial strategies with real estate expertise that provides a comprehensive view on wealth-building.

Don’t forget the basics. As you are scaling and building, you’ve got to find a way to buy back your time because there are different seasons of the entrepreneur.
Make a difference in your long term future and set your life around that.
Hire the team that excel on things we are not great at doing.
Plan and intentionally do it.
Look at the long term view and take small steps at it.

[21:44] – Key takeway

Grow and not take it for granted and be intentional about it.
Few people have the will to intentionally win.

[23:24] – Call to action.

Capital Tax Gains Solutions – Multipy Freedom and Impact Using Using a Deferred Sales Trust.
Brett Swarts Web Page – Check out Brett’s page and find links to his Youtube channel, Podcasts and Books.
Build It To Billions – Check out Brett’s Podcast.

[23:20] – Thank you to our Sponsors!

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!