How To Defer Capital Gains Tax With The Deferred Sales Trust

Hey, it's Mark Pelosi, the Land Geek with your favorite niche real estate website, www.thelandgeek.com and this this guest on today's podcast is really interesting to us for a variety of reasons, but mainly because we've never really talked to a guest that specializes in what our guest specializes in. But I'd be remiss if I didn't properly introduce my co host. You know him, you love him. Scott Todd from scotttodd.net landmodo.com if you're not automating your Craigslist and your Facebook postings for marketing, check out postingdomination.com thelandgeek if you want to start learning all different types of strategies. I can't even go into all of them. Check out investor ninjas.com Scott Todd how are you? Mark I'm great.

How are you?

I'm great, I'm great. Just a quick plug. Today's podcast is sponsored by Flight School Live. Start mailing, start marketing and closing deals in three days. Scott Todd and Tate Litchfield himself In real time. It is the fastest, most effective way to start building your passive income. Learn more@thelandgeek.com Training Today's guest is Brett Swartz. If you don't know about Brett, he is the CEO of Capital Gains Tax Solutions and every year equips hundreds of business professionals with the Deferred Sales Trust tool to help his high net worth clients solve capital gains tax deferral limitations. We have a lot to unpack here. His experience includes numerous deferred sales trusts, DE statutory trusts, 1031 exchanges, and $85 million in closed commercial real estate brokerage transactions. Brett Swartz how are you?

Mark I'm better than I deserve. I'm really happy to be on with you and Scott here and I love the energy.

Fantastic. Fantastic. Well, let's just skip the pleasantries Brett. Let's just get right into it. What the heck is a deferred sales trust and why should we even be discussing this?

Great question Mark. The Deferred Sales Trust is just a manufactured installment sale. You and Scott probably and your listene no seller carryback or an installment sale. IRC 453 is the section of the tax code. But what we do is we insert this trust right before close of escrow which gives so many more benefits than a traditional installment sale and solves so many more challenges that people are faced when they're looking at a 1031 exchange. And so what we like to say is that most commercial Real estate owners, business owners and, and high end primary homeowners, they struggle with capital gains tax somewhere between 30 and 50% of their gain. And it's brutal. They feel trapped. A lot of them, and a lot of them are getting older too and they maybe want to diversify and choose something that's an alternative to real estate or a different time. And so we use this deferred sales trust to give them tax, deferral, liquidity, diversification. And the biggest thing I would stress, if your listeners hear anything, is the ability to buy at optimal timing into commercial real estate so that they can create and preserve more wealth. And if it's a business professional, so they can add massive amounts of value to their syndication partners and, or their clients as a financial advisor or business professional.

Wow. Scott, Todd, what are your thoughts?

Alright, so how do you, like, how do you, how do you do it? Like go right into it? Like what, what's the trust? What's the secret sauce?

Yep. So the first concept you have to understand is constructive receipt. Okay, Scott and Mark, so let's just do a scenario. I'm buying a deal from Scott for $10 million. And Scott, let's imagine you owned it free and clear. It's also imagine you had a zero basis, so you had somewhere around 40%. Let's just say you're in California, some depreciation recapture. So a $4 million gain. So we always start with what is your actual liability? I'm sorry, $10 million gain.

$4 million liability.

So I come to you, Scott, and say, Scott, I want to just buy your deal. Okay. In a traditional installment sale, I may.

Give you a $3 million down payment.

And you may carry a note for $7 million. In that scenario, Scott, how much actual receipt did you receive?

3 million.

3 million, you got it.

So you're gonna owe tax on that because that's what triggers the tax being due in that given year is when you receive principal balance. Now the other 7 million is in a deferral state. You've carried back a note, you became the bank, therefore it's not due. Now let's do another scenario. Let's say, Scott, I came to you and said, Scott, I want to give you a zero down payment. Would you carry a note for 10 million? Now in that scenario, Scott, how much actual receipt did you receive?

Zero.

So if you receive zero today, Scott, how much do you owe today?

10 million, 4 million.

Well, you don't owe it today. It's in a deferral state. Right, right. But it's Owed at a certain point whenever you receive back any of that principal, that 10 million. So that is in the essence of an installment sale or seller carryback. So what we're going to do here is we're going to insert this trust instead and we're going to say, you know what, Brett, I don't want to do a seller carry back. In fact, I want you to cash me out, go get a loan from a bank or whatever, bring the full 10 million to escrow. But instead what we're going to do is the trust is going to jump in and it's going to buy your position. Okay. And it's going to say, Scott, I'm going to get the trust is going to say, Mr. Trust is going to say, Scott, I'm going to give you a full note for 10 million. Would you carry back all 10 million? And you're going to say yes. We're going to immediately turn around and sell it to that buyer who's lined up and his 10 million is going to go into the trust. And this is the key here. Since Scott, you received a zero down payment and you're carrying a note for 10, you're in a deferral state. Since the trust bought it for 10 million and sold it for 10 million.

How much does it owe?

0.

0.

It bought and sold for the same price. The smoke clears, buyer takes the title the same way he would have if.

He bought it directly from you.

It makes no difference to the buyer, but it makes all the difference for you because you are in a complete tax deferral state and you're no longer underneath 1031 exchange. So you're not tied to timing guidelines. You're not tied to 45 days. 180.

We can talk about that. But I'm gonna pause about what I just talked about.

Cause that's the crux of this whole thing. How that just works. Does that make sense?

Okay, I'm following you. However, I own the trust, right?

No.

Who owns the trust?

The trustee. That's my role. So as a trustee, I'm the owner of the trust. I'm the trustee. You're not even the beneficiary, you're just the creditor. And this is how we maintain non constructive receipt.

Okay, so then you're, so then you're sitting on my $10 million because you got 10 million because the guy went to the bank and got the 10 million. Right?

So the question you're asked, you want to ask is how do I know my funds are protected and what is My collateral to actually ensure that I get paid back.

Where's the 10, where's the 10 million? I feel like it's a shell. Which shell is a 10 million under.

So the $10 million is sent to bank of New York Mellon, Charles Schwab, TD Ameritrade. You can invest in stocks, bonds, mutual funds, but the actual owner of the trust is you. Make up a name called Scott's Deferred Sales Trust. The single entity business trust that only does business with you. The funds are never commingled, but the actual owner of the trust is me, the trustee. This is how we maintain non constructive receipt, which is the crux of all of this. Okay.

Okay.

I have to be in it for business purpose. I must be able to make a profit. But that's the legality of this. We've done thousands of these, survived multiple IRS audits. But the key for you is what is your collateral to actually receive back your payments? What does that tie to? Okay, so in the first scenario, it's tied to me as a buyer. And I may or may not in a traditional seller carry back, take care of your property, you may need to foreclose. I'm neither. You're not diversified, nor are you liquid. Right. You're tied to this one person and you can maybe foreclose. And this scenario, your funds are an investment grade securities, stocks, bonds, mutual funds. The best part is you can put it back into your own commercial real estate deal up to 80% the next day. But it's not tied to one single individual. As a trustee, I can never move the funds. I have no power to, to send it to Mexico and be gone. Right. You have to sign up for everything. You have all the rights that like a lender would in any scenario that they lend on asset. You have the rights to make sure the funds don't move.

Okay, so then, so I take my funds. I can pull the funds back out of my Charles Schwab account, the one that we just set up. I can pull that back and I can redeploy it into commercial real estate that I'm gonna buy 80% of it.

Does it have to be a like kind exchange?

Not like kind exchange, Mark, because we're not in a 1031 exchange. We're an IRC 453, which are two distinct tax codes. Both are tax deferral, but both have different rules. But back to Scott's question. So we gotta define terms. I can pull that back. So Scott or Mark, if you guys have dealt with SEP iras, What you might be familiar with is a custodian. And that custodian says Scott, Mark, I'm going to be this third party custodian over here. And you can, you know, the funds can be invested in different vehicles, but as long as you don't cash out of that, then the tax is still in some kind of deferral or tax advantage state. Same concept here. Okay, so Mark, or so Scott, we're not going to send you the cash, owe the tax. Instead we're going to have you set up a brand new llc, make you the managing member of it. And hey, by the way, you're looking for partners. You may just partner with your trust and your trust may put up a hundred percent of the funds and therefore you're going to buy investment property. Then it's all in a deferral state. So you're not actually cashing out, you're just setting up a brand new LLC and the funds are being sent to that new LLC's bank account and you're buying an investment property.

So this is a way, this is a way to compound our gains. Very similar to a 1031 without paying the tax. Is that correct?

Well, I want to make sure I got Scott's questions answered and then we can talk about the differences between the 1031 and this and why you would do one over the other. But Scott, does that make sense on not actually taking constructive receipt, but rather, yes, having them into the trust?

Okay, so let me just close the loop here. So now I'm the custodian. I say, hey, I want, I'm going to go buy this new commercial real estate, whatever it is. I'm going to go buy this new thing. I'm going to take that, I'm going to partner with the trust. Trust is going to do all of the investments. Can they be a 50, 50 owner and I'm the other 50% owner?

It's even better, Scott. It's actually 98.2%. So we set it up where we're going to give you as much ownership as possible. Little to no money in for yourself personally. Although this is all of your money, it's technically all your money in this trust, Right? Right. Okay, we can say it's your money. The question is, how do you want to receive it? Well, you're gonna say, I don't wanna pay tax on it right now. I want to keep it in a deferral state. I'm gonna have a balloon payment in 10 years. I'm gonna have an interest that's earning off of it. But in the meantime, I want to be able to go buy a property and partner with my trust.

No problem.

No problem. So you literally set up a brand new llc. So you're not the custodian here, Scott.

You.

You're just. You are the managing member of a brand new LLC and you're looking for partners.

And again, you may partner with Brett.

With Mark, with Joe, with anyone else, but you might just say, I don't want all that. I just want to partner with my deferred sales trust. So that 10 million that's there, up to $8 million is available tomorrow, day 181, five years from now, to be put into that brand new LLC to go buy a piece of property, which you own and manage the same way you would have on any of any of your other deals, except you have a JV partner here.

Okay, so I'm gonna pause there. Does that make sense?

I gotcha. I gotcha. Okay. All right, Mark, you can take control of your podcast.

No, I like that you're taking control of the podcast because this is not our typical podcast. I'd say that this is a way more complex tax strategy than we typically have the podcast. So I think it's important then to take some of the complexity out of it and get to the practical piece of it, which is, whom is this for? Whom is this not for?

Yes, great question, Mark. So let's give a little bit of the demographics that's going on. Let's start the bigger context, and let's start with the macro, and then dive into the micro. So according to the American bankers association, about $17 trillion will pass from one generation to the next in the next 20 years. And this is known as the largest wealth transfer in the history of the planet. And this generation is known as the baby boomers. And there's about 77 million in the US alone. And every single day, about 10,000 baby boomers turn 65. And what are they faced with? Well, they're faced with what we call the perfect storm. The perfect storm is rising taxes, low interest rates, highly, highly appreciated property. Okay. And the desire to retire from the toilet's trash liability, from having employees, from downsizing their high end primary home. And they feel trapped. They don't want to necessarily start over with new toilets, new trash, new liability. They also want liquidity. They also want the ability to pay off debt and be debt free. They don't want to go through the 08 crisis at all, anywhere close to that. And they want the ability to access the cash, if and when they want to pay the tax, when they can't, when they do and live off that and enjoy it. I mean, they've made their wealth for 20, 30, 40, 50 years. They've worked really hard. They don't necessarily need any more wealth. They just need to figure out a way, how do I transfer it to my kids in this 20 to 30, 40 years I have left and not getting completely wiped out by 30 to 50% of the game. Okay. And so traditionally they looked at the 1031 exchange. By the way, the 1031 has become more restrictive and some in Congress think it shouldn't even be there. And they, you know, we feel really good that it stayed in, but who's to say that a new administration doesn't come in and take it away? That being said, a 1031 is great. I still do 1031s. But a 1031 has its shortcomings, and the biggest one is the fact that you have to sell high. Typically, you're selling at a good price and typically buying higher 180 days later. And we call this the candle burning at both ends. And the candle represents your return, Mark and Scott. And the smaller your candle gets, the smaller your return. Well, what's burning on one side? Well, the first side that's burning is cap rates are getting lower and also inventory is getting lower. When I say inventory, I mean value add, forced appreciation opportunities. They're harder and harder to find. Okay, so that candle is burning the other side that's typically burning, although interest rates have gone a little bit lower recently, is interest rates, generally speaking, are going higher. Okay. And so as it burns, your return gets smaller and smaller. So what ends up happening is clients end up overpaying for properties that otherwise they wouldn't have purchased if it wasn't for the capital gains tax. So the first thing is don't sell high and buy higher. Why don't you use the deferred sales trust to park the funds in conservative bonds, conservatives, conservative allocations, and wait for a deal to make sense. Oh, in the meantime, get out of debt too, because the 1031. The second challenge is you have to basically replace the debt. So if you're selling a $10 million deal and there's $5 million in debt, you basically have to buy equal or greater value, which means you're probably going to have to keep all of that debt, plus maybe buy even a bigger property. So what happens is in the 0506 run up, people overpaid, and oftentimes took on more debt and they got themselves in a tough position. So the goal here is to get them out of completely out of debt. We call it the Dave Ramsey debt free plan. Get them out of debt and have the ability to sit on the sidelines. And then, oh, by the way, go invest with Scott and Mark who have a great value add deal in a location that you know, they're out of California let's say, and you guys are out of any syndicated for that reason, is in a different geographical location, has a different specialty. They can direct up to 80% into multiple deals. So you get diversification, you get out of debt. The next one is the new depreciation schedule. Okay, so in a 1031 exchange, you're having to trade your depreciation schedule into the next deal and the next deal that's not so good. Because depreciation is one of the number one reasons to own real estate. It's gonna offset the income. So what we're gonna do with the deferred sales trust, when we set up this new LLC and we buy a new deal, we're getting a brand new depreciation schedule that's very powerful of which you could do accelerate depreciation or just live off the income there too. So for the baby boomers have owned for 27 and a half years for multifamily or 39 years for commercial, this is a very, very powerful part of the strategy. So I'm going to pause there because I know I just said a lot and make sure you guys absorb that or ask any questions you have.

I've got it. And I completely agree with you about the 1031 exchange. We used to nickname it dumb money because they had to overpay.

Especially if they're from California. You see a California 1031 buyer, you're like, oh yeah, this is perfect. Come buy my property.

So essentially this is really ideal for this high net worth individual that is looking for a legal sophisticated strategy to defer capital gains tax.

Yes.

And just so your listeners know, how do we know it's legal? If anyone ever comes to you with a new tax strategy like Brett or Scott or Mark or anyone else, you gotta ask a number of questions. How do we know it's legal? First of all, it's IRC 453. This goes back 90 year old tax law. This is longer than the 1031 exchange. It has been around. Most people just don't use the seller carryback because it's typically shortened term and it's not diversified and it's not liquid and it's not necessarily. You're probably gonna pay the tax anyways. The second thing is, how long have you been doing this strategy collectively as a group with the law firm who started this and the estate planning team? Over 23 year track record, thousands of transactions, close to 3,000 transactions now. Okay, the next question you want to ask is, how many IRS audits have you survived? And the answer is 14. Not one single issue with the structure. In fact, they did a formal audit of one of the audits on the tax attorney and the other founder who is my business partner. And basically they said, you're just doing an installment sale. You guys are being creative on what you're doing. So I would push back on you, Mark, to say, yeah, it might be sort of complex in the sense that you've never heard of it before and we're being creative on how we're doing it, but really it's just an installment sale and we're just adding this trust to perfect this installment sale. And so. But it gives you so much more flexibility than just the 1031. And oh, by the way, the 1031 doesn't work for businesses. I've yet to find someone who's done a 1031 with the business. The second thing is it doesn't work for high end primary homes. We did a $26 million deal in Newport Beach. It was a $6 million capital gains tax above and beyond the 121 exclusion.

Right.

If you live in a property, primary home, get 250,000 for the first first part of the capital gain. 500,000 if you're married, 250 if you're single. But above that, you have capital gains tax that does not qualify for a 1031 as primary home. This works for that. So we help the couple to first. $6 million. Okay. Very powerful. And then they can again put it into passive investments or even active investments if they want to do it themselves by partnering with the trust. So I'll pause there again because maybe I created more questions.

You got Mark at Newport Beach. That's you. You, you hooked them. That's the key words for Mark.

I love, I love Newport Beach, Brett. In fact, really, let me tell you.

I don't even know where you guys are located. I'm so sorry. Where are you guys calling from?

Florida.

I'm going to be in Tampa in a month for a big deal. If you guys are around there, maybe we can get together. But keep going. We digress.

So whom is this? Not For?

Yes.

Who is it? Not for? I put it in my shoes. So I'm 36. Okay. I invest in senior housing deals, multifamily, retail, mixed use, value add opportunities. If you can find a value add forced appreciation deal that makes sense right now, buy it. Do a 1031. By the way, we're a backup plan for a failed 1031. So at least have. At least have us as an option as a backup plan. We don't charge you for any of that, but go for your 1031. We don't take up any of the spots, but go for your 1031. A day, four to six, day 181, we can save that. But if you can find a value add deal, buy it. That's wonderful. We love that. Okay, who is it? Not for everyone else. If you're selling a business, you're selling a primary home. We think it's a no brainer. If you're completely charitable, Right. Do a charitable remainder trust. If you want to give 100% away, no problem. The deferred sales trust can also go charity too. You can give 20%, 50%, 100% after, it's fine. So this gives you more flexibility there. But if you want to do 100% charitable, do that. You know, you gotta get over the. Who is this Brett guy? You know, who is his trustee? Who are the people that are managing the money? Which we would just say you can use your own financial advisor, which you can. Or you can use. We have thousands of financial advisors across the US you can use those. One of them, Yeah. I mean, that's really it. I mean, maybe the tax is too small, Mark. Okay, let's say you're selling a deal for 10 million bucks and the tax is only 100,000 in liability. We're gonna say, mark, just pay the tax, take your 9.9 and walk away. And wait till you find a deal. Right. So the liability has to be big enough. Okay, so what are the ratios for every $100,000 of actual liability? That's the check you're gonna write to state, federal, and Obamacare and depreciation recapture. For every 100,000, we want about $500,000 in proceeds. Okay, so that's kind of the ratio. Our average deal is about 2.6 million, and we're deferring somewhere between 350 and 500,000 DOL liability.

Okay, got it.

So that's it. My biggest thing is I don't want people to overpay. So my story is one for Marcus and Millichap. Where I saw people get hurt. You know, I started in 06. I was still really young in college. I graduated 07 and I was at Marcus and Millichap. Everything started to crash in 08 and I watched people just get really hammered because they had too much debt and they had overpaid and they felt pressured and trapped. And so we want to just give people the tool, empower them with the tool and say you decide what you want. By the way, you can do a third.

A third, A third.

You could do a partial 1031 exchange, partial deferred sales trust, partial charitable. Right. It doesn't have to be all or the other. So it's a mix. It's a mix between what you want. So hopefully that answers the question.

Mark.

No, it really does. I think this is a fascinating topic for, you know, our high net worth listeners that probably never heard of this. And now it's another strategy that they can vet and utilize. So I don't think for the majority of our listeners, this is something that is, you know, gonna be something where they can just go out today and start setting this up. But I do think for our higher net worth individuals, the more sophisticated individuals that are doing multifamily, they're doing larger deals. This is really a phenomenal strategy that I think is worth exploring and they should certainly learn more. Scott, Todd, what's your takeaway? No, I agree, Mark.

I think that's a good summary right.

There and let me tie it to the syndicators. I imagine some of your listeners are guys that are buying properties themselves and are wanting put syndications together and correct me if I'm wrong, and add value to those partners and buy more deals. Is that correct?

Yeah.

Okay, so let's talk about from a commercial real estate, syndicated perspective. Okay, so how do you attract high net worth right now? Okay, what are you doing to separate yourself from every other syndicator out there? What are you doing to make it more flexible for people who maybe have a high end primary home, commercial real estate, or a business that they're selling that you could say, I got a nice tax deferral strategy. Talk with Brett, he'll work with you. Get your CPAs, tax attorneys to say yes, I'm not a professional on that. Get their blessing before moving forward, all those things. But how are you attracting high net worth? Right. So these folks, by the way, who is the perfect buyer for? Who's the ideal buyer for your audience? Your ideal buyer is the mom and pop who's on the property for 40 years has been very low, very generous with their rents. Low rents, no value add. And, and you go to them and you say, look, I want to buy your property. And they say, great, so does every other broker out there and every other person, but we don't want a 1031 exchange. And so goodbye. Right? So they hear the same thing over and over and over again. But when you come to them and say, hey, look, Mr. Seller, there's another strategy called a deferred sales trust, and it actually solves a lot of things that you feel about. You can get out of debt, you can be liquid, you can be diversified, you can go back into real estate if you want to. Oh, and by the way too, we can also move the funds outside the taxable estate. If someone's $22 million and greater and they're married, anything inside a taxable estate with a 40% death tax, with the deferred sales trust, we can move assets all in once, all in one transaction outside the taxable estate. But the point is, when you're, when you're, your listeners are calling these folks, they have a problem and they're looking.

For it to be solved somehow, some way.

And they haven't sold their property yet until somebody's going to solve their problem. And when you can come to them and say, look, I can solve your problem with the tax deferral strategy, that's not a 1031 exchange that you don't.

Have to start over.

New toilets, new trash, new liability. They're more likely to sell it to you. So I'll give you an example. We just closed a deal about five weeks ago in Sacramento. This is for an 18 unit apartment complex. This gentleman is turning 70 years old and he's driving up from Marin, California to South Sacramento. South Sacramento is one of the toughest locations in all of Sacramento. Okay? He's knocking on doors, 18 units that collect rents. He's fighting evictions. It's just a C minus property. He had done multiple 1031s into the property he didn't want to sell. He learned about the deferred sales trust. He said, this was perfect for me. And I said, what really made you want to do it? What changed your mind? He says, brett, I didn't want to trade 18 problems for 36 problems. I didn't want to be in debt anymore. He goes, I have so much more energy and time. I don't have to think about or drive up to Sacramento, fight traffic, try to collect rents. I was ready to retire a long time ago. This has been so great, right? That's what we give. We give them freedom from having to manage the toilets, the trash, the liability. We give them options to diversify their income stream. And if they want to cash out a portion of it along the way, they have the ability to get liquidity with four days, we call it trade plus three. As long as they're in securities, they can cash out all or a portion of it. Now they're pay tax on that when they do, but in the meantime, they're going to live off the interest. And by the way, our notes are usually for 10 years, they're usually earning 8. After fees, they're netting about 6.5% to the client. At the end of 10 years, they can renew for 10 and then renew for 10 and just keep doing that. And then their kids, it becomes a part of their estate. Their kids, when they pass, the trust itself is inside of their living trust and their kids can inherit their position as well. So I'll pause there again because I know I just said a lot.

No, Brett, it's fantastic. And I think that due to the complexity of it all, the options with it all the different strategies, it's, it's a more, you know, it's not a one size fits all type of solution. Somebody really needs to, you know, meet with you or speak with you in depth about what their tax liability is going to be, what their strategy is going to be and really learn more. Which, which brings us to our tip of the week. A website, a resource, a book, something else actionable for the art of passive income listeners to go improve their businesses, improve their lives. Brett Swartz, what do you have?

So I recently was in a disagreement with my brother and we never fight, we're like best friends. He's my best man, my wedding, he's two years older than me. And it reminded me of a book that I read years ago and I should have read it again before I talked with him. And it's called Crucial Conversations. And what I love about Crucial conversations, it talks about how to make the conversation safe, how to come and use contrasting and to slowly state your story in a way that is going to make open up dialogue versus closing people down. So as my personality type, I'm an A personality, I can be very direct and so I've got to learn the art of crucial conversation. So I could not highly recommend that book enough.

I read that book, it's a great book, but I have to tell you, it's been like years since I read that book. I'll have to pick that one up again, because all the time I'm talking to Scott Todd, and I'll think, boy, this is a crucial conversation. For example, last week he started a new shaving regimen. And I'm looking at him right now on video. I'm thinking, man, you look 10 years younger. And I wish we had that crucial conversation where I could have just said, scott, I don't want you to feel defensive, and I'm really coming from a place of genuine care, but that beard is aging you, and now you look like you're in your 20s.

Well, thank you, Mark. See, that's the application of the book. So great job.

Thank you. Thank you. That being said, I'll talk about the.

Shaving regimen later, though.

We will talk about the shaving regimen later, Scott Todd, what's your tip of the week?

All right, Mark, here it is. It is. And I'll put in the chat, too. It is deprocrastination co. Deprocrastination. Co. Yeah, deprocrastination. That's co. It is a Chrome plugin. What you do with this thing is you tell it like, hey, these are my websites that I need you to block, okay? Like, block these things. You can do it for a creative morning, or no distracting sites until noon. You can set that thing up. And if you go to one of these things, let's say, like, Reddit. Not that I go to Reddit anymore. I got fixed on that. But if you were to go to Reddit or Facebook or Instagram, wherever it is, it will block you. It will say, no, focus, my friend, focus. And the cool thing is, is that you can set up custom times too, that basically say, hey, look, it's not.

Just about the morning.

Like, if you're listening to this podcast and you're burning the midnight oil and you find yourself like, okay, I've got to work on my land investing business, but it's like 7pm at night and I get sidetracked to Facebook. It will block you. It is. It is designed to help you become laser focused.

You know what I could use this for? Scott, Tell me.

Yes.

On his surface, which he dearly loves as YouTube and Discord. And this is amazing.

But then. But then he could do the workaround, which is to go to another browser.

Oh, okay, well, good point. And knowing him, he would.

Guys, I had a little idea in my head when he said land development business. By the way, the funds, deferred sales trust, they can be used to develop properties from the ground up. All tax deferred.

Fantastic. Well, my tip of the week is learn more from Brett Swartz and go to capital gainstaxolutions.com capital gains taxsolutions.com we will have a link in the show notes to his website and certainly start looking at this very creative, very sophisticated strategy to defer your capital gains and really transfer wealth. Build your net worth even more. Because let's face it, your largest expense is going to be taxes. And anything you can do to defer that and get that compound interest, it's worth exploring more. Brett Swartz, are we good?

Yes, Mark, thank you. Thank you, Scott. It's been my pleasure being on here and I really appreciate you guys giving the opportunity to share my story.

Glad you're here, Scott. Todd, are we good?

Mark?

Yep, we're good listeners. Thank you so much. If you are getting value from this podcast, please share it with your friends on the interwebs. Also, the biggest favor you can do is subscribe, rate and review the podcast. Send us a screenshot of that review to supportlandgeek.com we're gonna send you for free the $97 passive income launch kit. Scott's Hottie ready.

Hey, and by the way, that review thing, even if it's a three star, even though we don't like those, that counts too, right, Mark?

It does, it does. But obviously we're not gonna solicit three star reviews.

No, we're not saying that. We're just saying, like, be kind to us.

We're gonna solicit honesty.

That's it.

That's it. Yeah. Now here we go. One, two, three, let freedom ring. Thanks, everybody. Thanks, Brett.