Brett:

Absolutely. I remember Marcus and Millichap you bring people in, you train, you coach them up, you get them going, just to find that within three to three to five deals, they’re at your competitor right next to you, or be the last the entire company and other competitors of Marcus and Millichap separately, but we just gave all of our secrets for the last a year and a half, two years, just to see a better business opportunity, a better business model a better split or whatever it was with JLL or Cushman and Wakefield or, or CB Richard Ellis, or a boutique firm that had some cool way of marketing and doing things and a little better split or whatever it might have been. You’re like, what was that for? For a short even for the big Marcus and Millichap are like we just gave them so much just to see them walk out the door? Why don’t we align in a way where it benefits us collectively, I guess it’d be sharing a little bit more and giving value, we’re getting people paid where the value is coming from, which is directly training and coaching and inspiring those to become successful in commercial brokerage. so with the rev share, which is like cash flow, from owning like a real estate, part of our backup plan, we were talking about any commercial brokerage was to get on the other side of the phone become an owner of the properties that you’re trying to sell, so that you get that cash flow coming in. So you don’t have to rely on just closing deals and getting commissions, but go own the properties which are part of the educational process and the beauty of being a brokerage. But the second part of that or the next part of that is to get multiple income streams, why not get additional revenue from your brokerage business as you build that out, and by the way, they do that is training and coaching and bringing in and sponsoring commercial brokers. It could be Business Brokers, could be M&A advisors. Kevin, if I told you the number 10 M&A advisor is just joining, her name is Michelle Seiler Tucker. She just joined under the eXp family. She’s amazing at what she does. we’re working on a $55 million deal in Florida right now. Another one in Indiana just came up about a $6 million deal. We’re using the Deferred Sales Trust as their backup plan for their capital gains tax deferral. But what she saw was, I have an amazing brand, amazing company. But I can tap into the eXp family and build my business even greater. These are just a part of the stories. By the way, you can learn more about this at expertcresecrets.com.

Kevin:

That’s powerful. It seems like every time, literally every week, there’s a new announcement about someone joining eXp. Some powerful brands, some very successful top producers, and people are aligning their brands with a very powerful brand. When you look at business, and you look at the value of the business, it really culminates into the actual brand and that brand value has in the marketplace. So when you say we’re able to attract the number 10 M&A advisor in the country that speaks volumes about the brand that eXp is, and the fact that she recognized that, eXp is not only growing but there’s a lot of alignment, so much so that I’m ready to move my business over and capitalize on that opportunity. One thing you were mentioning, as you were talking about the issues with agents or brokers leaving and not having enough alignment there. But one of the things I heard you say was, hey, there’s such a strong alignment in this. this is something that I think and feel too, there’s such strong alignment between EXP and agents and brokers who affiliate with eXp, the likelihood or the desire or the wanting this to actually leave kind of is eliminated because you have such a great business model. We’ve talked in the past about the commission splits, and the cap in the stock benefits if you produce at a high level. So the alignment is so strong, that it dramatically reduces the likelihood of somebody wanting to leave unless they figure out that they quite are a good fit for the eXp culture. Other than that the alignment is so strong that I think it reduces the temptation for people to do that.

Brett:

Very well said. Now let’s transition a little bit into the backup plan for a failed 1031 exchange. This is the value of having a backup plan. If you’re a commercial broker out there, and you’re trying to achieve listing and solve problems for your clients. One of the number one objections especially in today’s world is, I love to sell and list with you. But I need to have a 1031 lined up or tell you what go find me that up like and then I will sell and list with you. But until they have a plan to execute on their exit strategy and the exit tax-smart is what we call it. There’s not likely to sell and list because or the worst part is you take the listing, and you go through the whole process just for them to say no because they get to the end of the table and they didn’t realize how much their tax bill was. They didn’t have a clear plan for it. so I got a call literally today it’s an $11.6 million deal. this is the value by the way of working with a Qualified Intermediary that actually knows and likes the deferred sales trust and has it as an option for clients. We have those who go to capitalgainstaxsolutions.com to learn about that. But this person calls me and their work. I won’t name the Exchange Accommodator. They call me and say, I got $11.6 million exchange, I had over 20 acres in a prime location in Southern California that I bought in 1990. My wife and I did for about $140,000. we just sold it, I think $11.3 million. He goes, I said a way to go. He was yes like we hit the lottery, we did perfectly. He goes, but now I’m in exchange, I’m past my 45 days, and I got an $8.3 million deal that I’ve got lined up looks pretty good. But I got two other deals that are looking bad. In fact, one of the apartment complexes has all this mold, all this mess of deferred maintenance. The seller thought he has me by a really tight spot. Let’s just put it that way. He’s saying and I’m asking for credit for the repairs, and he’s saying to go pound sand. He goes and I didn’t know that I didn’t know I needed a backup plan or I didn’t know that it was going to come to this but I found you on YouTube. I want to know about the Deferred Sales Trust and what can I do? I’m saying well, who are you working with? They tell me the Accommodator and I said, you’re going to have to go to them and tell them, hey, I want you to accommodate with the Deferred Sales Trust. I’m out of my 45-day window, I’m gonna pay and this deal I think he’s buying was around three and a half. I want to pay about a million dollars of tax if I don’t perfect this I don’t want to overpay. So I said, tell them that may go well, I did. They said they won’t work. I go to me, they won’t work. Well, they say they don’t cooperate. I go, this isn’t okay. Because now you’re stuck with a million dollars. So I’m asking you, you out there, Mr. Broker, or even Kevin, making sure that we’re working with Qualified Intermediaries for a backup plan in case these 1031s failed? What are your thoughts on that game?

Kevin:

Yeah, definitely. So, Brett, you’re definitely one of the experts when it comes to capital gains tax solutions, especially with the Deferred Sales Trust. But one of the good things about eXp is that we have a couple of people who are playing at a high level, and they’re very skilled at what they do. they are experts at helping people save on their capital gains, and Brett is one of the best. But having a broker that an eXp being the broker that has identified the different needs that sellers face, and then bringing, or attracting the people who can help solve those problems, and then educate the entire basically broker force on these opportunities. these challenges. That’s huge, because if you know Brett’s story, he started out where he was with a broker who did not appreciate the fact that he discovered this opportunity that could better serve the clients and the customers, and they refuse to really give Brett the time of day to craft out that message and craft out that platform and to be able to utilize it to help the people that they were calling on every single day. I find it just being connected with a lot of different brokers and talking to a lot of owners every single day, a lot of people are not familiar with the different options or opportunities that they have that when it comes to saving on your capital gains, even brokers even experienced brokers are fully aware. So they may pitch a single exchange opportunity that may fall apart, it may not quite fit the criteria, or there may be a better solution like bread will come in and provide a better solution that fits someone’s situation a little bit better. But if the broker is not aware, if the brokers are well versed, or the broker doesn’t have the relationships, to bring in those outside individuals who can help, then you as the owner, or the client as the owner, can find themselves in a situation where they hired a broker, they were doing the right thing, and they are working with maybe even an intermediary that was referred or recommended by the broker. Nowhere they are faced with a $1 million potential tax. The only thing the intermediary can say is that we’re not going to cooperate, or we’re not going to do that, which probably means they aren’t aware. They do not have know-how.

Brett:

100%. Honestly, there are a couple of options. For those who are wondering right now what can you do, first, we go to capitalgainstaxsolutions.com, and you can schedule a consultation, our minimum is $1 million net proceeds, $1 million gain. if you’re a broker listening to this, it’s your fiduciary duty to go and explore these things and try to get comfortable, try to understand the legal part of it. Our team does the heavy lifting, but we literally coach and train people every single day on this, to have this as an option for your clients. they work with Qualified Intermediaries who have done this. You don’t want to get caught without a backup plan or your sellers not having a backup plan. But the steps are essentially a first of all work with a Qualified Intermediary that already knows and has done these and we have those ready to go. So call us to connect. Number two, if they don’t ask them to transfer the exchange, see if they’ll cooperate, they’ll transfer the exchange and or invite Him in having to sign the NDA, get and try to get comfortable as quickly as they can. At the end of the day, you as the taxpayer are the one who’s going to be responsible as the Qualified Intermediary. We’re not asking them to stand behind something or provide legal tax advice. They’re just there to accommodate, and the Deferred Sales Trust, for those who don’t know, goes back 25 years, 1000s of closes billions under management. It saved countless 1031 exchanges never had a single negative result on any California deal. Any other state deal. Any 1031 extension of that saved, it’s never had a single negative result is batting. It’s batting 1000. But it’s protected. It’s proprietary. People don’t know about it. But it’s exactly the type of backup plan that we believe here at eXp commercial and it capital gains tax solutions that gives you as the broker or you as the owner of this listening to this, the leverage to not overpay for a property the leverage to sit on the sidelines and buy whatever you want the leverage to diversify, to have multiple investments with your capital. that’s the beauty of this. This is part of why we’re here at eXp commercial so we can share this. Kevin’s on the East Coast in Washington, DC, I’m in California. We’re connected, collaborating, training, and coaching people on all of these types of things. we want to invite you if you want to learn more about that, go to kevinsbreckenridge.com. Then myself expertcresecrets.com, or capitalgainstaxsolutions.com. Kevin, anything else to add?

Kevin:

I think I’ve just finished talking about leverage again, and one of the definitions of leverage is being able to control a lot with very little, and that includes technology and leveraging technology, and leverage. Also, there’s a component where the length in the strength of your lever can determine how strong or how impactful your leverage is, eXp is a very strong lever, it’s a very strong form of leverage. We’ve got 10s, literally 10s of 1000s of agents and brokers that span the entire country that span almost 20 countries around the world. literally, the company is expected to expand to hundreds of 1000s of agents and brokers around the world. So when you talk about leverage, you talk about how strong and how long is your lever, I’m not sure you can get any stronger, or even extend your reach any longer than that, and the company is rapidly growing, there is a lot of opportunities, there’s a lot of resources, we’re just waiting on you to make the decision to increase your business to increase your impact and to increase your effectiveness.

Brett:

Fantastic. So we’re gonna wrap it up by reminding you where we started which is, we want to make sure you have that backup plan. Don’t get caught without a GPS. Fortunately, we have that on our phone now, We’re using technology, we’re leveraging the iPhone or the Android to have the GPS on our phone. So we don’t have to worry about flying into a rental car place and having to rent a GPS. or we have if you’re going on that date making sure you have a plan. You also have your phone, you can leverage the phone to know the times, the movies are, and where everything’s at. All that doctor, there’s got to be an app out there that has like dogs, I’m sure there is. I was in New York just last month, and I looked like a dog sitter and we don’t have that as much here in California. But whatever it is, we want to make sure you have a backup plan whether it be for your clients, because if your own business, whether it be for a 1031 exchange, and that’s what we’re here for to hopefully add some value to you. Encourage you to consider the Deferred Sales Trust, encourage you to consider eXp commercial.