Brett:

Well, it's a cool book, and it's one of the concepts in there like, you are responsible for, for the success of everything.at some point, your leadership fell down, and I'm talking to myself would say you, I don't mean just you. But for me, Brett, as well, or anyone who's leading an organization? And it ends and starts with you, and so you either didn't do something beforehand, or you're doing something now, that is not leading the team correctly. With Extreme Ownership, things can really move forward. We got pretty tactical there. Now let's move into a little bit of the Macro. What's the biggest challenge facing realtors in this industry at this time, this day in time?

Kyle:

I mean, the biggest challenge right now is that everyone thinks his real estate market is so good, and I'd argue that it's one of the worst I've ever seen, and a lot of people will be like, how can you say that? That's crazy? Oh my god. No, it's the worst because we've got more realtors than houses. We've got the least amount of supply we've ever had. We've got one-half of the transaction that becomes disgruntled and can't get what they want being buyers, and we have sellers that are getting numbers that are just somewhat grievous in the sense that they're not appraising banks on lending on them, and you're having buyers that are getting remorse and you're gonna you're gonna really see going to start to see a pullback in the market, because seller buyers, at some point are going to say, I'm overpaying. I overpaid at this point, I need to let this house go, and that's the concern I have. On the macro level, it's purely a function of lack of supply, increased demand, low-interest rates, which all push for a really strong seller market, but make the market so inefficient, and put a put decision, make the market in a situation where the leverage is so tilted on the seller side. It's just not an equal playing field.

Brett:

Very well said so much there. More realtors in houses, what really sticks out to me, and in the fact that sellers are getting just outrageous prices. I'm in California. You're in Rhode Island? The coastal cities,. Some of the highest prices are the best way to put it we've ever seen, and it doesn't seem to be slowing down per se. It depends on I guess, what micro-market you're in. But all who wins in this scenario, then who's the winner.

Kyle:

Who wins is the seller that takes advantage of the market because it's so strong, that doesn't have to buy and sell high to buy high, they sell high and either go live somewhere for free or sell high and rent for a short term. The other winners are the investors that make very quick short-term flips that benefit from a market that continues to trend upward, and then the only other winner really is that agent that's able to withstand this market and wait for things to change and build a buyer database that has so many buyers when the market goes the other way. They're going to be in control of the market.

Brett:

I couldn't agree with you more. Here Capital Gains Tax Solutions, we focus on selling high in buying low, our parents taught us to do that, and now, as a part of that, there's a thing called a 1031 exchange. Kyle? I'm curious, what's been your biggest frustration, or your client’s frustration regarding the 1031 exchange or capital gains tax deferral.

Kyle:

I mean, the frustration now is that Biden might eliminate 1031, from everything I hear is that there's a that's on the chopping block, and I don't know where that went, or if it happened. But at the end of the day, I have a background. I have my CFA. I also have my MBA in finance.I came from that world. I understand that space a little bit as far as the investment side of the equation. But a lot of the investors, when they're doing these 1030 ones, yes, they're deferring taxes. But at the end of the day, are you deferring taxes with overpaying on another property? You just sell high to buy high just for the fact that you're deferring taxes? And then what's the cost of capital? What does that look like for an investor? Yes, you defer the 20%? Capital Gains tax? But are you paying 30% above the market value, where you probably would have been better off to sell and pay the tax? Or could you have, by some sort of tax strategy, that tax on that property by either increasing your cost basis by the amount you put into it? Or whatever that looks like? There are a million different ways to skin the cat?

Brett:

We call it the shotgun wedding call. You got to get engaged in 45 days and married within 180? You sell high and you buy higher 180 days later. Take on more debt equal or greater value, and you love to be a seller, but you hate to be the buyer, and this is what happened in the 08, 09, 010 crash people in 040506 love to be sellers and hate to be buyers, and then the music stops, and you're exactly right. They overpaid. They didn't have enough diversification, liquidity, they had too much debt. Kyle, is there a way to defer capital gains tax sell high and buy whenever you want, would that be of value to you and your clients?

Kyle:

I mean, that would be huge. I mean, personally, I do a lot of investing myself, and I don't do the 1031. Because I don't want to have that shotgun wedding. If I have to pay the taxes, it is what it is. I'll move on and find something else. But I think the capital gains deferred tax deferral would be huge. If there were a way to do it, where it made sense as far as the overall picture.

Brett:

And what if that way also Deferred Capital Gains Tax on the sale of cryptocurrency, high-end luxury primary homes, businesses, in other words, remember the 1031 and only applies to investment real estate, and you're absolutely right buying is proposing a potential elimination or reduction of the 1031 exchange, which essentially means they're going to take only 500,000 of gain for the 1031 and allow you to do that. But he's also proposing a doubling just about doubling the federal from 20 to about 40% of the capital gains tax rate, eliminating the stepped-up basis. There are so many challenging headwinds, but if there's a way to defer tax on cryptocurrency, primary luxury homes, save a failed 1031 exchange public or private stock? What would that mean for you and your clients to go?

Kyle:

I mean, it would, it would make much more money, the velocity of money and the movement of money and the ability for folks to transact more frequently, I think would be great, and it would make it would be a really solid market. I mean, it would be really, it would take away that hesitation that a lot of folks have that don't that they won't sell so a lot of people become Penny Penny foolish, right where at the end of the day, they won't sell because they want to play a game and you see in crypto a lot, especially folks that held on when we had the crash recently in the last few weeks. I owned a lot of Bitcoin. I own a lot of ADA, I own a lot of Ethereum, and I sold all of it the day after Saturday. I live when Ilan Musk was on, and I said I'm going to lock these gains in I had about 100% 200% gain. I had a really solid gain there and I said I'm gonna lock these in and not be the guy holding the bag, and since then, I've gotten back in, but I think a lot of folks don't sell because they're scared of capital gains. But I say to people all the time, well, you don't have to worry about it again if you have a loss, so you can pick either way. I mean your choice.

Brett:

I have never met before until just 10 seconds before the show started, and so he probably hasn't, he's so busy. He's selling 500 homes a year. He has an upright probably know what I do, but we help people call we do a thing called a deferred sales trust, and the passion behind that was the oh eight crash when people really got hurt, and we found out that there's something that's not a Delaware statutory trust is not a 1031 and it works for cryptocurrency. In fact, we're doing an aetherial case right now at the $12 million theorem case. They bought it for $100,000 just a couple in the Bay Area $100,000 over about five or six years. Okay, it jammed up to $6 million. 2017 they're giving high fives. But they're looking for a tax deferral strategy, and just like that, you're saying before, they're not selling because they don't wanna pay the tax, they can't find anything in 2017. Guess what? Things crash. Now they're now they're upset. Now they're bummed. Well, guess what, 60 days ago, it went up to about nine and a half million. Now they find us and they're like, Oh, this is amazing. We want to defer our tax, they ask them questions, ask them questions, it goes up to 12 and a half million, then it cut back again. This window here, we're still gonna sell, they're still gonna do great. But the point is, they're going to sell and defer about five to $6 million of capital gains tax. But here's the transformation. Once the funds are in the trust, guess what you can do with them? Well, you can buy an investment, real estate, multifamily property that gives cash flow, what does that cash flow do for them? Well, even five and 6%, out of 10 million, never have to work again. It's right there work 50, 60, 70 hour weeks, and it's a lot. Now you have a chance to just transform your wealth, transform your time, and your energy. That is what we do here at capital gains tax solutions, you can go to capital gains tax calm and learn more about the deferred sales trust. That being said Kyle, even questions that.

Kyle:

I think that's a good strategy. Obviously, that's super helpful and can be helpful for folks in that position, and it can avoid that. I don't want to sell because I want to I don't want to pay taxes. I think that's a great strategy to have in the strategy for people to implement, and we can definitely talk offline about that.

Brett:

And then the last one, which is luxury homes, we just did a house in Palo Alto, it was a high-end $8.3 million sales, and as a real estate professional, the 1031 exchange does not apply to primary homes, rented out. Well, the deferred sales trust works for a primary home. He sold the home, deferred the tax, and moved otherwise without that you'd either have to move out for two years and try to do 1031 which he did not want to do or just not even sell the house. This works for primary homes as well. All that being said, Kyle, are you ready for the lightning round?

Kyle:

Go.

Brett:

Alright, knowing what you know now if you go back to your 25-year-old self, what's the one Golden Nugget you make sure to tell yourself to do?

Kyle:

Don't worry about the money right now. Get the experience.

Brett:

The number one book you've recommended gifted the most in the past year? Can be podcasts because you say you don't really read books.

Kyle:

No, but the one book The Automatic Millionaire by David Bach, is something rather great one of them is probably the last book I've ever read.

Brett:

Automatic Millionaire. Third question, what's the number one leadership quote or theme that you strive to live by?

Kyle:

“be better today than yesterday and better tomorrow than today.”

Brett:

What are you most curious about right now?

Kyle:

What is in it for me next? What's the next big play?

Brett:

What's the biggest obstacle facing your real estate business?

Kyle:

How do I leverage myself to overcome somewhat of a ceiling on the number of transactions I can do personally?

Brett:

What's the biggest opportunity you see for your real estate business coaching? Awesome. This is true, this is the fastest lightning round ever been on. This is, by Kyle's call it, 100 deals. I'm just used to moving like that. He says, listens, this is, you're getting a glimpse into Cal here, which I love. I get some guys, I got a lightning round. I couldn't ask him two and a half questions. I'm like, wow, this is hearing the lightning round. They're just going on. Okay. This is the last question, then we'll let you go. Using cheat all your success, you've helped so many people, you've been the number one in Keller Williams multiple years, you're probably gonna be the number one in century 21. You're very successful with what you do. You're at the top of the industry. After all that success, Kyle, how do you stay centered in your values, and stay encouraged to reach for new heights?

Kyle:

You need to put things in perspective and understand that what you've achieved can be here today gone tomorrow, and it’s appreciated the opportunity that you've been given and the gifts that you have and take that to a level and take that to a level that unfortunately a lot of people don't have an opportunity to and really fulfill everything that you have inside of you everything that you're meant to be and just really say, complacency can happen when time is up and the time is not up yet. At that point, you do everything you can to be the best version of yourself.

Brett:

Amazing attitude of gratitude and realizing that yesterday is not promised, not promising results today, and going after it and keeping building on what you've been given. Don't take it for granted. Absolutely love Kyle. Kyle, for our listeners who want to get in touch with you. What is the best place for them to find you?

Kyle:

I would say for me, I mean, my phone rings all the time. Why not another phone call or text message. You can call me or text fee at (508) 726-3492, or you can email me at kyle@seybothteam.com or you can visit seybothteam.com, but I'm always accessible. We've got other real estate agents that have questions I get, I get people to reach out all the time. Try to do it on a Saturday or Sunday. During the weeks it's crazy.

Brett:

By the way, Seybothteam.com is the website Seyboth this the last name, team.com, Kyle Seyboth thanks for being on the show and encourage you to keep using the relentless work ethic and hunger and practicing perfect practice making perfect and in helping your team helping your clients and keep using the gifts and talents you've been given to make a difference in this world. I appreciate you being on the show and also want to thank our listeners for listening to that episode of the Capital Gains Tax Solutions Podcast. As always, we believe the highest net worth individuals and those who help them struggle with clarifying their Capital Gains Tax Deferral options not having a clear plan is the enemy and using the deferred sales trust to sell your cryptocurrency high in primary home business save a failed 1031 exchange is the best way for you to exit your highly appreciated asset you can go to capitalgainstaxsolutions.com that's capitalgainstaxsolutions.com to learn more, and if you're a business professional and you want to learn how to how to use this Deferred Sales Trust to actually grow your business like this is a lot of tax talk and it's it seems kind of complicated, but guess what we have a coaching program for that. It's called experttaxsecrets.com I'm going to literally try to download my brain in my experience into your brain so you can grow your business I want to give you all my secrets away, and squads called expertcresecrets.com that's expertcresecrets.com. Thank you so much for watching or listening to this show. Please rate review, subscribe, we cannot grow without your support, and we saw appreciate any likes, any shares, any tags, tagging anybody on Facebook, on LinkedIn, on YouTube, all of those things are really helpful. Thanks, everybody. Have a great day. Bye now.