Luxury Newport Beach Real Estate with Pierce York

April 7, 2022

Expert CRE Secrets Podcast

“Sometimes situations don't pan out the way that you want them to have always been good at figuring out how to turn them around and make it useful somehow whether that's learning from past failures or just using what actually happened.”

Pierce York started his first business "Signature Business Consulting" in the summer of 2013 with his father Keith York. He has also interned for San Diego Social Venture Partners, Promoted for Eventvibe.com, and became a brand partner with Nerium International. He received his degree at San Diego State University College of Business, in Business Management with an emphasis in entrepreneurship. He was a member of the Entrepreneurship Society at SDSU, which allowed him the opportunity to network and form relationships with many potential clients and receive advice from highly successful entrepreneurs around the world. Pierce is a focused, hard-working, self-motivated, people person, who is driven to succeed. He is open to new ideas and experiences which allow him to see opportunities and capitalize on them.

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Luxury Newport Beach Real Estate with Pierce York

Brett:

I’m excited about our next guest is a good friend of mine, and he's also a part of the Capital Gains Tax Solutions team as well as the eXp team as well that I'm a part of his name is Pierce York, and he's out of the Great Southern California city of Newport Beach. He's a luxury-focused real estate agent who can help you defer tax when selling highly appreciated luxury properties, and he's also trained and been coached in the deferred sales trust. He'll be taking over a part of the podcast as well here in the near future. Please, a welcome to the show with me Pierce York. Pierce, how are you doing?

Pierce:

Good, Brett, how are you?

Brett:

I'm doing fantastic and excited to again, introduce everyone to you, Pierce. We were just in Dallas, Texas hanging outgrowing the eXp team grown the DST education for a lot of real estate and business professionals. But besides all of that, I'm in Northern California in Southern California, would you give our listeners a little bit more about where you grew up where you're from, and your current focus right now?

Pierce:

I grew up in Sacramento and went to high school all the way through junior college there, and then found myself at beautiful San Diego State University. I got a business degree in entrepreneurship and international marketing. By the grace of God, I found myself in Rome in a study abroad program, which was just a life-changing experience, and after that, came back and started to work with signature business consulting brokering contracts between nonprofit organizations, and California state agencies, and from their move to real estate, and medical sales, and been doing investing and sales ever since. Finally, move back about a few months ago to Newport Beach to leverage the deferred sales trust in order to secure more listings in the luxury market and help out some of those people that are going to have some significant capital gains tax.

Brett:

We'll be talking all things luxury Newport Beach real estate in the Deferred Sales Trust, and how peers can help you today if you're looking at selling any friends or family members that are selling here in a minute, but I want one other step back in our story, Pierce and I want you to go back maybe to the high school days, maybe to the early college days, I see I think we've all been given certain gifts in this life, and some people come strength some people call them superpowers, I think the God-given gifts they've been given to us to be a blessing and help to others. I'm curious, what does that one be the one or two gifts that you believe you were given? How does that help how you help and bless people today?

Pierce:

I think one of the best gifts that I've been given is I'm able to figure out a way to turn losses into victories, and just sometimes situations don't pan out the way that you want them to have always been good at figuring out how to turn them around and make it useful somehow whether that's learning from past failures or just using what actually happened to just kind of move forward and use that to leverage somewhere else or wherever the case may be. I just I've always found a way to kind of figure things out when they just kind of get I don't know. Sticky I guess.

Brett:

That's good. Turn losses into victories and turning tough situations around, and I mean, I think you recently did a Newport Beach turnaround on an investment property turning Airbnb. You want to share briefly about that and what you found about that piece of property in Newport Beach.

Pierce:

In 2000 17 we bought, we bought a duplex out there, and we've been here being it ever since, and we put about 100 grand into it and fixed it up. But it in a couple of things have happened, which just, I don't know, if you own Airbnb is COVID really hurt and poor management.it was still breaking even, and it's still been an amazing appreciated investment, but the cash flow wasn't, wasn't as good as we, we had hoped, and so we're now able to we're going to live in it now and use it as our hub to kind of grow this luxury real estate market, and that's just kind of one example of how to take something that might not be so, amazing and turn it around into something, I this is gonna be really sweet because we're able to rent out the other parts of the duplex and still find a place to live and really help otherwise living down in Newport Beach sometimes can $10,000 a month or whatever, and it's expensive.

Brett:

Pierce is referring to his wife and is now three, Pierce two and a half?

Pierce:

Three in November.

Brett:

The third baby's due in November, and so how old are your daughter's Pierce?

Pierce:

Three, one, and this one will be zero. November?

Brett:

Point six here. We will be at nine months there. That's very cool. Pierce, and now let's dive into the luxury Newport Beach real estate market. What do you think is the biggest secret to understanding what's happening in that type of beach town? In the luxury real estate market? What's the kind of temperature on the market? Where do you see the market going here in the next six to 12 months?

Pierce:

I kind of see that what everyone else is seeing out here. Values, home values are still climbing, but they're kind of maybe, maybe getting to the point to where we might be turning around here soon, and not like, a crash or anything like that. But I can definitely see the market kind of turning a little bit prices have kind of gotten outrageous and no. I think a lot of smart people are kind of just like, just kind of like we before we buy again, people are paying 100, Grand 200 grand, 300 grand over asking price sometimes and it's just not. It's just not conducive to what they're trying to do.

Brett:

The market is red hot, and we're seeing valuations that are very high. We recently did a deferred sales trust deal in Palo Alto for a luxury deal. The points $3 million deal and he's facing some huge capital gains taxes, and the biggest challenge was figuring out a way to defer that tax and make sense of the marketplace, and I'm also seeing folks that are selling and moving out of California, and that's what this particular client did. He sold and moved into Nevada, and that's a common thing that we're seeing, and that Nevada selling from California, moving into Nevada, deferring that Capital Gains Tax or other states and so Pierce, I'm curious, are you seeing some of the same challenges or same migration patterns are folks selling high in Newport Beach or Southern California and moving out to other states?

Pierce:

I was looking at this migration pattern the other day, and what was interesting, though, is that he was saying that a lot of realtors are justifying the crazy prices and other markets because of just really a lot of people just moving there moving to the warmer weather and stuff like that, and they're saying, well, because these people are moving they're that the prices are going to keep going. Well, if you look at the actual migration patterns, and you look back in like 2004, five, and six, you'll see that some of those markets were actually even higher back in those days, and so the fact that they're a little bit lower, they're still consistently high Don't get me wrong places like Austin, and like rolling North Carolina and, and other places like that are supposed to be the hot markets there. They're just to find these super high prices, and they're saying, everyone is moving here now because of COVID, and all this other stuff, and if the data is not supporting that, and I still, California, especially is a lot of red. People are definitely leaving and they're going to other places, for sure. That's no doubt, but I think it's slowing down a little bit, as opposed, to really speeding up like some of these other places are suggesting.

Brett:

I agree with you there for sure, and it's interesting to actually look at the stats, and all the headlines can be a little bit deceiving. But, they're certainly moving to places like North Carolina, Florida, Texas, Nevada, Arizona, Tennessee, I've had a number of friends and family move out to the different states, and it's happening, and now let's focus on kind of Newport Beach area, and the Deferred Sales Trust. With being able to help people who are selling and looking to defer the tax and would you kind of walk through how you see the Deferred Sales Trust, helping individuals who might want to list and sell a property with you, and kind of the competitive advantage that you have to help them with that?

Luxury Newport Beach Real Estate: “I will forever believe that buying a home is a great investment. Why? Because you can’t live in a stock certificate. You can’t live in a mutual fund.” – Oprah Winfrey

Pierce:

A lot of these people have bought their homes back in the 70s 80s, and 90s and they bought them for 100 200 300 400 grant, maybe, and they've held on to them, and those, those properties have now appreciated 2, 3, 4, 5, 6, $10 million, and so with that, as a primary home, there are not too many alternative solutions for different capital gains tax, and even bigger down in here is the 40% estate tax that people get when they pass on to their heirs, and so we're able to leverage the deferred sales trust as a way to say, look like we can sell your assets that are highly appreciated, defer all the tax, we can even move it outside of the taxable estate, and because of that your children won't have to pay this 40% debt tax, and they'll be able to live off the cash flow, and then reinvested in other things that they decided that they want to do a little bit later. The flexibility, cash flow, diversification, optimal timing, all the benefits that you get from a Deferred Sales Trust, and so we're leveraging that to kind of come in and provide a lot of extra value versus just, I want to sell your house.

Brett:

Let's do an example of that. Let's imagine you own a property in Newport Beach and let's say you bought it for $500,000. Let's imagine you're married and you live there for 20 years, and as Pierce said, it's rapidly appreciated up to let's just say 10 million to keep it simple, and that also imagines you put about a million dollars of improvements into the property, and the first thing to understand is your adjusted basis where that's at, and then also look at where the, what the gain is above that, and in this scenario bought for 500, he put about a million into it. Now you're at 1.5 and adjusted basis, and then let's say you, you're married to the last five years, you have what's called the 121 exclusion. Now you're at 2 million, as kind of, let's say, as the number. Now, from two to 10. That's a big gap, it's an $8 million gain. In California, it's about 33% of that gain would be taxable. state and federal, and that so does the math there, that's approximately $2.64 million, about $2.6 million. Here's what you're saying that you can come in, you can help them sell it, and then defer that $2.6 million, that what you're saying.

Pierce:

I was just gonna say, I could come in and literally sell the house for a million dollars less than another agent and still net them 1.6 more than they would if they listed it with the top agent. Not saying that I would do that. However, that's the power of it. Because that extra gain is these people aren't talking about that, and it's a huge part and all sudden they get slapped with a 33% Capital Gains Tax and you're just like I don't know how to help you. But we do.

Brett:

That's a great point. There are certain things that real estate you're doing as far as drones and as far as social media and marketing and professional photos and all of them. Marketing and such are that is important. Because you want to get maximum exposure to get as many potential buyers to drive up the price and then negotiate and make a great deal. But at the end of the day, if someone can help net at the closing statement, an extra 2.6 million now it's going to be deferred, and it's going to be put into a trust, and you can live off the cash like, like Pierce was saying stocks, bonds, mutual funds or real estate. That's really powerful. Because that's 2.6 million more for my family, for my legacy, and it's much harder to try to obtain, let's say on a $10 million sale, someone could sell for 12 point 6 million, rather than someone who can still sell it for 10 and net an extra 2.6 million.it's, it's a powerful strategy. Now Pierce most people just don't know about this. Why don't they know about it? Tell us kind of your journey to the Deferred Sales Trust.

Pierce:

I'm just having this conversation the other day with a cousin of mine, who is like, What makes you so special about this, and other people don't? I just told him, honestly, I don't know, I was just God put me in the right room at the right time with the right people, and I was just smart enough to shut up and listen, and I really can't say anything more than that. Because they've they've done a really good job it. I don't want to say keeping it secret, but keeping it really proprietary, and they have not really it's kind of been like one of these under the radar. kind of keep it on the hush-hush strategies that no one's really taken and tried to blow up, and I think it was smart the way that they did it because they developed a proven track record. They went through the legal fire of the two formal audits, they went through the 12 no change audits that were just random. They went through the FINRA and it just gives it such a good foundation to and track record you don't have to be the Pioneer with the arrow in your back now, and I feel like, in the next five years, people are gonna know about this all over the place.

Brett:

We couldn't agree with you more appears very well said, by the way, you can learn more about Pierce York at KingdomLuxuryRealty.com at KingdomLuxuryRealty.com, and the cool thing that you work with Pierce, you also get to work with with our company because he's a part of Capital Gains Tax Solutions as well, and our goal is to try to bring a dream team to you to help you understand these Deferred Sales Trust the 1000s of closes the billions under management, the over, Pierce set over a dozen no change IRS audits, and it literally has a perfect track record. But you're right, there's like a double-edged sword with knowing about it and then having to get into the wrong hands, and so part of that is keeping it more project more protected, and the other side of it is getting the word out. But we don't we want we make we work with a lot of law firms, a lot of CPAs a lot of financial advisors across the US but we're very protective of because we don't want to give our secrets away, and by and then be given the secrets of those who created it away. As well as having into the wrong hands when somebody messes it up, or abuses it or takes it too far, and so it's but at the essence, it's just an installment sale. If you're wondering about the deferred sales trust, you can carry back paper for the trust in exchange for a period of payment over time and slowly pay tax over time. Not unlike kind of like an IRA or a 401k or 1031 Exchange, and by the way, you can learn more about that you go to KingdomLuxuryRealEstate.com it's KingdomLuxuryRealEstate.com. Pierce, all that being said, Are you ready for the lightning round?

Pierce:

Yes.

Brett:

All right, knowing what you know now if you'd go back to your 20-year-old self what's the one Golden Nugget Make sure to tell yourself to do? Yeah, start earlier. What would you start earlier?

Pierce:

My life instead of being in college and focus on the weekends get out there and start grinding? Really take education seriously. Not waste my time to waste a lot of time in college. Smart.

Brett:

Second question, what's the one book you recommend or give the most in the past year?

Pierce:

Extreme Ownership, Jocko Willink, and Never Split The Difference by Chris Voss.

Brett:

It's a wonderful book. Third question. What's the number one leadership quote or theme that you strive to live by?

Pierce:

There are so many. There are so many, I think I think taking Extreme Ownership is the one that I've really been focusing on these past couple of years. Not making excuses and just taking responsibility for the problems that come up and trying to find solutions is not just blame, but the key is to find the solutions to fix problems.

Brett:

Beautiful, love it. Next question, what are you most curious about right now?

Pierce:

Just where we're going the entire country where we're going how this whole situation is going to play out what they're going to do with 1031 what they're going to do with a stepped-up basis what they're going to do with the state tax there's a lot of really interesting potential things coming down the pipeline that we could be really well-positioned for, I couldn't do that that goes for sure.

Brett:

The largest wealth transfer in history is the planets happening and being in the front lines to help people with that that's what we're focused on here. Pierson I and so the last question appears after grown your family to two almost three daughters, right, being married now for a few years studying working real estate for over five years and buying the Newport Beach duplex being a part of eXp Luxury agent and then starting the deferred sales trust after all that success, how do you stay centered in your values? How do you stay encouraged to charge forward to reach new goals?

Pierce:

I just try to stay focused on Jesus and just make sure that staying humble and not letting a little bit of success get to your head and get arrogant, and just really try to make sure that we're doing things that are above reproach and just make sure that we're just being good examples because the few times that you haven't or you do something stupid and you get caught and you kind of you disappoint the creator and that's a that's not a good feeling. Definitely making sure that we're doing things on the up and up.

Brett:

Living for the internal versus the temporary, Pierce. Well, piers want to thank you for being on the show shared a bit about your story for being part of the eXp family as well as the capital Gains Tax Solutions family. I am extremely excited about your future you're in everything and we're going to achieve help a lot of people together, and I want to encourage you to keep turning losses into victories and turning things around for individuals who have challenges in their real estate in their wealth building, and I couldn't be more excited to do with anybody else here so thank you so much. Brother and so for those who want to get in touch with you because you reminded me one last time was the best place for them to find you.

Pierce:

KingdomLuxuryRealty.com. Also, you can email me at pierce.cgts@gmail.com for Capital Gains Tax Solutions, and reach out to me there.

Brett:

You can also find Pierce on LinkedIn, Facebook, all the socials. He also has that with his beautiful family, and so check that out as well. Instagram Facebook, and with that, I want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them struggled clarifying their Capital Gains Tax Deferral Options, not having a clear plan is the enemy, and using a proven tax deferral strategy such as the Deferred Sales Trust is the best way for you to sell highly appreciated luxury real estate and if you're selling at Newport Beach, your person your guy please please please, please take a peek at Pierce York to help you with a navigating all of those challenges with Capital Gains Tax and selling your luxury home. Please rate review subscribe. We so appreciate everyone out there in the Capital Gains Tax Solutions world as well as the eXpert CRE Secrets world and we hope to talk to you again real soon thanks.