As a real estate professional representing high-dollar clients selling highly-appreciated properties, you know the value of increasing your listings. You also likely know that the price of homes alone surged by an astounding 19% last year and is predicted to surge even more in the next five years.
Obviously the real estate market is alive and quite well. But do you sense that owners of highly appreciated real property are nevertheless hesitant to sell? If so, you’re undoubtedly right. And the number one reason they give for their hesitancy is the amount of long-term capital gains taxes they fear they will have to pay if they do.
What if you could offer them a safe, legal and tested way to defer their capital gains taxes almost indefinitely, while guaranteeing them a stable monthly income after the sale? You can. How? By becoming a Reef Point Partner, which, in turn, allows you to offer your clients the Deferred Sales Trust.
What is the DST?
The DST is a proprietary installment sale strategy offered only by the Estate Planning Team and its affiliates. It is compliant with Section 453 of the Internal Revenue Code, that not only authorizes installment sales, but also allows taxpayers who use them to spread their capital gains taxes over the life of the installment sale contract.
Unlike a conventional installment sale, however, the DST provides your clients with many additional advantages, including the following.
- Ability to convert an illiquid asset into a liquid one
- Ability to diversify into any “prudent” investments of their choice
- Ability to determine the terms of their installment sale contract
- Ability to begin receiving immediate monthly payments needed for retirement
- Ability to eliminate their ownership risks
Not only does being able to offer your clients all this and more add value to your current services, but also puts you head and shoulders above your competitors.
Your Partnership Role
Your main role as a Reef Point Partner is two-fold: to begin the DST conversation with your clients and then to qualify them for it.
To accomplish the first, you will need to know why your clients wish to sell. Their reasons may include such things as these:
- Their health is beginning to fail.
- They want to make a lifestyle change.
- They want to reduce their stress of ownership.
- They want to focus on new challenges.
- They want to create stable passive income.
You will also need to know why they nevertheless hesitate to sell so that you can address those issues with them and allay their concerns.
Accomplishing the second role is quite straightforward. The DST qualification guidelines include a minimum viable transaction, meaning a sale involving at least a $250,000 profit or $80,000 in capital gains tax liability.
Our Commitment To You
Be assured that when you become a Reef Point Partner, we don’t just say, “Thank you very much for your referral” and leave it at that. No, we provide you with full support, including the following:
- A comprehensive marketing plan
- Customizable marketing materials
- Seminar tool kit
- Client PowerPoint presentations
- Access to personalized lead generation websites
- Frequent training webinars
Want More Information?
Contact Reef Point today for additional information on how becoming a Reef Point Partner can increase your real estate listings while solving the tax and other concerns of your high-dollar clients.