As a Realtor representing high-asset clients wishing to sell their properties, you have many responsibilities. The higher the property value, the more complicated these responsibilities usually become. Your Realtor certification gives you the advanced knowledge and training you need to broker these sales, but it doesn’t give you everything. It doesn’t give you the ability to offer your clients exactly what they need to safely and wisely defer capital gains.
A Reef Point partnership does. We are one of the few companies authorized to provide the Deferred Sales Trust (DST) to these types of individuals. By partnering with us, you, too, can offer this legal, tested and proven tax strategy to your high-asset clients.
What is the DST?
Not to be confused with a Delaware Sales Trust, the DST is a proprietary strategy based on the installment sale method authorized by Section 453 of the Internal Revenue Code. But the DST is not an ordinary installment sale. Rather, it eliminates the collateral, prepayment and foreclosure risks inherent in a conventional installment sale contract.
The DST is offered only by the Estate Planning Team and its affiliates, of which Reef Point is one. Furthermore, Greg Reese, Reef Point’s founder and principal, is one of only 13 approved Independent DST Trustees in the country.
How Does the DST Work?
The DST process begins with you and your client meeting with the Estate Planning Team prior to the sale of his or her highly-appreciated asset. Based on your client’s overall investment objectives, risk tolerance and payout preferences, the Team’s attorney drafts the DST. You then complete any marketing and sale finalization needed.
Instead of selling directly to the proposed buyer, however, your client sells the property to the DST in exchange for a secured installment sale contract. The DST’s Independent Trustee then sells the property to the designated buyer for the exact same amount. In this way, the sale triggers no actual or constructive capital gains recognition by your client.
Reef Point Partnership Benefits For You
When you become a Reef Point Partner, you receive the following benefits:
- You add value to the services you offer your current clients.
- You can market to more prospects.
- You gain an advantage over your competitors.
- You can generate a new incremental revenue stream.
You can also rely on Reef Point to completely support you by providing you with such things as the following:
- In-depth education on all facets of the DST
- Marketing resources
- PowerPoint presentations to share with your clients
- Seminar tool kit
- Personalized lead generation
- Regular training webinars
- Collaboration with you, your clients and their financial advisors
Reef Point Partnership Benefits For Your Clients
The DST offers your high-asset clients numerous benefits, including the following:
- Capital gains tax deferral
- Investment diversification
- Stable cash flow
- Increased retirement income
Intrigued and Want to Know More?
If all of the above appeals to you and you want to find out more about the benefits of partnering with Reef Point, contact us today. Greg Reese will be happy to answer any questions you have, and also give you a free DST analysis.