Pete Neubig: [00:00:05] Welcome back, everybody. As promised, I got Brett Schwartz with Capital Gains Tax Solutions. I'm super excited because there's obviously been a lot of consolidation that's been going on in our industry. And as I go to more and more conferences, I get more and more people asking me about my experience of when I sold my company. And so I know it a lot. There's a lot of people asking about this. So, Brett, just do a little. Do me a little favor. Just tell us a little bit about yourself and your business capital gains tax solutions.

Brett Swarts: [00:00:34] Thanks, Pete. Hey, happy to be here. Hello, everybody. Yeah, So, you know, I started on the real estate investment and development game at a young age with my parents who were building houses and in tax fornia with in the Silicon Valley and and, and always knew that I probably wanted to be in real estate at some point, but I went away to college and had a chance to play hoops in college on scholarship and then study at a place, take an internship, and studied the practice of brokerage at Marcus and Millichap. So that's what I learned about investment real estate in 1031 exchanges. And this is like 2006. Fast forward, the market fell apart and I went from making a little bit of money to nothing overnight. And I found myself in a situation where I loved real estate in the brokerage game, but it was 100% commission and I wasn't sure what to do. And at the same time, my clients, friends and family were losing half or all of their wealth with with some of the crash and not having enough diversification, liquidity. And part of that was because they did a 1031 exchange and they had overpaid for properties. And we just we just learned that 1030 exchange is not always your friend. In the meantime, I took a side hustle at a place called Cheesecake Factory nights and weekends and worked 70 hour weeks. By day. I'd make cold calls to banks and you.

Pete Neubig: [00:01:47] Got whatever you gotta do to survive, right?

Brett Swarts: [00:01:49] Yeah, whatever you had to, to survive. And that was part of the part of the journey, right? But also going, going through that, that painful season, the financial season also forged in me a desire to help people not have to go through their challenges. Now, my clients were losing millions. I was losing. I was barely making anything. But we were newly married. My wife and I. Baby, baby girl first baby girl living with my brother in his small condo and really just figuring life out from the beginning. But my clients were losing 1020 years worth of worth of wealth through real estate because again, they didn't have enough liquidity diversification and a lot of times they had overpaid for the 1031. So fast forward, I learned about something called a deferred sales trust, which we're going to talk about today, which to me is the Netflix way of exit planning that works for businesses, crypto real estate, and it eliminates the need for the blockbuster. 1031 And it's just we're solely focused on on getting the word out, helping clients close these deals, helping business brokers, real estate agents, anyone who's a financial advisor, CPA, understand how this works so they can help their clients. And it's a battle for the wealth of America, right? People are either going to pay a lot of tax as the largest wealth transfer in the history of the planet is happening right now, which is $32 trillion from the baby boomers to the millennials, or they're going to be able to defer and use the legal means to defer tax or eliminate estate tax through structures such as the deferred sales trust.

Pete Neubig: [00:03:13] Excellent. So when I'm selling a business and I get an influx of capital, what are those proceeds taxed at?

Brett Swarts: [00:03:22] It depends on what state you live in, and it depends on how much depreciation you've taken over the years. But general rule of thumb, 25% minimum up to 50% is capital gains tax and depreciation recapture. Especially states like New York, New Jersey, tax fornia. It's just huge. Other states like Florida or Texas, Nevada, these are more tax friendly state that typically have state capital gains tax. So you just want to check what's the state. Don't forget that federal is 20%, especially if you're selling something above $1,000,000. Even if your income is lower. You have to realize that because you sold something for a million, guess what your income for that year is now in that new bracket. So you're going to be hitting out with the 15. But the 20, that's an often confused kind of topic on that. So 20 and then the 3.8% is Obamacare tax. That's how we typically get that from 20 to 23.8. For states such as like Texas, that has zero capital gains tax and then you have depreciation recapture, which could be two, three, five, 10% depending on how long you've owned the property. And then you have a state tax like California is 13.3. So you just you've got to look at all of those little details, but 25 to 50%.

Pete Neubig: [00:04:40] So a lot of tax is selling a business similar as selling investment property. As far as taxing, is it basically the same?

Brett Swarts: [00:04:50] Yes, it is. Just the only thing that's going to be the nuance is the depreciation. Certain businesses, you're not depreciating, certain ones you are certain businesses have equipment that you might be depreciating at a different schedule. So the key is the question you want to ask yourself is what is my adjusted basis? What is the estimated sales price, what is my debt? And with those kind of those three things, we can give you a good estimate of what your tax is going to be.

Pete Neubig: [00:05:18] There's been a lot of consolidation in the PM industry. If someone listening to this is thinking about selling their company, what are some things that they should think through before selling?

Brett Swarts: [00:05:28] Yeah, so we're in we're in two states at all times, Pete. We're either in the state of pain or the state of purpose. Right? And this applies to our health or finances or faith or family. Right. And it's especially when we go to exit. Highly appreciated businesses, too. This is all a part of that. And some people are selling businesses because they want more time, freedom, location, freedom, financial freedom, entrepreneurial freedom, or whatever it might be for them. And there's some kind of pain that's going to maybe cause them to want to sell. But there also could be some kind of purpose that they're trying to go to. So the first thing is you want to clarify what state are you in and what does it mean to be out of that pain? And what does it mean to be moving into your purpose? And then you want to at that point you have kind of the bigger why for for for the motivation behind it. Then you want to clarify the actual numbers. You want to say, okay, what would it mean if I could increase my cash flow? I can I can work and look at tax flow as a scenario to take tax when it's efficient. What does it mean for time, energy, family, friends, all of the things that you might want to do or even start a new business. Right? And then from that point you want to reverse engineer what tool, what strategy, what team is going to help you to execute that. So those are my first steps, I would say peat to that question.

Pete Neubig: [00:06:48] So if I'm looking to sell my business and I'm looking at making over $1,000,000 and I have all these taxes that's going on, are there any tax strategies I can do to reduce my taxes overall on that? What are some strategies that you would recommend when selling the business?

Brett Swarts: [00:07:05] Yeah, absolutely. So there's there's there's deferral ways to to there's ways to defer capital gains tax on the sale of assets. The most common one you probably know of is with investment real estate. It's called a 1031 exchange where you can sell an investment property and move it into a life kind investment property. However, the 1031 exchange does not work for businesses, right? And this is why the 1031 exchange is one reason why it's blockbuster, because it only works for investment real estate where you have things like the deferred sales trust, which is what we offer here at capital gains tax Solutions. We call that the Netflix version because it allows for the deferral of capital gains tax and depreciation recapture on the sale of businesses, investment, real estate, primary homes, cryptocurrency stock, private or public, carried interest, captive insurance, LPs, LLCs, anything that you can think of that has at least $1,000,000 net proceeds and $1,000,000 gain. You qualify to use the deferred sales trust as a way to defer your capital gains tax and depreciation recapture. There's also things like opportunity zones, right, which you can place your gain into, although it takes about a ten years to to to get a lot of that benefit. And it depends on your needs for liquidity and the needs for cash flow or to be entrepreneur with the capital. There's things like cost segregation.

Pete Neubig: [00:08:35] Is that a is that a new concept or has that been around for quite some time?

Brett Swarts: [00:08:39] So it's actually been around for 26 years, thousands of closes, billions under management over 20 no change audits formal and individual audits for for for deals and yeah it's it's been tried and true never one single change to any of those audits it's batting 1000 perfect track record and lifetime audit defense provided by the tax team that we work with to to execute on these. So just most people just don't know about it. They get it confused with the Delaware statutory trust, which is also a dced. It's just it's really a Delaware. 1031 We're a deferred sales trust kind of think of it like a delayed tax trust. We're just delaying the tax kind of like an IRA, like a41k. You can park the funds into this trust and slowly receive the income back from the trust or the interest back from the trust and pay tax over time known as like an installment sale or p if you do it a seller carryback on your business or real estate, you can you can you can defer tax. And so we just do that with a trust and we work it out with the buyer.

Pete Neubig: [00:09:40] Interesting. Tell me a little bit more about the opportunity zone. So these are I think from what I understand, it's a bipartisan kind of deal that happened back in, was it 16 or something like that? And so it's a governor's decided some areas of in their estate that they're going to go ahead and re gentrify. Is that it? In a nutshell? And so they're going to invest certain amounts of money to build or to rehab certain projects.

Brett Swarts: [00:10:09] Yeah, that's a good summary and it gives the incentive for those that are selling highly appreciated assets. It can be stock, it could be primary homes. So it can be investment real estate businesses to put their gain into these opportunity zones and defer tax for a period of time. And then also on the growth have capital gains tax, zero capital gains tax, if you can hold for over ten years. So definitely some nuances there. Some of the downsides are you're typically illiquid, you're typically meaning the money's all tied into a single asset or a single project. These projects into.

Pete Neubig: [00:10:46] A hotel build or an apartment complex. Bill, It's typically real estate related.

Brett Swarts: [00:10:51] Yes, exactly. Real estate related. And it's development. And so and by the way, if you can find a good real estate deal in a good play, like by the deal based upon the deal we found in general, these opportunities, zone deals are just hard to find. Like I mean, deals in general have been hard to find for the last few years for real estate because values have been so high. And then you couple that with that, you have to basically double your investment. So if something is bought for a million, there must be at least another million put into it for the opportunity zone to be to to actually qualify. So so it's basically going to be like ground.

Pete Neubig: [00:11:29] Would be like an accredited investor at that time. Right. To actually get into the Aussie.

Brett Swarts: [00:11:33] You know, I'm not certain that you do have to be an accredited investor for Oz deals. Definitely for certain multifamily syndication or Reg D deals you do, which usually they're hand in hand, they're there one in the one one and the same. Someone's not going to do an Oz deal that's significant large build and be bringing bring in investors unless they're accredited, unless they can do it under Reg D So yeah, practically speaking, you have, you need to be accredited.

Pete Neubig: [00:12:02] Yeah I well, you know, I sold my business in 19. I got into a couple of opportunity zones when I saw my business, but my business partner, he went the other way. So he he decided that I'm going to take the money, but I'm going to go invest the money, and I think I can make more money investing it and kind of outkick the the the tax. Where do you fall on on that strategy where like just personally, where would you where do you fall on that? Like.

Brett Swarts: [00:12:29] Well, this is where I love the deferred sales trust, because you can you can be the best of both worlds, right? And this is why Opportunity Zones to us is still blockbuster. Just like a 1031 is Blockbuster Delaware statutory blockbuster. Whereas the deferred sale stresses Netflix because it gives you entrepreneurial freedom to make as much as you want on the upside by partnering with the trust and the way we structure that is where the trust owes you the money. So, Pete, if you want to break down your business deal, we'll walk you through it. If you if you don't mind sharing what maybe sold it for what what the potential tax was, or we can just use a hypothetical one.

Pete Neubig: [00:13:03] We'll use a hypothetical. Let's say we sold it. Let's say you sold for 5 million. It's not that high, everybody. It's why I'm still schlepping here, doing podcasts and creative BPM solutions. But let's say it's 5 million. You're 5050, partner, so you walk away with 2.5 million. It's a three year payout where I get 60% upfront. So I'm terrible at math now, but let's just say that first payout is about 800,000. Let's call it a million, let's call it right under a million. The first payout and then the second payout is half of that and half of that. So it's let's call it 800, then we call it 300. 300.

Brett Swarts: [00:13:39] Let's just got it.

Pete Neubig: [00:13:40] Numbers perfect. And I know that that I personally invested there's a formula that that was used because you can't invest a whole 800 in opportunity zones. You actually can only invest as a percentage of it. My understanding is you can let us know about that more so. And then I also invested in some some wetlands project, which basically was just I gifted some money to some wetlands project and I forget what the name of it is and conservation.

Brett Swarts: [00:14:09] Easements, probably.

Pete Neubig: [00:14:10] Exactly what that was. Say that.

Brett Swarts: [00:14:11] Again, conservation easement.

Pete Neubig: [00:14:13] Exactly what it was that was 90 grand that I just like literally lit on fire. So tell a little bit about the conservation easement opportunity zone and tell me everything I did wrong.

Brett Swarts: [00:14:23] Oh, gosh. So again, there's the pain and there's the purpose, Right? To me, a lot of people are making these type of conservation easements and and these opportunity zones because of the pain. And the pain is the tax. That's definitely a good motivator. But pain only goes so far. Right. And you're going like like you said, you lit the thing on fire and it's blockbuster, right? It's not really achieving what you really wanted to do, which perhaps when we start another business, perhaps put it into an investment that you actually really believe in, there's a purpose for it, right? And all of a sudden you find yourself just just running out of out of running out of time. Right? Because there's certain times you have to do these things. And having this, you know, this tax bill coming due. So so the first thing that again, go back to your purpose, what do you want to do? Well, you're an entrepreneur and you want to make good upside on your investment. You want to make prudent decisions. I mean, we could agree to those things.

Pete Neubig: [00:15:16] Again, meet. Personally, I wanted to buy more property and I wanted to start another business.

Brett Swarts: [00:15:21] Exactly. So this is where those tools, unfortunately, unless you're in the wetlands investment land business, which you're not, and unless you're running that opportunity zone, which a lot of people aren't doing, those either, they're having to passively give it up to a third, third party who could be a good person. But if you're looking to be entrepreneur, there's Blockbuster. So. So enter the deferred sales trust. Not only can you sell and defer that tax, by the way, how much tax would it be? Let's assume it's a zero basis. Let's assume you're still in New York and you're looking at a 40% tax on that 2.5 million. That's about $1,000,000, right? If you take 2.5 million times by 40%, that's $1 million dollar tax bill. So that's the first thing that's pain. But now let's talk about how we can move this.

Pete Neubig: [00:16:03] To me, that's a scary pain.

Brett Swarts: [00:16:04] That's huge, right? That's that's blood, sweat and tears for everything you built up. So instead of paying that million, this is what we're going do. We're going to move into the deferred sales trust, the deferred sales trust, and then we can do this before the close of escrow. We're going to set everything up. We're going to set it up properly. You're going to get a promissory note. You're going to lend the 2.5 million, the full amount to the trust.

Pete Neubig: [00:16:25] So I set that up after the sale.

Brett Swarts: [00:16:27] Before, before, before, before, before. It's very important because if you don't do it before, it's taxable, everything we do, we've got to set up before the close of escrow. Unless you're in a 1031 exchange, then we can we can save a failing 1031 exchange. If you're working with the accommodate for that, that's our strategic alliance that knows how to do this and actually accommodate because guess what? Most people don't want you to know about this. Most people don't want you to know about qualified intermediaries, don't want you to know about the deferred sales trust. Blockbuster probably didn't want anyone to know about Netflix. We don't want to know about that. Don't go advertising Netflix. Right? They didn't you know, now they're out of business, right? Blockbuster is gone. So now so back to this. So upon sale, you're going to lend 2.5 million to the trust. So you're taking no cash at closing and you're going to deferral state. You're 100% finance the trust. The buyer took title, they came up with the 5 million. So they're in paid off you and your partner and they got title to the business. They're gone. Your partner could take his 2.5 million, pay his tax. He's gone. Right. But your money is in a trust. And this trust owes you this 2.5 million, typically at 8%. And which is pretty good, right? And that can be completely passive. You can put it into stocks, bonds, mutual funds, you can put it into passive or active real estate or business deals. You can put it some into cryptocurrency, you can put it into hard money lending. You can go start a brand new property management business or tech company, honestly, whatever. Right. And your first return is.

Pete Neubig: [00:17:58] Self-directed IRA in that respect.

Brett Swarts: [00:18:00] Exactly. It's kind of like a self directed IRA, except really less, even less restrictions, to be honest. And I have a client who sold a $2.6 million business, a marketing business out of Alabama. And then his his he wanted to develop multifamily property in Tennessee. So he sold deferred his tax and he used a portion of that he put into an LLC where he's the managing member of that LLC and he wouldn't built with his partner about 70 units in Tennessee, ground up development, all tax deferred, no timing restriction. And on that development because he's active Pete he's able to get the majority of the upside. So that's back to what we've talked about in the beginning your partner said. Hey, I want to be able to control my destiny. I think I can outearn these opportunity zones and I can earn a lot more even after I pay my million dollars of tax. Or we would say, Hey, do all of those three things that you want to do, but do it with the trust? Because y the trust can put the million dollars that you would have paid of tax into that LLC with you, or you can turn that million into $5 million and you can get the majority of the upside.

Brett Swarts: [00:19:07] The way we structure the deal. And this is where like my brain exploded when I learned about this because I was at Marcus Millichap going, Oh, this is seems too good to be true. You're telling me that we can sell high and buy low, We can sell high and diversify. We can sell high in dollar cost average. We can sell high and just sit on the sidelines until a deal comes up. We don't have to force ourselves into this shotgun wedding with this 1031 exchange property. And that changed everything for us. And this is this is why we're here, to help give people the entrepreneurial freedom, the financial freedom, the location freedom and the time freedom. At certain point, you may not want to have to do any of these real estate deals, and you can trust us to put it into investments that you approve as the note holder, as the creditor, and to be able to make a good return. Does that make sense?

Pete Neubig: [00:19:55] Make sense? I do have a couple of questions. One, it's one to verify, regardless if it's a business or property, we can use this this deferred sales trust.

Brett Swarts: [00:20:03] Absolutely. That's the best thing. Why It's Netflix and not Blockbuster. 1031 Because Blockbuster 1031 only works for investment real estate. We are not at 1031 so we work for cryptocurrency, primary homes, businesses, investment, real estate, artwork, collectibles, Nfts This needs to have $1,000,000 net proceeds and $1,000,000 gain.

Pete Neubig: [00:20:23] So now I put the money in this trust. I'm a different taxes. The tax man always comes. When does he come with this one?

Brett Swarts: [00:20:31] Good question. So you're going to get interest payments from the trust and those interest payments as you receive them. You'll get a 1099 and you'll pay ordinary income tax on that.

Pete Neubig: [00:20:41] Now, capital gains, Yeah.

Brett Swarts: [00:20:42] No, it's actually a lot higher.

Pete Neubig: [00:20:44] A lot higher.

Brett Swarts: [00:20:44] Yeah, it's actually higher. However, you might buy an asset and get some depreciation on that asset by partnering with the trust and that depreciation could offset that income. So you could use the government's money that you owed to them. That's by the way, they're charging you 0% as long as it's less than 10 million deferred per per married couple per year or $5 million per single person. But we also have a solution for big $500 million deals where we can use a 2.0 that doesn't have that interest charge that moves funds outside the taxable estate. That's kind of another topic. But back to your back to your question. You'll pay ordinary income tax on any of the interest payments you receive. So let's keep it simple. Let's say there was $1,000,000 in the trust and you're receiving 80,000 of interest payments. You pay 80,000. But let's imagine you're in New York and let's actually use your scenario of 2.5 million at 8%. That's 200,000 a year. And you're selling it in New York, but you're going to move to Texas. Well, you might delay that payment for a year or two while you establish residency in Texas. Where there's no state income tax. And in fact, we've had clients do that move out of tax reform. You get to Nevada completely fine. And you pay, you'll pay you'll pay federal income tax on that. But you won't have to pay the New York or the California income tax.

Pete Neubig: [00:22:07] State and city in New York.

Brett Swarts: [00:22:09] Yeah. So you've relocated. So that's pretty awesome. Right now, the capital gains tax is always going to follow you, right? So the New York capital gains tax or the tax reform, the capital gains tax is going to follow you. So be aware that once you dip into the principal, you'll pay capital gains tax. It'll be at the rates in those years. If rates go higher, you're paying the higher rates. But here's the reality, Pete. Most of our clients like to live off of the interest, and they don't necessarily need to dip into the goose that lays the golden egg. So we strategize with them and they'll live off the interest payments. If they dip into principal, they pay tax, no problem. Right. And so these are ten year increments, ten year terms with the balloon payment due at ten typically interest only payments or a portion of the interest doesn't have to be the full eight. It can be four or five or six or something like that. And every ten years you can renew for ten years. Can like a refinance of a loan, right? And then it can go into a living trust where your kids can step into your shoes and continue the tax deferral.

Pete Neubig: [00:23:14] I got something. My wheels are turning because my my family just sold some properties, and I don't think they did this. And now I'm like, Man, we should have. And of course, when I saw my business a few years ago, I'm like, I'm not sure why I didn't know about this strategy. And I went with the Aussie route. So these are these this is an amazing strategy that you that you lined out. So, Brett, if somebody is interested in speaking to you, learn more about this strategy and other strategies that you may have how to get in touch with you.

Brett Swarts: [00:23:44] Go to capital gains tax solutions dot com. They can also search capital gains tax solutions YouTube channel, iTunes podcast and they can also check out my new book called Building a Tax Deferred Exit Strategy. And we call it the proven playbook for unlocking your ideal wealth plan for yourself or for your clients who are selling highly appreciated assets. We have people like Kevin Harrington from Shark Tank in the book Financial Advisors, Commercial Real Estate, Multifamily Syndicators and operators, mobile home park syndicators and operators. A lot of experts. I've got a couple of chapters too, and it basically just my story and my journey between what's actually possible, Pete and what's reality and what actually works, right? And so you want to have experts to help you because your exit, you have one chance to exit, right? And if you don't have the team in place and the strategy in place, you're going to be paying 25 to 50% of your gain is going to be wiped out by capital gains tax and depreciation recapture. Then also when you exit, you want to have the team to help you execute different strategies. And that's part of why I'm a multifamily broker. I'm a multifamily investor. We raise capital for people who are in Do syndications, and then we work with world class financial advisors and CPAs to execute all of this. And so it's a team effort and you want to have a team to help you execute all this.

Pete Neubig: [00:25:05] I also went through your website and I think it's pretty it's a great, great website. Lots of lots of great information and that's capital gains tax solutions.

Brett Swarts: [00:25:15] Dot com. Correct. And we also have a free mastermind. You can join us. It's a master class on the deferred sales trust every Friday at 10:00 AM Pacific Standard Time, 1 p.m. Eastern. We have a free e-book you could download. It's kind of like the nine steps to getting your deferred sales trust started and closed so you can go to capital gains taxes dot com to check all of that out.

Pete Neubig: [00:25:32] So awesome if you're if you're thinking about selling your property management firm or if you have a couple of properties or multifamily that you're looking at thinking about selling now that the market's hot. Reach out to to Brett and his team. We'll be right back after these commercial messages. Brett, are you ready for the show, The Lightning Round?

Brett Swarts: [00:25:51] I am.

Pete Neubig: [00:25:51] All right. We'll be right back. Welcome back, everybody, to the shoot A lightning round. So, no, we're a nonprofit, but so we don't have sound effects. So I have to do my own sound effects for the lightning round. All right, you're ready. So I'm going to ask you a series. A quick question, quick questions. The first thing that comes to your mind, answer them. If you want to expand on it, go for it. What is one thing that most people do not know about you.

Brett Swarts: [00:26:16] That I could dunk a basketball and I played on scholarship at a small private Christian school?

Pete Neubig: [00:26:23] Nice. What Marvel character do you most associate with?

Brett Swarts: [00:26:27] Oh, gosh, that's a good one. I like I like Wolverine, man, because he always had to fight and go through a struggle and persevered through his his challenges.

Pete Neubig: [00:26:41] What is your ideal vacation?

Brett Swarts: [00:26:43] By the way, I don't know if he's even Marvel. I think he's D.C. He's marble. Oh, he is. I'm good there. What was the next question?

Pete Neubig: [00:26:50] What is your ideal vacation.

Brett Swarts: [00:26:52] Time with the family and time to to to play basketball? I mean, all golf people want to golf, but basketball, every single day, my rest of my life, my knees didn't fall apart. I would. And and then just time with my family and friends.

Pete Neubig: [00:27:10] What is one piece of advice you'd give someone just starting out in business?

Brett Swarts: [00:27:16] Learn to work harder on yourself than you do on your job. If you work hard on your job, you'll make a living and work harder on yourself. You'll make a fortune. And the idea is to become everything that you were created to be with the gifts that you've been given. And that's the way that you can maximize that. Opportunities to focus on your health, your finances, your fitness, your faith, your family, your personal development and leadership. First and career is a part of that as well. But that's that's just secondary. So make sure that you're you're really growing your character, growing the internal things, not just the external, external goals. You're growing yourself internally and the rest of it will, I believe, will take care of itself.

Pete Neubig: [00:27:56] Like that. Great answer. Does Pineapple belong on pizza?

Brett Swarts: [00:28:00] Sure. Absolutely I can. I can. I can love me a Hawaiian pizza. I'm going to Kona, Hawaii, with the family for 15 days here on Monday, and I'm going to get some Hawaiian pizza. Now, now that you said that.

Pete Neubig: [00:28:14] What book are you currently reading or what is one that has impacted your business or life?

Brett Swarts: [00:28:19] Never Split the Difference by Chris Vos. Incredible book about communication, about negotiation, about relationships, and about how to connect with people in a way that helps to move things forward.

Pete Neubig: [00:28:33] What is one challenge you're facing in your business currently?

Brett Swarts: [00:28:37] I would say the biggest challenge we're facing in our business is creating systems and processes, right for our growth of our company and putting, putting, getting people in the right, right position to just maximize our growth. So we have that. But it's a continual design. Delegate decide. Do you know as a entrepreneur, as is the founder of the company, you want to be in design and you want to be in delegate, You don't want to be in doing or deciding because that becomes the cap of your business. So it's that constant process of building those systems systems and then then delegating to specialists to execute on that.

Pete Neubig: [00:29:22] Which do you prefer? Dogs or cats?

Brett Swarts: [00:29:25] Well, dogs, I mean, yeah, I grew up with Rottweilers and Queensland Heelers and boxers and, you know, so my wife probably the first cats more, that's where we're the opposite personality and complement each other perfectly. Right. So yeah, dogs for sure.

Pete Neubig: [00:29:41] All right, man. Well, thank you for the lot. You, you, you survived the lightning Round. So. So thank you, everybody. Thanks, Brett. Thank you, everybody. If you want to join Nahum, please go to nar rpm dot org dot org or give them a call at 800 7823452. And if you need some virtual team members, please go to PM solutions dot com you to. It's a no cost solution where you can search over 16,000 virtual team members that could do all the back office work for your property management firm or your real estate firm. Thanks everybody for listening. Brett, thanks for being here.

Brett Swarts: [00:30:22] Thanks, Pete.