In this episode of the On The Rise Podcast, host Jeremy Dyer sits down with Brett Swarts, founder and CEO of Capital Gains Tax Solutions, to unpack one of the most powerful and least understood wealth preservation strategies available to entrepreneurs, investors, and high net worth individuals — the Deferred Sales Trust. Brett breaks down the critical differences between the traditional 1031 exchange, the Delaware Statutory Trust, and the Deferred Sales Trust, explains why the 1031 exchange puts buyers at a negotiating disadvantage, and shares real client stories of people who preserved millions in capital gains by having a plan before their liquidity event. He also addresses the three most common objections head on — legality, control, and fees — and makes the case that truly passive income, not just passive income, is the ultimate goal. A must-listen episode for anyone approaching a major exit event in real estate, business, Bitcoin, or beyond.
00:00 Introduction 00:52 Brett Swarts' Background — From Bay Area Real Estate to Tax Strategy 05:30 The 1031 Exchange Problem — Blockbuster vs. Netflix 07:00 Breaking Down the Delaware Statutory Trust 09:00 The Lazy 1031 and When It Works 10:30 The Traditional 1031 — Time, Debt, and Asset Constraints 12:00 What Makes the Deferred Sales Trust Different 14:00 The $13 Million Car Wash Exit Case Study 17:05 Don't Trade What's Priceless for What's Profitable 18:15 The Deferred Sales Trust as a Joint Venture Partner 21:30 How to Rescue a Failed 1031 Exchange 23:30 It Sounds Too Good to Be True — Addressing the Objections 26:09 The Trustee Structure and How Control Works 27:39 Fees — What to Expect and Why the ROI Still Works 29:00 What to Do If You Already Missed the Window 31:00 How to Prepare for Your Next Liquidity Event 32:00 How to Connect With Brett Swarts