#50 - How Landowners Can Preserve Wealth Across Generations with Heath Bandars

Selling land is about more than finding a buyer. It's about making smart decisions that protect your wealth, minimize taxes, and create opportunities for the next generation.

In this episode of The American Land Seller, Koby Rickertsen sits down with Heath Bandars of Fiduciary 1031 Exchange Solutions and Clark Wealth Strategies to discuss the importance of planning before a land sale ever takes place.

Together they explore how 1031 exchanges fit into a much larger strategy for preserving wealth, transitioning family land, and helping landowners achieve their long-term financial goals.

Topics include:

• Understanding when a 1031 exchange makes sense
• Common mistakes landowners make before selling
• Generational land and wealth transfer strategies
• Capital gains tax considerations
• Building the right advisory team
• The role of land brokers, wealth advisors, CPAs, and attorneys
• Planning before your property goes on the market
• Protecting family legacy while maximizing opportunities

Whether you own farmland, ranchland, recreational property, or investment real estate, this conversation offers practical advice that can help you make more informed decisions before, during, and after a sale.

Learn more about Fiduciary 1031 Exchange Solutions at https://www.fiduciary1031.com

Connect with Ironhorse Land Company:
https://www.ironhorselandcompany.com

Subscribe for weekly conversations with the people shaping the future of land ownership, land investment, and land brokerage across America.

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Transcript

Why Land Sales Are Tax Decisions

SPEAKER_03 0:09

Today, on the American Landseller, we're diving into one of the most important topics facing landowners today: preserving wealth and creating a plan for the next generation. Selling land is often much more than a real estate transaction. It's a tax decision. It's an investment decision. And for many families, it's part of a much bigger conversation about legacy. Joining me today is Keith Banders with Fediciary 1031 Exchange solutions and Clark Wealth Strategies and Amazon Act. Keith works to landowners, investors, real estate professionals, and financial advisors to help his clients navigate 1031 exchanges, generate the wealth transfer to long-term investment client. Keith and I discussed much more than 10. And it's cool to be able to protect the generation. So you're thinking about selling farmers and property for customer real estate. This conversation will give you practical insights on how to fight planning today and create better.

SPEAKER_01 1:27

Welcome to the American Landseller Podcast with your hosts, Kobe Rickardson and Brittany Murphy. Kobe is an accredited land consultant and the CEO managing broker of Ironhorse Land Company, a multi-state land brokerage specializing in farm, ranch, recreational, and development items across the park. Britney is the chief marketing officer of Ironhorse, bringing top-level marketing strategy, brand development, and creative execution built specifically for the land business. Each week, we bring you real-world insights and expert conversations on land sales, marketing, regulations,

Meet Keith And His 1031 Work

SPEAKER_01 2:10

economics, and the trends shaping the land market across America. Okay, Kobe, and our special guest, let's get started.

SPEAKER_03 2:20

Hey everybody, welcome back to the American Land Seller Podcast. And we have a repeat of uh guests today. Keith Banders from Clark Wealth and uh 1031. What I I do this to everybody. He's I I my promise I make is by the third time I'll have your company master by the third session. But uh introduce yourself just a little bit, talk about what's happened since the last time you're on the podcast, new kids, new all kinds of stuff going on with you.

SPEAKER_02 2:50

Yeah. So I'm Heath Banders, Clarkwell Strategies Fiduciary 1031 is our wealth advisory firm. We specialize in 1031 exchanges, and I am the marketing director and business development director here for the firm. So we're based out of uh Elkhorn, Nebraska, right outside of Omaha, and uh just a small four-man team, but we cover helping folks with with replacement properties for 1031 exchanges all throughout the country. So work a lot with our our land and uh real estate folks pretty frequently. So and yes, Kobe, you're right. Some new kids into the mix. I'm fresh with a three-month-old who's if you can't tell by my my sleep-deprived eyes, keeping me up a little bit at night, and then my three and a half year old keeps us busy too. So uh it's a fun stage of life for sure.

SPEAKER_03 3:35

Yeah, I could tell you enjoy it while you can, because my baby is, I think, gonna be 29 this year. So it goes by faster than you think.

SPEAKER_02 3:44

Yeah, for sure.

SPEAKER_03 3:45

He thought today uh something that's really been, I guess, become a really big time deal in our area and and the areas that we serve has been this succession management, like preparing for the next generation and all the different ways that that looks, right? And I know that you and your team, you kind of are like us, you know. If the people can keep it, we want them to keep it. I mean, we want the families to keep a hold of it. We also want them to stay families. So I thought and there's sometimes that doesn't work. We can't keep the land and stay family because it's it's a real passionate time when we're when we're handing the the land down to the next generation. So I'm just gonna put you on the spot, I guess, right out the gate, and have you just talk to us a little bit about kind of what's go on the like bird's eye view, jet's view, about what we need to be start considering when we're talking secession, the secession of the generation, as well as kind of what your role maybe

Building A Succession Game Plan

SPEAKER_03 4:45

as a company is into helping people through that.

SPEAKER_02 4:48

Sure. So I guess I'll I'll start with this. Everyone should have a game plan, first and foremost, to your point of if they're gonna be keeping the farm in the family or not, who's gonna be taking over the farm, and maybe it's not in the family, but maybe it's a neighbor that you know you are one day gonna hand over the keys to and make that sale. And how is that gonna look? What do you need to do up front to prepare yourself for that kind of large life decision? So I always recommend to folks they should have a trust first and foremost, figure out and establish that trust. And there's many, many aspects to not just our firm uh being a team player in this process for folks, but we kind of need to assemble the avengers, if you will, of this land and ag space. And everyone has to play their part for our farm friends who do decide to go ahead and sell. So that's where it comes into play, where talk to an advisor, talk to a CPA or an attorney, you know, talk to your land agent and figure out, hey, what is my land even worth? So I know what I'm gonna be doing if it is worth a couple million bucks. And then from that point on, have those family discussions, you know, talk to the kids, see if your grandkids that are going off to college have any intent to ever want to come back to the farm and take over the operation. So I think those and those conversations are for some reason harder to have and sometimes uncomfortable for folks because it is such a big life decision to put that pressure on yourself and others of what you're gonna do next. But once you have that discussion with your family, then start adding in each piece of the puzzle for you know, your wealth advisor team, your land agents, your tax attorney, everyone that's involved. And then we can kind of work together to help satisfy whatever that next game plan is. So, you know, whether someone's buying another direct property or whether they're wanting to do what we focus on is passive investments, they want to kick their feet up and get monthly checks coming in the mail. There's an array of options out there, and no one has that one answer except our friends who are making that decision. So hopefully we can give them all of the tools that they need to make that decision more sound.

SPEAKER_03 7:00

Yeah, I think what's really interesting that you just kind of mentioned there was putting the Avengers team together, you know, the and I and I think what's interesting about your guys' company versus some of the others that are out there that are available is you're a little like us in the real estate world in the sense of you don't have to make all your money off of that one person. You're willing to sit down with people, really listen to what they're talking about, and then come up with what's the best game plan with what you hear them saying. And so I, you know, like I I think maybe just, you know, you and I have heard this, and we were talking about this even before we started, was a lot of farmers and ranchers, one of the things that they all have in common is they're pretty private people. And they really don't want everybody to know their business, they don't want to be talked about at the coffee shop, you know, or the rotary club or whatever happens to be going on in their communities that week. And so, Todd, I'd like to just have you go through just a little bit about you're kind of a hub for marrying like people with what they need and not necessarily taking a whole lot of money off of that, you know, every time, you know, like yeah, you have your part, but you're also

Assembling The Advisor Avengers Team

SPEAKER_03 8:10

you guys are good kind of like realtors in the sense of let's find them maybe an accountant that's outside of their sphere that keeps their you know their confidences.

SPEAKER_02 8:18

Yeah. So I'll I'll talk to it from our perspective with what our firm does. So our firm again focuses on passive investments that you don't have any managerial managerial responsibility for, but you're still a fractional owner, which is how you can get month-to-month checks. Now, that's all done through a 1031. Uh, the government says that you're allowed to reinvest funds into these properties. And what makes us different is to your point, we don't have any skin in the game in these properties that we're offering to folks. So we're totally non-biased. We think there's too many companies out there that are like us that do have incentives and kickbacks from those groups, and we we just think that's a wrong way of doing business. So when it comes down to making a good solid referral to someone for a tax attorney that's outside of their small town community, we hope that they trust us in that. Same thing for you know, a land agent that someone needs out in western Nebraska, you know, we can hit them up confidently and say, Hey, have you talked to Kobe? And they'll give you a call and trust our recommendation. To go back to these properties, how we're able to differentiate ourselves is those incentives are still offered to us, but we credit that 100% back to our client. It almost works like black magic. So let's say, just for hypothetical speaking here, let's say a farm is selling for 2 million bucks, even after our one-time fee is paid, that farmer is still going to receive let's say two or excuse me, 2.4 million in potential equity because of these kickbacks and incentives that we get that we share with our clients. So it makes things much more transparent and it kind of breaks down the walls or barriers that we're trying to be salesy. Because the last thing we want to come off as is that we're anything else except authentic. So when you start there with folks, they see who you really are, they know who they're talking to, and then from there, when we can work in, you know, you need a good CPA or you need someone to take your family LLC and turn it into a trust for you. Hey, we got a guy out here that can do that. And it really goes a long way, especially when um those family disputes do come up. Now we can say, all right, well, your brother wants to do this and your other brother wants to do this, but mom and dad want to do this. We have an option for all three of you guys that you can all walk away from this situation happening. It really makes an impact in these people's lives long term and then hopefully for generations to come too, so that they don't have to bear the weight of you know paying the tax man down the down the road.

SPEAKER_03 10:55

Yeah. I mean, and that's really one of the goals, right? Is how can we how can we get the goals that they have met and not have to liquidate half of the farm or whatever, you know, if that's the choice they go to, is like how do we not have to liquidate half the farm to pay the taxes? Or how do we get income for the retirees that own the land in a way that is safer and maybe more consistent? So, you know, and and so yeah, it's just it's all a lot of moving parts.

SPEAKER_02 11:24

Yeah.

SPEAKER_03 11:24

And the reality is, is you know, like we deal with a lot of people, is the person that owns the land currently really is the one that's in charge, whether the kids think that way or not, you know, like it's not yours until mom and dad are gone. So whatever mom and dad want to do with it, or grandma and grandpa, or who however that family dynamic works out to be, it really is their choice and and trying to come up with a plan that that helps everybody out, you know, but primarily the landowner is kind of the first step, right?

SPEAKER_02 11:53

For sure. Well, and I'll mention too, you know, uh we've had folks that paid for their land however many years ago for a couple thousand bucks. But now the government is saying, well, it's worth millions. So they want a huge, large portion of that. And now it's turning in from, okay, we initially thought this was just gonna be a nice succession plan for the family. And now instead, we really want to make sure that these other generations are protected, they're not gonna have to pay the government, you know, a huge, huge paycheck when grandpa and grandma die. And uh, if you don't have those conversations early on, you can really get stuck in a bad spot when things do hit the fan and you're not prepared.

SPEAKER_03 12:36

So yeah, that's very that's very smart.

Passive Income Options With DSTs

SPEAKER_03 12:39

I mean, let's take a quick break and we will be right back.

SPEAKER_00 12:45

The Land Report, the American Land Seller Podcast, is proud to be sponsored by the Land Report. For landowners, investors, and land professionals who want more than headlines, the land report goes deeper. Market trends, data-driven insight, and long-form storytelling focused entirely on land. This is not residential real estate news. This is land, big land, working land, legacy land. Visit thelandreport.com and see why it remains the most trusted publication in the land industry.

SPEAKER_03 13:21

All right, we're back here with the with Keith Vanders from Fiduciary 1031. Keith, I uh I think that like we're talking right today about secession planning and and passing the ground off or deciding whether we're gonna pass the ground off, the farm off, the ranch off, whatever it is, off to the next generation. And then how do we sit down with a with a family and work through those decisions? Um, because a lot of times I think people think that, especially in my world, I think that, yeah, Kobe, you know, like I'm gonna just call you when I need you, type of thing. Right. And man, I think you gave us like a huge gold nugget in the first session, talking about like you need to be thinking about this stuff way ahead of time. Like you need to sit down, write down what you're wanting to do, go through your options and and really discuss with your family and let everybody know what your plan is. And so that way we're not blindsided by you know, something happens, an accident, something happens, and and like next thing you know, we're having to go through this on the fly. And so give us you maybe you like have a real world example of a family that maybe you've sat down with. You don't have to use any names or anything like that, but sure a piece of property or a farm or a ranch or something like that that you've sat down with it kind of because it's it is confusing as to what we're talking about a lot of the time when we're talking about, you know, all the moving parts that are involved in in transfer of property.

SPEAKER_02 14:47

Yeah.

A 10 Million Dollar Farm Case Study

SPEAKER_02 14:48

So we recently, about a year or so ago, did a a $10 million farm sale out in western Nebraska. The family was referred to us by their landbroker and their CPA about two months prior to the sale. And it was clear that the family was ready to sell, but they didn't know what they were gonna do. And there was, you know, a few different opinions of what they should do between a brother and a sister and the parents that were all involved. And we sat down at the t at the kitchen table and kind of just went through their options. Um, what we focus on are called Delaware Statutory Trusts. It's these large managerial groups that put together assets and all kinds of different asset classes. We presented to uh these folks a couple of multifamily properties, a couple of storage facilities, student housing. There was a whole slew of different um options that we gave to them that they could reinvest the proceeds in, defer their capital gains taxes, create a succession plan, and then also get passive monthly income each month thereafter. So once they decided individually what they all wanted to reinvest into for their portion of the farm, we kind of put the game plant together and they did land on, I think it was two multifamily properties. They did do a storage, they did an industrial property, um, and they even did oil and natural gas royalties as well. We created a very diverse portfolio for them and it projected to yield about $50,000 per month of income. So something that they didn't think was possible. And they had even weighed out the option, Kobe, of potentially um, you know, having someone else manage the farm and they just get that percentage coming in monthly. Once they saw this $50,000 number, they thought, oh my gosh, we would never be making that per month off the farm if we did this any other way. And we can defer capital gains tax. That's a no-brainer. So we went ahead and went forward with it, and everyone ended up playing their piece. The CPA did his piece, the uh the land agent did theirs. We all worked together to make sure that it was a successful exchange for the clients. And they've walked away happy so far. I mean, we stay in touch all the time, and it's kind of still with a with such a big decision like that, you do get to know people really closely, and that's the fun part about our job is we're not just transactional. We really care about these relationships and the direction that people's lives are gonna go. So that's just one example of many, but I like to tell that one because especially for that large of a dollar number that you're gonna be getting some some income each month. Now, I will say too, Kobe, that $50,000 a month that they're getting each month, that part is taxed. Um, I always like to mention that because people think, oh, I'm just avoiding all my taxes now. You're deferring your large lump sum, but then your income that you're getting each month is gonna get taxed still. So I like to just explain that a little more thoroughly. But um, yeah, it was a win-win situation for everyone involved in that particular case.

SPEAKER_03 17:40

But you're also moving, if I correct me if I'm wrong, I might be wrong on this, but you're moving that from a capital gain status into an income tax status, correct? Like you're not receiving unless you sell that property, your income is basically an income, right?

SPEAKER_02 17:55

Yeah, so that'll be income tax. And then your larger lump sum that you're investing will continue to hopefully grow all of those properties that I just mentioned that this particular family invested into, within maybe the next four years or so, those properties are gonna sell. And then our client is gonna be able to do another exchange. And when that property sells in four years, the goal is that it's gonna sell for way more value than what it is right now. And there's all kinds of due diligence and projections that tell us what it's likely gonna sell

Swap Till You Drop Explained

SPEAKER_02 18:25

for at that time. So our clients had an idea of what that would look like. And then when it sells, they have the option to either take their cash out then and hopefully it's a larger lump sum, or they can continue to do more 1031 exchanges. And we call it uh swap till you'll drop. So essentially, if they know that they want a succession plan for their grandkids, they're gonna continue doing 1031 exchanges until they pass, and then their kids get a step up and basis and will be able to escape, I guess you could say, the large burden of what those taxes might have looked like otherwise.

SPEAKER_03 18:58

Yeah. And I mean, I think that that's really kind of the misconception, is you know, like because we see them every time new Congress rolls around, like that's one of the first things that they start blazing in on is the 1031 exchange. This will fix all the tax problems and all that. We could fund everything if we just get rid of that. Right. Right. And I think that the reality is a lot of people don't realize is we're not avoiding taxes, we're deferring them. We're putting that tax liability down the road so that we can take as much capital as we have and reinvest that into another property, another project.

SPEAKER_02 19:34

Right. Continue growing it.

SPEAKER_03 19:36

Right. And your guys' portion of that is is you may have a have a on-site asset that you're using and that you don't need to use anymore because of retirement or whatever that looks like. You're moving that, you know, taking that asset, moving it into another asset that may be a warehouse in Phoenix, Arizona, or uh, you know, whatever that looks like, and but it's still an asset to that landowner that's moving it to, and they can also move that back to uh on-site asset of a farm or a ranch or something like that. Once their obligation to that uh to that uh DST or whatever it is that you guys

Avoiding Family Fights Over Inheritance

SPEAKER_03 20:15

are whatever your vehicle is, correct? So 100%. That's very cool. So one of the things that is very interesting that I think I don't know if a lot of people know this or not, but the last generational transfer that went from like the greatest generation, silent generation to the baby boomers was kind of a very negative experience for a lot of people. You had the guys that you know, the the kids that were on the farm that uh you know, when the parents passed, there was really no planning. There was nothing, you know, like nobody had any idea. There was a lot of fights, a lot of sisters and brothers don't talk to each other still to this day over that trance, all of that. Right. And so that the baby boomers that are like transferring land now, or they're moving their, you know, their assets to their kids or however that looks, a lot of them are not wanting to do that. So they're like, kids didn't move back, you know, to the farm, they don't have any interest, we're just gonna liquidate this for them. This is kind of one of those where this option that you guys have really comes into play, right? Is that you can move your asset, get some monthly income for that retired producer that the kids didn't want to come back. And now the kids aren't gonna fight over the farm because it's already been that asset's already been moved to the next owner, but they can still take advantage of the the 1031, you know, to the property that we move our money to, right?

SPEAKER_02 21:39

Right. Yeah, absolutely.

SPEAKER_03 21:41

Tell us about how that works because the kids can now inherit that TST or whatever we move that into, and then they decide at the end of it whether they want to continue on with that program or cash out or move it into another asset.

SPEAKER_02 21:54

For sure. I will mention

Sentimental Value And Retirement Risk

SPEAKER_02 21:55

this too. You know, a lot of times what we see is farmers are what I would call rich and Land, but maybe their accounts do not reflect that at times. They might be a little cash broke at times because it's expensive to manage and maintain a farm or a ranch. So we try to think of it like if we can flip that for them and say, hey, we can offer you the ability to not have to actively manage your work on the farm anymore, kick your feet up, enjoy retirement, and we can reinvest into these properties where, to your point, your kids are now set up for success as well, especially if they're not coming back to the farm. And the biggest hurdle in that, Kobe, is always going to be sentimental value. You know, how many generations have been passed down this particular farm or this land? And we do very much so still want to be, you know, sensitive to that. We we don't want people to have to sell if they don't want to, but at the same time, this option gives them a sense of peace and mindfulness that they've maybe never experienced before in their lives. Or maybe they wanna, maybe they're doing fine as far as money goes, and they just want to be able to afford the lake house that they always wanted and have a nice boat and uh let the money kind of work for them instead of them having to work for the money. So yeah, it's a it's a big advantage to kind of some of that personal stress and alleviation, you know, for for folks that haven't ever known that that's a reality. But then on top of it, too, yeah, once their kids inherit that, they can continue to perform exchanges if they like and keep this as an investment for themselves and their future generations, or maybe they want to start a business and they pull those funds out and they start their own business. Maybe they want to move to a different part of the country and they need some funds to do that. Now you've created ample opportunities for that next generation to really have a platform to spring off of if they do want to make a big jump in their life. So we hope people see the value in that without them thinking that we're just trying to we're all out here trying to sell the farm for them. So right.

SPEAKER_03 23:56

Well, and I you know, like I think what's interesting too is that stepped up basis that you mentioned before does it does come into effect with the with the property that your 1031 or your TST or your you know like your warehouse in Phoenix, right? You know, that you're now part owner of. That that does come into play with that land too. And you know, if you were to take it all and put it into, you know, retirement fund or whatever, you know, there's a totally different ballgame on how all that works. Right versus so you're gonna pay tax on when you put it in and when you income it out. Right. And so that's that's always something. And so I think it's a very fun vehicle to consider for people that you know really do want that stability in their retirement, you know, because you can keep the land and then lease it out to a local farmer, but in Nebraska where we have pivots and wells and all this other stuff, you know, are you gonna be able to, you know, in your retirement take that, you know, $120,000 hit if tornate, you know, like if you have to put a new pivot on or if you have to put a new well in and have that eighty to ninety thousand dollar hit, how's that gonna affect the comfort of your retirement?

SPEAKER_02 25:02

Yeah, you know. Or if we just have a bad season, you know, even that, which we all know too well, unfortunately, that can happen at any time. So yeah.

SPEAKER_03 25:10

Yeah, no, that's I mean, I think, you know, that this is a awesome vehicle. I talk to clients about this all the time. We just sat at an expo in northern Nebraska for, you know, a couple days in the recent last few weeks, and just sitting there talking to people, and that's you know, a lot of times they sit down and be like, Well, you know, I'd sell the farm, but I don't want to pay all the taxes, you know, like, well, have you thought about this, you know? And and really sitting there talking to them about like, you know, like, is the risk out there? You know, like would you rather have it be in a like a little less risky investment, but still have you know the the solid knowledge that you're owning an asset or a portion of an asset? And and so like I think a lot of people just haven't heard of it. So I think that's great that you're on here talking about uh about this today, Heath. Let's uh let's take a quick break. Seems like a good spot for one, and uh we will be right back.

SPEAKER_00 26:03

The American Land Seller Podcast is proud to be sponsored by Iron Horse Land Company. At Ironhorse, land is not a side business, it is all we do. From farms and ranches to recreational and development properties, art rates, land expertise, boots on the ground experience, and high-quality marketing to every list. Whether you own land today or are planning for the future, Ironhorse Land Company helps landowners make confident, informed decisions. Visit Ironhorceland Company.com to learn more.

SPEAKER_03 26:39

All right, we're back here with Keith Vanders from Fiduciary 1031. And as you know, Clark Wealth has something to do with that. It's is it Clark Wealth's understanding?

SPEAKER_02 26:51

Clark Wealth, we used to just do like 401ks, and then Dave in 2012 started doing all the 1031s, so we added the fiduciary 1031 par. So yeah.

SPEAKER_03 27:01

I know you've explained that to me a hundred times.

SPEAKER_02 27:05

Okay, you'll get it one of these days, Kobe.

SPEAKER_03 27:07

I know Dave has explained it to me several times, but I will I want to say this like right now. I have got to tell you and tell Dave this. Thank you guys so much for every single time I go to the National Land Conference in RLI the last few years. I've gotten to go out and and break bread with your group, and uh it's always pretty awesome time. And so I just want to thank you for the fittles that are usually quality. Uh it's not like we're getting McDonald's, man.

SPEAKER_02 27:36

We like to think we know how to have a good time, Kobe. So that's that's what it's all about.

SPEAKER_03 27:42

At the very least, getting to know you guys is uh has been definitely a roadmap to some of the better restaurants in the areas that I go to. So I don't know how you find them. But but it was and I did for the first time ever got to try swordfish in Texas. So that was that was pretty awesome. So let's you know, secession planning is such a huge deal. And I think, you know, just when I think I know like about everything there is to know about like all the parts to it and which people to get people involved in. I can't I like sit down with a new landowner and it's all of a sudden it's a new

When A Spouse Has No Plan

SPEAKER_03 28:20

story, you know. And so I I wanted to share this, and I think you'll appreciate this. There was a lady at this expo that we were just at that came over. We had like a really cool like we took our conference room table basically and just set it in our booth area so people could come sit around and just have like a family conversation. Yeah, yeah, it was awesome. That's awesome. So, but so this lady comes and sits down. I have no idea, she's uh you know, probably 10 years older than I am, but um, we got to talking and she was talking about her her husband and her have put together a like 20 plus thousand acre ranch. And so she admitted to us while she was sitting there, she says, I have no idea what you know. Like I I go out and work and I kind of have an idea of what goes on, but she goes, We have energy leases of some, you know, like energy production that's on there that they that they have. She goes, like, I we have all these moving parts of this ranch, the kids want nothing to do with it. And she just admitted to us that she was absolutely petrified at what would happen if something happened to her husband, god forbid. Sure. And and so I, you know, I got to thinking about that, you know, like you just how many kids are out there that like once in a while they're just laying there in the middle of the night, you know, going, what would we do if something happened to mom and dad? Or or a spouse even that, you know, like you you sit next to her and you you know, you spend your entire life with them, but realistically they're just they've never brought it up, but they have no idea what their plan is. And I think that's why it's important to talk about this because I want to create those conversations with spouses and family members and have Thanksgiving. Hey guys, yet you know what you're gonna do with the farm if if something happens to us. Which I think going back to your point in the last segment of putting that well, the first segment of putting that team together, talk to us, Heath, about what does that look like in your mind about helping these guys sit down at a table where they're we may not make any money today or ever, but we want to help them get their things figured out and get

Trusts LLCs And Starting Early

SPEAKER_03 30:20

them in touch with those people that those attorneys, those accountants that are gonna be the on their team to help.

SPEAKER_02 30:25

Well, yeah, that's what it's all about at the end of the day is people helping people. And unfortunately, we can't help anyone if we don't know that they need the help. So it starts with that initial discussion, and it doesn't matter if they reach out to you first, Kobe, or me or their tax attorney, or whoever, shoot, it could be a neighbor that just recently sold and they say, Hey, let me know who you used. And we have this big kind of circle or community that we all feed off of each other for information, for contacts, for network, and uh we want to make sure that that gets shared with folks who need it. So my my starting point for anyone is what do you need in the immediate future? Do you you know, maybe you don't have a game plan at all, but you know, okay, what what should I even think my land is worth? I have all this sentimental value in it, but what would Kobe actually say it's worth? You know, reach out, just make that first initial contact, and then from there, Kobe might tell you two or three other things you need to do. Or we just had uh a pair of brothers come into the office recently who they're looking to sell some properties, and right now they have 50-50 split and everything is put into an LLC. The first thing we said was you may want to talk to a tax guy and CPA about getting that put into a trust because it might make your 1031 exchange process a lot easier if it's in a trust versus an LLC. Well, they wouldn't have known that, but because they initiated that conversation, we were able to, as the experts, kind of evaluate everything and tell them where a good starting point would be long before they even end up selling, or maybe they don't end up selling too. So there's all kinds of scenarios out there. To your point, too. The worst is is the one when something does unexpectedly happen. And um, you know, I've even had my wife tell me, How would I pay the mortgage if if uh something happened to you, Eath? And I'm like, okay, well, we should probably have that conversation, you know, because you just never know. So start by by initiating that contact, and from there we have the resources and tools to to hopefully help give you an arsenal of information to make a sound decision and what your next move is going to be.

SPEAKER_03 32:32

Well, and I think that if you want to kind of get wrap your head around the emotions of what we're talking about, you know, like I I don't ever like refer movies or anything, but the the TV show The Madison that just came out on Paramount Plus is a great example of what does that look like, you know, and to really get those juices flowing on. I mean, I honestly, you know, when I watch that, it really is one of those things where, you know, you just don't really wrap your head around what that looks like until you can kind of see the emotional side of it. I thought that I don't know if you've watched that series or not, but it's a phenomenal series on on losing someone and how that looks, you know, and and that that that woman had no clue of anything that never been to the property, didn't have any, and it was her husband's favorite thing, and you know, like how well that guy, you know, you know, had as much as he could in place, but understanding how can we use you know conservation easements, how can we use 1031 exchanges into DSTs, how can we use, you know, really good solid will planning. You know, if you're gonna keep the property and you want your kids to keep it, you know, like again, I one of my friends from Holland Hall, we were talking about that the other day. Their philosophy and Iron Horse's philosophy is the same. If you can keep it, you should keep it. Right. Like again, I'm not gonna make any money off of it if we figure out a way to help you keep it. My hope is that you're gonna remember me when your neighbor wants to sell and you're gonna be like, you gotta call Kobe. You know, like I'll I'll donate a little bit of time of my time to help you keep your land because someday along the line you're gonna remember me. My hope is when when you find somebody that needs to sell it.

SPEAKER_02 34:12

Well, and also, too, you know, do you want to be an emotional wreck that also has to take care of a mess of other things while you're already dealing with a hard circumstance in your life? Or do you want to be an emotional wreck and just be able to feel those emotions and not have to worry about everything else and already have a game plan? So it's a little bit on everyone involved, you know, if if you're the head of the household, set your family up for success so that they don't have to deal with that. And also, if you're the wife sitting up at night and twindling your thumbs, like, how am I gonna figure this all out when this does maybe happen? Uh you know, talk to your significant other and and make sure you meet with the right people so that we can give you some peace of mind if that scenario does come up. Because that's the last thing we want is a mess on top of another

Keeping A Piece Of Family Land

SPEAKER_02 35:00

unfortunate situation.

SPEAKER_03 35:01

So Yeah, no, that I mean, that's so true. And just everything about, you know, I mean, this is you know, the one thing that that lady and when I were talking about was this is she's her husband is the fourth generation of the original, you know, 600 acres or whatever they had and 700 acres, and though he's probably doubled it in his time in his lifetime, you know, it's still family land to them. And so, you know, like a a lot of times there's ways you can take maybe a section of the family land, if you're talking 2,000 acres, take a section of it, set that up as, you know, a family place where the family can go, put pavilions up, take some of the proceeds off of the sale. You can set that up in your will to make that, you know, like the Anderson land, you know, the Anderson family retreat or whatever, and set it up for hunting and all that stuff. You're still keeping the connection to the land with that sale. You can put trust money into that to keep it going, maybe put it into a conservation program, and that's gonna help with alleviating some of the taxes, and then take what that the rest of whatever's left out of that, you know, sale of that 20,000 acres, put that into a a DST or you know, that kind of a vehicle, and and just get your monthly payments and right, yeah. Go enjoy can enjoy your golden years.

SPEAKER_02 36:20

Exactly, exactly.

SPEAKER_03 36:22

So that's that's pretty fascinating. I I will say I love you guys, your team is so incredibly fun and knowledgeable. We've had some really crazy clients together over over the years. I don't know, I don't know if I've ever helped you guys out much, but I try. Um I send it I send a ton of people or refer a ton of people to you. I remember our our guy with that really cool property in Oklahoma a year or so ago that I don't know. I I need to call him and find out what he's up to because I don't know whether he ever sold it or what.

SPEAKER_02 36:55

But he he did not he was not shy about us being Husker fans, so yeah, he was a fun game. Don't get me wrong, but I'm gonna rev my Husker pride still.

SPEAKER_03 37:07

Yeah, yeah. I actually went down and rode around all over, like got got through Oklahoma with him and learned a ton, and what a fun guy he was, but like I said, I haven't heard recently I should give

Ag Shows Advice And Final Takeaways

SPEAKER_03 37:20

him a call just to harass him a little bit. Closing out beer, Heath, what other gold nuggets do you have for us today? We always could use some some great knowledge from from your guys' outfit.

SPEAKER_02 37:31

Yeah, I would just say, like right now, I'm focused on gearing up for ag season as far as ag expo season, ice season, I should say. We know that's a a good opportunity for a lot of folks that they have the first chance to get out and see what's new in the industry, see what new equipment is out there. But we try to be present at as many ag shows throughout the Midwest as we can. I think I went to about 10 or so last year in all the surrounding Nebraska states. So definitely take advantage of those opportunities to go get educated on some new things, go talk to some folks that you maybe haven't talked to before. We we surely make a lot of great relationships from it. I'm sure you guys do as well, Kobe. So gear up for that at the at the end of the summer, it starts ramping up a little bit here more and more. And then yeah, if there's ever, you know, anything we can do to help, we're happy to help. But there's not like a a fee associated for giving us a call or shooting us a text or an email. So uh we just always want to be present and hopefully we can help folks out.

SPEAKER_03 38:27

Yeah, and I think I think that's the thing to remember is I think like I hear it all the time. I don't really want to waste your time. It's like I I 90% of my time is quote unquote wasted, if you want to call it that.

SPEAKER_02 38:39

Right.

SPEAKER_03 38:39

I make a pretty good living off the 10% that all comes together. So you're not wasting our time, right? This is what we've signed up for. This is our jobs are to be at advocates and advisors for you and to help you find those people out there that really do, really do need and you know, some help and some advice. And again, like we neither one of us are here to take away your property. Um from my standpoint, to the contrary, we want to help you figure out how you can keep it or part of it or whatever is gonna work, but realistically, our job is to kind of listen and and try and figure out what exactly it is you're wanting to do, and then help you get in the right vehicle to take you to that destination. Absolutely. Heath, I appreciate so much you and uh the guys at Fiduciary 1031. You guys are all spectacular human beings, and I cannot wait to uh catch up with you soon down the road here. I know the College World Series has been kind of your thing the last few last few days or weeks, or I don't even know.

SPEAKER_02 39:44

Yeah, today's the final game, the championship. So are you ahead?

SPEAKER_03 39:47

Are you going?

SPEAKER_02 39:48

You know, tonight we're not going to. We'll watch it at home. But uh Omaha gets crazy for College World Series, so it's always fun. But yeah, we'll have to have you out one of these uh one of these years for it for sure.

SPEAKER_03 39:58

You're gonna get me. Yeah, you're gonna have to. I I saw Carrie's kid, the company my wife works for, they were doing a tailgate for it too. Um and so we'll have to come come check it out one of these days. I I like baseball in person. I'm not a big big fan of watching it on TV, but I do do it in person. So all right, sir. Well, thank you so very much for your time today. And for the rest of you, we will see you all down the road.

Where To Follow And Support

SPEAKER_01 40:24

As we wrap up another episode of the American Landseller Podcast, thank you for spending part of your week with us. For more episodes, resources, and updates, visit www.americanlandseller.com. Be sure to find us on your favorite podcast platform. If you found value in today's conversation, please like, subscribe, follow, rate, and review the show on whatever app you are listening or watching. It helps more landowners and land professionals to find the podcast. You can also connect with us on social media for updates, new episodes, and find the team's contact. Until next week, copy and break with two stick staff and all your land efforts. God bless you.

SPEAKER_00 41:14

The American Landseller Podcast is brought to you in part by the Land Report. The Land Report is the premier publication covering land ownership, land markets, and the people shaping the future of land in America. From farmland and ranches to timber, conservation, and legacy properties, the land report delivers deep reporting, trusted insights, and long-form storytelling focused entirely on land. Learn more at thelandreport.com. We are also proud to be sponsored by Iron Horse Land Company, a multi state land brokerage specializing in farm, ranch, recreational, and development land across the Heartland. Built by land professionals, Iron Horse Land Company sets the iron standard through high quality marketing, real world land expertise, and a boots on the ground approach that puts landowners first. To learn more, visit IronHorse Land Companies.com.