.jpg)
American Land Seller Podcast
Welcome to The American Land Seller, the podcast dedicated to landowners, buyers, and investors seeking expert insights into the evolving land market. Hosted by Koby Rickertsen, an Accredited Land Consultant and Multi-State Land Broker with High Point Land Company, this show dives deep into market trends, investment strategies, and real-world experiences in farm, ranch, and recreational land sales.
Each episode features industry professionals, seasoned investors, and landowners sharing their expertise on topics such as:
✅ Land market trends and valuation strategies
✅ 1031 exchanges and tax implications
✅ Seller financing and creative deal structures
✅ Conservation easements and government programs
✅ Navigating legal and zoning challenges
✅ Building generational wealth through land ownership
Whether you're a first-time land buyer, a seasoned investor, or a landowner looking to sell, The American Land Seller provides the knowledge and tools you need to succeed in today’s competitive land market.
American Land Seller Podcast
#37 - Beyond the Farm: How to Turn Land into Legacy with a 1031 Exchange
Planning to sell your farmland but dreading the tax bill? The 1031 exchange might be your golden ticket to preserving wealth and unlocking passive income, and in this episode of The American Land Seller, we’re breaking down how it works with Heath Bandars of Clark Wealth Strategies.
Whether you’re navigating retirement, succession planning, or just looking to shift from active farming to hands-free income, this conversation is a must-listen. Heath, an Exchange Liaison and CE-certified 1031 educator, unpacks this government-sanctioned tax-deferral strategy that’s helped landowners reinvest and build wealth since 1921.
💰 What’s inside:
- How a $10M farmland sale turned into $50K/month in passive income
- The 45-day and 180-day rules every seller must know
- Why Delaware Statutory Trusts (DSTs) are becoming a go-to option
- What land agents should be doing right now to help clients plan smarter
- The critical role of qualified intermediaries—and how to avoid mistakes
Heath also explains Clark Wealth Strategies’ fiduciary, client-first approach—no cookie-cutter options, just personalized solutions built around your goals.
📈 Whether you're a landowner thinking about selling or a broker wanting to better serve clients, this episode could change the way you think about equity, retirement, and long-term financial security.
📞 Connect with Heath Bandars, 1031 Exchange Liaison
Website: www.clarkwealthstrategies.com
Email: heath@clarkwealthstrategies.com
Phone: 402.504.3531
Today on the American Land Seller, we're unpacking a topic that's come up before, but it's so important we're going to dive back in the 1031 exchange. If you're a landowner, investor or real estate professional, understanding how to defer taxes through a 1031 could mean the difference between saving and reinvesting tens or even hundreds of thousands of dollars. I'm joined today by Heath Banner, exchange Liaison at Clark Wealth Strategies, a fiduciary firm that specializes in 1031 exchange solutions. Heath works at the intersection of land sales, wealth management and client education, partner with qualified intermediaries and land agents to guide their clients towards smart passive replacement options that align with their goals. It brings a unique background from the banking world and now teaches continuing education classes on 1031 exchanges, currently certified in Nebraska and expanding into other states.
Koby Rickertsen:Now in this episode, we're going to break down what a 1031 exchange really is. No jargon, just the facts, real world scenarios where it can help farmers, ranchers and investors. What land agents must know to add value for their clients in these situations. And yes, we've covered 1031 exchanges before on this podcast, but if you think you already know it, all this conversation is going to surprise you. He shares new insights and perspectives that show just how many opportunities and pitfalls exist in this space. So whether you're looking to protect your capital gains, unlock some passive income, or you're an agent simply wanting to better serve your clients, this episode might just be a must-listen to.
Announcer:Welcome to the American Land Seller Podcast with your host, coby Rickardson. Coby is an accredited land consultant and multi-state land broker with High Point Land Company. Join us each week as we explore all things land. We bring you fresh insights and expert guests on sales, marketing, regulations, economics and so much more. Visit wwwamericanlandsellercom and find us on one of your favorite podcast platforms.
Carrie Rickertsen:Okay, Kobe and our special guests, let's get started.
Koby Rickertsen:Hey, all right, we're back here with the American Land Seller Podcast, episode 36. So I guess, what is this 36,? 37 today, heath, how do you feel about 37?
Heath Bandars:37? I'm trying to think of any great sports athletes that I admired growing up. 37, not necessarily coming to mind, but maybe we'll make the. We'll make the number famous. You know, who knows?
Koby Rickertsen:yeah, I think that's exactly what we're gonna have to do. We have heath banders from clark wealth strategies. Heath, how are you this fine day?
Heath Bandars:good, it's good friday, um everything's going smooth, world's spinning, we spinning. We're doing good, we're living, we're breathing. Life is good. So yeah.
Koby Rickertsen:So tell us just a little bit about Clark Wealth Solutions or Clark Wealth Strategy. I tell everybody there's three segments to this show because I need three segments to get your name, your company and what you do right. So if you could just tell us a little bit about what it is you're up to. We've talked about 1031 exchanges on this show before, but they are so important and so I wanted to bring you on to maybe just dig into the nuts and bolts, maybe talk just a little bit about, like, the machine of a 1031, how it exactly works and how it benefits our clients and your clients.
Heath Bandars:Yeah, absolutely so. To start Clark Wealth Strategies. We were founded in 2008 by our president, dave Clark. In the middle of a recession, he thought what a great idea to start a wealth planning firm. So it worked out that first year and he thought well, if I got through the recession, I might have something here. We were a traditional wealth planning wealth management firm up until about 10 years ago when Dave performed his first 1031 exchange. Now Clark Wealth still exists and we still do the wealth planning side, but we also have a subsidiary called Fiduciary 1031 Exchange Solutions. That's kind of our new focus now.
Heath Bandars:Dave did his first 1031 exchange in 2015 or 2016, and then kind of just discovered man, this industry really is missing someone who does things a fiduciary way, who does things a fiduciary way, transparent solutions for clients, no set menu for clients, but really whatever a client wants to invest in and do, they should be able to do that. So that's where Fiduciary 1031 was born. I've been with the firm for about two years going on three years now and my role at the firm is a 1031 exchange liaison, which is just a very fancy way of saying I'm a connector. So I connect with clients, land agents, qualified intermediaries with us to help identify replacement properties for the client when performing a 1031. Sounds like a lot, sounds kind of like a math equation a little bit, but as we get into it I'm happy to kind of explain that process and where we come into play and how we help you guys out.
Koby Rickertsen:Okay. So let's just start because, like we had the guys from accrued on before, you know those guys, great, great guys. Um, you, just a couple weeks ago you were just talking about that before we started that you just ran into, uh, one or both of those guys out in washington dc. As you guys were flexing your giant muscles, you know wrestling the congressman and the senators, you know making sure that they understand how important a 1031 exchange is for the world of real estate. Let's just so it's always confusing for people let's just start with a quick 1031 refresher. All right? In simplest terms, for those of us that are slow like me, what exactly is a 1031 exchange?
Heath Bandars:Yep. So if you are someone who owns a commercial property or land and you sell that property, the government has a tax code called the 1031 tax code that allows you to exchange or sell that property and put the investments into another property to defer capital gains and depreciation recapture tax. So it's not a loophole. You're not eliminating the tax, you are deferring the tax and then you can reinvest it into another property and the government says that is a successful completion of a 1031 exchange.
Koby Rickertsen:Right. So you're not. You're not. It's basically like we've kind of heard about that with our current president through some of the politics, stuff of like you're not dodging taxes with this. You're essentially like it's a tool that the government's used to help create reinvestment in real estate. Correct, I mean, essentially that's what keeps people wanting to do projects, sell projects, reinvest in new projects.
Heath Bandars:Right, and it's been around since 1921, originally, primarily to help farmers and people in the ag industry. So it's been around for forever. As you mentioned, I was just in DC. Both sides of the aisle use this personally, in addition to um mostly supporting it. We had talks a couple of years back about a potential cap to be put on on exchanges. Um, we had so much. I think it was around 600 billion in GDP that this industry alone adds, so it would be detrimental if this goes away at any point, which is why we do some lobbying. We're members of the Federation of Exchange Accommodators, the FEA. That's a pretty big component to our work and making sure that farmers around the Midwest, around the whole country, are able to still continue taking advantage of this, because it really can benefit them in retirement succession planning. Maybe it's a boat for their retirement home, you know, whatever they want to do with these funds, that can be a substantial amount of additional income, so it's important.
Koby Rickertsen:Yeah, you had talked about like we just talked about you going to Washington and you know, like I think it's interesting that, on what people don't realize, with like Washington DC and the new class of congressmen that just came in earlier this year and the new senators, is like what I've learned in, as you know, growing in the industry, getting more involved in it, is the education that you have to have on the new guys that come in there. Because you know, if you go, look at the tax system and say I think you know like what's, the first thing you look at is like, hey, I could solve the entire tax system by just putting an X through the 1031 exchange. Like let's just tax all these land transfers and these property transfers and that's a huge amount of wealth we could bring into the government, right, right. And so we have to go and educate those guys on that. Probably those transfers aren't going to happen without the 1031. I mean, that's the way I understand it.
Heath Bandars:Yeah, not only that, but just think about the amount of jobs 1031s create. I mean, there's all kinds of properties you can exchange into there's multifamily, there's senior living centers, there's storage facilities. The list goes on and on. And all of those facilities and businesses have to run somehow. They require people and businesses have to run somehow. They require people. We estimated in a survey from 2021, so it's probably not even an up-to-date, accurate number, but it was close to a million jobs that 1031s create each year in the country. I'm sure it's even higher than a million now, but that's pretty astronomical for what we're able to do and a lot of people, like you said, it's the education piece. They just don't even know this exists. So it's really important to get out there. I'm a CE. I have a CE course here in Nebraska for 1031s. I'm trying to get certified in a few more states as well so we can get out to land agents, inform clients, things like that. The education side is a really important factor for us.
Koby Rickertsen:So you do continuing ed for real estate agents.
Heath Bandars:Yep, we have a one hour CE course, currently only in Nebraska. We're looking at Iowa, Kansas, Missouri, Wyoming, Colorado. We're trying to get kind of the whole Midwest. We're based out of Omaha, we have a crew of three and then we do have a gentleman up in Minnesota and he's CE certified as well in Minnesota. So that's kind of our mission is education first and then from there advise and help where we can.
Koby Rickertsen:So yeah, I like it. You talked just a little bit a few seconds ago. You started to go through like some of the common types of properties. Let's just go through that. I think that's one of the things that people get snagged on too is like I think they think that you have to have a high rise for a high rise and stuff like that. Or I also think that some people think that you can go all the way down to trading a high rise for a lake house if you want to. There are rules involved in this because it is created for a specific purpose. Let's go through it. Let's talk. I mean and don't be afraid to dig into this, because I do want to I want people to understand how this works and why we're allowed to do it.
Heath Bandars:Sure, so I'll start with what we primarily work with here at the firm. We work with what's called Delaware Statutory Trusts. These are called DSTs, the lingo in our world. Delaware Statutory Trusts are basically these large properties managed by what we call sponsors. These sponsors are vetted large companies that have purchased or acquired 30 to 50 to 100 million dollar buildings or entities. You can be a fractional owner of that property. So let's say it is a senior living center in Florida. They're looking for clients to be able to invest into that property, which then you know, if you have a client, kobe, who sells their their farm, they could then turn around and invest into this. It's fully passive income, no managerial responsibility. It's pretty well vetted.
Heath Bandars:We do a lot of due diligence to go into this and we've also worked with all of these sponsors for quite a while now, especially Dave, our president, so we know who we like to work with anywhere. I mean dozens there's dozens out there but and then from there you become a fractional owner. You get paid monthly passive income and then, in addition to that, your overall investment is going to grow. Anywhere between four to six to seven years is kind of how long we see these properties last for the investment time. So at that point you could either perform another 1031 exchange at the end of that cycle what we call it or you could say you know what I'm ready to, here's my next game plan. And at that point that's when you'd have to pay your capital gains tax. So again, it's not a tax elimination. At some point the government does get their share. But there's succession planning where you know you can have these continue to roll over. If you pass at one point, your kids can take over and continue doing these.
Heath Bandars:There's a lot of different scenarios out there. A lot of times I let the QIs, the qualified intermediaries, handle the details of that side. But as far as identifying these replacement properties, that's really where we come in. We work with so many of these sponsors, kobe, that we have built an inventory, if you will, anywhere from 30 to 40 active properties that are looking for investors, and we don't have to play by any of. We don't take a dime from any of these DSTs. So we don't have a set menu our clients need to invest into or have to invest into. There's also opportunity zones and REITs. There's also a couple other, you know. Trying to think oil and gas is another big one, tix is another one that's kind of a buzzword right now. So there's other options out there too that exist, and again we have no constraints to help our clients go into those investments. So it's kind of what makes us a little unique in the space.
Koby Rickertsen:Yeah, no, that sounds fascinating and you know like it's a horrible time to take a break, but that's what keeps us edgy here. So we're going to go ahead and do that right now. Yeah, you know, we're going to take a break, we're going to come back and I really want to dig into. I know that this DSTs and some of the stuff you were just talking about is a huge asset for some of my clients that are maybe trying to transition out of a long career of farming, but they also, you know, when they sell their land, they don't know exactly what to do with it. You know, and so I think you guys might be their answer. So hold on and we will be right back.
Koby Rickertsen:The American Land Seller Podcast is brought to you in part by LandHubcom. Join us today and experience the expertise of LandHub's land marketing professionals, Whether you're buying or selling. Let us show you the way in the ever-evolving world of land transactions. Visit landhubcom and discover what the future of land marketing looks like. Landhubcom where your land journey begins. And we are back here with Heath Banders from Clark Wealth Management. Is that right, Heath?
Heath Bandars:Clark Wealth Strategies, but yeah.
Koby Rickertsen:Strategies something.
Heath Bandars:We do it all.
Koby Rickertsen:I got Clark right.
Heath Bandars:Yeah, there you go.
Koby Rickertsen:Close. I told you in the beginning it takes me three segments to get it right. I got your name right.
Heath Bandars:You only get one more chance, then Kobe, if that's the case.
Koby Rickertsen:I'm under a lot of pressure here. I got to say I know a lot of people are listening to this, they're not watching it, but, man, you have the sexiest studio. I thought that Casey Mock when he was on. I still think he probably has one of the ones that is the top one. But, man, this is pretty awesome what you're doing, like you guys look like you're ready to are. Are you expecting fox news or somebody to call you? Is that are?
Heath Bandars:you just ready? I'm calling, that's I gotta stay ready. You know I gotta compete. I don't want those ai generated backgrounds if they, if they want us on, so yeah.
Koby Rickertsen:I don't know if you've watched our show, you know that, um, I put like a little logo on the, you know like your logo, down to the bottom right of your deal. I don't even know if I need to do that.
Heath Bandars:No, we got it, we got to cover it.
Koby Rickertsen:Like kind of taken over my entire deal, but let's, okay. So let's, let's dig into, like, what's been really, really awesome for a lot of my clients, which is DSTs and some of the other stuff that you've talked about. It's the reality is is that we've went through a generation the world war two, the greatest generation and their goal was keep the farm in the family and a lot of hard feelings came out of that. A lot of you know, because you had, you know, siblings, that kind of fought with each other, you know, and different things. Now this current generation, they're you know, in different things.
Koby Rickertsen:Now this current generation they're you know they're looking at their estate planning and they're saying, hey, you know, if the, if the kids aren't back farming, let's just get rid of the farm. Let's figure out a way so that the kids can still be family and not worry about land, right, right, and not worry about land, right, right. And it's a different world. And so DSTs have been a real good way to. How do we say keep an asset, that is something that has income to it, but these guys they can sell their farm, trade that for another property, have income. Talk about how that works, heath, and how my guys that are selling farmland right now, or thinking about selling farmland right now, can turn their farm into maybe something that they don't to pay like a ton of taxes right away.
Heath Bandars:Right, yeah, so that's, the tax deferral piece is probably the biggest advantage, right. But then when you look at it holistically, if you're a farmer and your kids went to college and they're not coming back to the farm because they studied education or went into finance or something else we see that so often now with our clients where they just don't know what to do, and we have a lot of agents that call us and say, hey, I got a guy who's ready to sell, but he has no clue what he's going to buy after he's done selling.
Heath Bandars:So that's where we can come in and say, hey, here's a whole slew of options for you. So that's where we can come in and say, hey, here's a whole slew of options for you. Tax deferred. It's going to generate monthly passive income, which most farmers have never not worked and produced income that way, right? So the fact that it's hands free makes it super enticing to a lot of these guys. Makes it super enticing to a lot of these guys. And then, on top of that, you can kind of succession plan it, if you will, for grandkids, college, or maybe you have a kid in the state of Washington who's looking to buy a house, but they don't know where they're going to get the money from. Well, now, you can kind of plan those things out when you do sell the farm, to not just help yourself in your scenario but also help the generations down the road that aren't going in farming but still family, still people that you love. So, yeah, the whole process really can be life-changing for a lot of clients.
Koby Rickertsen:Well, and I mean, I think we learned a few weeks ago right, where you know, like, if you had all your money in the stock market, that was a pretty scary week a few weeks ago. Not that it didn't rally, but you know like, it's one of those things that I think is fascinating because you're technically, you know you're a silent investor in some of the biggest projects that are going on in the country. You know, and, and so it's, and it's fairly. I mean, nothing's safe, but it's a. It's a. It's a fairly efficient way to invest your money. And what I like about it and I think that's something that maybe you should go into a little bit is there is dividend payments, or there could be monthly payments, depending on what projects that you get into. There's rent that may be paid out to the investors on a monthly, quarterly, annual basis, that kind of stuff.
Heath Bandars:Yeah. So I'll give you a good example. We just had a $10 million farm exchange in Western Nebraska at the start of the year and we had a CPA call us and say hey, I've got a client. It's a large farm deal. Their kids are all somewhat involved in the deal as well, but it's getting split between all the kids I think there was three of them and they don't know what options exist. So we came in, had a meeting.
Heath Bandars:Dave Clark, our president, was able to sit them down and say look, here's what we would do in your scenario. What do you guys think? And what he did was he laid out a very diverse investment portfolio, because $10 million is quite a lot when it comes to investing into these DSTs. We're not going to put all of that money into one basket. So these guys were able to divvy it up with a couple multifamily properties, a couple storage facility properties, a couple senior living centers. This divvied up plentiful so that all the kids were able to choose what they're investing into, have a say in that, and then at the end of the deal they're now going to be producing about $50,000 a month in monthly income passively just from sitting there. Not only that, but then these kids have their own children. So now down the road, who knows what the grandchildren will want to do with their lives, their own children? So now down the road, who knows what the grandchildren will want to do with their lives? But they'll have money sitting in accounts that they'll be able to take advantage of, whether they want to go to college or whether they want to start a business, or maybe they want to buy land and start their own farm. You know, the options are endless for what it can do to a family 30 years, 50 years, a hundred years down the road. So for that particular scenario worked out really well for what they needed.
Heath Bandars:But I will also say too, every client has different wants and needs. Every client has a different goal that they're trying to get to for their end game. So we try to work with as many different folks as we can. A lot of times we work with not just the land agent but we have qualified intermediaries that we work with all the time that these folks don't even know what that person does in the process. So we're able to kind of help explain that, help match them with the right people that they can all trust. And again, that's the base of our firm is fiduciary, transparent advice. We want what's best for the client. Not only is it our legal obligation to do so, but we just kind of think that's the right thing to do. So we like that mindset and that's how we approach it.
Koby Rickertsen:So we like that mindset and that's how we approach it. Yeah, and that's I mean, that's awesome that you're taking that attack vantage. I guess, on the industry, let's go back to okay, let's circle back to the 1031. Yeah, so the vehicle, the 1031, like I think a lot of people don't really understand because, like, even in your company, right, you have the fiduciary 1031 company, right, and then you have Clark Wealth Strategies. I think I'm going to nail this by the end, I'm pretty sure.
Heath Bandars:You're doing great.
Koby Rickertsen:Yeah, I'm confident, I'm confident. So, clark, wealth Strategies, and then you have the 10. I'm pretty sure You're doing great. Yeah, I'm confident, I'm confident. So, clark, wealth Strategies, and then you have the 10. Why do we have to have a different vehicle that holds the money? Because it seems silly to people, right? Because we have, 45 days after we've, you know, just go through from the start to the finish of a 1031 process. Sure, walk us through that if you don't mind.
Heath Bandars:Yeah, so I'll clarify one quick thing. As far as our firm goes, clark Wealth and Fiduciary 1031 is basically one holistic company. Think of it that way we're the advisors that match the clients to a property, or a replacement property is what we call it. We might get hit up two months before they're actually listing that property for sale. You might already be involved, kobe, you might be the one contacting us, or the client might contact us. Directly. From there, we give the client all their options and they say oh, you know what? I kind of like this multifamily property in Tennessee and I like this storage facility in North Carolina. We kind of start mapping that out for them as you're getting ready to list the property. So we're all working together in sync with that.
Heath Bandars:Then the sale of the property happens. They now have 45 days to identify what that replacement property is going to be. That's where we really start working and making sure we get the paperwork filed. That paperwork is going to get filed to the qualified intermediary. The QI is going to hold those funds of the sale of the property, because the client cannot at any time hold those funds. Otherwise the government says, nope, that's capital gains. We got to get our fair share. So the QI is kind of the bridge between the start and the finish of this transaction and they really are the ones facilitating the whole transaction Once they get all the paperwork they need filed.
Heath Bandars:Technically, 180 days is the end of this exchange period and then from there about another 30 to 60 days later. That's when our investments the client's investments that we help match them with can start kicking in and working for that monthly passive income. So hopefully that paints a good picture of kind of the whole process from start to finish. It almost sounds too good to be true at times because, like I just mentioned, we have a client who's now making $50,000 a month in passive income and they didn't even know that existed before we talked to them. So these things are out there to help, you know, our farmers in the Midwest, our farmers. We deal with everyone from California to New York. We see it all.
Koby Rickertsen:Right, and so, like folks like me I mean we have a few, you know, colleagues that listen to the show. Know colleagues that listen to the show, um, folks like me that the the plan should be right is to bring you on as a partner and like, sit down with our clients and say, hey, these are your options, right, right, like here's the stuff we can. You know, like you're afraid that you're going to get taxed, or you're you know you don't know what to do with your money, and you know, like there's so many you know, or you're you know you don't know what to do with your money and you know, like there's so many you know, like there's. You know it's kind of like winning the lottery. You farmed your whole life and now all of a sudden you have a commodity that's finally worth, something you know, right, what. What do we do with it? To kind of make sure we have something that that you know, that's a that we can protect our wealth until our end. When's a good point to bring you on?
Heath Bandars:We like to be ahead of the sale, but with that in mind, we also have a quick turnaround time. So that's a big advantage to the client and to land agents is, it could be day 43 or 44 of the process and plans might fall through. You guys, give us a call, we can give you some options that the client's going to not only be satisfied with but still save the exchange. So they're not paying capital gains tax. We don't love those scenarios because it's kind of poop hitting the fan, if you will.
Heath Bandars:But we like to be out in front of it, sit down, take the time. We're also. We kind of have a road show. So we like to get out on the of it, sit down, take the time. We're also. We kind of have a road show. So we like to get out on the road, go meet our clients, whether it's at their kitchen table, whether it's coffee, perhaps a beer every once in a while, kobe, you know. So we like to get out and really make sure they understand what it is they're getting into, what they want to get into, and then from there there's a thorough plan in place.
Koby Rickertsen:Yeah, no, I that that, realistically, is the goal, right. So we can't just be sticky yard sign in, and and even in my industry you can't just be sticky yard sign in and wait for the neighbor to call anymore. You have to be the complete gambit. You have to figure out a way to find. You know how to create the most value for your clients and you know that includes finding people like you, Heath, to partner with to. You know, bring on, and you know, like we've talked about it, I've got some clients that you know we're slow walking them through some stuff and I think one of these days they're going to sit down with you and find, find out that I think you're the answer that they're looking for.
Koby Rickertsen:It's just, you know, when you're dealing with family farm that's been in the family for a long time, I understand it, it's a lot. You know it's just a lot. Farm that's been in the family for a long time, I understand it. Um, it's a lot. You know it's just a lot. It's emotional, it's more than just, uh, you know it's more than just a commercial transaction or right, right, it's, it's a big deal. So you got to understand that. Hey, bud, um, we're going to take one last break and, uh, if you got got time, we're going to come back and spend a little bit more time with you learning about January 1031 and what you guys are up to. We will be right back.
Carrie Rickertsen:Land isn't just dirt. It's where memories are made, families are raised and livelihoods are built. But when it comes time to sell or buy, the weight of the decision is heavy. Where do you even start? Who can you trust to guide you? For too long, land transactions have been treated like a simple exchange Numbers on a paper, a signature on a line. But it's more than that. At High Point Land Company, we don't just list land, we walk it. We learn its story and we find the right buyer who understands its worth. You are not just another deal. You are the steward of something bigger and we're here to help you navigate every step of the way when it's time to sell, when it's time to buy. We're here Because land is more than just land. It's your legacy.
Koby Rickertsen:All right, we are back here with Heath Banders from fiduciary 1031. That is a partnership or the same company or something. I don't know. That's the only thing I haven't quite figured out here. Heath is, but it is with Clark wealth strategies. That's David Clark's company, um, and so I think I got most of that right in the third segment here, how'd.
Heath Bandars:I do you passed.
Koby Rickertsen:I passed. I'm going to get like an 82 at least. Yeah, we're solid D plus, Alright, so you know, it's the American Land Seller podcast, so I would be remiss if I did not turn this all around and make it all about me in the end. So, heath, let's talk about how you can help land sellers like myself benefit our clients. How do we best use you and your tools and team?
Heath Bandars:Yeah, well, for one, we're always here as a resource. So never hesitate to give us a call if you have a client that doesn't know what they're going to do, especially if they're stuck on the sideline with hey, I have $2 million worth of land. I know it's worth $2 million, but I don't know what my next move is. Well, a lot of land agents call us and say can you please, please, talk to our client and give them some of your options so that we can move forward with them. We're happy to help on that front. Also, sometimes we get calls from you guys.
Heath Bandars:Someone just did a deal and they have a little bit of leftover taxable boot. Maybe it's $50,000, maybe it's $100,000, but they still don't want to pay taxes on it. We can help them invest that too so that they avoid that taxable boot. And then the other big thing is our quick turnaround. We can really, like I said, if poop hits the fan day 44, your client doesn't know what they're going to do, but they have a million bucks that might get taxed. Give us a call and we can help and we're happy to. So those are the three key takeaways. I would say we can help land agents, but really again on that education front. I do the CE courses. I do 15 minutes on a team meeting. I do an hour on a team meeting. That's not the CE courses. I do 15 minutes on a team meeting. I do an hour on a team meeting. That's not the CE course. And I just want to help inform people about 1031s, what their clients could potentially invest into, and see if we can help some folks out.
Koby Rickertsen:Yeah, I think that's kind of the thing that when we were sharing our bowl of amazingness down in Arizona at that restaurant, I think that's the one thing that I really took away from meeting with you and your team.
Koby Rickertsen:There was just how you guys have this big heart to help people. You can always tell when you're talking to people there's people that, there's people that you can just you just know that they're like all they are about is like walking away with a check, you know, and then you got the people that the check is like the by-product of just the the process. You know the other guys that were there, uh, that we, um, that we were dealing with some people that that genuinely just loved what they did, loved the process and and really were there for the joy of of, uh, matching people with the right with the right project and so, uh, so I did, did appreciate that, um, when we were hanging out, um, what's like a minimum? Like I mean, I've got a property right now we're getting you know, like we got on the market $320,000, 80, a little pasture out here we're trying to sell. Is that something that's going to be? You know, my clients would be qualifying with you or is that just too low?
Heath Bandars:Absolutely no, these DST sponsors. They like to work with numbers like 100,000 or 200,000. We have a relationship that's strong enough with those guys now where, if we come to them and say, hey, we have a farmer out in Western Nebraska who he only has 50,000 of leftover taxable boot but wants to invest it into your property, they're not even going to think twice. They're going to say, yep, we know your guys' process, we know how it works, we're happy to help and, uh, we can. We can make that work for sure.
Koby Rickertsen:So that's really cool. Okay, so we got 50,000 in how long we locked into it, for you know like is there? I mean everybody knows it rains, tornado, whatever storm happens. How do I get my money out? You know what's? What's that process look like?
Heath Bandars:Well, since we just had two tornadoes left and right of Omaha, I'll kind of start there. So there are insurances in place to protect a client. I won't get into the nitty gritty, but there are some safety vows there. And then on top of that we call them cycles. Traditionally these DSTs have a 10-year cycle, but year four it could end up coming full cycle and they could say, yep, we achieved what we needed to and we're going to cash out now. At that time the client can choose to do another exchange or they can say, yep, I'm happy, I got what I needed and we're good.
Heath Bandars:So we typically see anywhere from five to seven, four to six years for these cycles, four to six years for these cycles. But again, if you're someone that has multiple eggs in different baskets, you might have a DST come full cycle after year three or four, and then another property of yours that you invested in might be year six, Another one might be year eight. So really it depends on the property type, the sponsor, whoever you're investing with. There's a lot of factors that can play into it. But expect that going into it, there are some ways you can get out of it. If you needed to have that liquid cash.
Heath Bandars:It's a little bit challenging but we can work with things with the sponsor to help facilitate that as well as far as them getting cash needed for whatever might be thrown at you in life. So, yeah, there's a lot of different scenarios, but again, we have the resources. We know the QIs, we know the sponsors, land agents that we can call and say, hey, what do you think about this? We're also not trying to be the smartest people in the room, because I know for sure I'm not the smartest people in the room, because I know for sure I'm not the smartest person in the room. So if we don't know something, we always know someone who does and we're one call away from from those contexts. So it's important to us as well.
Koby Rickertsen:Yeah, that's one of the things I like to say is that's the smartest thing I know is that I'm not the smartest one, so I know most people.
Heath Bandars:Does that make you the smartest?
Koby Rickertsen:in the room, knowing that I think there's math, that I could probably find a smart person that could, you know, make me math it out for me to be that. I think there's a way. Yeah, all right. So we've talked about DSTs, things like that. You've also like oil, gas, some of this other fun stuff. You know, we've got some time left. Let's go crazy. Let's talk about some other fun stuff you guys are playing with.
Heath Bandars:Yeah, you know oil and gas you mentioned those are mineral rights. Depending on the time of the year, you might be getting some really great cash on cash returns and other times you might not get any. And that's part of investing in that strategy. We have a lot of folks that use that as part of that diversification factor. So, especially someone that sells a million dollar, two million dollar farm, they might say, hey, I want two hundred thousand in that.
Heath Bandars:A couple other things are upreets. Uh, we've seen that lately we had a client who called and said hey, I want to do an uprete, which those cycles usually last upwards of 20, 25 years sometimes. And you're kind of locked in Uh, once you do that, you can not have another, another exchange performed afterwards. Do that, you cannot have another exchange performed afterwards. But again, when it comes to succession planning and things like that, this particular client wanted his son to have a college fund sitting and waiting for him in a trust when all things were said and done.
Heath Bandars:So there's a ton of strategies you can get into the weeds on. I would suggest anyone that's out there that's interested in those things you just got to give us a call. Don't be afraid to ask. Don't be afraid to talk about it with your clients. The scariest question to ask is what are your plans after you sell the farm? And most of the time they're going to respond and say well, that's none of your damn business, right? Well, we want it to not be our business, but we want to help make sure you know what you're getting into.
Koby Rickertsen:So yeah, Well and again, like that's. You're right, you're right. That's. A lot of what I get is is, you know, like what's. But I think the best question to ask more so is is like what's holding you back on this? You know, and a lot of times that's what it is.
Koby Rickertsen:Sure, I don't want to give a bleepity, bleeping government my money you know and so and so that's where you can kind of oh well, there's solutions for that. So, most definitely, what's kind of the craziest project you've seen that you guys have been able to have some fun investing in. That's some local. Omaha stuff, haven't you Like? We're from Nebraska.
Heath Bandars:So yeah, there's been a podcast from Nebraska.
Koby Rickertsen:That's rare anymore.
Heath Bandars:The crazy stuff that happens to us, kobe, is when we're sitting at the table and there's three siblings, which any farm sale knows that there's always some family conflict involved and we try to mediate it as best as we can, but when one sibling wants to do one thing, the other two want to go a different route. That can be a really tough, scary situation. At times you may not end up selling the farm, which, at the end of the day, if that's what they decide to do, that that's perfectly within their rights, right, and you want them to all be happy at the end of it. We've seen all kinds of scenarios 24 people involved in a sale of a golf course, that you know how are we going to divvy this up and get so far into the weeds of things. But yeah, we've seen it all.
Heath Bandars:We hope that it can be as simplified and as easy for everyone involved and we also hope that everyone walks away getting what they want out of it. More importantly, too, nine times out of 10, we want you guys, as land agents, to be able to be on both sides the sale of the property and the buy, as land agents, to be able to be on both sides the sale of the property and the buy, whatever they're going to buy next. We just want to be the one time that someone is saying, hey, I'm done, I'm ready to be done, ready to be out, I'm selling the farm. That's where we can come in and kind of make that impact. So yeah, to your point. It can be crazy at the kitchen table with those conversations, but we do our best.
Koby Rickertsen:Yeah Well, and, like I said, I go back to this. We've talked about that numerous times. It comes back to creating value and that's, realistically, I think you know, like looking across where the world is going, especially in the world of real estate. We just went a month or so ago to Arizona to the National Land Conference and those guys in RLI, the Realtors Land Institute, and that hang out at the National Land Conference that is where the future of the land, real estate is.
Koby Rickertsen:And the guys that we deal with that want to. Just, you know they, they don't want to share, they don't want to cooperate, they don't want to work together. They, you know this is the way we've always done it. You know, I think that that's, that's a scary future for them. I just don't know how that works. Going forward, again, I may be wrong, but I just there's so many different things out there to help people transition to a better place that's safer for them. And again, you know, this is just one of those tools that you guys have that to me, is just, it's phenomenal for our clients to at least take a look at yeah, yeah.
Heath Bandars:I think our biggest thing too, at the end of it, is trust. Uh, you want to be able to have lunch or a beer with the people you're working with and know, after all is said and done, they also have their, that they have your best interests in mind, so, um, that's why we try to be as transparent as possible when it comes to helping these guys.
Koby Rickertsen:Well, and like people that have worked with me before know that I am like the, I'm so fun and loving and have, I am the greatest guy to work with or I'm the biggest nightmare, like married, like don't if you don't take care of my folks, right? Yeah, exactly, there's a sybil to to me too, and I kind of you know I've had people that, uh, you know they're like, why are you so mad? And I'm like you know, like I thought you know, because, yeah, I referred you, ma'am, look at you this is my neck on the line.
Koby Rickertsen:Now we have got to take care of our people. You know we got to take care of our client. That's our job. So, yeah, no, it's been fun getting to know you guys. I'm looking forward to the deals in the future and helping our clients. How do we get a hold of you, heath, if somebody is looking for you other than just reach out to me, and I'll make sure that if they get a hold of me I'll get you in touch with you and we'll put your contact information in the show notes, if that's all right with you.
Heath Bandars:Yeah, absolutely. We do have a website fiduciary1031.com. We're also on LinkedIn, facebook. I also am starting an Instagram page, the fiduciary1031guy. It's going to be a lot of educational pieces on there. I'm not going to bombard people with weird content, it's just going to be more quick hitters to remind you that, hey, we exist, we can help clients in this scenario, that scenario. And then we're always a phone call away or a text away. I mean, it could be Saturday night at five o'clock again, not ideal, but day 44 and clients plans fell through and we're happy to take that call. So Yep.
Koby Rickertsen:I know you are and yeah, you got to do something, that Instagram thing, you got to do something with that fancy studio until five.
Heath Bandars:I know right, it's good use.
Koby Rickertsen:So, yeah, somebody's got to got to call. That is really cool, though I got to. You know my office, I mean, that's what mine's been forever, but now that I have my own theme music, keith, I yeah, I'm pretty sure. I'm pretty sure I need to start working on my own studio.
Heath Bandars:I'm thinking well, you got the Husker sign. That's the most important thing.
Koby Rickertsen:No, huskers.
Heath Bandars:Yeah, go Big Red.
Koby Rickertsen:For sure no, but anyway, well, sir, I appreciate so much that you took the time to do this and look forward to catching up with you in the near future.
Heath Bandars:Thanks, kobe, appreciate it.
Koby Rickertsen:Thank you and we will see you all down the road as we wrap up another episode of the American Land Seller.
Announcer:Podcast as we wrap up another episode of the American Land Seller Podcast. Thank you for joining us. Visit wwwamericanlandsellercom and find us on one of your favorite podcast platforms. If you would be so kind and you enjoyed today's insights, please like, subscribe, rate, follow and review us on whatever app you are listening or watching on. Connect with us on social media for updates Until next week. Kobe wishes you success in your land endeavors. God bless you and have a great week.
Koby Rickertsen:The American Land Seller is brought to you in part by LandHubcom. Are you in the market for the perfect piece of land? Look no further than LandHubcom, your solution to the biggest challenges facing land buyers and sellers today. At LandHub, we're revolutionizing land transactions by effectively connecting buyers and sellers. Say goodbye to the struggle of finding or marketing land for sale. We understand the power of new media marketing, leveraging social media and targeted ads to bring together the ideal audience for all property types. Join us today and experience the expertise of LandHub's land marketing professionals. Whether you're buying or selling, let us show you the way in the ever-evolving world of land transactions. Visit LandHubcom and discover what the future of land marketing looks like.
Koby Rickertsen:Landhubcom, where your land journey begins, and High Point Land Company. When it comes to buying and selling land, High Point Land Company sets the standard for excellence across the Midwest and beyond. Our expert land specialists bring unmatched market knowledge and a personal touch to every single transaction, Whether it's a farm, ranch, recreational or even investment property. We provide the expertise and integrity you can trust. Looking to buy or sell, we offer a premier selection of properties and a marketing strategy designed to get you results. From productive farmland to recreational retreats, we help you maximize your investment. Visit wwwhighpointlandcompanycom today and experience the difference. High Point Land Company a true leader in land sales.
