Helping Land Owners with Max Hansen

In this weekend edition of The Real Estate Espresso Podcast, host Victor Menashe welcomes back Max Hansen, a seasoned attorney and managing director at Accruit, a nationwide 1031 exchange accommodator. Hansen shares insights from his nearly 50-year career in real estate transactions, including his experience at the recent Realtors Land Institute conference in San Antonio, which drew over 700 farm, ranch, and recreational property professionals. The episode centers on a critical trend: the impending generational shift in family-owned agricultural land, with an estimated 40% of U.S. family farms and ranches at risk of disappearing within a decade due to lack of succession plans and disinterest from younger generations in farm life. Hansen explains how 1031 exchanges offer a strategic exit for aging landowners, enabling them to defer capital gains taxes while reinvesting proceeds into income-producing assets like Delaware Statutory Trusts (DSTs). These DSTs allow for diversified, low-maintenance real estate investing with minimums as low as $100,000, offering a path to passive income and financial security in retirement. The discussion also covers the tax advantages of DSTs, their non-recourse debt structure, and the importance of due diligence when selecting a sponsor and broker-dealer. Hansen emphasizes that DST investments require a mindset shift—passive ownership with no day-to-day control, a long-term hold (typically 5–8 years), and strict compliance with IRS guidelines like Rev. Proc. 2004-86. He advises listeners to research broker-dealers and sponsors carefully, leveraging Accruit’s resources and network. The episode concludes with practical next steps: contacting Accruit directly via phone or website, reviewing their list of qualified broker-dealers, and engaging in informed conversations before investing. The tone is optimistic and educational, highlighting opportunities in a changing real estate landscape.