True" welcome, everyone, to our Culture Estate channel where we cover all things real estate, entrepreneurship, and mindset. Today on Culture Report, we'll be talking about bulk sales, specifically in New Jersey, and what every real estate investor needs to know before the day of the closing. Stick around, and we'll get right to it. Now, first, let's start off with an explanation of what bulk sales are. If you're in the state of New Jersey, bulk sales appeared on the scene many years ago. What happened is that New Jersey was not getting their fair share of taxes when real estate investors were selling their properties for a profit. So, what they did, specifically when Christie was in office, is they implemented the already existing bulk sale transfer when real estate investors would sell their properties for profit. So, if you are an investor and you made $100,000 on your property, but then at the end of the year, you either squandered that money or reinvested it into something else, a lot of times the state wasn't collecting their fair share of the money. So, what they implemented was a way to just deduct it at the closing table. This was a nightmare scenario, no one knew what they were doing, and everyone was scared. So, we actually had to figure out a way to make this more tolerable if we wanted to continue investing. The way it works now is you have to make sure that you declare to the state exactly how much you're making on that profit, or close enough to an estimate of what you're making on that transaction right before the closing. If not, they're gonna hold a humongous escrow and expect you to be okay with it. So, in this video, we're gonna share with...
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