How to Offset Your Taxes Through Multifamily Real Estate

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This Money Monday$ learn ways you can offset your taxes through multifamily real estate!

VIDEO TRANSCRIPTION

00:00
21 first one at 20 21. welcome back
00:02
everybody we missed you all i know we
00:04
skipped last week you know ben campbell
00:05
wanted to screw around and not do any
00:07
work so uh
00:08
you know took it easy i needed a week
00:10
off everybody even though we actually
00:11
did a lot of work
00:12
and we didn’t actually take any time off
00:14
but uh glad to have everybody back
00:16
we’re excited kick this 20 21 year off
00:19
with our money mondays we’re going to
00:21
keep going every week
00:22
just for you guys because we like
00:24
educating the space hopefully people
00:26
have good new years yeah good christmas
00:28
yeah it’s a good holiday season right
00:30
then what’d you give me for christmas
00:32
buddy i got you world peace some coffee
00:34
starbucks that’s all i asked four bucks
00:36
for a whole lot
00:36
even what did you do you didn’t even
00:38
bring me a coffee from starbucks
00:40
we met up the day after christmas but he
00:42
did not bring me a coffee shop no no
00:44
you’re just drinking yours too quick so
00:45
we got a coffee maker
00:46
we do have a coffee maker that was fun
00:48
okay so we don’t have as much starbucks
00:49
these days yeah we’re trying to wean
00:51
ourselves off
00:51
yeah that’s not gonna happen so what are
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we talking about today
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we are talking about how to offset your
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taxes through multi-family real estate
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mouthful i was just going to say saving
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taxes but
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you know uh it’s an important thing
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right we know it’s about to be the
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holiday
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sorry tax season for people right i
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don’t think we’re going to get a delay
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like we did last year from kovid
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right the iris hasn’t announced one as
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far as i know so i think people you know
01:16
from now through april it’s going to be
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about
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you know taxi is going to come and hide
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gear which reminds me i got to actually
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email our cpa something but saving tax
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is an important part of real estate
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right it’s
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a big reason why a lot of people invest
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in real estate no and
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and if you don’t know that that’s that
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is one of the biggest reasons that we
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like commercial real estate because of
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all the tax incentives that you get so
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people really need to pay attention to
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that right it’s not
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everybody kind of gets caught up in the
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cash on cash returns and total returns
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and
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you know the cash in your pocket right
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but you have to realize the less money
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you have to pay the tax guy legally
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right this is all legal yep the more
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money stays in your own pocket folks so
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yes it says right you are more patriotic
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if you do the things the government is
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asking you to save on taxes so you can’t
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hate on us for doing the
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those tom will write really popular
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really savvy uh cpa
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so you know i think it’s a fair point
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right there are incentives that the
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government adds to
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basically let people reduce their tax
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burden by doing certain things the
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government wants
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one of which is investing in real estate
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so it’s an important part of the thing
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jobs crazy jobs a lot of reasons why no
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there’s not it’s not the only reason
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right
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yeah we’re we’re spurting job growth
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right we also
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obviously provide housing so they
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incentivize commercial real estate uh
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investors you know through so that’s
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what we’re talking about today monday
02:32
mondays do this every monday
02:33
at what time ben 3 37 3 30 central every
02:36
monday
02:37
if you have any comments questions ask
02:38
them live we’ll go ahead and answer them
02:40
live
02:40
and really we’ll present about 15 20
02:42
minutes and then we’ll do q a at the end
02:44
and really that’s the best part that’s
02:45
where we have fun
02:46
it doesn’t have to be about what we
02:47
talked about today feel free to ask
02:48
anything you want to ask
02:49
we will don’t share and do that until
02:52
you say it don’t you say it
02:53
say what no you can ask why ben’s bald
02:55
so you know i got to kick that off for
02:56
the year
02:57
but uh you know ben lost his hair many
02:59
many many many moons ago
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um so yeah people have questions feel
03:03
free to ask but otherwise i’ll kick it
03:05
off so let’s get right into it man so
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we’re talking we’re talking taxes
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you know um so what are some of the ways
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that you can offset
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your taxes right so let’s let’s talk
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let’s talk about this in in the
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the lens of you’re a passive investor in
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a syndicator’s deal right
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you know let’s let’s look at it that way
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right so how can
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investing in somebody’s deal as a
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passive investor
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help you potentially offset some of your
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own personal taxes yeah so
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whenever you are investing in someone’s
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it’s called being an lp let’s just call
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what it is right
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you are a limited partner nine times out
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of ten again
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not every deal is structured the exact
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same but you’re usually investing
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in a new entity a single purpose entity
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is what we call it right that is buying
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that asset and as an investor you are
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buying shares in that entity
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all right that’s hopefully everyone gets
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that so syndication
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business exactly we have a business this
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business it is owned by many
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shareholders all the lps and gps
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right that business is going to get a
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loss because it owns that piece of real
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estate
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okay now fast forward right so now how
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do we get the loss right it’s really the
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next question
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right and so the government for those of
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you that might own a house right you get
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to depreciate your house over 27 and a
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half years
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the government says you basically take
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the price of your house and again it’s
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the how the physical house can’t
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it cannot include land because lane does
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not depreciate you divide that over 27.5
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years and each year you’re taking that
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piece as a loss
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because the theory is that essentially
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that house the material
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gets worth less each year now whenever
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you go to sell
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different stories but that’s the high
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level thing now in real estate we can do
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some things
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to kind of help juice that right on the
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commercial real estate commercial real
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estate side and actually you can do it
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on the residential side there’s a
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company that helps for those of you that
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own a residential portfolio there is a
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company i found
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out about that will let you they’ve kind
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of because the reason why people only
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don’t do it on the residential side
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because
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it’s cost there is a several thousand
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dollar study that you have to pay what
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we call a cost segregation study
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to do what we’re about to talk about but
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actually there’s a company that does it
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quasi-automated on the residential side
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so
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you can do it on the residential drop
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come on yeah i don’t know the name of
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the company
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but you know the important thing is that
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now rewind right you can do something
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what we call cost segregation study okay
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and what that means is you accompany a
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professional engineering firm
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will come out and basically we use
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madison crest we use
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right and essentially they will
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basically say you know what this
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apartment has 200 stoves
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it’s got 15 toilets the life of a stove
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and a toilet is not 27.5
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right and so some things you can
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accelerate that you know you basically
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you can
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accelerate it right you do cost like a
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study they’re saying okay the life of
05:28
these things are different
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right and then therefore we can get more
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losses on the front end versus the
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more depreciation on the front end right
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that transfers as a paper loss
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on to the the partnership’s tax return
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right and as an owner of the partnership
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right remember going back to what you
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mentioned you’re an owner in a
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partnership
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right you’re going to get your pro rata
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share of that depreciation therefore
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loss
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of the partnership so depreciation is
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just a loss even though so we have
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most deals we distribute money but we
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also have losses so the loss is actually
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offset what we’ve given investors right
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and so with the cost segregation study
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plus there’s another thing called the
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accelerated depreciation
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i don’t want to get into that but
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anyways year one we have a lot of losses
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and really for perspective
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most deals we’re seeing 40 to 75 percent
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of what is invested as a loss in year
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one it’s huge
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and so investor that puts in you know
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100 000 they’re probably getting 60 70
06:22
000 losses that year now how does that
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affect you as a person right
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whenever you have losses you can take
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those losses
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and offset that against income now yeah
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i want to caveat that
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right go talk to your cpa everyone’s
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situation’s a little different there’s
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certain types of losses and certain
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types of income that can cancel each
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other
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there’s the question of are you real
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estate professional there’s a lot of
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things to consider
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but just know right there’s kind of
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ordinary income and there’s non-ordinary
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income
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and different buckets of income can
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offset differently right there’s a whole
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set of planning that you should be doing
06:54
with your cpa but for out of planning a
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sophisticated investor right we have
06:57
investors that literally their number
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one reason for investing
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is to get the losses yep second you know
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there are number one reasons
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not to lose money second most important
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reason is to get the losses
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the third most important reason is
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actually generating new money right
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and so again it’s a very powerful
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vehicle so if you’re someone that is
07:13
getting a huge check to sam you’re going
07:15
to have to give a check to
07:16
uncle sam this this nick of this quarter
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right you should really ask yourself
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okay what could i be doing differently
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with my tax strategy
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to help me reduce my tax burden and so
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one way to also look at it too so say
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you’re a passive investor and you have
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fifty thousand dollars of passive income
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that has come in that year right
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but guess what you have fifty thousand
07:34
dollars in losses right
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so normally if you didn’t have that loss
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you’re going to pay tax on that passive
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income right and i don’t know exactly
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what it might be everybody’s situation
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is different right assume it’s 15 to 25
07:45
maybe even upwards of 30 right but if
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you have that loss
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against the the income right now you’re
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a net zero
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you’re not getting taxed on anything
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right so you’re pocketing that 15
07:56
20 25 and not having to pay uncle sam
07:59
right this is all completely legal folks
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right
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and so you know this is why like ferris
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had mentioned that last quarter of this
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last year we were bummed out because we
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didn’t have a deal but we had a ton of
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people reaching out to us you got a deal
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you got to deal you got a deal because i
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want to i want to deploy capital before
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the end of the year so i can get
08:15
the depreciation and therefore help me
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offset my taxes that are going to be due
08:19
this year in 2021 right yep so you know
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that is a big
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part of anybody’s strategy or should be
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a big part of anybody’s strategy that
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wants to invest in
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in commercial real estate is the tax
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benefits that we can see right
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so we talked about being a part of a
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partnership
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and having a pro rata share and we’re
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selling shares of
08:37
of the llc right what does that
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translate what’s the document that they
08:40
get
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so if you if anyone has a business you
08:43
might have heard of what’s called the k1
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right that is the irs legal document
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that any shareholder of a business gets
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right and essentially whenever we do our
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losses
08:53
right we do all you know the cpas do all
08:55
the math and then that gets divided out
08:56
to everybody pro rata
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and basically they get a k1 from us
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which they take to their cpa says look
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i generated a paper loss of 50 000
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on this investment that cpa takes that
09:06
loss and applies it to the rest of their
09:07
taxes and keeps rolling
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and so that’s what a k1 is it’s a very
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important document you should have one
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for every
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any entity that you are a shareholder in
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absolutely so
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you know it’s a busy let’s just say
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february is a very busy time for me and
09:18
ben because we’re having to work with
09:19
the cpac to get all that
09:22
squared up and ready so we can get that
09:23
out to investors and just so everybody
09:25
knows right
09:25
i think there’s a legal requirement to
09:27
have it out to you know um
09:29
your investors in the properties right
09:31
anybody that’s owed a k1 is owed it by
09:33
march 15th
09:34
right so usually like ferris has said we
09:36
have to wait until january 15th to get
09:38
the
09:38
the the final financials from obviously
09:41
december
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right and then it’s like getting shot
09:43
out of a cannon for the next six to
09:44
eight weeks right
09:45
to make sure that you can get the the
09:47
property’s tax returns
09:48
make sure that all those k-1s get
09:50
disseminated securely and safely over to
09:52
your investors
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it’s about the only time of the year
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that i see ben actually do some work so
09:56
no usually for everybody and everybody
09:58
that is our investor kind of knows i’m
10:00
usually the one kind of running with
10:01
that one and it’s it’s a very chaotic
10:02
process
10:03
we’ve since been able to streamline it
10:05
through some of our investor portals and
10:06
stuff like that but
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you know each year they have different
10:09
questions that they might ask of our
10:10
investors so then we have to go back and
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ask those questions so
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sometimes it could be a little bit
10:14
stressful but ultimately that is the
10:16
that’s
10:16
that’s that’s part of the product that
10:18
you deliver to your passive investors
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so you really need to understand that
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and you need to have a cpa that
10:22
understands that process too right
10:24
your run-of-the-mill no offense to
10:26
anybody that’s a run-of-the-mill cpa
10:28
might not fully understand all the tax
10:30
benefits that go along with commercial
10:31
real estate
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right so we always suggest somebody get
10:34
somebody that it knows
10:35
real estate right to do the property tax
10:38
return
10:39
it’s not as important as your personal
10:42
tax returns
10:42
even though they should have an
10:43
understanding of it but definitely at
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the property level they should know
10:47
under
10:47
they should know and understand and
10:48
actually speaking of that so next week
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next wednesday i think we are having our
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online virtual meetup right our texas
10:56
mfm meetup
10:58
i don’t know what the url is off top of
10:59
my head go to distributecut.com we’ll
11:01
have a link there for it right go to
11:02
find our meetups page and we have uh
11:05
bradley is a very famous real estate cpa
11:09
he is going to be doing a deep dive on
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how you as an investor can get the
11:12
benefits
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and what that looks like and he’ll go
11:14
through a lot and i are not cpas we’re
11:16
not going to answer those questions we
11:17
probably should have had a disclaimer we
11:18
are absolutely not
11:19
we we suggest that everybody that’s
11:21
listening to this that has questions
11:23
do not ask us about about tax accounting
11:25
all that stuff
11:26
that is definitely something you need to
11:27
ask your own cpa right it’s important
11:29
but definitely i recommend people
11:30
register for that check it out and then
11:32
wednesday you can ask the guy it’s a
11:33
free way to ask cpa questions all right
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that’s how i look at it i mean really
11:36
come prepared any questions and i’ve
11:38
seen it because we’ve done one before
11:40
where people come with their own no
11:41
you’re pretty impressed because you guys
11:42
did it you guys
11:43
had done it at the nationals we did it
11:44
at our national mfm live so we’re
11:46
brought to you
11:46
guys to our texas version and he’ll dig
11:49
in and start to really talk about the
11:50
good the bad the ugly
11:51
even stuff about the new tax laws that
11:53
pass right what benefits people
11:55
and you know how to take advantage of
11:56
those and so highly recommend people
11:57
checking that out it’s a good way to ask
11:59
a real expert
12:00
questions versus kind of these two
12:01
yahoos up here so yeah well
12:03
i’m not the yeah so with that said let’s
12:05
keep moving so do all investors need a
12:07
cpa
12:08
yeah it all depends right you know i
12:10
mean if you want to do your own tax
12:12
return at the personal level that’s up
12:14
to you
12:14
i would suggest when you start when you
12:16
when you have enough money to put into a
12:18
deal
12:18
you should probably have enough money to
12:19
pay a cpa because they’re going to help
12:21
you
12:22
maximize your tax tax benefits and
12:24
that’s not even just real estate that’s
12:25
just in general and just in life
12:27
right folks so you know pay the extra a
12:29
thousand bucks to get somebody that
12:31
knows what they’re doing
12:32
um because that’s ultimately uh gonna be
12:34
your benefit right it’s gonna keep more
12:35
money in your pocket right so
12:36
um ways to vet a cpa i think it goes
12:39
along with any vendor that’s in our
12:40
space right
12:41
that’s for referrals right we did we’ve
12:43
had several that we’ve worked with over
12:45
the years and we’ve kind of landed on
12:47
um one of our one of our vendors out of
12:48
dfw names deborah prichard
12:50
m r mrm cpas they’re good folks
12:53
um deborah also has done a fair amount
12:56
of passive investing too so she
12:57
understands
12:58
how all this works so not only is she an
13:01
investor she’s also a cpa
13:03
so that’s a good combination to have
13:04
right definitely you know talk to people
13:06
understand because again like ben said
13:07
there’s a difference between a cpa
13:09
a real estate cpa really like a
13:11
syndicator cpa and even
13:13
a hey i am a high net worth person
13:16
i need creative tax strategies that’s
13:18
what are the options they’re very
13:19
different people
13:20
right different mindsets different
13:21
spaces and so and it’s not that there’s
13:23
one better the other it’s just that’s
13:24
where they’re focusing their efforts and
13:26
energy so
13:26
make sure you have these different
13:28
people so if you have your own asset
13:29
like you said
13:30
deborah does our our our books for our
13:33
properties right
13:34
but again you know while deborah’s very
13:36
knowledgeable and everything she might
13:37
not be the person that tells me about
13:38
oil investing what i can generate losses
13:40
there right
13:41
maybe so you understand there’s
13:42
different cps for different roles just
13:44
like
13:45
within real estate there’s different
13:46
asset classes cps have their own
13:47
delegation and tax strategists right
13:49
you know like that’s kind of tax
13:51
strategy might be different than
13:52
somebody that does the books that might
13:54
be different than somebody does the tax
13:55
return right folks absolutely
13:57
there’s just different levels and
13:58
different sophistications and experience
14:00
yeah so really quickly monday mondays
14:01
with us every monday 3 30 central right
14:03
today we’re talking about offsetting
14:04
your taxes through real estate
14:06
and really we do about you know 15 20
14:08
minute presentation a bunch of different
14:09
topics people have future topics let us
14:10
know we’re happy to answer those
14:12
and then we’ll do about 10 minutes q a
14:13
all right so if anyone has any more
14:14
comments questions really quick let me
14:16
just run through the questions and then
14:17
we can continue on so
14:18
savion says what’s going on welcome back
14:20
2021 one of our top supporters
14:22
we appreciate it uh holidays were great
14:24
looking to kick ass in 2021 yeah welcome
14:26
thank you uh chat says happy new year
14:29
has been in ferris chat
14:31
long time no see ho paul as well chat
14:33
head up how are you been a long time no
14:34
see as well
14:35
how happy she’s happened to yours guys
14:37
all right and jeff jefferson gone happy
14:39
new years thank you
14:40
likewise and then larry my friend long
14:42
time no see says happy new years fellas
14:44
as well we appreciate that guys yeah
14:45
yeah it’s good to see everybody
14:46
see you guys you guys should come out to
14:47
our conference coming up we’ll go to
14:48
that here at the end come out there
14:50
there’s gonna be there’s gonna be some
14:51
stuff on some on on taxes right
14:53
absolutely
14:54
i mean we always we always include that
14:55
because that’s a big part of what we do
14:56
uh-huh so let’s keep going
14:58
all just a bunch of happy new year’s
15:00
happy new year you know i definitely
15:01
don’t want to ask
15:02
if anyone has any comments questions
15:04
feel free to ask them right we are i
15:05
guess in the questions part of the show
15:06
did not remember
15:07
that open q a right now buddy yeah so if
15:10
anyone have questions it doesn’t have to
15:11
necessarily be about today’s topic right
15:13
or if you want to just drop a comment in
15:15
the comment section and ask you know
15:16
what would you like us to talk about
15:18
right you know
15:18
we’re always trying to make this
15:19
interactive we want comments we want
15:21
questions you know we want people to to
15:23
provide some feedback
15:24
yeah what we’re doing that’s a big part
15:26
of what we’re trying to do but speaking
15:27
of taxes i guess i do have a little
15:29
short story to tara right we had one
15:30
investor who’s a friend
15:32
you know he invested in his first
15:33
investment right thinking that asset you
15:35
know he invested 75 thousand dollars
15:37
yep and he got his k1 and he called me
15:39
and he’s like i don’t understand you
15:41
guys are white-collar criminals i’m like
15:42
what do you mean
15:43
and he basically said he invested 75 000
15:46
and on that deal he got a 60 000
15:48
paper loss and we had done a
15:50
distribution so he didn’t quite
15:51
understand how he could put in
15:52
essentially seventy five thousand
15:54
dollars and get sixty thousand dollars
15:55
of losses year one
15:57
in his case he’s a real estate
15:58
professional so he’s able to even really
15:59
take advantage of that to the fullest
16:01
extent so it’s a very powerful vehicle i
16:03
thought that was a funny story
16:04
where in his mind he just was the first
16:06
time investing in real estate and he you
16:08
know even though he’s been around real
16:09
estate he knows a lot about it he just
16:10
kind of is an eye opener for him right
16:12
he’s seeing how it impacts
16:13
him and his role in you know kind of
16:15
waking up to that so and one thing i
16:16
want to point out to folks
16:17
he ferris kind of touched on a little
16:19
bit real estate professional versus not
16:21
that’s something that’s very very
16:22
powerful for people that are doing this
16:23
full-time
16:24
you should really look into that and you
16:25
should look into that with your cpa it
16:27
can
16:27
it can it can blow your your tax
16:30
benefits into another
16:31
another galaxy if you know how to
16:33
utilize that properly right yeah not
16:34
everybody’s going to fall into that
16:36
category but if you do you’re you’re in
16:37
good shape yeah so let’s see so let’s go
16:38
through some questions so no much ask
16:40
can you share uh cpa deborah’s contact
16:42
information please good question let me
16:44
see what it is i’ll dump that we’ll dump
16:45
that in the comments she’s
16:46
great guy obviously she’s gonna be
16:47
probably really really busy this time
16:50
yeah mrmcpas.com so mrmcpas.com
16:55
and her name is deborah pritchard so you
16:57
can find her there yeah so
16:58
you know definitely recommend really
17:00
nice gal highlight her
17:02
mike have you been a long time no see
17:04
he’s asking how can you offset taxes
17:05
through multi-family investing
17:07
sorry through multi-family lp investing
17:09
if you are not a real estate
17:10
professional
17:10
great question so and i wanted to answer
17:13
that one way ferris might answer another
17:14
way right
17:15
so if you have a lot of passive income
17:19
right then you can offset said passive
17:22
income
17:22
with those losses right if you don’t
17:25
right and once again you talk about
17:26
non-ordinary income
17:28
yeah you know then you might not be able
17:30
to right but say
17:31
like what like i use my example right
17:32
say you made a hundred thousand last
17:34
year passive income
17:35
right but you had a hundred thousand
17:36
dollars in losses well you could
17:37
actually use those losses right to
17:39
offset each other
17:40
so but sometimes that’s not always the
17:42
case it just depends
17:43
different buckets of income different so
17:45
people will do a couple things right
17:46
some people will generate losses and
17:48
stocks and other things in that year
17:49
than
17:50
selling the next year to kind of help
17:51
cancel that right mike i think your
17:53
question is
17:53
which is kind of the next thing you ask
17:54
is am i correct if you have if you have
17:56
a w-2 you cannot be a real estate
17:58
professional
17:58
yes right so you know talk to your cpa
18:01
there’s different ways around that a
18:02
common strategy is a person will have
18:04
their wife be the real estate
18:05
professional that’s true right and so
18:06
you know a married couple one person
18:08
could be w2
18:08
one person can be real professional they
18:10
file jointly right
18:12
that’s a really common way to do it
18:13
within the rules of the law
18:15
and again get that benefit and so
18:17
definitely you know talk to them it’s a
18:18
good way and
18:19
yeah mike says gotcha active income
18:21
versus passive income absolutely yeah
18:22
but again the real estate professional
18:23
is a good designation i
18:25
highly recommend looking into yeah talk
18:27
to your cpas about that yeah look into
18:29
that because
18:29
next week’s you know because i’ve
18:31
already seen that presentation on that
18:33
i’m guessing he’s gonna go through some
18:34
presentation on next week’s
18:35
uh meetup that we’re doing live on
18:36
wednesday right he will go into that and
18:39
kind of you know his thoughts on
18:41
w-2 versus not really professional or
18:42
not and what the kind of requirements
18:44
are right
18:44
the the government has clear set of
18:47
rules around what can qualify the real
18:48
estate
18:48
and shanna can you dump the the link
18:51
okay yeah
18:53
do you know the link channel all right
18:55
disrupt equity.com
18:57
virtual meetup if you want to go check
18:59
out that i guess we should have that on
19:00
there because
19:01
it’s important but yeah check that out
19:02
guys that guy’s a real professor a real
19:04
cpa
19:04
you can ask him all the hard questions
19:06
yeah he’ll be able to answer everything
19:09
um me and ben are fake professionals no
19:11
but we’ve just been
19:12
we’ve done this enough we kind of
19:13
understand it and i’ve i’ve had to field
19:15
a lot of questions that i’ve then worked
19:16
with our cpa on right absolutely
19:18
you know i’m already starting to kind of
19:19
get them for the new year right people
19:20
are just trying to do tax strategies and
19:22
understand how this works right
19:24
so um any other questions anyone have
19:26
any more comments questions
19:28
if not we’ll keep going but many mondays
19:31
we do this every monday 3 30 central so
19:33
if you have any questions feel free to
19:34
ask we do a bunch of different
19:35
presentations
19:36
i don’t know what we’re talking about
19:37
next week but this week we’re talking
19:38
about so
19:39
next week we’re talking about tips for
19:40
sourcing multi-family investors oh
19:42
all right so we’re talking about you
19:44
know probably getting some passive
19:45
investors you know we’ve had a variation
19:47
of this in the past but you know this
19:48
wasn’t a popular one when we had it so
19:50
we’ll kind of dive a little bit more
19:51
deep on that section but
19:53
before we get to that right what do we
19:55
got coming up next month
19:56
multi-family investment i can’t believe
19:58
this next month yeah i know it’s just
19:59
thinking that
20:00
sorry it’s our conference coming up in
20:01
40 i don’t know i’m about to make up
20:03
some math but it’s 55 days my med guest
20:05
there you go uh
20:06
you know we did this a lot we do this
20:08
our goal is to do three of these a year
20:09
right we’ve we started this the year
20:11
before last so now we can say
20:12
2000 two years ago yeah and so we you
20:15
know we did the first one back then
20:16
it was a huge success and we did two
20:18
more that year so our goal is to do one
20:20
in
20:20
our backyard houston then doing west
20:22
coast and east coast we did seven we did
20:23
uh
20:24
la and then we did boston and then we
20:26
did houston again
20:27
last february then we’re supposed to do
20:28
san francisco that got canceled the
20:30
boston got cancelled so
20:32
but we’re gonna do it again coming up
20:33
right we think the world is kind of
20:35
calming down a little bit end of
20:36
february
20:37
february 27th we last year you know for
20:40
kind of reference we had 400 people out
20:41
there yeah
20:42
we had the mayor of houston out a bunch
20:43
of different speakers and our goal is
20:44
really putting together an environment
20:46
people can network
20:47
get to meet other operators get to meet
20:48
other investors and again this business
20:51
is
20:51
all about relationships right and so
20:52
helping foster that
20:54
environment where people can build those
20:56
relationships and go do bigger better
20:58
things together
20:58
yeah absolutely it’s it’s some education
21:00
you’re not going to learn everything
21:01
that you you need to
21:02
learn about this business in one day
21:03
folks right but we’re going to try to
21:04
give you the vendors that we’ve used
21:06
great sponsors great speakers yeah right
21:08
and you’re going to learn a little bit
21:10
and but you’re also going to have some
21:11
tools and
21:11
some contacts to walk away with and and
21:14
at least continue on with your journey
21:15
right as you get educated in this space
21:17
so we’re giving a coupon code i think
21:19
this one’s good through the end of today
21:20
because this is kind of our end of the
21:22
year 2021 put that coupon code in get
21:25
2021.
21:26
two zero two ones you said 2021 but they
21:28
might have talked about something else
21:29
yeah the actual code is 2-0-2-1
21:31
check out you’re going to get 20 off for
21:34
today only
21:35
on the mfin so go mfi
21:38
or mf investornetwork.com
21:42
and uh put that coupon code in there and
21:43
you can get your 20 off so
21:45
absolutely no no but yeah those are
21:47
those are actually selling out pretty
21:48
pretty quick
21:49
we’re excited about it yeah that’s kind
21:50
of that’s actually we’re going to limit
21:52
the number of people because we want to
21:53
make it a smaller we’re going to
21:55
probably you know we’re getting a bigger
21:56
room less people to kind of mature space
21:58
so it is actually we got a lot more just
21:59
than we expected so yeah check that out
22:01
if you’re interested i think there’s a
22:02
lot of demand you know people just want
22:03
to get back in the network
22:04
right you know but we’ll be doing that
22:06
right here in houston so we’re excited
22:08
about that one
22:08
absolutely if people have questions
22:10
comments feel free to ask them so i know
22:11
brian bingham says looking forward to
22:12
mfin so
22:13
all right i look forward to seeing you
22:14
there as well brian brian is
22:16
what coming up on our third year
22:17
sponsorship right yeah so you know
22:19
obviously appreciate that he does he
22:21
does good he does a good um
22:24
yeah and we’re talking about a lot of
22:25
what he does right is this cost saying
22:27
yeah go ask brian the hard question
22:28
you know you check the chat he asked the
22:30
thing go fill the room drop your contact
22:32
info in there brian if you would man
22:33
actually we should tell people so brian
22:35
is who does our cost segregation study
22:37
brian bingham yeah madison crest i’m
22:39
addicted to crest so yeah
22:41
that’s who brian is i don’t have some
22:42
brianna’s email off the top of my head
22:43
that’s why i want him to drop it in the
22:44
comments yeah so a great guy
22:46
has saved us a ton of money in taxes
22:48
over the years so
22:49
mike is asking off topic do you uh do
22:52
you see any lenders lately doing
22:53
mezzanine debt
22:55
so mezzanine debt yes prep equity
22:59
yes right those are still around because
23:00
again those guys
23:02
make it i don’t say they can kill them
23:04
they do really well
23:05
in the way they structure their stuff
23:07
right that’s all controlled
23:09
if if your question was about more
23:11
bridge debt i’ve seen a lot less bridge
23:13
debt the british debt market has
23:14
dried up but it’s kind of slowly coming
23:16
back from kind of what we’ve done
23:17
there’s definitely some there’s
23:18
definitely still some lenders out there
23:20
there’s not as many lenders right and
23:21
i’d say one and that also is probably
23:23
the same thing with mez and praf too
23:25
right you know there’s still some guys
23:27
out there probably the bigger firms that
23:28
we’re always going to be around
23:29
yeah so but just be careful right folks
23:31
you don’t want to be over leveraged and
23:33
you know if it makes sense with that
23:35
deal that’s fine well that’s not usually
23:37
our
23:37
our cup of tea you know to kind of go
23:39
that route because ultimately it’s
23:41
usually people will do that because they
23:43
can’t raise the equity right we don’t
23:45
tend to have that problem
23:46
um and so you know they have to go and
23:48
get another mezzanine
23:50
piece on top of the debt that they have
23:53
and then only have to bring like five
23:54
percent to the table right in terms of
23:56
equity
23:57
right but what ends up happening right
23:58
is that that mez piece really controls a
24:00
lot of the deal
24:01
right and so your equity you know could
24:04
potentially
24:04
be in a inferior position to the mess
24:07
piece let’s just let’s leave it at that
24:09
right
24:09
so just be careful with that absolutely
24:11
yeah so
24:12
what else we got no more questions
24:14
people feel free to ask taxes so brian
24:16
did include his email
24:17
be biggum b-i-g-h-a-m madisonspex.com
24:20
check it out
24:21
cool and so love it you know it’s in the
24:22
comments for those who want to find it
24:24
also we included a link to the virtual
24:26
meetup if you want to
24:27
next wednesday we are having a real
24:28
estate cpa professional come out
24:30
and do a online virtual webinar highly
24:33
recommend people come with their
24:33
hardware are you better than us
24:35
yeah no no this guy’s actually a tax
24:37
professional and knows what he said so
24:38
definitely check that out but
24:40
if not any more comments questions
24:42
otherwise we’re going to call this a
24:43
wrap here another minute or two so
24:44
for those tuning in monday monday
24:46
through this every monday 3 30 central
24:47
we’re excited to be back this
24:49
starting you know this year so you know
24:51
we’re going to keep it up our goal is to
24:52
do
24:52
almost every monday between here and the
24:55
next the rest of the year so
24:56
okay we got to make sure ben earns his
24:58
keep here all right all right
25:00
so next week folks just once again tips
25:02
for sourcing multi-family investors
25:04
you know so people that are looking to
25:06
put their own deals together maybe we’ll
25:07
look to syndicate
25:08
we’ll give some tips we’ve talked about
25:09
this in the past right we’re going to
25:11
dive a little bit deeper on this because
25:12
this was
25:12
it was actually a pretty popular topic
25:14
that we had right now we might do
25:15
another one about taxes in february or
25:17
maybe
25:18
it could probably be and then we’ll
25:19
probably do another one on underwriting
25:20
too right i think those are just
25:22
those those types of things you can just
25:23
kind of continue to you know
25:25
get better and and learn more um as you
25:28
kind of get more experience in the
25:29
market right
25:30
so cool all right let’s caught her up
25:32
then thank you all very much
25:34
going once amanda says great info
25:37
looking forward to infant man
25:38
looking forward to it as well hope to
25:39
see you soon maybe we’ll do something
25:41
sooner but anyways
25:42
yeah well she always stopped by yeah
25:44
seriously she come by amanda
25:46
but otherwise let’s call it a wrap going
25:48
once all right going twice
25:50
thank you all very much and we will see
25:51
you all next monday 3 30 central money
25:54
mondays on our facebook page
25:55
and our linkedin and everything else
25:57
youtube

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