Financial Freedom with Real Estate Investing

February 2022
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Mon, 28 February 2022

MB307: Save Tens of Thousands on Your Taxes – With Heidi Henderson

Real estate has always had tax advantages, but in recent years, the deal got even sweeter for multifamily investors.

So, how do we write off depreciation? What is a cost segregation study and how can it save us even more?

Heidi Henderson serves as Executive Vice President at Engineered Tax Services, the nation’s leading tax credit and incentives firm. As an experienced tax consultant and real estate investor herself, Heidi specializes in the application of tax efficiencies to multifamily investments.

On this episode of the podcast, Heidi joins cohost Garrett Lynch and me to share the unique tax advantages of real estate and explain why the US government incentivizes multifamily investors.

Heidi describes how to take advantage of BONUS depreciation (provided for by the 2017 Tax Cuts and Jobs Act) by conducting a detailed cost segregation analysis.

Listen in for Heidi’s insight on determining the ROI of a cost seg study and find out how YOU can save tens of thousands of dollars with the magic of accelerated depreciation!

Key Takeaways

The unique tax advantages of real estate

Depreciate value of real estate over 27½ years
Bonus depreciation through ‘cost seg’ analysis

Why the government incentivizes real estate investors

Consumerism drives economy
Encourages improvements to infrastructure

What depreciation is and how it works

Deducting cost of asset over its ‘useful life’
Reduces taxable income for investor

Why you should claim bonus depreciation right away

Must be done year property is purchased
Inventory breakdown helps plan renovations

How to take advantage of accelerated depreciation

Conduct cost segregation study
Itemize deductions (e.g.: carpet, windows, etc.)

What to look for in a company that does cost seg

Can vary from 2 to 150 pages
Ask for copy of redacted study to compare

How to determine your ROI on a cost seg analysis

Based on taxable income, percentage of tax paid
Subtract cost of analysis

The limitations on taxable income for passive investors

Depreciation offsets real estate income only
Does not offset income from W-2 job

Why we should cash in on bonus depreciation now

TCJA passed 100% bonus depreciation
Drops to 80% in 2023, 60% in 2024

Connect with Heidi Henderson

Engineered Tax Services

Heidi on LinkedIn

Email hhenderson@engineeredtaxservices.com

Call (801) 564-4464

Resources

Get Tickets for Deal Maker Live

Learn More About Michael’s Mentoring Program

Download Michael’s Free Report—What's the Best Investment: The Stock Market or Real Estate?

Join the Nighthawk Equity Investor Club

Access Michael’s Free Resources in the Freedom Vault

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank

The Tax Cuts and Jobs Act

Heidi Henderson on Financial Freedom with Real Estate Investing EP022

Apartment Investor Network Facebook Group

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP307.mp3
Category:Commercial Real Estate -- posted at: 1:00am EST

Mon, 21 February 2022

MB306: To Scale Your Business, Put Investors First – With Veena Jetti

When you’re doing your first multifamily deal, scaling the business is the last thing on your mind. But if you don’t think about scale early on and come up with a plan, you’ll be fighting fires as you grow.

So, how do you create a vision for what your syndication business will look like in the future and then proactively put systems in place that allow you to scale up with ease?

Veena Jetti is the Founding Partner of Vive Funds, a unique multifamily firm that specializes in curating conservative opportunities for real estate investors. Veena has built a portfolio of 3,000-plus units worth $600M, and she shares her expertise as a frequent speaker, panelist and guest on various media outlets.

On this episode of Financial Freedom with Real Estate Investing, Veena joins cohost Garrett Lynch and me to explain how raising capital at a high level allows her to scale and describe how every decision is made with the investor in mind.

Veena shares her success with investor retention and referrals, discussing why she offers investors the option to put their money in a fund or invest in direct offerings.

Listen in for insight on how Veena uses her time as partner at a big-time investment firm and get her advice on creating workflows that make it easy to scale your multifamily syndication business!

Key Takeaways

What inspired Veena’s interest in scaling a real estate business

Mom was successful investor, taught solid work ethic
Enjoys bigger safety net than immigrant parents

How Veena and her sister/business partner use their time

Strategy re: acquisitions, capital and legal structure
Continue to take investor-facing calls

Why Veena’s had success raising capital at a high level

All decisions made with investor in mind
High investor retention rate and referrals

Why Veena offers investors a fund OR direct offering option

Fund satisfies demand for diversification, set + forget
Surprised to find that some investors want to do both

How Veena raises $30M in 42 days

Raise money when don’t have deal on table
$100K minimum for individual deals

Veena’s experience with institutional investors

Build relationships with family funds
Have Plan B in case drop out last minute

What Veena is doing to enhance the way she raises capital

Rebrand with investor in mind
Add technology to make process smoother

Veena’s biggest challenges right now

Letting go of taking investor calls
Implementing new tech at pace she wants

Veena’s advice to her younger self

Invest in systems and processes out of gate
Consider scale from first deal

How Veena thinks about deal flow

Wants to do more but very competitive right now
Prefers 1 or 2 great deals over 6 okay deals

How Veena’s definition of success has changed over time

Used to be based on net worth and income
Now focused on setting example for kids

Connect with Veena Jetti

Vive Funds

Vive Funds on Facebook

Vive Funds on Instagram

Veena on Twitter

Veena on TikTok

Resources

Get Tickets for Deal Maker Live

Learn More About Michael’s Mentoring Program

Access Michael’s Free Resources in the Freedom Vault

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank

The Art of the Deal by Donald J. Trump

Apartment Investor Network Facebook Group

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP306.mp3
Category:Commercial Real Estate -- posted at: 1:00am EST

Mon, 14 February 2022

MB305: The Life and Times of an 18-Year-Old Syndicator – With Alex Mandaro

At the age of 18, Alex Mandaro is the youngest mentoring student we’ve ever had at the Michael Blank organization. So, we’re doing a grand experiment and asking Alex to document his journey!

In a reality-style series broadcast through our social media channels, Alex will share a behind-the-scenes look at the life and times of a new syndicator.

On this episode of Financial Freedom with Real Estate Investing, Alex joins me to explain what inspired his interest in multifamily and why he believes he’ll be successful.

He discusses why he used his college money to invest in mentoring, describing how he is getting the most out of our program and learning from the mistakes of others.

Listen in for insight on following Alex’s journey with us to find out if you really can be a successful syndicator without experience or cash of your own!

Key Takeaways

What inspired Alex’s interest in real estate

Always wanted to have business, likes people
Read Financial Freedom with Real Estate Investing

What makes Alex believe he can be successful

Less baggage at age 18
Raised to believe he can do anything he wants

Why Alex chose real estate over college

Not sure what major he wanted to pursue
Can still meet new people and live on his own

How Alex’s friends and family reacted to his decision

Other friends not going to college
Parents very supportive

The first steps Alex is taking to pursue multifamily

Devote time to learning and networking
Look for partner to ‘get bigger deal done faster’

Why Alex invested in our mentoring program

Wants someone to push him
Make fewer mistakes

Alex’s personal WHY statement

Lead others to freedom
Positively impact others

How Alex is getting the most out of mentorship

Plan next steps each week
Go into conversations with investors prepared

How Alex thinks about getting through bad days

Purpose keeps pushing forward
Consistency is what matters

Why Alex agreed to document his journey with us

Help teach and inspire others
Holds him accountable

Alex’s concerns with sharing his journey on social

Pressure to do deal in certain time frame
Doesn’t want to let people down

Connect with Alex Mandaro

Follow Alex’s Journey on Instagram

Follow Alex’s Journey on TikTok

Follow Alex’s Journey on YouTube

Resources

Access Michael’s Free Resources in the Freedom Vault

Learn More About Michael’s Mentoring Program

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank

Rich Dad Poor Dad by Robert T. Kiyosaki

Grant Cardone on Financial Freedom with Real Estate Investing EP188

The Miracle Equation by Hal Elrod

Apartment Investor Network Facebook Group

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP305.mp3
Category:Commercial Real Estate -- posted at: 1:00am EST

Mon, 7 February 2022

MB304: Install Renewable Energy, Increase Your Profits – With John Matheson

Using renewable energy to power a multifamily property is not just for environmentalists anymore.

As the political environment shifts, going green doesn’t just make the world a better place. It’s also highly profitable.

John Matheson is Managing Member and Sustainable Building Consultant at J. Healy Development, where he has developed an expertise in helping multifamily operators increase profits through renewable energy and ecofriendly building methods.

He also serves as Cofounder and CEO of Leverage Finance Software, a platform that supports property investors in making smarter and more informed lender financing decisions.

On this episode of Financial Freedom with Real Estate Investing, John joins cohost Garrett Lynch and me to explain how he adds value to a property with rooftop or on-the-ground solar power.

He describes the benefits of partnering with a solar developer and discusses the financial incentives associated with installing renewable energy across a multifamily portfolio.

Listen in for insight on planning for panel maintenance and learn how to add a revenue stream to your multifamily business in 6 to 18 months with solar energy!