Financial Freedom with Real Estate Investing

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

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

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 EDT

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

Grant Cardone 

Brian Burke 

PowerForms

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

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 EDT

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

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Michael on TikTok

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 EDT

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!

Key Takeaways 

How John creates inventory as a permitting specialist

  • Build relationships in individual municipalities
  • Build to rent or flip permits to big developers

How John adds value to a property with solar power

  • Lease rooftop or land to solar developer
  • Supply power to building, sell residual to grid

How renewable energy credits or RECs work

  • Tenants pay less per kilowatt hour for energy
  • State pays multifamily operator as incentive 

The benefits of partnering with a solar developer

  • Federal tax credit of 26% to 30% for installation
  • Take advantage of renewable energy lenders

What factors to consider as you plan to install solar

  • Build in cost of panel maintenance
  • Must remove panels to renovate roof

The timeline for installing rooftop or ground solar

  • Smaller system, faster it goes
  • 6 to 18 months to cashflow

How renewable energy attracts tenants

  • Mention sustainability in marketing
  • Certain kind of tenant will pay more

Connect with John Matheson

Healy Development

Leverage Finance Software

Resources

Access Michael’s Free Resources in the Freedom Vault 

Be a Part of Michael’s Deal Maker’s Mastermind

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

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

Review the Podcast on iTunes

Financial Freedom with Real Estate Investing by Michael Blank 

Federal Solar Tax Credit

Build Back Better 

eConserve Multifamily Water Conservation Solutions

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Podcast Show Notes

Direct download: Financial_Freedom_with_Real_Estate_Investing_EP304.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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