E96: The Power of Depreciation

In this episode of the Lone Star Capital Podcast, Craig McGrouther and I dive into one of the most powerful tools in real estate investing: bonus depreciation.

With talk of 100% bonus depreciation returning in 2025, Rob breaks down what that could mean for investors — from maximizing early-year tax advantages to how it directly impacts capital raising, deal competitiveness, and after-tax returns. They explore the impact for both everyday passive investors and those electing real estate professional status, and how strategic use of depreciation and 1031 exchanges can dramatically shift a portfolio’s long-term outcome.

Plus, they compare debt fund structures vs. multifamily equity returns and explain why what looks good on the surface might not deliver when you factor in real after-tax results.

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