EP 145 - Tax Planning from the Perspective of a Fulltime Real Estate Investor w/ Richard Gamble

Paying almost nothing in taxes sounds like clickbait until you hear how full-time real estate investors actually operate. We sit down with Richard Gamble, a full-time investor with a wide portfolio across rentals, multifamily, and commercial assets, to talk about the real work behind “low tax” results and why the bigger win is building a repeatable system that scales.

We get into the difference between basic tax preparation and real estate tax strategy: year-round planning, constant deal-structure conversations, and the compliance grind that shows up when you have multiple entities, partnership returns, and hundreds of units worth of reporting. We also break down key real estate investing tax tools like Real Estate Professional Status, accelerated depreciation and cost segregation studies, and why you sometimes hold depreciation back so you can use it when it matters most.

Then we go deep on 1031 exchanges and the stress investors feel around hard deadlines, qualified intermediaries, and what can derail a great plan if you start too late. We also talk partnership realities: why you need everything in writing, how to choose partners you can actually work with, and how taxes and state policy can shape where you invest (including lessons from moving out of California and navigating Tennessee nuances). To wrap up, Richard shares what he’s most excited about next in development and how to connect with his My Tribe community.

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To learn more about how this topic or any tax reduction strategies may apply go to https://www.prosperlcpa.com/opportunityreport for a free consultation 

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Transcript

Welcome And Why Taxes Matter

SPEAKER_00 0:00

Hey guys, welcome to the show. I'm excited to have Richard Gamble here. He's a full-time real estate investor, and we talk so much about tax incentives and opportunities of real estate investing. And most of our clients are investing to some degree in real estate and seeing incredible tax savings. But it's about more than just offsetting your W-2 income of you and your spouse, your business income. When you get to a certain level, there are new challenges. And we were going to talk about what are those challenges and what are those opportunities? What is it like? How are you thinking about your taxes differently when you become a full-time real estate investor? Full-time, where the majority of your income, your cash flow is coming from your real estate rentals and is more than just a passive investment to build your wealth. It is more than just something that drives down your taxes, which is also incredibly awesome. But what does this look like for you? How does it look like for your finances? And what kind of conversations should you be having? What is the experience when you finally take that leap, if and when you are ready, and become a full-time real estate investor? So uh Richard here, why don't you tell us a little bit about yourself? What is it like being a full-time real estate investor? And tell us first, just introduce yourself, tell everybody about what you're doing.

SPEAKER_01 1:26

Okay.

The Roller Coaster Of Full-Time Investing

SPEAKER_01 1:27

Yeah, we uh so full-time real estate investor, like you said. Uh we do uh everything from uh fix and flips through um multifamily properties. We've got Swords properties, we have industrial properties, we've got event space, office space, uh a little bit is everything. So we dabble in most of the asset classes that are in uh in the real estate space. Um I would say what it what it's like being a real estate uh investor full-time is it's a it's a roller coaster. I mean, every uh you know, every every tax decision, every tax law, every tax rule, every tax loophole affects us, every economic swing affects us. Um I mean it's a little bit like a roller coaster, but it you become to to stay long term or to to to succeed long term, you have to become good at least at at guessing, predicting, whatever the right word is, at kind of understanding the ebb and blow of the economy so you can make those decisions ahead of time. And same thing with tax policy. I I think it uh it behooves us, even though we have great great representation, it behooves us to stay up on you know what laws are being voted on, what policies are changing, what you know, where where is tax policy going, both uh locally, uh you know, on a state level, federally, so that we can make some of those plans and adjust uh, you know, how did I so you know how do you remember how much taxes you paid on your 2024 tax?

SPEAKER_00 2:44

$53. $53. Okay. So obviously taxes is not an issue, right? So, you know, you may be thinking to yourself, okay, well, why don't we just go the HR block turbo tax route? But there's all these other things you have to think about. Even if you're not paying any taxes right now, where you're still gonna need the help and guidance of a relatively competent team

Strategy Beats Simple Tax Prep

SPEAKER_00 3:10

here, especially as you're building and growing your portfolio, because there's all these other conversations that you're having now, and just on the compliance side alone. So let's talk about like so some of the things we think about on a day-to-day basis and when we're having conversations and you're having conversations, where are there some of those conversations around?

SPEAKER_01 3:27

Yeah, I think, and this is not a sales pitch with you, I promise, and he didn't put me up to this, but the the the difference between tax strategy and HR block, as you mentioned there, um, it is the the uh the constant conversations that we have uh about how to maximize our profit while minimizing our tax. Right. I think that's where the that that's where the happy mix comes in because I could have bought HR block last year. I think my bill would have been higher than 53. Uh, but in years prior to that, we've had we've had many years in a row that we've paid very little or or no no taxes. And some of those years, I believe HR Block probably could have done that tax and gotten us to virtually zero. But the idea becomes we have those conversations throughout the year, whether it's quarterly or or an on-the-spot conversation, when something comes up where we have we have questions, right? How can I maximize the profitability while still maintaining a low, a low tax, a low or or or no tax bracket, which is our goal. And and I think the the the difference between the service that you offer, the difference between what we what we've experienced with you guys over the years and and HR Block or a normal tax preparer even, um, is tax preparation is one thing. Having somebody who can produce the documents is great. And having you know quality, clean, organized documents is fantastic. That's a a portion of what you do, but we but you're we we our relationship is about strategy. Our relationship is about the next step. Our relationship is about this deal is in front of us. How do we how do we structure it in such a way that it will help us maintain low tax bracket uh while also maximizing the deal that's that's there? Should we do the deal? Should we look for more deals? All those kinds of things are part of the conversation where I think strategy is the secret. Uh, whether you're any any type of entrepreneurial and venture, uh uh the the idea is how do you keep as much of the profit as you possibly can, right? If you're a 70, 30, 60, 40, 50, depending on the state you live in, partner with the government, government, that is, it makes it exponentially more difficult to grow and scale than if you're a 99.5 partner with the with the government governor.

SPEAKER_00 5:34

Yeah, now even if you don't pay taxes, if you want to be thrive as a real estate investor, you got to continually buy more real estate. So the tax reporting becomes continually more tough. And you know, you have a ton of partnership returns. I don't mean we saw a lot of returns coming your way. So now it comes, you need to have that communication. By the way, I'm not bashing HR block. We actually refer a lot of people to HR block when they're not ready for us and they need a simple return. But the coordination and the understanding of all these moving pieces and the sales and the capital gains, and this money going here and this partner having X dollars, and how do we actually report it and structure it? How should we take all this information and make the decisions on how we structure this partnership and who has X dollars going through each return can be even if there's no taxes, there's still a tremendous amount of collaboration. And one thing that what we've been doing differently this year compared to last year is we have a handful of clients where there is a certain level of complexity where we have many reporting obligations. You know, and then we got to deal with the Tennessee. Believe everybody thinks Tennessee is a tax savior, which it kind of is, and it kind of isn't. Because if you're a business owner, you gotta worry about this franchise and excise tax, which can be as high as 6.5% on your profits. Uh so we got to navigate that and get rid of those Tennessee taxes, believe it or not. Uh, but also there are all these nuances that we have to consider. So um to have compliant, reliable reporting, what we do now is we do touch points where with our less complex or l clients with fewer entities, we may be able to just be more back office and on the tax prep side. But what we've realized is it requires a collaborative conversation. So nothing gets missed. We stay compliant, we don't pay taxes, and also we're confident that we're we're working together as a as a in a partnership mentality, collaborating together, not only to achieve our goals and tax reduction, but also compliance, which may not sound fun and sexy, but if you can go to sleep at night knowing that you got your return taken care of, there's tremendous value and peace of mind associated with that. Yeah.

SPEAKER_01 7:46

Absolutely. I I think it it might not sound sexy, but I think that's because it's missing some, and not context. I'm not saying you're missing the context on it, but like it is, it is sexy if you think about reducing your taxable, uh, your your taxable income or your your your taxes from 30% of your income to zero. I mean, that's that's insanely sexy, especially if you're a you know an entrepreneur, you're just starting out, you're a blue-collar entrepreneur or you're a real estate investor where you know, where you're you're building something and you're and you're growing, having a an extra 15% or 20% if you can't get all the way to zero, but having an extra 15, 20, 30% uh profit at the end of the year is massive. There's not much that's sexier, and there's not much as an entrepreneur. I don't think there's much as an entrepreneur that you could do one single relationship, one single partnership, one single member of your team that would add 30% to your bottom line. I cannot think of another one. I mean, it would be a great marketing company, maybe, but I I mean the the the service you guys offer is insanely sexy for what it

Real Estate Professional Status Explained

SPEAKER_01 8:42

does.

SPEAKER_00 8:42

So let's talk about um, you know, you're a real estate professional. I mean, if you work full-time, 750 hours, and more than 50% of your total working hours is in your real estate trader business, which it absolutely is, definitely more than seven, maybe 750 hours in a month. I think I would probably more than that. But uh um you get to use losses from real estate to offset any source of income. And you can create a lot of losses by accelerating depreciation. So for someone like you, uh, you have all this opportunity. And for anyone listening, if they or their spouse can get real estate professional tax status, that means if you have a if you have a 401k and IRA, you could do a conversion. If you're old enough to take the money out with no penalties, you can use the real estate to offset those vehicles and move money into the the tax advantage bucket of real estate. And nothing's really more advantaged. There's no activity that's we while we we love riffing on oil and gas, we're very enthusiastic about it, we're very enthusiastic about our charitable strategies, but nothing is more tax advantaged than being a real estate investor. Uh and so for those of you thinking about this, if you have capital unrealized gains, you have a large amount of capital gains to be eventually be paid on your portfolio, or you have a 401k or a Roth IRA, or your spouse makes a lot of money, any of those conditions, real estate professional tax status is gonna create tremendous savings to offset the potential taxes on all of those potential income sources. So it's incredible what you can do for your taxes to move into that zero dollar tax bracket. So for the most part, as long as you strategize, you don't worry about paying taxes. You know, you gotta get your docs together, you gotta get all your partners' books in order and all that stuff, which is its own challenge. Yeah. And the challenge is also when you're a real estate investor, right? You gotta have an income statement for every set. Every single rental needs its own income statement. How many rentals do you got now? Uh we have 235 units that we wrap to. So how is it getting all your stuff together if you're tax bread?

SPEAKER_01 10:50

It's it's a chore. I think it it uh again, that I would say is not sexy. That that is one side of the business that is not uh is not sexy, it's not buying cool properties, it's not renovating things, it's not Instagrammable. Uh, but again, like they talked about with adding 20, 30, 15, 20, 30 percent to your bottom line, there's few things that you'll do, few, few activities that you'll do that are more beneficial. But it is, it is not an easy uh process. I would say we are late historically, uh and it uh but so it it's a challenge, but it's it's doable, and especially you've got good, uh good partnership, good teamwork, uh it can it can be better.

SPEAKER_00 11:23

Yeah, and that's one of the reasons why we just started saying, okay, we're gonna have touch points with people who have lots of set of books, whereas it is it takes some time to get all the 1098s and the income statements and the balance sheets in order. Uh and what we found is uh a improvement in our ability to have that symmetry, you know, that synergy with our with our clients and get everybody aligned so we can hit our deadlines and also make it a more enjoyable process. Now, another thing about tax prep that you might be surprised for some people, they think that once it's in the the hands of the preparer, there's there's there's no tax savings to be created. But with real estate, there's so much flexibility in how we report your return. For instance, you had properties on that 1040 where we never do the cost segregation study, right? Because we didn't need it, you paid no taxes. And that's important because you might need that cost segregation in a later year. And what we do a lot of times is we will draft a return, and only when we've seen how the dust sells for all those 235 units will we know that there is value in accelerating the depreciation on that tax return, and we'll make game time decisions. Yeah. So there is a decent amount of strategic thinking and planning, thinking it's the future. Do we need it on the current year or the prior year that is actually going on and taking place when we align our planning and our prep? Which you don't have to deal with. You don't see all you see is you pay three, you spend, you know, less than I spent on lunch on

Cost Seg Decisions And Clean Reporting

SPEAKER_00 12:55

taxes every year, and you're totally good. So some other things that we're gonna think about for you is you know, right now you're in the building phase. Taking on debt, doing you're doing renovations, and so you're very tax-advantaged. Even when the profits start coming in and you have tax-advantaged income, we do 1031s on the exits. We also have qualified business income where you offer you can get a 20% deduction on your profits that remain after that. But when you have debt and the cash flow comes in, there's a possibility that you might have taxable profit in the future. Come out. Yeah. So if your money is paying off debt, and let's say you're in a stabilization road mode, or you fully depreciate your older rentals and you're highly casual positive, we may find a positive income statement. So the challenge is with some of these folks is um you may find that we kind of whole call we call we have what we may call phantom profit, where you're bringing in a lot of cash, but it goes right off to paying off the debt, which is not a tax deduction. So the amount of profit we're showing on your tax return is greater than the amount of net cash you're pulling in. So those are some of the things we think about for the full-time real estate investors who are successful and who are building and cash flow. But luckily we're building and growing. So that's not an issue at the moment, but something to think about.

SPEAKER_01 14:19

Yeah, I think the the uh you know, usually our return is is uh $53 or or less, hopefully. And I I think the however we've had a number of conversations around cost segregations, like you mentioned, 1030, which we did a couple 1031s last year or 24. Um, so you know, that all all those strategies, knowing that they even exist, I think is a huge part of being a successful investor, right? Because a lot of people who don't even know that those things are are out there. Uh, and if you don't have uh a quality team member to share that with you, or if you've not read it in the book or something like that, where you you know that it even exists, there's a lot of profitability that can be lost and a lot of years of building that can be lost when, again, you're sharing it, you know, with the with the government at that point, you know, long-term capital gains most likely, but still a 15 to 22 percent tax hit when you don't. It doesn't have to be that, but you know it doesn't exist.

SPEAKER_00 15:07

Yeah, and depending on what state you're in, you know, it could get 23.8% on the federal on top of state tax in depreciation recapture on top of that. So it could, it can be rough if you don't plan. Tell us, tell us about how you so you've done some 1031s. Now I can talk about it as an advisor, yeah, but I haven't done it as an investor. So tell me about your experience of doing a 1031.

SPEAKER_01 15:27

It's uh fantastic process. I think you if you speak to people, um, I have some some some friends and partners that are uh Canadian, and speaking to them about it, if it's funny because they don't have the option of that, right? So when they have then profitability five years, 10 years into owning a proper uh into owning a property and they they decide to sell it or transfer into something bigger, they just have to take the tax it. Uh so I think it's a tremendous opportunity that's available to us under under uh you know US tax code. Um so I think the fantastic uh opportunity for us, it is a stressful event uh as an investor because you've got a number of deadlines that you have to hit. And I think this is where, again, uh not to harp on having team members and and and building a team around the business that you're that you're building, but having a qualified intermediary that knows what they're doing, understands the deadline, and is aggressive in following up with you on those deadlines. And that's not us.

SPEAKER_00 16:16

That's a separate party that runs those 103.

SPEAKER_01 16:18

Right. Yeah. And it and but having someone that you know that you know, like, and trust, and somebody that works well with your accounting team, somebody that works well with your lawyer, somebody who works well, you know, with the other members of your team is critical because you've got uh free deadlines that are two, I guess, two main deadlines that can really make uh or break the uh the deal so you have a 45-day deadline and a 180-day deadline. And if either of them is missed by a day, the whole thing is shot. So it's a very, very stressful, um, uh very, very stressful process. But trusting those members and having those members in place and making sure you get them in place before you actually have the property closed is critical if you don't put the money in their hands before closing, you're you're done or at closing it done. So very stressful.

SPEAKER_00 16:56

Yeah. So uh, and to add a little more um just technical information there on what that's like for him, you know, when you're from the time you close, you have 45 days to identify the replacement property or properties. And then you and you have a total of 180 days to close on the property. Clock starts ticking. And just like Richard said, you have to put the money from the transaction into an intermediary's hand. So that decision has to be made before the property closes. Don't call us and say I want to do a 1031 on the property I sold yesterday. We can't do anything. There's other things we can do, but not a 1031. Right. And then the clock is ticking, and you know that if you don't meet your deadline for that 1031, you could be out of luck.

SPEAKER_01 17:43

And I'll go sugar.

SPEAKER_00 17:44

Yeah. Now, sometimes a 1031 may even straddle two years where you sell it in December and you're in January trying to find the replacement property, which is really interesting, which also means we may have to extend everybody's return until we know the the gain is not to be reported. So a lot of interesting scenarios have played out there. Oh, yeah.

SPEAKER_01 18:04

So if you are an investor, you or anybody who's ever bought a piece of real estate. Yeah. Even for your own personal home, you know, things happen. So it not only is the stress of identifying it 45 days and then closing on it at 180, but if something happens in there, even something beyond your control, something with the title work, something with the seller, something with financing, all these different options that come up, it can be it can be trusted. So make sure you find a a good a good team to work with.

SPEAKER_00 18:26

So you've you have a lot of partnership returns that we do. I do. And we're not gonna put you guys to sleep telling about 1065 reporting, but I want to hear from you what is your process like and what can you, what what can someone learn the good and what to do and what not to do when forming these partnerships and getting the right parties aligned to have the right entity structure and set up for those partnerships. Yeah.

SPEAKER_01 18:51

I think, I mean, from from our end or from my end, in almost every one of those partnerships, we are the managing partner. So we have a little bit easier time in the fact that I'm no, I say easier time, because I'm the one collecting the documents, I'm the one uh collecting the paperwork. So I'm

Phantom Profit And Future Tax Traps

SPEAKER_01 19:05

never waiting for somebody else to complete that return for somebody else to do uh, you know, to put the books together and do all those kinds of things. Those fall on me in every partnership that we're in. So that makes it a little bit easier. So I would say if you're somebody who has the organization, if you have the skill set or an integrator on your team that can handle the paperwork for that, make sure you're the one who's managing that process. Uh, because that way you have control for the most part over how that goes, right? There are still uh situations and circumstances where you need something from a partner, uh, and it can be difficult uh to get that from them. But for the most part, in in our our case anyway, we're the managing partner, we handle the books, we handle the tax reporting in almost all in every uh uh partnership that we're part of, which makes it a little bit easier, harder on us from the actual work, easier on us because we're the ones who are managing it. So I'm never getting a call from my CDA, hey, where's this return? And I oh, I don't know, let me call my partner and find out. So that that helps a little bit. So I'd say if you're setting it up and you have that skill set, I would make sure you argue that would be a tip I'd give you. And then the second thing would be just quite simply this is for anything, not just for the tax side of partnerships, but a partnership for all intents and purposes is a marriage, right? So you're marrying that person for however long that project is going to be going on. Your financial futures are locked together, the the success of that project, the decision making, all of those things are intertwined for the duration of that partnership. So make sure it's somebody who you do work well with, make sure it's somebody that you want to work well with, make sure it's somebody who, you know, that you you, if you have to have two weeks locked in the office to get the books together, it's not going to drive you crazy being with that person. I think that's the the other thing is make sure you pick your partners based on their skill set, but also make sure that there's synergy there to where it's somebody you genuinely want to work with. Yeah. Not just some aspect they have that would be helpful.

SPEAKER_00 20:49

We've seen a lot of partnerships go wrong or where um clients have regretted who they've teamed up with on certain projects. See that a lot, and there's a lot of creative ways we can structure. One of the things I would advise folks on, especially full-time entrepreneurs and real estate investors, is get things in writing. We see a lot of people doing handshake deals, which it can work. We can talk to them and put a narrative together and put a return based on what has been agreed upon. But you just never know what's going to happen down the road. So it's ideal that something's in writing. There's been some formal attorney that is structured or written in articles or organizations. So there's a clear understanding of who gets what, especially now, if you're spending things 50-50 down the road, you might be able to get away with it. But if you're going to do anything creative, please, please, please. You know,

1031 Exchanges Without Missing Deadlines

SPEAKER_00 21:40

we have people trying to do all sorts of funky allocations and stuff. And it's just it's been very challenging for us to really do what we want to do it under best practice. You know, hopefully everything goes well and we'll be all right.

SPEAKER_01 21:54

Yeah, I think that uh one of the things we've always taken very seriously on any partnership is that again, there Relationship, the the partnership with a lawyer, that everything I've got some good friends and I'm partners with people that I I know, like, and trust a great deal. Everything is in writing. And I don't remember where I heard it, but somebody said the plan for the divorce up front. Right. So it's easy. You and I are talking right now, everything's kumbaya. We're planning on this business. We're planning to build this thing. We're going to go to the moon. Everything's great today. Let's talk about all of the let's talk about the divorce today, just in case we're never going to get there because everything is fantastic. But if we ever did, what does the breakup look like? How do we split things? How does the how does all of the breakup work? Let's do that now while we can talk. Because when the actual breakup happens, again, much like in a in a marriage, when the actual breakup happens, our ability to discuss and be rational and and work together as you know for the the betterment of myself, yourself, and the business, the the the likelihood of that still being intact is slim. So the the best advice I ever heard from partnerships was planning to divorce up that yeah.

SPEAKER_00 22:55

So you know, you are in the best possible place you could be in the US for tax reduction or tax advantages. Tell tell me what it was like when you made that switch. So we we uh we moved here from California.

SPEAKER_01 23:08

Um worst possible scenario for Texas. But the worst store space. Um and and uh luckily I had lived here as a kid and and my parents lived here still. So when we were looking at areas, uh we really went through and we did a deep dive of all the different areas where investing could work, and we were looking for uh and tasks were actually a huge part of what we looked for, what was the most tax advantageous place to be? And I don't know if we knew Tennessee was as good as as it is, uh, but we knew that it was definitely had advantages over California. So uh that was part of it, affordability was part of it, uh, you know, future growth of the of the state and the city were part of it. So there's a lot of aspects that went into picking this market. Uh, and I would tell you it it again, I think it really there's markets that are bigger, there's markets that are sexier. We could be in Miami, we could be in LA, we could be in San Diego, we could be in these other other markets that are you know more scramble. Uh, but I I I think again, if you're if you're we're using California as the example, if we were there, my tax bracket on most things on short-term gains, especially, would be in the 50% ballpark.

SPEAKER_00 24:08

By the way, California does not conform to real estate professional tax status. You can't use your rentals to offset your California income. They just make everything hard either. Of course.

SPEAKER_01 24:17

We know there. So if I think back, you know, I I don't know if our our if our trajectory, I don't know if our scaling would have been half, because we'd be sharing half of our poppins with the government. I don't know if we would be half, but we would certainly be slower than we have been. So being in a in a market where we researched taxes and that we knew that it was tax favorable has certainly made scaling easier. Uh, I think there's a lot of other other aspects of being here that have made it easier. It's desirability, it's growth. All those papers are certainly part of it. Uh, but not having to share, I think the state gets other than franchise excises, which we're usually exempt from that as well uh through some creative planning. But other than other than that, and then the state gets no share in it. Like so everything, you know, automatically we're cutting 15% off of our California tax bill just by being here. So it's uh a huge, huge win. And I think uh if you're looking for a market to go to to start investing, what to start your investing journey, definitely partner with uh somebody who's in knowledgeable in the tax space so that they can help you plan and pick where that is. It's huge things.

SPEAKER_00 25:14

Yeah, we talk so much about California. We I think we have more clients now in California than anywhere else because the tax bill is just brutal there. Um and so you know, for those of you guys listening, you may not be ready to hit real estate professional tax status yet. Your lifestyles may not allow for it, but this is really where you want to be from a tax perspective. And you know, if you got those unrealized gains again, if you have money in your retirement accounts, we can strategically plan in time when we move that over into the tax-free bucket with real estate while growing your wealth, building cash flow, passive income, and building equity and creating a legacy for your family all at the same time. Uh so, Richard, before we close up, um, you know, you you know some really we got a wonderful lunch, you know, some fantastic people. You're you organize my tribe mastermind, where you gather some really thoughtful and bright people, uh, mostly in the in the Knoxville, but throughout the country as well. If someone wants to see more about tell everybody two things. One, where are you most excited about that you're working on? And if someone wants to learn more about you, connect with you, or be part of my tribe, or any Knoxville real estate investors who wants to join this community, which is a wonderful community, tell them where they can connect with you.

SPEAKER_01 26:23

Perfect. So what I'm I'm most in all most developers, most excited about is development uh going forward. I think the the the last 10 years we've done a lot of uh let's say redevelopment. We've done a lot of remodeling, we've done a lot of fix and flips, we've done a lot of um uh apartment and uh commercial space transitions, right, where we renovate something that's existing and kind of bring it back to life, revitalize the the community that that that property is in. Um I think to some extent uh the ability to do that, the market to do that is has slowed down. I I think the next three to five years will be very development heavy, especially if you can develop in the affordable space, right? And I don't when I say affordable space, I don't necessarily mean the um the the government assistance type tax bracket space. But in the in the affordable, you know, if you're if you're developing homes, I think if you're in that starter house price point, uh, usually most of the large developers and the R Horse kind of dabbles in a space and into different communities, but for the most part, developers don't build uh starter houses, right? So they did if you're a developer building and you're developing, yeah, build to sell products, I think you could do very well in that be in that uh entry-level space. And then the same thing with apartment communities multifamily, whether it's uh duplex, triplex, quadplex, or figure properties, uh, I think you can do very well in that um, you know, let's say middle to to to uh uh higher middle income bracket where you're not to class A, you don't have to pool in the gym and all the super fancy things that the the best properties in your neighborhood have. Those are they're built by REITs, they're built by large uh companies, and and for the most part, they have to build in that space to be successful. I think as a smaller investor, you can develop uh again

Partnerships Location Moves And Next Plays

SPEAKER_01 28:05

in that, let's call it a B class property, right? Where you've got still a beautiful place to live, it's new build, it's brand new, it's nice uh and it you know, comfortable for some of you to live in, it just lacks some of those amenities, which means you can build it far less expensive, means you can offer a better, a better rental rate. So I think development for the next couple of years, let's say three to five, uh, is definitely the the road that we want to be on. And I think it's a it's a road that most people should look into. So that's what I'm most excited about. Uh if people want to find out more, uh, follow me, look at me, that kind of thing. Um, we're on every social platform, the Richard Gamble. Um, if you want to find out more about my tribe specifically or the Knoxville community that you had here, uh myTribemastermind.com. Uh all the information is on there. We we do a monthly meetup. Uh the My Tribe Nastermind has calls. We do a couple, a couple trips a year where we get together for uh a couple days in a in a much cooler location than where we're sitting right now. But um yeah, my tried mastermind.com. In the Knoxville's what's the uh Noxo's best real estate investor meetup is the name of the meetup where Mark can be speaking this evening. Um is on Facebook only, but uh I think we have an Instagram page how to think about it so Facebook on the meta the meta meta platforms, uh Knoxville's best real estate investor meetup.

SPEAKER_00 29:15

Fantastic. And if you want to see how any of these or any other tax reduction strategy concept may apply, you can go to Prospero, Prosperwithanlcka.com slash apply, and I will personally send you a video based on your information, sharing you what may be possible. Or if you don't want to hear from me or anyone on my team at all, and you just want to learn, go to taxplanningchecklist.com for a free mini course. Rich, it's you so much over time. Thank you. Appreciate it.