The Multifamily Real Estate Experiment Podcast
“Multifamily Real Estate Investing for the Career Professional.” Join Shelon "Hutch The Marine Investor" Hutchinson who talks to military veterans and real estate professionals about the results of their journey and multifamily real estate experiments. Each week, Hutch discusses Multifamily Real Estate Investing for Career Professionals and military veterans to help you build wealth and financial independence. Questions about Multifamily real estate investing are systematically dissected as your host works through observations and data to answer the week's question.
The Multifamily Real Estate Experiment Podcast
MFREE 096 Trailer # 4 with Eric Oliver: Why Do the Wealthy Pay Fewer Taxes?
Most real estate investors know about depreciation, but cost segregation? That’s next-level wealth building. 🚀 If you’re buying properties and not using accelerated depreciation, you’re leaving serious tax savings on the table. 💸
In this episode, we break down:
✅ What cost segregation really is (in plain English!)
✅ How it helps investors lower taxes and increase cash flow
✅ Why big investors use it—and why you should too
✅ What kind of properties benefit the most
Think of it this way: You wouldn’t wait 39 years to get paid for a deal, so why wait to claim your deductions? 🤷🏾♂️ Time to play smarter, not harder.
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Thank you to all of our listeners!!! We would love to hear from you!!!
Email me at:
hutch@hsquaredcapital.com
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www.hsquaredcapital.com
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The Multifamily Real Estate Experiment
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When we start thinking a little bit bigger and start acquiring bigger properties, we get exposed to different words and different vocabulary. So this one known as cost segregation, can you break it down for our listeners and help us to understand cost segregation at its foundation level?
Speaker 2:Sure. That's a great question, Hutch. So cost segregation really is just accelerated depreciation on your real estate assets. So one of the great benefits of owning real estate Is the ability to take what they call a depreciation expense each year against your income So think of it when you buy a building each year that building the the structure itself deteriorates over time And the IRS knows that and so they allow you to take an expense over time now for commercial properties that time period is 39 years for residential properties. That time period is 27 and a half years. So just to make the math easy hutch, let's say you buy a$390,000 office condo, you would take$390,000 divide it by 39 years and you're going to have essentially a$10,000 write off every year for the next 39 years, which is great. Everyone was looking for write off that means that if I may have a hundred and ten thousand of income that year instead of paying tax on hundred and ten I get to use this 10, 000 write off and now I'm only paying tax on 100, 000 of income, right? That's called straight line depreciation. That's what a lot of us investors do.