Joe Rare: Hidden tax benefits boost 9% real estate returns to 25%
Joe Rare · 4,000 Mistakes in Weeks Made It Look Like an Overnight Success · Feb 27, 2024 · at 44:06
Joe Rare explains the compounding financial upside of real estate syndications beyond base cash-on-cash yields.
“If you're making nine or 10% on a piece of real estate, that's cashflow, by the way, that, that isn't depreciation tax, you know you know, the benefits that you get for your taxes, you can end up taking a nine percent return on cash, cash on cash return. And you can say, okay, well, I'm getting a nine percent return on my money for the money I put in, but I'm also getting depreciation. I'm getting you know, all these tax tax benefits that we can get out of this. I've got all of these expenses that I can now expense and I reduce my tax liability again. I've got a capital appreciation, right? I've got, you know the appreciation from somebody paying down my debt, right? So you get those, you can end up with a 20, 25% return on that same piece of real estate, super easy, passive, and that's very easy to do.”
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