In this video, we delve deep into the world of real estate, uncovering the incredible potential it holds for your financial future.
Whether you’re an experienced investor or just starting out, this video offers invaluable insights into how real estate can supercharge your portfolio.
Discover the tax advantages that come hand-in-hand with real estate ownership, and gain a comprehensive understanding of how you can legally optimize your tax situation while building your property empire.
If you’re ready to unlock the full potential of real estate from diversification strategies to tax-saving techniques and business growth opportunities then hit that play button now.
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Transcript:
Chris Bounds 00:00
your end goal was always to build something great. And so at that point, now you’re like, Hey, how can I build something great? Maybe it’s not what I’m getting. Maybe it’s not continuing what I’m going to what I’m doing now, maybe it’s something else or you’re looking at this investing. What was it immediately over into multifamily? Or did you be like, hey, I need to buy some single family properties or go wholesale some houses.
Chris Salerno 00:24
I had single family I had fix and flips. Me personally, yes, you can make money. My girlfriend flew Tomes. But I and I’ve opened her eyes to multifamily. I had the single family rentals, it doesn’t make sense. It does not make sense on single family rentals, you have one tenant, one person paying the rent, if something happens, you have to come out of your pocket. If anything happens, large H fac, roof, you name it, that right there can wipe out your whole profits. And so I let all my single family portfolio go I sold everything I had. And I’m a firm believer of the book, The One Thing wrote by Gary Keller, I believe he’s still the CEO of Keller Williams.
But the phenomenal book, it tells you to focus on your one thing. And now, some people may say, Well, Chris, sometimes you contradict yourself, because you say diversify. There’s two different things. In my opinion, you have to focus on that one thing, if you’re a business owner, which is your business, until you grow it to a certain level, and then you can seek diversification with other investments. I’ve grown, I’ve grown QC capital to a certain level. Well, now we’re now I have experts in the early stage startup companies where I can invest passively, and focus still on my one thing, but I can still diversify, which is super important. So I am a firm believer of diversification up until a certain point, but to get to that certain point, you need to focus on one thing.
Chris Bounds 01:50
Yeah, there’s this. There’s the phrase, I’m sure you’ve heard it many times, like most millionaires have, like seven sources of income. And, and the whole thought behind that is, or at least the message behind that is, is hey, you need to go out and get seven streams of income. And that’s not really how it is like those millionaires made their money on one or two streams. And then they went out and added others later on.
Chris Salerno 02:14
But I mean, look at Tony Robbins, you know, Tony Robbins, right. He has over 100 businesses 100. But I can ensure you to get to that level, he focused on one business. And then he started diversifying into resorts into multiple coaching programs, you name it.
Chris Bounds 02:34
So what do you think more real estate agents? Don’t do? Or I’ll say this, in talking with agents over the years, most say, hey, I want to invest in real estate.
Chris Salerno 02:47
But they don’t. Why do you think that is? They don’t have enough knowledge. Even though they are real estate agents, they outsiders, correctly help people during a transaction on buying and selling. They don’t have enough knowledge to buy apartment complex. And I say that very nicely. buy an apartment complex, analyze the t 12. A p&l, which is also the T 12. Some people don’t know what a t 12 is, or the rent roll and don’t understand, well, there’s a high loss to lease, you know, how can we clean up that loss to lease what’s going on with the vacancy here, you know, when you analyze a rent roll, whatever the efficient rents, what are the gross rents, all of that plays into a factor which they may not? They don’t know at the end of the day. And there they are.
They may be phenomenal sales agents, they may have a team which I’ve hung out with the top teams top 25 with Keller Williams, when we were when I was at Keller Williams, Gary Keller’s top 25 in the world, top individuals in there, and they are laser focused on growing their business that one thing, which is great, but diversifying, actually think of this as a real estate agent. If you diversify and invest, invest with credit, bulk Christmas, invest into real estate, and you utilize those tax benefits because you’re already a real estate professional, and so it wipes out your taxes. What can you do with that extra money to grow your business? Yeah.
Chris Bounds 04:19
Yeah, most Realtors don’t know that. They’re sitting on one of the greatest tax benefits that the IRS allows. And they’re they have no idea
Chris Salerno 04:26
what real estate professionals agreed and the IRS is not going to write you in an email or send you a letter with bold 50 font saying, hey, there is a tax exemption option for real estate professionals. If you buy real estate, do a call set depreciation on it. You can depreciate the asset and utilize that as a depreciation off your taxes.
You’re not going to put that it’s going to be in a little fine print, or we’re going to have to zoom in 250% so it’s it’s a advantageous to help you to grow your business by investing in real estate and then using that excess cash to grow your business. On top of that, you can also give a another type of service to your high net worth individuals who are buying expensive homes that they can also invest into real estate.
Chris Bounds 05:19
Yeah, it goes back to what you’re saying education 100%