Holly: Today we’re talking about real estate investing. Daniel, why are you so passionate about real estate investing?
Daniel: Everyone loves the DIY real estate shows, right, but real estate can also be a very lucrative piece of your finances.
Being a landlord and owning real estate allowed me the opportunity to quit my job and launch my own firm. It can really change your life.
I remember posting some stuff on my website about real estate investing techniques and the very next week I had two specialist doctors in my office wanting to learn about how they could grow their wealth and avoid taxes through real estate.
Nowhere else can you leverage someone else’s money for such a great return on your cash. You use the bank’s money to grow the equity in your properties and create rental income.
Holly: Wow, that’s amazing. So what are some more specific benefits to investing in real estate?
Daniel: Well, the great thing is that you can use tax methods called depreciation and cost segregation to significantly lower or effectively zero out your tax liability for your rental income. And the value of your properties are going up as well.
There are some more sophisticated strategies that we can employ as well such as a 1031 exchange, or a Delaware statutory trust to kick the taxes down the road after you sell a property.
Holly: Oh that’s very interesting. What would you tell someone just getting into real estate investing?
Daniel: I would say that the first thing everyone should do is buy a primary residence if you haven’t already. Buy something small that you can live in for a year and then turn into a rental property after you buy your next house. That can be a great way to start your real estate portfolio.
Holly: Fantastic. Well, if you have any questions about investing in real estate, feel free to contact Daniel at (540)580-2501 or online at www.upwardfp.com.
When Daniel is not giving financial advice or managing investments, he enjoys renovating properties, real estate investing, drinking coffee, hanging out with friends, spending weekend trips in his camper van, and exploring the outdoors on a hiking or biking trail in his hometown of Roanoke, VA and beyond.