Don't buy just for the Cost Segregation

Aug 22, 2023

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This episode is Sponsored by MarketMySTR.com the STR Industries #1 marketing platform.

In the most recent episode of STRUnfiltered, Bill opens up by discussing Mike Michalowicz's impactful book, "The Pumpkin Plan," which has significantly influenced his approach to property investment. He vividly illustrates the concept of cultivating success by trimming the smaller pumpkins, allowing the larger ones to flourish.

Bill delves into his perspective on the pivotal role of time and money in driving individuals toward real estate ventures. His ultimate objective revolves around achieving his financial milestones with a minimal number of properties. Rather than fixating on amassing an extensive portfolio with countless units, he emphasizes the wisdom of focusing on a select few exceptionally prosperous properties. These properties, characterized by strong cash-on-cash returns, appreciation potential, and advantageous tax benefits, form the cornerstone of his strategy.

Expanding on this viewpoint, Bill advocates against the shortsighted approach of investing solely for the sake of cost segregation or 1031 exchanges. Instead, he highlights the long-term advantages of incorporating a holistic perspective into investment decisions. By aligning investments with future financial security and retirement plans, one can channel more energy into cultivating a thriving enterprise centered around a handful of properties that yield substantial revenue.

In the latter part of the episode, Bill shares insights from his recent condo deal, underscoring how cost segregation has emerged as a favorable factor in this endeavor. His decision-making process is driven by a comprehensive evaluation of multiple elements, prominently including the property's proximity to a flourishing national park—a key factor contributing to sustained cash flow. Bill's approach underscores the importance of considering these multifaceted aspects before committing to a new investment.

[00:00] Intro

[01:10] The Pumpkin Plan

[01:40] My Portfolio

[02:00] Rank Breeze

[04:10] Future Planning

[05:20] Cash on Cash

[05:45] Appreciation

[06:00] Tax Benefits

[08:58] Condo

[10:00] National Park

[10:55] Closing

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