The Simple "Borrow til you Die' Tax Strategy
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- Опубліковано 6 вер 2024
- Get Your Cost Segregation Report: RentalCostSeg.com Code: KAI100
The quickest and easiest way to avoid payroll taxes is through buying investment properties. We call it the "borrow until you die" tax strategy. Virtually anyone with a W2, or steady taxable income, can take advantage of it and it allows you to avoid paying the IRS and build out your real estate portfolio. It personally has saved me millions and allowed me to acquire more properties. Real estate pros use this on EVERY deal, but novices are missing out simply because they don't know about it.
In today's video I take you through the 'borrow until you die' tax strategy and give you an example of how I'm doing it with my most recent project.
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Ayush Rai
I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
My advisor helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Q2 taxable divs this year was $17,388 thanks to her guidance. I maintained my desired asset allocation while minimising taxes.
@@PauleAraiza My advisor helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Q2 taxable divs this year was $17,388 thanks to her guidance. I maintained my desired asset allocation while minimizing taxes.
@SlowrideHome91 Real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed !! who is the advisor guiding you please? I could really use some help right now
@@Dollrnri I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with *Jennifer Leigh Hickman* for years and highly recommend her. Look her up to see if she meets your criteria
just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.
How can I participate in this? I sincerely aspire to establish a secure financial future and I am eager to participate. Who is the driving force behind your success?
Her name is "Dianne Sarah Olson" just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
she appears to be well-educated and well-read. I ran an online search on her name and came across her website ; thank you for sharing.
For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2023 with $10k and I'm up with $132k in a short period of time
I'm new to cryptocurrency and i don't understand how it really works. How can someone know the right approach to investing and making good profit from cryptocurrency investments?
As a beginner what do i need to do? How can i invest, on which platform? If you know any please share.🙏
As a beginner investor, it's essential for you to have a mentor to keep you accountable. Myself I'm guided by Annabelle Hartfield. A widely known crypto consultant
it's great to see others who also benefits from the service of Annabelle Hartfield.
I'm surprised that this name is being mentioned here, i stumbled upon one of her clients testimonies on CNBC news last week...
Don't forget the attorneys, property managers, creating & maintaining corporate entities, diligence to make sure all yearly sales tax and meeting notes are filed, banking, accounting, taking tenant phone calls, fixing problems, carrying insurance, ... Not for the lazy.
.sure let your family pay for your disaster nightmare fools acting rich is over
All that and also what do you do if it's a down market? Borrow till you die doesn't always work. There is significant risk. Also if you live in a tenant friendly state like CA or NY, you are really screwed if the tenants decide to just live there for free for a couple of years. Then you loose rent for a 1-2 years, destroyed property, legal fees. Make sure if you get into real estate renting you don't get stressed lol.
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, our country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Annette Marie Holt is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Jessica Lee Horst for the last five years or so, and her returns have been pretty much amazing.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
What caught my eye was the video title ""Borrow til you Die". For some reason, I thought about what's happening with America and our national debt.
Obviously not what you had in mind
You are over thinking it.
Problem is that the US government is borrowing not so much to invest but instead to spend beyond its means. Recipe for disaster.
Hey man i thought the same thing. Screw those other guys. Lol
Debt is LEVERAGE, and getting caught on the wrong side of a market downturn can easily wipe you out. The quirk of leveraged traditional home mortgages is that borrowers don't get wiped out by 'margin calls' the moment they're under water.
I've been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
I will advice you should stop trading on your own if you keep losing.
If you can, then get a professional to trade for you I think that way your assets are more secure.
I'd recommend Bethany Jennings, her profit is great even when there's a dip
Wow. I'm a bit perplexed seeing her being mentioned here also. I didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been amazing.
You don't need to be shocked haha because I'm also a huge beneficiary of her
FYI as a Financial Planner I thought I would correct this - Capital Gains are not capped at 15-10%. There is the Net Investment Tax. The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
This guy makes used car salesmen look respectable.
Bingo!
In what way? Sharing a legit tax strategy used by millions or was it me plugging a legit accounting service on my channel...😘
@@KaiAndrew This strategy is new to people. The majority only get tax money from the government by overpaying their estimated tax on their paycheck.
😆
I agree. Trouble is my brother in law has lots in saving but can't see to invest.
This is exactly what "experts" were saying just before the GFC.
The problem is when the asset goes down and the so-called "return" disappears and the call comes from the bank.
The properties are sold and you still owe the difference and you end up on the street, literally. I watched this happen to multiple people.
Go for it. Pay this guy a fee!!!
We pay 20% interest on debt. Then you pay it off with income that's taxed at up to 45%.
Great video, but who really wants to pour so much time and effort into something as two-dimensional as money? There are easier and more effective ways to earn without the headaches and endless commitment. Many people suffer from greed, always chasing more when, in reality, you don’t need much to live comfortably. The world is what you make of it-everyone lives in their own reality and creates their own suffering. That’s why greed is one of the seven deadly sins. Warren Buffett one of the most successful investors does not mind paying taxes because making money is so easy for him. Good for thought. Give to Cesar what is Caesar’s.
Nobody seems to mention that they need to pay interest on the loan which effectively negates all Tax savings and instead of paying the Tax man, you pay the same or more to the bank.
If an investor of leveraged short term rental property does not have enough money in case tenants trash the rental. Then the investor might not have enough cash flow to repair walls, doors, repaint, replace plumbing fixtures after a big party.
The down time during repairs, can put the investor in a serious cash flow bind.
To avoid foreclosure, the investor might sell damaged short term rental property for less than original purchase price.
I don’t know….
Would the investor still owe the difference? Or can he declare bankruptcy?
Again I don’t know.
Anyone who is successful as a property investor is highly skilled and blessed with good luck.
To avoid these possible problems, an investor should have considerable cash or liquid savings to smooth out possible future snags.
Cash flow can be tricky
Good luck
Bros just giving out gems for free... I had to pay for some of this info
Kudos to your editor! How the video was put together sure is a work of art.😍
Flip side is RE market values and rent tanks and down you go.
Do everyone a favor and plot those markets values over the last 70 years.
Yeah, the bubble popped in 2008, but the government stepped in, bailed everybody out, and said, "Don't worry, guys, we'll just stick it on the debt." At that point, the US wasn't $35 trillion in debt. The next time the bubble pops, there's a good chance you won't be able to stick it on the debt. There's a good chance the government will try to kick the can down the road one more time and the can won't budge. Do yourself a favour and plot a graph of median price houses versus median household income. If you want to get into the real estate business right now, go ahead, but you'll be picking pennies in front of a steamroller.
Rent never goes down. Ever
Stock investing if done right and for the long term is not speculative and has proven to deliver superior investment returns. On average approximately 10% per year versus 5% on real estate. Plus there is often significant property taxes, maintenance and insurance costs to real estate, positive cash flows are not easy and certainly not guaranteed. There are also the tenant risks of defaults and lawsuits. The advantage to real estate is leverage, however this comes with its own risks especially when it comes time to refinance. Not to mention the work and constant headaches that come with the responsibility of owning real estate.
You’re 100% right! 10% is the S&P, basically. My goal is to have 40% of a Multifamily building’s down payment in stocks. Then take out half for the down payment, and leave the other half invested. I would then put the money I made from the real estate back in stocks. After 7 years, I should have my initial stock portfolio back and have the real estate. It would take even less time to get back to my initial stock Investment because I’m using the real estate money to grow it. Then I would cash out refinance as the property value went up. I would take that money out, and invest it too. Keep doing that over and over.
I recently subbed to your channel and I hardly comment on YT, but these recent videos you posted are straight bangers with awesome value, clean edits w/ supplemental graphics, and actually provide use cases/numbers/tax codes for others to dig more into. Keep it up! I’m looking forward to catching up on your previous content & for the next video!
Thank you, sir. That means a lot. :)
Except if you listen to him, you’ll be bankrupt and have bad credit.
@@pauls064 everyone should do their own due diligence and consult with certified tax advisors before making huge financial decisions. But i generally think folks being more transparent about their finances, strategies and use cases is a net good. Do not take direct advice from the internet.
So how does this work with Kamala's unrealized gains tax plan?
I guess you are in fact borrowing to buy the assets, but the clear differentiator here is the cost segregation. You almost breeze over the interest expense which is the benefit of borrowing. At some point as rates creep up it gets at least challenging, at most damning.
Sorta. I just locked in a 30 year fixed at 6.9%. My cash is in the bank is giving me 5.1%. Interest is tax deductible so it's almost a net zero to borrow (if you have the cash). Regardless of the cash situation, if you're actually investing I hope you're looking at investments that provide you a higher return than 6-7%, otherwise you're doing something wrong.
5.1 for now it will eventually get lower again though.
We have a similar boon with property purchases in Australia.
This all demonstrates how money is just a game. Play within the rules, and filter all the money out of the masses.
This truely is a rich get richer n vice versa scenario
Off topic, but have you stayed in that earth sheltered home? I’m curious to know if it is as energy efficient as people claim.
Dollars are a liability, debt is an asset. We live in a debt based economy.
get educated before opening your mouth
Debt is only an Asset for the Lender.
In Singapore you cannot borrow till you die. There is a limit to how much you can borrow across all agencies. Govt will ensure no one run into huge debts
Walked into a room of rich folk sharing tips on how to avoid paying taxes... Oops... Ill just back up slowly.
Lowering your taxable income WILL affect what you personally are qualified to borrow in round two. This goes unmentioned in the video and depending how effective you are, may come as a massive shock when you look to finance future property regardless of your credit score.
Nah, not true. Lenders and banks are sorta smart - they understand when there's someone who owns multiple businesses, has several properties and a lot of cash, there's probably a good reason why he/she has a lower taxable income. That's why they'll add back in depreciation (it's a paper loss, not real) and they'll look at your business books. Never caused me issues before except when I only had a single W2 income and only 'hard' deductions.
@@KaiAndrew can happen and has. And could happen to others who get their otherwise “high” w-2 tax bracket whittled down to single digits for the first time.
Kinda like finding out some of your investment property repairs and upgrades will end up on 25+ year depreciation schedule. It’s still the right move, just surprises the hell out of you the first time…
Not if one uses DSCR financing . . .
In my experience, borrowing money against your home is the best strategy. You can use it and having tax write off as well. 🙂
Real estate is YOLOing on margin for most people. I have no problem with YOLOing.
Saying stocks are as close to gambling as possible is crazy
Naked short selling? Remember when Greenspan said “I don’t find it concerning that there is more action on speculation upon a stock than there is revenue”?
@@notsure1135 speculation is gambling, long term investing in stocks is one of the safest things you could invest in especially because you can diversify
Not really. It’s all gambling to a degree
Look at stocks history. The elderly lost that gamble in 2008. That's why some can't afford to retire. It 100% a gamble. Nobody saw the recession was coming along with other historical rise and falls in stock market
Yes, it is a gambling if you day trade stocks.
Someone needs to remind this guy short term rental opportunity is long gone
Quit hating
Not gone but not as easy as people think either. Worth doing but lots of work to make it a unique enough property to be a good performer
@@CarlosJimenez-jh5xzhe’s not hating, he’s right, and many of Kai’s videos are just to sell his course and have very misleading info
does this strategy also apply to making money from rental properties under your personal name
This only works as long as bonus depreciation remains a thing which is done after 2026 after reducing to 20% and then 0 in 2027, correct?
It’ll still work, you just won’t be able to deduct as much in the first year, you have to spread it out over its deductions time frame which ranges from 5-39 years depending on what it is as far as I know.
@6:30 Watch the plants "growing" over the wall in the bottom left corner. As the view gets closer to the house, the plants get shorter and longer before your eyes. The whole scene, the house and land, is AI generated.
Based on how I interpreted this, is reduce your Taxable income now and continue doing that through Depreciation, ect... then pay all the difference later by your loved ones after death? If so how are you taxed after death and are there ways to roll your portfolio into a trust or someother tax savings loop hole?
Explain the difference between paying taxes and paying interest.
Especially when it is amortized with most of the payment going to interest at the first half of the loan period.
Why did you choose to show the highest possible w-2 tax rate (37%) but the lowest possible capital gains tax rate (15%) on your graphic when comparing the two types of taxes?
To help illustrate the difference between the two....
Because those are the people who need the tax strategies
and where do you get your positively geared investment property? Due to interest rates and the property prices, all I am seeing is negatively geared.
so why buy a airstream over a rv.
than you could use the rv to rent out ot people anywhere they want it.
just a idea I'm thinking about doin.
Airstream is an RV=recreational vehicle.
Sort terms rentals are driving rents to unaffordable highs contributing to the housing crisis we’re experiencing.
Question: how is this strategy affecting your debt to equity ratio? Your purchasing power on another property?
Not much. The properties (and business) generate income so essentially cancels out the debt or adds to my income. If you buy properties that just sit there, that another story.
@@KaiAndrew I guess you buy them 20% down, with a lender that accepts rent appraisal.
Lots of financial advices today but at least this one considered dying
Dave Ramsey is screaming into a pillow somewhere
Haha, yeah probably. Although, he probably leverages the same techniques at some point iin his life. It's hard to see him paying for all his 100s of doors in cash over the course of his life. If he did, he needs to fire his accountant.
😂😂😂😂 It’s true.
Robert "Rich dad poor dad" and Dave Ramsey are friends even though they disagree when it comes to getting rich and becoming successful in life. At the end, no one can fault them as they are both millionaires and stick to their best known "methods".
We sure hope so. I know he can't stand us lol 😂
This works great as long as your assets continue to increase and rates remain low. Good luck
What was the rental revenue on these assets, and in what zip code?
How do you make your payments? How do you leave anything to your descendants?
i like this channel, but not sure what banks people are using , but not many banks are making loans right now
this is why DC need to change the tax code to a 10% across the board, no ifs, ands or buts!!! No loop holds, no excusses!!! But still have that Roth stay away from taxes.
Better idea: 2% federal property tax on all assets, regardless of who holds them.
@@raymondflavin8708problem with that is people that don’t own property will vote for things against the property owner. Need a flat tax no concessions ever. Everyone has skin in the game.
Maybe a system like could work, but you have to look at it from the IRS' eyes. Certain 'seasons' of the economy require different incentives. There are times when they need more innovation - so they create tax incentives for businesses to invest into R&D. There's a time when we need more infrastructure - so they create incentives around that industry. Right now, it's focused on microchips and housing. Gotta understand both the micro and macro, not just what "feels" fair.
@@KaiAndrew I disagree with this whole heartedly. Its been well established that if tax something, you get less of it. That is why its a well known tool for reducing things like ciggarettes, fossil fuels, and ammunition.
If you tax reported incomes, you get less reported incomes, and less taxable revenue. Keyword: Reported.
Flat taxes/low taxes have shown time and time again (Hungary flat, singapor low) to sky rocket gdp to the point where tax revenues follow right behind.
I encourage you to watch Art Laffer, he goes in detail how this principle is put into practice.
He doesn’t understand that you probably helped 100 people pay their mortgage with the Airstream purchase ! Yeah your welcome . And all at H/D, drivers . I bet your fireplace guy didn’t work for free.. it’s very nice. If you and I don’t do what we do the economy stops ! We are the gasoline for the economy. Grumpy shorts needs to read The creature of Jekel island and learn about what money is and how it is created . We take huge chances and should be rewarded . I’m older than you and have been in real estate for 35 years . I like keeping an extremely low LTV but Ive been through 1991 , 2000, 2008 recession and can’t afford to lose everything now. . Curious what you think about investing out of the US , let’s say Cabo San Lucas ? Looks interesting with all the building going on …. And a Recession looming. Good luck with your business .
Robert kiwasaki does the same thing . He did a interview and spoke of this . Rich dont pay taxes through debt .
Thanks to you Kai. Following your recommendation, I started researching into Abby Joseph Cohen Services. Thankfully it was a little over a year ago now, I started an lnvestment with Abby's Services and that allowed me to be on much MUCH more stable ground in the face of global financial upheaval.
So thank you, your channel, and your employees. For what it's worth, it made a difference for me and my little family.
Same here, I got to know about Abby Joseph Cohen Services from Kai in 2021. Since then I've paid off 160,000 USD of debt. Now I'm working on building an emergency fund. I didn't even have a savings account three years ago.
I know this FA, Abby Joseph Cohen Services but only by her reputation of being a former employee at Goldman Sachs; even though she's now involved in managing portfolios and providing investmnt guidance to clients. I have been trying to get in contact since I wached her interview on WSJ last month
@@EalDieguez
Well her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Abby Joseph Cohen Services has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's
The very first time we tried, we invested $7000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
The poor persons version of this is to do this with student loans and credit card debt with some crypto laundering and fleeing the country sprinkled on top.
It’s all a rich persons form of slavery. Money only has value because a government says it does. Stop chasing meaningless value. Start living life. That’s when you find purpose and joy. Meaningless paper loves purpose and joy and will always seek it out to either build it up or destroy it. 😈
A lot of great tips here that are easily missed. Basically this is real estate 2.0.
That’s one of the most wild statements the, “investing in the stock market is as close to gambling as you can get” when houses are none productive assets lol.
uhhhh, what? Picking stocks is gambling. Even the most seasoned investors hardly ever tell people to invest in individual stocks - you have to understand market conditions, supply chain management, leadership, demand in the market (near and far), how to read financials. And at the top of all of that, you have zero control what a company does with your investment. If you do not take all of that into consideration it is literally the definition of gambling because you probably only looked at a few charts and read some headlines on your Robinhood account.
What's even more wild is your statement "when houses are non productive assets lol" - you are either renting a space making someone else rich or you've owned a home pre-2020 and sitting on some fat gains. Real estate, hands down has made more millionaires in the US. Don't be a walking oxymoron.
what kind of investments do you have? investing in stocks is definitely akin to gambling. calculated but still gambling.
The stock market is definitely gambling
Bro your wild… Your confusing personal property with investment property 😂
Not from the US but Property and Land has fees for holding them and lots of legal/transaction fees. Where as index funds have very little fees and the capital gains are only when you sell. So I thought that 'Borrow till you die' was you use you holdings as collateral and refinance when its cheap to?
OPM was first made popular by Onassis in the early 1900’s 👍
Liabilities and assets. Study the difference.
Dropping bombs like always! Looking forward to working with you and the team next year!
Sadly this is not the case in UK.. inheritance tax is 40% CGT is 28% soon to be going upto 54% 😢
“The rich ruleth over the poor, And the borrower is servant to the lender.”
Proverbs 22:7 KJV
Not unless the borrower borrows so much they rule over the lender. People see debt as chains, when the wealthy see debt as a resource and freedom. Odd how different mindset see the same thing from different persoective
"The Bible's perspective in Proverbs 22:7 highlights a timeless truth about debt: it places the borrower in a position of servitude to the lender. This verse serves as a caution, reminding us that borrowing can create an imbalance of power, where the borrower is bound by the terms set by the lender. It's a call to be mindful and wise about taking on debt, understanding the potential consequences it can have on one's freedom and autonomy."
Great info thanks!!
You forgot to mention that for capital gains, only long term is taxed at 15-20 percent.
Short term is taxed the same as your tax bracket.
Not true. If you make real money there's also the 3.8% Obama net investment income tax....
Yes, thank you for that detail. For example: Flippers usually will be taxed as ordinary income because they made their cap gains in less than 12 months. Thanks for the comment!
Website down?
Someone tell this guy that buying real estate is MORE risky than your average S&P500 stock.
When you take a 20% down mortgage on a home, you’re leveraging 5-to-1. That means if your home depreciated, you can be underwater and OWE the bank a lot. That doesn’t happen with stocks.
@@rick03168 he’s just selling a dream to grow an audience on here. Typical UA-cam grifter.
he doesn't care. These people don't do the bullshit they preach, that's why they spend all this time making videos and peddling for sponsorships
Well, I've joined several other real-estate communities and "gurus", I can tell you Kai is legit. I joined his community/training when it first opened and he is actually accessible and transparent about what he offers. Nothing is easy or cheap or risk free but his niche is where the STR industry is headed.
@@rdelrinc you don’t need a youtube mentor to do real estate deals dude. Just do some reading online and do it. Ideally have a trusted family friend you can shadow or bounce ideas off of to start.
Real estate isn’t as glamorous as these UA-camrs make it out to be. It’s a lot of grinding for average gains. The above average gains come from taking big risks, and that can blow up in your face since risk goes both ways.
There are no free lunches in finance. I work as a quant on Wall Street and know this first hand. Anyone who sells you some systematic approach to making big money is scamming you.
Houses no longer depreciate
There are too many people buying houses cash now😂
Does this work in New Zealand? I get the feeling it may not due to tax law differences. If anyone knows a similar video but for NZ please link it
thanks to all your teaching
It's my pleasure
The real move is to start your own banking system, and borrow from that to buy assets.
Great video, thanks for sharing!
I’m watch this 10 more times
Why? this is just stupid advice and stupid marketing scam.
@@jonathansaucedo1924 I guessing u have a better strategy? If so I honestly want to hear it
@@youngandsuccessful22 Yes, I do have a better strategy. Work, live bellow your means, don't borrow money, buy stock, buy crypto, buy land, keep doing this every day, every month, every year until your body can no longer work. You'll have a good retirement.
I'm ordinary income taxed at 12%. Head of household low income.
Given the bonus depreciation phase out, if you bought an STR at this point in year and started renting in Q4, can you still have the bonus depreciation hit tax year 2024 or would it go to first full year (ie 2025)?
how where you able to write off the Airstream?
Good video. What do you think about Bitcoin? I heard it's better than property.
I may have to watch this again
Just one hitch. Finding that elusive 3x investment. They don't exist without insider information
Too bad this strategy doesn't work with Bitcoin. At least not yet anyways.
Problem w/refi borrowing is you might not qualify based on income. Imagine buying a $100k property and later it's a million, you think a bank will care that someone else pays $5k a month when your income doesn't qualify for a $1 million mortgage? You may be put in the sell or starve position.
Yeah, true. But you're probably not crying over a $900k payday either...glass half-full, my friend.
How about not carrying loads of debt. I prefer living a debt free life. Paid off house and cars. My taxes aren't bad as i have a sub adverage income. I live better than most on less because i have no debt. It took 15 years to pay everything off, and now I'm stress free as far as housing and finances
At 3:00, Will you please elaborate how i can borrow a million at 2.5% and throw that in a "risk free" account earning 5.3%? Thank you! Bless
Realizing when interest rates are low and pull out money. Buy businesses, assets and invest in treasury bonds. I pulled out money in 2022 and now I have my cash invested in bonds. You can buy through any brokerage (I use Wells Fargo).
@@KaiAndrew thank you very much! What kinds of 2.5% loans would I ask for, and where?? Looks like personal loans start at 7% with great credit! I guess I'd get the loans from a bunch of different banks, or somewhere else? Do I tell them that I plan to use it for bonds? Some banks offer up to 6% in their checking/savings accounts, that could be a good option too, yeah? Thanks again! Sounds like a great system!
@@quartamile there’s no 2.5% rates anymore. About 4 years ago there was. But, with the current rates around 6%, you can only do this if you can invest that cash and make more than 6%. Ideally if you can guarantee getting 9-10% you can make this happen. Otherwise, best to wait a little and see if rates come down further.
@@jjanson thank you for the input! What kinds of loans should I be on the lookout for when rates get back to 2.5%? Personal, business, mortgage, or something else? And where should I look for that kind of loan, from a bank?
Also, I'm curious if you know of any other low-risk high-yield stuff to share. Thanks again!!
what about when interest rates are high??
Do we need a good accountant for this?
You don't need one, but I HIGHLY recommend one. Checkout my accounting team in the video description.
It is what robert kyosaki does
We need a more equitable tax reform
Didn't the thumbnail for this video originally show 15% taxes, not 51%?
Yep, design got flipped during edit. Got fixed. Depreciation recapture.
Real estate is the answer.
Never a borrower nor a lender be!
How is credit score though?
Kiyosaki's strategy.
I stooped watching once I heard 3X assets.
How does this work when loan rates as well as inflation are 5%or more and economy ( not stock market) is going down
Well inflation is at 3% and interest rates are hovering around 7% (both which are historical averages). The simple answer is to create a business or investment that makes more than 7%. Ideally 14% so you have some profitability. Real estate is a great way and so is starting your own business - dealer's choice.
keep borrowing until your loan is bank responsibility 😂
Yes this is the strategy to avoid all taxes by the rich
Who borrowed you 1 mill for 2.5%? ... I'll wait
Don't hate the player, hate (and change) the game...
Hilarous how the real estate "experts" see everything as gambling. 😂😂😂
Really good strategy
What is an airstream?
How can you not know that owning a stock is ownership in a business?
lol, because you buy 3 shares of Tesla does not put you in the same class as Musk. Technically, you own the smallest fraction of a company - yes. In reality, you are no closer to a business owner as I am to a Navy Seal-Astronaut.
Over 14 year Real Estate Investor. You have limited ability, that are complex, and have limitations 1031 Exchange. You may have a Great Investment opportunity in Stocks, ETF'S, etc, you sell the Real Estate, Profit + Yearly income kick you up to the Higher tax bracket. RE=Real Estate profits calculated and tax in 1 one year, Not the X years you have owned the Real Estate. Short term tax for Stocks, ETF's may be higher Long Term= after 1 year of owning stocks your Capital Gains Tax drops Dramatically and is far better then RE