Navi Ventures

How can you make a six-figure profit from developing single-family homes? 🏡

Yesterday, I attended an insightful session hosted by as he walked through his strategic step-by-step process of going from building one to multiple single-family homes in a short time span with your own money or through creative financing.

He discussed his criterias of selecting a site, home sizes, home prices, and cost to build. He has always stuck with his formula when building homes and not once has he lost any money for the 20 years he has been in the single-family industry.

This is how he got started in real estate and built up his personal wealth. Since then, he has built hundreds of homes, entitled multiple land, and now focuses on developing multifamily.

He’ll be back in Dallas in a couple of weeks to do another free training session, I encourage anyone who’s interested in real estate development to please join us! If you’re interested, DM me so I can notify you when the date is set. 🙌🏼

The two hour session he held yesterday mostly covered single-family development and not enough time to get into multifamily development, so he will cover that in the next session.

Great event hosted by Jerome and his team!!! 🙏🏼

🏠💼 Become a Real Estate Professional (REP) to SAVE money 💰📊

One of the reasons why I became a full-time real estate professional is the major tax advantages.

📋 𝐑𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 (𝐑𝐄𝐏) is an individual involved in real estate businesses as their primary profession. In order to qualify, you need to spend over 50% of your working hours and 750+ hours per year on real estate activities.

💵 𝐁𝐨𝐧𝐮𝐬 𝐝𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 is a tax incentive that allows investors to write off more of their assets than typically permitted.

Here are two married couples’ tax scenarios.

These scenarios are simplified, but assume they can take 100% bonus depreciation and they’re in the 30% tax bracket. *Note that in 2023 is now 80% bonus depreciation*

🏡 Couple 1: Both Partners with W-2 Jobs

✳️ Both spouses earn jointly $200,000 annually through their W-2 job.
✳️ Invested $100,000 in a large multifamily syndication deal.
✳️ Received a $100,000 bonus depreciation.
✳️ Their ability to offset W-2 income with the bonus depreciation is limited.
✳️ They pay $60,000 in taxes that year ($200k X 30%).

💼 Couple 2: One W-2 Income & One Real Estate Professional

✳️ Both spouses earn jointly $200,000 annually, one through their W-2 job and one as a real estate professional.
✳️ Invested $100,000 in a large multifamily syndication deal.
✳️ Received a $100,000 bonus depreciation.
✳️ The $100,000 bonus depreciation is used to deduct from their ordinary income of $200,000. With $100,000 income, they only need to pay $30,000 that year ($100k X 30%).

⭐️ Couple 2 can take that tax savings of $30,000 to put it back into their pockets or continue to invest! ️

This strategy is something that we personally benefited from and helped us redeploy more capital into investing.

Getting the REP status can unlock significant tax benefits, especially when utilizing a tool like bonus depreciation.

Note - I’m not a professional accountant, so please consult with your accountant.


___

Taking some of the tax savings toward funding our family trip to Newport Beach couple months back. ❤️