Brian Boyd

And for example, if you're a W-2, it's not going to be possible to do that because most W-2 people work 1,800 to 2,000 hours a year.

So on the low side, you'd have to work 1,801 hours a year in real estate to achieve that status.

Whereas the short-term rental loophole only requires about 100 hours a year, which if you break it down...

is a little over two hours a week.

So that is something that so many people don't know about.

And then to your point,

that we mentioned earlier, if you utilize a cost segregation study and bonus depreciation on that, those deductions explode.

And so you may have a massive loss in your first year on paper, but you're going to see the cash flow increase.

Because what you're not paying in taxes that year, you can then reinvest into another property and do it over and over and over again.

And suddenly you look up in two or three years and you've got multiple properties and suddenly you can achieve real estate professional status because you're spending that much time in it.

And so that is really low-hanging fruit that most people don't understand.

And if I were being honest with somebody,

I would say real estate has to be part of any investment portfolio you have.

It has to be.

There's no way around it.

It's like not having a mutual fund.

right, even if it's just an index fund out there, put your money in it, let it grow, let the interest compound.

Well, the same is true for real estate.

You put your money in the real estate, you take care of that asset, you manage that asset, the debt's gonna be paid down by the people renting that asset from you, and the market forces are going to appreciate that asset, creating a delta, which then in turn allows you to go in and borrow money

out of that equity you've created from the appreciation and the depreciation, and then use that money over and over and over again.