Save Money On Taxes with Cost Segregation with Yonah Weiss | The Real Estate Investing Club #41

Save Money On Taxes with Cost Segregation with Yonah Weiss | The Real Estate Investing Club #41

Gabriel Petersen 0:02
Hello and welcome to another episode of The Real Estate Investing club. Place investors go to learn tips, tricks and stories from other investors in the field. If you feel we provide value to you go ahead and hit that thumbs up, share whatever it may be. And if you’d like for us to cover a specific topic, let us know in the comments or reach out to us on our website. Today we have a very special guest. So buckle up and grab your pen and paper and enjoy the ride.

And we are live

Yona, thank you for joining us today. How you doing?

Yonah Weiss 0:39
I’m doing wonderful. Thanks so much game. It’s pleasure to be on the show with you.

Gabriel Petersen 0:43
Absolutely. Absolutely. We were talking right before the show. It sounds like you’ve been on over 100 podcasts, which has to be some kind of world record. So I’m very happy to have you on here. To get us started, why don’t you tell everybody you know who you are, what you do and how you got started in Real Estate in the first place.

Yonah Weiss 1:03
So you’ll know why I’m, you know, what’s what can I say I actually spent probably about 15 years or so as a teacher. So really, my passion is in teaching more than anything else. That led me to real estate, because a teacher’s salary does not pay the bills, basically. And I was looking for something else. And real estate was just one of those things. I had a bunch of friends that were doing different stuff at some that were brokers, some that were investors, some of their owners, somewhere mortgage broker, and I, I’d never really even talked to them about real estate, like ever. And I was like, well, there’s so many people doing this and it seems like an industry to get into if you don’t want to have any real formal education and I love you know, when I did, but I hated school year I hated school. I loved learning the process from actually doing things right? So studying on my own and you know, picking stuff up that I love, but having kind of like tests and one of the things, but learning in the classroom as a teacher is totally different than learning as a student. And the teachers really you learn more as a teacher than you do as a student in many ways. So that being said, I set out to just learn everything I could about real estate from my friends. And I just like literally follow them around and like had one friend who want to teach me the entire, like commercial financing like mortgage business, and I literally sat with him every day for about eight months. And just like work with him, like I was doing, I just, you know, the awesome eight calls we made. Yeah, I mean, it wasn’t like for a full time job, but like every day, okay, four or five times a week, not every day, but so it was, it was the point that I was consistently just sitting with him going through the processes, learning how you find potential, you know, clients How you contact banks, how you, you know, learn to underwrite, etc. So in that, a lot of different things like that. So that was just one example. But I did a lot of different things in real estate business in general until I stumbled upon this company, Madison commercial real estate that I work for now that they have a division, a company, we’re actually the largest national company that does cost segregation. I was like, this is a cool kind of tool and taxes was always like one of those things, and I think it’s the way for a lot of people. It’s just like, I don’t want to touch that. Like, I don’t know anything about it. And it’s better that way. Because my accountant deals with that. And I don’t need to I hate numbers. And people kind of have this aversion to taxes, right? Yep. Yep. I was that way too. until I started learning like how this relates to real estate and how as a real estate investor, no, you know, leveraging your knowledge of taxes can really be like the biggest game changer in your business possible. So I started, you know, learning from the experts in our company who’ve been doing this for decades. And, you know, slowly but surely I kind of took my teaching skills and brought that to the world kind of integrated that into this cost segregation, which is like the most unbelievable tax advantage that real estate has to offer.

Gabriel Petersen 4:22
Awesome, I love it. I’m really excited to jump into that you’re absolutely right taxes. It’s the thing. I mean, even for me, when I hear it, my brain just slowly shuts down. But I know that I need that. I know that it’s one of the most important things when it comes to real estate investing. So it’s definitely important. I’m glad you’re here. So just to kind of recap your story, it sounds like you’re a teacher, you’re getting that teacher salary. It wasn’t quite cutting it for you. So you know, you’re, you’re a teacher at heart. And so you decided to go out and learn through the process of actually watching your friends who sounds like you had a lot of them out there in the real estate industry. So yeah, I’m stuck with one for even eight months, which is that’s Impressive in and of itself, just really being the shadow on the wall. And after after doing that for a while you ended up at Madison spec. And you have jumped into their cost segregation department and that is your bread and butter. That’s where you’re, you’re really shining. That’s your expertise. Yeah. Which brings us to today. And so what do you do today? What is your, what is your activity during the day besides being on podcast?

Yonah Weiss 5:29
Well, yeah, that’s one of my main daily activities is.

I mean, you think about it for the past two years, I’ve been over 100 podcasts pretty much, you know, like one a week? Well, at least in the many weeks that were many more than that, but no, really what I do is I you know, I’m in the business development side of the company, which means I don’t actually I’m not an accountant. I’m not an engineer, because Kaiser requires both of those components, the accounting and the engineering component of the, of the process. So we have experts, we have the real you know, people that do that in our company, I run the business development, which means I’m reaching out to new clients, I’m really doing a lot of education. So podcasting, do webinars, just kind of educating people about this because it really, in the end of the day, the reason why a lot of people don’t use this process is just because they don’t know what it is. They don’t understand it and, and, and accountants themselves CPAs themselves are not since they can do this. It requires the engineers, they are not, they’re not proactive enough in most cases to even tell their clients about this.

Gabriel Petersen 6:35
Awesome, I love it. So, I mean, let’s just jump into the meat of it. Cost segregation, honestly, I mean, I don’t know if this kind of shows where I am in my journey. But after watching the YouTube video that you were on, you know, some podcasts in the past. That was the first time I’ve heard of cost segregation, and I it’s not a thing that I’m familiar with, but you know, I watched your video I looked at your website, your wife’s car. If anybody wants to check it out, and it kind of got me thinking about what it is and how it benefits, real estate investors, so kind of take us through the process, what is cost segregation? Who is it? Who is it useful for? And, and who should be jumping in on that?

Yonah Weiss 7:16
Create. So I’ll turn the questions around just so that anyone who’s listening can kind of understand us. And part of the reason you know, it’s really relegated for more people who have larger real estate holdings. And it used to be, you know, 10 years 10 plus years ago, just for like large corporations and people with like, huge, you know, multi, you know, multi multi million dollar portfolios and things that now it’s it’s still to a certain extent, and we’ll get to why this is when we explain what concentration is but usually for people who have holdings in real estate at least over half a million dollars and we’ll see that because why the numbers actually make sense over that point, which is probably why a lot of people who are in real estate investing don’t know about this because A lot of people start out small or started with single families. And this really is not relevant to them.

Gabriel Petersen 8:05
Yeah, so half a million. I mean, that’s, I mean, I’m from the Seattle area, that’s actually not not very much. It’s one house. Right? And so, yeah, but

Yonah Weiss 8:13
how many people in the Seattle area who are investing in real estate actually invest in Seattle? That’s true, that’s true. Because, you know, people who are starting out small and you know, I’ve spoken to hundreds, hundreds of real estate investors and many of them started out with, you know, single families, you know, talking about fixin flips, or whether it be, you know, small buy and hold properties, or small multifamily properties where you can buy in certain places in America, you know, certain states, you can buy a nice size, you know, an eight unit building for for $300,000, right? Yep, absolutely. So it’s still not necessary going to be relevant to them, because we’re, as we’re going to see, it really has very much to do with what’s the purchase price, what’s the value of that property. So so that’s why so just as a person preface, if this is you, okay, then keep listening with intentive year, because it’s going to be relevant right now, if this is not you yet, you still want to make sure you’re paying attention, because this probably will be you if you keep at it in a year or two, if not less. But it’s unfortunate that a lot of people who have smaller properties, never heard of it, because it’s just not something relevant to them. It’s always important to educate yourself and to learn all the strategies that are, you know, there, but obviously, you know, most were focused on their bottom line more than anything else, right? So you want to take care of what’s going to be relevant for me right now, more than Okay, that’s not going to be relevant for me for a year or two from now. But understand this well, because once you get what this tool is, know how to use it, this will literally scale your business. You know, much faster, accelerate much faster. So what is cost? segregation right. A weird Name, okay, we don’t want anything to do with segregation at all. But this is a tax tool, okay? It’s based on depreciation, there’s really like it’s like an advanced form of depreciation. Now, so let’s take a step back what’s depreciation? This is a tax deduction that you get when you buy a property. And as long as you’re not your personal residence, your business property investment property, you now get to take a tax write off literally if the entire value of your property and you buy a building for a million dollars, guess what now you get to actually literally take an income tax deduction of a million dollars but not all at once. Okay, so don’t get too excited. It actually split up over 27 year period 27 and a half year periods more specific or 39. for commercial properties excluding multifamily. You now have to you get to take this deduction called depreciation which says yes, things go down in value as time goes on. Well, not exactly. It’s based on that principle but in truth, right? It’s it’s theoretical, okay, things do go down in value as time goes on. And that’s what depreciation is based on that principle. But it’s not really true when it comes to real estate, right real estate is going up in value as time goes on. It’s the only type of investment that intrinsically is going up in value as time goes on,

Gabriel Petersen 11:24
because you can’t make more land.

Yonah Weiss 11:26
You can’t or when that’s right, which is, which is incredible. Nevertheless, the IRS says, The day that you buy a property, you now get to start this calendar of 27 and a half years over, okay, from day one, and now you get 27 half years to write off, you know, income tax write off this property. So the first thing you do is you allocate a certain amount of land because land does not depreciate, but whatever’s left does get depreciated and therefore, you can take a tax write off of that value. So let’s just give us a simple example. million dollar building and I’m using a million dollars Because again, as you’ll see in the numbers, you’ll see how much benefit there that is if you divide that by 10, we’re doing $100,000 property and you’ll see how little benefit there is. Okay. Which brings me back to the point I made the beginning, which is, it’s really more beneficial. Yeah, for bigger properties, the bigger the property there is proportionally the bigger value there is in the conservation. Gotcha. So have that remainder case, allocate a certain amount of land 20%. Let’s say $800,000 is left okay. 800,000 out of millions 80% 20% of that $800,000. Normally, what your accountant would do is take depreciation of the whole amount and literally divide that by 27 and a half, and you get that amount as a tax deduction from your income tax. Okay, we’re talking income tax deduction right away so $20,000 a year. Exactly. So what happens you made $50,000 from your property? net operating income this year, immediately you deduct $29,000. And you’re left with paying taxes on the remaining $21,000. Pretty good deal, right? You’re only paying tax on a much lesser amount castigation, as we’ll see shortly how it works, the mechanics is a way to actually reduce that to zero. Okay, so you have $50,000 you make and $50,000 you keep, meaning you don’t pay taxes on it.

Gabriel Petersen 13:26
So it it comes into play after the depreciation that you take from the purchase of the property.

Yonah Weiss 13:33
Right? Well, really what happens is depreciation is split up into many categories. And that’s my friend what cost segregation is we’re segregating out the cost of the building into different categories, which actually depreciate on faster schedules. So let’s break it down. You have the building and you’re the main structure of the building and structural components include stuff like the walls, the roof, the floor, windows, doors, Basically anything that’s integral to a building, you can’t have a building without this. Okay, so toilets, right things that are main plumbing main electric, you can’t have a property function without anything else that’s in the property that’s considered, quote unquote, personal property. And this is IRS terminology is depreciated on a five year schedule, which means anything like carpeting, furniture, really interesting. Yeah. cabinets, fixtures, window treatments. Yeah, anything is not literally structural. All the value of those things can be depreciated, meaning you can take as a tax write off that value over a five year period. Okay? Okay. So in a multifamily property very often it’s around 20% Okay, give or take and each property is different, but around 20% of your building value again $800,000 of the million dollar purchase price right 20% to land to the interest on the land. 20% of the remaining $800,000 that means is in that five year property in those assets of the carpeting, and the fixtures and the furniture and all that stuff. So in the first five years, instead of taking a $29,000 deduction every single year, in those first five years, you get an extra hundred and $60,000. Right, which that hundred and $60,000 is going to be added to your 29,000. And guess what, in those first five years, you’re not going to you’re basically taking Yeah, you’re doubling if not more your, your tax deductions.

Gabriel Petersen 15:38
Hmm. Interesting. So and So that’s just one example you said. So, basically, cost segregation is giving out the different aspects of your property. And then applying different tax structures to the those aspects and you know, reaping the benefits of those versus just taking them all in In one chunk, which is what most real estate investors, do, they just take the 29 year, you know, deduction over the 29 year 29 years and they don’t reap the additional benefits that a cost segregation study would bring them. That kind of sound, right?

Yonah Weiss 16:17
Yeah, pretty more or less because yeah, exactly the IRS. And believe it or not, this is the preferred method, or the accurate method of actually depreciating your property is doing the conservation study and according to the tax code, that each item in your building actually has a different tax life to it, which means you should be depreciated at that schedule. So your carpeting you should be taking as a tax write off over a five year period, but unless you do a conservation study, which requires an engineer to actually come to the property, identify what everything is they’re literally breaking down to you know, what’s the square footage of the carpeting, how many fixtures are there how many you know, cabinets are that literally every everything, every square footage of the property with with a very detailed report, you know, with with, you know, calculations and assets, you know whole numbering system and a whole, it’s a lot of hoops to jump through. But doing that, that study, which is exactly what our company does, you’re able to now claim like you said, claim those deductions at a faster rate, and therefore, which again, is the proper way to do this according to the tax code, and then get your get your tax benefits, get those tax deductions. Now, in the early years, were front loaded. Again, we’re not creating deductions out of thin air, but what we’re doing is utilizing those tax deductions to your benefit, so that you can pay less taxes now when you need it, as opposed to worrying about it, you know, sometime in the future when I may need them or I may not need them. It’s using your you know, the leverage of your own taxes. for your benefit.

Gabriel Petersen 17:59
Awesome. Okay. So a couple questions pop up into my mind. The first one is does this is this only applicable to people who have recently within the last year purchased the property? If you purchased the property five years ago? Is this still relevant? It’s Is it still something that you’d be doing at that point? or?

Yonah Weiss 18:18
Yeah, excellent question. It’s something you can do actually retroactive, you do not actually need to do this in the first year of acquisition if you were depreciating your property. And what happens with many people is that they take attacks right big accounts and sets up their depreciation in the street, what’s called the straight line method takes an entire amount over 27 half years. Now, once you do that, you’ve established that in your tax, your tax form and your tax returns, right, you don’t actually need to go back and amend any of your tax returns. All you need to do is file a form which is called the 3115 3115 form which is a change of account. method. In doing this, you now can tell the IRS I was using that method, straight line. But now from 2020 forward, I’m going to be using a different method, which is called cost segregation method. And now I can get retroactively I can make an adjustment not amendment. I don’t need to amend any tax returns, I can just make an adjustment of all the depreciation I missed from the past five years that I should have taken, had I done it this way. And so now in this year, I can get a huge tax deduction this year, which which is really beneficial. It’s like getting a big bonus

of tax deductions all in one year.

Gabriel Petersen 19:41
So if if Joe listener, you know, he bought a million dollar property six years ago, he’s been doing the straight line straight line method ever since, because that’s what his you know, his accountant or his CPA told him to do. You know, he’s listening to this podcast, he figures out you know about cost segregation so he can go to To a CPA and say, we need to file a 3115 form, I want to do cows cost segregation. So Joe can still retro actively get gained the benefits of cost segregation going forward.

Yonah Weiss 20:12
Correct. Now, his accountant might turn around and be like, ah, I’ve never filled out a 3115 form, it’ll go to the IRS website. And it has instructions of how to fill it like any tax form. But it will say it should take you somewhere between six to eight hours to fill this form out. And accountants me like it’s not worth it to do the constant irrigation, you’re not going to get anything from it. This happens way too often. So one of the things we do as a firm Madison specs, again, we’re the largest national company that does this. We do that form for you for no extra charge, just as we do them every single day. And so it’s something that for us, it takes, you know, a few minutes or whatever to do. We have a system in place, so it’s not a big deal. So go back to your accountant Joe and say, they do the 3115 for you. And it sounds like wow, okay, cool.

Gabriel Petersen 21:00
Do it sounds good. Awesome. So that’s actually the solution is get away from the accounting go to Madison specs.

Yonah Weiss 21:07
I like right. We’re not an accounting firm, which is great. We’re not trying to sell any other services, we’re not filing any taxes. All we and we work with your accountant want to make sure everyone’s happy. All we do is make your accountant look like a rock star because we give you all these tax benefits. And that’s all we do. We do conservation. And that’s it.

Unknown Speaker 21:25
I love it. I love it.

Gabriel Petersen 21:28
Okay, so the other question that I had, you mentioned 500,000. Mm hmm. And yeah, that is not that’s for your portfolio. Correct. It’s not 500,000 for an individual property, it’s 500,000 across the portfolio.

Yonah Weiss 21:41
So I would actually look at it more like 500,000 per property, and I’ll show you why. Okay, so again, we take our example, we take our five minute let’s do 500,000. We did a million before, but Well, we’ll do 500,000 just to make it kind of drive home a little bit. Okay, we’ll just divide everything by Half in half, we had 500,000 instead of 200,000 to land is 100,000. So land right off of 400,000 your basis retaining 20% to five year property instead of hundred 60. You got 80,000 of extra deductions over five years 80,000 over five years is not a tremendous amount. What is that like? 18,007 $16,000 of extra depreciation a year. Right? So on top of your regular, you know, in this case, instead of 21,011 and a half thousand, right 11,010 and a half thousand excuse me, so you’re getting extra 16,000 here, that’s great. But again, to do this, this is a service right? You have to pay a certain amount. We don’t we don’t charge on a contingency basis, not based on how much taxes you get. It’s a one time flat fee. The fees gonna be exactly the same fee if you have a $500,000 building or a million dollar or a million dollar or a $5 million dollar building. So your tax benefits again, what we’re doing is creating these deductions. These deductions are are going to benefit you in a way that you’re paying less taxes. But if you do the math, you’re actually there’s a net present value to that, which means, yes, you’re paying less taxes, but you’re not getting this $16,000 a year of refund money, what you’re doing is just lowering your taxable liability if you’re in a 25% tax rate, you know, that’s an extra, if you look at it that way, it’s an extra $4,000 a year. Gotcha, right. 16,000, you know, 25% of that, you’re getting that. So, will you pay a few thousand dollars, let’s say three $4,000 to do a study, which is, you know, what, what the price would be for a minimum type price to get a $4,000 you know, benefits. So again, at a $500,000 tax rate or not tax rate, property price, purchase price, that’s what you’re looking at, your net present value is going to be significantly less. And as you multiply the cost of the building, right, think about a $10 million building instead of a you know, 200,000 years. About a $2 million deduction, which I mentioned the first five years, there’s a new tax law now, it’s called bonus depreciation that you can take the entire amount in the first year. So, literally you can take, you know, all of that accelerated depreciation as a first year tax deduction that can still makes sense for smaller properties by the way, which is the one exception where it might work and might be beneficial for small properties, but this study needs to be done on a property by property basis in less unless the properties were bought as a portfolio and you are depreciating them as a portfolio. Ah, okay.

Gabriel Petersen 24:42
Okay, which is not, if I bought, you know, 10 houses in Cleveland with a total value of you know, 600 $600,000 then in that point because they’re being, you know, seeing from the tax perspective as a portfolio and not as individual properties that Right, then it makes sense. Otherwise, as an individual property, it only makes sense. Once you hit about the $500,000 mark, due to just the cost of the cost segregation study itself.

Yonah Weiss 25:10
Yeah. And it might in the future, you know, go down, it might be less, you know, we’re developing technologies right now, that are going to make it much more cost affordable in the future for you know, to even do on smaller properties. So instead of maybe $3,000 $5,000 fee, it might, you know, be might be cut into, you know, a half or a fraction of that which would therefore open up the market to a much, much larger market.

Gabriel Petersen 25:36
Awesome, I love it. Well, then, if somebody wanted to do this, where where do they go? How do they How do they get this cost segregation done?

Yonah Weiss 25:43
First thing is, you know, reach out to a firm like ours Madison’s fax he reached out to me like you said, You don’t know why he’s not calm. You can go to our website, you can email me whatever, find me on LinkedIn. That’s what gave me very active there. We always run a free analysis, which means we will Without having to go to the property, we’ll look at the property. And we’ll look at numbers and we’ll look at certain data about your building will be able to tell, based on that information, what your potential tax savings are going to be. And it’s not just like throwing out a number and like maybe we’re going to be off if we do the full study. This is like the bottom line, minimum deductions you’re gonna get if you do a full study, which we do this as an educational piece that you can see, just, you know, decide for yourself, does this make sense for me, does it not so the first step is always reach out, get that free estimate. It’s very informative, it just shows you if I do a full study, this is going to be my my tax benefit here. Is it make sense? Does it not make sense? That’s it, you can show it to your accountant, you can discuss it you can see with your partners, investors, etc, etc, etc. That’s the first thing you do from there. You know, we like I said, we always send an engineer to the property, although now with social distancing, and travel restrictions. And things like that we’ve developed some new to a virtual site tour where we’re doing it through technology and doing with, you know, video recording with

Gabriel Petersen 27:10
videos. Yeah,

Yonah Weiss 27:11
exactly. And, you know, I think part of being the biggest company that’s doing this, we have to adapt, you know, we have such a large volume of clientele. You know, we did over 2800 studies last year alone. So you know, we have a large volume, we need to keep up with time, we couldn’t possibly do that if we still with the traveling restrictions in place to keep up with desires.

Gabriel Petersen 27:35
Absolutely. Awesome. So, free estimates. I love that. So if somebody wanted to, you know, if they have a $500,000 million dollar property that they want to reap the benefits of cost segregation with, they go to your wife calm, you can help them out. You get free estimates on that, which is which is great, and you’re even doing it now. The one other question, it sounds like you don’t have geographic restrictions. This is anywhere in the US. Correct.

Yonah Weiss 28:00
Correct. Yeah, we’re in all 50 states.

Gabriel Petersen 28:02
Awesome. I love it. Well, that is great. I love I’m glad I was able to learn a little bit about cost segregation I have, we’re actually in the process of buying an $800,000 property coming up soon. So, I’m glad I’m glad I had john here. I’m probably gonna have to reach out for that free estimate. With every episode of the podcast, we always ask a few other questions. So I’m gonna move us along we’re gonna step off of cost segregation for a second. I know that you also invest in properties yourself. Is that correct? Yes. Awesome. So we all know real estate is a roller coaster goes up goes down, you got your your peaks, your valleys, it doesn’t matter how good you are. You’re always going to experience lows, you’re going to experience highs. So take us to one of the the valleys that you’ve experienced one of the hard periods and periods that you’ve experienced in your own investing, and tell us the best lesson that you learned from that experience.

Yonah Weiss 28:56
You know, I’m just going back i think you know, as As I mentioned the beginning I dabbled in a bunch of different things. One of those things was fixing flips. Which, which, you know, for anyone who’s dabbled in that, and didn’t stick it out the long, long haul is probably one reason and one reason only because it failed. And, you know, everyone fails. Right? It was, you know, and I had a partner and he was really running running the show. Like I said, I was just kind of getting my feet wet, just learning how to do it. But nevertheless, I, you know, I got hit from it. And I definitely learned my lessons, right, which was, you know, we had a contractor that we hired to do a property and in the middle, obviously, things and for whatever reason, things changed from what we had originally discussed, hadn’t put in writing. And then there’s always change orders and there’s things that are happening that the prices is law, you know, is the investment is a lot more than you actually had originally expected it to be and the term Round time is really up in the air, we really had a property that sat on the market for a year without without being sold. Yeah. Okay. which carry on talking about Yeah, the carrying costs you’re talking about, you know, we had originally we had a loan on it and so we ended up losing money on this deal. So you know, you’re going in with this great business plan and all things being considered and you know, being as conservative as possible with the numbers, but you still have a business plan that after all said and done, we’ll keep it on the market. And within three months, it’s going to get sold, right? Right. No, didn’t happen. So that was a big big hit big last big learning experience. And that’s why I probably will never do it.

Gabriel Petersen 30:43
ever again. You need both life read by I did fix and flips made it three of them to start out and that was, that was it. Three was three was my number, but I’m glad you learned that lesson. It sounds like so get everything in writing. It sounds like that was one of the big things. They’re contractors. If for all you fixing flippers out there, we love you, you guys got more conus than myself. But contractors can be the biggest you know hair in your in your entire thing. So make sure you get people you trust and make sure you get things in writing. If you know a handshake is not going to work, especially when you’re when you’re talking about contractors because they’re the ones that really carry the carry the value into the property. So glad you came out the other side. Glad to have you here. So now that was your low point take us to the top. You know we were all in real estate for a reason, one reason or the other. You’re still here you’re still loving it what gets you out of bed Whitestone real estate.

Yonah Weiss 31:39
You know, I love networking. I love the fact that you can literally meet anyone around the country doing anything and because of the business model that I’ve kind of created for myself, which is through social media being a very big value add you know, providing a lot of content making a lot of connections to people Not to people making connections among other people. Like I’ll try to introduce people all the time just just throwing it out there and connecting all kinds of people within my network. And I think that’s been the biggest value add to me because I can literally go to anyone that I know. You know, it doesn’t matter how big they are, and thank God because our businesses we have a lot of like I said, 2800 last year alone. We have a lot of very, very big big players in the real estate game that we work with around the country. So that that’s an that’s a huge they said in your network is your net worth. That’s huge. I’ve literally started got my feet wet in multifamily investing recently, a large larger multifamily kind of, I wouldn’t say syndication, but kind of kind of deals were with a couple partners. And because of the value that I’ve been constantly providing for people my network for the past couple years, I literally reached out to a bunch of people I needed. You know, I was looking for a partner looking for someone who would maybe cosign alone, I didn’t have the net worth, and you needed, you know, buy a $10 million building, you need a net worth of someone who has that, you know, didn’t work for me. So I literally was, that was a high point for me, I reached out and I literally got such a response from so many people that they would be willing to do that without ever having, you know, literally worked with me in that regard. So that’s, to me, that was the highest point. It’s not about the money. It was about just the feeling of accomplishment that, you know, they say your network is your net worth. It’s so true. It’s really true. I felt that

Gabriel Petersen 33:40
and and yeah, I mean, you’re not the first person to say that real estate. I mean, I can say it every single episode. It’s about relationships. Not only is that what makes you successful, it’s also what you know what that is the benefit of it. It’s It’s such a networking game. It’s such a relationship based game that you know, It does, it just brings you so much brings me a lot of satisfaction in you as well knowing that there’s people out there that you can benefit, benefit, give benefit to and benefit from. And so relationships really are what brings people together. And that’s what gets me out of bed for this too. So I’m glad glad you’re on the same page there. Moving on one, one little thing, we try to keep this to around 20 to 25 minutes I’ve been I’ve been trying to be a little bit more strict on this. But to close this out, we all have habits that contribute to our success. You know, everybody’s different. But we all have these common things that really contribute to what gets you know what brings us the most benefit in our businesses. So tell us what is the one thing that you do on a daily basis, weekly, monthly, whatever it may be, that you feel brings the most benefit to you and your business.

Unknown Speaker 34:52

Yonah Weiss 34:55
It’s that simple. Good one, but I wouldn’t even say that. That’s like the number one. I say the The number one thing would be

which is really connected to what I said before I literally go out of my way to connect people every day I try to go out of my way to connect people and so you may be considering like helping people and I look at it like helping people like I love to help you I love whatever I can do. And I’m you know, I’m not Don’t take me for a fool like I I know who to help and want to help and I definitely have my limitations doing that. But that being said, I go out of my way to try to make at least one introduction every single day to other people. So that’s I love it that’s helped me and it come back, it’s come back tenfold. I can tell you that honestly.

Gabriel Petersen 35:41
Awesome. I love it introductions it is and it’s such a simple thing because you can do it over email. You can do it on social media. It doesn’t have to be over the phone call phone calls are the best or in person. But it is a I mean I agree it is such a under utilized or under appreciated method and you know habit that you can get into to really grow your business and just grow your satisfaction with what you’re doing. Awesome. Yona, thank you very much for being on. I know I can speak for everybody listening and watching that we appreciated the wisdom that you shared with us today about cost segregation. You’ve already answered the question. The next question I asked is where can people reach you? Yona Go there. If you want to learn more about cost segregation or hire Madison spec to do a cost segregation study for your own property. I will also put you on his LinkedIn profile in the comments. So if you want to check their click through, you know, reach out message Yona and he can he can take you from there. So again, Yona, thank you very much. And for everybody listening and watching. We look forward to having you guys on the next episode.

Thank you for joining us on The Real Estate Investing club. If you feel we provided value, we would appreciate it if you hit that thumbs up, share with your friends. Online, whatever it may be. If you’d like to share or partner with us on an investment deal, we are always looking for quality projects, go to http://www.hp real estate investing to get contact with one of our partners. Otherwise, I hope you guys have an absolutely fantastic day and I look forward to seeing you on the next episode.

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The Real Estate Investing Club is a podcast and YouTube show where real estate investing professionals share their best advice, greatest stories, and favorite tips in real estate. Join us as we delve into every aspect of real estate investing – from self-storage, to mobile home parks, to single family rentals, to real estate syndication!

If you’re a real estate investor and are looking for tips and motivation to grow your business, this is the show for you. This is an interview-based real estate show where I’ll be hearing from investing pros from every asset class, niche and geographic area in the US.

Join us as we learn about these REI pro’s career peaks and valleys and the lessons they learned along the way!

Topics you’ll learn more about throughout our episodes:

– Using the BRRR strategy to buy income properties

– Flipping houses the right way, building quality housing and taking home a large payday

– Using hard money and bridge loans for real estate investments

– How to bounce back from bankruptcy and build a thriving empire in the wake of failure

– How to use property management companies to help scale your real estate business

– The best online and offline tools out there to take your real estate investing business to the next level

– How to do out of state investing without risking your shirt in the process

– Going from broke to 300+ deals in a month (really!)

– Investing in commercial real estate

– Stories about brand-new investors and the lesson’s they’re learning as they take on their very first flips and rentals

– How to use Google Ads and Facebook Ads to crush it in off market real estate marketing

– How to fill your pipeline with off market deals using direct mail, voiceless mail drops, and text blasting

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