The Cherrypick Capital Podcast on YouTube
Curious How I Transformed This Property Into Generating $210k/year in Revenue?
Are you ready to dive into the lucrative world of short-term rental investments and transform your financial future? Join us for an exclusive meetup on June 27th, 2024 at Cielo Rooftop Lounge at 630pm. Where real estate expert and founder of Cherrypick Capital, Adam Rahrer, will share his journey and proven strategies for success in the short-term rental market. Where he turned a distressed property into a cash-flowing machine, grossing over $210,000 in yearly revenue! #shorttermrental #airbnb #sandiego #missionbeach #realestate #youtubeshorts #shortsyoutube #cherrypickcapital
Cherrypick Capital's Real Estate Riches Meetup - Cost Segregation
To help understand what to expect from our cost segregation event, please see highlights below:
Purpose of Cost Segregation: Accelerates depreciation on investment properties, allowing investors to reduce or eliminate income taxes early in the ownership cycle by identifying and reclassifying personal property assets.
How Cost Segregation Works:
Building Basis Calculation: Subtract land value (non-depreciable) from purchase price.
Component Breakdown: Separate building components into categories with different depreciation timelines (5-year, 7-year, 15-year, 27.5-year for residential, 39-year for commercial).
Benefits Highlighted:
Tax Reduction: Immediate tax deductions through accelerated depreciation.
Cash Flow Improvement: Frees up cash by reducing tax liabilities which can be reinvested.
IRS Guidelines: Follows the IRS’s Audit Techniques Guide, which outlines acceptable practices for cost segregation.
Example Provided:
An apartment complex with a purchase price of $4.5 million can generate a significant depreciation claim in the first year, offsetting taxable income and effectively lowering tax payments.
Key Considerations:
Investment Horizon: Best suited for properties intended to be held for several years due to depreciation recapture issues.
Investor Status: More beneficial for active investors who can use the depreciation to offset income from real estate activities.
Eligibility and Approach:
Properties must have a significant building basis (generally over $50,000) to justify the cost of a study.
Different methodologies (full detailed engineering study versus modeling method) can be used based on the property's specifics and investor’s budget.
Strategic Advice:
Conduct cost segregation studies early after property acquisition to maximize benefits.
Engage professionals to ensure compliance and optimize outcomes.
Legal Disclaimer: Information provided is for educational purposes; investors should consult with professionals (CPA, tax advisor) before making decisions.
Understanding Cost Segregation: Key Insights for Real Estate Investors
Carlos Gonzalez is a Cost Segregation Specialist from the US Tax Advisors Group, Inc. with a background in real estate that spans over two decades. He helps real estate investors understand the benefits of cost segregation and identify the best way to strategize for their investments using cost segregation.
Watch now to learn more about Carlos, the basics of cost segregation, and how you can start doing it for your investments!
Key Talking Points of the Episode
00:00 Introduction
01:04 What encouraged Carlos to get more involved in real estate?
02:19 What is Carlos’ background?
03:08 How did Carlos get into cost segregation?
04:35 What is cost segregation?
07:01 How does cost segregation work?
08:27 What are the benefits of cost segregation for real estate investors?
09:21 What factors should you consider when deciding to do cost segregation?
Key Factors to Consider When Evaluating SELF-STORAGE Deals
Self-storage is a great way to generate cash flow without the headaches of dealing with tenants and that’s one reason we’re getting more involved in it. The way we evaluate our self-storage deals is different from how we do it for multifamily, so if you’re interested in self-storage too, here’s a breakdown for you.
Watch now to learn why we’re getting more involved in self-storage and the key factors to consider when evaluating self-storage deals!
Key Talking Points of the Episode
00:00 Introduction
01:08 What factors do we consider when evaluating self-storage deals?
02:12 What opportunities are available for real estate investors in self-storage?
03:37 How can investors add value to mom-and-pop self-storage facilities?
04:13 What is the price range we’re looking at for self-storage deals?
05:07 How can you expand self-storage facilities?
What You NEED to Know About SHORT-TERM Rentals Today
Short-term rentals are still performing very well today and if you’re interested in turning a property into one, you need to understand the way the whole business model works first, because it’s very different from long-term rentals. There are plenty of benefits to owning short-term rentals, but you have to be sure you know how to manage them well if you want to succeed.
Watch now to better understand how short-term rentals work and what you need to know before you get involved in short-term rentals today!
Key Talking Points of the Episode
00:00 Introduction
01:12 How did Adam get into short-term rentals in California?
02:54 What features did Adam like about the property?
05:03 What are the benefits of short-term rentals?
06:06 Why did Adam decide to self-manage his short-term rental?
07:39 What should you expect if you’re self-managing your short-term rentals?
The Advantages of Working with LOCAL Banks for Your Investments
Local and national banks are different on so many levels, especially when providing funding for real estate investors. Deciding which banks to use for your deals will depend on many factors, so you have to make sure you know what it’s like to work with both so you know the right kind of bank to work with.
Watch now to better understand how local and national banks work for investors and why we choose to get our funding from smaller local banks!
Key Talking Points of the Episode
00:00 Introduction
03:51 What makes the requirements different between local and national banks?
06:01 What are the differences in requirements for local and national banks for investors?
07:38 Why is your personal financial statement important when funding for your deals?
09:01 What do banks look at when evaluating your deals?
11:33 What makes funding different between local and national banks?
12:20 How do local banks give easier access to lines of credit for your business?
14:35 What kind of relationships will you have with local and national banks?