Real Estate Tax Strategy

Shaan shares a story about how he learned to use real estate investment as a tax strategy late in the year.

"One of my big takeaways for the year is that taxes are your biggest expense once you start making real money. I know somebody very well who is phenomenal at real estate - they have a very niche application of real estate. They crush it - went from 0 to owning $1 billion in real estate with no outside capital in 8 years.

I watched them do that brick by brick. I know their specific method and why it works. I never really asked them to participate in a deal because they don't take any external money. But finally towards the end of the year, I asked 'Hey can I deploy some capital here?' Because if I invest with them, I'll get a great return but also get that sweet depreciation. So I'll get a double return - returns from the property plus tax savings today.

I just started doing it and it is so good, it is so smart. I am so regretful that I didn't take this more seriously earlier. Jess Ma came on the podcast and triggered me to take action on this. During our pre-call she mentioned how most entrepreneurs don't spend enough time on their taxes, even though it's 30-50% of all income and 20+% of investment gains every year."