We’re buying a facility in a few weeks with 900+ paying tenants (950k per year in revenue) organized by hand written ledgers.
No credit cards. 1/3 cash 2/3 mailed check. Every customer has a key to a gate and visits the rental office to lease. No service after 5pm or weekends.
Buying for $9,050,000. $620k of in-place NOI.
Rents are 25% below market. 3 full time employees.
A lot of meat on the bone here!
Just a 70 year old man and woman with 2 kids. No debt on entire portfolio.
Running a business like it’s 1985 for 20 years making great money every year.
A thread on how real estate investors, developers and operators can make millions a year and pay almost nothing in TAXES by using depreciation, bonus depreciation, and 1031 exchanges.
How it works: 👇
Depreciation is the act of slowly, over time, deducting the initial expense of an asset against your taxable income. Generally over a 27.5 (residential) or 39 (commercial) yr time frame. So each year you can write off 2-3.6% of the purchase price against your income.
Thats a big deal. We're buying a new property, a $3MM self storage facility. Thats a $60k a year write off against about $260k in NOI and 200k in cashflow on a $3MM deal.
Use an app to load cooler, snack bag, select amount of chairs, type of speaker, number of towels, etc.
Would pay $300 plus to avoid the hour load / haul / setup / tear down.
The real advantage:
You get to avoid parking and all the stress that goes with that. Show up with the cruisers or Uber in.
There is no worse feeling than being half drunk, tired, kids grumpy, and have to tear down the beach setup and throw it over your shoulder to walk a quarter mile.
Then load it up three levels to the condo owners closet.
If you raise good kids, handing down assets only helps them have more of a positive influence on the world and live better lives with more opportunity.
If you don’t believe in generational wealth, can you explain to me why?
I strongly believe it’s your fault for not properly communicating and organizing your affairs if your children tear the family apart fighting over your assets.
Wealth doesn’t make people complacent unless they are never taught the value of a dollar or made to work for anything.
Or learned the sense of pride that comes with hard work and accomplishment.