This is why most wholesalers are terrible because their numbers are never even close on the repair costs.

A cost segregation study was performed on this apartment building in Knoxville, TN with a depreciable cost basis of $17,323,250.

All of this is normal, not too costly, and the process is fairly easy.My point is that your friend is likely lending you a life-changing amount of money and should understand what he’s getting into, how to protect himself, and his options if something goes sideways.

There is marketing costs, staffing costs, costs of brokerage and just running the business in general, technology systems etc etc..

The goal is to give CRE professionals more accurate pre-construction cost estimates and prevent costly surprises.I’d love to hear from the seasoned developers here:How are you currently handling site cost estimation, and what’s missing?

Will a Cost-Seg offset the LTCG on these index funds? 

I had cost segs done on all my properties last year. 

The adjustments you’re making—subtracting the old mortgage, adding exchange-related costs, and applying cost segregation percentages—are reasonable, but confirm with your CPA to ensure you're not missing any adjustments.

Cost segregation can dramatically accelerate depreciation and tax benefits, but I've seen investors waste money on studies that delivered minimal value.

Cost segregation can dramatically accelerate depreciation and tax benefits, but I've seen investors waste money on studies that delivered minimal value.