Since I focus on cash flow, I already have the benefits afforded to real estate.

Encourages Larger Investments: By offering higher returns at higher tiers, you incentivize investors to allocate more capital to your projects.Builds Long-Term Relationships: Investors appreciate being rewarded for deeper commitments, which helps foster trust and repeat business.Scales with Your Business: This structure can align with the complexity or scale of your projects, ensuring that you have the resources you need while staying competitive in the market.Key Benefits to InvestorsSecurity: Deals can be secured by tangible assets, such as a deed of trust or promissory note, providing peace of mind.Flexibility: Payments can be structured to suit the investor’s needs—monthly, quarterly, or upon project completion.Attractive Returns: With returns starting at 15%, investors often see better yields than traditional investment vehicles, like stocks or mutual funds.How We’ve Implemented ThisThis structure works particularly well for our large renovation or development projects where multiple investors may be involved.

So honestly,  we have a lot to learn about RE and everything Tax related for it.

Only the interest related to the $50k of renovation use of the loan will be deductible (38%)

.❌ Not All Property Managers Are Great – A bad property manager can neglect your property, overcharge for repairs, or poorly handle tenant relations, leading to unnecessary headaches.Which Option Is Right for You?

I believe these systems only work if you have good employees, in which case a bonus is unnecessary.I provide strong compensation, some benefits like 401k, growth opportunities, and a strong work culture.

I can however relatively quickly add up to a 500 Sqft garage.

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.

., structural updates) can be added to your basis, while maintenance costs are deductible in the year paid.Since bonus depreciation is now at 40% for 2025 and 20% for 2026 under the current law, future real estate investments will have fewer upfront depreciation benefits.

You’re trying to ruin the biggest benefit of the life in flip.