There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

It's a virtuous cycle that expands your network and opens doors to even more lucrative investments.One of my key principles as an investor is to provide attractive returns to my partners.

While cash flow is important (and still achievable here), asset appreciation is what truly accelerates wealth-building.Think of it like the stock market: billionaires don’t get rich from dividends (similar to cash flow); they grow their wealth through the appreciation of their holdings (similar to property value increases).

Unlike investments in stocks and mutual funds, crypto investments allow loss harvesting without the 30-day "wash sale" rules.

Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I've done Crypto, stocks, businesses, ecommerce, trading bots, ponzi schemes etc. 

Can I sell some of my stock held long-term for 3 yrs at etrade to further offset the gains?

The cheaper price point often comes with older housing stock that needs more work.Not saying Cleveland/Akron are bad markets - plenty of investors do well there!

Here’s the bottom line:  Long term success as a real estate investor or real estate business owner requires knowledge of (1) real estate principles (2) real estate finance and (3) real estate law.  

@Jack SeidenGreat question: I am 60/40 stocks and real estate right now, excluding my primary (my investment in BiggerPockets as a private business).