Not Your Average Investor Show
Not Your Average Investor Show
420 | Tax Advantages Of Buying Rental Properties Before November (Little Known Secret)
Tax savings are one of our favorite profit centers of rental property investing, and a big reason why real estate is such a great tool for building wealth, but did you know that WHEN you buy real estate makes a difference on your tax returns?
It does! That's why we're hosting a special edition of the Not Your Average Investor Show to talk about the advantages of putting properties under contract BEFORE the end of November!
Join Gregg Cohen, co-founder of JWB Real Estate Capital, and show host, Pablo Gonzalez, to learn about:
- Which are the tax benefits that our investor community most love to take advantage of
- How putting properties in your portfolio before the end of 2024 will set you up for a happy 2025 tax return
- Why waiting until December could cost you thousands of dollars in tax savings next year
- and more!
If you are a fan of the show, you KNOW Gregg loves talking tax savings!
Join us and start setting yourself up for a happy tax season today!
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Today we are talking about, someone's favorite topic of all time And that, that someone is waving and it is every time we talk about tax savings on this show, you see an extra sparkle in GC's eyes and that sparkle will be prevalent today because we're talking about the tax advantages of putting properties under contract. Not just before the end of the year by November. This is some real stuff we've got to talk about today. Welcome everybody to your weekly edition of the Not Your Average Investor Show. Today we are talking about, someone's favorite topic of all time And that, that, that someone is waving and it is every time we talk about tax savings on this show, you see an extra sparkle in GC's eyes and that sparkle will be prevalent today because we're talking about the tax advantages of putting properties under contract. Not just before the end of the year by November. This is some real stuff we've got to talk about today. I'm your host Pablo Gonzalez with me as always the man that I affectionately like to call GC because he's got the genius concepts he knows how to generate cash flows because he's a great co host and because his name is Greg Cohen. Welcome to your Super Bowl Greg say hello.
Gregg Cohen:Thank you Pablo and great to be with all of you.
Pablo Gonzalez:It's great to be with you today as well my friend. I know that you are particularly pumped for today. Greg you want to tell people why you love tax savings so much.
Gregg Cohen:I mean, I feel like tax saving conversations is what Friday nights were made for. I love tax savings because, you know, when you go to a store and they say, oh, you should buy this because it's 20 percent off or 30 percent off, you know, we all really think, you know, that like, we kind of know, like, Are you really getting 20 percent off? Are you really getting 30 percent off? It's not real. I often joke about it with my wife and she's like, Hey, I got 40 percent off of this. I'm like, really? So you could like buy that and then you could turn around and go outside the store and sell it and make money off it. Really? Is that how that works? And she kind of, you know, gives me one of those looks. But the reason I love tax saving is because that's really how it works. When you take the time to educate yourself and you start to implement some of these strategies that I'm going to be sharing with you today, It really is getting a 30 percent discount or a 40 percent discount. And it's also about getting that discount today versus waiting for that discount. And you know, that has a big impact on your financial wealth, especially as you start to implement these, these, implement these things year in and year out. And you hold onto these assets for a full market cycle. This is how you get ahead financially.
Pablo Gonzalez:I would summarize that as GC likes tax savings because it's a good deal and he knows a good deal when he sees one and all these other good deals that there are not really good deals, but tax savings are real good deals. So we're going to get into that. But before GC. Before we get into that, there's a little something that we'd like to start the show with. You remember what that is? Mmm, the roll call, baby. The roll call, baby! Kicking us off with Joanna in the chat, our community manager. If you need anything, reach out to her. We got the MVP, Lee Bishop, in the house. We got the early bird checking in, number two, Dean Curry. We got Rachel Fonse from the N N N N N Empire, Reggie. Good to have you in here. We got the Shaw man from the West coast with his traditional good morning. Good afternoon. Nadeem Shaw. We got the Maven from the mountains of Denver, fresh off the press with a newsletter coming out about her investment strategy coming soon after being a star guest last week, we got our usual lead off hitter batting. I think that today, John Henning in the. In the after cleanup spot. I don't know. We got Chris Lee from Fernandina beach. We got the mystery man, Denny Davis saying tax advantages. My favorite profit content. Woo Hoo GC and hello from Kuwait. Denny. Always good to have you here, buddy. We appreciate your service over there. We got milady. Jack Chata saying, good to see you. Who else we got in here checking in? We got not your average guest. I'm assuming that they're checking in from texts saying howdy from New Jersey. I'm just going to go ahead and guess it's the better Greg, Greg stone. That's his usual call sign. Howdy from New Jersey. We got our favorite smile from the Pacific Northwest, Pamela Myers from the Seattle area. Good to have you, Pamela. We got Mark Norman back in the house from sunny. So Cal Layla Powell teammate in the house. We've got the ring master drew Barnhill checking in. We got the first family of the natural average of us show the Patriarch and matriarch Ken and Karen. And Malene, we salute you. We got T castor from the Nashville it from Nashville. Checking in T good to have you as well. Charity Graham is back saying hello everyone. We've got another, not your average guest. If you, if you checked in. From the text link, you got to tell me who you are so I can identify you or else it just shows as not your average guest. But somebody's saying hello everyone, love tax savings, you're in good company here. Ron B from Edinburgh, Scotland today. Ron B, that's a new name. Ooh, new name, Ed from Scotland, wow. It's my Ireland. All right. All right. Good to have you. I'm really jealous. I want to go to Scotland. Mary Rockoff from Scottsdale, which is like Scotland, a little drier, a little bit drier.
Gregg Cohen:Very close.
Pablo Gonzalez:A little less greenery. We got Kevin O'Brien in the house. Kevin, top of the morning to you, buddy. Always love having Kevin. Teammate Allie King, superstar in the house. Caitlin Kitchens in the house. Kate from, Kate from JWB as well. Another JWB rockstar. Another teammate. I guess you're not the only one in that, in that, in that room that loves tax savings, GC. We got Vernon Campbell from Stone Mountain, Georgia. Beautiful little area up the street. Good to have you, Vernon. Vernon, is this first time Vernon coming? I feel like I've said Stone Mountain before. But anyway, welcome
Gregg Cohen:to the party. We are super happy to have you.
Pablo Gonzalez:Good to have you buddy. Good to have you. Annette sec from New York city. That is definitely a new name. Annette. Good to have you here in the family. Make a friend in the chat. Everybody here's real welcoming. Who else we got in here? Justine Herrera. Saying hello, everyone. Good to have you back. Justine Zenobia Lewis from Georgia. Odette Jordan from North Carolina. A big old roll call today. Of course, superstar teammate, Kate Sutherland, Shannon Lillard, good to have you as well, man. A lot of people, a lot of folks today.
Gregg Cohen:Here we go.
Pablo Gonzalez:Ron B, Ron Borowski, longtime listener and JWB investor since 2023.
Gregg Cohen:That's right. I got to work with Ron when he came on board here. So, so nice to see you, Ron.
Pablo Gonzalez:Ron B is like a super good 90s hip hop name. Just saying it. Ron B. Ron B is on the mix. You know what I'm saying? Ron B. All right We got Eves. Eves Richard. I don't want to mispronounce Eves last name. It's Richard Dole. Eves, good to have you back. Eves, haven't been, haven't been here in a while. Thanks for coming, buddy. All right, GC. We got a room full of not your average investors wanting to talk tax savings. So let's wait a minute. We got some breaking news. Do you see before we get the tax savings, you got some news to break? What's it? What's going on?
Gregg Cohen:Where did it come from? I have no idea where that news came from. Yeah, just a couple of, opportunities just to brag a little bit about the team and, and. You know, instill a little bit of confidence in all of you who are JWB clients or thinking about it. Just as far as what vertical integration does for you specifically on the property management side. You know, anytime I come across a new stat that gives us like an industry standard, I like to compare it to our stats and then share it with all of you. Well, I just came across an industry standard for response time when it comes to work orders. And according to property meld, which is a really wonderful company that, helps property management companies put in great systems and technology to help with taking care of work orders. Property meld says between 32 to 39%. of work orders resolved in, are resolved in seven days or less. So they put all this information together. 32 to 39 percent of property management companies solve work orders in seven days or less. JWB, 38 percent of ours. So same standard, 38 percent are resolved in two days. So everybody else, the standard is seven days. For JWB, we hit that standard, but it only takes us two. So a ton, a ton of hard work and systems and great people to make that happen. But I just wanted to share that with you. And also, oh, by the way, that's, that comes along with the fact that in 2023, we resolved 14, 883 work orders. So 5, 635 of those were closed in two days or less. So this team is working hard for you guys. And we have a great job. We have a great time doing it for you too.
Pablo Gonzalez:I feel like as I've gotten to know this space more and more, and I'm right now at NARPM Nationals, right? It's like the big association of property management. Just saw Melissa Gillespie, superstar property management, leader at, at JWB. This moment, the moment when a work order comes in, which is essentially a maintenance request is like the most critical juncture. In this entire equation, right? Cause it's the moment where the resident is feeling the most pain. It's potentially the moment where the owner, someone like myself who invests with JWB and owns, rental properties, has the most fear. And. You know, it's like the moment when great property managers really, really shine and this idea of reducing the amount of time that you're in this moment where as a resident, something is broken, something isn't working. I'm having a bad experience. I'm having a bad resident experience until this thing gets resolved. And as a, as an investor, I'm just wondering, man, you know, when is, what, Is this thing gonna go from like 300 bucks to 3, 000 bucks or 30, 000 bucks? You know, like how how quickly can we go from uncertainty to clarity so I can just like make sure that like, all right Plug this hole. Everything is working and move on taking that from Seven days of like uncertainty and bad experience and reducing that by five of the seven days to due to two days Feels like the quintessential like this is this this is the shining moment of how a property manager Make sure that everybody in the ecosystem stays happy and you're creating these like triple win results I'm I thinking about that correctly GC
Gregg Cohen:Yeah, absolutely. You are. I read a book a long time ago and I talked about moments of truth. And through the, the buyer life cycle and through the repeat buyer life cycle, the client and service experience, there's always these moments of truth. And that might be the first time you call a company and hear that pleasant voice on the other side, or maybe you call that company and you get a voicemail and they don't call you back for seven days. Right. It was a moment of truth, either a good one or a bad one. You know, a maintenance item is very much a moment of truth, especially for your resident. Right? You can have a great experience with a resident. You have a maintenance item, it doesn't get handled well, and that can be hard to recover from for a long time. That can affect rent collection. That can affect moving out and not renewing for sure. It's, it's really the number one reason why residents choose to move out would be because their property manager doesn't take care of maintenance items. So it's very much that moment of truth. And for you as an owner, if it's done well, most of the time, you never know about it because this vertically integrated team, JW property management takes care of that issue. If it's below a certain threshold, we already pay the bill for you and it's already resolved and you find out about it after the fact, after everybody's happy and healthy. Right? If it's above the threshold, then we work with you. We have the solution in place. We get your approval for it. But either way, this should be a moment of truth for your resident and it should be a moment of truth, a very positive moment of truth for you as the owner. But most property management companies aren't equipped to do that. So it tends to become a negative moment of truth for, for many out there.
Pablo Gonzalez:Love it, man. I like, I like this moment of truth framework. It really is instead of the most vulnerable moment, it's the moment of truth. This is when you really find out if you've got the right team for both of your stakeholders, right? Like for the resident and for the owner. Good job, GC. Good work with that stuff. Great job by the team. Milady Jag is asking, that's really interesting, does JWB track the reasons why tenants don't renew?
Gregg Cohen:Yes, we do. and you know what, maybe I can look more into that and give you some, some color on it. I haven't seen it in a while, but I know that we do track that.
Pablo Gonzalez:I'm sure I'm sure that I could ask Melissa Gillespie because I'm going to see her because you're good. You're
Gregg Cohen:closer to her than I am right now.
Pablo Gonzalez:All right, cool. So we will you will be updated with that, Jack. But yes, absolutely. They track it. You know, I think I think the more that I've spent time in these, like, property management world events, right? Like, which is who we all rely on. It's the number one reason why you're going to succeed or fail as a rental property investor on the passive side. This, the maintenance joint, right? Like that, like that, that. That's the Achilles heel of it all. If that thing isn't working well, kind of everybody has like a, has a, has a miserable experience and reducing the size of it to me seems like tantamount to like the success that you guys have had. Congrats to the JWB team. All right, GC. We're going to get into the four reasons why you, you know, like why tax savings are great, right? Like for rental property investing, we're going to do a primer on that. And then we're going to talk about two key reasons why time is of the essence for rental property investors. Something new that I want to show to our community and anybody that is new in particular, we have developed this accompanying. Show guide, right? for the last quarter, every slide, everything that GC has referred to, if you're enjoying the show, you're here for the first time, or you've missed a couple and you're catching up. If you want the slides that accompany all this show, everything from the Q3 rental market update with the headlines of what's affecting it and the big decisions to make to You know today's show of tax advantages of buying rental properties to the past couple of shows of the median income data If you want all this information, I have it here on the bottom of the screen But all you got to do is text tiara at 904 293 0341. She'll send it to you. And now you have this like accompanying data workbook thing that you can like follow along with all the past shows that we've done for the past quarter. I love that GC has started doing this. Just compiling everything together in one place. Make it easy for you to follow along. But for now. What you came here for tax advantages of buying rental properties before November, 2024 GC, let's start with the tax advantages of real estate, right? We talk about rental property investing as five profit centers. It's the cashflow, the home price appreciation, the tax savings, the debt pay down and the inflation hedging tax savings seems to be one of these things where people just really love it. It's like you said, it is a true discount on appreciating things that when you go out into the market, you kind of get to reap those rewards. But tell me about the tax savings of rental property investing, just from whether it's time sensitive or not, what is it?
Gregg Cohen:Yeah, absolutely. So just this asset class is so advantageous from a tax savings perspective. You think about all of the rental income that you earn, call it the gross rental income that you earn and, or your rental property. And when it comes down to just the, the taxable component of it, it's, it's a very small percentage, sometimes none of that rental income that you earn is actually taxed in that year. And that is just incredible. If you go to other asset classes and you earn a bunch of money, like in rental properties, you earn a bunch of rental income. In other asset classes, you're expecting to be taxed on it in that year. But in, in rental properties, in real estate here, we have this beautiful thing where we can earn thousands, tens of thousands of dollars of rental income, gross rental income, but not have to pay taxes on it this year. And it's just built in. It's not something that anybody has to do or achieve a certain status or make a certain amount of money. It's just built in. That's how much the IRS helps us out here when it comes to these deductions. So specifically the way you go from earning tens of thousands of dollars in gross rental income to paying no taxes on it this year is by getting an incredible amount of deductions. And these are expenses where you pay money for something, but you get to write it off against the gross rental income that you earn. So things like interest that you pay on your mortgage, your property taxes, your maintenance costs, repair costs, when you do have to spend some money to repair the property, well that gets written off. Your property management fees I don't think I said insurance costs. All of these things are big ticket expenses. But after that, you still have positive cash flow left over and you get to take those big ticket expenses and write it off against the income. So you're left with this beautiful situation where you take home cash, cash flow positive, but you don't pay taxes on all the cash flow that you received and that is a beautiful, beautiful thing. about rental property investing.
Pablo Gonzalez:Yeah, man. I think understanding this thing when I, when you and I first started this journey of the show and we were running every morning, which we don't do as much as I'd like to these days. Right. I've been missing you buddy. I've been missing you too, man. Just throwing it out there. That being said, I remember I would always go back to my buddy, Chris craft, who had like, just bought this property out in like Silicon Valley and Redwood city. And he owned it for a while. He injected a bunch of equity into it, right? Like he remodeled, but he was very active on it, managed it himself. And you know, I think two years later he wanted to get out of there because he was just like, man, you know, even with the cashflow that i'm getting, i'm not really keeping much of it at the end of the year. And then somebody moves out and I, you know, like at the end of the day, how much do I take home? And that to me Feels like he was misunderstanding this profit center. He was misunderstanding the part of this profit center where you get to you get to keep much more of the actual income, the rent that's coming in month after month, year over year. Then you actually ex that then you expect if you're doing this part correctly. And it's like you said, that's like that big, like spread of discount that you can take that that allows you to just like Keep that money and not have to pay that back. And you get to use that at your discretion to reinvest or do other things, right?
Gregg Cohen:Yeah, exactly. I mean, there are people out here that buy real estate that buy rental properties. I'm sure all of you have a friend or somebody you've talked to who've done this. Just simply buying it for the tax advantages. They're buying it just for the write off. There's people out there that have no clue that you can buy rental properties that produce positive cash flow. We are a special bunch here, that we understand this. So there's a whole segment of the population that is just fired up about buying real estate because their accountant told them, hey listen, go do it. And take the write offs, don't even worry about the cash flow. Now, we are educated here and we know that there's an even better way to do it, where you can get positive cash flow, but you still get all these write offs. And the write offs that you get as we go down this list of these four, not only help you write off the income that you're earning on this rental But there might be so many write offs that they might help offset other passive income that you have or other properties or other passive gains that you have. So, I can't understate, understate the tax savings component of it. Or I guess, I guess I could. I can't overstate how important the tax savings component of it is and that's why I love it. It's like, once you just understand you get over that fear and that annoyance of having to understand taxes and you start to see this and you just look at rental properties, you know, even if it doesn't appreciate, even if it doesn't provide cashflow, even if you didn't get principal pay down, wow, you're still winning. by all of these tax deductions. And of course, this is how the rich you know, build their wealth. They look at taxes first when they're making decisions. and, you know, obviously you want to be there just like those who have been successful or try to emulate those, or maybe a little bit ahead of us in terms of that success. Well, that's what the rich are doing.
Pablo Gonzalez:Love it. So GC. you mentioned write offs. I know that there is Two kinds of like different types of write offs, like some are things that you outlay and some are non cash ones, but like, let's, let's go down the line right now of these deductions. You put this slide together right now for us. So first one being the, oh, I guess the depreciation, you put depreciation deduction first. I did, and then I switched it up on you. The really sexy one, right? Depreciation deduction, expenses deductions, closing cost deductions, and then a big whammy of 2024 bonus depreciation that we're going to talk about these in order. I would say, let's start with the expenses deductions. These are kind of like the ones that are easiest to understand. This is kind of like that, that scene in Schitt's Creek where there's like, it's a write off. Right. And he's like buying all this stuff because he thinks he can deduct it, but it's things that he's spending money on. He can then like deduce off of the income side of it. Right. You want to explain that part?
Gregg Cohen:Yeah, I, I love that, that clip. There's a couple of clips out there. I, everybody wants write offs. Nobody really knows what a write off is. Right. So, That's funny, but you know, in what we're talking about here, write off just simply says, listen, I got a bunch of income coming in. How can I reduce that income so I'm only taxed on a small amount? And if I got to spend the money on something anyways, I want to make sure I offset the income, right? That's what a write off is. So there's ways that you go out there and spend money all the time, right? Like you spend money in your daily life on doing whatever you're doing. You can't just take that and write that off against your income, right? But how cool would it be if you can do things for rental properties like Pay the mortgage, like pay property taxes, pay insurance, pay property management fees, all of those things. And nobody wants to pay those things, but if you're going to pay them, have that offset the income that you're earning. That's the special thing that you just don't get in other asset classes and that we're fortunate to get. That's just standard. That's just baseline tax savings 101 when it comes to rental properties. And obviously there's a whole lot more.
Pablo Gonzalez:Got it. And for that, I want to, I want to hit on a couple of these questions. Mark Norman's asking, what parts of the closing costs are deductible? Is it kind of like the entire closing costs?
Gregg Cohen:Well, let's, we're going to do a little bit of a deep dive there, but I want to get to that one third if we can, Mark.
Pablo Gonzalez:Okay. All right. Perfect. Then Jag has a very good question here. Does depreciation get applied to W 2 income or in JWB's case, passive income? This is, this is only for passive income, right? Yes, and we should
Gregg Cohen:put the caveat out here that taxes are complicated for all of you. And I am not a CPA, and neither is Pablo, and we're not financial advisors. So I'm sure there's going to be a ton of questions that I'm going to do my best to answer, but know that I'm not a CPA and you probably should talk to one before taking this advice and doing something with it. This is not tax advice. But yes, there is active income and there's passive income. And when we are talking about your passive income. property portfolio. We are talking about passive gains and then there's passive losses. And so we're talking about expenses here would be written off against your passive gains. You may have the opportunity to have passive losses as well and still receive cash flow. So think about that one. That's fun. But this is not generally not for active. Gains and active losses. There's active income and there's passive. We're focusing primarily on passive here. Cause that's almost all of our JWB clients are using this on the passive.
Pablo Gonzalez:Got it. And when it comes to that type of stuff, do you see if I'm again, I'm not an account, I'm the furthest thing from an account that you could possibly find. I'm not a numbers guy, but when it comes to this passive side thing, the way that I understand it, it's Hey, yes, your rent and what your residents are paying in your JWB portfolio is part of passive. But let's say I have some kind of like short term lending note. I have some kind of like dividend stock out there. All of that is passive income. That's, that, that's coming in my way. And I'm able to like deduce that from that as a, that's a maybe no,
Gregg Cohen:you're trying to simplify it too much. So like, for example, private lending income cannot be reduced by. like these deductions that we're talking about. So is it passive or active? You know, it doesn't really matter, but that's taxed at a certain rate and you're not able to offset it with some of the guys we're talking about here. and there are some things that can be active. So that's where I'm going to just pause and say, guys, when we're starting to get into active and passive, and does this apply to that? Let's go and talk to a professional about that because it's going to be very specific to your situation. But everything that we talk about today is totally, totally applicable for the passive gains and passive losses. That's the lens that we're coming at here. And that's really, really substantial because if you just kind of section it off there, you can compare this against your other alternatives of where you're putting your passive money. like your investment decisions of where, where are you investing for your non active gains, right? Like your passive gains, you might be putting in the stock market, you might be putting in other places. Now you can compare apples to apples for tax advantages and return on investment specifically for your passive bucket of money.
Pablo Gonzalez:Love that. So about to move on into like a very special non tax outlay tax Tax benefit here, but real quick, Rich Sika and Eve's Richard Dole are kind of asking a similar question, but essentially Rich is asking, does JWB have preferred vendors or an internal team to assist with accounting for their passive income properties? And he's asking, do you have trusted CPAs that, that you recommend? So kind of like similar questions, right? Can you just talk about from the JWB standpoint, what you help with?
Gregg Cohen:Yeah, absolutely. Happy to make recommendations for you. We have a few that we think very highly of. And so I would just encourage you to reach out to your JWB portfolio manager, and we're happy to make a recommendation for you.
Pablo Gonzalez:All right. When you're buying into JWB, you're buying into the network too, right? Which really, really helps. All right, GC. So let's go into what you have here on this slide is number one, but we're doing as number two, but this one, this one gets sexy. The depreciation deduction. This is, you know, all of these expenses deductions where you got to put out a little cash first. And then because you put that out there, now you can deduct that from your taxes. This one's different, right?
Gregg Cohen:Yeah, yeah, these, these are just going to keep getting better and better as we go through one, two, three, and four. We just talked about standard 101 tax savings, which is writing off your expenses that are related to your rental property. Well, and in that one, you had to actually put the money out in order to write it off, right? We like the fact that If you have to put the money out, you get to write it off. Well, how cool would it be if you didn't have to actually put the money out, but you still got to write it off in that year. That's why I love the depreciation deduction. So what the IRS allows you to do is they say, listen, over time, we know that properties break. And the building will break at some point. And so the IRS came up with this number of years, over 27 and a half years. They say, listen, the building's going to depreciate over 27 and a half years. So they say, well, if that's going to happen, they're going to take the value of the building, they're going to divide it by 27 and a half years. And that is a write off for you each and every year of those 27 and a half years. And guys, that's thousands of dollars, five to ten thousand dollars, depending on the property, for the size of the write off. So what that means is if you're a JWB client and you've had properties for a while with us, let's say you have a portfolio of three properties, five properties, 10 properties, and you've, it's maybe you've owned it for three, five, 10 years, you're generating 5, 000 a year or 10, 000 of free cashflow a month of free cashflow, right? Well, now, When you are able to take that depreciation deduction, it's this beautiful thing where you're taking home this amount of money each and every single month, but when it comes time to pay the taxes, you're able to deduct the depreciation. And it becomes this scenario where you pay little or no taxes on those gains. And that's the beauty of the depreciation deduction.
Pablo Gonzalez:So basically this is, first of all, I think at first, when I first started learning about this, I was like depreciation, but I thought my asset appreciates, right? Like, Two different things, right? Like this is just depreciation when it comes to tax savings. And this has nothing to do with like the actual value of your pro of, of the overall property, as much as the materials of the home, right? Like you deduct the land cost out of it, the materials in the home, the IRS understands that there is a life cycle for those materials and allows you to just like say, Hey, in 27 years, this to me is kind of. As far as the IRS is worth nothing, even though to a homeowner, to anybody else that would buy the property, it is worth something. Cause like material replacement cost is kind of like your, your hedge against inflation. So it doesn't affect the price of your home. It is just facing, facing like the IRS. They say, okay. Take the cost of all this stuff divided by 27 and a half and every year you can subtract that without any extra cost, anything else. It's just a, like an inherent advantage that you can take this off and you know, keep that money away from Uncle Sam.
Gregg Cohen:Yes, absolutely. You create these wonderful experiences where you are earning positive cashflow, but when it comes time to pay the taxes, the earnings that you have are offset. by the depreciation. And you didn't have to spend any money on those materials. Like in the first year, you buy a new construction home with JWB, or a professionally renovated home with JWB, which is how we present them to clients. Well, you're not going to have thousands of dollars in the first year of real expenses. But you're able to depreciate the value of the building by 5, 000, 6, 000, 7, 000. And so this, this beautiful thing where you're receiving income, your bank account is getting larger from cashflow, but you're showing the government that you're able to write off the expense of depreciation. And so that's one beautiful thing. The second beautiful thing is you pointed out that this is not market value of the property we're talking about. Right? Market value of the property goes up in value. Like last year to this year, we're up about 5 percent for home prices in Jacksonville. Well, this year, JWB clients are taking the depreciation expense and writing that off against the income while their home is appreciating. So, two beautiful scenarios there where you're receiving income, where you're receiving wealth and equity, but you're not paying taxes on it. And that's what is in all of this is built in. None of this is the fun stuff that we're going to get into in a little bit. This is just built in. Rental property, investing tax savings, one on one.
Pablo Gonzalez:Are you saying you don't find this fun, Greg?
Gregg Cohen:He got me there. I do find it fun.
Pablo Gonzalez:No, but you bring up a good point. We're now about to talk about more time sensitive things, right? Like the, the topic of the show is why put it under, you know, why start this journey before November? And we're going to address that head on. We've got a couple of questions real quick, but. GC, I think as, as we're, before I get into these questions, we are going to talk about this idea of things that you want to get to before the end of this year in order to like qualify into it, these, these next two there, there's a real advantage into having the property. In your portfolio by the end of 2024, but the title of the show is why before November, do you want to just address that head on of like why we're pushing urgency right now and not just like, Hey, you know what, let's wait until Christmas break and then I can handle this thing.
Gregg Cohen:Yeah, absolutely. So, the way that you take advantage of these next two that I'm going to share with you is you have to own the property by December 31st of this year. And it takes generally about 30 to 45 days to close on a property once you put it under contract. But guys, it's about to be the holidays and things takes a lot longer when it comes to banks around the holidays. So it's very normal for properties to close in 60 days. from the time that you put them under contract. And so that's why this is appropriately titled that if you want to take advantage of these tax savings, these special ones that I'm going to share with you here, in addition to those ones that I just shared, you're still getting those. But if you want to take advantage of the special ones, you have to put the property under contract now, early November, right? To give yourself the time to take advantage of them so that you can close by December 31st of this year.
Pablo Gonzalez:Awesome. All right. You see, so let's, let's hit a couple of these questions real quick to get over the, the depreciation topping and dive into these time sensitive ones. But, Lana, Camille, who I believe is a new name. Welcome Lana. It always takes courage to add questions to the, to the chat, but it's been rewarded because she's got some really great, great answers already in the chat. She's asking is depreciation deduction useful only if you are a real estate professional and she's getting a lot of these, a lot of these questions. Questions answered in the chat, essentially saying no real estate professionals, they have their own qualification. They, you know, it's like an enhanced kind of like thing for them. But for all of us, all passive rental property investors like myself, like many of the folks in the chat that are answering this depreciation allows us to keep more of our rental income in our pocket so that we can reinvest it, use it to pay off bills, do a bunch of different things. Would you add anything to that? Do you see?
Gregg Cohen:It only gets better if you qualify for real estate professional status, but that's a high threshold to get to. So not many JWB clients are that. Uh, but it only gets better if you're a real estate professional. Everything we're talking about right here is for you, a non real estate professional to take advantage of and built into the, to the, to the tax code.
Pablo Gonzalez:Got it. Quick question by HSTN. HS. Good to have you back. There are no taxes slash deductions in the SDIRA owning rentals, right?
Gregg Cohen:Well, that's an interesting question. Okay. So when you invest SDIRA stands for self directed IRA. So what, what HS, HS is, asking about is if you're buying properties in your retirement accounts, do you get, still get these? Deductions. Well, we have to look at it from big picture. If you're buying it in a retirement account, either a traditional or a Roth account, you are getting either tax deferred status or tax free growth. So you are already getting to the finish line of maximum tax savings if you are deferring or if it's tax free growth. So you're already there. So the answer is, You're already there, but a more specific answer is you don't get to double dip. You don't get to get already there with the purchases and then also get extra deductions for other passive income. You're just already there. So a great thing to do from a tax savings perspective is to buy properties in a self directed retirement account.
Pablo Gonzalez:Got it. So there is tax savings. It's just these ones have already basically been applied. You're already, you know, you're already getting, or they're different benefits.
Gregg Cohen:It's like everything I'm talking about.
Pablo Gonzalez:Yeah.
Gregg Cohen:Buying it outside of your retirement account is to try to get to like maximum tax deferred status. And you're already there when you buy
Pablo Gonzalez:it. Got it. So maybe we should add a fifth one of like buying in your retirement account is another is another way, but that one doesn't necessarily qualify to why now. Right. So that's, that's another reason why it's not on the show. We have a great question here from I'm not sure who sent this in from the text, not your average guest. How long does Greg recommend holding onto a rental if all is going well? Does he recommend selling once depreciation benefit is negligible or completed at 27 years or longer? Or does it depend on overall returns from that rental?
Gregg Cohen:The great question. I think that's why you got to have a resource here to help you. make those decisions. And that's what we love to do. So I would certainly encourage you to reach out to the team and to start to put your plan together. But let's, let's have some fun and fast forward, you know, 27 and a half years down, down the road, you got to think about it. So after 27 and a half years, your tax savings would have been fully depreciated. meaning you don't get those extra tax savings benefits after that point. So you might say, well, maybe that's time to sell my property and then invest in a new one or whatnot. And if you're only looking at it from the tax savings lens, you would be correct. But you got to look big picture. That's what my team is here to help you do, is to look big picture. Because if you're 27 and a half years down the road, So, you are, your loan is almost all paid off or may already be paid off and your cash flow is about to go bananas, right? Your cash flow probably is already bananas to a certain degree, but then you're not going to have the mortgage payment. And it's going to
Pablo Gonzalez:increase by like a thousand plus per month.
Gregg Cohen:Yeah, exactly. Right. And all along the way, your cash flow would have been gaining because your rents are going up with the majority of your expenses staying the same. So you're gaining. So. You're 25, you're 26, you're 27, even while you still may have the mortgage in place, you still have significant positive cash flow. And if you compare that to other investment options at that time, you're probably not going to be able to get that type of cash on cash return. And then, oh, by the way, the mortgage payment goes away and it gets even higher by a thousand or fifteen hundred bucks. So a lot of this is like, what's the right thing for you at that moment and surrounding yourself with a team that can help you navigate that and looking at it holistically, not just one profit center. So we'd love the opportunity to help you do that.
Pablo Gonzalez:Great answer GC. And last but not least, Mark Norman asks, if the property depreciates over time, then why is there any depreciation recapture after 27. 5 years since it's depreciated to nothing?
Gregg Cohen:Mark, great question. And that's a good point to make too. You know, we talked about how the goal here really We're not avoiding taxes by using these tax advantages. We're deferring taxes. They do need to be paid at some point. You know, why does the government make us pay the taxes? Well, I think it's a significant part of the, the revenue for the government. You know, it'd be nice if they never made us pay the taxes. But what they do is, we're allowed to defer our taxes in essence by deferring them. taking advantage of the depreciation deduction. And then when you go to sell the property, if you don't employ some of the strategies that we also talk about on this show, like a 1031 exchange or other things, eventually you are going to recapture the depreciation. But here's the best part. Even knowing that you are going to pay the taxes on the, the depreciation recapture at some point, you're paying it at a lower tax rate. Because, if you were going to be taxed on it today, rental income would be taxed at your tax bracket, which I'm assuming is higher than 20% ish, which is what capital gains is. Once you recapture and pay the taxes later on at the time of sale, assuming it's over one year, you're now paying capital gains rate. So you're making money there. You're paying less taxes simply by paying a lower tax rate after holding onto the property for at least a year, so you win. Okay. Love it.
Pablo Gonzalez:Love to win. All right, GC, let's move on to these very nuanced, very attractive ones that may want to make you go ahead and text Tiara 904 922 930 341 to start your journey. But number three here you got is closing cost deductions. Talk to me about that, GC.
Gregg Cohen:Yeah. So this is one that is standard every single year. Right. This isn't anything new for this year, but it's really powerful because everything I've described up until this point is important because the sooner you start, you get to take advantage of these expense deductions, depreciation deductions, but there's not an inherent advantage for closing on December 31st of this year versus January 1st of next year, because the effect is prorated based on the days that you own the asset. So, super important for depreciation and expenses, but if you close on January 1st, you're still going to get prorated days for the next year. You just have to wait until you file the taxes. But when it comes to closing costs, some parts of closing costs are fully able to be written off in the year that you close. So if you close on December 31st, when it comes to closing costs and some of these closing costs, not all, but some of these closing costs, you're able to write off those thousands of dollars this year, just by closing on December 31st or before, whereas you, if you wait until January 1st, you don't get to write that off. When you come and pay your 2024 taxes and that can account again to thousands of dollars either on this individual rental property or maybe other passive gains that you have. So a real advantage to write off thousands of dollars specifically this year, just by closing, you know, by the end of this year.
Pablo Gonzalez:So if I'm getting this right, GC, it's essentially, if you can close by the end of this year, you get to take basically an entire year's worth of benefit and compress it into a very, very small amount of time. And it's going to hit you much sooner on your tax return. And you know, like, as opposed to, I dunno, you didn't get this thing started before like Halloween, all of a sudden it bleeds into January 3rd. And now like this benefit that you could have gotten compressed into like one moment and had it in your pocket in like three months, all of a sudden now you're waiting another 16 months and it gets like, Spread out a lot, a lot more instead of having this like benefit of like having it all and you ready to like reinvest that money, or do special things with it that you can take advantage of that right now. It's kind of that, that the big one. Okay. Got it. So again, that's one of the big reasons why we're saying this stuff takes some time. You need to have it in when holidays happen, everybody kind of slows down, JWB keeps chugging, but like there's a lot of moving parts of like inspectors and mortgage lenders and bankers and all this type of stuff that, you know, like if you want to, you don't want to be at the risk of them taking a vacation day and you missing it by like 24 hours. So this stuff happens, right?
Gregg Cohen:A hundred percent. I see it every year. Folks that want to close by the end of December, they put their properties under contract, I don't know, sometime in November. We are working as hard as we possibly can, but the bank has the money for you. And you know, banks take bank holidays. So don't get caught up in that. If this is something that you've been thinking about and you know that you need to have those conversations, get on the phone with the team now so we can start to maximize this from a taxed savings perspective for you.
Pablo Gonzalez:Love that. All right. So there's one more to go. There's a couple of questions though, when it comes to the, these closing costs, Mark Norman asking what parts of the closing costs are deductible. Did you hit that in that first explanation?
Gregg Cohen:I did not. so I'm looking at my notes here again, talk to your CPA, cause I'm not the authority here, but I did a little bit of research. So mortgage interest paid a closing. A real estate property tax is paid at closing, some examples of things that can be written off. And, you know, when you actually close on the property, they escrow multiple months of these expenses. So, you might have to escrow three months or six months or a year of insurance or property taxes. That's what the lender may require. So, those are thousands of dollars that add up and can be written off fully in this year just by closing by the end of the year.
Pablo Gonzalez:Love that. And Anonymous Attendee is asking, are closing cost deductions for W 2 or still passive? Right? Like I think we're so used to thinking like when you buy your home, your closing costs get deducted. I'm super looking forward that for this one since I bought my primary residence this year. Do those closing costs affect the W 2 or is this still going all in the passive side for when it comes to the rental property?
Gregg Cohen:Well, so you have extra special things that you get to write off. for your primary residence. I'm specifically talking just about investment properties right here. In the investment property lens, you are able to write off closing costs, all of them. It just depends how quickly can you write them off, meaning can you write off the full cost of them immediately the day that you close, or do you have to wait a long period of time to write them off? We want them to be written off immediately so that we can save tax dollars today. And so, like I mentioned, you know, mortgage interest. Real estate taxes, those can be written off immediately. Other things have to be like amortized. Let me check my notes here. So, other closing costs have to be added to the property's basis, which means that you can't write them off in the beginning, right off the bat. So, this would be things like title insurance or recording fees. Some things have to be amortized over the life of a loan, like loan origination fees, things of that nature. So, all of it, yes, is written off. But there's a small section that is written off fully. The day that you close, you're eligible to write that off in that year. Some of the time you have to wait a little bit longer to get the benefit.
Pablo Gonzalez:All right, GC, now let's go on to, I think what's the most interesting one right now based on a couple of things we discussed ahead of the show, 2024 bonus depreciation GC. Why is this in all caps, asterix and bolded on this slide here?
Gregg Cohen:I don't know who let some marketers Into the tax cuts and job act room as they were coming up with this or in the IRS, but they call it bonus depreciation. I'm like, man, I've done a ton of webinars and we usually put at the bottom, we put bonus. So yeah, we got some bonus depreciation straight off the press from the IRS. So this is a result of the, of the tax. Cuts and Jobs Act back when, I don't know, what, 2017? And what it called for is that you can take bonus depreciation on some qualified improvements. And these would be things that otherwise you would have to wait a long time to get the effect of the write off, they would have to be added to your basis, which means that you capitalize them, which means that you just don't get to write them off in the first year. But what the tax cuts and job act allowed you to do is to take certain qualified expenses for rental properties and say, you know what, instead of writing them off over many, many years, 20 years ish, somewhere around there, well, we're going to allow you to write them all off. in the first year or a percentage of them in the first year. And guys, this is a big reason why you're seeing a lot of, again, really rich and savvy folks make some big buying decisions. I know that. There are folks that are out there buying planes because they could write off the expense fully in year one due to some of this. you know, some of the tax cuts and jobs act. So people are making big decisions out there about spending lots of dollars. And it's because Again, I talked about how the rich look at their, you know, decisions when it comes to investing their money. They're looking at taxes first, right off the bat. And you know, obviously we're not talking about buying planes here, but what we're talking about is taking some of these expenses that typically would be written off over a very long period of time. And you're able to write them off fully in the first year, or at a graduated basis, you're able to write off either 80%, 60%, 40%, 20 percent resulting in tens of thousands of dollars of tax savings, or even more than that, depending on the size of the rental property portfolio you have.
Pablo Gonzalez:What excites me the most about this GC is kind of like what we were just talking about right before the show. It's that this, this idea of bonus depreciation versus with like all this, like with the cashflow that you make in year one is particularly accelerated for JWB investors right now because you have these incentives happening where you get this like maintenance credit, you get these like, closing bonus stuff and, you know, Because there is this like rare incentive from JWB that actually qualifies as extra cashflow that's going to happen on year one. This bonus depreciation affects that and therefore you can basically like you're, you're getting double your money and kind of like, can you, can you explain what we, what, what we uncovered before the call that I thought was really interesting?
Gregg Cohen:Well, I know where you're going. We're kind of connecting two dots here that we probably, it's probably not the best connection of the dots. So what you're talking about is JWB has some incentives right now that literally put cash into your pocket, with your purchases. So in this year, You're going to actually receive cash in your pocket. And that's that either 4, 000 to 6, 000 of maintenance credits that we offer on the properties. We're still offering that as an incentive. And so that is delivered to you as cash in your pocket. That's that's taxable income in your pocket in year one. Now the beautiful thing is if we go back to the closing cost conversation. Right? You're able to fully write off some of your closing costs in the year that you incurred them. So let's say that you earn 5, 000 of that maintenance credit that would show up as taxable income. Well, guess what? You might have 5, 000 of closing costs if you close before January, excuse me, before December 31st on or before, and that could fully offset. the taxable impact of that maintenance credit that you would have earned as this one time incentive that JWB is offering. So it's actually more applicable to the closing costs deductions that you get. This bonus depreciation is, is powerful in its own right, but that's probably not something that's going to help you offset that maintenance credit just simply because this is talking about capital improvements, not necessarily And when you buy a JWB rental property, you're not going to have a capital improvement day one. You're buying it as a brand new construction home or a professionally renovated home. So you're going to wait a little bit of time on the bonus depreciation, but on the closing costs. expenses you closed on or before December 31st, you can write that off in 2024.
Pablo Gonzalez:Got it. So basically these like four tax savings things work together to cook, to cook up like a pie, right? Like the incentive piece from JWB of these like maintenance credit, that is, you know, Accelerated by being able to take off your closing, not accelerated, right? But you get to keep more in your pocket by being able to write off your closing costs this year. That goes a lot faster if you're doing it at the end of the year, because now you can just take that benefit all in all in one piece after, you know, without having to own it all year long, you qualify for this bonus depreciation piece, which right now is at 80%. Next year is going to go a little lower. Next year is going to go a little lower, but like the sooner you start the clock, the more you're going to be able to take advantage of that piece. And then there is. The big picture of, the write offs that you get to do whenever you do anything for the property or spend on the property insurance, blah, blah, blah. Maybe even take a vacation to Jacksonville to come see the properties. You can write that off if you're doing that correctly. And plus the depreciation that you get to amortize over the 27 and a half years that also allow you to keep more in your pocket. It all works in concert. So it's not just like one thing, but they all. They all kind of like focus like a magnifying glass at the end of the year, because the sooner you get in, the quicker that all this stuff starts working in your favor as well.
Gregg Cohen:Yeah, absolutely. And the time sensitive ones are the last two. So we talked about the closing cost, but let me just talk a little bit about from the JWB client lens, how this bonus depreciation is going to help you. So the way that this thing is set up is that in 2023, 100 percent of the qualified expenses could be written off in that year. What that means is if you owned a property, And it had a qualified expense and some examples of qualified expenses might be landscaping or fire protection and alarm systems, some renovations, flooring, maybe some of the mechanicals. So, you know, if you owned a property before 2023. Or if you bought it in 2023 from somebody else, and then you incurred that expense for some of those big ticket items, you would be able to write off 100 percent of that in 2023. Well, it's not 2023 anymore. 2024, that goes down to 80%. 2025, it will go down to 60% And so on and so forth until it gets to 0%. Once it gets to 0%, it's like the way it always was before, which still three of the four huge tax savings that we were talking about, but you just don't get this extra bonus once that happens. So from the JWB lens, the reason why it's important to close on the property as soon as possible is because You know, at some point you are going to have some of those expenses that would qualify under bonus depreciation for your JWB rental property. I don't know when it's going to be, but it's not going to be when you buy the property. And so you're kind of like starting the clock. None of us want to have those expenses, but if you buy the property now, And then it's professionally managed like it is at some point. Maybe it is in year three, maybe it's in year four, whenever it is, we want to give ourselves the best chance to write off using this bonus depreciation to maximize their tax savings at that time at that time. And that's why it's so important to take advantage of bonus depreciation. And close soon because you have the opportunity to take advantage of it if and when it comes down the pipe.
Pablo Gonzalez:Got it. So I think that answers Mark Norman's question of bonus appreciation being phased out and it's only 60 percent this year, right? It's 80 percent this year. It's starting to get phased out next year. It'll be 60%, but the sooner that you get in, the more you can take advantage of it. Mitsuka, Xantus has a question. Does this tax advantage apply when you have done a seller financing approach to buying real estate?
Gregg Cohen:Seller financing is just a part of the financing. You own the property so, well, I don't know which part of the seller financing transaction you are. If you own the property, meaning you bought it with seller financing, then yes, it would apply to you. If you sold it on seller financing and you don't own it anymore, it's just based on when you own it.
Pablo Gonzalez:Got it. And shout out to the Shana and Nadim who's telling Mitsuka put the question in the Q and a, so it doesn't get missed. I happen to see this. I wanted to challenge myself reading that name Mitsuka. I hope that I got it right. So, but yes, if you guys can help me and put the questions in the Q and a, it's easier for me to follow along. David Viva has a question. If you do a 10 30, it says 10 35 exchange, I assume it's a 10 31 exchange. Will the 27 and a half year depreciation restart? Okay.
Gregg Cohen:no, if you, I'm not sure if I fully understand the question, but if you're talking about if you buy the property with a 1031 wait a second. If you buy the property as a part of the 1031 exchange, then yes, you have the opportunity to depreciate the asset. So the answer is yes. it's anytime you purchase a property, you are able to straight line depreciate the value of the building by 27 and a half years.
Pablo Gonzalez:So, at any point, at that point, the 27 and a half starts. Mm hmm. Okay. Sounds good. There you go, David. Except if you buy it in
Gregg Cohen:a
Pablo Gonzalez:retirement account. Except if you buy it in a retirement account. Anonymous attendee, all the way from France, says, Does that mean I need to itemize instead of standard deduction? Because TurboTax is making me do standard deduction.
Gregg Cohen:Standard deductions are things that I've just talked about here. So, you know, we're not talking about getting super aggressive. There are ways to even go farther than this. you know, but everything we're talking about is just standard. However, what I would suggest is working with a team that can make it easy for you. And that's what our team does. So, you know, JWB clients here, we're talking about tax savings. But, you know, for any JWB clients, they just get a Schedule E at the end of the year. They give it right to their CPA or they do their taxes themselves. so that would be one thing that would probably really help you. Otherwise, this stuff should be super simple. Just straight line depreciation. Obviously, I'm not a CPA, so I'm not advising on how to do your taxes. But, you don't have to get real creative with this.
Pablo Gonzalez:Can you talk about that, the Schedule E part GCI, you know, like I've, I've been through this a couple of times, but like the asset of having JWB as your property manager, by doing this with JWB, the pain that you take away from like doing your taxes because you have this vertically integrated approach that helps you out.
Gregg Cohen:Yeah, we, you know, we're, you're a vertically integrated provider. So we stand at the intersection of all the money that comes to you and the money that comes from you. If you have expenses that come as a part of owning the property. We have that record and if you have income, we also have that record. So at the end of the year, we take our information, which is your information, when it comes to this rental property and we just prepare the document, the tax document, for you. It's called a Schedule E. It's available for you. And you take that, it's got everything you need to go ahead and either do your own taxes or hand it to your professional. So super easy. It's able to take tax time, which is normally a stressful time for many folks, especially for folks when it comes to real estate. And it turns it into just another day.
Pablo Gonzalez:There you go. And shout out to Drew Barnhill, who's been in the chat this entire time giving, you know, he's a, he's an accountant himself, right? So he's just been giving a whole bunch of like explanations and whatnot. This has actually been like a, a world class. If you don't join us live, you're missing out because there's been tons of advice being given out in the chat, just like happening as it goes. I'm just trying to keep track of the conversation, but I see a lot of, a lot of our community members here adding a ton of value real quick. Do you see Mark Norman says, I just double checked online. I believe it was 80 percent in 2023, 60 percent in 2024 and 40 percent in 2025. So Mark
Gregg Cohen:might be right. I'm pretty sure it's 80 percent this year, but whatever it is, that advantage is still there.
Pablo Gonzalez:So GC land the plane, buddy. So reasons like the tax advantages of buying rental properties before November, 2024, can you do it in under two minutes?
Gregg Cohen:Yes. Tax advantages are the clearest, simplest way to improve your cashflow, improve your overall return on investment. You don't have to wait on. A market to grow at a certain rate. You don't have to have the most incredible property management. You just simply buy an asset that has tax advantages and you hold on to it. And that's why the rich focus on tax savings as a part, a primary part of their investment plan. And the beautiful thing about rental properties is you get those same tax advantages and it's just built into this asset class. So it's something that a little bit of thought and care and understanding can go so far for you after holding onto this asset for a full market cycle. And we love to help folks do that. So if this is something you're interested in, reach out to Tiara at JWB. Of course you can get these slides, but if you want to set up a phone call and have a more detailed conversation about this, text her 904 293 0341. She's a wonderful resource for you.
Pablo Gonzalez:just an example of the resources in this slide. We have a question here from a not your average guest saying how much our rental properties work and we find the deals. You can actually, there's a good breakdown of that right now, right? Like there is this talks about kind of right now investment, investment sizes are 50 to 75 K estimated IRR of like 10 to 11%. Is this all still pretty current GC?
Gregg Cohen:Absolutely.
Pablo Gonzalez:and at the end of the day, where, how much are the rental properties? Somewhere between like 200 to 2 75 is, is, is the range you see, right? Like those are where the, that's where the workforce housing in Jacksonville stock is right now. The JWB offers where you find the deals you reach out to JW B, they bring these two market. already functioning, already cash flowing before you buy them, whether they build it to rent or they've, they acquired something, remodeled it and put a new resident in there. So the answer is everything that you need in this companion guide that you, that you can reach out to the team with, or you can just simply go to chat with JWB. com. It's book a time to talk to the team and they can walk you through the whole process. How'd I do their GC. Wonderful buddy. All right. I want to just shout out to the community, man. Today is a Tuesday, middle of the day. We had over a hundred people here. I would say 70 of them were active in the chat, giving each other advice, asking great questions. It never goes unnoticed that you do this. It never goes unnoticed when new folks show up and they're brave enough to like say their name in the roll call. Ask a question. We've all been there before. We're a very welcoming community. So we hope that you make a habit of coming here, using this show as a resource, you know, like being a part of the community and just getting involved, right? Like we're, we're, we're pretty soon about to announce the dates for the annual, not your average investor summit. I know that GC has that. On my head right now thinking about like, what are we going to do? And like, how quickly can we announce the dates here? So like, stay tuned for our annual gathering of over a hundred folks that gather here in Jacksonville. Dare I say, maybe this year we'll do over 200 folks that gather here in Jacksonville. We'll see. We'll see. Yeah. And yeah, man, great job explaining this stuff. I know that you get excited about it. I know it's not easy, but, the more I listen to you talking about this GC, the more I understand it. There's one final question here from not your average guest. What are the current JWB incentives that we have been teasing?
Gregg Cohen:Yes, absolutely. So there is that maintenance credit that we were just talking about. So that will come out to between four to 6, 000 per property. no limit to the number of properties. So we had two clients that purchased three properties to start out with last week, and they each received between four to 6, 000 times three. And that's, that is a cash incentive as well. So that's always there for you no matter the number of properties that you purchase. And when I say always, I mean, it's not always going to be there in the future. It is right here for you no matter how many properties you purchase. The other one that is also, there is a. Repeat client bonus and excuse me, not a repeat client bonus, a bundle bonus. We are, we are the MVBs, the most valuable bundlers, just like Patrick Mahomes and Travis Kelsey. So, yes, when you purchase three properties or more, we have a special incentive and I would just encourage you to reach out to the team to talk about that incentive for three purchases or more or bundles as we like to call them here at JWB.
Pablo Gonzalez:Love it, buddy. Next week we are, we're going to have a surprise guest investor. So stay tuned for, for, for that one. And don't forget that if you want to lock these properties in before the end of the year, you don't want to fall prey to bank holidays and your, Mortgage broker going on vacation for Thanksgiving and like missing a deadline and all of a sudden just having like in a 24 hour time span. Now you got to wait a whole year plus for these benefits and maybe have them be reduced. So make sure that you get your journey started. Easiest way. Just text 904 293 0341 or go to chatwithjwb. com and you just pick out a time there and you hop on at your leisure. But in between now and then GC. Any advice for the not your average investor community.
Gregg Cohen:Don't be average. See everybody.
Pablo Gonzalez:No, be average. See you next week.