#04: Cost Segregation Made Easy for Multifamily Investors with James Liechty
May 06, 2019
As a real estate investor, you're always looking for ways to save money and generate more cash flow. Today's guest, James Liechty will walk you through how he helps his clients use cost segregation to save millions.
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Cost Segregation Made Easy for Multifamily Investors
To start, you may be asking yourself what cost segregation is. Cost segregation in the simplest terms is the acceleration of depreciation. Accelerated depreciation is good because it helps you pay a lesser tax to the IRS. It makes sense to do a cost segregation when you can make additional deductions. However, when you're a passive investor your deductions are limited.
When does it make sense to do a cost segregation? It makes sense If you are going to hold a property for five years or if you have a large property such as an office or industrial building with a purchase price of over $1 Million.
With a cost segregation, you are moving your deduction from year 27 to year 1. By moving your deduction from year 27 to year 1, your ROI can be 10-100x.
As soon as you have a property under contract, you should do a cost segregation. You should also consider a lookback study to get a look at the overall picture.
The cost of a cost segregation varies on property and information. A $1 million property can be as low as $3,000 to $4,000 to do a cost segregation.
Connect with James:
Call James: 703-217-2179
Email: [email protected]
Links mentioned in the show:
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