Unlock the Power of Tax Reduction Through CRE Syndication with Eddie Austin

He spent his early years in South Florida and Southern Indiana. Numerous role models, mentors, and business experiences helped him to understand the importance of recognizing profit opportunities in changing markets. He has developed a bold, visionary idea for a new type of real estate company that will use changes in the home real estate market and an innovative capital structure to drive profitability and aggressive growth. Eddie’s main focus is to build companies with better relationships. In this he is building businesses that give back in offer great returns to investors, EddieBelieves in doing the things that give you chills through hard work, excitement, and interactions.

Episode Highlights Here:

Eddie:

It was up for sale for $200,000. And they spent $400,000. They pretty well just overpaid and it wasn’t a situation that was a bidding war. They just needed to get rid of that much money.

Brett:

Let’s move right into the topic at hand. So help us to unlock the power of tax reductions through commercial real estate syndication Eddie, what’s the number one secret to doing that?

Eddie:

So short story before we get into this. And I think this, brings it all into focus. So we’ve recently had a guy coming to the office wanting to do some other business ventures, and he’s telling me about a group of people that own a lot of gas stations and own a lot of ATMs. So they’re kind of in real estate in a different manner. Or they made a bunch of money last year, and they got with their internal accountant. And their internal accountant says, hey, you need to go buy something, you need to go get rid of some of this money because this is going to be a capital gains on your part. So they did so. And what they did was they went out and bought a tower that was dilapidated, collapsing, it was up for sale for $200,000. And they spent $400,000, they pretty well just overpaid. And it wasn’t a situation that was a bidding war, they just needed to get rid of that much money. So they just, you know, bought $400,000 worth of a real estate. And for me, that really hit home because I said, Man, you know, they bought a heavy liability, it is real estate, but it’s a liability at the same time, they could have got a hold of us, and we could invest that into a cash flowing property, they still would reduce their capital gains, they probably could even get bonus depreciation. And they would have owned something that was worth owning, and they don’t have to put work into and they got a check every single month off the preferred return. So that story just kind of hit me in the last couple of days. And that kind of provoked me to say, why don’t people know more about what we do, because that would have been the perfect opportunity. That’s what we look for, you know, we look for people that are so busy, or maybe lack the education of where to put their money. And we’re here to help with that.

Brett:

Amazing. So it’s a concept or a case study for tax fo, not just cash flow, although it should have been cash flow and tax flow. But basically, these guys are selling they have this big old you know gain and they’re like gosh, the town saying you need to go buy something to me do some cost segregation accelerated depreciation so you can offset it in the same year. That’s a fancy way of saying just you gotta buy some something that’s going to help you tax flow to offset your cash flow and or your capital gains tax. And they buy something for $200,000 more than it’s even worth. And there’s not even a bidding war, just to get some tax stuff. It’s crazy to think about that. But that’s what’s happening, let alone all the liabilities on their shoulders where they could have shown up and talked with Eddie having known Eddie, and said Eddie, we got some cash