03/16/2025
Learning the Gator Method with Pace Morby. I learned yesterday during the course that the Life Span of a house is 27.5 yrs.
The IRS 5% Depreciation for 1 year equals Ex: 400,000 divided by 27.5 = $14,545.454. If I Lend the $14,545, I do not have to pay taxes to the IRS on that money. I can pull out $14,545 every year for 27.5 years! Lend or Go buy more houses...Huh Life is Good!
"The IRS will allow you to take 7 years up front in the First year of your profitable Rental! What? Do the Math, this is why Rich People keep getting richer. $14,545 x 7 years = $101,000.00 As a Gator I can make $101,000.00 in 1 year Tax Free! The $101,000 and your Income balance each other out at end of the year, you owe ‘$0’. A Gator can now leverage (balance the scale by buying more real estate or lending their money. The Tax Advisor tells you, you now have to go buy more Real Estate because you made too much money this year, GO BUY MORE REAL ESTATE TO BALANCE THE SCALES. WHAT? This is good stuff!
