100K after 5 years became about 230K. 30K of passive income that was essentially tax free because of the offset from the depreciation of the property and the assets within the property that depreciate at a significantly faster rate than the rental property.
And then with all the improvements made to the property and the increase in rent that the substantial improvement could garner, selling the revamped property nets roughly double the initial investment, which if put into a new property within 90 days also incurs no tax for the transaction.
But I am also not even accounting for investing any of that income. Just with the roughly doubling every roughly 5 years, 100K in ownership stake can become 1.6M after 25 years. I started with 100K and already had a property that sold, and then did it again, and it's currently invested as a roughly $400K stake 11 years after I started with a yearly income of around 24K on the 3rd property that I am now invested in and so far things seem on track as normal.
Multi-family, so apartment complexes. The deals are for tens of millions of dollars, and you can usually join in for as little as 75K.
But you either need to be an accredited investor, or know one of the managers of the deal before the deal is set and they let you join. They are typically allowed to bring in a certain percentage of the deal from non-accredited investors that they know.
What's nice is once you go through a full deal cycle usually 5-6 years, and they sell, you become an accredited investor for having gone through that and that makes it much easier to find and join another deal without having to know the managing partners personally beforehand.
Like one of the deals I am in is primarily managed by this guy. And he has a very large personal stake of several million.
He's got way more money on the line than me in the deal, and so he cares very much about making the property successful for himself and selling at the right time etc and I am really just along for the ride essentially.
Here is one of the other main managing partners of another deal I am invested with.
100K after 5 years became about 230K. 30K of passive income that was essentially tax free because of the offset from the depreciation of the property and the assets within the property that depreciate at a significantly faster rate than the rental property.
And then with all the improvements made to the property and the increase in rent that the substantial improvement could garner, selling the revamped property nets roughly double the initial investment, which if put into a new property within 90 days also incurs no tax for the transaction.
But I am also not even accounting for investing any of that income. Just with the roughly doubling every roughly 5 years, 100K in ownership stake can become 1.6M after 25 years. I started with 100K and already had a property that sold, and then did it again, and it's currently invested as a roughly $400K stake 11 years after I started with a yearly income of around 24K on the 3rd property that I am now invested in and so far things seem on track as normal.