Episode 334
Key Takeaways:
Passive Income Strategy:
Start with an active, high-value deal that forces appreciation
Use a 1031 exchange to roll gains into a passive, cash-flowing investment
Avoid getting stuck in low-return properties
Specific Example (Buena Vista Deal):
Bought land for $618,000
Rezoned from 11 to 63 units
Sold for $1.575 million
Used 1031 exchange to invest in a self-storage facility
Investment Approach:
Step 1: Take on an active deal
Step 2: Force appreciation and exit
Step 3: 1031 exchange into a passive investment
Step 4: Repeat the process
Key Principles:
Build wealth through strategic deal sequencing
Focus on creating serious equity
Move from working for money to having money work for you
Aim for scalable, long-term investments
Outcome:
Transformed a land deal into a self-storage facility
Generating $15,000 monthly passive income per partner
Avoided immediate tax liability through 1031 exchange
Published on 2 weeks ago
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