599: The Investing “Cheat Code” of Opportunity Zone Rentals

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 21 April 2022

⏱️ 69 minutes

🔗️ Recording | iTunes | RSS

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Summary

Opportunity zone investing hasn’t always been around for real estate investors to take advantage of. But as the government began upping the incentives around this type of real estate investing, more tax-savvy investors started to pay attention. You may have heard of opportunity zones before, but you probably don’t know how much of a heavy hitter they are in the realm of tax reduction. Someone who does know about opportunity zone investing is King Malaki Sims—CPA and avid real estate investor. He’s been buying and building homes in opportunity zones for years and makes the case that this type of investing truly is the best real estate “cheat code” out there. Through his simple strategy, Malaki has been able to not only defer taxes but in some cases, eliminate them entirely, just through simple, smart real estate investing. Malaki shares how even a novice real estate investor can find, fund, finish, and furnish an opportunity zone rental property all while keeping Uncle Sam away from their hard-earned profits. If you want to build wealth without having to worry about 1031-ing your properties, Malaki is the man to listen to. In This Episode We Cover: Opportunity zones explained and how new investors can start investing in them Where to find opportunity zones in your local area (no matter where you live!) Funding opportunity zone investments with little to no money down The biggest opportunity zone myths that scare away investors far too early Depreciation, bonus depreciation, and tax-deferral strategies you can take advantage of How crypto, stock, and other investors can invest in real estate tax-free And So Much More! Links from the Show: BiggerPockets Website BiggerPockets Bookstore BiggerPockets Forums BiggerPockets Podcast Episode 569: Rich Dad’s CPA Shares 5 Steps to Eliminate Income Taxes through Real Estate w/Tom Wheelwright Robert Kiyosaki's Official Website Donald Trump's Official Website California Opportunity Zone Website Cryptocurrency Rob’s TikTok Profile Rob’s Instagram Rob’s Youtube Channel David’s Instagram David’s Tiktok Profile Connect with King Malaki: King Malaki's Instagram King Malaki's Clubhouse Check the full show notes here: https://www.biggerpockets.com/blog/real-estate-599 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the bigger pockets podcast show 599.
0:05.0	In my opinion, the opportunity zone law is the ultimate cheat code.
0:09.5	It's the best piece of tax legislation that I've ever seen in my 20 year career in my life.
0:15.4	I don't think you'll find anything better.
0:17.6	Most tax benefits deal with the deferral of taxes.
0:21.3	So, 401ks, 1031 exchanges, IRAs, all of that stuff.
0:26.2	They ultimately kick the can down the road.
0:28.3	At some point, when you want to exit, you owe the government some money.
0:32.6	The opportunity zone laws, the only thing I've ever seen where at some point, you don't
0:36.9	have to pay capital gains and you can sell your property and walk away tax-free and also
0:43.7	not pay depreciation recapture.
0:46.0	All you have to do in exchange is build in the area, build a rehab in an area that the
0:51.3	government wants you to invest in and hold it for 10 years.
1:02.3	What's going on, everyone?
1:03.3	It's David Green, your host of the bigger pockets real estate podcast.
1:07.0	If you're here for the first time, first off, welcome, second off, you hit the jackpot.
1:11.6	Because this is the best real estate podcast in the entire world.
1:15.0	At bigger pockets, we believe in helping people achieve financial freedom through real estate.
1:19.8	This is a community of over 2 million people that are all taking that same journey of developing
1:24.7	financial freedom and improving their position in life through owning, investing and improving
1:29.8	real estate.
1:31.0	We help you to do the same thing by bringing in different guests that have done it for themselves.
	...

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