Podcast episode (Ep 117) from the Freedom Real Estate Group hosts Flip and Danny explaining five benefits of retaining a W-2 job while investing in real estate syndications: 1) use W-2 income to fund investments; 2) tax advantages of real estate (straight-line and bonus depreciation); 3) dual income sources help build wealth and model legacy behaviors for children; 4) multifamily investments can hedge inflation through rent increases; 5) potential earlier retirement enabled by rolling past 401(k) funds into self-directed IRAs while still working. Episode closes with a CTA to freedomcapitalinvestments.com, social media engagement, and a standard investment/legal disclaimer.
Questions this video answers
Ep 117 - Benefits Of A W-2 Job And Investing In Real Estate Syndications
Flip and Danny (founders of the Freedom Real Estate Group)
freedomcapitalinvestments.com
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our podcast, which is called Freedom through Passive Income. That's right. And today's episode is called Benefits of having a W2 job and investing in Real Estate Syndications.
Yeah, that's a longin'.
Well, many people want to use real estate to help them quit their job.
Yes.
We hear about it all the time. I just want to get out of my job. I'm investing in real estate so I can quit my job and just invest in real estate full time.
Yep.
Others love their job, which they do. I mean, granted.
Yeah. Some doctors that we talk to, lawyers, like business people, they're like, I don't want to quit.
Yeah.
I just want the extra income.
Yep. So a shift in perspective. They can actually work together for your advantage.
Yeah. So even if you're attempting to get out of your job to be able to invest in more real estate, if you actually like what you're doing, it's okay. You can actually do both, and there's benefits to doing both. And that's what we're here to talk about. So we have five ready for number one.
Let's hit it.
I had a lasso finger going.
Oh, yeah, yeah. I didn't know.
Yeah, yeah, yeah, whatever. Anyway, so number one, use your W2 income to actually fund your investments. So because you've got that W2 job, there's a lot of people that I talk to, they're making six figures in their. In their W2 job. What if you enjoy it, if you hate it? Totally different. Of course, you want to get out of the job and you want to live a life that you enjoy. But if you actually enjoy it, that's six figures of income that you're using to pay bills, have fun, take vacations. And a portion of that is being used to invest in, you know, whatever it is that you're investing in.
Right.
The second one is tax benefits. And I compared it to stocks in my head, because as normal people in a W2 have some type of retirement plan, you know, a 401K or something like that, they're investing them in mutual funds. So I kind of wrote, compared to stocks, you're investing in real estate, and you're using a portion of your income, whether it's your 401k or not. We're going to talk about that in number five. But you get added benefits when you're investing in real estate. So you've got the depreciation, those tax Benefits, You've got straight line depreciation. You also have bonus depreciation. Those make a huge, huge impact to your bottom line.
Right. And then two income sources helping you build wealth. Number one, your children are watching and learning from you. So watch you build a legacy of financial freedom that can be passed down to future generations.
Yeah. And those two income sources are what we're talking about here. Your job plus the investment. Right, right. So it's that shift in perspective that Flip talked about. You know, you can do both and there's some benefits to actually doing both if having both of those income sources going for you.
And then, and then there's hedging inflation. Yeah. Multifamily investors benefit from inflation.
That's right. Because we just talked about this in the last episode that we were doing. Yes, we did. You can raise rents, you know, with a rising interest rate environment inflation, your rents can correlate with the cost of materials and labor and all the things that are going up. You can reflect that. There are some things to watch out for which we talked about in the other episode. So we're not going to repeat ourselves. You're going to have to go watch that.
You can watch that one now.
All right. And then number five is you can retire earlier with all of the advantages that we just talked about. I know we just hit on four, but you know, and when I, I said that number five, we're going to go back to that 401k because an additional advantage that you have is if your 401k will allow you to roll over while you're still working. I think it's got like an in service rollover or something like that means you're still working at a company and don't like that might be the wrong language. Just say, hey, you know, HR person, can I take my 401k money and move it into a self directed IRA? Or you know, move it to another custodian, Can I have control over it? You're going to find out. Some employers are going to allow you to move your money. Some employers are going to allow you to move your money. If you have any past jobs where you had a 401k, you absolutely 100% can move that money. So every single past job where you had a retirement plan, go get that money and put it into a self directed ira because it's going to allow you to self direct into the investment of your choice. Our choice is real estate.
That's right.
So if you want to retire early, use all of the information here. And if you like your W2 job, keep it because it's just an added benefit to what you're doing. You get to enjoy what you're doing, have that extra stuff, slice of income, do some investments on the side. You're just starting to be a little smarter, right? That's why we say invest smart, live happy.
That's right.
Enjoy what you're doing and be wise about the decisions you're making.
Amen, sista. Make sure you're heading on over to our website, freedomcapitalinvestments.com and join our investor club. Investor club. There's a lot more information there than we put on the social media platform, so make sure you head on over to our website and join the club. But we are still on Facebook and LinkedIn and the groups there and the teams there over there answering questions. So that's where you need to go if you have any questions, requests, recommendations or whatnot. If you're watching on YouTube, make sure you're doing the subscribe button right there. But we hope you enjoyed this episode and we always end all of our episodes with invest smart, live happy. Bye, everybody.
Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss, y' all.
