Hannah Hammond, a 25-year-old real-estate investor, made $1 million last year and paid zero taxes using cost segregation and accelerated depreciation. She buys properties with other people's money, adds value through improvements, and holds for long-term appreciation. Her mentor's advice: focus on your core strength and outsource everything else.
Excuse me, ma'am. Ma'am, how old were you when you became a millionaire? 25. 25. Can I get one minute with you for the channel real quick?
Uh, sure.
What is the fastest way to become a millionaire through real estate in today's world?
Buy assets, add value, and hold.
But if you don't have money, how would you buy assets?
OPM. Use other people's money.
What is the best advice you've ever gotten from a mentor?
So one of my mentors who's a billionaire said the part of the arrow that kills the animal is the point. All you should be focusing your time on is activities that is your tip of your arrow. So do what you do best and hire out the rest.
How much money did you make this last year?
I pocketed about $1 million. How much did you pay in taxes? Zero.
How is that possible?
If you're a real estate professional, then you can do something called cost segregation, which means you can buy an asset and you don't have to pay cash for the asset. You can get a loan on the asset and you can still accelerate depreciation off of your ordinary earned income and get your taxes to zero. And it's completely legal and it's how you're able to compound your wealth much quicker.
So what's your last message to the younger generation?
Whether you think you can or you think you can't, you're right.