Mark Kohler breaks down five types of real estate investments wealthy people use: short-term rentals, long-term rentals, self-rentals, syndications, and rentals held in retirement accounts. He explains the tax benefits and participation rules for each, plus how people redeploy crypto profits into real estate.
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Wealthy people buy rentals. Wealthy people buy crypto. Don't be a one trick pony. You don't have to go out and plunge toilets when you go to the holding side of real estate. Everybody. There's five classes of real estate and here's what it looks like. You've got short term rentals, long term rentals, self rentals where you rent your own building back to your business and syndications. The fifth class is where you let your Roth IRA or 401K own the rental. So I've got four different ways to buy real estate and each one has a different benefit. Benefit Long term rental, I got to be a real estate professional. Short term rental. I only have to put in 100 hours in year one, I'm done. I get a kick ass write off self rentals. I don't even have to have material participation or be a real estate professional. Syndications completely hands off separate ROI. And then my Roth and 401k never pays tax when it sells real estate. So those five buckets are what we want to be building. And this is what the wealthy does whenever they sell crypto. They're using some of those profits to redeploy and then go still buy more crypto. You've got a masterful combination.
