This is your sign to invest in private equity real estate!

13 Jan 2026 · 1 min

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1:21

Dan Novaes (YouTube) explains why individual investors should consider private equity real estate: investors join real estate funds as limited partners (passive investors) that own commercial and residential properties, receive periodic cash distributions, and often benefit from depreciation that can offset taxable income. He gives a numeric example: on a $100,000 investment one might receive $8,000/year in cash flow and $20,000 in depreciation, which—at a stated 50% tax rate—reduces taxes by $10,000, yielding $18,000 in combined cash and tax savings for that year. The clip ends with a follow CTA for more tips.

Questions this video answers

January 13, 2026

$100,000

$8,000 per year

$20,000 per year

50% tax rate

Chapters

Ask the average investor about real estate, and they'll tell you about flipping houses or buying rentals. But that's not what the wealthy are doing. They're not fixing toilets or chasing down rent checks. They're investing in private equity real estate deals and getting paid while paying almost no taxes on the gains. So here's how it works. You invest in a real estate fund, and that group owns commercial real estate, things like apartments, retail buildings, office space, industrial properties, even residential homes. You're a limited partner, and that means that you're not managing anything. You. You get paid monthly or quarterly through distributions. But here's the best part. You also receive depreciation, which often offsets the income you're making on paper. Let's say you put in $100,000. You might receive an $8,000 a year cash flow from that investment, but at the same time, you're getting $20,000 in depreciation. That means that you pay little to no taxes on that income legally. So let's say that you pay a 50% tax rate and you live in a place like California or New York. If you owed $100,000 in taxes and you get to say $20,000, depreciation now is only $80,000. So that $20,000 in savings saves you literally $10,000 that you would have had to pay to Uncle Sam just because of the depreciation. This is in addition to the $8,000 that you made as a return. So your total savings and earnings is $18,000 in that given year. If you want to get more of this, follow us and get all of our hacks for free.