Cash Flow, Cost Segregation, and Bonus Depreciation for Real Estate Investors with Casey Quinn

Mike Hambright (00:33)
Hey everybody, welcome to the show. Exciting to have my buddy Casey Quinn with us today. We’re gonna be talking about how to scale your business. you know, we can talk about why to scale your business. I think there’s some people that do it for ego reasons. There’s some people that want fancy cars and all those things. At the end of the day, it helps fuel your life, the life you’re trying to live. It allows you to give back to your community more and do a lot of things with it. You get to decide what you do with.

your money and what scaling is all about to you. But we’re be talking about Casey Quinn who’s grown a number of businesses, very large, very fast, has a financial background. And we’re gonna be talking about the keys to scaling. And a lot of it, as a little teaser, has a lot to do with having your house in order financially and a clear vision of where you’re going. So Casey, welcome to the show.

Casey Quinn (01:12)
I appreciate

you having me, Mike. Excited to dive in a little bit here, man.

Mike Hambright (01:14)
Yeah, yeah excited and it’s and it’s uh, by the way, we’re recording this in early December So this will probably come out sometime in in December So the timing is kind of right for all the tax stuff coming up a lot of people if they’re not already thinking about 2026 I mean you and I know that it’s here already if you’re not if you’re not planning hard right now or Getting buttoned up pretty quickly here. You’re gonna miss out on the beginning of the year before we jump into this though You’ve got an amazing background. There’s no way I can do you justice by introducing you i’ll screw something up. So uh, tell us a little bit about

Casey Quinn (01:29)
here.

Mike Hambright (01:44)
you and your background.

Casey Quinn (01:45)
Yeah, man, I’ll be

quick, right? I’ll give the cliff notes at a high level, but CPA by trade, uh, public accounting, cut out of college, right? So I’ve always been in the numbers. I’ve always been really good with numbers. so never really thought I’d ever be an entrepreneur watching shark tank growing up, all the things, right? It never was creative, right? I don’t have the art side. can’t even draw a stick figure. So thought I’d never really be able to be an entrepreneur because I didn’t know how to create a product. Right? Fast forward, you know, 10 years in public accounting was a CFO at a local real estate shop and ultimately got fired.

So this was about seven years ago. Uh, and I decided I was never going to let someone else control my fate again, just given kind of the 10 years and the talent and all of the businesses I had seen across the country. And that’s when I launched a real estate company. Uh, and so in about, you know, we’re going on seven years now, but I would, caveat this by saying we haven’t bought a piece of real estate in 2020, 2025 at all. So prior to that, we’re, about 120, 125 million in real estate portfolio, close to a thousand doors that we’ve, we’ve scaled up really quickly on that side.

And then from that, I’ve really launched a bunch of companies off the backs of that, right? And really understanding the financial side and how to create leverage using KPIs on the finance side, understanding our numbers. So we’ve got an accounting company, you we’ve got a retail flooring and paying company invested in some, some AAU programs, invested in a marketing company, right? So, you know, we’re really kind of more at the, and have a big lending company locally here where we’re at in Pittsburgh, Pennsylvania, the greatest city on earth.

⁓ And so yeah, we got a ton going on, but really it’s, you for me it’s if you’re not growing, you’re dying, you know, and I believe in giving back and creating jobs and creating opportunities for the world. so scaling is important to me for a lot of those reasons, certainly creating the financial freedoms that I now have and the financial freedoms we’ve been able to create for a lot of people here in our city and our businesses. So at a high level, that’s, you know, a lot of different things going on too, as you can imagine, but that’s kind of the nutshell, if you will.

Mike Hambright (03:32)
Yeah.

Yeah, I think, you I’ve thought about this a bit because I have a son that’s 18 and, you know, he may or may not go to college kind of on the fence right now, which I’m okay with. But traditionally I was, and by the way, I was the first person in my family to go to college. My wife came up in a family where was like, there’s no way you’re not going to college. you know, everybody, like her parents went to college, her grandparents went to college. Like, so there’s obviously a lot of ways right now, but as an entrepreneur, I will say that there’s not enough people with a sound financial foundation in their business. ⁓

Casey Quinn (03:50)
Yeah, same.

Mike Hambright (04:01)
a lot

of amazing people. mean, my wife and I were just talking about it today. She’s like, I think a bunch of people in your mastermind, because our son does. I I’ve got some ADD going on for sure. And she’s like, I bet half the people in your mastermind have ADD. I was like, for sure. There’s no doubt about it. And that’s great. mean, it’s allowed people to kind of hustle their way to a point. But there has to be this foundation.

Casey Quinn (04:15)
Mm-hmm.

Mike Hambright (04:24)
and you’ve said it before, accounting is the language of business, right? mean, not a lot of people appreciate accounting as much as you do. And by the way, I’m not an accountant, but I appreciate having sound financials in your business. And hopefully today what a lot of people learn is you don’t have to be the guy or the woman that does that, but you need to have that person on your team because if not, it’s just a matter of time before you crash and burn or don’t have visibility to what’s going on.

Casey Quinn (04:27)
That’s right.

Yeah. What I, I,

what I tell people too, right? It’s like, look, you don’t have to be the human that understands the journal entries. You don’t have to be the human understands why you’re booking liabilities and assets and how to book a HUD. When you go buy a bunch of real estate, right? Like you don’t have to be a human. can outsource it eventually as you grow big, can insource it, right? Hire people on your own teams. There’s a lot of ways, right? But what I tell everybody is you need to understand what’s happening, right? Every time you do anything that involves a transaction, whatever it is.

It’s hitting your financial equation and you have to understand what that is and how it’s going to impact your future. Just like your time, right? You got to be evaluating your time. So you got to be evaluating your cash and your cashflow and what’s happening when you make decisions. And so at the very least understand what happens when you’re doing those things, right? And that involves a level of education that says financially, what is going on here? Maybe not necessarily, okay, Hey, this is the chart of account that I’m going to use to book this. No, let your accountants do that. Right. Outsource that as an option.

If you didn’t go to school like I did for it and it doesn’t come naturally, who cares? But know how to read it once it’s done. That’s what’s important. Or know how to have someone in your corner that understands how to explain it to you so that you actually understand what it is that they’re saying.

Mike Hambright (05:46)
Yeah.

Yeah, it’s no different than in your car having a dashboard. It’s no different than being in sports and having a scoreboard. Like, that is the report card for how you’re doing and what you need to be careful of, right? Let’s talk a little bit about the things that people should be tracking, kind of like some of the core KPIs you should be tracking in their business.

Casey Quinn (06:08)
Yeah, no,

good question. And like, like for me, it obviously really depends on the business that you’re in, but if you’re selling something, right? Like Mark Cuban, all the famous people, right? They sales cures all things. So I say, great, but like, you’ve got to go track leads. And so when you’re going to attract leads, what’s it costing you? It’s costing you money. So like the fundamental equation, I tell anybody in any business is understanding what you’re, what is costing you to acquire a customer, right? So your customer acquisition costs, number one, and that’s not just what you’re spending on marketing on Zillow or

Right. If you’re in real estate on Zillow or if you’re doing Facebook ads, if you’re doing mailers in the real estate space, whatever it is, it’s not just that. It’s your sales reps at your commissions. If you’ve got someone managing your CRM, like all of the costs that go into it, that is your customer acquisition cost. Right. Obviously, you know, per customer is how many customers did you acquire? How much money did you spend and how many customers did you acquire with the money you spent? And the name of the game is to make sure that you understand that you’ve got to create a return from that money. Right. And so every customer you acquire.

What kind of money are you going to make from them and for how long? Right? And so that’s your lifetime value of your customer. What we like to do is really look at gross profit from a customer, right? Cause you’re going to fulfill. And so if you have 40 % margins on whatever you’re selling, how long will you get that for? And how much more money is that than what you’re spending to acquire the customer? Right? And so if you’re not fundamentally evaluating this, at least on a monthly basis in your own business, how do know how much money you could spend to acquire your customers? And then like, when we get really into it, the third…

piece. And again, it’s not super complicated as your conversion cycle. Right. And so understanding, look, I’m going to get money from this customer. When am I getting it? And when will it return the money that I’ve spent on to acquire them on my sales and marketing costs and understanding let you understand how much money you can invest in acquiring more customers, which again, we’re talking scale will allow you to scale because if you don’t have money in the bank, can’t spend it on marketing, can’t acquire customers, not going to make a profit, not going to be able to stay in business. And so

To me, like I tell everybody, the three most important KPIs that you can look at in any business period is what’s the total cost to acquire a customer? What are you making from the customer for the lifetime of that customer? And how fast do you get that money back so that you can either put it in your pocket to buy your Starbucks or reinvest it back in the business to buy more leads, right? To help create more customers.

Mike Hambright (08:12)
Yeah.

Yeah, that’s great. And I think for real estate investors, which I run a marketing company for real estate investors to you work with lot of real estate investors is tracking that at the channel, the channel level, right? So like an extreme example, this isn’t really an extreme example. This is a very real example is inbound marketing, whether it’s pay per click or direct mail, like we just know the profits are typically two to 300 % higher than outbound marketing, which texting and cold calling a lot of that’s kind of going away. But you know,

Casey Quinn (08:25)
Absolutely.

Mike Hambright (08:43)
people look at it and say well but the the lead cost for those things is much cheaper of course it depends on how you define a lead as well but the lead cost is much cheaper the time to close the deal is much longer because when you’re just cold-calling people that didn’t raise their hand like

they’re often not ready to sell and maybe they will eventually, but the kind of cycle time on that is really long. And so people look at like, well, that marketing is more expensive. It’s yeah, but it’s way more profitable. And it’s way more scalable by the way too. You just tell whoever you’re doing for pay per click or mail, like double the budget. And if you’re like texting or cold calling, you’re like, we got to hire five more people and they’re going to on average quit every 60 days because they’re being told to F off all day long. Right. And so, but the channels perform very differently for,

businesses and so I think people need to pay attention to that as well.

Casey Quinn (09:29)
I

think you’re a hundred percent right. The channels really matter, but I think even more so, think a lot of people get the channels right as far as measuring leads, cost per lead, right? And then ultimately a lot less are taking it, but some are taking it at the cost per deal. But I think where really a lot of people struggle is understanding, okay, what was the return on that deal? Right. And on average across, if I do 10 mailers, 10 mailer closed deals, and I do 10 text cold deals, right? We take it to the close, but let’s take it to the actual profit.

Mike Hambright (09:55)
Right.

Casey Quinn (09:55)
Right.

And then even more so what people don’t do is evaluate, I wholesale it? Should I hold tail it? Should I flip it? Is it a burr on the back end and understanding, okay, look, if I changed, if it’s a flip compared to a wholesale, well, my cash conversion significantly changes, right? Because if I flip it, you know, I’m going to go an extra 120, 150, 180 days till I actually make money. Well, how does that affect the calculation compared to a wholesale? And the same concept in my opinion goes for mailers compared to texts, compared to Zillow leads, whatever it is you’re doing. Because again, mailers.

Mike Hambright (10:17)
Yeah, for sure.

Casey Quinn (10:24)
For instance, usually, right, everyone says mailers are the best in the world, which by the way, I agree with and have always done mailers in my real estate business, but the conversion is longer, right? Because I’m going to pay for mailers today. By the time the mailers get dropped, it’s next month. And by the time they actually return my phone call, it’s the next month. And then I’ve got a 30 to 45 day window until I close. And so I’m spending marketing money today and I’m not actually seeing a closed deal maybe for 120 days. And if I flip that thing,

Mike Hambright (10:40)
Yep.

Casey Quinn (10:48)
Sometimes my marketing spends not for 12 months, right? So if I’m spending 5,000 a month, I’m not seeing a return for 12 months. Well, I better have 60 grand in the bank if I want to do that for 12 months. Otherwise I’m going to belly up and not have enough money. And so taking it all the way to the end of the life cycle is incredibly important. You know, real quick, I’ll give you another example, just because it matters, right? People sponsor a lot of things. And I always tell people really look at the cash conversion cycle of sponsorships and the risk reward. Right? So a lot of times what I tried to do,

when I sponsor events to say, Hey, how about I pay you per closed lead instead of sponsoring? Right? Cause if I pay you 10 K today to sponsor, right? I’m going to pay the 10 K and I’m not going to make my money back until I close customers months and months down the road where it’s like, look, I’ll pay you. You’ll probably make 20 grand, but you’re not going to get to 20 grand until actually after I close the lead. Now my cash conversion cycle is literally zero because I close. now have a client. use their revenue into my business to pay off.

the lead generator, right? And so a lot of times people aren’t looking at that and say, well, I’d rather pay 10 K than pay per lead because I have unlimited upside now. But again, you’ve got to look at the cash conversion cycle. It’s incredibly important because that’s a return on return on your investment, right? But it’s your IRR time matters and everything that we do.

Mike Hambright (11:55)
Yep.

So for the entrepreneur that kind of outsources these things, how do they get visibility to, like how do they get to a point to where they have a clear dashboard of what’s going on in the business, whether it’s monthly, daily, weekly, like how do they get to that point and what are some of the kind of dashboards I guess that they should have?

Casey Quinn (12:14)
Yeah, I mean,

there’s, there’s so much out there now, right? I’d tell you, look, if you’re not an expert at these things, like the money is worth hiring. Like for instance, Accruity, our firm, I’m not, not a plug here, but like, you know, other firms we’ve talked about on the call prior to here, right? Other firms out there are really good. Spend the money and let them get you your numbers that you need at the end of the day, if you need numbers, if you don’t have the time to do it, but the done for yourself products are so out there now, right? Like ChatGPT.

Yeah, I’m in this ex business. What are the top 10 KPIs I need? Boom. Put it in there and say, okay, hey, what do I need to go get you in order to calculate this for me? It’s going to drop you. Go get me this. Go get me this. Go get me your average. You know, how many customers did you close per month over the last three months? Got it. Put it in, right? And it literally will do all of it for you. Just ask it what it needs. You know, and so a lot of times, like for instance, I’ll give you a perfect example is I run a private hard money lending company, right? So we’re raising capital and we’re lending it locally. And so we’re playing the arbitrage game.

And so we’re raising between 10 and 12 and we’re lending at 13, not much spread there, but we’re getting our origination or administrative fees, our legal fees, all of the things. And so we’re playing the arbitrage game, But what I tell a lot of people is how much money can I go spend to acquire the capital to then lend? And so it’s a different calculation, right? So I literally had Chat GBT and I had an all night session together, right? Instead of the bar, we were hanging out, me and Chat.

making sure I really get into the granular understandings of how I can understand what I am paying to raise money and my return on it. Because my return is based on a margin over a long period of time of an arbitrage play on that capital that I’m raising. And so it’s unique, right? And like as a CPA and as someone that would kind of deem themselves a financial expert, I’m still using ChatGPT to help me. It is that good, right? So there’s so much done for you services out there. And also by the way, there’s platforms now, right? Depending on what you’re using. Even QuickBooks has dashboards.

There’s Plecto out there now. And so there’s a lot of data tools, right? You get a data scientist to connect all of the things and give you a dashboard. So that’s kind of what I have, right? I have a CRM expert. He gets all my operational data, all my lead flow data. Then I combine that with the financial KPIs and put it in a dashboard. And now it’s all right in front of my face.

Mike Hambright (14:15)
Yeah.

Yeah, let’s talk about the the importance of just to throw it out there the importance of managing cash flow because a lot of smaller entrepreneurs from all industries are They’re kind of looking at their bank account like what’s in there today. They’re not they’re not you know Like you need to be more future focused you need to like see If you’re if you want to grow your there’s a quite frankly There’s a lot of entrepreneurs that are that have a job, right? mean they might be the CEO but they’re in a job and I would say there’s probably a lot of people that are listening to this right now that are in that situation

Casey Quinn (14:38)
100%.

Mike Hambright (14:43)
And if that’s your goal, then that’s great. Like stick with it. But if your goal is to grow, like you really have to invest in your future and therefore like current cashflow status isn’t as important as like predicting out like investing in yourself for growth over the coming year, right? So talk to that a little bit.

Casey Quinn (15:00)
Yeah.

mean, listen, at the end of the day, if you’re reacting to what’s already happened in the past on financials, you’re too late. It’s just the reality, right? Unless you’re an incredibly good entrepreneur and you kind of have really good intuition or your business is so small, you basically just have a job to your point, right? But I’ll give you a good example of my real estate company where, you know, after five years, I am no longer on salary inside of my own company, right? I’ve essentially delegated myself above the CEO chair.

And so now they’re, you my business partner is our CEO and I sit on our board, right? At the end of the day in that business. it’s, you know, we have 1200 doors that we manage. We own about a thousand of them. There’s obviously 60, 70 million in debt. It’s a huge business. And the way that I’m able to effectively do that is because look, we’re making decisions six months from now. Literally I had a meeting yesterday where we’re making decisions on June of next year.

We’re looking at renewals that are coming up and do we want to sell these assets or not based on the cashflow that we’re going to get when the cashflow we’re going to get over the next two years in those assets. And so it’s like, look, if you’re looking at making decisions based on what’s happened six months ago, it’s irrelevant in the real estate space and really any business. And what happens is to your point, most of these folks that have a job as a business owner, which again, there’s nothing wrong with that. You have to start somewhere, right?

These folks, unfortunately, are so busy doing sales, doing marketing, closing deals, fulfilling their deals in their coaching programs or whatever it is that they’re doing. And all of a sudden, right, it’s January, February, March of 2026, and they haven’t even understood what happened in April of last year because they’re just saying, look, my bank account started at 50, now it’s at 100. I’ve, and I’ve lived and therefore I’ve made enough money. Well, it’s like, look, you’re never actually going to be able to scale your business and scale yourself out of the rule you’re in today.

Because how do you know when to hire the next sales rep? How do you know when to hire marketing? How do you know when to invest in additional back office infrastructure? When you want to hire an HR human? When you need to hire an executive admin, right? Like those decisions need to be made based on what you know you’re going to make or not make out into the future. And so if you’re not looking at the future, how in the world do you make investment decisions? You really can’t. And so you can survive and you can decide what you’re going to spend this week based on your cashflow and what’s in the bank.

Mike Hambright (16:57)
Yeah, for sure.

Casey Quinn (17:04)
But if you want to invest money to scale, takes money to make money. You’re going to need to be living way out ahead. And if you’re not, it’s a struggle.

Mike Hambright (17:10)
Yeah. And one thing to kind of share with people, you and I were talking about this ahead of time as my wife and I are both finance folks. Neither one us have an accounting degree, but she’s played that role for us for a long time. Just to tell people, accounting is typically backwards looking and finance is typically forwards looking. Not always. It’s not that cut and dry. But basically what I’m telling people is if you have somebody that’s handling your accounting, they’re probably not forecasting your future because that’s just not what they do. mean, they’re really

they’re really trying to count for what happened and the financial side tends to be more of the planner side. Would you agree with that? Yeah.

Casey Quinn (17:43)
100%, I think of their different avatars of humans

too. mean, like we’ve got about 25, 30 people full time in our accounting firm. And one of the things that our leadership level, continue to have discussions around is how do we really amp up our advisory side? What I mean, but we call it our advisory side, but it’s really exactly what you just mentioned, right? It’s like, how do we really get out ahead of helping our clients understand what their future looks like and teach them what their future is going to look like using their historicals.

Existing a lot of our existing talent that we have inside of organization is much more to your point accounts, right? They’re closing their books. They’re, they’re extremely focused on accuracy and completeness, right? Where it’s like, look, if I’m looking out into June, I don’t care if I’m 2 % off, right? Like it’s close enough to be able to help me make those decisions. Now look, when I have my financials, I’m going to give them my tax team that I’m going to send to the banks, right? The compliance to your point side of all of this. Yeah. It needs to be a hundred percent perfect and you need to have the right avatar, right?

We use predictive index, you know, in my organizations around really identifying and understanding the type of human that likes compliance, likes persistence, that likes consistency, that has all of the avatar piece that says, look, this person is totally content working 50, 60 hours a week, closing the books, making sure that the HUD’s booked accurately, right? Making sure that all of the numbers are going into the right buckets on the chart of accounts and ultimately producing you forward-facing financial statements.

Now it’s really a different avatar and a different human, different firms or people inside of your organization says, okay, cool. What did you just give me? Now how do I turn that into something that’s going to predict my future for me? So that’s easier to make investment decisions. And like, especially like if you’re trying to grow and invest in businesses and you’re kind of past the level of, of hustler, meaning you just got a really good job that you control your own time and you’re working 70 hours a week for your, for your, paychecks.

Mike Hambright (19:15)
Yeah, yeah, yeah, that’s great.

Casey Quinn (19:27)
I support that by the way, because that’s awesome, right? You’re on your way. But as you start to move up to the next level, you’re going to try to figure out how to make investment decisions. And a lot of times in new businesses, it’s going to take serious investment, whether it’s reinvesting the profit or borrowing capital in order to make investments for future paydays, right? Like marketing literally is that. And so if you start today, you don’t have money to market. You didn’t make enough money to market. Where’s the money coming from? Well, it’s an investment. So how do you know it’s going to pay off?

Mike Hambright (19:31)
Yep.

Casey Quinn (19:54)
Well, you’ve got to be living out into the future in order to make sure it pays off. Your historicals are the perfect example to really help set the stage for what the future is probably going to look like. But you’ve got to be living out into that future if you want, if you really want to actually scale your business and you’re not content in your lifestyle business that you have today.

Mike Hambright (20:10)
And investments like marketing and people specifically, like you’ve got to play the long game. Like the worst thing somebody could do is say, I’m going to hire this person to help me grow, or I’m going to invest in this channel to help me grow. And then two months later, they’re yeah, it’s not really working. I’m going to just slash it. And what happens is like you just didn’t give it enough time to work. That person, you didn’t give them enough time to have an impact. So those have to be kind of long game type decisions. And you got to basically stick with it and be consistent, right?

Casey Quinn (20:37)
Listen, that’s

probably one of the biggest things that I’ve ever seen in the marketplace and talking to so many different entrepreneurs, right? Is they get scared. And so when you’re living in the moment, you get incredibly scared. like, look, I hired this human. been two months. I’m hemorrhaging cash. I don’t know where I’m to make it back. It’s because you didn’t do enough planning to say, look, this human is going to take three months and then we’re going to ultimately start making money here. You know, I’ll give you my, in my lending capital company, we have, think 12 new hires in 2026 plan.

And so when you look at that and you say, okay, hey, you know, I think for us where I’m a CPA, so I’m conservative, I’m not making it enough revenue to his investments. so in 2026, it looks like that company is not going to have a great year. Okay. But I understand why, because I’m going to hire these six people. And then ultimately this is what it’s going to produce me late 2026, 2027. I’m going to more than make up for it, right? My return on my investment of the human. can actually see it on paper to say, okay, look, I can now make this investment knowing

I’m gonna lose, know, 20, maybe I’m hiring a C-suite person for 200 grand a year, okay, maybe I’m gonna lose 20 grand a month from first three months, but I know months four through 12, I’m gonna make all of that up and some obviously, right? Again, scale mode, right? Thinking how do we grow the business to increase revenue, to get ourselves out of the way of whatever it is we’re doing today. You have to be making and thinking about that, otherwise you’re never really gonna be able to do it.

Mike Hambright (21:41)
Yeah.

Yeah, for sure. For sure. Well, let’s we save the best for last. Let’s talk about everybody’s favorite topic taxes. So nobody nobody loves that topic, but it’s important and you and you know how important it is and you know how many opportunities there are, especially in the real estate space to minimize your taxes with the use of our businesses. Right. And so but there’s everybody that’s listening to this is probably going to be right around year end. So like let’s let’s be a little agnostic as to whether they’re hearing this in December or early January. But just what are some things that they can’t

Casey Quinn (21:59)
Yay.

Mike Hambright (22:22)
be doing they should be doing now to improve their tax situation or minimize their tax bill if you will. ⁓

Casey Quinn (22:28)
Yeah, mean,

first and foremost is get with somebody you need to be planning, right? Like number one is you need to get with somebody that can understand what is my tax picture most likely going to look like. We’re a little bit too late for that now this year, but like if you haven’t, when you hire your tax accountant for your end to file your taxes, ask them. And if you like them say, Hey, look, I want to put something in place for 2026 where we meet at least quarterly. And you do some sort of planning for me and say, Hey, look, this is what your tax bill is going to do. And here’s some ideas for you.

to mitigate those tax bills, right? So the first thing I would tell you is find somebody that you know, like, and trust that is willing to help you there and pay them the money that is required because it is well worth it. Particularly if you have a tax bill. Obviously, right, you and I know this more than anything in the world, being real estate investors ourselves. Without a doubt, right, particularly now in 2025, again, with Trump taking office after December 9th or January 19th of 2025, I believe, right, we’re back to 100 % bonus depreciation.

And so what that really means, you know, I’ll keep it at a high level here, right? Otherwise we could talk all day, but cost segregation, right? Everyone hears the term, what cost segregation is, is being able to take the cost that you bought a piece of property for, whether you acquired it or renovated it, and put it in a different useful life bucket as related to your tax returns. And so what I mean by that is a building, commercial building, 39, residential building, 27, or 27 and half, whatever heck it is. And that means if you spent a hundred grand,

They’re gonna depreciate that. Depreciation is essentially a non-tax expense that you can offset your income on. If you’re a real estate professional, you can offset your active income on it. Even if your wife’s a doctor, you can offset your wife’s active income or your husband’s you’re a female real estate professional. There’s a lot of ways that Chachi BT will tell you literally instantly what a real estate professional is and how you qualify. But you can now take that property that you’ve bought.

or that you’ve renovated and allocate the money that you put to the roof, right? To the roof. And then what cost take is say, now that is five years for life. Now, well, bonus depreciation does is what Trump came in and said is all of that allocation to anything but the actual building. You could take a hundred percent of the depreciation on that in year one. So what’s really happening now is if you bought a piece of real, so number one, any renovation you do to real estate in 2025 and beyond, immediately you can write a hundred percent of all of that off.

And so you get the asset that’s producing the income, but you can write off 100 % of it, a contract of income. Even more so now you can get it’s, it’s turning into roughly 40 ish, right? Again, it really depends on the human, on the deal and all of the other things. So, so talk to a tax professional here, but it’s averaging right around 40 % now, right across the board, where if you bought a building for a hundred grand, you’re pretty much going to be able to get $40,000 in additional tax write-off in that year you bought the property, which is insanely significant, right? Meaning if you make 200 grand a year,

If you make 200 grand a year in active income, you’re going to have to pay taxes on 200,000 this year. Let’s call that, right? You say you’re in a 30 % tax bracket at 200 grand a year. I don’t know exactly what it is, right? It really matters your personal situation. That’s 60 grand you’re going to have to pay, right? But if you go out and you pay by $500,000 worth of real estate, we’ll take almost half of that and reduct your actual active income. Guess what that means for you? Zero income, zero taxes paid in that year. It’s phenomenal, right? You just save 60 grand by buying real estate. It’s…

It’s by what I would say probably the number one, you know, wealth building opportunity in America by far is by real estate and allow costing to happen because you save significant cash, which you can reinvest annually by having the 100 % of bonus bonus depreciation in year one. And so I tell a lot of people right in, you know, I have a really good burr model example to say like, look,

is that you can give up one, cause we have so many flippers out there, right? Everyone in the world is flipping real estate. It’s like, if you can just not flip that and get rid of that active income in year one, you can make all of that back come tax season in year one. And so like, just keep the asset, please, right? Like that’s what I’m trying to tell everybody that I can because under 20, you know, 20, 25 new tax rules that Trump put out there, man, it is incredible wealth building benefit, right? And as you and I know,

Real estate only goes up in value. I think it’s probably hard to say that over the last two years, given the volatile market, but we do know it’s still going to go up.

Mike Hambright (26:32)
Yeah, certainly over the long term.

If you play the long game, there’ll be some ups and downs and there’s some noise going on for sure right now. But over the long term, it’s definitely been a high performing asset class. So yeah, awesome. Well, Casey, if folks want to learn more about you, maybe learn more about accruity, get some help with their financials and accounting, where can they go to learn more? ⁓

Casey Quinn (26:54)
Yeah,

I would say first off, right, like we’re putting out all kinds of information on the socials. So Instagram, Facebook, follow me, Casey Ryan Quinn, follow a crudie on there. Certainly we’re putting out a ton of information in a crudie. A crudie.com is our website. We’d love to have a call with you. If you’re interested in having a call, just kind of click through there. Shoot me a direct message online on the socials. Like whatever you can do to get ahold of us. We would love to get on a call and look at your situation.

you know, we’re not a pressure sales firm in any way. It’s like, how can we help you? And ideally we can help you enough that you want to work with us, you know, onward and forever moving forward. But worst case, right? You kind of give validation that you’ve got your ducks in a row, you know, as to what you’re doing. like, and if it is not us, make it somebody without a doubt, especially this time of year. Financials are everything. If you want to scale your business without a doubt.

Mike Hambright (27:38)
I appreciate that. We’ll add some links down below for folks that want to learn more about you. Casey, would you mind real fast, you’ve been in investor fuel for a little while now, would you mind just giving a quick testimonial of what it’s been like to be a part of this group?

Casey Quinn (27:47)
man, absolutely. InvestorFuel has been awesome. I’ve been there, I think about a year now, a little over a year, and I’ve been in probably seven or eight other masterminds throughout the last five, six years around, and I’ve seen the circle. You know, not tooting your horn, Mike, but you run a really, really good events all of the time, and then you’re doing a ton offline, right? You’re doing a ton on the social media side in terms of trying to connect people. You’re running calls all the time. got podcasts galore, giving different people opportunities to connect.

And then like I said, adding a ton of value at the masterminds has always got good speakers. There’s great business operators in there. And I think what I would tell you from a true testimonial standpoint, since you asked, what I really, really love about Investor Fuel, man, is the people that you bring into the organization, that you bring into the mastermind. They are, to me, I’ve seen a lot of people out there that I just don’t trust, right? And it’s like, they’re full of shit. They’re there to sell or whatever. I’m sorry for swearing. They’re there for whatever reason, but like in Investor Fuel, everybody is so genuine, authentic.

and real and open and just want to get better and help other people get better. And that’s why we love it. That’s why we’re a part of it. That’s why I come, right. And that’s why my team comes. That’s why we’re all there and we appreciate everything you’re doing. And we’re going to be continuing to lean into everything in investor fuel, not just for our businesses, but for our education, which is the most important thing is continuously getting around the right people that are showing up, that want to help each other, that want to get better, man. You’re only as good as you’re surrounding people, right? There’s

There’s that old saying about ⁓ you’re only as good as the five people you surround yourself with. And investor fuel for us has been a big part of making sure we’re around the right people for sure. So we appreciate you.

Mike Hambright (29:15)
Yeah, you too buddy. Thank you so much for that. So guys if you if you need some help on the finance and accounting side You definitely should check out Casey’s team at accruity. We’ll put a link down below, but it’s accruity.com We have a few more links down below As you go into the next year if you have growth aspirations in your business or quite frankly Even if you don’t you need to be buttoned up from a financial standpoint I know that a lot of folks that are in the real estate space are the hustler type Probably better at sales than accounting and that’s okay You just have to make sure you’re working with the right people so that you have a solid foundation

in your business for growth. So appreciate all of you for joining us today. We’ll see you on the next show.