Keep More of What You Make: Short-Term Rental Tax Strategies With Jonathan Lazzarino

Jonathan Lazzarino (00:00)
Well, that’s a really good question. I wasn’t used to the type of volume that Avery and Luke gave me. So I learned a lot. This is kind of strange answer, I think, but I learned a lot about how even if you’re doing well that you have to offset your taxes. Because the first year I was

doing more volume than I’d ever done in Texas and and I just wasn’t as prepared as I’ve become. So that was one valuable lesson is that it’s not necessarily how much you make, but it’s how much you keep.

Quentin Edmonds (01:01)
Welcome to the Real Estate Pros Podcast. I am your host, Q Edmonds, and I am excited to be here today. I have a fantastic guest. He’s an agent, but also a seasoned investor. And so this is what I live for, to be able to look through the lens of other people’s experience. So we can just learn from what they’re doing, how they did it, their special niche, special sauce.

So I’m excited. I’m excited today because we get to learn from Mr. Jonathan Lazzarino. How are you doing today, sir?

Jonathan Lazzarino (01:31)
Doing well, Q. Thanks so much for having me. I’m really looking forward to this. And and you nailed it, nailed the last name. I appreciate it.

Quentin Edmonds (01:37)
I appreciate that, man. I believe putting respect on people’s name. Also, I believe time is our much most precious commodity. So I’m gonna say this now and I’ll probably say it again. Thank you for your time, sir. Thank you for being here. I greatly, appreciate it. I love to dive right in. So I would love for you to tell the people what’s your main focus these days. If you don’t mind, give us a little origin story.

Kind of how you got into the spaces that you’re in and then tell them where you are in the world. People love to know where people are geographically. And so, Mr. Jonathan, sir, you have the floor, my friend.

Jonathan Lazzarino (02:07)
Thank you, Q. I appreciate that. Yeah. So so I help people with short term rental investments and also second homes that they like to offset their income over in the coastal Alabama area, which would be Orange Beach, Gulf Shores, and Fort Morgan. And I’ve helped a lot of people achieve success through through doing that. I got into this, so I’ve always loved real estate. I started out with

long-term rental helping actually helping my parents with long-term rental investing. And I just always enjoyed that. And then I actually moved to Texas for a while and got into real estate, helped a lot of first-time home buyers and got into became a realtor with that my ultimate goal being to help me with my real estate investing, which was always my passion. And anyway, I enjoyed that. I learned a lot, but I

realized I would rather work more directly with investors. And I heard Avery Carl’s first podcast on bigger pockets. And it really changed my way of thinking. And I was like, well, I love the idea of short-term rentals. I’ve only thought of multifamily and long terms. And so I it shifted my mindset a little bit. And I reached out to her and she said, hey, we have a spot for an agent in Gulf Shores. And I’d been going

to vacation there for, twenty five plus years. So I love the area. And and anyway, long story short, I moved to the area. my wife thought I was crazy at first, but now she loves it and is very thankful. So we packed up and now seven or eight years later this is this is home.

Quentin Edmonds (03:33)
I love stories. I love listening to people’s journeys. So thank you, man. Thank you for taking us through the journey, kind of letting us know where you are now. And so, Jonathan, I often say destiny has no wasted moments, right? Like we’re learning from every leg of the journey, nothing’s wasted, right? It’s either it’s a it’s a lesson that we’re learning, it’s no losses, it’s only lessons,

We find our way through trial and error sometimes. It kind of reinforces why we do what we do today. I would love to know what has the journey revealed to you about yourself? Has it made you more disciplined? Has it made you more humble? Like what has this journey revealed to you, Jonathan, about Jonathan?

Jonathan Lazzarino (04:13)
Well, that’s a really good question. I wasn’t used to the type of volume that Avery and Luke gave me. So I learned a lot. This is kind of strange answer, I think, but I learned a lot about how even if you’re doing well that you have to offset your taxes. Because the first year I was

doing more volume than I’d ever done in Texas and and I just wasn’t as prepared as I’ve become. So that was one valuable lesson is that it’s not necessarily how much you make, but it’s how much you keep. So since then I’ve learned a lot of ways to try to offset that. But it that’s more of a monetary thing. I’ve also learned that it is important to,

have a good work life balance because when I moved here I was just kind of working seven days a week and I really enjoy real estate. But a couple of years into it I was like my wife basically sat me down and said hey we need to get you more hobbies we need to get you to reconnect with your friends and everything. So that was an important lesson too that I really wasn’t expecting because they were everybody was happy I was doing well but even though I love real estate and I’m passionate I think sometimes people get

a little too caught up in that. I did for sure. And and now I’m much more well balanced and it was a l hard lesson to learn because it I just had to reconnect with some friends and everything that I hadn’t talked to in a while and it was a very important lesson. I’m glad it only took me a couple of years and I didn’t get too far into it.

Quentin Edmonds (05:36)
And great on your wife, man, for even saying that, like reconnecting with your friends. me and one of my best friends, we say you we need everything in moderation, even moderation and moderation, right? So you gotta have that balance. And I always ask that question because as at the center of what we do is us.

And like what are what is our motivation? What’s powering us? Is there enough males? Are we getting enough rest? everything we do has to have systems operations, right? One of my favorite books is James Clear, Atomic Habits. And he says, we fall to the level of our habits. That’s what we do, right? And so I would love to know what’s maybe one operational thing you’ve put in place.

Let’s say the last two years that has really helped you be successful.

Jonathan Lazzarino (06:55)
I used to be a lot more old school and I didn’t rely too much on s CRMs or management software. That’s one thing that Avery has really helped me to learn how to manage because I’m much more old school. I’m just a pick up the phone, take handwritten notes kind of guy. And that has helped me stay much more organized. So that that’s one

important thing that now I’m I have good systems in place with that. other things that I think are more on a personal level, I do take off. This is more on the work-life balance. I try to take off at 7 30 every evening and spend family time. We have family dinner and we just spend time together and that time is precious to me. So unless it’s an emergency, I’ll I just put up my phone and that has helped me mentally and I feel like I’m way better at my job that I’m able to reset.

And also it try to take off some Sundays unless I have clients coming into town, to, hang out with a family, do s go to the beach, do things like that. So that is very important and I feel it actually has helped my career versus some people, at first you think, I’m gonna take off a little bit, I’m gonna miss this opportunity. And in fact, that’s actually helped me achieve more success to do it this way.

Quentin Edmonds (08:05)
I love the fact you’re going this direction, setting a boundary, when to start work, hanging out with your family. I’ve talked to enough people to know that the people that do this, they see the great benefits from it. And there’s some people that don’t do it that they are kind of like in this perpetual kind of rat race.

And so I appreciate you saying that. And this is not to shame the people who don’t have that balance. It’s just an opportunity for you to kind of think like, okay, maybe I should be setting boundaries. Maybe I should be setting that this is a cutoff time that my day’s gonna end. and I think if you try it, you may reap some benefits that you never, never expected in the in the most positive way.

Jonathan, what’s next? Which what’s your next real goal? What are you looking to solve at scale next, sir?

Jonathan Lazzarino (08:46)
So right now at this point time of year, as far as real estate, I’m the busiest that I’ve that I’ve been all year, but mainly this typically is one of my busiest time help again with the tax side of things, the bonus depreciation is something that a lot of my clients utilize to offset their taxes, which there’s if people aren’t familiar with that, there’s a short-term rental loophole that if you buy one and you place it in service that year, you can use that to offset a substantial amount of your taxable income. But there are many.

many very important things you have to follow to get these benefits. so it’s busy on that front and I’m very thankful for being busy. then I’m also looking for my next purchase. I am an active investor myself. So I just got my pre-approval yesterday. and I’m looking to put something in service before the end of year two. and that’s kind of what I’ve got going on that are big things.

And then I’ve got my vacation plan in December when it’s all done. So that’s the I’m excited about that too.

Quentin Edmonds (09:42)
Yeah. Listen, big smile on my face. I got a vacation planned in December as well. So my birthday is in December. But also I’ll be on my first cruise in December. And so, yeah, so absolutely. So when you said December, my inside’s prepped up. It’s like, yes, I hear you.

Jonathan Lazzarino (09:59)
December, that’s right.

Quentin Edmonds (10:00)
I love getting everybody that comes on the show, getting everybody’s perspective when it comes to relationships.

So I would love to hear your unique perspective on relationship within business, How do you build healthy relationships? What are some of the healthy relationships you have within business? And then, sometimes relationship bleeds from business to personal. So I just want to hear your perspective on the word relationship, Jonathan.

Jonathan Lazzarino (10:57)
Absolutely. I and I think that’s a really good question. And in my opinion, I think a lot of people look at real estate as sales, because yes, we are commission-based sales, but I look at it as building relationships is the most important foundation of real estate. And one thing that when I even early on when I first got my license, I was really focused on the fiduciary side of being an agent. I never worked in a career or anything where you were a fiduciary.

So I decided early on, I was like, hey, if I just follow this one thing, I think I can achieve success because if you are fiduciary, you put your client ahead of your own interests. And basically if you follow that one rule, and I think that has helped my career get to where it is, because if for instance, if I don’t have a good answer, I’m not going to fabricate it. I’m going to be honest with all of my clients. I think they see that I’m being straightforward and honest and they appreciate that.

And that’s the way I’ve tried to operate my whole career. Now, there’s many times where I have become like close friends with clients, and that’s also any one of my clients, even if we don’t hit it off personality-wise, I’m gonna put be a fiduciary to them and put them first. But then there’s one client, for instance, one of my earliest ones, the short-term rentals here. He loved the area so much that he moved here. helped him buy a primary, which is I don’t typically help with primary residences, but

I did help him and he’s now one of my best friends. He lives in the area. and he’s bought like five short-term rentals with me too. And and so anyway, I really love the real the relationship side of real estate. And a lot of times I have a lot in common because if you are passionate about real estate investing, we already have one thing right off the bat that we could both be passionate about and have in common. So that’s

I’d normally hit it off with the majority of my clients just talking about that ’cause I can nerd out about that all day long.

Quentin Edmonds (12:48)
I love your perspective on relationships. And I love how sometimes you just you do become friends, sometimes you become best friends, sometimes become close friends because of the investment of time that you spend with the person, and because your goals start to line up. I always say

relationship is like a community. And I believe community is common unity. It’s people that’s in common unity. And when you find unity when people, you don’t still let them go. You build the community. You build the relationship. You build an ecosystem where we can where we can thrive together. Just not on a business level, on a personal level.

Jonathan Lazzarino (13:21)
love the way you put that cuke. I’m in Unity. I like that.

Quentin Edmonds (13:24)
I’ve been asking you questions, but I want to make sure I don’t miss maybe something that you wanted to say. So I don’t know, maybe you came in with a message on your mind about your business or a message about inspiration or education. Like I want to make sure that if there’s something on your mind that you came in that you wanted to address, wanted to say, wanted to give to people, I kind of want to make space for that. So if it’s something like that, sir, I want to make sure we land that.

Jonathan Lazzarino (13:48)
Absolutely, Q and I really appreciate that. if anybody does have questions about the Alabama Gulf Coast, I am a an investor myself. I really do enjoy helping people buy investments and also properties that’ll offset their income. and I do with a short term shop, I do help a lot of people help learn to self-manage, which is, when it it’s all ties into the bonus depreciation, getting your reps in and everything.

so if anybody has any questions, it’s getting a little late in the year, but we still have maybe a month or so to be able to put something under contract to utilize bonus depreciation. So if anybody is considering it, now’s the time to kind of put that on the radar for this year. But then of course, if you’re looking for next year, it’s the when you put it in service. I love what I do and I’m happy to talk to anybody about

investments or properties here in the Gulf Coast. and that’s what I do and that’s what I love.

Quentin Edmonds (14:39)
I appreciate you for coming on. I appreciate you sharing. If someone wanted to reach out to you, reach out to you, connect with you, collaborate with you, learn more about what you’re doing, how can they get in contact with you, sir?

Jonathan Lazzarino (14:50)
Absolutely. So my email is Jonathan at the short termshop dot com. That’s J O N A T H A N. I know there’s a lot of ways to spell that. And then at the short termshop dot com, you can connect with me there or on Facebook, Jonathan Lazzarino. you can message me there, get a lot of clients through there too. So yeah, if you if you do want to talk, I’m pretty easy to line up a call with. And anyway, very, happy to talk to anybody that that’s interested.

Quentin Edmonds (15:15)
let me say three things to you sincerely. First one, the reiteration. Thank you for your time. I appreciate you coming on. Thank you so much. I find it very, valuable. Thank you. Secondly, thank you for the gift of your integrity, the gift of your authenticity. I believe when we are our authentic self, we plant seeds. And those seeds, even seeds and breadcrumbs, I would say both. And those seeds can be planted at any given time. And those breadcrumbs can lead people on a path to success.

So I think you came on, man, and planted some real seeds, some real breadcrumbs for people to kind of follow your path to success and kind of implement their own. So appreciate that. Lastly, man, thank you for the way you think. Thank you for your mindset and bringing that mindset to this platform. Jonathan, I appreciate you coming on, sir.

Jonathan Lazzarino (15:58)
Well, thank you so much, Q. I really appreciate you and you’re an amazing guy. I’m glad I got to meet you too. So thank you.

Quentin Edmonds (16:04)
Well, listen, y’all heard Mr. Jonathan. His information is in the show notes. Please get in contact with him. Go short-term shop. Shout him out. Get in contact with him. But definitely make sure you’re subscribed here because I promise you we’re going to continue to bring up amazing people just like thee, Jonathan. Thank you so much. And everyone else, listen, y’all have an incredible day.