Interview with Cost Seg Expert Eden Markowitz on Why Mobile Home Parks Are A Known Tax Shelter for the ULTRA WEALTHY!

Episode 110 October 31, 2023 00:39:03
Interview with Cost Seg Expert Eden Markowitz on Why Mobile Home Parks Are A Known Tax Shelter for the ULTRA WEALTHY!
Passive Mobile Home Park Investing
Interview with Cost Seg Expert Eden Markowitz on Why Mobile Home Parks Are A Known Tax Shelter for the ULTRA WEALTHY!

Oct 31 2023 | 00:39:03

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Show Notes

Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. On this episode of the Passive Mobile Home Park Investing Podcast, Andrew talks with the highly experienced cost segregation expert Eden Markowitz from Madison Specs, one of the largest cost segregation firms in the country with over 17 years of experience.

In today's episode Eden and Andrew discuss why Mobile Home Parks are one of the best asset classes in commercial real estate for COST SEGREGATION! They do a deep dive into what cost segregation is, Why it is so important right now for Mobile Home Park investors and what the best ways to use it are in order to maximize your tax savings via accelerated depreciation. Tune in now to learn how you can maximize your tax savings via passive mobile home park investing!

 

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***

 

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 2,500 lots under management. His team currently manages over 40 manufactured housing communities across more than 10 states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Check out KeelTeam.com to learn more.

Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews:  https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy, Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew’s story at AndrewKeel.com.

Are you getting value out of this show? If so, please head over to iTunes and leave the show a quick five-star review. I have a goal of hitting over 500 total 5-star reviews, and it would mean the absolute world to me if you could help contribute to that. Thanks ahead of time for making my day with your five-star review of the show.

Would you like to see mobile home park projects in progress? If so, follow us on Instagram: @passivemhpinvesting for photos and awesome videos from our recent mobile home park acquisitions.

 

Talking Points:

00:21 - Welcome to the Passive Mobile Home Park Investing Podcast

01:34 - What is a cost segregation report? And when should you order one?

06:00 - Writing off CAPEX expenses

08:13 - Structural versus land improvements

10:50 - Bonus depreciation and the different parts of a mobile home park

14:00 - Tax savings

14:50 - Bonus depreciation phase out, 80% in 2023

16:00 - Flipping mobile home parks and the 25% depreciation recapture tax rate

17:45 - The 1031 Exchange

20:05 - The requirements for getting the real estate professional status (irs perspective)

21:09 - Getting a cost seg on a $200,000 purchase price?

22:06 - Are there additional audit risks with getting a cost seg report?

23:25 - Case Study for a property with a purchase price of a million dollars

27:35 - Goodwill allocation

31:00 - Quick calculation for cost segregation savings

32:00 - The importance of timeliness and documentation

33:22 - Depreciation against capital gains tax

36:34 - Educate yourself and spread the word on cost segregation and saving money on taxes

37:51 - Reaching out to Eden

38:00 - Conclusion

 

Links & Mentions from This Episode:

LinkedIn: https://www.linkedin.com/in/eden-markowitz-11869982

Facebook: https://www.facebook.com/eden.markowitz/

Eden’s email: [email protected]

Keel Team's official website: https://www.keelteam.com/ 

Andrew Keel's official website: https://www.andrewkeel.com/ 

Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel 

Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast

Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/

Twitter: @MHPinvestors

 

Quotes:

“Cost segregation basically is accelerating your depreciation.” - Eden Markowitz

“So improvements are always great for cost seg studies. It's kind of a different way because we're not looking at existing structures. We're looking at your budgets and what you spend on it.” - Eden Markowitz

“The bonus depreciation is really a big deal for mobile home parks.” - Andrew Keel

“Just as a rule of thumb, probably somewhere between 400k and 600k tax deduction for that year if you purchase a park for a million bucks.” - Eden Markowitz

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