The Tax Playbook for Real Estate Investors with Larry Pendleton Ep 11

Episode 11: The Tax Playbook for Real Estate Investors with Larry Pendleton Taxes are one of the biggest levers in real estate, but also one of the most misunderstood. That’s why Save to Zero hosts Zach Richards and Mike Seidl sit down with CPA and real estate investor Larry Pendleton to learn how smart investors actually think about taxes, cash flow, and long-term wealth. Larry brings a rare mix to the table. He’s not only advising investors… he is one, which means everything he shares comes from real-world experience.  We dig into how Larry stays on top of constant changes in tax law, why masterminds and networking play a bigger role than most people realize, and how “real-world reconnaissance” helps him focus on what actually matters to clients. You’ll also hear a simple breakdown of depreciation and cost segregation (including Larry’s famous Big Mac analogy), and a clear explanation of what investors can and can’t do when it comes to using losses to offset income. On the investing side, we explore note investing, why Larry shifted focus in that direction, and the realities of managing properties versus just owning the paper. Towards the end of our conversation, we chatted about how to create more homeowners, what realistic expectations look like, and where opportunities still exist for long-term investors. You’ll Learn in This Episode: Why staying educated in real estate and tax strategy is non-negotiable How masterminds and networking events directly shape better decisions What “real-world reconnaissance” means The difference between owning property and owning the mortgage Why note investing can simplify your portfolio How difficult it is to find an outside loan servicer A simple way to understand depreciation using the Big Mac analogy What cost segregation is and how it accelerates tax savings The role of Form 8582 in tracking passive losses When real estate losses can offset your income What qualifies someone as an accredited investor When it makes sense to hire a fractional CFO  How investors can help create more accessible homeownership Quotes “For non-real estate income, you can’t just use real estate losses to offset it unless you meet very specific criteria. Your tax situation matters more than your investment.” “For a real estate investor, the second most important form on your tax return is Form 8582, because that’s what tracks your passive losses year after year.” “More millionaires have been made in real estate, but not all of them actually have cash flow. A lot of that wealth is tied up in equity.” “If trying to be the financial expert in your business is getting in the way of you growing your business… It’s time to bring in help.” About Larry Pendleton Larry Pendleton’s mission is to help people build cash flow and save on taxes. He is a CPA and tax strategist with over two decades of experience, specializing in tax strategies for investors.  Larry’s company, PC Financial Services, has helped thousands of investors across the US with tax planning, saving them hundreds of thousands of dollars in taxes. In addition to tax consulting, PC Financial Services adds value through cost segregation studies, fractional CFO services, accredited investor validation, and tax preparation.  For over a decade, Larry has also been a real estate investor and active participant in various ventures across the US, including mortgage notes, multi- and single-family rentals, syndications, corporate housing, short-term rentals, new development, and flips.  Along with his current portfolio of notes, PC Financial Services educates investors on how to be the bank and invest as private lenders to build passive income secured by real estate. Larry serves on various nonprofit Boards that promote youth development and financial literacy. He also serves on the Planning Commission for the city of Norfolk, VA.  Finally, Larry is the best-selling author of The Leader's Playbook, is married to his wife, Whitney, and is the proud father of 2 sons, Larry III and Wesley. Find The Investor's CPS Online Find REI Capital Guys For Investors & the Fund – Learn how the Fund works and book a call For Borrowers & Deals – Get funding and support for your next investment