If you’re serious about building wealth through real estate, you can’t afford to ignore the tax side. In this episode, CPA and active investor Sean Graham breaks down how cost segregation and bonus depreciation can save you (and your investors) tens or even hundreds of thousands in taxes—without changing your investment strategy. We cover how to use cost seg the right way, why most CPAs are doing it wrong, and what high earners need to know about the latest tax bill that could bring back 100% bonus depreciation. Whether you're a GP looking to raise smarter or an LP trying to boost after-tax returns, this episode is non-negotiable.

What Cost Segregation Actually Does for You

• Reclassifies components of a property to accelerate depreciation over 5–15 years instead of 27.5 or 39.
• Allows investors to take massive deductions in year one—sometimes more than the cash they put into the deal.
• Creates phantom losses on K-1s that can offset other passive income or gains.

Bonus Depreciation: What It Is, and Why It Matters

• 100% bonus depreciation (introduced in 2017) allows investors to deduct qualifying property in year one.
• It's phased down since 2023 but may return under new legislation.
• Huge benefit for both LPs and GPs—particularly when paired with proper tax strategy.

Using Cost Seg to Raise Capital More Effectively

• Smart GPs use depreciation estimates during the raise to attract savvy investors.
• Many LPs care more about the tax benefits than the projected cash flow.
• For deals over $1M, cost seg should be factored into your underwriting and pitch.

The “Look-Back” Strategy for Missed Depreciation

• Allows owners to retroactively apply cost segregation—even years after purchase.
• No need to amend prior tax returns; benefits can be taken in the current year.
• Especially powerful when strategic timing aligns with real estate professional status.

Avoiding Common CPA Mistakes

• Many CPAs aren’t familiar with real estate—leading to missed deductions and bad advice.
• Make sure your tax pro understands real estate-specific strategies like bonus depreciation, short-term rental loopholes, and REPS.
• Ask the right questions: Do they know how to handle depreciation recapture? Real estate professional status? IRA investing?

How to Work with a Cost Segregation Firm the Right Way

• Involve a cost seg firm early—before closing—so you can plan ahead and market benefits to investors.
• Studies typically cost $5K–$10K, but often result in six-figure tax savings.
• Smaller properties can use a “condensed engineering study” for reduced fees without sacrificing IRS compliance.

MavenCostSeg.com/Blank

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Most people don’t know this—but you can invest your IRA or 401(k) in real estate instead of leaving it trapped in mutual funds. In this episode, I’m joined by Damion Lupo, founder of eQRP, to explain exactly how to unlock your retirement savings and use them to invest in apartments, storage, and more. We walk through the process step-by-step, dispel common myths, and show you how to avoid one of the biggest tax traps most investors don’t even see coming: UBIT. Whether you’re a passive investor or a GP raising capital, this is a must-listen.

Why Most Investors Don’t Know About This

• Financial advisors don’t promote these options because they lose fees when you take control.
• Most investors have old 401(k)s or IRAs they’ve forgotten about—but those funds are eligible for self-direction.
• Online platforms like Schwab and Fidelity won’t show you the option to invest in real estate—you have to know to ask.

How Self-Directed Accounts Actually Work

• Self-directed IRAs and solo 401(k)s give you full control—you can invest in real estate, crypto, gold, and more.
• The right setup gives you checkbook control and removes delays caused by custodians.
• Solo 401(k)s (like EQRPs) offer faster transactions, better flexibility, and fewer limitations than traditional IRAs.

The UBIT Tax Trap—and How to Avoid It

• Using leverage in real estate deals inside a self-directed IRA can trigger UBIT—up to 40% in surprise taxes.
• Solo 401(k)s are exempt from UBIT, even in leveraged deals.
• You can convert from an IRA to a solo 401(k) before the deal sells to avoid the tax completely.

Smart Strategies for Passive and Active Investors

• Passive investors can use these accounts to invest in syndications—earning tax-free or tax-deferred returns.
• Active investors (GPs) can raise more capital by educating others on how to invest through their retirement accounts.
• Damion’s team offers tools like books, webinars, and white-glove onboarding to help GPs guide investors through the process.

Rules, Limits, and Legacy Planning

• You can’t use these accounts to buy personal assets, rehab your own property, or benefit directly from the investment.
• You can borrow up to $50K from your solo 401(k) for any reason and pay yourself back—with interest you choose.
• Setting up retirement accounts for parents or family members can create powerful tax-free legacy wealth.
• Roth solo 401(k)s allow real estate investing with leverage and no taxes on gains—making them the most powerful tool in the tax code.

GET A FREE BOOK www.TheMichaelBlank.com/QRP

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In just a few years, Chad Schieler went from zero to over 700 units, ditching his high-paying W2 job to build a real syndication business from scratch. And he did it the hard way - solo, self-funded, and battle-tested.

In this episode, Michael Blank sits down with Chad to unpack the gritty, unfiltered truth behind the rise of Focus Capital. They dive deep into the growing pains of scaling fast - partnership failures, capital raising fears, management misfires, and what it really takes to build a machine that lasts.

If you think you’re ready to go full-time, this episode will either snap you out of it - or show you the way forward.

Head over to https://thefreedompodcast.com/500 to submit for a chance to win free merch and be highlighted in episode 500!!!

From W2 to 700+ Units: Why Chad Walked Away

• Built a career in credit card processing—but hit a wall with taxes and purpose.
• Real estate started as a tax strategy and turned into a full-blown mission.
• Why chasing a deeper “why” made walking away from comfort worth it.

The Truth About Partnerships

• Chad’s first syndicated deal looked perfect—until it nearly fell apart.
• Why being $4K short led him to take control of the entire business model.
• How too many “chiefs” in asset management created chaos—and the fix.

Raising Capital When It Doesn’t Come Naturally

• Chad self-funded his first four deals—then hit a ceiling.
• The mental shift that helped him want to raise capital.
• How his best capital raiser came straight from his LP base.

Scaling a Real Business (Without Burning Out)

• The struggle of hiring when revenue is lumpy—and what worked for Focus Capital.
• Why Chad hires 12 months ahead of revenue (and how it paid off).
• The non-negotiables that protect his time and family life.

When Bigger is Actually Easier

• Why 100+ unit properties are less stressful than small ones.
• The mistake most investors make with property management on smaller deals.
• How Chad’s early inspection and financing mistakes shaped his future deals.

Visit Focus Capital

chad@focuscapital.com

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