Updated about 1 year ago on .

how to use real estate to build wealth tax efficiently
The playbook on how to use real estate to build wealth tax efficiently:
1. Buy with moderate leverage
2. Cost segregate and depreciate initial capital in
3. Stabilize and borrow tax free against your asset
4. Enjoy low tax cashflow year over year
5. Eventually 1031 exchange into a larger asset and repeat
6. Die and step up basis
7. Have your heirs repeat
Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow.