Growing Your Wealth Through Real Estate With Dr. Nate Lambert
Dr. Nate Lambert is a real estate investor, a world traveler, 45 countries, and counting. He’s a psychology Ph.D., the father of five boys, a philanthropist, and an international speaker. He flips roughly 20 houses annually and has over 50 rental properties, numbers that continue to grow every year, he has helped more than 180 people find the right real estate deals in 46 states. His goal is to achieve over $100,000 per month in passive income and to help thousands of people become real estate millionaires.
Dr. Nate Lambert is also the author of the Amazon bestseller book, Active Life Passive Income.
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Brett:
I’m excited about our next guest. He is a real estate investor, a world traveler, 45 countries, and counting. He’s a psychology Ph.D., the father of five boys, a philanthropist, and an international speaker. He flips roughly 20 houses annually and has over 50 rental properties, numbers that continue to grow every year, he has helped more than 180 people find the right real estate deals in 46 states. His goal is to achieve over $100,000 per month in passive income and to help thousands of people become real estate millionaires, including you. Please welcome to the show with me, Dr. Nate Lambert. How are you today?
Dr. Nate:
Hey, I’m doing great, so good to be with you.
Brett:
I’m excited to get to know a little bit more about your story and your focus. We are going to be talking about pay 66% less taxes with Dr. Nate Lambert. Dr. Nate is out of the great state of Utah. And he’s got some secrets to share with us today. But before we go there Nate, would you help me and our listeners get to know you better by telling a little bit more about your story and your current focus?
Dr. Nate:
Yeah, you bet. So I was a board psychology professor. I was just all by myself writing these research papers that nobody really reads or cares about. I did really well. In fact, I was traveling around the world presenting my research, had a lot of publications, but I just wanted something more, I read a book on real estate investing. And I just said, this is what I want to do. So I took the risk, I just quit my job as a professor and decided and just went all in. And it was scary. At first, I didn’t make a ton of money. But finally found the right group and the right program. And, boy, it really took off. And you know, as you heard, now I’m traveling around the world with my family in 2019, we spent three months on a family vacation, visited 14 countries. So you know, it’s just been for me, it’s all about financial freedom, the chance to do what you want when you want, where you want with whom you want for how long you want. So that’s what I love about real estate investing.
Brett:
Love it. Great, great introduction, and I love that you have five boys. I also have five kids, it’s just a little bit of the opposite. It’s four daughters and one baby boy. And so we just got back from a whole nine days of traveling. And that was a lot. So three months. That sounds like an adventure and 14 countries. Wow, you guys are incredible. How old your boys?
Dr. Nate:
My boys range from two to 15.
Brett:
So it’s pretty fun. Excellent. Well, let’s dive right in. Well, before we dive into the show, though, I want to take one other step back I believe, Dr. Nate that we’ve been all been given certain gifts in this life. And you know, some people call these superpowers, some people call them strengths. I believe in their God-given gifts, these gifts have been given to us to be a blessing and help to others. So I’m curious, maybe go back to the university days or the high school days, and kind of maybe identify one or two of the gifts that you believe you were given? And how does that help how you help and bless people today?
Dr. Nate:
I love people. I just love connecting in and listening and getting to know people. I feel like I’ve ultimately become a collaborator. And I think that helped me as a professor to write papers together and create Win-Win situations. And then I use the same skills that I’ve owned as a professor in my real estate business. Because you know, in real estate, it’s all about collaborating. You don’t have to do this by yourself. In fact, I think it kind of sucks to do but do it by yourself. It’s way better. To connect with other people. You can bring money partners, you can bring contracts to me, literally I tried to have the team do almost everything for me. means that I can go and do the fun things in life that I want to do and not have to be doing all the grunt work, that’s just not a lot of fun. So it’s all about collaborating with partners. And you can do it without using any of your own money or even using your own credit.
Brett:
Beautiful. So, love people connect with others, getting to know people, collaborating, working on teams, working together, the journey is better together than by yourself. Is that a fair summary, Dr. Nate?
Dr. Nate:
Yes, a great summary.
Brett:
Excellent. I can definitely relate with that, you want to make sure that the journey is gonna be fun, not only for yourself and your partners but your family to and bringing everyone along for the journey. Otherwise, you might get to that destination, look around. There’s not a lot of people that you really care about that are with you, or people that you’ve helped. So make sure that you’re doing it together as a team, right team sport here and real estate, for sure. So now let’s focus on the subject at hand, which is the big secret here, how to pay 66% less in taxes? So go, what’s the biggest secret there, Dr. Nate Lambert?
Dr. Nate:
Well, I’ve done a lot of different tax-saving tools. And you know, making close to six sounds very close to seven figures a year. So that’s a lot of money that the government could be taking from me. And I’m like, I would much rather have that to buy more properties than pay to the government. So I’ve tried a lot of different things, retirement accounts, I mean, you can donate as you can get a write-off as big as like 135,000. Through retirement accounts, I’ve done some great, creative stuff like that, but my favorite, and paying my kids you can get, get 10,000 or so write-offs for paying your kids. I mean, there are so many great ways to do it. But my favorite, best tip that I have for taxes is the accelerated bonus depreciation that the Republican Congress passed a few years ago. And what this does, so let’s just say you bought a house for 400,000, you could and then you rent it out. So it has to be, you have to buy it and have it rented out or at least advertised in that year that you want to write it off. So you buy a house for 400,000. And then you can get 10 years’ worth of depreciation all at once. So usually get 27 and a half years, with this bonus depreciation, you can get 10 of that in the first year. I mean, so down the road, essentially, you’re not getting more tax benefit, but you’re just getting it getting your cash upfront, which I think is super powerful. So let’s just say you buy a house for 100,000, or for 400,000. The tax write-off on that it’s usually around 25%. So I could get a $100,000 tax write-off for buying that $400,000 property. So I already wanted to buy a rental. I mean, it’s in my plan, now I can just get huge tax write-offs for buying those rental properties. And so, it works great. You buy like nine of those, and then now you’ve written off 900 grand, right? I mean, there’s just and here’s the magic of it, too. Here’s one of the things that I love the best is that you can have your cake and eat it too. Because so many entrepreneurs, write everything off and then on their taxes, they can’t qualify for any loans because they’re not showing any income. What I love about this accelerated depreciation strategy is you know, like we just moved into our dream house. About a year ago, I couldn’t have qualified for that if I had written everything off. But because I did this, I still showed some income. But then essentially what the accelerated depreciation lets you write it off, but then for lenders, you get a counted back toward your income. And so so you have your cake and eat it too.
Brett:
That’s amazing. The cost segregation accelerated depreciation for our listeners. As a reminder, depreciation is one of the number one reasons to own investments in real estate because can offset the cash flow that’s coming in and essentially correct try to create zero tax years. And so what Dr. Nate Lamberts’ referring to is accelerating the timeframes of which he typically takes it multifamily 27 and a half years commercial 39 and then when you do that, you can get a huge write-off but I do love the way you added that piece the cake and eat it too. Because you’re right as business owners, entrepreneurs, if we’re writing a bunch of stuff off, doesn’t look great on a balance sheet. The bank doesn’t necessarily they’re not gonna they’re gonna hold that against you, right because your income is going to be your income. But what we’re saying here, Dr. Nate Lambert, if I’m hearing you correctly is no they allow you to use it to write it off but they allow you to put the back end as if you made it. Is that a fair summary?
Dr. Nate:
That’s exactly right.
Brett:
Beautiful. I love that. And those are set to expire in 2025. And or at least the bonus depreciation side of it. So hopefully, Congress and the Senate, and the Biden administration, it continues it. But what’s your outlook on that? Because I know they’re talking about taking away the stepped-up basis, and maybe even eliminating or limiting the 1031 exchange. Any thoughts on that?
Dr. Nate:
No one has a crystal ball. You never know what the administrations can do. I’m just crossing my fingers that they don’t pull too many things away. But the nice thing is listening to shows like this and finding out smart entrepreneurs can always find creative loopholes, to write things off. So you know, if they do some of those things, I’m seeking to find other strategies.
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