How can high-earning business owners take advantage of real estate investing tax benefits?

 

Michael Guthrie, a successful ATM business owner, made the shift into multifamily real estate investing to leverage tax advantages like depreciation. He and his wife restructured their business so she remained active while he pivoted to real estate and obtained real estate professional status.

 

Michael and Samantha Guthrie have successfully owned and operated a multimillion-dollar automated teller machine distributorship, Automated ATM Solutions, Inc., for more than 25 years, and currently run over 8000 ATMs nationwide, providing a residual income stream used for multifamily investing. They have 23 years of real estate investment experience in single family, multi-family and commercial real estate. Their additional experience includes real estate sales, mortgage brokering, and property management of apartments and single-family homes. After realizing the advantages of multifamily investing for themselves, they have made it their mission to provide others with an avenue to passive income.

 

[00:02:20 - 00:03:07] Opening Segment

Michael and his wife started out buying single-family rentals, acquiring 7 properties within 6 months.

They owned these for 10 years before pivoting into multifamily real estate investing.

 

[00:03:20 - 00:04:11] The Allure of Multifamily Investing

They discovered multifamily investing through a Tony Robbins program and were attracted by the tax benefits.

Multifamily allowed them to offset passive income from rentals with losses from multifamily partnerships.

 

[00:04:31 - 00:05:39] Restructuring the Business for Real Estate Professional Status

They restructured the ATM business so Michael's wife remained active in it and he exited.

This allowed Michael to qualify as a real estate professional and offset his wife's active income with his real estate losses.

 

[00:05:54 - 00:06:58] Avoiding the Tax Tail

Michael focuses on cash-flowing investments, not just tax benefits. Depreciation is a bonus.

He warns against choosing poor investments only for tax purposes.

 

[00:07:25 - 00:08:24] Qualifying for Real Estate Professional Status

Michael is a general partner on deals with substantial duties beyond capital raising.

This gives him the hours and material participation needed to qualify.

 

[00:08:44 - 00:20:41] Forming Multifamily Partnerships

Joined a mastermind with top real estate syndicators

Invested significant capital in multiple deals

Was later brought on as a capital raiser due to large investments

 

[00:20:50 - 00:27:00] Closing segment:

Best deal: A 50,000 deal that doubled in just 14 months.

Worst deal: A partnership with someone he really didn't know

Top lesson learned: Take your time and do your due diligence, but make a decision

 

Quotes:

 

"Our approach was to join a mastermind that of some of the top individuals that are actually out there syndicating deals. And that's how we got started putting money into deals as a limited partner." - Michael Guthrie

 

"If you choose not to decide you still have made a choice." - Michael Guthrie

 

Connect with Michael:

Website: https://pacificcapitalllc.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

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