Jekyll Island Series – Dave Zook: Cash Flow, Government Tax Incentives, and Real Estate Investing
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Dave discusses the need for steady cash-flow why it’s important for stabilization of your portfolio. He describes how he took advantage of low prices with his company when it became obvious that some materials he used fell below their cost of production.
If you’re getting taxed and paying a big bill, you should think of it as a fine. The government will reward you for taking risks, so they offer incentives for tax breaks. You need to figure out what the government wants and take advantage of it.
He discusses real estate opportunities. Prices are high, but there are opportunities if you are in the right place at the right time with cash. He invests in real estate for tax benefits and for the cash flow he doesn’t generally try to flip properties. However, if someone offers a premium for a property, they will sell. If the market corrects downwards, they usually have a long-term plan for it, and they can still collect the cash-flow from tenants while they wait for the market to adjust.