Episode 097: Finding Passive Income in Real Estate with Dr. Jeff Anzalone

We're breaking from our discussion of COVID-19 and discussing life after pandemic with finding means of passive income. Specifically, how one can earn passive income through real estate. Passive income can be loosely defined as making money without actively trading your time and talent.

My guest is Dr. Jeff Anzalone, a periodontist in Monroe, LA who has created a website to help other high income earners find ways to earn passive income through real estate. However, he does not offer advice on how to be a landlord or manage properties which he argues requires too much time and becomes active income instead of passive. He is an advocate for investing in real estate syndications.

Real estate syndications are basically groups of people who pool their resources together to buy a property and pay someone to manage it (collect rent, maintain, and eventually sell it). The advantages to this arrangement is that profits earned through running the building are sent back to the investors essentially tax free as the gains from the income are offset by depreciation from the building itself.

The expectation is that the investment is sold in 7 years with the proceeds going back to the initial investors and all capital gains can be avoided by reinvesting in a new property within half a year. This allows for a passive tax free income stream if you find the right syndication that can turn a profit.