Podcast Summary: The Money Mondays
Episode: How I Wiped Out $2M in Taxes with One Real Estate Move w/ Cody Sperber 🏡 E116
Release Date: April 7, 2025
Host: Dan Fleyshman
Guest: Cody Sperber
Introduction
In this episode of The Money Mondays, host Dan Fleyshman welcomes real estate mogul and entrepreneur Cody Sperber to discuss a transformative real estate strategy that enabled Cody to eliminate over $2 million in taxes through a single property investment. Filmed in the studio Move in Miami due to a series of high-profile events, this episode delves deep into Cody's extensive experience in real estate, his innovative business ventures, and his philanthropic endeavors.
Guest Bio: Cody Sperber
Cody Sperber is a seasoned real estate investor with 22 years of experience, having executed thousands of transactions ranging from small single-family homes to large commercial developments. As the founder of Clever Investor, an online education platform launched in 2009, Cody has educated approximately 85,000 students on real estate investment strategies. Beyond real estate, he has diversified into other sectors, notably founding Floor Daddy, a flooring business aimed at outmarketing industry giants through innovative strategies and scalable operations. Cody's mentorship under industry leaders like Tommy Mello and his strategic partnerships have been pivotal in his business growth.
Notable Quote:
Cody Sperber [01:32]:
"I started Clever Investor, the online education brand in 2009... it grew into one of the largest online education brands and had about 85,000 students come through that, which has been a real blessing."
Making Money: Real Estate Strategies
Wholesaling Real Estate
Cody introduces the concept of wholesaling, a strategy where investors act as intermediaries between motivated sellers and cash buyers. By securing properties under contract and assigning these contracts to buyers for a fee, wholesalers can generate substantial income without owning the property long-term.
Key Points:
- Motivated Sellers: Typically 10-15% of homeowners facing life events like divorce, inheritance, or property damage.
- No Licensing Required: Wholesaling can be performed without a real estate license, making it accessible.
- Assignment Fees: Cody emphasizes the profitability of connecting sellers with buyers and earning fees from these transactions.
Notable Quote:
Cody Sperber [05:18]:
"I become a middleman, a matchmaker. I take the motivated seller and I take the cash buyer and I work the deal and I get paid a whole wholesale fee."
Floor Daddy: Scaling Through Marketing
Transitioning from real estate education, Cody discusses his venture into the flooring industry with Floor Daddy. Leveraging his marketing expertise, he aims to outcompete established industry players by focusing on memorable branding, aggressive marketing campaigns, and scalable operations.
Key Points:
- Branding: Creation of a memorable name and jingle to enhance brand recognition.
- Marketing: Utilizes traditional and digital marketing strategies, including billboards and commercials.
- Scalability: Focuses on building systems and a strong team to facilitate rapid growth.
Notable Quote:
Cody Sperber [08:40]:
"I don't want a vehicle where AI was going to disrupt it anytime soon. If your plumbing goes down, you're calling a plumber... real estate side of things always made a lot of sense to me."
Investing: Real Estate Tax Strategies
A significant portion of the episode focuses on Cody’s strategy to eliminate $2 million in taxes through real estate investments, specifically utilizing a cost segregation study.
Detailed Breakdown:
- Property Purchase: Cody bought an 18,000 sq. ft. building for $4.25 million, which initially resulted in a tax liability of over $2 million.
- Investment Strategy: Instead of liquidating his savings to pay taxes, Cody reinvested the funds as a down payment and allocated remaining capital for property improvements.
- Cost Segregation Study: This study allowed Cody to accelerate depreciation, shifting the depreciation schedule from 37 years to just 2-3 years.
- Tax Outcome: By accelerating depreciation, Cody effectively wiped out his tax liability for that fiscal year while retaining ownership and income from the property.
Notable Quote:
Cody Sperber [00:00]:
"I did what's called a cost segregation study on the whole building and all the improvements I made... Wiped out over $2 million in taxes. But I still own the building."
Investing in Real Estate vs. Other Assets
Cody articulates why he prefers real estate over other investment avenues like cryptocurrency, NFTs, or the stock market.
Key Points:
- Tangibility: Real estate is a physical asset, providing inherent value and utility.
- Proven Track Record: Real estate has consistently proven to be a reliable investment.
- Tax Benefits: Strategies like depreciation and cost segregation offer significant tax advantages.
- Accessibility: Real estate investment is accessible to individuals from various financial backgrounds, including immigrants.
Notable Quote:
Cody Sperber [16:44]:
"It's physical. I like that it's physical. It's tried and true. It's very proven... real estate side of things always made a lot of sense to me."
Personal and Professional Development: The Importance of Masterminds and Events
Cody emphasizes the critical role of continuous learning and networking through masterminds and large-scale events like Clever Summit.
Key Points:
- Proximity to Success: Being around high achievers fosters new levels of thinking and ambition.
- Knowledge Integration: Events facilitate the internalization of new skills and strategies more effectively than solitary learning.
- Relationship Building: Networking at these events can lead to transformative relationships and mentorships.
- Masterminds: Interactive and experiential, masterminds offer invaluable ROI through shared knowledge and support.
Notable Quote:
Cody Sperber [18:27]:
"You put yourself in that environment and everything integrates, internalizes, and changes for you... One relationship can change everything."
Charity and Corporate Culture
Integrating charitable efforts into business models not only fosters a positive company culture but also enhances brand reputation and employee motivation.
Key Points:
- Purpose Beyond Profit: Companies committed to charitable causes often see heightened employee engagement and satisfaction.
- Brand Enhancement: Charitable initiatives can differentiate a brand and attract loyal customers.
- Cody's Example: Through Green Elephant Development, a portion of proceeds goes to elephant conservation, which also serves as a unique branding element.
Notable Quote:
Cody Sperber [25:55]:
"Because when you're doing things for more than money... People galvanize and work way harder and go above and beyond because of that."
Philosophy on Wealth and Legacy
When addressing the topic of wealth accumulation and legacy, Cody shares his intentions to ensure his wealth serves lasting, impactful purposes rather than being indiscriminately distributed.
Key Points:
- Foundation Over Wealth: Cody aims to establish a foundation for his children to manage, focusing on charitable impact.
- Controlled Distribution: Instead of providing large sums of money outright, he prefers structured distributions to ensure responsible stewardship.
Notable Quote:
Cody Sperber [28:24]:
"My goal is to set up a foundation that they can run and help do more charity, help do more, make more impact."
Conclusion
In this episode, Cody Sperber provides invaluable insights into leveraging real estate for significant tax savings, scaling businesses through effective marketing, and the importance of continuous personal and professional development. His multifaceted approach, combining investment acumen with philanthropic efforts, underscores a holistic strategy for building and sustaining wealth.
Final Thoughts from Host:
Dan Fleyshman underscores the importance of open discussions about money, advocating for transparency and education as crucial elements for financial success.
Additional Resources
- Floor Daddy: floordaddy.com
- Clever Investor: cleverinvestor.com
- Social Media: Follow Cody Sperber on all platforms as Official Cody Sperber or via Clever Investor.
For more insights and episodes, visit MoneyMondays.com and subscribe to the podcast on your preferred platform.