The SARA Method
If you don’t understand this metric, you’ll never be able to save on taxes. It's exactly what allowed me to cut 6 figures in taxes and even get a $24,839 refund, all while acquiring multifamily properties. Master this, and you will darn near completely cut taxes at will.
The SARA method is the secret. The single most important thing multifamily investors look for is TAX SAVINGS. And the SARA method is THE thing the ultra-wealthy do to cut taxes. Let me tell you all about it. No fluff.
SARA Stands for:
Secret Savings Account - the silent wealth builder
Accelerated Depreciation - the asset lifeline
Repair vs Replace - maximizing asset value
Appreciation - the biblical mandate to multiply
To execute the SARA Method correctly, you need:
- A good multifamily property
- Data-backed insights
- The right tech tools to automate
- Streamlined and proven process
When you have these things in place, you can completely cut taxes legally. Let’s dive deeper.
1. Secret Savings Account:
- Buy rental properties with a long-term fixed-rate mortgage (ideally 30 years).
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- Make it so the tenants rent payment covers the full mortgage.
- Rent pays the mortgage over many years, building equity that serves as your own Secret Savings Account.
2. Accelerated Depreciation:
- Depreciate full rental property cost in year 1 instead of over 27.5 years.
- Creates large paper loss to offset income and minimize taxes owed.
- Tax savings get reinvested into more cash-flowing properties.
3. Repair vs Replace formula:
- Replace for increased property value or future depreciation benefits.
- Repair for immediate 100% tax deduction if asset has remaining useful life.
4. Appreciation:
- Buy properties in areas with strong potential for long-term value appreciation over time.
- Actively work to forcing appreciation by renovating and improving properties to drive up rents and income.
Between the Secret Savings Account equity build up, accelerated depreciation deductions, and forced appreciation increasing property values, you create a powerful wealth-compounding cycle that also cuts your taxes.
PS: We help accredited investors get quarterly distributions from the start, nearly double their equity in five years, cut their taxes, and we do 100% of the work. If you want to get to know us better, speak with our advisors about tax savings, comment “INVEST” and we’ll connect you with experts from our team.
God bless!