E96: The Power of Depreciation

In this episode of the Lone Star Capital Podcast, Craig McGrouther and I dive into one of the most powerful tools in real estate investing: bonus depreciation. With talk of 100% bonus depreciation returning in 2025, Rob breaks down what that could mean for investors — from maximizing early-year tax advantages to how it directly impacts capital raising, deal competitiveness, and after-tax returns. They explore the impact for both everyday passive investors and those electing real estate professional status, and how strategic use of depreciation and 1031 exchanges can dramatically shift a portfolio’s long-term outcome. Plus, they compare debt fund structures vs. multifamily equity returns and explain why what looks good on the surface might not deliver when you factor in real after-tax results. Apply to attend the LSC Summit 2025: www.lscsummit.com Download our FREE Passive Investor Guide: https://www.lscre.com/content/passive-investor-guide Subscribe to our newsletter and get the FREE Underwriting Toolkit: https://www.lscre.com/resource/fof-underwriting-toolkit