Preston Seo

Biography:

Preston Seo is the creator of The Legacy Investing Show, which has more than three million subscribers across TikTok and other social media platforms. A successful real estate investor, Seo is on a mission to teach what he knows to others so they too can achieve financial freedom.

Seo currently owns and operates over 40 rental properties totaling $9 million in value, as well as four Airbnb properties that bring in $20,000 per month in cash flow. He quit his multi-six-figures sales job to focus on real estate investing full-time.

Why He’s a Top Money Expert:

Seo became a millionaire by age 28 through real estate investing, and now teaches the tricks of the trade to others through his popular TikTok account.

Q&A:

What do most people not know about real estate investing that you wish they knew?

People often don’t realize all the ways real estate makes you wealthy — there are five, in fact:

1) Cash Flow. This is the obvious one that most people know about. Your rental income minus expenses equals your cash flow each month. Make sure to set aside reserves for maintenance and capital expenditures, too.

2) Appreciation. Historically speaking, real estate appreciates at a 6% clip each year.

3) Loan Paydown. On rental properties, your tenants are paying down your mortgage for you, thus increasing your equity position.

4) Inflation Hedge. This is one that most don’t know about. Inflation erodes away the purchasing power of our dollar each year. In the same way, inflation also erodes away the mortgage on your rental property. Your loan today is easier to pay back as wages and prices increase over time.

5) Tax Benefits. [There are] so many great tax strategies that real estate offers — 1031 exchanges, depreciation, bonus depreciation, etc. It’s why so many [people] that own real estate pay very little in taxes compared to their income.

What are the best types of real estate investments to make in 2023?

I think it all depends on your desired lifestyle, access to capital and the types of returns you’re looking for. The beauty of real estate investing is that there are so many different ways to make money. I also think it’s important to adjust to current market conditions to hedge against risk.

What investments should they avoid?

As always, do your own due diligence when it comes to any type of investing. Never overextend yourself. I always say only invest what you’re comfortable losing. Once you educate yourself on the particular investment you’re looking at, take action.