Hello my friends. Welcome back to Passive Real Estate Investing where we dive into the world of real estate investing among other related topics. To help you with your real estate investing journey, today we’re doing something a little different. We’re going to take a trip down memory lane and showcase an important episode from the past on what we call our throwback Thursday episode. Now, whether you’ve been with us since the beginning, which goes back to 2015, or you’re tuning in for the first time, this episode is a must listen, we are revisiting one of our more popular episodes from the past, and believe me, what we discussed back then, whether it’s six months ago or six years ago, is just as relevant today. So sit back, relax, and let’s rewind the clock for this great episode. Enjoy.Today's question comes from Kelliane, and she says, hi Marco. I just recently discovered your podcast and have been binge-listening. Thanks for the great content. I am an attorney turned entrepreneur who recently sold my eCommerce business. My husband is in medical device sales with a high W2 income. I am now launching a new consulting business and podcast. My husband and I are trying to also ramp up our real estate investing business. After exploring many options. We are most interested in passive real estate investing example, acquiring turnkey, single and multifamily, multifamily, syndications, and hard money lending. We are working diligently to do everything we can to create a passive income, minimize taxes, and achieve financial freedom within the next five to seven years.Great goal and congratulations on all that.Because of my husband's high W2 income, I would love to be able to qualify as a real estate professional to take advantage of the tax benefits. However, I don't see how this is possible. If we were to pursue the passive real estate investing strategies as mentioned above, do you have any insight as to how we can get the best of both worlds? Thanks, Kelliane.——————————————————————————————————————————————Throwback Thursday Episode (The episode originally took place in the year 2020)This episode is part of our Throwback Series and may include references to older content such as webclasses, events, promotions, or links that are no longer active or available. While the conversation and insights still hold value, please note that some information may be outdated.Download your FREE copy of The Ultimate Guide to Passive Real Estate Investing.If you missed our last episode, be sure to listen to From 9-5 Stress to Passive Income Success (Adam’s Story) See our available Turnkey Cash-Flow Rental Properties.SUBSCRIBE on iTunesWell, Kelliane, thanks for submitting your question. And this is a great question because we are all interested in building a business and, or increasing our income, lowering our taxes, or keeping them under control and of course, achieving financial freedom within the timeframe that we set out to do it. And so this is all great. Now let me begin by first of all, giving you a disclaimer, and I'm going to probably mention again later, I am not a tax advisor or a tax professional, and I don't give out financial advice. So I'm going to give you some perspective and commentary that will at least help put this together for you in your mind and get you on the right track. But ultimately I think you're going to have to consult with a good tax professional that is knowledgeable on the real estate professional classification. But let's talk about that first because maybe you won't even get that far and there are pros and cons and you'll understand why I say that.So let me, first of all, begin by saying that we all know real estate has an amazing ability to potentially provide tax losses and deductions with tax-free cashflow real estate is one of those investment vehicles where you can actually show a loss on paper, what we call a paper loss,