I’m in search of a CPA that knows their stuff when it comes to RE investing. I haven’t yet done my first deal, but I am getting prepared to do so (setting up my team at the moment). Does anyone know of any resources or have any referrals?
Teams are great and CPA’s are great when you need one. Do not wait untill you find one to do deals. If you are putting together a syndication of tax free bond financing and NEED a CPA to get the loan funded then get one tonight.
How are you doing on the other members that are needed sooner, seller, money guy, title agent, contractors, inspector, perhaps a mentor.
LOL! Actually the other members of the team (seller, money guy, title agent, contractors, inspector, perhaps a mentor) weren’t even on the radar until after we set the entity up.
Everywhere I turn the general consensus is Start NOW! But, is it smart to start without having a business structure set up? Is it smart to do business as individuals? How about the TAX monster, I’m sure that will slay us!
Thank you for your insight. Hope to hear from you again.
A lawyer just told my friend not to spend any money on forming a Corp until he finds a deal. He is still trying to decide if he wants to Inc in Nev or Del or Tx or Mexico or Peru. He is a sharp fellow buy maybe too sharp. What you start today may change in 6 months. How many millions are you going to save on taxes. I woud be looking for deals.
Liability is a big concern too what if i am personally sued and this and that. Buy an insurance policy for a few hundred in addition to the LLC or corp.
Set a goal that by Jan1, 2005 you will find a property and find a way to get it bought.
Bad credit So what I am closing on a $250,000 loan on 31 units Friday with a 500 score and 5 previous BK’s and can do some more deals in addition to this. My experience helps but not that much.
If you have some cost experience that will help too, if not get a good team member here.
Where is the book that says do not read so many books. A lot of the articles on this site are great and are free. Do not start off dumb but you do not need a PHD either
From my experience i can tell you that you do not need a business entity if you are just starting out. You would not be making enough money to really get all the benits of a corporation yet. However getting a cpa is always essential part because regardless of size of the transaction the govenremtn will be there to tax it =)
So just keep that in mind and happy hunting.
I may be able to help with tax questions on the federal level. Your specific state may be a bit harder to answer each state is different. The thing to keep in mind is that income taxes are based on Profit!!! Make your deals to maximize profit and you will have your taxes covered. Making deals based on tax consequenses and not economic benefit will be a receipe for building a tax bomb.