Since a professional team is so important to your success as a real estate investor and, more specifically as an apartment owner, I would like to take the opportunity to discuss how to find and use these team members in a little more detail.
Just to recap, some of the essential team members that you’ll want to have in place include:
- Bird dogs
- A real estate agent or agents
- A commercial mortgage broker
- A banker (one or more)
- A title company or closing attorney
- A real estate attorney
- Private lenders
- An SEC attorney (if part of your business includes securing private funding)
- An asset protection attorney
- An accountant or CPA
- Property management companies
- Contractors
I’ve heard people say from time to time that they wouldn’t want to be any more successful because of the higher taxes they’d have to pay. What a bunch of bogus! A better attitude to have, especially as you get more and more involved in your business, is to embrace that higher tax bracket and then have a good CPA do everything they can to minimize your tax obligation. Sounds better, doesn’t it?
Without a doubt, one of the biggest changes you’ll experience when you start investing in properties is the impact on your taxes. Real estate offers a host of legitimate tax shelters and deductions that most Americans only get a taste of with their primary residences. If you choose to try and handle these changes yourself or continue to have H&R Block around the corner do it, chances are you’ll be leaving deductions on the table and never benefiting from them.
The bottom line is that being in business and specifically real estate investment as a business should include using a CPA. Not only do CPAs stand behind the returns they prepare for you, but they are also up to speed with ever changing tax laws and can also help you plan your business to optimize your tax obligations.
I’ve known many an investor who significantly increased their income and actually paid fewer taxes, with the help of a good CPA. Unless you happen to be a CPA yourself, a choice to hire one for your business really should be a no-brainer.
So, where do you find a good CPA and what do you look for? A CPA who works with small businesses and other real estate investors is usually a good fit. Since this type of specialty is not always apparent from a Yellow pages ad, seeking referrals from other investors or looking for CPAs who seek business at your local investment club can be nice avenues to follow. The bottom line is to make the commitment to your business to do this because it is that important.
Can you see how your empire can be created without you not having to be a jack of all trades? Follow with me through this series and you’ll continue to see how your own team can help you acquire the apartments you seek and help build the fortune that is out there for the taking!
