My Husband and I are looking to purchase our first multi-family property or SFR in the next few months. Prior to jumping in we want to have our ducks in a row.
Next Week, we have appointments to meet with a CPA and a Real Estate Attorney who were both recommended by people who invest in real estate. We want to meet with them just to establish a relationship prior to buying our first building.
Do you have any suggestions of questions we should ask and/or items we should discuss to be sure that they may be a good fit for us? It seems a bit strange to meet with them prior to actually having any work to give them, and I don't want to waste their and our own time. However, we would really like to have them lined up and ready to go once we are.
Any ideas and suggestions would be helpful. Thank you so much!
It's never to early to get expert advice!
At your stage the lawyer will be more involved initially in determining business structure. The CPA is helpful as well in this, but we usually have the attorneys draw up the operating agreements and we usually advise them on if it makes pratical sense or not.
In a nutshell you will want to make sure both the CPA and attorney both regularly deal in real estate. The CPA will guide you on operating the investments in a tax effective manner, while the lawyer will guide you in ensuring that you have a legal shield around your assets. Both equally important. Ask them how long have they been in real estate, and have them break down strategies that align with your objectives. 401k & IRA distributions, Depreciation, 1031 exchanges, passive income deductions, and just tax preparation is what you will ask your CPA. They will help you more throughout your investments life, and in exiting. The lawyer will be pivotal more in setting up the structures.
Those are great points! Thanks so much for responding to me. I will definitely add those questions to our list to ask our CPA. We are meeting with him tomorrow and I am looking forward learning more about this whole process.
Would you recommend setting up your own LLC online, or is it better to go through our attorney, which he said would cost us $1500? That seems quite pricey to me.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing