Financial advisor for real estate? Helpful or not?

Question

Hey wall,

I’m looking for advice from experienced real estate investors. Do you currently use—or have you ever used—a financial advisor? If so, have you found it worthwhile?

I ask because I usually bring questions to my accountant during tax season, but I don’t always get the level of guidance I’m looking for. I’m wondering if working with a financial advisor—especially one who specializes in real estate investors—would be more beneficial.

Ideally, I’m looking for help maximizing tax strategies and building a better framework for managing and deploying capital as I continue to acquire properties.

I would really appreciate any insight from anyone who has worked with one before, Thanks!

Bryon Andrews · Answer

Hey @Austin Smith This is a great question. I think if you are to look into a financial advisor, you will want to make sure they he/she is or has done what you are trying to do. Just like anything while building your team in real estate. As an investor here in the Twin Cities, I do not utilize a financial advisor for real estate purposes. I think a great place for you to start would be to attend many of the local meetups that we have her in Minneapolis and St. Paul. You will get a ton of perspectives and likely meet someone who utilizes or has utilized a financial advisor. As far as maximizing tax strategies, sounds like you may need a more real estate focused CPA. If you have more questions, feel free to send me a message.

Aaron Zimmerman · Answer

It seems like you could use a tax strategist. A financial advisor might help but I'd go with a fee only and get a consult or something.

Fulton Abraham Sanchez · Answer

@Austin Smith, hi. Most investors don’t need a traditional financial advisor, what you need is a real estate-focused CPA providing year-round tax strategy and planning, not just seasonal filing.

Bill Hampton · Answer

@Austin Smith

Yes, working with a financial planner is worthwhile.

If your accountant isn't providing strategies, it may be time for a new accountant.

I recommend finding a financial planner/tax strategist who specializes in real estate taxation and providing proactive tax advice.

Working remotely with your financial planner/tax strategist will expand your options. The best person for the job may not be local.

I would also recommend looking for an financial planner/tax strategist who will work with you throughout the year. You need an financial planner who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

Happy to answer any questions. Good luck.