Brooksville, FL · Member since 2018 · 8 posts · 2 votes
Hello Bigger Pockets! I am a new investor looking to do my first deal. I could use some insight on the importance of hiring or at least speaking with a CPA and/or lawyer. I have read quite a few books and listen to the podcasts daily and it seems this is mentioned in almost every discussion. Also any guidance on finding the equitable CPA and/or lawyer is greatly appreciated. Thank you in advance for your opinions!
Investor · Chattanooga, TN · Member since 2016 · 676 posts · 543 votes
8y
@Brendan Harvey imo go buy a deal and then talk to a CPA or lawyer if you need to. People over think this. Find a deal that will make you money buy good liability insurance and when you start making money find a CPA to help you keep some extra bucks and a lawyer to protect the bucks you have. But step one is make some money.
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
@Brendan Harvey Both the CPA and the lawyer will need to know what kind of real estate investing you are planning on doing.
Are you going to do Fix & Flip or Buy & Hold or do Short Term Rentals or Commercial or Lending Money (Notes) or what? How much will you be putting into your real estate? Will you keep your day job? Are you an accredited investor or no? What goals do you have? Will you be having partners? Are you long term or short term investing? What if the market turns? What role will you play in the investing, Active or Passive? and so on.
Investor · Chattanooga, TN · Member since 2016 · 676 posts · 543 votes
8y
@Brendan Harvey imo go buy a deal and then talk to a CPA or lawyer if you need to. People over think this. Find a deal that will make you money buy good liability insurance and when you start making money find a CPA to help you keep some extra bucks and a lawyer to protect the bucks you have. But step one is make some money.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
8y
What would be the purpose of hiring a CPA or Attorney before buying your first property? Unless you are forming an LLC or are getting the money from a complicated taxation withdrawal, I don't see the need. I believe they mention those things on the podcasts as a way of CYA (Cover your A**). The same way attorney's on this blog like to remind us they are not our attorney, nor are they giving legal advice.
Get a good real estate agent, a really good banker/lender, and use the BP calculators to evaluate and buy a deal! And then get a cpa to pay as little taxes as possible. When you find the need for a cpa or attorney, get a referral from somebody at a REIA meeting, or from your banker or real estate agent.