Is getting a financial advisor worth it.

[Logan Bryant]

Just curious about other opinions on financial brokers. I already know some about what I need to do and how to accomplish it, however I also know that there are others who know much more than myself. In your experience, or other’s experience, is it worth the time or not?

[Chris Martin]

Financial broker, planner, or advisor? I'd say for many people there is a place for each function, just as there is a place for a bookkeeper, tax planner, and CPA. 

My experience is that most financial advisors and planners don't know (or have experience) much with/about real estate. I've not met (interviewed) any (sample set approximately 10) who own a portfolio of SFR or own solar farms and claim/file ITC forms (3800 and 3468). That doesn't mean they don't bring something to the table elsewhere. To answer your question, if you can find the right fit, then certainly it is worth the time. Getting the right person/firm to fit for your particular goals... that's the challenge. 

[Logan Bryant]

Quote from @Chris Martin:

Financial broker, planner, or advisor? I'd say for many people there is a place for each function, just as there is a place for a bookkeeper, tax planner, and CPA. 

My experience is that most financial advisors and planners don't know (or have experience) much with/about real estate. I've not met (interviewed) any (sample set approximately 10) who own a portfolio of SFR or own solar farms and claim/file ITC forms (3800 and 3468). That doesn't mean they don't bring something to the table elsewhere. To answer your question, if you can find the right fit, then certainly it is worth the time. Getting the right person/firm to fit for your particular goals... that's the challenge. 

 Right and see that’s what I’m unsure about because most of the ones I’ve talked to are only in it for the sales or insurance sales, or don’t do real estate investing or any type of investing theirselves

[Christian Longacre]

Hey @Logan Bryantand @Chris Martin, I would have a quick discussion with Daniel Johnson.  I think he's a skilled in both subjects (RE investing and financial planning).  We met for lunch last year and I was impressed.

I haven't hired an advisor yet because my portfolios are relatively small and I'm happy to self-manage, however I think I will hire someone at least on a project/fee basis in the future.  

Daniel Johnson, CFP®, MBA - RE|Focus Financial Planning (xyplanningnetwork.com)

[Daniel Johnson]

@Christian Longacre - thanks for the shoutout! I really appreciate it!

I think that a knowledgeable financial planner can add some great value(biased!), but it is particularly important for real estate investors to have a CFP that understands what they are doing in real estate. I personally own 13 properties and along with my wife self manage most of them. I’m able to directly relate with my clients, as well as coaching and encouraging them on their wealth building journey through real estate. 

[Marcus Auerbach]

Daniel is a rare find, most financial advisors do not understand real estate and it's difficult for them to give meaningful advice to a real estate investor. It also depends in what stage of your REI career you are. In the beginning all of your cash goes into REI, later and when you have family you might start to diversity a little, life insurance for example becomes a consideration. For investing an index fund will do just fine and beat most managed funds anyway. Once your wealth is growing and you get to more sophisticated problems you don't have the time to study, that is when it makes sense to pay someone to do that for you. And I forgot, before you get there and hire a FA make sure you find a tax planner (who understands REI), most CPA's are not good at that.

[Theresa Harris]

I think it really depends on the person and the advisor.  Some people are better than others at finances.  Same with the advisor, if you find someone who fill a gap in your knowledge and does a good job, then why not use one?  Having said that I don't use one (because what I do is working for me), but I know people who do.

[Steve Vaughan]

I think a fee-only, holistic advisor that knows and incorporates RE could be beneficial. Just difficult to find, right? 

I wish I had a 30,000 ft view one this year as we transitioned out of 90% of our RE portfolio.

I've always been ultra DIY and believe I have a good transition plan, but it would've been nice to be able to bounce ideas off of a trusted advisor.

When we do all ourselves we are alone when we want to transition out or turn operations over to someone.

Exit plans are rarely covered here on the forums. A trusted advisor would be nice but not a broker or proprietary product salesperson.