Looking for an accountant!

4 Replies

Hey Everyone,

So I'm beginning my first stages of REI, and about halfway through my Real Estate License. I've been researching the different types of business options I have available to me in this industry and I just keep getting more confused the farther down this rabbit hole I get. I also took a major hit on my taxes last year due to my misunderstanding of different laws and stipulations, and after reading multiple books, and attending seminars, I'm beginning to realize that learning how to utilize my taxes and a business can mean MAJOR savings at the end of the year, and money back in my pocket. I'd also like to begin building my investment team and I thought, where better to start than to build a relationship with a great accountant. So... I have some questions for my fellow BP members:

1. Does my accountant need to be in my state of residence for any reason since we have an endless supply of technology at this point?

2. Depending on the answer above, does anyone have references to accountants that work with Investors and Real Estate Investors (possibly in the Portland, OR area)?

3. Am I barking up the right tree as far as looking for an Accountant? I'm looking for someone that can guide me on the correct business entity to open (LLC, C-corp, S-Corp), help with taxes, and help me save/ get money back from my taxes at the end of each year, and someone to help me understand the tax and financial perks of financial decisions.

     Forgive me if this comes off the wrong way, but I'm looking for someone that is looking to help put money in my pocket. The reason I feel the need to say this is I met this real stickler type guy that worked at H&R Block a few years ago, and when I asked about legal loopholes to saving me money, and not just giving 30% of my income to the government, he acted as if I said "I hate America, burn it to the ground". I feel like it's ridiculous for me to have to defend wanting to keep as much of my income as possible, I'm 23 and new to the investing game. The more I read about people that are financially intelligent such as Robert Kiyosaki, I find that one of the biggest things they do, is utilizing their business, and taxes. They find innovative ways to make family trips become write off's and to legally hack the system. I'm looking to learn these tricks, by no means are my intentions to do anything illegal, but I'd like to legally do as much as I can to save money.

Hi @Shane Short you are correct in looking for a good accountant to help you structure things. If you are looking to get your real estate license, you should not need to set up an LLC or an S corp to my knowledge. I am not a CPA, but as a fellow agent I can tell you that would needlessly complicate things!

1. Your accountant does not have to be local, although I ended up meeting mine at a meetup locally. I would start with your network and ask for referrals. 

3. Yes your accountant should look for every legal way to help you save on taxes. You want to maximize your legal deductions, just like everyone else does. Otherwise, you will be paying more than your fair share. 

Hey Shane!

I definitely think you’re in the right state of mind! Most, if not all, of us are here to invest in real estate in order to create passive income. So why wouldn’t you want to do as much as you can to keep your dollars in your pocket? There’s nothing illegal about it - just find yourself a great tax strategist! They are knowledgble in accounting, but understand the nitty gritty of tax law to help you strategize tax savings. 

1. They do not need to be in the same state as you if you pride yourself on being pretty tech savvy and a great communicator! Two qualities to look for in your accountant, as well! I work 100% remotely as an accountant and am best able to help an investor when they are easy to communicate with despite never actually meeting face-to-face. Responsive and thorough in response. Also, can you provide what they need via technology? At 23, I’d assume definitely! But if you’re the kinda person to print everything out or take your thumb drive to people - it’s best to stick with someone local. 

2 I’m not here to sell you! But I do advise as you go shopping for someone, be sure that they are savvy in real estate. There are many lines of business out there, and this is a tricky one. Once things get muddled, you’ll pay way more to get them fixed than you will to invest upfront in someone who knows a lot about real estate. 

3. You are not barking up the wrong tree! An accountant will be more proficient in the creation and tracking of your books, a tax strategist uses that data to strategize how to save you money in taxes! So if your books are in good order, find yourself a tax strategist. If they’re not, find a good accountant first!

Good luck with your new journey @Shane Short ! You are on the right track, especially if you can recognize the tax advantages that real estate investing has to offer. There are many accountants here on BP that work remotely (thanks to technology) Try @Daniel Hyman with My Online Accountant! 

Tax Free Wealth by Tom Wheelright, CPA is one of the best books I've read on the subject of tax planing and strategizing. If an accountant tells you to just write a check to the IRS, and don't try to cut it down, find a new one--fast.

Thanks everyone for the replies! 

@Yonah Weiss I've sent Daniel a message and will be speaking with him Monday, thanks for the referral! 

@Ashley Stafford Feel free to DM me if you are currently accepting clients. I'd love to speak with you and possibly do a consultation and see what your company has to offer.


@John Warren I appreciate the advice! I'm not necessarily interested in opening a business for Agent work, but more so for the REI investing side of things.