I am new to Real estate. I am in the beginning phases of interviewing my dream team which includes an accountant.
For the experienced investors what questions should I ask my accountant when starting up?
What accounting advice do you wish you had when you started investing?
It would be good to find an accountant who has or currently does invest in real estate. Some hands-on experience in the field you are wanting them to do your accounting always helps them understand your business model better than one who has not venture into the REI space.
Ditto with what Bob said. Also, you have different areas of real estate. A Single Family landlord is going to do books different than a fix and flipper. That's going to be different than an apartment syndication which takes on 30% of IRA money. And that's going to be different than buying a non-performing loan that you take to foreclosure and turn into a rental after you acquire it. Then if you through in a JV partner.....
I remember when I told my accountant, who personally invests in hotels, apartments and single family; that I was getting into notes, his comments was.. "Oh geez, no."
Whatever you do, make sure you get an accountant who is a real estate investor. I've got 2 on my team. A real estate investor to help me keep my books, and a real estate investing accounting firm for the taxes.
I would find out what type of clients they have. You will want an accountant that has mostly business owners and real estate investors. If they do taxes for regular paycheck workers for the majority of their business, then they may struggle with your taxes as you become more complex.
Your local REIA is a great source of all kinds of referrals. Usually there's a "recovering CPA" in the room.
@Kristen Ray I don't know of a good referral specifically in Maryland but there are multiple tax pros on here who work with many clients remotely. Shoot me a PM for some referrals.
I would ask about strategy, contact points, find out if they know the rules offhand regarding a REI pro status, Just chat with them and see if they go more in depth than you do- if not, this is likely not their specialization
@Natalie Kolodij who is your Maryland referral ?
@Chris Seveney I don't have a specific Maryland referral. I do have several remote pros here on BP I'd recommend