All Forum Posts by: Albert Okagbue

@Lyall Storandt Do you know anything about this?

@Kim Bayless Welcome & welcome back.  What's the next step for you?  What do you need?

I'm a practicing CPA in Houston but have a pretty wide business network.  Let me know if I can help you find someone near you. I'll send you a request.

My friend Lyall Storandt is an expert on the Houston scene.  I can't figure out how to tag him but he is in my list of colleagues. Houston is a good scene.

@Jackson H.  You will need to know a lawyer and a CPA that are friendly to real estate entrepreneurs.  If you need a referral to some in your area let me know.

The first thing to do is find people. Real estate is so easy on paper because you don't have to hire anyone, but you still have to rely on people.  Ask your friends (and BP of course) for:

Electricians, Plumbers, Handy-men/women, contractors, etc

Real estate agents, property managers, etc

Attorneys, CPAs

With the CPA, make sure you are comfortable with the person.  Do you feel like they care about you as a person?  Do they listen to you tell them your goals?  Interview them - even if you already think you'll use them.  This is huge.

Good luck!

PS - I'll let others complete the list of people they rely on to find deals, get deals done, and manage properties.

@Dan Rudolph If you still need one, please connect with me.  I'll get you a contact in your area.

Hello @Pat Bruton

Those are great questions to have and to know that you have. I am proud of you for having thought this far!

I would direct the legal structure questions to an attorney. You will need to determine how to get paid, and that will drive the legal structure. Will you get paid a management fee or not? Some people set up an LLC of their own as manager, then join the other partners as owners of the LLC holding the property and collecting passive income. In that case nobody is getting paid to manage the entity holding the houses, but the property manager is getting paid (even though it is owned by one of the partners). Either way, your operating agreements is where the rubber meets the road. In my view they should reflect your choice and be written to give you the level of flexibility you need, protect you from disputes, and be simple enough for partners to understand.

After you have selected an entity, then you would talk to the CPA (immediately after) about tax considerations.  Hurry because there are deadlines for tax elections; either talk to CPA after lawyer BEFORE setting up the entity, or talk to CPA immediately after setting up the entity (a few days). The CPA will help you set up the LEGAL entity you choose as the TAX entity that works best. Two different LEGAL entities can be set up from a TAX standpoint to create the same result...

You seem to have a good idea of your business plan - i.e. what you will be doing.  The CPA will need to know that.  His/her suggestions will be based on those exact transactions - nothing more, nothing less.  Be careful not to make the mistake of changing your business plan without consulting the CPA.  For example, deciding to flip houses instead of buy-and-hold.  The tax code can see them as two very different things....

Good luck!

@Account Closed Yes.  In practice how I describe it to myself is that the money doesn't come out of no-where.  It comes from peoples' pockets.  Keep it up!  Let us know how it all works out.

@John Smith  I have some clients in your area actually.  I can see if they know anyone. I will reach out to you.

@Account Closed I think it's very nice of you to do this level of research for them.  I know you want to get the deal done, but this isn't your problem (technically).  So kudos to you for going the distance.  I wish I could help!

Thanks for posting!