All Forum Posts by: Michael Pannacciulli

Hi Michael, have you heard of DSCR Loans? If you are seeking reliable, lending options for investment properties, this is most Popular product on the block. A lot of the best DCR lenders/brokers are located nationwide and can help investors in many different regions. if you have a complicated financial situation with personal abilities and income, I would recommend looking into this loan product. No DTI, 95% less documents required, can close under business if you prefer. Happy to connect if you have more questions!

You may not necessarily need an accountant for tax prep services but it's a good idea to engage an accountant before you structure the entity you intend on using to purchase your first properties. Sometimes the entity you choose and how you are admitted as a member can impact your personal tax consequences. 

@Michael Pannacciulli this is a common question and a good one :) The answer is it depends and it may not be your choice.

• Generally, buying through your personal name can reduce the interest rate - commercial rates on LLC mortgages are usually higher but you can research this
• Most LLCs on incorporation don’t have any credit so it may be difficult to find.a lender
• If you own the property in your personal name you are exposing yourself to more risk and will want to transfer the property into LLC as soon as you can
• If you own property in your personal name and transfer to LLC the lender may not allow or can call the entire loan
• LLC or personal you need insurance

One solution to above is to buy the property in your personal name and immediately transfer it to the LLC after closing, but you will need to get pre-approval from lender before you buy property and plan to do this since not all of them allow this. The lender can call the loan on transfer - this is a risk and you need to be careful. Finally, if you wait too long to transfer the property from personal to LLC there may be taxes on transfer.

The transfer is called a "Quit Claim". If you search the forums for this topic using the magnifying glass feature in top right corner of your screen on BiggerPockets you will find a lot of discussion on "Quit Claim" "Buying through LLC" etc.

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This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

great question! When you need them to save you $$$. Real estate brings awesome benefits and you need to be aware of those and find a CPA that can do them for you. ANY location-- doesn't matter. Mine is in another state and she files for my all my stuff. Just as long as your CPA knows how to take the Real estate deductions and helps you strategize it. You don't need to pay a lot to the big gurus until you have a lot more deductions and it gets more complicated. 

@Michael Pannacciulli I usually say the sooner, the better. Especially if you're wanting to utilize tax incentives like cost segregation studies. When you start your search, here's a list of a few questions that I'd recommend asking the potential CPAs:

1. - Are you experienced in working with my industry? Do you know the ins and outs of it? How long have you been working in the industry?
2. - Do you work with any specialty tax firms to help us small business owners get access to R&D tax credits, cost segregation and other specialty tax credits?
3. - Do you meet with us routinely to be proactive and do planning?
4. - What real estate tax saving strategies have you utilized with other clients?

I've found that CPAs that focus on a niche area such as real estate rather than offering general services to everyone are typically much more knowledgeable about real estate tax incentives. I'd be more than happy to provide you with a couple recommendations if you need?

Once your taxes start to get more complicated and need some strategy, that's when you hire the cpa. A good rule of thumb is if TurboTax doesn't do it easily anymore, it's probably time to upgrade. Once I had a few rental properties and into a couple flips I started hiring one.

CPA can be wherever, just make sure they have expertise in your state. Some will say that they can work for any state, but then they will not realize there's a different kind of LLC tax in your state, or whatever, and it will not go very smoothly .

I had a rental house like this and sold it, no question.  

It was renting for $900. Renters moved out and a CMA said $220k. No mortgage, like you. Sell it.

In no world does the math work as a .3%er, especially if it wasn't your family home growing up or grand dad's homestead or something. 

Drop the price and sell it already.  Winter's coming.