LLCs, House Hacking, and Saving on Taxes with Brandon Hall

In This Article

What has five letters but causes so much fear that millions of wannabe investors never get started? That’s right: TAXES. But taxes don’t need to be scary — and understanding and utilizing the tax system can actually help grow your business and help you build incredible wealth. That’s why we’re excited today to sit down with Brandon Hall, a CPA and real estate investor who works exclusively with real estate investors to help them strategize and organize their business in the most cost-saving way possible. We cover Brandon’s real estate journey, including house hacking, LLCs, S-Corps, bookkeeping, and so much more. You’ll love Brandon’s engaging and entertaining personality, and for once in your life, you might even enjoy learning about taxes!

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This Show Sponsored By

A huge thanks as well to our Fire Round sponsor MACK.

MACK Investments is the nation’s longest tenured turnkey operator with over 38 years of combined experience, with its fully vertically integrated operation in the US’s most diverse economy, Chicagoland. With over 2000+ homes under management, we serve over 300+ investors across 11 different countries. Homes are priced below 200 thousand and will generate a guaranteed CAP averaging 9% that can be leveraged to achieve returns in excess of 20%.

Learn more by visiting MACKinvestments.com.

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In This Episode We Cover:

• How Brandon realized the need for a CPA through the BP community
• How he grew his firm through the BiggerPockets Forums
• The importance of giving value to others
• The details on his three-unit property
• Tips for hiring a “leverage property manager”
• How to find investors in your community
• The details on his second triplex
• Why he focuses on multifamily
• How he funds his deals through FHA loans
• The way he looks at PMI
• A mistake he is guilty of when it comes to inherited tenants
• Training your tenants and other management hacks
• The tax benefits of house hacking
• Mistakes he’s made in his real estate investing
• Tips for finding a good CPA
• Advice for those deciding whether to use an LLC or not
• What you should know about LLCs
• Things to know about the “real estate professional” tax designation
• When to hire a bookkeeper
• Common mistakes investors make with taxes
• And SO much more!

Links from the Show

• BiggerPockets Meet
• BiggerPockets Webinar
• BiggerPockets Forums (with new leader feature)
• BiggerPockets Bookstore
• BP Podcast 060: From 0 to 68 Rental Units in Just Four Years with Serge Shukhat
• Xero
• Quickbooks
• The Tax Implications You MUST Understand Before House Hacking (blog)
• Looking to Invest Out-of-State? Here’s How to Pick and Analyze a City (blog)
• The Importance of Reserve Accounts (Or What a Surprise Roof Replacement Taught Me) (blog)
• BP Podcast 004: Commercial Real Estate Investing With Frank Gallinelli
• BP Podcast 162: How to Pay Less to the IRS with Amanda Han, CPA
• BP Podcast 005: Dealing with Death – A Financial Discussion with CFP Neal Frankle

Books Mentioned in this Show

• The Book on Tax Strategies for the Savvy Real Estate Investor by Amanda Han and Matthew MacFarland
• The Book on Managing Rental Properties by Brandon and Heather Turner
• What Every Real Estate Investor Needs to Know About Cash Flow… And 36 Other Key Financial Measures by Frank Gallinelli
• It’s Not Rocket Science by Dave Anderson

Tweetable Topics:

• “Don’t try to sell yourself. Let your content sell yourself.” (Tweet This!)
• “You as the business owner should not be in the bookkeeping.” (Tweet This!)
• “The ongoing tax strategy throughout the year, that’s the time to save money.” (Tweet This!)

Connect with Brandon

• Brandon’s BiggerPockets Profile
• Brandon’s Company Website
• Brandon’s LinkedIn

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.