Attorney consultation navigation and professional guidance

[Ikenna Okoye]

Hi guys,

I'm looking to make the next steps with RE and selecting my personal CPA and Attorney. One question with the costs associated with this is, when you all make offers on properties or look at partnership or investor agreements, are consultation fees usually something you need to take into account with an attorney if they are looking over documents several times over the course of buying a property? What are some examples of matters where you would pay an attorney for their time? Any guidance would be appreciated. Thanks. 

[Brenden Mitchum]

Hey @Ikenna Okoye

I would say this question really depends on what stage in your investing career you are and what strategy you are employing. If you are running a syndication, you will definitely want to speak with an attorney throughout this process. You will also need a knowledgeable real estate CPA. 

Now, if you are just looking to buy a SFH or a small MFH, you do not need either of these people during the purchase process. The exception would be if you are not working with an agent and are purchasing off-market properties or are structuring some kind of partnership. In these scenarios you would want to speak with an attorney, but you do not necessarily need to speak with them every step of the way. Expect to pay them any time they are drafting/reviewing contracts or giving advice. Basically, any time they spend to help you is going to cost you. The CPA can wait, but it never hurts to start speaking with a few to see who you would like to work with in the future.

Please, feel free to message me anytime if you have other questions or just want to chat.