Do reputable/proven Tax&Legal STRATEGISTS (& Tacticians) exist?

Question

The hunt for unicorns continue..

It seems one of the hardest parts of being a RE investor and entrepreneur is finding trusted council. Finding a person/company/firm that can be dual hatted as both a (1) Strategist and (2) Tactician (able execute the strategy) seem unattainable.

Reason for Post: I am in search of any advice in finding, or recommendations for hiring an attorney and tax strategist & tactician who will serve as a strategic partner for my activities as a RE investor and entrepreneur. Someone who has the bandwidth to understand my intent and provide guidance PRIOR TO and during my execution of deals. Thus far I have only been able to find people who provide a backwards analysis approach. This is no longer suitable.

Background: I have only been a RE investor for two years (NEWBIE!) however my activities and growth during this time has been out of the norm. While part-time, I have executed several RE transactions in multiples states with various partners and deal structures. I have begun generating enough income through RE transactions and entrepreneurial activities to quit my job and begin my pursuit as a RE investor full time. I will quit my job mid-2021 and refuse to get another job! True financial independence is my goal, and I will no longer trade my time for a wage.  I am in need of strategic, forward thinking, legal and tax counsel to prepare me for this, and guide me in my new self-generating income lifestyle.

My Pain Point: In my experience (admittedly as limited as it is) most Attorneys & CPAs are not forward thinking. Instead they prefer I conduct my business, and then provide analysis after-the-fact, and identify better strategies that could have been utilized. This backward perspective DOES NOT work for my intent, and I am no longer interested in working with attorneys/CPAs that have this mindset or approach. I have spend $10k of dollars in consultations and my CPA was "surprised at my growth and caught off guard at how much I had accomplished"... I consider this an epic fail.

Does anyone else have these issues? or am I looking in the wrong places?

Any and all recommendations welcomed! Also feel free to share similar stories....sometime I feel I am going crazy. Knowing I am not alone may help. How can my (seemingly) simple request go unfulfilled? Or maybe my expectation are too high??

Cheers.

Michael Plaks · Answer

@Nicholas Seaver

This forum features 20+ experienced tax accountants specializing in real estate. Many of us advocate the exact approach you're seeking and operate our practices on this model.

I suggest you invest couple hours into reading this forum. Look for questions asking strategic questions. See who responds to these questions and how. Once you identify 3 experts whose approach you like - reach out to them privately and compare.

Nicholas Seaver · Answer

@Bill Hampton I am currently working with a CPA remotely, however I did originally find them in my local area. I agree with you completely, we should be encouraged to the best possible partners, regardless of location. :)

Nicholas Seaver · Answer

@Brian Boyd Thank you for your message. It is encouraging to remember that this is all apart of the process, and that my frustrations are just a necessary part of the journey towards developing a high functioning team. I am fortunate to have found a great bookkeeper, which is a blessing.

My CPA is a great regarding filing at years close and finding the tax savings, it only the strategic, and forward looking portion that I am missing.

I am glad to hear that you have your team and are doing so well! It's also encouraging to know that tax attorneys are in the RE investing game as well!!

Happy Holidays man!

Brian Boyd · Answer

You are experiencing the growing pains many of us go through. I'm a tax lawyer by education and training but I invest in real estate (I have a closing next week for our 22nd door). I went through the same thing you are dealing with, I had a highly reputable accounting firm and was paying an hourly rate of well over $700 an hour and they missed some very obvious things on my return that I had to point out to them. Then, when I changed firms to a National CPA firm, they did a worse job and I have had to amend three years back to clean it up and truly realize the benefits of RE investing.

There are books out there that can help you understand the tax implications for RE investing, including Cost Segregation, LLCs (series and single members), Section 179 and Bonus Depreciation, and how to work with your bank to utilize the equity in your property from appreciation and paid down principal from your Mortgage make cash free purchases.

With that said, it takes kissing a few frogs to get your team together and that is really what your post gets to the heart of. I am a lawyer so I can draft and execute my strategies but I have had to find the right book keeper, the right accountant, and the right banker. It is tough, but there are people on this forum that will gladly point you in the right direction.

Good luck to you and don't get frustrated. It sounds like you are doing great so far.

Bob Norton · Answer

@Nicholas Seaver Sounds like you need a CPA with an entrepreneurial mindset.  I recommend that you contact several of CPAs on this forum and interview them to find the mindset that you want in a CPA.

Nicholas Seaver · Answer

@Caleb Heimsoth this rate seems to be comparable with a lot of professional attorneys/CPAs. I happily pay the fees for professional and relevant advice that (1) protects me as I grow, and (2) enables me to expand rapidly. I take the approach that I should seek counsel, and develop a strategy and entity structure while small and growing, so I don't have a ton of fees to restructure later. It's my personal believe that developing a solid understanding and executions of the aspects of asset protection and tax filing is important at all levels of experience.

Nicholas Seaver · Answer

@John Fish great tip. Thank you!

Eric M. · Answer

My experience is the opposite. Hardly a unicorn situation. There are many many qualified RE attorneys and CPA's who will give you forward looking advice. I can't say I have ever talked with one who didn't do this, though I am sure plenty of idiots exist out there. Maybe it is possible you are searching for someone who will give you this during a "free consultation"? That may be why they are evasive. You do need to pay them. They give the best advice to paying clients, not random people digging for freebies.

Several knowledgeable ones post regularly here on BP. (for free) Read a bit. Search yelp. There are racks of books on RE tax law. Heck, there are many great videos on you tube that cover this.

Unless you are talking about a very complex or unusual transaction or situation, not only would I expect virtually any RE attorney and CPS to do this, you should be able to learn enough to cover 95% of all transactions yourself very easily. It isn't that difficult.

Caleb Heimsoth · Answer

@Nicholas Seaver are you willing to pay top dollar for this service? Most CPAs and/or attorneys will bill at 200 dollars an hour or more.  That can get very costly as you bounce ideas off them.

Tax strategy is best for people with millions to invest. Does that apply to you? These are just a few basic questions I would consider before moving forward

John Fish · Answer

@Nicholas Seaver I would suggest you start with finding a tax attorney first, they typically work with(or recommend)  a cpa they typically use.

Do reputable/proven Tax&Legal STRATEGISTS (& Tacticians) exist?

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