New real estate investor - Needs tax planning and strategy assistance

[Sal Riz]

Hello Folks,

first time real estate investor here looking to build a team - looking for a great real estate agent who can help me find good deals + tax planning strategy partner who will help with setting up the right entity / vehicle and assist in how to plan and setup things in a way to make the most sense when it comes to maximizing profits etc. Please feel free to message me directly if you can assist or just drop a reply to my post on here :) Thanks n have a great day!

[Joshua Thompson]

Hey Sal! Welcome to the world of real estate investing! I highly recommend you use BiggerPockets Build your team function, it will help find real estate investor friendly services. This would be the best place to start, I would also recommend reaching out to a few individuals you see active on the forum. With you getting started I would also recommend buying 30minutes to an hour of an attorney and tax professional time. 

This should set you up for success and prevent any long term or expensive commitments before you get your first property.

[Bill Hampton]

@Sal Riz

I recommend finding an accountant who specializes in real estate taxation and tax planning. You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

Good luck.

[Sal Riz]

Quote from @Joshua Thompson:

Hey Sal! Welcome to the world of real estate investing! I highly recommend you use BiggerPockets Build your team function, it will help find real estate investor friendly services. This would be the best place to start, I would also recommend reaching out to a few individuals you see active on the forum. With you getting started I would also recommend buying 30minutes to an hour of an attorney and tax professional time. 

This should set you up for success and prevent any long term or expensive commitments before you get your first property.

 Hey @Joshua Thompson thank you for replying - i appreciate the input and will be in touch. 

[Sal Riz]

Quote from @Bill Hampton:

@Sal Riz

I recommend finding an accountant who specializes in real estate taxation and tax planning. You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

Good luck.

 @Bill Hampton

Thank you for your input - i live in texas and currently am looking for properties in texas but might be open to invest in out of state markets as well - we will see but i wanted input on what entity to setup to protect the real estate under and advice on other tax matters - send me an email so we can connect. Thanks!

[Account Closed]

Hey Sal! your doing the right thing getting on the forums and asking questions. I would reach out to folks that are answering a lot of the questions and providing value to get a deeper insight into your situation. Best of luck! 

[Marcus Auerbach]

If you buy a rental property in your name, you can use residential financing, which has better rates. For most people the commercial route is not beneficial to get started, unless you are buying 7 figure properties.

Definitely set up a separate bank account and dedicated credit card, so you are not comingling funds. Makes taxes easy when you have all income and expenses on one account statement.

An entity like an LLC has no bearing on your taxes, as the IRS will ignore it anyway. So you can still write off stuff even if you run the rental property in your personal name. An entity makes sense once you grow and can pay yourself a W2 salary and avoid self-employment tax, so your setup will change, but to get started, keep it simple and focus on the deal!

Find an agent, who is also an investor and has been where you want to go - should be easy on BP.

[Sal Riz]

Quote from @Account Closed:

Hey Sal! your doing the right thing getting on the forums and asking questions. I would reach out to folks that are answering a lot of the questions and providing value to get a deeper insight into your situation. Best of luck! 

 Thank you @Zachary Jensen i will definitely keep that in mind - do you guys offer tax services to people out of state?

[Sal Riz]

Quote from @Marcus Auerbach:

If you buy a rental property in your name, you can use residential financing, which has better rates. For most people the commercial route is not beneficial to get started, unless you are buying 7 figure properties.

Definitely set up a separate bank account and dedicated credit card, so you are not comingling funds. Makes taxes easy when you have all income and expenses on one account statement.

An entity like an LLC has no bearing on your taxes, as the IRS will ignore it anyway. So you can still write off stuff even if you run the rental property in your personal name. An entity makes sense once you grow and can pay yourself a W2 salary and avoid self-employment tax, so your setup will change, but to get started, keep it simple and focus on the deal!

Find an agent, who is also an investor and has been where you want to go - should be easy on BP.

@Marcus Auerbach

Thank you for replying - i think in texas i would have to buy it under my name - when u say residential financing are u referring to the conventional mortgages? i would have to get 1 in my name for the rental property but the rates for real estate investor and the down payment requirement is higher. 

Agree with setting up a separate bank account and card n what not to keep the personal and business finances set up separately. 

Appreciate the advice and i have already reached out to an agent to get ideas. Thanks!

[Account Closed]

Quote from @Sal Riz:

Quote from @Account Closed:

Hey Sal! your doing the right thing getting on the forums and asking questions. I would reach out to folks that are answering a lot of the questions and providing value to get a deeper insight into your situation. Best of luck! 

 Thank you @Zachary Jensen i will definitely keep that in mind - do you guys offer tax services to people out of state?

 On BP i cant promote my services or they will ban me! I cant confirm or deny :P