How to find financial adviser for retiring prop. investor

Question

Hi folks,

I'm trying to help locate an appropriate financial planning/analyst resource. Someone with experience analyzing and making recommendations re: existing investment property portfolio... and making adjustments/recommendations for a retiree.

My mother is a lifelong property investor with over 15 (single family mostly) properties owned. The issue is she never had a retirement plan with regard to these properties (in the sense that traditional stock planning has one shift assets from growth to stability as one gets older). She always (and continues) to invest for long term ownership, breakeven cash flow, and not much else.

She's not going to listen to family (well into retirement age and refuses familial assistance with decision making). I need a resource (competent authority) that can analyze the properties, rents, loans, and whatever else... and make recommendations to do (whatever it takes) to generate retirement sustaining cash flow.

How do I find this professional? Every "financial planner" I talk to knows less than me about property investment and analysis. I don't know much.

Looking for someone preferably available face to face, in California, in the east bay (anywhere from Concord to Sacramento would be fine). Mom is an septuagenarian and not up for doing this exclusively over the Internet.

I wish I could say she could talk to her property manager... but she continues to do all of it herself.

I apologize in advance, you may see this query posted in a few forums. I'm desperate to help my mom generate, and move forward with, a plan... and I'm seeing a brief window of opportunity where she isn't completely closed to the idea (after many years of me trying to get info out of her).

Paul Allen · Answer

@Henrik Lemos good luck with your search. I am a financial planner and my goal is to BECOME the guy you are looking for. (I'm not there yet.)

Finding (reliable) resources on the topic is tough. I have taken the courses and passed the test to become a Certified Financial Planner, and almost none of it was on real estate. Financial planning is awash with securities and insurance product information - things a financial adviser can sell to make money. Not many advisers want to deal with clients with real estate because they can't get paid to manage it like they can get paid to manage a securities portfolio. Many advisers even discourage real estate investing - they see it as hurting their own bottom line.

Let me know if you find what you are looking for. I would be interested in knowing more about that.

(And I know all about old women who won't take advice from family.  My mother....arrrggghhhh!!!)

Brian G. · Answer

@Henrik Lemos, I'm on the other side of the country, so I am not able to help in the capacity that you're looking for your mom. However, I can certainly offer to help look anything over you might want double checked, if necessary.

I'm a new financial advisor with my Series 65 license and I work for my own company on a fee-only basis. This means I'm a fiduciary and I have zero products with a vested interest to sell. I have a real estate background, as well. I have also invested in SFHs for over 4 years; I have a Master's in Real Estate Investment; and I interned for over a year for a large NYC investment firm doing mortgage brokerage and deal analysis. Coupling those all together, and I have a background that might be able to help further hash out your on-the-ground help.

I'm actually just starting out, so I'm not charging anything for my advice. It's not because I don't feel confident in my knowledge, but I don't have a background working in the industry, so I'm still hashing out some of the back office nuances of running this type of business. So, just offering to lend another set of eyes on anything you may have questions on.

Suzanna Lam · Answer

@Henrik

I'm a financial/investment advisor with real estate investment background, a tax CPA.  I know of a very good CPA within my network who has similar background who can help your Mom and he will be willing to travel to see your mom.  Contact me offline or connect with me here or Linkedin.

Your mom is so lucky to have you as her son.  As you assist her with her retirement planning, pay attention to escalating health care cost when she is immobile or has Long Term Care needs.  I have seen seniors whose real estate portfolio is depleted quicker than the time it took to accumulate it due to major health issues which they didn't anticipate or their advisors didn't plan far ahead.  The current cost for a private nursing home in San Jose where I live is about $137K a year in 2017 according to Genworth.

Stanley Parsley · Answer

ed jones has a group of people that do nothing but real estate

I have always used them

enjoy

Leslie Pappas · Answer

Hi @Henrik Lemos, a couple things.

1. If you're mother is an accredited investor, eventually wants to sell some of her properties and she wants to defer her capital gains tax she might consider reinvestment into DSTs (Delaware Statutory Trusts). They are hands-off, institutional grade real estate investments, and they allow the option to diversify. Investors can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting. Investors get potential cash flow, tax shelter and appreciation. Loans are non-recourse.

2. You and your mother might consider using an investment advisor to evaluate which offerings are suitable and promising. In regard to institutional real estate investments, the advice of an expert who works in the industry every day, knows all the players and their track records, and performs due diligence on each offering is a great benefit to you and comes to you at no cost.

Gordon Cuffe · Answer

You are correct in that a financial advisor can not help with property investments. You might want to go to the local rei meet ups to find investors that have sold properties at their peak to buy either apartment buildings or properties out of state. You might also talk to 1031 exchange companies to find out how to sell without paying capital gains taxes. Now that we are in out fifth year of steep increases in value she can probably sell and retire today assuming she did not do a bunch of cash out refinances.

How to find financial adviser for retiring prop. investor

Most Popular Reply