Mildly Embarassing Question

[Eric Creager]

So I'm still researching and reading about REI (currently reading The ABCs of Real Estate Investing) and I realized I don't understand how hiring a lawyer or account works.

What exactly would I be asking them for and how would I be charged for their services? Can anyone give me an estimate for how much each costs per year?

Thanks for all the help!

[Jim K.]

@Eric Creager

Hey, Eric, what's up. Hiring a full-service accountant to help you with your real estate earnings is not so easy. I would go to your local real estate investing association and talk to people there about it. Rates will depend on your situation, and I suggest you talk to a few different people. With one or two uncomplicated rentals, though, you really shouldn't be paying a CPA more than $1000 to handle your local, state, and federal tax returns.

You find your lawyer the same way, by poaching an experienced investor's real estate lawyer. These people will routinely be making presentations at REIAs to drum up business. You don't have to pay a lawyer until you need them to do something for you, and then you negotiate rates with them. In any kind of significant legal dispute, the nice lawyer with the kind face, the low rates, and the gentlemanly manners is not the one you want. The first lawyer I hired writes children's books on the side. The second lawyer I hired told me exactly how stupid I was when I laid out the very foolish problem I was coming to him with. He then proceeded to make the problem go away.

We continue to work profitably together quite a few years later.