All Forum Posts by: Chad Duncan

@Sarath D. I would talk with other accountants, CPA’s, or EA’s who know of others that focus on real estate investors. As well, as Chris said, if you want a consultant that helps you strategize and get the tax documents created (profit and loss, balance sheet, etc.), then let them know that. If you just want someone to do your taxes, anyone can do that. As for a financial planner, that would be another person you can talk with that can do the consulting and refer you to a CPA as well.

@Scott S. That makes total sense to want someone who knows the answers to your questions.

As for real estate syndication, you are basing your investment in them on a few factors:

- management efficiency and cost: do they own the underlying property management company? If so, what do they charge? Is it reasonable?

- management fees: are they reasonable compared to others of similar size and investment type? How much of the cash flow is passed through to investors?

- syndication registration: are the an LLC based on membership? Are they a trust? Limited partnership?

- prior experience: what have they done so far? Has it gone according to plan?

- disparity between actual return vs pro forma return.

- syndication objectives: are they monthly cash flow oriented or large sums once in a while?

- what does your gut say about them?

These are just some of the things to consider. Hope this gets you started and questions you can ask whoever you choose as an advisor.

Did you happen to vet the FA prior to transferring? Having a CFP isn't an end-all-be-all type of certification, and I have seen both good and bad advisors with this credential.

@Scott S. I second Daniel on checking out XYPN. Daniel is a member and I hear good things about him, as well as Cynthia Meyer.

As well, in terms of syndication, are you looking to invest money into it, or are you an owner of a syndication looking for in-depth advice?

I am a financial planner and understand small business and real estate investment. You can message me if you would like to see what the process looks like. As well, be careful with CPAs, they are not all created equal. They should be well-versed in real estate, as most are not.

I think you are looking or a financial planner who is well-versed in real estate. Getting good advice requires time and conversations on where you’re at financially along with your future goals. You can message me as I am a financial planner that works with real estate investors. I can see if I can be a resource or get you into contact with one.

What are you looking to know that pertains to real estate syndication? What do you need help on that would require a financial planner?

Financial planning is the process of creating a solid plan getting you from where you are to where you want to go. An accountant is going to be incredibly valuable as you will be earning a solid salary and increasing tax complexity with real estate. I think a good start is to figure out why real estate, and what you want to achieve with it specifically.

A good financial planner is worth their weight in gold.

What I understand is that you can open a self-directed IRA (SDIRA), transfer funds from a Traditional IRA into it (called a direct rollover). Once it's transferred, you can then liquidate what's in the SDIRA to purchase an investment property. Going the SDIRA route means that you cannot take any distributions from the SDIRA without incurring penalties (unless your age is 59 and 1/2), and you fall under the contribution limits ($6,000 for 2021 unless you're over 50 which becomes $7,000). As long as you aren't going to need any of the rental income, you have a sizeable IRA balance, and you have an expert on your side, it might be worth looking into. I would recommend you talk with an advisor who does this regularly and understands it at an expert level, which I am not, at the moment.

Housing is not overpriced. This is near how real estate has performed for a long time. The years between 2010 to 2018 was a one time thing (hopefully), and as such created a huge opportunity for those that could seize it. That isn’t the norm anymore, and the rules of thumb that were built in this environment are outdated at best, and misleading at worst.

If you’re new to investing, stick to where you are as the chances of you making a bad deal out of state are really high. In most circumstances, places that are cheaper, also don’t appreciate as much. The chances of you knowing your market better than one in a different state is going to be a competitive advantage. Remember, you are competing with other investors for good deals, and why would you tie one hand behind your back and look at places you don’t even live in?