All Forum Posts by: Daniel Reyes

Hello BiggerPockets Family,

Whether you are a smaller (or larger) property management company, a self-managing multifamily developer, or a sponsor/syndicator - Property Accounting can oftentimes become a significant cost and consumer of otherwise revenue-generating time.

My question is, how do you feel and what do you think about outsourcing your property accounting? Would you consider doing this? Why or why not? Are you looking for a bookkeeping service (vendor) or a financial ops expert (advisor)?

Please share your thoughts; I have my own position on this but I’m interested in hearing everyone’s position.

Thank you for engaging with me!

Daniel Reyes

@Dustin Salmon

Hi Dustin,

Thank you for posting - I am sorry to hear this, how annoying.

Please message me directly, I have a solution for you.

Best regards,

Daniel Reyes

@Kanica Gooden

Hi Kanica,

Thank you for posting, congratulations on beginning your CRE journey!

We might consider many things with regard to establishing a line of communication with investors. I would recommend the following:

1) Research real estate operators in the Maryland and D.C. area. You might join an established asset management or real estate firm as an employee. This will help you build a professional reputation which tends to be more important in this industry than even the best property deals. If you have trouble finding some in your area, consider establishing contacts with community bankers, CPAs and real estate (or business, or title) attorneys. If they have an established time practicing in real estate, then they have friends in their network that you may be able to meet 😉.

2) Perform a JV (or individual) investment in a 5-unit property by yourself or with a partner. This way you have the experience in financing negotiations with Fannie Mae etc. With 4 units and below, the underwriting is done the same as a single family home. This would not be ideal, as you want to syndicate multifamily deals. Many people start with single family because it appears simpler, but it's not.

3) Because the real estate industry is relationship driven, it is critical you establish relationships. Of course this may take some time. The best relationships are mostly organic, and HNWI are usually discreet about their wealth. So build your network. There is no formula for this, of course. But focus on establishing relationships with people.

4) Lastly, remember to fish 🎣 not hunt 😉.

You will do well. The work is worth it, be patient with yourself. And please feel free to contact me if you have any more questions. I wish you the best.

Daniel Reyes

@Jay Ballman

Hi Jay,

Thank you for posting! There are other ways to connect with industry professionals in addition to the meetups. I have actually never been to one but I have many friends in real estate 😉. There are bankers, attorneys, CPAs and brokers all over Tampa with deep community ties and knowledge, so you’re in the right place. Consider perhaps the real estate investment council here in Tampa. You might also consider meeting with tax CPAs and title or 1031 exchange attorneys and community bankers.

I wish you the best!

Daniel Reyes

@Brady Gunn

Hello from Tampa, FL! Welcome to the BiggerPockets family. You live in one of the most active real estate markets in our country. 

@Derrell Grant

Hi Derrell,

Thanks for posting! There are various sources available as databases to retrieve market data from. Public census data, GIS software, and other real estate fee-based platforms. The trick is to learn to assimilate all of that data and turn it into information. Brokerages and property management companies are also able to provide this kind of information. You might find it useful to define your market of interest, and decide to use a real estate associate (or two, or three) or more advanced techniques to fit your overall plan.

Please feel free to reach out to me should you like more assistance.

I wish you well!

Daniel Reyes

@William J Stratton Jr.

Hi William,

Thanks for posting! It is worth mentioning - along with the Tax Cut and Jobs Act of 2017, there is an Opportunity Zone designation intended by the US government to incentive investment in lower income areas. As for the market, this will depend on your investment mandate. Although cap rates are more or less stabilized for 2019, there are still great deals in the market.

Please feel at liberty to connect with me if you would like to continue the conversation. I wish you the best!

Daniel Reyes

@Timothy VanWingerden

Hi Timothy,

Thanks for posting! Hopefully the answers provided were served to help encourage your thinking. I would like to add - there are variables here that are not necessarily known (tax structure/strategy, etc.). As for the IRS, there are a number of rules that, like statutory law, are open to interpretation and precedent, and they can be communicated with should something ever come up. Generally, you might consult with a tax accountant that specializes in real estate, if possible, in your area. The answers offered here may be useful, but again there are many variables to consider.

I wish you well!

Daniel Reyes

Hi Felisha,

These are ideal scenarios! Congratulations on the fruit of your labor.

I would prefer option C. In order of attractiveness - C, A, B.

It appears you have an opportunity to comfortably purchase another rental property. As a long-term hold, your real estate will not only produce the income it looks like you are requiring, but your capital will appreciate.

Congratulations again, I wish you all the best.

Daniel Reyes

Hi Latrina,

And welcome to BiggerPockets! You have joined a community of people who are as passionate about real estate as you are. Tampa, FL is also one of the nation's top markets for real estate, so you're in good company! Please feel at liberty to reach out to me for any questions. There are too many resources to list on this platform, but I would recommend reading the articles and some of the podcasts.

Take care, and all the best to you!

Daniel Reyes