All Forum Posts by: Jason Long

anyone have any property managers they have worked with in Huntsville, AL and had a good experience with? Any reccs are highly appreciated! Thank you!

0 Votes

Quote from @Bruce Woodruff:

I am more used to paying $1200 for an attorney to draw up an LLC or S Corp, and then about $600 for tax prep. So less than $2k total, and these were top notch people, not cheapos....

yeah that definitely sounds more like it @Bruce Woodruff, thanks for chiming in!

0 Votes

Denver, Colorado

Quote from @Dan Schwartz:

@Jason Long way too high, in my opinion.

Step zero is to have adequate insurance, including liability insurance for your property. Make sure, at a minimum, that you now have a landlord’s policy on your old house.

Step one for you is to keep your rental income and expenses separate from your personal bank accounts. Set up a business bank account and run everything through it.

Step two is to track it on in excel or on Google Sheets. Something super simple. You shouldn’t have many expenses and sounds like there’s only one income (rent) check at this point.

Step three is to download schedule E from the IRS site and familiarize yourself with how you reporting real estate. Dig into it best you can.

Step four is to take what you've done for a few months and now ask better questions about what you need. You'll likely find that you need none of what Tom Wheelwright is selling at this stage. Maybe you want an LLC. Maybe you want a bookkeeper. Maybe not. Do it for a bit and then decide. You'll be worlds ahead - in knowledge and in money in your pocket - than outsourcing this to a firm upfront.

Good luck!

super practical and helpful advice @Dan Schwartz thank you!

0 Votes

Denver, Colorado

Quote from @Greg O'Brien:

@Jason Long it could be its hard to say. However, its great that you are investing in your endeavors early!

I’d ask about ways to stay connected throughout the year as many of our early on investor clients have lots of tax/entity questions throughout the year they need assistance with. You’ll also want to understand the resouces to implement as implementation/maintenance is as important as the in depth strategy itsself.

Thanks @Greg O'Brien!

0 Votes

Denver, Colorado

Quote from @Sergey A. Petrov:

You don’t need any of that with one rental. If you really really really want to form LLCs and make it super complicated, pay an attorney a couple hundred bucks and a CPA another couple hundred bucks, then call your insurance broker and they’ll sell you a new insurance policy. Should be all done in under $1k, filing fees included

thanks for the advice @Sergey A. Petrov!

0 Votes

Denver, Colorado

Hi Everyone - Looking to crowdsource some info on what typical costs are for these types of services... some background info: I'm an aspiring investor and have recently moved into a new primary for my wife and I to live, while keeping our previous home and are in the process of turning that into a rental (our first rental property). Our plan is to add additional properties over time to build wealth, reduce our tax burden, and ultimately enable an early retirement. I listened to BP episode 569 with Tom Wheelright discussing tax strategies and after, I reached out to his firm, Wealthability, to get an understanding of their services and a quote. They will assign a team of tax experts to design an entity structure (for example, set up an S corporation in X state), they will deliver this blueprint to me, provide ongoing tax advice during the year, and do my taxes this year as part of their up front fee. The fee is $12,750 for this blueprint to be delivered and for tax prep this year, but then no recurring fee moving forward. I can pay them each year to do my taxes which would be separate. I would need to go out and actually implement the strategy which would incur additional costs. Their value prop is that they will deliver a multiple ROI in tax savings over time if these strategies are implemented, which I don't doubt, but it's a big up front cost that could be put to use elsewhere.

Question is: what's a reasonable fee to pay for something like this? Is this actually a good deal, way too high, somewhere in the middle?

Thank you!

1 Vote

Denver, Colorado

All Forum Posts by: Jason Long

Jason Long has started 2 posts and replied 7 times.

Post: Property mgr reccs in Huntsville

Post: Property mgr reccs in Huntsville

Post: What's a reasonable cost for tax / corporation structure advice?

Post: What's a reasonable cost for tax / corporation structure advice?

Post: What's a reasonable cost for tax / corporation structure advice?

Post: What's a reasonable cost for tax / corporation structure advice?

Post: What's a reasonable cost for tax / corporation structure advice?