CPA ... Sooner is Better

Qualifying for a loan is much harder than it was before the subprime crisis. That's not news.

When you seek a loan, whether from a conventional, hard money, or private lender, you should expect that the lender will be more careful than in recent years. Now, lenders are demanding more and better information as part of their increased level of due-diligence. When you have to provide your tax returns in support of your loan application, you will be better off when you are able to provide tax returns prepared by a CPA, and have a CPA who can provide other requested information.

What this means to you as an investor is that you have should have an accountant on your team. Successful investors have accountants who are experienced in real estate. When you start your real estate business you should pattern it after the business model of a successful investor. It just makes sense.

If there is any doubt in your mind, any temptation to wait, you should try to visualize how you how you will be perceived and your loan application will be evaluated by the loan committee. If you don't like what you see, then find the kind of CPA you need to prepare your tax returns. The sooner, the better.